Oil-state and centrist Democrats may unveil a compromise Tuesday designed to set a path forward on legislation responding to the Gulf of Mexico spill this year.

Sen. Mark Begich (D-Alaska) said Monday that it would address setting aside revenue from oil and gas production in federal waters for states with production off their coasts. It also seeks to end a stalemate over how much to increase the current $75 million liability limit oil companies face for offshore spills, and could alter the Obama administration’s temporary ban on deepwater drilling.

“We’ve crafted something I think might get us there,” Begich told reporters

EPA to Crack Down on Farm Dust

Monday August 2, 2010

OKLAHOMA CITY -- The U.S. Environmental Protection Agency is considering a crackdown on farm dust, so senators have signed a letter addressing their concerns on the possible regulations.

The letter dated July 23 to the EPA states, "If approved, would establish the most stringent and unparalleled regulation of dust in our nation's history." It further states, "We respect efforts for a clean and healthy environment, but not at the expense of common sense. These identified levels will be extremely burdensome for farmers and livestock producers to attain. Whether its livestock kicking up dust, soybeans being combined on a dry day in the fall, or driving a car down the gravel road, dust is a naturally occurring event."

Read the letter to EPA signed by 21 senators including Jim Inhofe and Tom Coburn

Many in the Oklahoma farming industry are opposed to the EPA's consideration. One farmer said the possible regulations are ridiculous.

"It's plain common sense

Democrat Energy Bill Would Hurt Oklahoma

Inhofe Exposes Democrats’ Late-Night, Secret Anti-Natural Gas Provision

Friday July 30, 2010

In a surprise, last-minute, late-night addition to the Democrats’ energy bill, Senate Majority Leader Harry Reid took the opportunity to include provisions explicitly targeting the use of hydraulic fracturing. Reid’s inclusion of the language comes despite the fact that the Senate has yet to hold a single committee hearing or markup this Congress on the issue of hydraulic fracturing. (For speculation on why Reid inserted the language, see here and here)

Senator Inhofe was the first to expose the Democrats’ attack on natural gas at a press conference Wednesday morning, pointing out that "if you do away with hydraulic fracturing, you do away with natural gas.” (See Tulsa World Coverage)

Senator Inhofe followed the press conference with a lengthy defense on the Senate Floor of hydraulic fracturing. Senator Inhofe noted:

Sen. Mary Landrieu (D-La.) is drawing up an oil spill liability proposal that she says could be a compromise on an issue that has polarized lawmakers.

But Democratic leaders may be unlikely to swap out liability language already in Majority Leader Harry Reid's (D-Nev.) energy package slated for floor debate next week.

Asked about the chances for Landrieu's proposal making it into the energy and spill package, Reid spokesman Jim Manley said, "I think we have our own bill."

END THE OBAMA JOBS MORATORIUM, PART 2

Thursday July 29, 2010

As we dig deeper into effects of the Obama jobs moratorium in the Gulf, we continue to find poignant examples of local officials and small businesses dedicated to overturning it. In their own words (see below), they are pleading with President Obama for the simple fact that their livelihoods are hanging in the balance. The website of the "Gulf Economic Survival Team," an ad hoc group formed by Louisiana's Lt. Gov. Scott Angelle, shows an impressive array of local opposition-which should be getting attention in the White House. But these voice are being ignored, as the Obama Gulf energy freeze continues to drive US energy producers overseas-and jobs and economic activity along with them. As the Houston Chronicle reported yesterday, "Baker Hughes, a Houston-based international oil-field services company, has moved 300 of its 2,100 Gulf employees overseas and is moving 25 percent of its assets." Their CEO, Chad Deaton, went on to suggest that if the Administration doesn't improve regulatory certainty in the Gulf that they could also move their research and development operations to Brazil or Singapore, places with a climate more suitable for investment.
TULSA - The U.S. Senate Democrats' proposed energy bill would raise federal taxes on Oklahoma crude oil more than 500 percent.

If the Senate bill, introduced late Tuesday, is approved, it would hike federal taxes from 8 cents a barrel to 49 cents a barrel. The Oklahoma tax on crude oil production is 7 percent of value.

While programs funded by the bill would include a new natural-gas vehicles program at the Department of Energy, the Oklahoma Independent Petroleum Association bashed the provisions designed to cover the cost of the legislation. The legislation is expected to run $15 billion. The natural gas vehicle programs in the bill are modeled on the Pickens Plan popularized by Holdenville native, Oklahoma State University graduate and current Dallas energy investor T. Boone Pickens.

Oklahoma is one of the nation's largest natural gas-producing states, and any efforts to increase the use of the fuel in the U.S. will benefit the state's economy and the nation's drive toward energy independence, said Mike Terry, OIPA president. The OIPA is the state's largest oil industry trade group, with more than 2,000 individual members and companies.
CQ: Reid's Energy Bill Revives Fight Over Hydraulic Fracturing - Sen. James M. Inhofe , R-Okla., said Wednesday that the decision to include the disclosure provisions was an attempt by fracking opponents to "do away" with the technique. "You do away with hydraulic fracturing, you do away with natural gas," Inhofe, the ranking Republican on the Environment and Public Works Committee, told reporters. He later noted that the EPA is conducting a study of the technique's effect on water quality and human health. The House Energy and Commerce Committee is also conducting its own review.
Mr. INHOFE. Mr. President, first, let me state that I have a great deal of respect for my friend from Ohio. I cannot agree, however, with the things this administration has done to pull us out of the recession. A lot of people believe the Federal Government can do that. I look at the institutions, and I say to the Chair, I have people who come into my office and it doesn't matter what industry they are in, they are all scared to death. It is a mentality that the Federal Government can take these things over and somehow make them better.

This administration is attacking every institution that made this country great right now. I don't care if you are in banking, insurance, health care, or the oil businesses--all of them are under attack. There is a myth out there that if the Federal Government takes it over, it will be run better than it would when run by the private sector. That is a prelude for the thoughts I want to share concerning what happened last night after 10 o'clock.

The majority leader, Senator Reid, came out with a type of energy bill, I suppose you could say. He has been talking about an energy bill for quite some time. What I have seen in the bill that is called an energy bill--I can't speak too specifically about it, because it didn't come out until late last night. But we know this: First, they start off by taking off any liability cap on drilling, whether it is in the gulf or elsewhere. That is my understanding.

The problem we have--and some of the people in this Chamber might remember that I had occasion to come to the floor and object to the Menendez request about four different times in the last month, because what he was attempting to do is what this bill is suggesting--take all liability caps off. If you do that, something happens that is bad. I hope that is not the intent of the authors of the bill that came out last night. But what you do by taking the cap off is you limit who is going to be able--once the moratorium is lifted--to drill offshore to the giants.
The author of legislation that would order public disclosure of hydraulic fracturing chemicals yesterday said she felt betrayed when some of the drillers she had been negotiating with publicly rejected her provision Tuesday.

"A lot of these companies want to say publicly 'We support disclosure.' But then they try to kill it behind the scenes," DeGette said. "This is something that is going to happen. I wish industry would work with us instead of talking out of both sides of their mouths."

The stakes are high. DeGette's proposal is part of Senate Majority Leader Harry Reid's energy bill, and debate is set to start this week. It will be the first bill with fracturing provisions to hit the floor of either chamber since Congress exempted the process from federal regulation in a 2005 energy bill.

But it is not clear that the disclosure proposal would have any effect on Reid's quest to secure the 60 votes he needs to pass the bill. The critics and supporters of drilling are more focused on revenue sharing and oil spill liability. "It's probably a wash," said a senior Democratic aide.