Copyright 1999 Federal Document Clearing House, Inc.
Federal Document Clearing House Congressional Testimony
May 03, 1999
SECTION: CAPITOL HILL HEARING TESTIMONY
LENGTH: 2451 words
HEADLINE:
TESTIMONY May 03, 1999 BARRY KOHL LOUISIANA AUBORN COUNCIL
HOUSE RESOURCES CONSERVATION AND REINVESTMENT
BODY:
TESTIMONY TO THE HOUSE COMMITTEE ON RESOURCES
U.S. House of Representatives Concerning H.R. 701 AND H.R. 798. Submitted by
BARRY KOHL, LOUISIANA AUDUBON COUNCIL at Field Hearing Held in New Orleans, LA
May 3, 1999 Mr. Chairman and Members of the Committee: My name is Barry Kohl and
I am a director and a past president of the Louisiana Audubon Council. On behalf
of the Council, I would like to express our appreciation to the Committee and
Chairman Young for inviting us to come here today. The Louisiana Audubon Council
is a not-for-profit organization comprised of local Audubon chapters, affiliates
and members of the National Audubon Society. We are dedicated to the protection
and restoration of Louisiana's coastal wetlands, bottomland hardwood forests and
other critical wildlife habitats of the Lower Mississippi River. We are pleased
that the proposals now before this Committee and before the Senate will invest
in the management of this nation's natural resources and address the coastal
impacts of the production of OCS oil and gas. We also want to thank the
Louisiana Congressional delegation for co- sponsoring the Young Bill, HR 701.
Certainly we interpret this action as an affirmation that our delegation
recognizes the far-reaching adverse impacts of the oil and gas industry on our
state's waters, coastal zone, public lands and wildlife. We hope that members of
this committee will have the opportunity to fly over our coastal zone to see the
damage for themselves. Louisiana has historically had the greatest environmental
impacts from the exploration for oil and gas of any coastal state. Presently,
the bulk of OCS oil and gas revenues come from the area off Louisiana's coast.
We therefore believe that any bill which is to offset states for environmental
losses should include, proportionally within its allocation formula, the
historical environmental losses inflicted on each state. I want to begin my
presentation by discussing the direct and indirect impacts to Louisiana's
Coastal Zone from oil and gas exploration and production. Oil and Gas Impacts on
the Coastal Zone: The first well drilled in a Louisiana coastal Parish was in
1901. By 1941, over 18,800 wells had been drilled in the coastal marshes. By
1993, 32,000 oil and gas wells existed in coastal wetlands and there were 790
oil and gas fields. Many companies which explored in our swamps and marshes in
the first half of this century moved offshore into OCS waters after 1947.
According to the MMS, there are now 35,632 boreholes in the Gulf of Mexico OCS.
Nearly 85% of these were drilled off Louisiana's coast. There are 3,973
producing platforms and 87% of these are in OCS waters off Louisiana. These
platforms producing the bulk of the OCS oil and gas nationwide. Navigation,
pipeline and access canals: As of February 1998, 358 pipelines cross the
federal/state line from the OCS. There are more than 21,000 miles of pipelines
in federal offshore waters and thousands more inland criss-crossing our coastal
zone. Many of these lie in dredged canals and continue to alter coastal
hydrology. There are, additionally, thousands of oil and gas dredged canals
onshore to access drill sites. Navigation canals authorized by Congress and
dredged by the U.S. Army Corps of Engineers have added to coastal loss by
introducing saltwater intrusion and secondary impacts. These navigation projects
are used primarily by the oil, gas and chemical industries for transportation of
commodities or for servicing the offshore oil industry. Though we all benefit
from the oil and gas industry, there can be no doubt it has been at the expense
of our coastal environments. Infrastructure impacts: There are 21 supply bases
in coastal parishes which support OCS activities. one base, Port Fourchon, has
converted almost 2,600 acres of coastal wetlands to industrial use. Residential
expansion is following this development. I need not remind the committee that
this is a hurricane prone area. Because of the demand for larger and larger
production facilities, fabrication yards have been sited near major waterways
along the Louisiana coast. Thousands of acres of wetlands have been cleared near
Houma and Morgan City to build the giant offshore structures used in the deep
water OCS. Toxic Chemicals: According to the most recent EPA Toxic Release
Inventory report, Louisiana is the nation's second largest polluter after Texas.
Most of this pollution is tied to the petrochemical industry. Chemical pollution
along the Mississippi River is so serious that nationally the section between
Baton Rouge and New Orleans has become known as "cancer alley.,, Toxic releases
from petrochemical industries pollute our land, water and air. The Chlor-alkali
industry, which produces caustic soda and chlorine gas from brine, is emitting
two tons of mercury into our state's air each year. Two plants are still using
archaic mercury-cell technology which contributes to the pollution of our
streams and lakes. One of these sites has been polluting continuously since
1945! There are presently 17 state mercury-in-fish health advisories for
pregnant women and children under 7 yrs of age as a result of past and current
mercury pollution. The Audubon Council is actively investigating the sources of
this pollution. EPA has designated the Calcasieu Estuary, in southwestern
Louisiana, as one of the state's most contaminated waterbodies. Saltwater
intrusion from the Calcasieu Ship Channel is causing additional habitat
destruction. Drilling wastes: Because oil drilling wastes cannot be discharged
offshore they are transported to onshore areas for disposal in open pits. In
Louisiana, these disposal areas are mostly located in wetlands which are prone
to hurricane tidal flooding. Leakage from these sites has allegedly caused
health problems for nearby residents. Permitting: The protection afforded by the
Clean Water Act has only affected oil and gas dredging since 1975. And this was
largely due to numerous lawsuits which increased the Corps, jurisdiction. Before
that date, there were few controls on dredging our marshes and swamps. But
during the 1980's dredging permits issued to the energy industry were
"fast-tracked" because of "national priorities". Public notice comment periods
were reduced to 15 days giving the public and resource agencies insufficient
review time. Today's method of reducing the effectiveness of the federal
permitting program is to cut the budgets of regulatory agencies. A District
Engineer recently wrote that, "the regulatory branch is deliberately underfunded
each year as part of the grand game of give and take between private interests
and public oversight." Political influence is derailing the intent of Clean
Water Act and promoting the conversion of wetlands in Louisiana. This has to
change. In the 1980's the federal government considered setting up formal
"National Sacrifice Zones" which would be used for national defense or nuclear
waste repositories. The concept remains in fact, if not in name, and we believe
that Louisiana has become one of these areas. Sharing in Coastal Impact
Assistance Funds: There is no doubt that the Louisiana environment has
paid dearly to provide the energy for the rest of the nation for almost 100
years. If any state needs Coastal Impact Assistance, it is
Louisiana. Presently the bulk of all OCS revenues come from the Central OCS Sale
area off the coast of our state. We believe the revenues generated by the
federal government from OCS leases and royalties should be shared by coastal
states. The money should be allocated to the states based on the present OCS
production and the known impacts to the states, coastal zone. Because of the 50
yrs of impacts from offshore oil and gas exploration and production, Louisiana
deserves a significant portion of these OCS revenues. Comments on the Proposed
Legislation: In Addressing the bills before the committee today I would like to
say that the Audubon Council is pleased that there is a wildlife habitat
preservation component. To the migratory waterfowl and neotropical birds which
depend on hardwoods and wetlands for their survival, the Mississippi flyway and
the Mississippi Delta are an international resource. We do ask that the bills be
strengthened as follows: Wildlife Conservation and Restoration: We are concerned
that HR 701 fails to ensure that federal funds provided to the states under
Title III will be used to address the needs of non-game species. None of the
bills provide money for non-game species/habitat. Traditionally, 95 percent of
the money spent on wildlife conservation has gone to wildlife that is hunted and
fished. This funding disparity must be addressed. The Audubon Council has worked
hard over the years to assure that non- game species in Louisiana are properly
protected. Any new money made available for state-level wildlife conservation
should be substantially dedicated to non-game species. Land and Water
Conservation Fund: The Audubon Council requests that the Land and Water
Conservation Fund (LWCF) be fully funded from OCS revenues. The money made
available to the LWCF each year must be available on a permanent basis and
independent of the annual appropriations process. The LWCF should receive a
minimum of $900 million each year. At least half of this money should be
allocated to federal land acquisition, with the remainder going to the stateside
matching grant program. Further land purchases with LWCF funds should not be
restricted to in-holdings and should be available on all current and future
National Wildlife Refuges. The Need For Oversight: We are concerned that under
HR 701 there is not effective federal oversight over the spending of billions of
dollars each year by the states. Based on our experience in Louisiana it would
be unwise to give money to the states without some accountability. We have seen
the new partnership between state and federal agencies in Louisiana as part of
the CWPPRA and Coastal 2050 planning process. we would like to see a similar
partnership with federal agencies having input on the use of OCS funds for land
acquisition or any other conservation purposes. We ask that there be a strong
public component to any planning/task force. Potential Abuse: Money given to
local political subdivisions needs to be closely monitored. Louisiana's
reputation for corruption is founded on fact. Local sheriffs and assessors
consider their parishes to be their personal fiefdoms. We are deeply concerned
that 50% of the state's allocable share of OCS funds would be misappropriated or
squandered by Parish officials. We are opposed to the provision under Section
104 of HR 701 which would allow states and local governments to use the money
for a vast array of purposes, including promoting highway construction, golf
courses, drainage and levees, and other non-conservation uses. The money should
be used primarily to restore and enhance coastal and ocean resources, rather
than to further environmental degradation. We suggest that, since the OCS
revenues will decline over the next 10 years, the revenues given to the states
should be placed state trust funds to preserve some of the money for the long
term. This would also assure a more prudent expenditure of the windfall. New
Programs: Any new program should build on existing watershed, coastal management
plans, or restoration plans that are already in existence. Considerable time and
money have been spent under a multitude of authorities such as the Coastal Zone
Management Act, the National Estuary Program, the Coastal Wetlands Planning,
Protection and Restoration Act (CWPPRA), and others to produce strategies and
plans for improving coastal resources and waters. It is sensible that the
planning provisions of any new OCS legislation should build on planning that has
already been done rather than begin anew. Allocation Formula: Under HR 701, 50%
of the Title I funds are allocated to the coastal states on proximity to OCS
production. The remainder will be distributed by population (25%) and length of
shoreline (25%). We ask that there be a new allocation formula, one that
includes as a major factor, the historic oil and gas activities which have
degraded or destroyed the coastal environments. This is only fair. Neither HR
701 or HR 798 factor in the historic impacts. Louisiana has paid dearly by
allowing the degradation of its coastal ecosystems to maintain the national
energy supply. Are we to continue to be a "national sacrifice zone?" When the
non- renewable OCS resources are gone, how will the damage be reversed? In
considering the bills that are the subject of this hearing, this Committee and
this Congress are undertaking the admirable task of determining how best to
invest in the future of our invaluable natural heritage--our waters and coasts,
our wildlife, and our public lands. Both bills, even with their differences,
represent an important step forward in the stewardship of those resources and we
commend their authors and sponsors for taking up this challenge. Summary: We
urge that in any final bill the following recommendations be considered: That
past coastal impacts be used in the formula to allocate coastal impact funds.
That there be oversight of local government spending and the creation of a
Coastal impact Trust Fund for each state. Money given to the states and local
governments should not stimulate more destruction of coastal environments. There
should not be incentives to convert wetlands to developments even though they
are for recreation. Money made available for the LWCF must be permanent and
independent of the appropriation process. Any new money made available for
state-level wildlife conservation should be dedicated equally to non-game/ game
species. All oil and gas impacts should be fully addressed in any mitigation
program. Toxic wastes present an insidious wildlife/human health problem.
Cleaning up contaminated waterbodies and reduction of toxic petrochemical
discharges should be supported in any future bill. Some funding should be used
to expand the National Wildlife Refuges. Mr. Chairman, we believe that all the
bills addressing the issues discussed today have merit. we just need to refine
the language and reconcile the differences between them. I would like to
conclude with this thought. Since Louisiana has suffered the most coastal
environmental damage as a result of oil and gas exploration and development and
since the majority of the OCS revenues come from leases off the Louisiana coast
it is only fair that Louisiana should be given more consideration in sharing
these coastal impact funds. Thank you
LOAD-DATE: May
11, 1999 
