Omnibus energy legislation, which appeared to be destined for quick passage in the House of Representatives, became controversial again last week.
Thirteen industry associations, including the American Petroleum Institute, Independent Petroleum Association of America, Natural Gas Supply Association, and National Ocean Industries Association, joined forces to fight "killer" amendments to the House bill.
The House energy and commerce committee's bill has gone to the interior, merchant marine, and ways and means committees, which have jurisdiction over parts of it (OGJ, Mar. 23, p. 44).
OFFSHORE LEASING BAN
The energy industry associations are most concerned about amendments to ban leasing off much of the U.S. coast.
The interior committee panel in a markup this week will consider allowing leasing only in the central and western Gulf of Mexico and off Alaska, except for Bristol Bay, until 2002. Rep. Leon Panetta (D-Calif.) and 56 other House members have urged the interior committee to ban leasing off the East and West coasts and western Florida until 2000 unless studies find development can be environmentally acceptable.
If enacted, the ban would wreck the 5 year offshore leasing plan Minerals Management Service will send to Congress at the end of next month.
The merchant marine committee also consider a leasing ban and may require the government to buy back leases awarded in Bristol Bay and off North Carolina and Southwest Florida.
Rep. Walter Jones (D-N.C.), committee chairman, is anxious for the government to buy back tracts Mobil wants to drill off his state (OGJ, July 22, 1991, p. 21).
Rather than cash, Mobil would get credits against future offshore oil royalties. The General Accounting Office has estimated that could cost $600 million.
INDUSTRY STANCE
Nick Bush, NGSA president, said it is ironic such proposals are being offered in the name of environmental protection, while two thirds of offshore energy production is natural gas, the cleanest burning fossil fuel.
Charles DiBona, API president, said most of the energy associations want the energy bill to pass. "But we're not going to stand still for a bill that's counterproductive."
DiBona said API strongly objects to a provision in the bill requiring 1% of oil production and imports to be set aside for storage in the Strategic Petroleum Reserve.
The House ways and means committee will examine that and other revenue provisions in the bill at an Apr. 28 hearing
Several of the energy associations also plan to fight an amendment by Rep. Henry Waxman (D-Calif.) to restrict carbon dioxide emissions, believed to exacerbate global warming.
The bill passed by the Senate does not contain a massive offshore drilling ban, SPR setasides, or carbon dioxide limits.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
