ANWR leasing measures advance in Congress

Sept. 25, 1995
Key congressional committees have approved spending bills that would permit oil and gas leasing on the Arctic National Wildlife Refuge (ANWR) Coastal Plain on Alaska's North Slope. The budget reconciliation bills will go to the budget committees in each house about Oct. 1, to the floor of each House for a vote in mid-October, a House-Senate conference committee in late October, then back to the floors in early November. Unlike normal legislation, the budget bills cannot be filibustered in

Key congressional committees have approved spending bills that would permit oil and gas leasing on the Arctic National Wildlife Refuge (ANWR) Coastal Plain on Alaska's North Slope.

The budget reconciliation bills will go to the budget committees in each house about Oct. 1, to the floor of each House for a vote in mid-October, a House-Senate conference committee in late October, then back to the floors in early November. Unlike normal legislation, the budget bills cannot be filibustered in the Senate.

Interior Sec. Bruce Babbitt said he will ask President Clinton to veto a budget reconciliation bill if it permits ANWR leasing.

The budget bills assume two ANWR lease sales during the next 7 years would garner $1.6 billion and $1 billion. Half would go to Alaska, leaving $1.3 billion for federal coffers. Leasing opponents offered only token resistance to the bills. That's because budget committees ordered the Senate energy and House resources committees to consider ANWR leasing to raise revenues and because proleasing Republicans control both panels.

The House resources committee voted 26-11 for leasing and Senate energy 13-7. The oil industry has long advocated exploration of ANWR, which holds 26 geologic structures believed to contain oil and lies east of the declining supergiant Prudhoe Bay oil field. Because of its oil potential, Congress specifically earmarked ANWR for leasing consideration (OGJ, Aug. 28, p. 33).

House and Senate measures contain provisions to protect ANWR's environment. They require the Interior Department to develop rules that protect wildlife and habitat and allow closure of portions of the Coastal Plain to exploratory drilling in the summer to protect caribou calving areas.

The bills could require oil operators to consolidate facilities such as airports, pipelines, and roads to avoid unnecessary duplication.

The House bill allows Interior to designate as much as 30,000 acres of the Coastal Plain for special protection. The Senate bill permits a 60,000 acre setaside.

The House bill reserves federal revenues in excess of $1.3 billion to create a $250 million endowment to fund endangered species and wetlands conservation programs. The Senate measure uses excess revenues to fund national park and wildlife refuge programs. Copyright 1995 Oil & Gas Journal. All Rights Reserved.