Posted on Wed, Jul. 12, 2006
Senate approves expanded drilling in Gulf of Mexico
By Mark K. Matthews
The Orlando Sentinel
(MCT)
WASHINGTON - U.S. Senate leaders announced a compromise Wednesday that would expand oil and gas drilling in the Gulf of Mexico by millions of acres, but keep exploration at least 125 miles from Florida's western shoreline.
In the deal, Florida Sen. Mel Martinez appears to have gained a major concession by moving the buffer zone for drilling farther from his state's coastline than originally planned by Senate Energy Committee Chairman Pete Domenici.
The agreement was announced by Senate Majority Leader Bill Frist, R-Tenn., Domenici, R-N.M., Martinez and lawmakers from other coastal states. Frist said it tries to strike a balance by tapping oil and gas reserves in the Gulf of Mexico while also protecting Florida's multibillion-dollar tourism industry.
The deal will "protect our shoreline," Martinez said.
But others were not so sure. Environmentalists are against expanding any exploration in the Gulf. They also note that the Senate plan would allow offshore development in an area of the eastern Gulf known as Lease Sale 181, where government bans have kept drilling off limits.
Sen. Bill Nelson, D-Fla., said the deal seemed promising but was withholding support until he received assurances that it would not be watered down during negotiations with the House of Representatives.
The House's energy-exploration bill that passed last month is much more comprehensive than the Senate's, which focuses on drilling only in the Gulf of Mexico. The House bill sets a 50-mile drilling buffer throughout the entire U.S. coast, but would allow state Legislatures to expand that barrier to 100 miles.
After hearing Nelson's concerns, Frist could not guarantee there would be no concessions with the House along the way.
"This agreement will make America more energy-independent, reduce our reliance on foreign oil (and) strengthen our national security," said Frist, who expects a vote this month. Plus, he said, it "provides historic protection for the state of Florida."
Domenici predicted easy passage in the Senate.
Under the latest plan, the drilling protections for Florida's western coastline - as well as a military training area more than 230 miles west of Tampa - would expire in 2022.
Both the Senate and the more ambitious House plan have fractured a Florida delegation that long stood united against offshore drilling. But rising energy prices have put pressure on lawmakers to allow for more exploration.
This division was apparent Wednesday when Nelson arrived midway through the announcement to express his concerns. He and Martinez had both voiced serious problems with the House bill. But on Wednesday Nelson seemed to part company with Martinez.
"The devil's in the details," said the Florida Democrat.
Florida's two senators had been pushing a plan that would create a 150-mile buffer around the state and limit drilling in the Gulf of Mexico to 744,000 acres. But that idea received little support.
The proposal announced Wednesday builds on a measure pushed by Domenici and passed his energy committee in March. The Senate plan opens up 8 million acres, including 1.6 million in resource-rich Lease Sale 181.
A spokeswoman for the senate energy committee said the newly opened area would produce an estimated 1.25 billion barrels of oil and 5 trillion cubic feet of natural gas.
Martinez, a Republican, hailed the compromise as a success.
"I am thrilled and delighted that we got 125 miles for the people and Florida. It's a huge victory," Martinez said. As for the protections expiring in 2022, Martinez said he was not worried.
"I am very hopeful with America's ingenuity and America's know-how, and our commitment to less dependence on foreign sources of energy, that we will become less dependent on fossil fuels," he said. "I am very hopeful by that year, this won't even be an issue."
Gov. Jeb Bush also offered his support, praising Martinez for negotiating the best deal he could for Florida. He also expressed hope that the Senate and House would continue working to protect Florida's beaches from offshore drilling.
The Senate agreement also paves the way for other Gulf Coast states to share in federal revenue produced by the rigs if they do decide to allow drilling.
Louisiana could receive hundreds of millions of dollars over the next decade through revenue-sharing, according to Sen. Mary Landrieu, D-Louisiana.
Environmentalists, who fought passage of the House bill, also said they were disappointed in Martinez and in the measure.
"It looks as if Sen. Martinez has decided to side with his leadership in the Senate and other pro-drilling senators rather than with the interests of Florida," said Mark Ferrulo, director of the Florida Public Interest Research Group.
Ferrulo is concerned that oil and natural gas rigs could lead to environmental accidents that could tar Florida's shore.
A spokesman for Rep. Clay Shaw, who heads the Florida delegation on the House side, said the Fort Lauderdale Republican did not support the plan.
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