H.R. 3409 - Virginia (and America) Needs This Legislation

House to Vote on Measure to Halt Overregulation of Coal

 

By: Ross Eisenberg under Energy on September 18, 2012 @ 4:36 pm

[One week ago]Alpha Natural Resources, one of the world’s leading producers of coal, announced plans to idle eight mines and lay off 1,200 workers in Virginia, West Virginia and Pennsylvania....  It’s another unfortunate chapter in what has been a very difficult few years for the American coal industry.

It is against this grim backdrop that the House of Representatives will take up H.R. 3409, the “Stop the War on Coal Act.” The bill was scheduled for Rules Committee debate [last] Wednesday and the House floor shortly thereafter. H.R. 3409 takes aim at several federal regulations that, if allowed to go forward, would effectively kick the coal industry while it’s down. Regulations like EPA’s recently-proposed greenhouse gas New Source Performance Standards, which effectively ban the construction of new conventional coal-fired power plants. Or the “Utility MACT” regulation, a $10 billion annual hit to the economy that costs 40 percent more than all of EPA’s power plant-sector air regulations combined.

Coal is one of the nation’s most abundant energy resources and a vital part of our efforts to meet our energy and transportation needs. Coal generates a significant percentage of our nation’s electricity, and maintaining coal in a diverse national energy portfolio is in the national economic interest. The NAM strongly supports H.R. 3409, which would protect a reliable, affordable and available part of our nation’s energy mix from overregulation.

They're Just Charts, People

The Tax Plan we all want.

 

People gotta eat right?

 

Job Gains & Losses

 

 Welfare Spending or

Just give them money and they'll shut up.

 

I'm sure Nancy, Princess of Pineapples could explain this.

Right Your Highness?

We won't deny that Obama has set several records in the past 4 years:

US Unemployment rates

 And in case you're wondering why gas is at 3.75 a gallon:

Top Fed Official: 'It's Going To Take Several Years' Before Jobs Return

Top Fed Official: 'It's Going To Take Several Years' Before Jobs Return

Lets keep thinking them happy thoughts.
Better still, let's make that statement false by December.

"Presently, a record 87,897,000 Americans are not in the labor force."

That condition can be easily corrected in less than 6 weeks.
Open the wells, grab the rigs and start punching holes where the oil is.
Start laying pipe and re-opening and upfitting refineries.
Get the tankers fired up and tell the shiiteheads in the ME to go pound sand, the price of a barrel of oil is now the same as a bushel of corn or wheat.

Stupid, Sadistic and Dangerous

Gas Prices: Obama's Misery Index

What we have to remember is that the gas prices we are currently paying are the prices Obama has given us via his refusal to expand oil production—period. These gas prices are Obama’s misery index, and as they rise from an average of $3.90 a gallon to an average of $4.25 (and higher), economic misery will rise with them.

The Obama’s can take vacation after vacation without worrying about the cost because they charge the American people for it. But the American people don’t get to return the favor. Instead, we have cut back on eating out, on shopping, and on myriad other things we enjoy, just so we can pay Obama’s exorbitant gas prices. Hope and change isn’t working out so good.

HANSON: Drilling is a win, win choice for U.S. - Washington Times

HANSON: Drilling is a win, win choice for U.S. - Washington Times

When the summer driving season starts soon, and tension heats up about Iran, gas may reach $5 a gallon. Nothing bothers voters more than paying an extra $20 or $30 every time they fill up. In times like these, they soon might prefer even an oilman in the White House to an ideologue whose opposition to new oil development seems more religious than empirically based.

All presidents, of course, usually get the blame when the price of gas skyrockets and praise when it plummets, just like they own a bad or good economy, or a successful or failed war.

Presidents can affect gas prices, at least in the long term, by exercising budgetary discipline resulting in a currency that buys more oil per dollar, by approving or rejecting federal oil leases, and by adding or curbing regulations that affect oil exploration and development. In all of these cases, Mr. Obama has supported policies that contribute to higher gas prices.

Stuff You May Have Missed

Because the VLWM won't report it. Doesn't suit their agenda of disinformation and outright lies.

The Old Democrat Party: FDR Expanded US Domestic Oil Production

The "Drill, baby, drill!" mantra of the 2008 Republican National Convention was cynically answered by Barack Obama supporters at the Democratic Convention with: “You can't drill your way out of the problem.”

To address what President Obama called the worst worldwide crisis in living memory, the President promised hundreds of thousands of new green jobs if America abandoned its reliance on oil and gas, which he contemptuously refers to as the “fuel of the past”.

During President Obama’s term in office he will have escalated the federal debt by $6.4 trillion, 31.6 times the $202.6 billion debt the Franklin Roosevelt Administration issued to deal with the greatest worldwide crisis of all time, defeating Nazi Germany and Imperial Japan. But unlike Obama, FDR achieved victory by expanding domestic oil and gas production and delivery.

In spite of the Obama Administration, a rag tag assortment of small “wildcat” oil and gas entrepreneurs have proven that America has over 100 years’ supply of natural gas and over 50 years’ supply of oil. With Obama’s green initiatives in tatters, his new strategy seems to be taking credit for drill, baby, drill achievements, but remains fearful of the political consequences to build the pipelines to pump, baby, pump all that oil and gas to markets.

With war looming, FDR appointed Harold Ickes, former Secretary of the Interior, to select 72 leaders of America's oil industry to serve on the Petroleum Industry War Council. Ickes would later describe in his book, Fightin Oil: “as one of the great coincidences of history”, the first meeting of the PIWC was scheduled for Monday December 8, 1941, the day after the Japanese attack on Pearl Harbor. Within weeks, the PIWC had mobilized America’s 1,500 oil companies, great and small, to work amicably with the government to win the war. With full involvement of the oil industry, America began massive drilling and quickly developed the technical capabilities to refine huge quantities of gasoline, including the 100-octane grade needed for aircraft.

To get energy supplies from Texas to the East Coast refiners to fuel Atlantic supply convoys, the industry in one year built the two largest diameter pipelines in the history of the world, the Big Inch and the Little Big Inch. During the war, U.S. oil companies delivered 6 billion out of a total of 7 billion barrels of oil consumed by the Allies. The Army-Navy Joint Chiefs of Staff wrote a letter to the PIWC in 1945 stating that “at no time did the Services lack for oil in the proper quantities, in the proper kinds and at the proper places.” Field-Marshall Von Rundstedt, commander of Germany’s Western Front, attributed Germany’s defeat to three factors involving oil: (1) Allied bombing (2) Allied naval bombardments; and (3) Germany's gasoline deficiency.

For three years the Obama Administration energy policy focused on pouring $60 billion into alternative energy; while limiting U.S. drilling off the Atlantic Coast, Florida Gulf Coast, Gulf of Mexico, Arctic National Wildlife Refuge and federal lands in the Rockies. Due to these policies, the average price per gallon of gas just hit an all-time-high for this time of year at $3.84 a gallon.

I may be waxing nostalgic, but in 1972, I was paying $0.36 a gallon for high test gasoline for my '66 Mustang. My grandaddy used to bitch about the price because he paid $0.25 a gallon for his '54 Chevrolet Sedan Delivery. In 20 years, the price of a gallon of gasoline at the pump only increased $0.11.

In 20 days, the price of a gallon of gasoline at the pump has increased twice that.

Yes Its Gambling Yes The President Can Effect Price Changes

Gas Prices and the President's Ability To Effect Change Explained

It should be apparent to anyone who has the ability to dress themselves without assistance.

Attendees Handpicked From Campiagn HQ

Obama: We Don‘t Have Enough Pipeline to Transport All the Oil We’re Producing

Refineries are shutting down because there isn't enough crude being produced to justify keeping them open.

Before a crowd in Cushing, OK, President Obama highlighted (lied about) his energy policy and touted his administration’s “approval” for a section of the Keystone XL pipeline that will connect oil fields in that state with refineries in the Gulf of Mexico, CSPAN reports.

The word “approval” is in quotation marks because, as critics point out, the president plays no role in the construction of the new pipeline. It doesn’t matter if he “approves” or not. Let us explain.

“President Obama claiming credit for speeding up the Keystone pipeline is like Al Gore saying he invented the Internet,” said Rep. John Sullivan (R-OK). “It is claiming credit where credit isn’t due.”

Sullivan explains the president only has the authority to block lines that run internationally. Therefore, because it doesn’t cross international borders, the so-called Cushing pipeline doesn’t require the president’s approval. In fact, as Sullivan notes, President Obama personally lobbied Congress to vote against the pipeline.

Now he’s taking credit?

I can't even begin to explain how this staged performance/campaign event mirrors the tactics used for centuries by despots and dictators. They think that if you keep saying something long enough, everyone will believe it. A truly humble and respectful individual would be embarassed to even appear in public after telling the lies that were told in this single appearence.

Petroleum producers plan presidential protest

Petroleum producers plan presidential protest

CUSHING, Okla. -- The President is scheduled to speak in Payne County this Thursday morning. It may be rural Oklahoma, but when it comes to pipelines, it's the Capitol. The President is expected to talk about energy, though many in that industry are not impressed. They are even planning to protest his visit, calling it a political ploy more than a genuine interest.
Mike Cantrell with the Domestic Energy Producers Alliance says, "For the last three years he's been anti-fossil fuels."Mickey Thompson, an energy industry expert and political analyst, says, "He calls our industry an industry of the past and they'd like us to go away."
The President is expected to mention his support for a pipeline running from Payne County to the gulf; it's the southern end of the “Keystone XL Pipeline.”
Industry experts say while his support for the southern end is welcome, it's not needed.

Oklahoma Shout-Out
A presidential stunt to make the uniformed think he gives a furry rat's butt about the price of gas at the pump. Hope those pipeline workers have their stuff wired tight for the protest. Secret Service will be all over the place.

News Flash!!!! Obama's BLM Salazar Lied

Salazar Lied About Oil Production on Federal Lands

Yesterday I pointed out that the production of fossil fuels on federal lands is down from fiscal 2010 to fiscal 2011 (October 1, 2009, to September 30, 2010 compared to October 1, 2010, to September 30, 2011).This is significant because the administration is… well, lying. Not long ago, Interior Secretary Ken Salazar said, “

The fact of the matter is we are producing more from public lands – both oil and gas, both onshore as well as offshore, than any time in recent memory.”

Not only is Salazar wrong, he’s wrong for every type of fossil fuel produced on federal lands.

Crude oil production? Down from 739 million barrels to 646 million barrels in FY 2011.

Natural gas production? Down from 5,415 Billion cubic feet (Bcf) to 4,859 Billion cubic feet (Bcf) in FY 2011.

Natural gas plant liquids? Down from 115 million barrels to 111 million barrels in FY 2011

Coal production? Down from 478 million short tons to 470 million short tons in FY 2011.

Taken altogether, the total amount of fossil fuel produced from federal land hit 18.6 quadrillion British thermal units (Btu), lower than every year since 2003.

Senator Lisa Murkowski, R-Alaska, recently asked Bureau of Land Management Director Bob Abbey about the discrepancy between administration claims and the most recent figures from the Energy Information Agency.

If Gasoline Were Food, Obama Would Be Starving Us to Death.

These Gas Prices Are Obama's Gas Prices

Barack Obama has spent his presidency finding scapegoats and fleeing responsibility. For example, our massive deficit is not his fault. Rather, it’s George W. Bush’s fault. Our painfully high unemployment isn’t his fault either. Rather, it’s due to the fact that “the economy is so automated.” He’s even tried to assure us that we can’t blame him for the sharp rise in gasoline prices we’ve seen under his watch either. Rather, he boasts that he’s expanded domestic oil production to its highest point in the last eight years.

Here’s what he said in a speech on March 15: "Do not tell me that we're not drilling. We're drilling all over this country. There are a few spots we're not drilling. We're not drilling in the national mall. We're not drilling at your house. " He then grinned like the cat that just ate the mouse, as if saying these thing takes him off the hook for the fact that the price of gasoline has jumped over 100% on his watch.

That’s right—over 100%.

Here’s the problem, as with almost everything this administration tells us, there is a small sliver of truth in what Obama said, and he’s using that small sliver to hide the ugly reality behind it. For example, domestic production is currently up by 120,000 barrels a day. But Obama has cut foreign intake by 1,000,000 barrels a day. In other words, the ugly reality is that Obama is forcing us, as a nation, to make due with 880,000 less barrels of oil a day that we were used to having prior to his presidency. Take away that much oil a day in a situation that isn’t static—a situation where demand is constantly growing—and it’s no wonder our gas prices are through the roof.

Read the rest here

Its Too Soon To Lower Prices At The Pump

Related article from Heritage Foundation's The Foundry

The Senate on Tuesday blocked an amendment to pending transportation legislation that would have mandated a huge expansion of offshore oil-and-gas leasing, opened the Arctic National Wildlife Refuge to drilling and approved construction of the Keystone XL oil sands pipeline.
Sen. Pat Roberts’s (R-Kan.) amendment, which failed 41-57, would have also extended several energy efficiency and renewable fuels tax incentives and extend a pay freeze for federal workers, among other provisions.
“My amendment addresses the rising cost of gasoline,” said Roberts in support of his amendment prior to the vote. “It cuts red tape, opens up more federal land for oil-and-gas exploration and drilling, it would approve the Keystone XL pipeline and extend renewable tax provisions.”

H/T ConservativeByte

It needs to be done closer to October, so we don't get to comfortable between now and November. My goodness, what would happen if Americans had inexpensive gasoline through the whole summer. They might have the means to actually travel around and gather with friends and discuss issues and, "GASP Heaven forfend", actually drive cars to DC to demonstrate their displeasure with the current administration.

Not My Job

A Message From the Folks Who Live There

“It’s About Jobs”:
Ice Road Trucker & Fellow Alaskans Testify on Need to Unlock American Energy in Alaska

Posted [on SotH website] by Katie Boyd on September 21, 2011

Opening up resource-rich areas of Alaska to new energy exploration and production will create jobs, ensure the continued flow of energy to the lower 48 states, and promote America’s energy security. That was the message shared by Alaskans today at a House Natural Resources Committee hearing on the government’s refusal to unlock more American energy production in that state. Boosting American energy production to address high gas prices and help create jobs has been a key plank of the GOP’s plan for jobs and the focus of our American Energy Initiative. Here are some of the highlights from today’s hearing:

“Development of ANWR Would in Turn Create Tens of Thousands of Jobs.” Fenton Okomailak Rexford, Tribal Administrator for the Native Village of Kaktovik and a member of the Kaktovik City Council: “[D]evelopment of ANWR would result in thousands of new contracts, all across the U.S., for materials and services. … The additional expenditures related to development of ANWR would in turn create tens of thousands of jobs, many of which could put unemployed Americans back to work in manufacturing facilities, the construction business, and other industries.” (Testimony, 9/21/11)

“Inaction Trumps Common Sense and Legitimate Need” for Jobs. Tim Sharp, Business Manager of the Alaska District Council of Laborers: “We seem to be caught up in contemplating our navel on process, permitting and politics at a time when it is obvious to most that we have oil in Alaska, development would generate thousands of needed jobs, and the leverage and impact the foreign producers could have on us would lessen. Instead, inaction trumps common sense and legitimate need. … I am addressing today the need for political action to offset our dwindling energy reserves in the next five to ten years but equally important the need for jobs today. ” (Testimony, 9/21/11)

Here's A Good Start If It's Done Right

Got this from GOPUSA in an email blast. At first glance, it looks like it will work just fine, if they install the pipeline right the first time. There are pipelines buried everywhere carrying refined petroleum products and natural gas and they work just fine. I know this project will keep a lot of welders and welding inspectors very busy, and yes, I'm self-serving. I like to work. I like earning a living.

I also know the enviro-wackjobs will be very busy trying to stop it. This project will twist their panties in a wad.

Here's the location map.
And here is the Google Earth satellite view.

View Larger Map

I'm sure they'll find some red-breasted tit-mouse kangaroo owl who only eats snail-darters and claim endangered species.

Here's the link to voice support for this project.

The Keystone XL pipeline would bring North American oil to refineries on the Gulf Coast here in the US.

That means more American jobs, lower energy costs (including lower prices at the pump), and a more stable, secure energy supply. But unless the Federal Government allows access to the vast resources at our fingertips, those jobs will go overseas - and America will stay just another international crisis away from gas prices reaching $4/gallon again, or soaring even higher.

It Will Make For Some Cheap Gasoline, Too

Oil trade groups: Drilling deregulation could create 190,000 jobs

Published: 12:04 AM 07/12/2011
Updated: 2:34 AM 07/12/2011

Almost 190,000 jobs could be created by 2013 if offshore drilling returns to pre-spill levels, according to a study sponsored by two oil trade groups, the National Ocean Industries Association (NOIA) and the American Petroleum Institute (API).

The study, conducted by Quest Offshore Inc., found that if permits for exploration and drilling returned to historic levels, and if backlogged requests were granted, 400,000 jobs could be supported across the United States with a GDP increase of $45 billion by 2013.

“The president says he wants ideas for putting Americans back to work right now,” said Jack Gerard, API president, during a conference call today. “So we urge him, again, to take a look at policies that will encourage oil, and domestic gas development.”

BigBambu and Co up in de Massa's house don't want American oil going into American companies. Where's the fun in that? Their idea of maximum fun is to make every American as bad off as, say, a resident of a suburb of Mexico City. They want us BROKE Folks. How else do you explain it? If he's so effing smot (ess em oh tee smot), why is it that he keeps promoting policies that will take us all down the rabbit hole?

He's not smot: he's clever, devious, pernicious, insidious and evil and he has the best interests of NO ONE EXCEPT HISOWNSELF.

Read more:

The Reality Is, We Need Oil

The Reality Is, We Need Oil

If Democrats are left to their desires, America will soon resemble Spain. Its government forced green jobs onto the economy and the result was for every one green job created, the private sector lost two. Spain’s green industry caused energy prices to skyrocket and businesses found it too expensive to produce. The added costs were passed to the consumer and the economy naturally contracted. The result is an unemployment rate at 20 percent and political paralysis

and unless someone re-invents impulse drive, we will continue to need it.

Cheap Oil=Leisure Time=Creativity=New Stuff

The search for alternative forms of energy is something that has to be done, if for no other reason than it would be cool as hell to be the one who invents impulse power, hyper-drive systems or hydrogen powered generators. The trick is to create the environment that allows people the freedom to let their creative juices flow unchecked. Americans create things when they are free to explore the limits of technology. You don't have that freedom if you're spending every waking minute, and every dollar you earn, trying to make a living and pay bills, and you have nothing left after completing those basic tasks. Cheap oil gives Americans the freedom to explore. It is a neccessary component of that environment we need to create. It gives us the leisure time we need to explore, play, create and develop.

Obama and Reid offer hot air, not cheaper gas

With gas prices hovering at $4 a gallon, Senate Majority Leader Harry Reid of Nevada reportedly wants a Senate vote this week on a measure to punish oil companies by denying them $21 billion in tax credits and deductions routinely given to other businesses. At President Obama's request, Reid would instead use the money to fund alternative energy development projects that the Energy Information Administration says won't be able to replace fossil fuels to any significant degree for two to three decades

Drill-Jobs-Drill-Jobs-Drill-Jobs

Governor Bob McDonnell Calls for Virginia Offshore Energy Development
As Gas Prices Continue to Rise, Governor Offers Strong Support for Congressional Legislation That Would Open Commonwealth to Offshore Oil and Gas Exploration and Production

RICHMOND – During his visit to a Richmond-area gas station this afternoon, Governor Bob McDonnell discussed rising gas prices and the need for more domestic energy production, including production of oil and natural gas off of Virginia’s coast. The Governor specifically highlighted two bills before Congress that would restart offshore energy exploration and production: H.R. 1230 and H.R. 1372. Governor McDonnell was joined at the event by Delegate Jimmie Massie (R-Henrico), small business owners, and representatives from the energy industry.

Speaking about America’s domestic energy policy, Governor McDonnell commented, “America has an energy policy problem. Today, Virginia businesses and families are paying, on average, $3.88 per gallon for gasoline. That’s up $1.00 from a year ago. The Energy Information Administration estimates that gasoline will cost the average U.S. household $1,210 more this year than in 2009. That is money that could be spent by families on education, groceries and vacations. Instead it is money being spent at the pump. The pain at the pump is the result of many factors, one of which is the result of our ongoing dependence on foreign sources of oil. That is why I strongly support increasing domestic energy production from every possible source, including wind, solar, biomass, nuclear, oil and natural gas. A key part of that effort should be the environmentally responsible development and production of oil and natural gas off of Virginia’s shores.”

Governor McDonnell continued, “Last month I sent a letter to President Obama outlining the steps we can take now to ensure we have a stable and reliable supply of oil and natural gas. The House of Representatives will soon be considering two pieces of legislation that will restart offshore energy production in Virginia and in the Gulf, and I have urged the President to support this legislation. By allowing for offshore energy exploration in the Gulf of Mexico, and requiring the lease sale off the Atlantic Coast to move forward, we will be well on our way to restarting offshore energy production which will create jobs, lower energy costs, and generate revenue to help pay down the national debt. This legislation is essential to getting American energy production back on track. We must move forward in developing our own domestic resources to their maximum potential. America cannot afford to keep turning a blind eye to rising gas prices, which are detrimental to job creation, economic growth, and most importantly, our national security. When it comes to domestic energy production we must have an “all of the above” approach. That is why I strongly support efforts to develop our offshore wind resources, bring more nuclear power online, continue to utilize our vast coal deposits, and carry forth the ongoing research and development of renewable energy sources like solar power and biomass. When it comes to energy we must utilize every resource available. We know that oil and natural gas is available off our coast and we know we can develop those resources in a safe, smart and environmentally responsible manner. We should act immediately.”

Congressman Bob Goodlatte (R-VA), who is carrying H.R. 1372, noted, “Virginians understand that a major component in lessening energy costs is to produce more energy. I believe that Virginia should have every tool available to access its energy supplies. That is why legislation like the one the Congress is considering today, that would provide for access to Virginia's energy supplies as well as legislation that I have introduced that would provide for revenue sharing with the Commonwealth for its energy resources are vital to the Commonwealth of Virginia. In addition to helping us become energy independent, access to these resources will help create thousands of jobs for Virginians and infuse the Commonwealth with new capital growth.”

Delegate Jimmie Massie, who is also a small businessman, added, “Last week I had dinner with other business leaders and I ask them: ‘How is business? How are your sales doing?’ Their response last week was not good. Every one of them told me they had seen a noticeable drop in their sales over the past month as gas prices have been increasing, and, as a result, consumer’s disposable incomes have been constantly declining. We must act now to lower gas prices and develop a comprehensive energy policy, to curb our increasing gas costs that are creating a severe cash flow squeeze and destroying jobs.”

Randy Seibert, President & CEO of Manchester Marketing, Inc, remarked, “Just like rising oil prices affect our customers, even gas stations are impacted because we have to pay more for gas too. For example, one year ago it cost me about $23,000 to purchase a truckload of gas. This morning, that same delivery to this station cost us about $33,000. This is creating cash flow problems for businesses like ours across the Commonwealth.”

Mike Ward, Executive Director of the Virginia Petroleum Council, concluded, ““The oil and natural gas industry stands ready – and waiting – to do more to help grow the economy, create American jobs, and provide the energy this country needs. The energy markets are constantly looking for signals to guide today’s investment strategies for producing tomorrow’s energy. Regrettably, the signals this administration has been sending encourage less investment in future domestic energy production. Our economy will still need oil and natural gas for decades to come. America must pursue policies that encourage responsible development of our resources instead of relying on imported energy from unstable parts of the world.”

Mike O’Connor, President & CEO of the Virginia Petroleum, Convenience and Grocery Association, said, “Our members are impacted in much the same way as our customers. The only real difference is in the size of our tanks. A year ago it cost $54,000 to supply a station with 20,000 gallons of storage capacity. Today that same delivery costs the station owner $76,200. As a result, credit lines are stretched to their limits, which has brought new investment in the petroleum marketing industry to a halt.”

The letter Governor McDonnell sent to President Obama is attached to this press release. To read Governor McDonnell’s op-ed in today’s Richmond Times-Dispatch outlining the critical need to develop our domestic energy resources, please visit: http://www2.timesdispatch.com/news/2011/may/05/tdopin02-mcdonnell-americas-energy-insecurity-ar-1017440/

Oil Jobs in Virginia On the Line

H.R. 1230—Restarting American Offshore Leasing Now Act

FLOOR SITUATION

On Thursday, May 5, 2011, the House is scheduled to consider H.R. 1230, the Restarting American Offshore Leasing Now Act, under a rule. A summary of the rule, and any amendments made in order under the rule will be distributed when it becomes available.

H.R. 1230 was introduced by Rep. Doc Hastings (R-WA) on March 29, 2011, and was referred to the House Committee on Natural Resources. On April 13, 2011, the House Committee on Natural Resources held a markup of H.R. 1230 and ordered the bill to be reported by a vote of 29-14.

Summary

H.R. 1230 would require the Department of the Interior (DOI) to auction offshore oil and gas leases in the Central and Western Gulf of Mexico, as well as in an area off the coast of Virginia. Specifically, H.R. 1230 would require the Secretary of the Interior to conduct offshore oil and gas lease sales as follows:
1. Lease sale 216 in the Central Gulf of Mexico “as soon as practicable,” and no later than four months after enactment of the Act;
2. Lease sale 218 in the Western Gulf of Mexico “as soon as practicable,” and no later than eight months after enactment of the Act;
3. Lease sale 220 on the Outer Continental Shelf (OCS) offshore of Virginia “as soon as practicable,” and no later than one year after enactment of the Act; and
4. Lease sale 222 in the Central Gulf of Mexico “as soon as practicable,” and no later than June 1, 2012.
The bill would prohibit the Secretary of the Interior from making any tract available for leasing if the President, through the Secretary of Defense, determines that drilling activity on the tract would create an unreasonable conflict with military operations.

H.R. 1230 would state that, for purposes of lease sales, the Environmental Impact Statement for the 2007-2015 five-year OCS Plan and the Multi-Sale Environmental Impact Statement satisfies the requirements of the National Environmental Policy Act of 1969.

The bill would define “Environmental Impact Statement for the 2007-2015 five-year OCS Plan” as the Final Environmental Impact Statement for Outer Continental Shelf Oil and Gas Leasing Program: 2007-2010 (April 2007), prepared by the Secretary of the Interior.

The bill would also define “Multi-State Environmental Impact Statement” as the Environmental Impact Statement for Proposed Western Gulf of Mexico OCS Oil and Gas Lease Sales 204, 207, 210, 215, and 218, and Proposed Central Gulf of Mexico OCS Oil and Gas Lease Sales 205, 206, 208, 213, 216, and 222 (September 2008), prepared by the Secretary of the Interior.

BACkground
According to House Report 112-068, the Outer Continental Shelf Lands Act (OCSLA) provides a system for offshore oil and natural gas exploration, leasing, and development in federal waters. The federal government develops five-year plans to determine where and when offshore leasing and energy production will occur.
The current five-year plan (2007-2012) included a lease sale off the Virginia coast in 2011 (#220), two Gulf of Mexico lease sales (#216 and #218) in 2011, and another Gulf of Mexico lease sale (#222) to have taken place in 2012. All of these sales have been either canceled or delayed by the Obama administration, threatening to make 2011 the first year without any lease sales in the OCS since 1958. As a result, the President's budget predicts that OCS revenues from bonus bids and rents will be only $150 million, approximately 1.5 percent of the $9.85 billion in revenue generated by OCS sales in FY 2008. This loss of billions in revenue will have a real impact on the federal budget and delay America’s domestic energy production.
In 2008, the Congress and the President lifted the decades-long ban on offshore drilling. This opened an additional 500 million acres to offshore drilling--including areas off the Atlantic coast. Lifting the ban allowed the scheduled Virginia lease sale in 2011 to proceed. However, in 2010 the Secretary of the Interior delayed the Virginia lease sale until 2012 and announced that areas off the Atlantic coast would not be available for leasing and energy development in the next five-year plan (2012-2017). In 2010, the Secretary of the Interior also canceled two scheduled Gulf of Mexico lease sales from 2011 until 2012. H.R. 1230 will reverse the administration's delays by validating the existing completed Environmental Impact Statements (EIS), prepared for these lease sales under the National Environmental Policy Act, ensuring these lease sales move forward in a prompt, timely and safe manner. H.R. 1230 expands American energy production, creates jobs and generates revenue for taxpayers.
It is important to note that the EIS work for the Gulf lease sales is complete, thorough, and sufficient to safely and responsibly conduct lease sales. The EIS for the Virginia lease sale is to be completed within one year. Furthermore, each lease undergoes an environmental assessment along with additional environmental reviews of the submitted Exploration Plan. In totality, before an oil and natural gas project on a lease in federal waters takes place, there will be at least four separate environmental reviews to determine the overall environmental effects of development down to the site-specific review of impacts. The EIS for the Virginia lease sale is to be completed within one year.
Cost

According to Congressional Budget Office (CBO) cost estimates, enacting H.R. 1230 would affect direct spending or revenues; therefore, pay-as-you-go procedures apply. CBO estimates that enacting this legislation would reduce net direct spending by $25 million over the 2011-2016 period and about $40 million over the 2011-2021 period. Enacting the bill would not affect revenues.

In addition, CBO estimates that DOI would spend about $2 million to implement the legislation (completing environmental assessments, etc.), assuming the availability of appropriated funds.

Staff Contact

For questions or further information contact Sarah Makin at 6-2302.