WATCHING WASHINGTON SETBACKS ON OIL AND GAS

With Patrick Crow Frustration stalked Washington oil and gas issues last week. The retiring Minerals Management Service director, Barry Williamson, reacted bitterly when the House of Representatives continued moratoriums against offshore lease sales. The House passed the appropriations committee's fiscal 1992 Interior Department spending bill that denied funds for prelease planning. That effectively blocked lease sales for the Bristol Bay off Alaska, Sales 137 and 151 in the eastern Gulf of

July 1, 1991

3 min read

Frustration stalked Washington oil and gas issues last week.

The retiring Minerals Management Service director, Barry Williamson, reacted bitterly when the House of Representatives continued moratoriums against offshore lease sales.

The House passed the appropriations committee's fiscal 1992 Interior Department spending bill that denied funds for prelease planning.

That effectively blocked lease sales for the Bristol Bay off Alaska, Sales 137 and 151 in the eastern Gulf of Mexico, and Sale 145 off the mid-Atlantic.

The bill codifies President Bush's decision a year ago not to hold eight contested lease sales off California, Washington, Oregon, South Florida, and the North Atlantic Coast (OGJ, July 2, 1990, p. 26).

WILLIAMSON'S COMPLAINT

Williamson, who is resigning to consider running for the Texas Railroad Commission, complained that congressmen are dodging their responsibility to provide responsible leadership on offshore leasing issues.

He said MMS, under his guidance, has shifted its approach to offshore leasing, becoming more flexible and seeking more rapprochement with the states. He said the proposed 5 year leasing plan (OGJ, Mar. 4, p. 16) was "tailored to meet the separate needs of each of the regions we do business in."

The moratoriums began a decade ago in response to area-wide leasing, but Williamson said, "The James Watt issue is dead. That no longer is a valid excuse. There no longer is a need for moratoriums under this 5 year plan."

But he said congressional leaders "have failed to meet us half way. They've continually failed to muster the leadership to put this plan on the table."

Williamson also disclosed MMS soon will propose a new approach for its offshore inspection and safety program. Rather than dictate standards, MMS wants to allow oil companies to prescribe their own safety programs under general MMS guidelines.

Also last week, Senate energy committee Chairman Bennett Johnston (D-La.) obviously was frustrated when he told reporters the full Senate won't consider omnibus energy legislation until September at the earliest.

Johnston had wanted the energy strategy bill to come up in July (OGJ, June 17, p. 15), but Senate Majority Leader George Mitchell (D-Me.) has other priorities and says the energy bill must wait until later this year.

FUEL STANDARDS, ANWR

Complicating the scheduling is the fact the bill will ignite filibusters over tougher auto fuel economy standards and Arctic National Wildlife Refuge Coastal Plain exploration. Interestingly, Mitchell opposes the committee bill on both points. He favors tougher auto fuel economy rules in a bill by Sen. Richard Bryan (D-Nev.) and opposes ANWR drilling.

A few senators who plan to fight the bill on the floor launched attacks on it last week in press conferences and in floor speeches.

Johnston denied rumors the legislation is in trouble but admitted when the bill finally goes go to the floor, "It's going to be a first class political fight."