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Dear Friend,
The devastating oil spill in the Gulf of Mexico is a tragic reminder of the inherent safety, environmental, and economic risks associated with offshore drilling. Offshore drilling operations, no matter how technologically advanced, can never completely eliminate the risk of a major disaster; but it is incumbent upon us to make sure these companies are taking every precaution to minimize the likelihood and the effects of a catastrophe like the BP Deep Horizon oil spill. That is why I recently voted to approve a major overhaul of our nation’s laws regarding offshore drilling oil and gas development, so that offshore drilling is only done when it can be transparent and safe. On Friday, July 30, 2010, the House of Representatives passed this reform bill (H.R. 3534) by a vote of 209-193. The measure has now been referred to the Senate for consideration.
H.R. 3524 would strengthen oil rig safety by requiring: independent certifications of critical equipment, demonstrations of the ability to respond to future blowouts or major spills, higher standards for rig inspectors and increased inspections, stiffer penalties for safety violations, and an end to the practice of waiving important environmental review of drilling plans. It would also ensure corporate responsibility by making oil companies pay their fair share in royalties for the right to drill on public lands or waters, and by eliminating the $75 million limit on corporate liability related to oil spills so that polluters are forced to clean up their messes, not taxpayers. Finally, H.R. 3524 reorganizes the federal agency charged with overseeing drilling permits and operations to prevent conflicts of interests between leasing, policing, and revenue collecting. Passage of this legislation represents a significant victory over the special interests that have for years defended the broken system of drilling regulation, one that placed a priority on corporate profit over safety and the public interest.
Holds Oil Company Executives Accountable
As we investigated the oil spill in the Natural Resources Committee and began to develop this legislation, I was particularly troubled by the glaring inaccuracies and misstatements made by BP in its so-called response plan. The plan listed a wildlife expert that had been deceased since 2005 and said that sensitive biological resources in the Gulf included walruses, sea otters, sea lions and seals, none of which actually live there. BP also stated that it could handle a worst case oil discharge scenario 10 times the size of the Deepwater Horizon disaster. They clearly did not take this important responsibility seriously. Even when these glaring inaccuracies were made public, no single official at BP was responsible for the plan.
I amended H.R. 3524 to make the CEO at each oil company directly responsible for certifying the safety and adequacy of their drilling and spill response plans. The CEO is then subject to civil penalties if he or she files a false certification or their company fails to develop or maintain the capabilities included in their response plans. This requirement and the potential penalties should result in self-correcting behavior, forcing CEOs to take this process seriously and making it significantly less likely that companies submit inferior or faulty plans. I believe that responsible CEOs will recognize this new requirement for what it is – a very basic standard that should be a best practice for responsible companies anyway. But for those who try to cut corners, this framework will certainly give them pause because there are real consequences for irresponsible behavior.
The Chesapeake Bay and National Energy Policies
The BP Deepwater Horizon disaster is a game changing event that should cause us to reevaluate our dependence on oil and offshore drilling. I was pleased that the Administration has since canceled plans to pursue offshore drilling off the coast of Virginia because the potential consequences of drilling near the Chesapeake Bay outweigh the potential benefits. The Virginia parcel that was considered is located on the outer continental shelf only 50 miles off the coast of the Eastern Shore of Virginia and near the mouth of the Chesapeake Bay. The Department of Defense had expressed concerns about drilling operations on 2.2 million acres of the parcel because of its impact on training operations and shipping channels. This would have left only 660,000 acres for potential drilling. The environmental and economic concerns about potential drilling accidents on this parcel remain unaddressed. The untold damage being done to Gulf of Mexico’s marine ecosystems, fishing and tourism industries, and local economy would wreak havoc on our region if a similar disaster occurred off the coast of Virginia. I am pleased that these plans are now off the table.
Regardless of where we drill, the United States does not have large enough oil reserves to be self-sustaining. Therefore, the slogan “drill everywhere” does not truly address our long-term dependence on foreign oil, a problem we cannot afford to pass on to future generations. It is more important than ever that America adopt an aggressive energy strategy – one that also addresses our national security and environmental interests. Just as growth in information technology was the force behind economic prosperity in the 1990’s, the development of green technology and green jobs will spur tremendous growth and offer long-term relief to the American economy by making us less dependent on energy from volatile areas of the world. For these reasons, it is imperative that we develop a new, comprehensive energy policy and I will continue to support reasonable measures that accomplish these goals.
Many of you have written to me on this issue and I truly appreciate your input. As this legislation makes its way to the Senate, please be assured of my continued efforts to put in place a framework for offshore drilling that makes sense for all Americans, not just the oil companies, and do not hesitate to contact me about other matters of importance to you in the future.
John P. Sarbanes
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