Pelosi eyes changes to 'use it or lose it' bill PDF Print E-mail
Written by BEN GEMAN, E&E Daily   
Wednesday, 16 July 2008
House Speaker Nancy Pelosi (D-Calif.) is eying changes to a bill coming to the floor tomorrow that pressures oil companies to develop nonproducing federal leases, following requests from Democrats representing oil-and-gas producing states.

Rep. Gene Green (D-Texas) said members of what he calls "Energy Democrats" met with Pelosi yesterday afternoon to discuss energy issues including the bill, H.R. 6251. "We talked about some of the stuff that we would like to do, and to try and make what they want to do workable," Green said.

Drew Hammill, a spokesman for Pelosi, said in an e-mail that the bill may be altered. "The Speaker was very receptive to these suggestions and we're working with Chairman Rahall to see what changes can be made," he said, but did not provide details of potential alterations. Natural Resources Chairman Nick Rahall (D-W.Va.) is the bill's lead sponsor.

Green is among the 19 Democrats who opposed the bill -- dubbed "use it or lose it" -- when it was turned back in late June under expedited rules that required a two-thirds vote for passage. The vote was 223-195. Democratic leaders plan to bring up the bill under suspension of the rules again tomorrow, as part of a package that would also speed up development in the National Petroleum Reserve-Alaska and impose a ban on the export of Alaskan oil.

The main feature of the "use it or lose it" bill holds that companies cannot obtain new federal leases unless they are producing from their current leases, "diligently" developing them, or relinquish them.

Green said the bill should set more parameters on how the Interior Department would define "diligent" efforts to develop leases. He wants to ensure Interior considers the time it takes to get scarce drilling rigs, obtain seismographic data and other aspects of the development process.

"I want to make sure when they say due diligence, it is just not used to stop people from leasing," Green told E&E Daily yesterday, adding "I just don't want the Department of Interior to run rampant on making it real difficult."

Other members who attended the meeting requested by the speaker include Reps. Dan Boren (D-Okla.), Jim Matheson (D-Utah) and Nick Lampson (D-Texas), Green said.

Pelosi and other Democratic leaders say they favor increasing domestic oil production but argue that oil companies have dawdled in developing millions of acres of leases they already have. Green is among the members who want to relax coastal leasing bans, which Democratic leaders oppose.

Bingaman presses Kempthorne on existing leases

Across the Capitol, Sen. Jeff Bingaman (D-N.M.) and 30 other Democrats are pressing Interior Secretary Dirk Kempthorne to take more steps to prod companies to produce on their current federal leases.

A letter to Kempthorne from Bingaman, who chairs the Energy and Natural Resources Committee, and other senators says there are more than 60 million acres that are leased but not producing.

"It appears that the policy emphasis of this administration has been on having more lease sales, but we believe not enough emphasis has been placed on encouraging the diligent development of federal lands once leased," the letter states.

While leases already must be produced within certain time frames, "we are concerned that federal agencies are not exercising their substantial discretion in managing these leases to require production in the timeliest fashion," the senators added.

The letter calls on Kempthorne to take several steps, such as clarifying that oil and gas companies are required to diligently develop leases, and requiring companies to provide regular reports on this development, among other actions.

Click here to read the letter.

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Last Updated ( Wednesday, 16 July 2008 )
 

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