New gulf leasing bill introduced in Senate

US Senate Energy and Natural Resources Committee Chairman Pete V. Domenici (R-NM) introduced revised legislation on July 20 to expand oil and gas leasing in the Gulf of Mexico.

July 21, 2006

2 min read

Nick Snow
Washington Correspondent

WASHINGTON, DC, July 21 -- US Senate Energy and Natural Resources Committee Chairman Pete V. Domenici (R-NM) introduced revised legislation on July 20 to expand oil and gas leasing in the Gulf of Mexico. Full Senate debate is expected within a week, he indicated.

The bill, S. 3711, retains a key provision of S. 2253, which cleared the committee on Mar. 8 (OGJ, Mar. 13, 2006, Newsletter). The provision would require the Secretary of the Interior to begin leasing within the so-called Sale 181 area and tracts in deeper water farther south within a year of enactment.

But the new bill also includes compromises reached following negotiations with senators from the five Gulf Coast states. These include an exclusion of acreage within the Sale 181 and adjacent deepwater areas east of a designated military mission line, a 16-year moratorium on leasing within 125 miles of Florida's coast, and 37.5% shares for Alabama, Mississippi, Louisiana, and Texas of future federal revenues from the Sale 181 and adjacent deepwater areas.

Majority Leader William H. Frist (R-Tenn.), Majority Whip Mitch McConnell (R-Ky.), and Sens. Thad Cochran (R-Miss.), John Cornyn (R-Tex.), Kay Bailey Hutchinson (R-Tex.), Mary L. Landrieu (D-La.), Trent Lott (R-Miss.), Mel Martinez (R-Fla.), Jeff Sessions (R-Ala.), Richard C. Shelby (R-Ala.), and David Vitter (R-La.) are cosponsors.

Florida's other senator, Democrat Bill Nelson, initially responded that he would have to study the compromises more closely when they were announced on July 12 but has said nothing further.

"My top priority this year has been OCS legislation that makes a real difference in our energy supply," Domenici said. "Every time the price of oil has climbed to a new high, I have intensified my efforts to do this bill."

Like S. 2253, S. 3711 is focused on the Gulf of Mexico, which supporters believe improves chances for passage. But floor debate probably will include demands from other coastal states' senators for leasing bans similar to what Florida would receive if the bill became law. If it passes the Senate, it also would go to conference to reconcile differences with HR 4761, which the House approved on June 29.

Contact Nick Snow at [email protected].