Coastal Protection –2008 OFFSHORE DRILLING “CHEAT SHEET”
BACKGROUND: In 1981, Congress protected America’s coasts, beaches, and marine ecosystems from the threats of oil and gas development by adopting the Outer Continental Shelf (OCS) Moratorium. The moratorium prevents the leasing of America’s coastal waters for fossil fuel development. In the twenty-five years since, Congress and successive presidents have recognized the value of America’s coasts and have continued to ban new drilling off the Atlantic and Pacific coasts. Following the devastating Exxon-Valdez oil spill in Alaska’s Prince William Sound in 1990, President George H.W. Bush, signaled a commitment to continue the moratorium by calling for ban on new offshore drilling leases until the year 2000. In 1998, President Clinton extended the ban for an additional 10 years, halting lease sales until 2012. Each year, Congress has voted to continue the ban as part of the annual appropriations process. Currently, the entire Atlantic Coast, most of the Pacific Coast and Gulf of Mexico are protected by the ban. Now, with the help of powerful Congressional allies, Big Oil is aggressively pushing to kill the moratorium that has protected our coasts for nearly three decades. Despite a history of failed attempts to open up beaches to oil rigs, drilling advocates have vowed to renew their efforts. In this age of innovation, Americans already have the technology and know-how to move beyond our dependence on dirty, outdated energy sources like oil and gas. We can use clean energy solutions like wind and solar power to reduce our energy demand today and far into the future. We don'have to sacrifice our pristine beaches to meet America’s energy needs. Our nation t deserves cleaner, quicker, cheaper and safer energy solutions. By investing in real energy solutions today, we can protect our shores and coastal economies for generations to come. CURRENT THREATS TO AMERICA’S COASTS: July 14, 2008: President Bush announces that he is he is lifting the executive moratorium on new offshore drilling off our coasts.
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July 10th, 2008: Majority Leader Steny Hoyer (D-MD) announced his intention to introduce a new Democratic energy bill. This bill is similar to Representative Rahall’s (D-WV) "use it or lose it" bill, but it includes a measure meant to induce oil companies to drill on the thousands of leases they already own. The bill also reimposes an export ban for oil produced in Alaska, and expedites the development of the new Alaska gas pipeline. There is also a mandate for annual leasing in the National Petroleum Reserve for areas already open for leasing. June 26th, 2008: Senator McConnell (R-KY) introduced the Gas Price Reduction Act, Which would lift the moratorium on offshore drilling and oil shale development. June 17th, 2008: Sen. John McCain (R-AZ) stated that the federal moratorium on offshore oil and gas drilling should be lifted and individual states given the right to pursue energy exploration in waters near their own coasts. June 16, 2008: Representative Rahall (D-WV) introduces H.R. 6251, The Responsible Federal Oil and Gas Lease Act. Sponsored by Rahall, the “use it or lose it” legislation forces oil companies to produce oil and gas, or diligently develop, the 68 million acres of public land they already have leased, but are not using to produce energy. The bill received a majority vote 233195, but did not receive the two-thirds majority needed to advance the bill under the special procedural rules that were used to bring up the measure. June 11 th, Representative Peterson (R-P.A.) introduced his amendment to lift the offshore drilling moratorium to the Interior Appropriations bill during the Interior Appropriations Subcommittee mark up. On a 6-9 vote the amendment failed. June 2008: Delegate Chris Saxman’s (R-Augusta) introduced HB 6006 in the Virginia Legislature. The legislation would dedicate future revenues and royalties from offshore drilling to Virginia’s Transportation Trust Fun. The bill passed 12 to 3 in the House Rules Committee but failed died 16-18 in the State Senate. May 13th, 2008: Senators McConnell (R-K.Y.) and Domenici, (R-N.M.) attached the Domestic Energy Production Act tack onto the Flood Insurance bill (amendment No. 4720). This amendment would have allowed drilling in the Arctic National Wildlife Refuge and opened areas in the outer continental shelf for new off shore drilling. This amendment lost 56-42. April 2008: Senator Vitter introduced an amendment (#4593) to HR 2881, FAA Reauthorization. This amendment would have lifted the moratorium on offshore drilling. This bill is currently stalled in the senate. April 2008: Representative Peterson (R-P.A.) introduced his amendment to lift the moratorium on offshore natural gas drilling on the Beach Protection Act. This amendment was dropped. February 2008: The MMS held a lease sale for the Chukchi Sea, Alaska. Shell Oil broke records with a $100 million bid for rights to drill a single 3-mile by 3-mile stretch of the sea.
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The Chukchi Sea alone supports approximately one-tenth of the world’s remaining polar bear population. January 7th, 2008: The U.S. Department of Fish and Wildlife today announced it would miss its January 9 deadline for recommending listing the polar bear as "threatened" under the Endangered Species Act. A "threatened" listing would represent the first major Endangered Species Act (ESA) initiative taken by the U.S. government because of global warming. The ESA defines a threatened species as one likely to become endangered in the foreseeable future. Hearings where held in the Select Committee on Energy Independence and Global Warming and the Senate Committee on Environment and Public Works. Threats in 2007: June 26th, 2007: Representative Peterson (R-PA) introduced an amendment to the Interior Appropriations bill on the House floor that would allow natural gas drilling in areas previously protected. This amendment would allow natural gas drilling as close as 25 miles from shore. The amendment failed 196 to 233. June 26th, 2007: Representative Conway (R-TX) introduced an amendment to the Interior Appropriations bill on the House floor to open the Atlantic and Gulf Coast moratorium areas to drilling. The amendment failed 167 to 264. June 2007: Representatives Peterson (R-PA) and Abercrombie (D-HI) introduced a bill that would allow natural gas drilling 25 to 50 miles offshore with approval from individual states— lifting the 25-year drilling moratorium. Peterson attempted to sweeten the pot for other states by offering them up to $400 billion in royalty payments, ostensibly for environmental cleanup programs. Areas slated for payments would include the Florida Everglades, Great Lakes, San Francisco Bay, Chesapeake Bay and Colorado River Basin. June 22, 2007: Senators blocked an effort by Senator Diane Feinstein (D-Calif.) in the Senate Interior Appropriations Bill to recover nearly $10 billion in lost royalty payments from deep water drilling leases issued in 1998 and 1999. June 14, 2007: Senator Warner (R-VA) introduced an amendment to the Senate Energy Bill (HR. 6) which would have open new areas off the coast of Virginia to natural gas drilling. The amendment was defeated 43-44. The Warner amendment would: Allow Virginia’s Governor to petition for offshore natural gas drilling anywhere in the coastal zone of that state. Meaning that drilling could happen just a few miles from the beach, just a few miles from the mouth of the Chesapeake Bay, just a few miles from Assateague Island National Seashore and Chincoteague National Wildlife Refuge. • Exclude most states from commenting on leasing even if ocean would take spills in their direction. •
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Provide a financial incentive for states that allow drilling activity off their coasts that could cost the federal treasury billions. No CBO report on the damage yet. Pit one state against adjoining states in drilling decisions. Include language straight out of Rep. Richard Pombo' failed drilling bill of 2006. s June 7, 2007: Representative Peterson (R-PA) introduced an amendment to the Interior Appropriations Bill that would have opened coastlines to natural gas exploration--a move that would effectively open the floodgates for oil drilling up and down our coasts. The amendment was defeated 39-25 in committee. April 30, 2007, The Minerals Management Service (MMS) submitted its Final 5-Year Outer Continental Shelf Oil and Gas Leasing Program for 2007-2012, and the Final Environmental Impact Statement, to Congress. MMS develops and implements 5-Year Programs that determine the areas to be leased for offshore oil and gas development on the Outer Continental Shelf (OCS). The MMS proposes that 83.41 million acres off Alaska be opened up for oil and gas exploration and development over the next 5 years. The new 5-Year Plan offers lease sales in the Chukchi Sea, Beaufort Sea, and Bristol Bay. March 2007: Senators Dorgan (D-ND) and Craig (R-ID) introduced The Security and Fuel Efficiency Energy Act of 2007, S.875, which would allow U.S. oil and natural gas rigs in as close as 45 miles from the U.S. coastline in the Gulf of Mexico. January 2007: The White House exercised its executive authority by lifting the ban on drilling off the southwest coast of Alaska in the fragile, salmon-rich waters of Bristol Bay. Bristol Bay, one of the world’s most productive marine systems for fish, marine mammals and migratory birds, has enjoyed congressional or presidential protections since the Exxon Valdez spill in 1989. Threats in 2006: December 8th, 2006: The House and Senate passed the Senate' offshore drilling bill, S. 3711 s The Gulf of Mexico Energy Security Act, as part of a $45 billion "tax extenders" bill (367-45). The offshore drilling provisions -- which include opening up 8 million acres in the Gulf of Mexico -- are much narrower in scope than the bill passed by the House this year. President Bush signed this bill into law. On July 20, 2006: After striking a verbal agreement with Senator Mel Martinez (R-FL) on drilling off Florida' Gulf Coast, Senator Domenici' introduced The Gulf of Mexico Energy s s Security Act, S. 3711. The bill would: • Allow new oil and gas drilling in an area in the Gulf of Mexico the size of the state of Maryland (approximately 8 million acres). • Repeal parts of the moratorium (nearly 6.3 million acres) against new drilling that has protected America’s coast for more than 25 years. • Provide a 125-mile buffer for the Florida Gulf Coast, yet it does nothing to protect our Atlantic and Pacific coasts.
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Not buy back the 98 existing leases off Florida' Panhandle. The bill includes an option for s companies to swap these leases for drilling rights in the Western and Central Gulf, but it is only an option, not a mandated buy-back. Leave the door open to drastic changes. If it passes the Senate, the bill could head to a conference committee with the House bill which jeopardizes all of America’s coasts. Cost the Federal Treasury nearly $20 billion over the next 20 years.
On July 12th, 2006: Senate Majority Leader Frist announced that he and key Gulf Coast Senators, including Florida Senator Martinez, had reached a deal on an offshore drilling bill that would open up millions of acres in the Gulf of Mexico. On June 29th, 2006: the U.S. House of Representatives passed HR 4761, The Deep Ocean Energy Resources Act, a bill sponsored by Rep. Richard Pombo that lifts the 25-year moratorium. Pombo’s bill would: • Allow oil and gas drilling within 100 miles of shore with no option for States to object. • Allow States to petition for offshore drilling within 50 miles of the coast, meaning that drilling could happen just a few miles from the beach. • Force States to actively oppose drilling 50-100 miles from shore every five years. Moreover, states have only one year to act to block natural gas drilling and three years to block oil drilling. • Provide a financial incentive for States that allow drilling activity off their coasts that could cost the federal treasury billions. • Preempt State jurisdiction over ocean pipelines in state waters. • Pit one State against adjoining states in drilling decisions. • Provide yet another giveaway to Big Oil even while the oil and gas industry rake in record profits.
On February 15th, 2006: The Minerals Management Service (MMS) released its Proposed 5year 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 anticipated 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. 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. The bill never has a hearing or a vote. February 16th, 2006: Senators Pryor (D-AR) and Warner (R-VA) introduced The Reliable and Affordable Natural Gas Reform Act which would open vast new lease areas in the Gulf of
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Mexico within Lease Sale 181 and end all presidential deferrals in the OCS. The proposal would 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. The bill never has a hearing or a vote. 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. The bill never had a hearing or a vote. May 18th 2006, Rep Poe (D-PA) introduced an amendment to The Fiscal Year 2007 Interior, Environment and Related Agencies Appropriations Bill to lift the OCS moratorium. The amendment failed 141-279 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. Protecting the coasts from Congressman Peterson’s amendment to lift the moratorium. During committee consideration of the Interior Appropriations bill, Congressman Peterson was successful in passing an amendment to lift the moratorium on offshore 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. CURRENT EFFORTS TO PROTECT AMERICA’S COASTS: In Congress, the offshore moratorium has enjoyed strong bipartisan support throughout its 25year existence. The Sierra Club strongly supports permanent protection for our beaches and coastal waters. May 14, 2008: Representative Inslee (D-WA) and Hinchey (D-NY) introduce the Polar Bear Seas Protection Act. Which would prohibit preleasing, leasing, and related activities in the Beaufort and Chukchi Sea until environmental studies are completed, the polar bear listing decision is made, and oil spill response reaches 85% cleanup.
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January 17, 2008: Representative Markey (D-MA) introduced H. R. 5058 which would prohibit the proposed leasing of Chukchi Sea in Alaska until the Secretary of the Interior determines whether to list the polar bear under the Endangered Species Act and designates critical habitat. January 25, 2007: Senator Menendez (D-NJ) introduced the Clean Ocean and Safe Tourism Anti-Drilling Act, S. 391. This bill serves to permanently prohibit offshore drilling on the outer Continental Shelf in the Mid-Atlantic and North Atlantic planning areas (NC to Maine) January 31, 2007, Representative Pallone introduced the Clean Ocean and Safe Tourism AntiDrilling Act, H.R.777, which would permanently prohibit the conduct of offshore drilling on the outer Continental Shelf in the Mid-Atlantic and North Atlantic planning areas. February 16, 2006: Senators Boxer and Feinstein introduced the California Ocean and Coastal Waters Protection Act, S2294, which seeks permanent protection for California' world class s ocean and coastal resources. The bill would make permanent the annual Congressional moratorium on new oil and gas leasing and development off California' OCS. It would also s repeal the proposed inventory. Representative Lois Capps (D-CA) has introduced a companion bill to Boxer-Feinstein on the House side with 31 cosponsors from the California delegation. The bill did not have a hearing or a vote. February 1, 2006: Senators Nelson (FL-D) and Martinez (FL-R) unveiled the Permanent Protection for Florida Act. This measure provides permanent protection for Florida’s coasts and extends the moratoria protecting the entire Atlantic and Pacific coasts through the year 2020. February 16, 2006: Congressman Jim Davis (D-FL) introduced a companion bill to the MartinezNelson bill in the House. Representatives Alcee L. Hastings (D-FL), Allen Boyd (D-FL) and Corrine Brown (D-FL) are original cosponsors of the bill. The bill did not have a hearing or a vote. OTHER LEGISLATION: December 2006: The Markey-Hinchey-Boehlert amendment to S. 3711, the Gulf of Mexico Energy Security Act would prohibit oil companies who hold offshore leases issued in 1998 and 1999 which provide unlimited royalty relief from bidding on new ones. November 2006: Senator Landrieu introduces an amendment to HR 5384, Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2007. This amendment recaptures money oil companies in the Gulf from the 98-99 deepwater leases that and putts the resulting revenue into a separate fund for the Coastal Impact Assistance Program whose primary purpose is wetland restoration. PAST (2005) THREATS TO THE OCS MORATORIUM: Spring 2005: Governor Warner of Virginia vetoed the Offshore Drilling Bill , SB 1054, after the measure passed the Virginia Assembly. SB 1054 would have directed the Virginia
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Congressional Liaison Office to aggressively pursue an exemption to the federal moratorium for natural gas exploration. May 19th, 2005: Rep. John Peterson (R-PA) offered an amendment to allow offshore natural gas-only drilling in the Outer Continental Shelf as part of the FY 2006 Department of Interior appropriations bill. The Peterson amendment was soundly defeated in a 157-262 vote on the House floor. May 26th, 2005: The Senate Energy and Natural Resources Committee approved the 2005 energy bill by a vote of 21-1 to send the measure to the Senate floor. Senator Landrieu (D-LA) offered two amendments, one to do a natural gas inventory of the outer continental shelf, and one to reexamine the current revenue sharing arrangement. The inventory amendment was passed, but at Senator Domenici' (R-NM) suggestion Senator Landrieu withdrew her amendment to s reconsider the revenue arrangement. June 21, 2005: Senators Martinez (R-FL), Nelson (R-FL), and Corzine (D-NJ) offered an amendment to strike the OCS seismic inventory language from the overall energy bill. The amendment lost 44-52. August 2005: Congress approved the energy bill conference report, H.R. 6. H.R. 6 includes the provision mandating an underwater seismic inventory of the entire outer continental shelf. November 15, 2005: Rep. Peterson (R- PA) introduced the Outer Continental Shelf Natural Gas Relief Act, HR 4318, which would lift the OCS moratorium for natural gas leasing only. November 2005: A provision that would immediately rescind the offshore oil and gas leasing moratorium was stripped from the Budget Reconciliation Package when a bloc of moderate Republicans voiced their objections. Fall 2005: Congressman Pombo (CA-R) crafted a plan that offered a buffer zone for Florida’s coasts but not permanent coastal protection and would have lifted the federal OCS moratorium that covers the Atlantic and Pacific coasts and Bristol Bay Alaska, only allowing states to opt-in to protections. For more information, please contact Kristina Johnson at (415) 977-5619 or Keren O’Brien Murphy at (202) 675-6690 Visit www.sierraclub.org/coasts
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