Bud's Offshore Energy (BOE)

HR 1231 would:

• Require that specified volumes of oil and gas (per estimates made by MMS in 2006) be made available for leasing.
• Set offshore production goals.
• Give credits (for use in paying lease bonuses) to companies for costs associated with pre-sale seismic surveys.   [Comment:  If the legislation provides reasonable assurance that lease sales will be held, why are the seismic survey credits needed? The seismic data will have a high commercial value. Collection of these data should not have to be subsidized by the Federal government.]

HR 1229 would:

• Require that DOI act on drilling applications within 60 days.
• Extend the term leases where the approval of drilling applications was delayed following the Macondo blowout.
• Make the 5th Circuit Court the venue for any civil actions involving GoM energy projects.
• [Comment: The important question is not the number of days that the regulator should be given to review applications, but whether a complex permit review and approval process is the optimal regulatory approach. A lesson learned from virtually every major accident, from Santa Barbara through the Ocean Ranger, Alexander Kielland, Piper Alpha, and Macondo, is that command and control regulation is not in the best interest of offshore safety. Industry should not rely on government to manage its operations and government should focus on safety achievement, not directing the day-to-day activities of offshore companies. Over the long-term, the US would be better served if regulatory resources were dedicated to risk assessment, data analysis, assessment of operator and contractor management systems, targeted inspections and audits, participation in standards development and research, and safety leadership.]