US Senators announce deal on eastern Gulf of Mexico drilling bill

US Senators announce deal on eastern Gulf of Mexico drilling bill

Washington (Platts)--12Jul2006

US Gulf Coast senators and the Republican leadership on Wednesday
announced a deal they say would lead to new near-term oil and gas drilling in
the eastern portion of the Gulf of Mexico known as Lease Area 181.

The deal, which covers 1.75 million acres in the lease area and an
additional 5 million acre portion of the Outer Continental Shelf, provides
revenue sharing for Gulf Coast states.

In addition, Senator Mel Martinez, Republican-Florida, secured an
agreement to protect waters up to 125 miles all around the state he represents
from drilling through 2022.

Senator Mary Landrieu, Democrat-Louisiana, said the bill would provide
much-needed oil and gas for the US, while protecting the Gulf Coast.

Senate Majority Leader Bill Frist, Republican-Tennessee, said he would
talk to House of Representatives leadership in an effort to preserve the
Senate bill in future negotiations to work out differences between a
Senate-passed and a House-passed measure.

Proponents said the agreement was so delicately crafted that any change
to the bill during House-Senate negotiations could lead to its downfall.

Senator Bill Nelson, Democrat-Florida, who appeared uninvited at a news
conference for the announcement, said "the devil is in the details" and that
he would wait to see the bill in writing before committing either to support
or oppose the bill. Nelson has previously said he would attempt to filibuster,
or talk to death, any bill that would hurt Florida's coasts.

Senate Energy and Natural Resources Chairman Pete Domenici,
Republican-New Mexico, the main architect of the measure, lashed out at Nelson
for his appearance, saying: "We didn't invite him over here. If he supports
it, wonderful; but we're going to pass it anyway."

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