By OGJ editors
WASHINGTON, DC, July 29 -- Both houses of Congress have approved the omnibus energy bill reported July 26 by a House-Senate conference (OGJ Online, July 27, 2005).
The House approved the measure by a vote of 275-156 on July 28. The Senate approved it the next day by a vote of 74-26.
Measures sought by the oil and gas industry but excluded from the bill include approval of leasing of the Arctic National Wildlife Refuge coastal plain and protection against product-defect litigation for makers of the gasoline additive methyl tertiary butyl ether.
The bill does not ban MTBE, as had been proposed, and it repeals the requirement that oxygen be added to reformulated gasoline.
It requires that 7.5 billion gal/year of ethanol from grain or cellulose be added to gasoline by 2012.
Other provisions affecting the oil and gas industry include:
--Permission to move MTBE claims to federal courts.
--The ability of refiners to charge to expense 50% of the cost of refinery equipment through 2011.
--Consolidation within the Federal Energy Regulatory Commission of permitting authority for LNG terminals.
--An inventory of oil and gas resources on the Outer Continental Shelf.
--Royalty relief to keep oil and gas production on stream when commodity prices fall below low thresholds.
--Royalty incentives to encourage development of ultradeep offshore gas wells.
--Improved coordination of federal agencies that issue drilling permits.
--Tax measures that include extension of the enhanced oil recovery tax credit to onshore deep gas wells and an increase in the EOR tax credit for carbon dioxide projects.
