Washington (Platts)--14Jun2007

The US Senate Thursday turned its attention briefly to whether or not
individual states should have the right to drill off their coasts, even if the
federal government has a moratorium banning such development.

     Senator John Warner, Republican-Virginia, offered an amendment to the
wide-ranging energy bill seeking to give the state of Virginia the right to
lift the federal ban on drilling in the Outer Continental Shelf if the
governor chooses that course.

     Warner wants to allow drilling for natural gas only.

     But anti-drilling opponents railed against the plan, with New Jersey
Democrat Robert Menendez offering a second-degree amendment to Warner's that
would require that governors of all states located within 100 miles of
Virginia's coastal waters to sign off on the plan before it could move
forward.

     Menendez, along with a number of senators opposing drilling, said if
there were a spill, it would impact all neighboring states, not just Virginia.

     Senator Bill Nelson, Democrat-Florida, raised concerns about the US
military's ability to operate if Virginia allowed drilling, since southern
Virginia is the home one of the nation's largest Navy bases.

     Warner said he would "lay aside" his amendment until he could provide
documentation from the military that drilling would not hamper operations. But
he stressed he would bring the amendment back up for debate.

     Menendez, for his part, said he was so adamantly opposed to Warner's
measure that he would consider a filibuster, a procedural move designed to
kill a measure unless 60 senators agree to limit debate.

		--Cathy Landry, cathy_landry@platts.com