Nick Snow
Washington Correspondent
WASHINGTON, DC, Oct. 25 -- When the US House Resources Committee marks up budget reconciliation legislation this week, the section that would authorize oil and gas leasing on the Arctic National Wildlife Refuge's coastal plain will get most of the attention.
But another portion—Subtitle E: Ocean Energy Resources—also is significant because it tries to loosen the Outer Continental Shelf leasing moratorium log jam by giving coastal states more responsibility for (and revenues from) what happens off their shorelines.
"Negotiations have gone quite well. Agreements have been reached," a spokesman for the committee said.
Less formally called the Ocean State Options Act of 2005, the section still would have to survive a conference with Senate budget negotiators if it makes it past the Resources Committee and the full House. But it would not be subject to a possible Senate filibuster because it would be part of a budget bill.
The subtitle's key provisions include:
-- Authorizing the Secretary of the Interior to grant offshore leases limited to gas in a manner similar to oil and gas leases. Lessees also could produce associated crude oil if the adjacent coastal state's governor and legislature did not object. If the lease was within 50 miles of a neighboring state's coastline, that state's governor and legislature would have 180 days after being notified to object to oil production. The federal government would repurchase leases that could not be produced.
-- Increasing an adjacent coastal state's share of federal oil and gas receipts in water within 125 miles of its coast to 40% starting Jan. 1, 2006, in specific cases. Local and county governments on coasts would receive a portion of this share directly.
-- Giving states in areas presently under moratoriums or presidential withdrawal the right to petition the Interior secretary to make available selected OCS areas for leasing. Such areas would have to be at least 25 miles from a neighboring state's coast for gas leases and 50 miles for oil and gas leases. States submitting petitions could impose their own limits, such as restricting leases to areas at least 10 miles from shore.
-- Requiring the Interior secretary to approve a state's petition within 90 days if the secretary determines that it will not cause environmental damage. The secretary also would be authorized to amend the current 5-year federal OCS leasing program to include areas covered by any approved state petition.
-- Including in each 5-year OCS leasing program sales in each planning area that would cover at least 75% of the available unleased acreage. The Interior secretary would consult with coastal states and other federal departments about possible conflicts. If these couldn't be resolved, they would be elevated to the White House.
The subtitle also would establish a fund to monitor fish and other wildlife and their habitats in leased areas, terminate laws that prohibit spending of appropriated funds for leasing and preleasing activities, and repeal the provision of the 2005 energy act passed earlier this year that requires a comprehensive inventory of OCS oil and gas resources.
Oil and gas trade association representatives said they are still discussing the subtitle's provisions with their members. But they also indicated that they are encouraged that discussions about OCS leasing are again taking place in Congress.
Contact Nick Snow at [email protected].
