OCS LEASING MORATORIUMS LIKELY TO CONTINUE

Congress is likely to continue moratoriums against U.S. Outer Continental Shelf lease sales despite a new law that gives states more input in leasing decisions. Congressional staff members told the annual meeting of the National Ocean Industries Association in Washington, D.C., legislators will continue to block offshore leasing by denying funds to the Minerals Management Service for specific sales.

April 15, 1991

4 min read

Congress is likely to continue moratoriums against U.S. Outer Continental Shelf lease sales despite a new law that gives states more input in leasing decisions.

Congressional staff members told the annual meeting of the National Ocean Industries Association in Washington, D.C., legislators will continue to block offshore leasing by denying funds to the Minerals Management Service for specific sales.

Last year, Congress amended the Coastal Zone Management Act, requiring that federal offshore leasing decisions be consistent with state coastal zone management plans even though the leasing occurred outside the coastal zone.

One reason legislators have given for moratoriums is that they are seeking to block sales that conflict with state coastal management plans.

COMMITTEE VIEWS

George Pence of the House merchant marine committee told NOIA, "People who always have proposed moratoriums will still propose moratoriums. They just don't want the OCS in their neighborhood developed."

Pence said moratoriums should not be blamed on congressmen but on "the ignorance of the constituency."

He said, "They have the same view of leasing as they do of dumping of municipal waste into the ocean. You've got to go to the people, and I'm not sure how you go about it."

Joan Bondareff of the same committee and Michael Nussman of the Senate commerce committee agreed the legal changes made moratoriums unnecessary, and industry should press that point on Capitol Hill.

Dan Adamson of the House interior committee said moratoriums are an outgrowth of public reaction to former Interior Sec. James Watt's press for area-wide leasing. "Watt scared a lot of people, and that resulted in formation of a political coalition during the last decade that has shut you down."

Energy Sec. James Watkins pledged the Bush administration will be vigorous in its lobbying for removal of leasing moratoriums.

Interior Sec. Manual Lujan defended the administration's proposed 5 year leasing program.

He said, "The logic of our proposed 5 year plan is to put forth a scientifically based, environmentally responsible, politically realistic approach to offshore development.

"I believe you will find this program more productive than any possible alternative. "

Bondareff said Congress will take a close look at the plan.

She said buying back leases in some contested areas may not occur because it could cost $1 billion, "quite a burden on the federal treasury."

The congressional aides voiced doubts about the future of the Bush administration's offshore revenue sharing proposal.

Bondareff said, "I'm quite sure it's bogged down at the Office of Management and Budget." She said Congress would view it skeptically, "if 90% of the revenues go to Texas and Louisiana."

Adamson said revenue sharing will not be brought up quickly. "And I don't think it's going to change the opinions of the California delegation one whit."

Nussman expects Congress to reauthorize the Clean Water Act this year, which he said is noncontroversial except for wetlands. He said hearings will be held on the definition of wetlands and no net loss, resulting in changes in the existing bill's language.

NATIONAL ENERGY STRATEGY

Watkins again stressed the administration is willing to compromise on its National Energy Strategy proposal.

Watkins is concerned if Congress can't agree on key NES issues, such as drilling on the Arctic National Wildlife Refuge Coastal Plain and increased fuel efficiency standards for new cars, a comprehensive NES won't be passed.

He complained the NES is drawing criticism from congressmen "who don't want to be bothered by reading the strategy" but realize an integrated energy plan may threaten their special interests.

He said if the NES does not move this year, in the election year climate of 1992 "it's all going to become politicized out of the realm of achievement."

Nussman predicted, "We will see a bill passed, but it may be in the final days of Congress."

Adamson was more pessimistic: "We see no indication at all that the administration is really serious about enacting an NES."

Rep. Billy Tauzin (D-La.) told NOIA he will introduce a bill to guarantee producers $25/bbl for any oil they sell to the Strategic Petroleum Reserve. The program, which would allow expansion of the SPR to 2 billion bbl, would be financed by selling energy security bonds to the public.