Looking offshore: Bill would streamline OCS leasing.
Industry cheers bill to speed OCS drilling
The head of an oil industry lobbying group applauded the introduction of a bill in the US House that would expand drilling offshore and expedite leasing.
The National Conservation, Environment and Energy Independence Act, sponsored by Representatives Tim Murphy and Neil Abercrombie, was introduced onto the House floor today.
The bill calls for an Outer Continental Shelf (OCS) lease sale to occur in each of the four OCS planning areas within 30 days after it becomes law.
It mandates another sale every 270 days afterwards in areas with industry interest.
The bill would also give states a 30% cut of the royalties on any production within 12 nautical miles of the coast.
It directs the federal share of royalties toward renewable energy and efficiency programmes.
Though the bill would open access to previously closed areas, companies would not be allowed to locate any facilities within 10 miles of the coast.
Between 10 and 20 miles they could not site “permanent” facilities in any areas that are not already open for exploration.
If approved, the bill would streamline legal action on leasing decisions by requiring the US Court of Appeals in Washington DC to rule on the case within 120 days.
Jack Gerard, head of the American Petroleum Institute, called the bill “a step in the right direction.”
“This bipartisan bill recognises the importance of increased access to offshore oil and natural gas resources not only to our nation’s economy, in terms of generating federal, state and local revenues and new well-paying jobs, but also to America’s energy security,” he said in a press statement. “Expanding access would mean more revenues, more jobs and greater energy security.”
Gerard said his group would be looking over the proposal and would offer revisions to some areas as it moved through Congress.