ANWR leasing advances in House, Senate

Oct. 27, 2005
Both sides of the 109th Congress have moved closer to authorizing federal oil and natural gas leasing in the Arctic National Wildlife Refuge as part of the budget reconciliation package on Oct. 26.

Nick Snow
Washington Correspondent

WASHINGTON, DC, Oct. 27 -- Both sides of the 109th Congress have moved closer to authorizing federal oil and natural gas leasing in the Arctic National Wildlife Refuge as part of the budget reconciliation package on Oct. 26.

House and Senate Republicans portrayed ANWR leasing as an important new revenue source to reduce the federal budget deficit as well as a major domestic energy source. Democrats generally reiterated a view that it would harm an environmental treasure while producing few energy and economic benefits.

The Senate Budget Committee approved a budget bill by a 12-10 vote that included ANWR leasing authorization language previously passed by the Energy and Natural Resources Committee.

In the House, the Resources Committee passed a budget package by a 24-16 vote that included a provision to increase coastal states' influence on energy activity in adjacent federal waters as well as ANWR leasing authorization.

Sen. Pete V. Domenici (R-NM), the Energy and Natural Resources Committee chairman, said that the ANWR provision in the current budget bill "will bring more than 10 billion bbl of oil to the Lower 48 states in the next several years."

The ANWR provision in the Senate bill projects $2.5 billion of federal bonus bid receipts during 2006-10 from oil and gas leasing of 2,000 acres of the wildlife refuge's coastal plain.

Federal oil and gas royalties from production in the area could exceed more than $1 billion/year once production begins, the Energy and Natural Resources Committee said in a statement.

House Resources Committee Chairman Richard W. Pombo (R-Calif.) said the bill approved there would raise $2.4 billion from ANWR leasing authorization and more than $800 million over 5 years from the OCS-related provision.

The measure also includes a provision that develops a revenue-sharing program with local governments and a leasing program to attract investment in oil shale projects, he added.

"Americans want Congress to cut the deficit. They also want more domestic energy production to help lower home heating bills and prices at the pump. This package is going to give them both," Pombo said.

Contact Nick Snow at [email protected].