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Senate sets stage for drilling vote

Senators end debate on the gulf drilling measure, assuring a vote this week. But can differences with the House be resolved?

By ASSOCIATED PRESS
Published August 1, 2006

WASHINGTON - The Senate cleared the way Monday for a vote on legislation that would open 8.3-million protected acres in the Gulf of Mexico to oil and gas drilling.

Senators voted 72-23 to limit debate, assuring a final vote on the bill this week before senators depart for the summer recess. The bill's supporters said they have the majority needed to push it through.

But a battle loomed with the House, which has approved a bill that would allow drilling far beyond the limited acreage in the central Gulf of Mexico. Negotiations to reconcile the two measures won't begin until September.

The House bill would lift a quarter-century moratorium that has kept 85 percent of the nation's coastal waters off-limits to energy companies from New England to Alaska. Opponents have said they will block legislation that would jeopardize the drilling ban along the Pacific and Atlantic coasts.

Senate leaders have promised lawmakers from Florida and other coastal states that they would insist a final bill not go beyond the gulf waters. The Senate legislation also would provide tens of millions of dollars to four gulf states for coastal restoration.

Sen. Pete Domenici, R-N.M., one of the bill's sponsors, criticized "the crazy idea that these resources should be locked up" when the country needs more domestic oil and gas supplies.

They've "been locked up for no good reason other than emotion," he said.

But Domenici said while he favors lifting the moratorium in some waters outside the gulf he would "do everything in my power" to structure a compromise with the House that can pass the Senate and avoid a filibuster.

The Senate bill would require the Interior Department to issue drilling leases within a year in 2-million acres known as Lease Area 181 and in another 6.3-million acres just south of it in the east-central Gulf of Mexico. Both areas have been off limits to energy companies and are believed to have 1.2-billion barrels of oil and nearly 6 trillion cubic feet of natural gas, enough to heat 6 million homes for 15 years.

To gain the support of Florida's senators, no drilling would be allowed within 125 miles of Florida's coast and in some areas the leases would be more than 230 miles from the state's beaches.

Florida Republican Sen. Mel Martinez called the plan a "good compromise ... to protect Florida" while addressing "the great pressure that we're under" to expand the search for domestic energy because of high natural gas prices and the growing reliance on foreign oil.

Broad opposition to the bill began to melt away last week when Florida Democratic Sen. Bill Nelson, who had threatened to filibuster any offshore drilling legislation, announced his support for the bill after being assured by Senate leaders they would not accept the House measure.

Both Nelson and Martinez voted in favor of Monday's motion limiting debate.

Under the bill, Louisiana, Mississippi, Alabama and Texas would get 37.5 percent of the revenue, compared to the less than 2 percent they now receive. In 10 years, when the new sharing agreement would cover existing as well as new leases, the four states are expected to get an additional $1.2 billion a year, about half going to Louisiana.

Sen. Jeff Bingaman, D-N.M., said he opposed the bill because of the revenue sharing change, saying it would take too much money out of the federal treasury for the benefit of four states.

The issue has attracted intense lobbying by environmentalists, who oppose changing the drilling restrictions, and business groups that say the additional oil and gas is needed to reduce prices.

[Last modified August 1, 2006, 02:07:23]