Senator plans to hold up Interior nominee on drilling issue

Washington (Platts)--3May2006


US Senator Bill Nelson, Democrat-Florida, said Wednesday he still plans
to block the nomination of Idaho Governor Dirk Kempthorne, a Republican, to be
Interior secretary unless the senator receives assurances Florida will be
protected from expanded offshore oil and natural gas drilling.

Nelson pledged to place a hold on Kempthorne from the moment he was
nominated by the White House in March to replace Gale Norton, but on Wednesday
it became clear what it would take to get Nelson to back down from the threat.

Nelson told reporters following a meeting with Kempthorne in Washington
that he is not seeking a rollback of Interior's proposal to lease two million
acres in the Eastern Gulf of Mexico, offshore Florida, next year. "The
five-year plan is on the back burner," said Nelson.

Rather, he wants to reach a deal with Senators Pete Domenici,
Republican-New Mexico, and Jeff Bingaman, Democrat-New Mexico, on S. 2253,
legislation they have introduced that would open more than three million acres
of the Eastern Gulf to drilling.

On Tuesday, Senate Republicans said that bill would be brought to the
floor in the next few weeks as the possible centerpiece of a larger energy
package that would be the companion to a House bill being debated this week.

Nelson said he is meeting with the New Mexico lawmakers frequently on a
compromise, but so far "both of them are absolutely insistent: We want all of
181," the disputed Eastern Gulf area.

Kempthorne would not comment on the meeting with Nelson, except to say it
was a "good conversation."

Other senators have promised to place holds as well, including Mary
Landrieu, Democrat-Louisiana, who wants a greater share of drilling revenue
for her state.

---Matt Spangler, matt_spangler@platts.com

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