US House Votes to Streamline Clean-Air Permits for Oil-Drilling Projects

- US House Votes to Streamline Clean-Air Permits for Oil-Drilling Projects

Thursday, June 23, 2011
Dow Jones Newswires
WASHINGTON
by Tennille Tracy

The House of Representatives voted Wednesday to streamline the issuance of clean-air permits for offshore oil-drilling projects, representing another attempt by Republicans to pressure the Obama administration into speeding up domestic oil production.

The bill passed Wednesday night by a vote of 253-166, with votes falling largely along party lines. A majority of Democrats voted against the measure, saying it would strip regulators of their ability to determine whether drilling projects pollute the air and pose a risk to human health.

The bill is unlikely to pass the Senate, where Democrats hold control.

Introduced by Rep. Cory Gardner (R., Colo.), the bill seeks to resolve challenges faced by Royal Dutch Shell (RDSA, RDSA.LN) as it sought, and continues to seek, clean-air permits for drilling projects off the coast of Alaska.

Specifically, the bill requires the U.S. Environmental Protection Agency to either approve or deny clean-air permits within six months of receiving an application. It also requires opponents of the permits to file objections in a federal court, as opposed to a less-formal appeals board that is currently available to them.

Before passing the bill, the Republican-led House voted down 10 amendments offered by Democrats, many of whom were looking to overturn various segments of the underlying bill.

On Tuesday, the Obama administration came out against the bill and said it "could result in increased air pollution from [outer continental shelf] sources" and would "deprive citizens of an important avenue for challenging government action."

Wednesday's votes marks at least the fourth time this year that House Republicans have passed legislation aimed at expediting or expanding domestic oil production. With oil prices above $90 a barrel, Republicans have accused the Obama administration of discouraging oil production and have presented themselves as the party that would boost domestic drilling to bring down prices at the pump.

In May, the House passed a bill that forced the Interior Department to make decisions on offshore drilling permits within 30 days of receiving an application.

The bill that was passed Wednesday was developed in response to challenges faced by Shell in obtaining clean-air permits for exploratory drilling in the Beaufort and Chukchi seas. The company invested over $3 billion to prepare for the drilling, but regulatory hurdles and other challenges has prevented the company from moving forward.

In May, EPA assistant administrator for air and radiation Gina McCarthy said her agency was "very close" to granting three permits to Shell. Earlier, Shell executives had met with senior EPA officials and President Obama's top energy aides about the matter.

Wednesday's vote won the praise of the pro-business group Chamber of Commerce. By imposing deadlines on the EPA, the bill provides "companies a predictable approval timeline, rather than a costly stream of seemingly arbitrary delays," the chamber's executive vice president for government affairs, Bruce Josten, said in a letter to House lawmakers.

Copyright (c) 2011 Dow Jones & Company, Inc.

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House Panel Votes to Force More Oil Leases in U.S. Waters

House Panel Votes to Force More Oil Leases in U.S. Waters

Thursday, April 14, 2011
Dow Jones Newswires
by Ryan Tracy

A bill requiring the U.S. to open areas off the Virginia coast and in the Gulf of Mexico to oil and gas exploration cleared a key hurdle in the U.S. House Wednesday. The House Natural Resources Committee voted to approve the leasing measure, paving the way for a vote by the full House next month. Earlier Wednesday, the committee also voted to establish a 60-day maximum for the Interior Department to approve or deny offshore drilling permits. If Interior took longer, the permit would be deemed approved.

The bills are part of an effort by House Republicans to support domestic oil and gas production, which they have stepped up in recent months in the face of rising gasoline prices. Democrats have pushed back, saying that Congress should focus on providing incentives for non-traditional energy sources and reducing energy consumption.

All but two Democrats voted against the bills on offshore leasing. The bills' prospects are less certain in the Senate, where Democrats hold a majority.

One proposal approved Wednesday would override a decision last year from the Obama administration not to open the U.S. Atlantic Coast to offshore drilling. It directs the Interior Department to lease areas off the Virginia coast within one year after the bill becomes law.

The bills would also direct Interior to move forward with three new leases in the Gulf, declaring previous environmental reviews of those areas to be sufficient. The administration has delayed its Gulf leasing plans and is conducting new environmental reviews following the Deepwater Horizon disaster nearly one year ago.

"What we're attempting to do is provide some certainty to those who would give us American-made energy," said Rep. Doc Hastings (R., Wash.), chairman of the Natural Resources Committee, and a main sponsor of the bills.

During debate on the proposals, Rep. Rush Holt (D., N.J.) argued that Interior shouldn't move forward with new leases without a new environmental analysis based on lessons learned from the Deepwater Horizon. He said previous reviews had been "very clearly and woefully flawed." Rep. Doug Lamborn (R., Colo.) countered that further environmental reviews would take place as companies apply for permission to explore and drill new wells. Hastings noted that the legislation approved Wednesday requires Interior to conduct a safety review for each drilling permit. Still, Democrats criticized their counterparts for not taking up a bill that would implement recommendations of a presidential commission that studied last year's oil spill. Congress hasn't yet sent the president a bill in response to the disaster, which began with the explosion on a rig leased by BP on April 20.

A proposal to add safety regulations to the House bills, offered Wednesday by Rep. Ed Markey (D., Mass.), was voted down by the Republican majority. "This amendment would micromanage and dictate thorough safety standards" that should be established by the Interior Department, Lamborn said. The majority also rejected a host of proposals from lawmakers in coastal states designed to restrict exploration in the Pacific and Atlantic Oceans.

The legislation would also extend by one year leases impacted by the Obama administration's moratorium on drilling after the Deepwater Horizon disaster. The provision would apply to wells that weren't producing before April 30. It was added to the bill Wednesday in an amendment offered by Rep. Bill Flores (R., Texas).

Lawmakers briefly considered inserting a provision to require oil and natural gas facilities to use only equipment and materials produced in the U.S, but Rep. John Garamendi (D., Calif.) withdrew the amendment after other lawmakers said it was too inflexible. Some Republicans seemed open to the concept, however, and Garamendi said he might offer a different version at a later date.

Also Wednesday, the committee voted to require Interior to open up more resource-rich areas to exploration as part of its next five-year leasing plan. The full Republican-controlled House is expected vote on the bills next month.