The House Budget Reconciliation Bill: Provisions to expand offshore drilling into coastal areas under federal moratorium and banned areas of the Outer Continental Shelf off Florida’s Coast and Eastern Portions of the Gulf of Mexico (Baltimore, 2005). By Emily Chessin
Introduction • Richard Pombo, the chairman of The House • • Resources Committee formulated the provision of the offshore drilling initiative in the House Resources Committee’s Budget Reconciliation Bill. This initiative is part of a larger goal to open up the Arctic National Wildlife Refuge for oil drilling My paper focused on the specific effects the legislation would have on the State of Florida.
Current Federal Laws on offshore Drilling • States have jurisdiction • over any natural resources within 3 nautical miles of their coastline. Florida and Texas have jurisdiction over any natural resource within 9 nautical miles off the coast of the Gulf of Mexico. • Any submerged lands outside • • of the States jurisdiction are managed and controlled by the Federal government. Congressional moratoriums in effect through FY 2006 and Presidential offshore leasing prohibitions in effect until 2012. Prohibit offshore drilling for portions of the Outer Continental Shelf
The Proposed Initiative • Open areas of the Eastern Gulf of Mexico to oil and natural gas production • Reduce current buffer zone for offshore drilling to 125 miles • “Offshore States Option Acts” • States could extend moratoriums through 2012 by petitioning the Secretary of Interior
Incentives for states to ‘opt out’ of Federal Moratoriums • Receive a portion of the lease royalties energy companies pay to the Federal government. • States would receive up to 40%-50% of the revenue from leases • Roughly splitting $1. 6 billion dollars over 5 years with the Federal government.
Proposed Initiatives cont. • Permit natural gas drilling as close as 25 miles to the • • • coast and oil drilling as close as 50 miles to the coast of Florida. Moratoriums expire the Mineral Management Service could begin leasing these areas to oil and gas companies (Humphries, 2006). Opens up controversial Lease sale area 181. US defense secretary and Department of Interior secretary resolve issues between oil and natural gas drilling operations and military training operations
Foundational pieces of Legislation • Submerged Lands Act (SLA) 1953 • Outer Continental Shelf Lands Act (OCSLA) 1953 • Coastal Zone Management Act 1972 • Environmental Regulations – – NEPA 1969 CAA 1970 ESA 1973 CWA 1977
Proponents of the Budget Reconciliation Bill • The chairman of the House • • • Committee on Resources Richard Pombo Governor of Florida Jeb Bush Florida Republicans House Republicans Oil and natural gas industries Trade groups that represent energy intensive industries
Opposition to the Budget Reconciliation Bill • Several Florida Republican • • Representatives Florida senators, Mel Martinez, a Republican, and Bill Nelson, a democrat Attorney General Charlie Crist Environmental Organization Local Groups
Strategies • Including the provision in the • • Budget Reconciliation Bill Can not be filibustered Can be passed with a simple majority vote
Update and Conclusion • On November 9, 2005 House Republicans removed • • • the language from the budget reconciliation bill on both drilling in Alaska’s Arctic National Wildlife Refuge and expanding offshore drilling off of Florida’s coast. The Budget Reconciliation Bill is in conference between the House and Senate and a final bill has not yet been proposed Far from a sound piece of legislation Real intention: to open up as much of the Outer Continental Shelf as possible for oil and gas production. Does not consider the environmental or economic impacts that Florida and other states may suffer Makes it a state issue rather than a national issue
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