WATCHING WASHINGTON NES MARKUPS UNDER WAY

The Senate energy committee plunged into a briar patch last week, starting its markups of a National Energy Strategy bill.

It may produce legislation in 2-3 weeks, which could go to the Senate floor this summer.

But the House energy and power subcommittee will complete a series of hearings, due to run through June, before beginning to write a bill. It may not report out legislation until next year-if then.

SENATE ACTION

Sen. Malcolm Wallop (R-Wyo.), the top Republican on the Senate energy committee, told a Johns Hopkins University energy policy conference last week, "We are not going to have an energy policy without involvement of the president, personally."

And the same day, President Bush was writing Wallop "to reiterate my interest and support" as markups began.

Bush pledged Energy Sec. James Watkins and Chief of Staff John Sununu would work closely with the committee.

Sen. Bennett Johnston (D-La.), energy committee chairman, began markups with the least controversial sections: renewable energy, coal, research and development, and natural gas.

The more controversial issues-like requiring companies to give 9% of their petroleum imports to the Strategic Petroleum Reserve or Defense Department, nuclear issues, and leasing the Arctic National Wildlife Refuge Coastal Plain-will be deferred until the end.

Last week Sen. Tim Wirth (D-Colo.) warned "We (the committee members) are going to have a tremendous battle over drilling in ANWR." And Sen. Frank Murkowski (R-Alas.) replied to that challenge, saying "if we cut out ANWR, we cut out the heart of the energy package."

Johnston said after the main bill is completed, the committee will consider a new, separate package of energy tax change recommendations. They could be offered as an amendment to the main bill on the Senate floor or referred to the finance committee, which has jurisdiction over tax measures.

Rep. Phil Sharp (D-Ind.), chairman of the House energy and power subcommittee, told the Johns Hopkins session energy tax changes are a necessary component of an NES, even though the administration's bill omits them.

He said the House should consider a modest gasoline price increase and an oil price floor of $18-20/bbl.

NICKLES-BOREN BILL

Meanwhile, Sens. Don Nickles (R-Okla.) and David Boren (D Okla.) jointly introduced a bill they will push in the energy and finance committees, respectively.

Their proposal would take a number of steps to promote production, transportation, and use of natural gas.

It also would establish a $25/bbl floor price for oil through a variable oil import fee.

And it outlines a series of tax incentives to promote drilling, maintain production from stripper wells, and encourage enhanced oil recovery.

Copyright 1991 Oil & Gas Journal. All Rights Reserved.