Nick Snow
Washington Correspondent
WASHINGTON, DC, Feb. 8 -- Senate energy leaders said they will introduce a bill to finally open Outer Continental Shelf Lease Sale 181 acreage in the eastern Gulf of Mexico to oil and gas development—with military and distance exemptions.
The bill would instruct Sec. of the Interior Gale A. Norton to develop a leasing program that would begin a year after the bill's passage, said Energy and Natural Resources Committee Chairman Pete V. Domenici (R-NM) and Chief Minority Member Jeff Bingaman (D-NM).
Two other committee members, James M. Talent (R-Mo.) and Byron L. Dorgan (D-ND), are cosponsors. "This bipartisan legislation aims to do something very important—increase our domestic supplies of energy. That's essential if we are to bring prices down, as both gasoline and natural gas prices continue to spike upwards," said Dorgan.
The bill would exclude any area within 100 miles of Florida's coast, including an area commonly known as "the Stovepipe," the senators said in a joint statement.
It also would place special conditions on areas east of the Military Mission Line. Leasing in that area would proceed only with the defense secretary's permission after reviewing proposed lease sale conditions to make sure the leases don't interfere with military activities.
The exemptions address concerns raised by Florida's senators, Democrat Bill Nelson and Republican Mel Martinez, who introduced a bill on Feb. 1 to permanently ban leasing in the Sale 181 area and allow limited exploration 260 miles from Tampa Bay.
Nearly 5 tcf
Domenici, Bingaman, Talent, and Dorgan said their bill would bring nearly 5 tcf of natural gas that the US Minerals Management Service estimates is in the area to market in the near future.
They said the American Gas Association estimates this would be enough gas to heat nearly 5 million homes for 15 years.
The bill does not alter moratoriums covering the OCS, according to Domenici. "This bill will not interfere with view-scapes from the coast, the environment, or the military activity in the area," he said. "Opening this area is our best opportunity to bring a lot of gas to market swiftly and make a real difference with supply and price."
Bingaman said directing the interior department to lease parts of the Sale 181 area would be an important near-term action to bolster US energy supplies.
"While I appreciate that there are environmental sensitivities associated with offshore drilling in the eastern Gulf of Mexico, I am confident that development in this area can be done in an environmentally sound manner and that lessees will be held to the highest environmental and safety standards," he added.
Talent called the proposal "a progrowth, projobs bill that will help energy consumers and increase our domestic supply of natural gas."
The bill drew applause from the Industrial Energy Consumers of America. "Congressional action of this nature is very timely," said IECA Pres. Paul N. Cicio, calling Sale 181 area gas "our greatest near-term supply option because it is very close to existing Gulf of Mexico exploration and production infrastructure."
Contact Nick Snow at [email protected].
