Copyright 1999 Federal Document Clearing House, Inc.
Federal Document Clearing House Congressional Testimony
January 27, 1999, Wednesday
SECTION: CAPITOL HILL HEARING TESTIMONY
LENGTH: 998 words
HEADLINE:
TESTIMONY January 27, 1999 FRANK MURKOWSKI SENATOR SENATE
ENERGY & NATURAL RESOURCES AID TO OFFSET EFFECTS OF COASTAL OIL AND GAS
DRILLING
BODY:
Opening Statement Chairman Frank
Murkowski Committee on Energy & Natural Resources Oversight Hearing on the
Impacts of Offshore Activities on Coastal States and Communities January 27,
1999 Welcome to the first Energy and Natural Resources Committee hearing of this
new Congress. We will hear testimony today from those most affected by offshore
oil and gas production -- States and communities who share their coasts for the
national interest of domestic energy production and jobs. There will be a number
of future hearings to examine, in depth, the three titles of the bill Senator
Landrieu and I introduced to provide coastal impact assistance.
Further, we want to promptly hold a hearing to accommodate those states that
currently have moratoria on OCS development. Federal OCS production is
authorized to occur off the coast of 6 states: Texas, Alabama, Mississippi,
Louisiana, a part of California and parts of Alaska though there is no
significant protection off of Alaska at this time. Our witnesses today represent
3 of the Gulf Coast states and Alaska. They know, first-hand, the mixed
blessings of federal OCS energy programs and can add to our knowledge of how
offshore oil and gas production impacts those closest to it. If oil and gas are
discovered on Federal lands in Wyoming, the revenues from that discovery are
split 50-50 with Wyoming. Those rules do not apply if the oil and gas are
discovered on Federal submerged lands on the Outer Continental Shelf. In Fiscal
Year 1997, the Federal OCS leasing program generated $4.1 billion in rents and
royalties - none of these funds were shared with the States which host this
development and underwrite the impacts. All of the money goes to the Federal
treasury. This is not fair. It also is important to note the role of Federal OCS
production in meeting our energy demands. America imports more 56 percent of our
domestic petroleum requirements. DOE predicts that, in the next 10 years,
America will be at least 64 percent dependent on foreign oil OCS development
will play an important role in offsetting even greater dependence on foreign
energy. The OCS accounts for: - 14% of oil production - 24% of our gas
production Unlike foreign oil on foreign tankers, this energy is homegrown and
contributes directly to our national wealth. Produces good jobs in these
industries and contributes to the balance of payments. Technological
advancements have and will continue to result in new OCS production having an
unparalleled record of excellence on environmental and safety issues. Hence, we
need to maintain a healthy OCS leasing program. Today's hearing occurs against
the backdrop of S. 25 legislation introduced by a bipartisan group of 11
Senators. Other cosponsors include: - Landrieu, Lott, Sessions, Breaux, Cleland,
Lott, Johnson, Gregg, Mikulski, and Cochran Our bill would remedy the current
inequity by redistributing 50% of the OCS revenues for three programs: -
coastal impact assistance; - state and local park and
recreation programs; and - state wildlife programs The other 50% remains in the
Federal treasury. S. 25 allocates 27% of the OCS revenues to coastal states and
communities that shoulder the responsibility of offshore oil and gas development
off their coastlines. Funds will be used for a variety of coastal, environmental
and infrastructure purposes. Our bill acknowledges that all
coastal states have unique needs and provides coastal
impact assistance to 34 coastal states -- even those
states which prohibit oil and gas activity off their coasts. The bill also takes
a portion of the revenues and invests them in conservation and wildlife programs
in all 50 states - 16% of the revenues would go to fund the Land and Water
Conservation Fund for state and local park and recreation facilities; - 7% of
the revenues would be used for state fish and wildlife programs. These programs
recognize that a portion of the revenues earned from the depletion of a
nonrenewable resource should be reinvested in renewable resources - the park,
recreation and conservation systems which all Americans enjoy. Importantly, the
expenditure of this money throughout the bill rests with local communities not
with the Federal government. Local communities will figure out what renewable
resources need to be conserved and enhanced for the benefit of their residents
-- not the Federal government. One provision of concern is the protection of
private property. The bill provides money for Federal land acquisition
approximately $350 million based on OCS revenues of $4.1 billion in 1997.
Throughout the western states in Federal conservation units, there are private
property holders being held in limbo wanting to sell their land because their
land use and access is curtailed by Federal regulations but no Federal money has
been provided to make these owners whole. At the same time, there are other
inholders who do not want to sell. The bill tries to reach a balance between
these competing interests: - only Federal purchases would be those within land
management units authorized by the Act of Congress; - none of the funds could be
used to condemn property; - 2/3 rds of the money would have to be spent east of
the 100th meridian which runs from Texas north through the Great Plains; and -
acquisitions greater than $5 million would require House and Senate authorizing
and appropriating committees. No bill of this magnitude is perfect - it can, and
will be, improved as it works its way through the Committee. Our witnesses can
tell us the impacts of OCS oil and gas activity in their backyards of their
communities? - on their schools? on their emergency response teams and all types
of infrastructure services. Representatives of state and local governments hear
first when something goes wrong, whether real or perceived. So after hearing
opening statements from our members, we will look forward to hearing from our
distinguished roster of witnesses.
LOAD-DATE: January
28, 1999 
