Titus Asks Gibbons To Defend Oil Company Incentives

Titus Asks Gibbons To Defend Oil Company Incentives

May 22, 2006

Democratic gubernatorial front-runner Dina Titus today called on Congressman Jim Gibbons to explain to Nevadans struggling with higher gas prices why he supported retaining $7 billion in windfall incentives to oil and gas companies late last week.

"Jim Gibbons owes Nevadans an answer. Once again, he has proven how beholden he is to oil and gas companies," Titus said. "Is Jim Gibbons in Washington to do something about high gasoline prices that are eating up family budgets, or is he in Washington to feed enormous oil company profits?"

The House of Representatives voted 252 to 165 on Thursday to require oil and gas companies to renegotiate leases in publicly owned waters for off-shore drilling. The leases originally were structured as incentives to oil and gas companies to conduct exploratory drilling. House Amendment 847 to HR 5386, an Interior Department appropriations bill, was aimed at preventing oil and gas companies from avoiding $7 billion in lease payments to the federal government over the next five years. Gibbons voted to uphold current lease terms that permit those windfall incentives, even though 65 Republicans joined Democrats in passing the amendment calling for renegotiation of the leases.

"Just as he opposed prosecution of oil companies for price gouging, just as he opposed new fuel efficiency standards and just as he supported billions of dollars in tax breaks for energy companies, Jim Gibbons chose energy special interests over Nevadans' interests," Titus said. "He went against members of his own Republican Party to keep in place a multibillion-dollar sweet deal for oil companies."

In a related vote, Gibbons also supported House Amendment 842 to HR 5386 that would have lifted a 25-year ban on oil drilling in coastal areas along the western Gulf of Mexico. That amendment failed on a 279 to 141 vote, with 94 Republicans in opposition.

"Jim Gibbons wants to allow oil companies to drill in sensitive areas - and reward them with lucrative leases," Dina Titus said. "He says he's too busy in Washington to debate issues in Nevada, but Nevadans clearly would be better served if he was here debating rather than voting in Washington to keep oil company profits at an all-time high."

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