Res Comm consider bipartisan Pombo Deep Ocean Energy Resources (DOER) Act

[NVMojo]

Pombo, of course!! I'm so surprised!

Contact: Brian Kennedy [phone]

Resources Committee to consider bipartisan
Deep Ocean Energy Resources (DOER) Act
WASHINGTON - Chairman Richard W. Pombo (R-Calif.) announced today that a bipartisan compromise has been struck in the development of a comprehensive Outer-Continental Shelf (OCS) energy policy.

Titled the Deep Ocean Energy Resources (DOER) Act, the plan represents a balance between the bills authored by Reps. John Peterson (R-Pa) and Neil Abercrombie (D-Hawaii), and Reps. Bobby Jindal (R-La) and Charlie Melancon (D-La). The Resources Committee will convene a markup of the DOER Act on Wednesday.

"Roughly two dozen OCS-related energy bills have been introduced in this Congress," Chairman Pombo said. "The DOER Act is a hybrid of these bills, making it the most comprehensive, balanced and forward-thinking approach proposed to date. I look forward to a spirited debate on this bill in committee on Wednesday.

"The current one-size-fits-all federal framework locks away massive amounts of desperately-needed energy resources and will not withstand the pressures of economic necessities much longer," Pombo said. "It does not allow states that wish to produce off-shore energy for the nation the ability to do so, nor does it give states that wish to continue off-shore production bans any real assurance they will be able to so for the long term. The DOER Act is a commonsense compromise that rectifies this imbalance. It creates a flexible framework that balances the interests of different states by putting the states themselves in the driver's seat with unprecedented authority over their coastal resources.

"Energy is the lifeblood of our economy," Pombo continued. "Producing more American energy creates more American jobs, lowers prices for consumers, and strengthens our economy- goals all Members of Congress to fight to achieve together. That is exactly what Reps. Peterson, Abercrombie, Jindal, Melancon and other Members of the Resources Committee have been doing for the American people. Their leadership should be applauded, and embraced, by the Congress in short order."

DEEP OCEAN ENERGY RESOURCES (DOER) ACT HIGHLIGHTS:

I. State Authority

Ø The DOER Act codifies the executive moratorium into permanent law, for the first time ever, banning oil and gas leasing within 50 miles of the coastline. This does not expire, but allows states to opt-out with the express approval of the state legislature and agreement of the governor.

Ø States are given one year from the date of enactment of the DOER Act to decide whether to permit or deny natural gas leasing in the area between 50 miles and 100 miles of their coastlines. If a state does not act, natural gas - but not oil - leasing can occur.

Ø For oil leasing, the States have until June 30, 2009, to enact a prohibition on activities in the area between 50 miles and 100 miles from the coast.

Ø States are given the power to extend the prohibitions against either oil and gas leasing OR natural gas leasing, in up to 5 year increments, by simple votes of the legislature on extending the prohibition against oil and gas and/or natural gas leasing.

Ø The DOER Act prohibits all leasing within 25 miles of the coastline of a neighboring state that does not support leasing within its adjacent zone. It prohibits issuing an oil and gas lease within 50 miles of the coastline of a neighboring state that does not support leasing.

Ø The DOER Act repeals the OCS inventory provision of EPACT.

II. Revenue Sharing with the States and Investment in Federal Funds

Ø The DOER Act provides for a sharing of 75 percent of OCS revenues within the area between state waters and 12 miles offshore, and a sharing of 50 percent of OCS revenues with adjacent states and nearby producing states over time.

Ø It also creates (1) a new Federal Energy Natural Resources Enhancement Fund, (2) a new Federal Energy and Mineral Resources Professional Development Fund and (3) the National Geo Fund. Revenues from these funds will be spent for a number of purposes including education, transportation, reducing taxes, coastal, environmental and wildlife restoration, energy infrastructure and projects, state seismic monitoring programs, alternative energy development, energy efficiency and conservation, hurricane and natural disaster insurance programs, and others.

III. Royalties - Price Thresholds - Rectifying Clinton Administration Error

Ø Because the Clinton Administration failed to include price thresholds in OCS leases during 1998 and 1999, the federal government has lost billions in royalty revenue. The DOER Act rectifies this error by granting the Secretary of the Interior the authority to renegotiate these contracts with willing companies. For those 1998 and 1999 lease-holders unwilling to renegotiate, a new "Conservation of Resources" fee will be levied upon each unit of production of oil and gas. It further mandates the inclusion of price threshold in all future leases, so as to avoid this costly mistake from happening again.

The United States is the only developed country in the world that restricts access to its off-shore energy resources, a misguided policy for which American consumers have paid a price. According to the Minerals Management Service (MMS) of the U.S. Department of the Interior, the areas under moratoria likely contain between 94 and 164 Trillion cubic feet of natural gas and between 21.25 and 40.6 billion barrels of oil, enough resources to power our economy and lower consumer costs for decades to come.

Click here for the text of the Deep Ocean Energy Resources (DOER) Act.

http://resourcescommittee.house.gov/issues/emr/Pombo_HR4761_ANS_6_19_06.pdf
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[ThomCat]

1. This opt-out requirement

Is an open invitation to open up everyplace to drilling. States will need to fight individually to prohibit drilling. It would not be quick or easy for states to maintain their current protections.

[NVMojo]

2. Let's hope they are paying attention ...I can't stand Pombo ...a bought

and paid for corporate whore.