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DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES APPROPRIATIONS ACT, 2002 -- (House of Representatives - June 21, 2001)

r. SCARBOROUGH. Mr. Chairman, I just wanted to give another point of reference to the gentleman from California (Mr. Thomas), who was talking about 100 miles or 200 miles from Waterloo to whatever. We are talking about 17 miles which will not get you

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from the United States capitol to the airport. Seventeen miles is what we are talking about, that will not even get you to Washington's airport at Dulles so you can fly home to California.

   Mr. DAVIS of Florida. Mr. Chairman, I yield myself such time as I may consume.

   Mr. Chairman, I would like to respond to some of the statements that were made. Let us go back to the facts. Nobody has questioned the statement of the gentleman from Florida (Mr. SCARBOROUGH) that this is 17 miles from the coast of Florida.

   Let us be perfectly clear. This is drilling for oil, crude oil, as well as gas; and there are 21 days of crude oil in Sale 181. If we raise fuel efficiency standards by 16 miles per hour, that achieves 10 times more result than proceeding with Sale 181.

   Mr. Chairman, with the exception of the gentleman from California (Mr. Thomas), every Member of Congress that told Florida that we should put our coastline at risk is from an oil-producing State, and they do not have to apologize for protecting jobs in their States. But our tourists do not wash up on their beaches, and we do not want their oil washing up on ours.

   Let me just further say, with respect to the gentleman from Texas (Mr. DELAY), if being against the risk of oil spills in Florida makes us radical by Texas' environmental standards , then we proudly wear that label.

   The point is, as the gentleman from Indiana (Mr. ROEMER) said, we need a balance here; and we support solutions to our energy problem. But let us have a thoughtful debate. Let us not engage in quick fixes at the expense of Floridians. We have suffered oil spills before. I saw one when I was a small child in Tampa Bay. I do not want my children or grandchildren to see that again.

   

[Time: 16:15]

   This is in Florida's waters. This is something we are entitled to protect. We can do better. Let us adopt this amendment. Let us slow this down for 6 months and find a balanced solution to the energy challenges that face our country and not do so at the expense of Florida and its coastline.

   The CHAIRMAN. The gentleman yields back the balance of his time.

   The gentleman from New Mexico (Mr. SKEEN) has 45 seconds remaining.

   Mr. SKEEN. Mr. Chairman, I yield such time as he may consume to the gentleman from Tennessee (Mr. WAMP).

   (Mr. WAMP asked and was given permission to revise and extend his remarks.)

   Mr. WAMP. Mr. Chairman, the entire Alabama delegation is on record supporting Sale 181. Unfortunately, the delegation is in Alabama with the President of the United States and will be unable to vote. I submit for the RECORD herewith the delegation letters in support of Sale 181.

   UNITED STATES SENATE,

   Washington, DC, April 9, 2001.
Hon. George W. Bush,
President of the United States, The White House, Washington, DC.

   DEAR PRESIDENT BUSH: We are writing to endorse the State of Alabama's strong support for Outer Continental Shelf (OCS) Lease Sale 181 scheduled for December 2001. H.J. Res. 13, as passed by the Alabama Legislature and signed by Governor Siegelman unequivocally recognizes the positive benefits of Sale 181. We agree with the Governor's stated position supporting the proposed sale so long as no blocks are leased within 15 miles of the Alabama coast and safety measures are ensured.

   We agree this sale is a crucial component of a strategy to develop new, diverse supplies of oil and natural gas to meet the ever-increasing energy demands of our nation's new economy. As production declines in the western and central portions of the Gulf of Mexico, there is a growing recognition of the need for the vast resources contained in this eastern segment of the Gulf. Importantly, all of Sale 181's tracts are outside the areas that are off-limits to exploration and production under the mandated federal moratorium area. The Gulf Of Mexico now provides about 24% of U.S. oil production and about 26% of U.S. natural gas production. The resources contained in this sale area are estimated to hold approximately 7.8 trillion cubic feet of gas and 1.9 billion barrels of oil.

   The oil and natural gas industry has been good for Alabama, providing fuel and employment, to thousands of our state's residents, contributing to our economy and depositing millions of dollars into our state's treasury. It is estimated the oil and gas industry spends over $50 million annually on Alabama and Mississippi products and services. State funds derived from lease agreements in the Gulf of Mexico are utilized to improve our environment and protect unique coastal and estuarine habitats. The successful and timely continuation of Sale 181 would only further enhance these benefits to our state.

   Alabama and the offshore industry have coexisted to the mutual benefit of both for decades. As you know, the oil and natural gas industry has an outstanding record for operating safety on the more than 3,800 offshore platform, which are subject to extremely rigorous environment standards . It is anticipated this excellent record will continue to improve as new technology allows the extraction of more oil and gas from wider areas using fewer wells and platform protecting seabeds and marine life.

   Like other Gulf of Mexico states, Alabama has a thriving and expanding tourism business. The oil and natural gas activities offshore have not discouraged visitors to our beaches and other recreational areas along our coast.

   We urge you to continue your support of responsible development of our domestic resources, including the Sale 181 area. Alabama is proud of our contribution to national energy security and economic growth through the prudent and environmentally sound development of our offshore energy resources.

   With kind regards, we are

   Sincerely,
Richard Shelby, U.S.S., Sonny Callahan, M.C., Spencer Bachus, M.C., Terry Everett, M.C., Bob Riley, M.C., Jeff Sessions, U.S.S., Robert Aderholt, M.C. Robert E. ``Bud'' Cramer, M.C., Earl Hilliard, M.C.

--

   PROPOSED LEASE SALE 181,

   DON SIEGELMAN, GOVERNOR,

   April 24, 2001.

   President Bush asked me to help with this proposed lease sale and I am pleased to lend my support as long as there are no blocks sold within 15 miles of the Alabama coast and safety measures are ensured. I believe this is in the country's and Alabama's best long-term interest. Because Alabama is an energy producing state, this proposed lease sale will help Alabama propel its economic development effort. It is my hope that this would help increase supply and reduce prices for consumers. At my request, we will meet with the Mineral Management Service on May 7th, to ensure that all safety measures are in place before moving forward with the lease sale. If I am satisfied that the necessary precautions are in place, I look forward to proceeding with proposed lease sale 181.

--

   DON SIEGELMAN, GOVERNOR,

   State of Alabama, January 24, 2001.

   DEAR MR. OYNES: With respect to your letter of December 1, 2000, concerning the draft environmental Impact Statement for proposed Eastern Gulf of Mexico Lease Sale 181, we offer the following comments.

   I am pleased the Minerals Management Service is not offering any blocks in proposed Lease Sale 181 within 15 miles of the Alabama coast. The Interior secretary's decision to delete blocks within 15 miles offshore Baldwin County in the eastern Gulf of Mexico serves to mitigate the concerns of Alabama's residents regarding visual impacts from new natural gas structures in the areas of Gulf Shores and Orange Beach. In the future, I will continue to oppose the leasing of any unleased blocks southward and within 15 miles of the Baldwin County coast. We recognize that new natural gas structures may be installed on currently leased federal blocks, and we support and appreciate MMS's efforts to work cooperatively with the industry and the state of Alabama to minimize the visual impacts of new natural gas structures offshore Baldwin County. I request that you continue to work with the Geological Survey/State Oil and Gas Board of Alabama to find realistic methods for addressing this viewshed issue.

   As you are aware, the state of Alabama consistently has supported protection for live bottoms, pinnacle reefs, chemosynthetic communities and other sensitive environments of offshore Alabama in the Central Gulf of Mexico Planning Area. We certainly support these same types of protection for Lease Sale 181 in the Eastern Gulf of Mexico Planning Area.

   We continue to support MMS's nonenergy minerals program. It is important that MMS continue to gather geological and environmental information regarding Outer Continental Shelf sand resources that may be required for coastal erosion management. We appreciate MMS's interaction with the state of Alabama to identify these resources which may have both short- and long-term utility.

   We have concerns regarding statements on page IV-128 of the DEIS which indicate that coastal Alabama has the highest probability of contact if a large offshore spill occurred in the area for proposed Lease Sale 181. In addition, we have concerns regarding the number of new pipeline landfalls (page IV-221), new gas processing plants (page IV-238), new oil pipeline shore facilities (page IV-238), and adverse impacts to air quality (page IV-287). These matters are of particular concern, given that the vast majority of blocks available for lease in proposed Lease Sale 181 are located offshore Florida. It would appear

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that the coastal Alabama area could be significantly impacted by OCS activities occurring offshore Florida as a result of the proposed sale. I request that MMS meet with representatives of the Geological Survey/State Oil and Gas Board of Alabama and discuss all of these matters in detail in the near future.

   The state of Alabama supports a balanced and reasonable Outer Continental Shelf (OCS) leasing program that leads to exploration, development and production, with the stipulation that all OCS activities be carried out in full compliance with relevant Alabama laws, rules, and regulations, and be consistent with our Coastal Zone Management Program.

   We appreciate the opportunity to comment on the Draft Environmental Impact Statement for proposed Eastern Gulf of Mexico Lease Sale 181 and look forward to working cooperatively with MMS in the successful and safe development of the hydrocarbon resources located offshore Alabama and in sharing in the benefits of OCS leasing and production activities.

   Sincerely,
Don Siegelman, Governor.

   House Joint Resolution

   Whereas, Alabama annual natural gas production from onshore and offshore wells, combined, is 433 billion cubic feet, of which 217 billion cubic feet come from offshore wells; and

   Whereas, Alabama Gulf Coast and Dauphin Island tourism economy co-exist in harmony through mutual use of Alabama's natural resources with Alabama offshore natural gas production operations; and

   Whereas, Alabama's recreational fishing and commercial fishing industry co-exist in harmony through mutual use of Alabama's natural resources with Alabama offshore natural gas production operations; and

   Whereas, Alabama benefits from offshore natural gas operations in many ways, including, but not limited to, local and state revenues from severance taxes, and state revenues from Trust Fund interest, including royalty state payments, federal 8(g) royalties, and lease sale proceeds; and

   Whereas, Alabama jobs, income taxes, and other positive economic benefits have been created by Alabama's offshore natural gas developments, including exploration and drilling, platform fabrication and installation, pipeline contracting and construction, onshore gas treatment plant construction, operation, and maintenance, and goods, services, and supplies purchased; and

   Whereas, Additional positive economic benefits related to Alabama offshore natural gas developments include direct effects such as direct purchases, indirect effects such as purchases by contractors and suppliers, and induced effects such as the re-circulation of wages, salaries, and profits; and

   Whereas, Alabama offshore natural gas developments and operations have performed in a safe and environmentally-sensitive manner, with benefits to Alabama citizens far outweighing any/all perceived risks; and

   Whereas, Alabama citizens and industries, and individual natural gas consumers and industries outside Alabama continue to use and need more clean-burning natural gas supplies; and

   Whereas, areas in the Eastern Gulf of Mexico Outer Continental Shelf (OCS) 25 miles and further south of Alabama's and Florida's coastlines represent a major prospect for drilling and producing future supplies of clean-burning natural gas; and

   Whereas, two eastern Gulf of Mexico Outer Continental Shelf (OCS) areas, specifically an area known as the Destin Dome and Federal Lease Sale 181 Area, if drilled in a safe and environmentally-sensitive manner, are predicted to hold large natural gas reserves; and

   Whereas, Coastal Alabama is the likely natural gas infrastructure area to take new reserves to market, increasing Alabama's economic benefits directly related to new natural gas production from the Eastern Gulf of Mexico; now therefore, be it

   Resolved by the legislature of Alabama, both houses thereof Concurring, That we express our support for natural gas drilling and development in the federal Outer Continental shelf (OCS) Eastern Gulf of Mexico areas of the Destin Dome and Federal Lease Sale 181 Area. Be it further

   Resolved, That copies of this resolution be sent to each member of Alabama's U.S. Congressional Delegation and to President Clinton, Secretary of Commerce William Daley, The Minerals Management Service, the National Oceanic and Atmospheric Administration, the Department of Energy, and the environmental Protection Agency.

   Mr. SKEEN. Mr. Chairman, I yield the balance of my time to the gentleman from Pennsylvania (Mr. PETERSON), a valued member of the Subcommittee on Interior.

   Mr. PETERSON of Pennsylvania. Mr. Chairman, I yield to the gentleman from California (Mr. Thomas).

   Mr. THOMAS. Mr. Chairman, I tell my friends briefly, in terms of a response, it is only 6 months, and the lines that are on the map are the lines that the Floridians agreed to. It is 100 miles from the Florida border, as agreed to by Florida's governor. So I understand my colleagues' concern, but as a matter of fact, what is going to be put in that pipeline? It is going to be some other State's gas. Come on.

   Mr. PETERSON of Pennsylvania. Reclaiming my time, Mr. Chairman, in conclusion, gas prices last year doubled. We have put a huge amount of electric generation on this year, all natural gas. Next year home heating natural gas costs could double again and our energy sensitive businesses are going to be priced right out of business.

   When my colleagues' seniors cannot afford to heat their homes next year, when they get the second year in a row with high natural gas prices, and look at any of the curves, the natural gas uses for electric generation exceeds any new gas coming out of the ground, My colleagues' seniors are going to be very angry with this decision.

   Mr. HOLT. Mr. Chairman, I would like to express my support for an amendment offered by my colleagues from Florida, Representatives DAVIS and SCARBOROUGH, to prohibit oil and gas exploration and development off the coast of Florida. The issue at hand is the sale of Lease Sale 181 in the Gulf of Mexico, although offshore drilling threatens all coastal communities, including those of New Jersey. We in New Jersey thought we had put to rest the idea of drilling off the New Jersey coast, but recently we have begun to wonder.

   Sale 181 contains 5.9 million acres of an offshore area in the Gulf, in water ranging from 108 to over 10,000 feet deep. The sale is scheduled for December, 2001. Although both the past administration and the present governor of Florida support a ban on oil and gas development within 100 miles of the coast of Florida, part of Sale 181 come to within 15 miles of the Alabama coast.

   I see this sale as a potential threat to the economy and environment of the gulf states. Although cleaner than in the past, oil and gas exploration cannot be done without threatening our natural resources, commercial fishing industries, tourism, and marine ecology. Nearly 90 percent of the reef fish resources of the Gulf of Mexico are caught on the West Florida Shelf. Oil and gas development would threaten the shallow, clean water marine communities found on the Florida outer continental shelf. Ecology and environment are central to the economy of Florida. Damage to the environment would threaten the tourism industry upon which much of their economy is based.

   Furthermore, there is no evidence that drilling in Lease 181 would have a significant impact on our energy supply. Increased conservation and efficiency would do more to meet our country's energy needs than drilling off of the coast of Florida, and the impact of conservation would be immediate with little environmental cost.

   I endorse this amendment as a strong message to Secretary Norton to maintain the moratorium on offshore drilling and not to sacrifice our marine ecosystem in an attempt to satisfy our energy demands. I strongly support this amendment to prohibit the sale of the Sale 181 area and I urge my colleagues, particularly those who represent coastal states, to join me.

   The CHAIRMAN. The question is on the amendment offered by the gentleman from Florida (Mr. DAVIS).

   The question was taken; and the Chairman announced that the noes appeared to have it.

   RECORDED VOTE

   Mr. DAVIS of Florida. Mr. Chairman, I demand a recorded vote.

   The CHAIRMAN. Pursuant to clause 6 of rule XVIII, further proceedings on the amendment offered by the gentleman from Florida (Mr. DAVIS) will be postponed.

   AMENDMENT OFFERED BY MR. INSLEE

   Mr. INSLEE. Mr. Chairman, I offer an amendment.

   The Clerk read as follows:

   Amendment offered by Mr. INSLEE:

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