Nick Snow
Washington Correspondent
WASHINGTON, DC, Mar. 9 -- The US Senate Energy and Natural Resources Committee approved a bill to begin oil and gas leasing in the eastern Gulf of Mexico's Sale 181 area.
The bill, S. 2253, would order Interior Sec. Gale A. Norton to begin the leasing process within 1 year of its enactment. It passed the committee by a 16-5 vote, with one member, Sen. Mary L. Landrieu (D-La.), voting "present."
The Outer Continental Shelf area was scheduled to be opened for drilling in 2001 before President George W. Bush removed it from consideration.
"This is the most important piece of legislation we have taken up since passing the energy bill last year," Chairman Pete V. Domenici (R-NM) said following the vote. The committee's chief minority member, Jeff Bingman (D-NM), and members James M. Talent (R-Mo.) and Byron L. Dorgan (D-ND) are cosponsors.
Dorgan said the bill could help reduce gas prices in North Dakota, which is one of the nation's heaviest users per capita. Increased domestic production also would reduce US dependence on foreign oil sources, he observed.
Floridians to fight
But Florida's senators pledged to fight the bill when it reaches the Senate floor. Their main objection was to a provision that would establish a 100-mile buffer between any leases and the state's coast.
"Florida needs and demands better protection. A 100-mile buffer is not enough," declared Republican Mel Martinez, who serves on the committee.
He said Floridians want permanent protection for the state's coastal areas, which S. 2253 does not address. Martinez and Florida's other senator, Democrat Bill Nelson, have introduced a bill that would open part of the Sale 181 region but push leasing at least a further 50 miles farther out to sea.
Nelson said that after the vote he told Senate Minority Leader Harry Reid (D-Nev.) he intends to filibuster the bill.
Nelson also said Interior Secretary Norton excluded Floridians from upcoming public hearings on what he said was a plan to open a further 2 million acres in the Gulf of Mexico for oil and gas leasing.
MMS proposals
The US Minerals Management Service has proposed redrawing state boundaries in the gulf as part of its draft 5-year OCS proposals for 2007-12. Nelson said this will effectively give Louisiana and Alabama, which he termed "oil-friendly," control over waters formerly under Florida's jurisdiction.
The plan includes a provision to issue oil and gas leases within the Sale 181 area. Like S. 2253, it would establish a 100-mile buffer from Florida's coast. It also would ban or place restrictions on leasing in offshore areas used by the Defense Department for military training.
Landrieu said she would try to amend S. 2253 to give coastal states a share of royalties generated in the sale area.
The bill's passage through the Senate committee drew praise from several trade associations. National Petrochemical and Refiners Association Pres. Bob Slaughter called it "a limited and sensible approach to offshore leasing that will increase domestic supplies of oil and gas for the benefit of all the nation's consumers."
American Chemistry Council Pres. Jack N. Gerard said, "Today's bipartisan action sends a signal to the market that 'help is on the way' in bringing supplies of natural gas to meet our nation's growing energy needs."
Contact Nick Snow at [email protected].
