Dem Senators of Most Affected Constituencies Against Oil Bill

Senator Harry Reid today Wednesday, August 4^th, announced he will not hold two test votes on his proposed energy and oil spill bills. The proposed 409 page bill is S.3663, otherwise known as the CLEAR (Consolidated Land, Energy & Aquatic Resource Act) or Offshore Drilling Regulation bill. The House last week passed HR 3534 and HR 2693. The Republicans have proposed a separate bill S.3643. Both bills can be read on www.thomas.gov.

Regarding unlimited liability for offshore drilling Democratic Senator Mary Landrieu (Louisiana) said: “I wish that somebody would focus on helping the Gulf Coast instead of their focus on destroying an industry and not caring about the consequences of unlimited caps.” She will not support S.3663.

This is a major oil and gas industry bill which will increase taxes, revenues, and fees substantially on the offshore and onshore oil and gas industry. It will increase federal regulations on offshore industry covering federal leasing, exploration, drilling, and production. The proposed increased taxes will apply to US offshore oil companies, not foreign companies.

Senator Reid will not bring both bills up for cloture votes this week. At the cloture vote it would take 60 votes to move forward. Senator Landrieu correctly noted “I don’t think the bill is going anywhere, but when we come back, cooler heads will prevail and we’ll figure out a way not to destroy an industry that America needs and the world needs.”

There is also language to control the hydraulic fracturing, which could have a major impact upon Shale oil and gas development.

Reid commented “several Republicans said they need more time to consider our bill,” and he hopes delaying the debate will lead them to support the measure later this year. The reality is that Democratic Senators from offshore oil producing states are strongly against the bill. It must be noted the comparable adverse offshore oil industry bill passed the Democratically controlled House last week. The Senate recesses this Friday, August 5^th, and returns September 14^th.