The US House of Represenatives, on a 252-172 vote late July 17, approved a measure that seeks to prohibit new drilling activity on 36 undeveloped federal oil and gas leases off the California coast.
"This is a 1-year insurance policy for the Central (California) Coast," said Rep. Lois Capps (D-Calif.), a sponsor of the measure, in a written statement following the vote. "And it will spur long-overdue negotiations between the administration, the state, and oil companies on terminating the 36 leases. This tactic was effective in getting rid of oil drilling in and around Florida, and we expect the same results in California."
The undeveloped leases are off Santa Barbara, San Luis Obispo and Ventura counties.
The provision was added as an amendment to the fiscal 2003 Department of the Interior appropriations bill (HR 5093).
The amendment prohibits Interior from spending any funds to permit new drilling off California's Central Coast.
Sponsors' comments
Capps was joined by Rep. Nick J. Rahall II (D-W.Va.), the ranking Democrat on the House Resources Committee, and Rep. George Miller (D-Calif.), a senior member of the committee, in offering the amendment.
"We are hopeful this vote will bring about a fair resolution of this long-standing controversy," Rahall told OGJ. He predicted earlier in the week the measure would easily pass.
Congressional staff at that time concurred with Rahall's statement. They pointed to past strong bipartisan support for other offshore drilling restrictions. The Senate is expected to respond similarly before the final bill is presented to the White House, likely later this summer.
The amendment prohibits Interior from spending part of its budget to allow drilling on any of the leases.
Interior discussions
Interior officials have been negotiating with companies over the leases, but no final decisions have been reached.
Lawmakers who oppose the amendment argue that any lease buy-backs should be left to the administration to iron out; congressional action could further complicate the issue.
Amendment sponsors said their proposal is in response to President George W. Bush's decision to buy back most federal leases off Florida (OGJ Online, May 29, 2002).
Various administrative and congressional moratoriums block DOI's Minerals Management Service from issuing new leases on the Outer Continental Shelf, with the exception of the western and central Gulf of Mexico and parts of Alaska.
But the 36 existing, nonproducing leases in California are not covered by those prohibitions, because they were issued between 1968 and 1984, well before the prohibitions were put in place. Most of the companies involved with the litigated leases have indicated they would accept a buy-back to resolve the issue. However, there is wide disagreement on whether a lease swap would be acceptable.
Senators from Louisiana and California last February introduced legislation to close the decades-old, billion-dollar dispute between industry and California over the offshore oil leases. The California Coastal Protection and Louisiana Energy Enhancement Act also directs the secretary of the interior to provide oil companies holding California leases with a swap of equivalent value in the Gulf of Mexico within 30 days of the bill's passage (OGJ Online, Feb. 18, 2002). The White House and oil companies without a large stake in California opposed the plan, arguing it could encourage limitations on other oil-rich public lands and waters.
Other spending provisions
Also included in the House bill is the annual funding for the Department of Energy's fossil energy program.
For the new fiscal year starting this Oct. 1, the House bill earmarks $87 million for government-funded oil and gas research; the Senate bill proposes $85 million.
The White House asked for $85 million, $8 million more than Congress gave the department in last year's spending bill.
