More than 80 members of the Congressional Oil and Gas Forum have urged President Clinton to reduce the regulatory burden on domestic producers.
In a July 26 letter, the caucus members told Clinton, "The industry is subject to some 120 federal safety and environmental regulations that often overlap and in many cases do not produce tangible benefits and just do not make sense.
"We encourage you to moderate the debate on the environment. No one is advocating that environmental protection efforts be dismantled. Instead, we need to reach a bipartisan middle ground that reflects common sense environmental regulation."
Rep. Bill Brewster (R-Okla.), the forum's liaison with the industry, said, "The high rate of regulation by different federal agencies is steadily putting small operators out of business. The resulting loss of jobs and tax revenue is costing our society much more than any benefits these regulations might produce."
In their letter, the congressmen said Clinton first should order the Environmental Protection Agency to review all its rules regarding oil and gas exploration, production, and refining and remove those that are outdated, duplicative, or have no cost benefit.
Regulatory steps needed
They also proposed these regulatory actions the administration could take to help the industry:
- EPA should not expand its Toxic Release Inventory "right to know" reporting program to the exploration and production sector. The congressmen said that could cost producers more than $100 million/year with no benefit, since most E&P activities are far from population centers.
- EPA should retain its existing ambient air quality standard for particulate matter. EPA is proposing a revised standard that would expand the number of nonattainment areas "without evidence that there would be any health benefit."
- The National Oceanic and Atmospheric Administration should revise its framework for conducting natural resource damage assessments in the case of oil spills. The congressmen said the rule could result in inflated costs.
- EPA should drop its insistence that emissions cuts achieved by state and local rules be ignored in federal calculations of a source's potential to emit.
- EPA should abandon the second phase of its rulemaking requiring refineries to use maximum achievable control technology unless it can demonstrate the added expense is justified by significant public health risks.
- EPA should clarify its rules to facilitate use of new synthetic drilling fluid technologies, which the Energy Department estimates could save the industry $50 million/year.
- Several Transportation Department agencies should eliminate overlapping alcohol and drug testing regulations and reporting requirements. The congressmen said, "Many companies who previously tested all employees now test only the required employees due to the added burden of administering the mandated program."
Reelection timing
In recent months, the Clinton administration has shown it will not be reluctant to pull strings at federal agencies to enhance the President's reelection prospects.
And you can bet the oil and gas state congressmen know this was the best possible time to hand Clinton their "wish list."
But that's no guarantee of action. The Clinton team has often frustrated the industry during the past 3 years.
Copyright 1996 Oil & Gas Journal. All Rights Reserved.
