Delahunt Urges Bil Oil To "Fish Or Cut Bait" On Unused Federal Oil Leases

06/18/2008

WASHINGTON, DC – With pressure building to open up the Outer Continental Shelf and the Arctic National Wildlife Refuge, U.S. Rep Bill Delahunt is joining a national effort to compel oil and gas companies to develop energy on the 68 million acres of oil and gas leases on federal  lands – currently unused and sitting idle.

“It is time for the oil companies to either “fish or cut bait” on the thousands of energy leases they are currently stockpiling,” Delahunt said today.  “They should develop energy in these other areas first instead of sacrificing our oceans and the Arctic National Wildlife Refuge.”  

Delahunt announced today he is co-sponsoring, “The Responsible Federal Oil and Gas Lease Act of 2008” (H.R. 6251), authored by U.S. Rep Nick Rahall (D-WV) Chairman of the House Natural Resources Committee.  The legislation was introduced last week in direct response to the facts outlined in the Committee report, "The Truth About America's Energy: Big Oil Stockpiles Supplies and Pockets Profits.” To read a copy of the report click here.

The report concludes that energy companies are not using thousands of leases on federal lands and waters  for oil and gas drilling.  The leases represent 68 million acres of federal lands and waters and have the potential to produce an additional 4.8 million barrels of oil and 44.7 billion cubic feet of natural gas each day.  This amount of energy would nearly double total U.S. oil production, and increase natural gas production by 75 percent.  It would also cut U.S. oil imports by more than one-third, reducing America's dependency on foreign oil.

The legislation would force oil and gas companies to either produce energy or give up their federal leases by barring the companies from obtaining any more leases unless they can demonstrate that they are diligently developing the leases they already hold, during the initial term of the leases.

Coal companies are issued leases for 20-year terms and are already required, as a result of the Federal Coal Leasing Amendments Act of 1976, to show that they are diligently developing their leases for energy production during their initial (lease) term.  The law was enacted in an effort to end rampant speculation on federal coal as a result of the energy crises of the 1970's.  Oil and gas companies have been allowed to stockpile leases in a non-producing status, leaving millions of acres of leased land untouched.  This legislation would end the practice of stockpiling leases.

Companies could avoid this new lease prohibition by relinquishing their non-producing leases, thus creating an opportunity for another company to explore for and perhaps produce oil and gas.

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