Senate Passes Bill That Will Benefit Texas; Increase Domestic Energy Production

Senate Passes Bill That Wil Benefit Texas; Increase Domestic Energy Production
Cornyn Applauds Passage of Bill to Provide Texas Revenue Share from New Energy Exploration

SENATE PASSES BILL THAT WILL BENEFIT TEXAS, INCREASE DOMESTIC ENERGY PRODUCTION

Cornyn Applauds Passage of Bill to Provide Texas Revenue Share from New Energy Exploration

U.S. Sen. John Cornyn applauded Senate passage Tuesday of a bipartisan bill that will allow Texas to share revenue from new offshore exploration of oil and gas in the Eastern Gulf of Mexico and increase our domestic energy production. The Gulf of Mexico Energy Security Act of 2006, S. 3711, passed by a vote of 71-25. Sen. Cornyn is an original co-sponsor.

"This bill is an important step toward increasing domestic energy production and reducing our dependence on foreign energy sources," Cornyn said. "Texas is an energy leader and our state will play a strong role in this new offshore oil and gas exploration. I'm encouraged that we will benefit from a reasonable and fair revenue sharing program to help coastal states."

The bill would open new areas in the Eastern Gulf of Mexico for energy development and would give Texas a share of that revenue and a portion of revenue from new leases in the entire Gulf of Mexico after 2017.

"This bill is absolutely critical to our ability to reduce our dependence on foreign energy to both improve our national security and improve the prospects for our economy," Cornyn said. He added that it is possible for us to explore and develop our domestic energy supplies in an environmentally sound way.

It is estimated that the new lease will yield an estimated 1.26 billion barrels of oil and 5.8 trillion cubic feet of natural gas.

"Congress can pass a lot of laws," Cornyn said. "We can repeal a lot of laws. But the one law we cannot repeal is the law of supply and demand. Demand continues to grow, and this bill brings a solution by increasing supply."

The revenue will benefit communities along the Texas Gulf Coast to address critical coastal issues, including erosion, habitat restoration and energy infrastructure.

The bill's main sponsor is Sen. Pete Domenici (R-N.M.). It is co-sponsored by Sen. Kay Bailey Hutchison (R-Texas) and others.

http://cornyn.senate.gov/index.asp?f=record&lid=1&yid=1&rid=237216&pg=1