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Energy:
Reliable and Affordable Natural Gas Energy Reform Act of 2006
Our Position: oppose
Bill Number: S2290
Sponsor: Mark Pryor (D-AR)
Legislative Session: 2006
Senators Pryor (D-AR) and Warner (R-VA) introduced The Reliable and Affordable Natural Gas Reform Act which will open vast new lease areas in the Gulf of Mexico within Lease Sale 181 and end all presidential deferrals in the Outer Continental Shelf. The proposal will allow state governors to petition the Interior Department for waivers of current coastal leasing bans for natural gas development. These natural gas leases would also allow oil production if the state agrees to it. Finally, the legislation will coerce coastal states to accept more offshore drilling and drilling closer to shore with fiscal incentives.
Status
2/15/06: Referred to Senate committee
Action Needed
Find out more about protecting our coasts and learn how to get involved.
Contact
Melinda Pierce Senior Washington Representative, OCS and Arctic Issues melinda.pierce@sierraclub.org 202-547-1141
Background
The OCS Moratorium:
In 1981, Congress protected America’s coasts, beaches, and marine ecosystems from the threats of oil and gas development when they adopted the Outer Continental Shelf (OCS) Moratorium. The moratorium prevents the leasing of coastal waters for the purpose of fossil fuel development. Every year since then Congress has renewed the moratorium on new oil and gas development off the Atlantic and Pacific coasts as well as Bristol Bay Alaska. In 1990, President George H.W. Bush authored an additional level of protection, and in 1998 Bill Clinton extended these protections and set them to expire 2012. Now these protections are in danger of being weakened or overturned.
Pro-drilling forces, with the help of powerful Congressional allies, are aggressively pushing bills that would undermine the moratoria that protect our coasts. In 2005, drilling advocates were very successful in moving forward the debate to open our coasts to oil and gas drilling although they ultimately failed to change the policy. These forces have vowed to renew their efforts, and we are already seeing their Congressional and administrative attacks.
THREATS TO AMERICA’S COASTS IN 2006:
On February 15th, 2006: The Minerals Management Service (MMS) released its 5-year Outer Continental Shelf (OCS) planning document that details future leasing and development in areas of the Gulf as well as Alaska and the mid-Atlantic coast. The plan moves to aggressively lease vast new areas in 21 proposed lease sales. In addition, the plan assumes that areas off the Virginia coast would be available for development in the year 2011. They are anticipating that the Virginia state legislature would move to opt out of the current federal moratoria and that the President would nullify the present deferral which extends until 2012. Similarly, the document contemplates lifting the current presidential deferrals protecting Bristol Bay in Alaska. The MMS held public hearings on the proposal -- nine hearings in Alaska and one apiece in Alabama, Florida, Louisiana, Virginia and Texas.
February 2006: Senator Pete Domenici (R-NM) and others introduced their damaging plan for the development of the central and eastern Gulf of Mexico. The bill would open up nearly 3.6 million acres to oil and gas development. As chair of the Senate Energy Committee, he is expected to move that bill quickly to the floor for full Senate consideration in May or June. The bill is also rumored to be part of the Republican response to high gas prices, and they have indicated they plan to move energy legislation in early June.
February 16th, 2006: Senators Pryor (D-AR) and Warner (R-VA) introduced The Reliable and Affordable Natural Gas Reform Act which will open vast new lease areas in the Gulf of Mexico within Lease Sale 181 and end all presidential deferrals in the OCS. The proposal will allow state governors to petition the Interior Department for waivers of current coastal leasing bans for natural gas development. These natural gas leases would also allow oil production if the state agrees to it. Finally, the legislation will coerce coastal states to accept more offshore drilling and drilling closer to shore with fiscal incentives.
Spring 2006: Rep. Peterson (R-PA) introduced the Outer Continental Shelf Natural Gas Relief Act which would immediately repeal the Congressional OCS moratoria that protect the Atlantic and Pacific coasts and allow “natural gas only” leasing offshore. It would also revoke former President George H.W. Bush’s and Bill Clinton’s Executive OCS Leasing Withdrawals (otherwise currently scheduled to last until 2012). A Governor could object to any lease sales proposed within 20 miles of their shoreline but the bill also includes fiscal incentives in the form of revenue sharing to coerce states into accept drilling off their coasts.
May 18th, 2006: As part of the Fiscal Year 2007 Interior, Environment and Related Agencies Appropriations bill Representatives Putnam, Capps, Foley, Davis, Bill Young and Pallone introduced an amendment that would restore the offshore drilling moratorium. The amendment won 217-203, keeping the coasts clear of drilling rigs for now. During committee consideration of the Interior Approps bill, Congressman Peterson was successful in passing an amendment to lift the moratorium on off-shore natural gas drilling.
April 7th, 2006: Virginia Governor Kaine rejected energy legislation, introduced by State Senator Frank Wagner (R-Virginia Beach), that promoted opening up Virginia’s long-protected coasts to offshore drilling and authorizes Congress to lift the moratorium on new offshore drilling. However, Governor Kaine inserted language into the bill that says Virginia supports a federal survey to be paid for with federal dollars of offshore waters more than 50 miles from the coast to determine potential natural gas deposits.
Next Steps for Protecting our Coasts:
The Sierra Club strongly supports permanent protection for our beaches and coastal waters. In Congress, the offshore moratorium has enjoyed strong bipartisan support throughout its 25-year existence. The push to drill off America's coasts has met with failure in virtually every case because overwhelming numbers of citizens, business interests, and legislators have been firm in their resolve to protect our fragile coasts and coastal economies. But drillers keep banging on the door, and the oil and gas industry and their allies at all levels of government have America's coasts square in their sights. Instead of drilling off our coasts, America needs real energy solutions, increased fuel efficiency, renewable resources like solar power, and polices that will help ensure our children are free from air and water pollution and our coastal economies are protected.
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