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REP. CALVERT CALLS ON SPEAKER PELOSI TO KEEP CALIFORNIA’S RIGHTS EQUAL TO OTHER COASTAL STATES
Rebecca RudmanFriday, September 12, 2008

REP. CALVERT CALLS ON SPEAKER PELOSI TO KEEP CALIFORNIA’S RIGHTS EQUAL TO OTHER COASTAL STATES

Current Offshore Energy Proposal Could Deny California’s Rights and Benefits

 WASHINGTON, D.C. September 11, 2008 - Today Rep. Calvert (R-CA), along with 16 of his Californian colleagues, sent a letter (attached) to Speaker Pelosi requesting that energy legislation lift the congressional moratorium on offshore energy exploration for all coastal states. 

 

“Americans support all-of-the-above energy solutions that includes expanding offshore energy exploration and yet Speaker Pelosi appears to be limiting California’s right to benefit from producing energy off our shores,” said Rep. Calvert.  “California has proven reserves that are readily available and Californians should always fight for the same rights and benefits as other coastal states.”

 

The letter reads:

 

“As fellow members of the California delegation, we have serious concerns about legislation that would either deny our state of rights that are being granted to other coastal states or deny our state a share of potential royalty revenues from energy production off our coast.  Furthermore, we fail to understand the logic of policies that appear to restrict opportunities and reduce the incentives for coastal states to produce energy and benefit from associated royalty revenues.

 

“The Outer Continental Shelf (OCS) off the California coast contains significant energy resources that can contribute greatly towards American energy independence.  According to the Minerals Management Service’s OCS Oil and Gas Assessment in 2006, there are an estimated 9.97 billion barrels of oil and an estimated 15.74 trillion cubic feet of natural gas off of the California coast.”

 

Rep. Calvert has introduced legislation, The MORE Act (H.R. 6529), that will allow states to receive 75% of the royalties for oil and natural gas production beyond 25 miles of the coastline and the U.S. Treasury would receive the remaining 25%.  If states elect to allow exploration and production within 25 miles of their coastline, then their share of the royalties would increase to 90%.  At 25 miles from the coast, no evidence of energy exploration is visible from the coast under any condition. 

 

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