Democrats Want U.S.
Budget Bill to Drop Oil Drilling
March 16, 2006 — By Tom Doggett, Reuters
WASHINGTON — Senate Democrats will
try to remove language from a pending budget bill that calls for the
government to raise billions of dollars in leasing fees from oil
drilling in Alaska's Arctic National Wildlife Refuge.
Republican leaders, with White House support, are using the massive 2007
budget legislation to give oil companies access to the refuge, because
budget bills can't be filibustered under Senate rules.
The legislation assumes about $6 billion in leasing fees and bonus bids
would be paid by energy companies to drill in the refuge. The federal
government could keep half the money to fund various programs and the
other half would go Alaska.
Opening ANWR is a key part of the Bush administration's national energy
policy. The White House says tapping the refuge's potential 16 billion
barrels of crude would boost domestic petroleum supplies and help reduce
U.S. reliance on foreign oil imports.
Democrats John Kerry of Massachusetts and Maria Cantwell of Washington
will offer an amendment to strip the ANWR language from the budget bill.
The lawmakers had hoped to offer their amendment on Wednesday afternoon,
but delayed it until Thursday because of a backlog of other pending
amendments. A vote on striking the ANWR language was expected later in
the week.
Many Senate Democrats, and a handful of Republicans, oppose drilling in
the refuge. They argue the amount of oil in ANWR is not enough to
justify threatening the area's polar bears, caribou and other wildlife.
In an e-mail to his supporters on Wednesday, Kerry said the Bush
administration was "so beholden to the big oil and gas companies that
turning over America's most precious natural resources on a fool's
errand search for the last drop of oil is all they can think about."
Democrats also doubt the government would be able to raise the $6
billion in fees, as called for in the budget bill, based on the much
lower prices companies have paid in recent years to lease tracts in
other areas of Alaska's North Slope.
"It is irresponsible to base the country's budget on highly speculative
and dubious projections of lease revenues for the coastal plain of the
Arctic National Wildlife Refuge," all nine Democrats on the Senate
Budget Committee said in a letter last week to the panel's Republican
chairman, Judd Gregg.
Twenty-four House Republicans also sent a letter to the House Budget
Committee chairman, Republican Jim Nussle, urging him to keep Arctic
refuge drilling out of the 2007 budget bill.
The administration has failed every year to convince Congress to give
energy companies access to the ANWR.
Drilling supporters hope consumer anger over high gasoline prices and
rising oil imports will encourage more lawmakers to vote for drilling in
the refuge.
ANWR stretches across 19 million acres (7.7 million hectares) in the
northeast corner of Alaska. The White House wants to offer 1.5 million
acres (607,000 hectares) in the refuge's coastal plain for oil and
natural gas exploration leases.
The Interior Department estimates the refuge could hold between 5.7
billion and 16 billion barrels of recoverable oil.
If the refuge was opened to drilling, it would take about eight years
before the area reached full production of 800,000 to 1 million barrels
per day, the Energy Department said.
Source: Reuters
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