Watching Government: Budget confab key to ANWAR

Dec. 5, 2005
As the 109th Congress comes back from its Thanksgiving break, it confronts a bigger than usual serving of leftovers, a handful of which involves oil and gas.

As the 109th Congress comes back from its Thanksgiving break, it confronts a bigger than usual serving of leftovers, a handful of which involves oil and gas.

Chief among these is authorization to issue federal oil and gas leases in the Arctic National Wildlife Refuge. Since the measure was tucked inside budget legislation, it eluded a Senate filibuster, only to fall victim to a rare display of strength by 26 moderate House Republicans.

The group, led by Rep. Charles F. Bass (R-NH), pledged on Nov. 10 to vote against the fiscal 2006 budget unless House leaders pulled ANWR leasing authorization and other provisions.

The maneuver worked, and the House passed its budget bill on Nov. 18, minus the ANWR provision, by two votes. But the matter now must be reconciled with the Senate’s budget package, which includes ANWR leasing authorization.

So the House-Senate budget conference will determine ANWR’s fate-but not for another week. While the House goes back into session on Dec. 6, the Senate isn’t due to return until Dec. 12.

‘Fast and furious’

Once it does, however, it plans to move quickly. Budget reconciliation conferees will be named almost immediately. “We’ll be working fast and furious to get it done before Christmas,” a Senate Budget Committee spokeswoman told OGJ.

Sen. Ted Stevens (R-Alas.) expects to be one of the conferees because he chairs the Commerce, Science, and Transportation Committee. In that capacity, he’s interested in potential revenues from the federal government’s sale of broadcast bandwidth, which could run into billions of dollars.

He’s also got his eye on ANWR leasing authorization. “Sen. Stevens sincerely hopes it will be put back into the budget,” his spokeswoman said. “He believes this is a promise the Senate made to Alaskans and Americans during the 1980s. It’s unfortunate the House has removed it.”

Ready to reconsider?

Meanwhile, House leaders could be having second thoughts. ANWR leasing proponents expressed their displeasure when the provision was pulled, and Majority Leader Roy Blunt (R-Mo.) reportedly is ready to have the budget conference consider putting it back in.

But the first move would have to come from the Senate, because that’s where the ANWR leasing provision currently survives. While Energy and Commerce Committee Chairman Pete V. Domenici (R-NM) and others from that side of the Capitol strongly support it, there also will be plenty of Senate voices raised in opposition.

ANWR leasing proponents can be expected to ask conferees to weigh projected bonus and royalty revenues against deeper cuts in federal programs for the needy, including Hurricane Katrina evacuees.

Their options won’t include the Senate’s repeal of the 24-month amortization of geological and geophysical expenditures for producers of 500,000 b/d or more of crude oil worldwide, an action directed at multinational oil companies. That matter will be considered by a different House-Senate conference.