Democrats' Offshore "Oil Spill" Bill Makes Significant Changes to Onshore Energy Leasing

Statement

In yet another example of House Democrats exploiting the oil spill to pass unrelated legislation, the CLEAR Act (H.R. 3534) makes fundamental changes to onshore federal energy leasing. This will not only affect leasing for natural gas and oil, but also for renewable energy like wind and solar. In addition, the new $22 billion energy tax would also apply to onshore oil and natural gas production on federal leases -- penalizing onshore energy producers for an offshore oil spill.

"Targeting onshore energy production will not cleanup the offshore oil spill, but it will cost American jobs, delay American energy production and increase gas and energy prices for everyone," said Ranking Member Doc Hastings.

Specifically, the bill removes the current leasing authority from the Bureau of Land Management (BLM) and the BLM leasing on U.S. Forest Service land and place it into the uncertain new world of three agencies that are replacing the former Minerals Management Service (MMS) -- agencies whose primary purpose is oversight of offshore energy operations. This change is only included in the House Democrats' bill. It's not part of the Administration's proposal to reorganize MMS or in Senate Majority Leader Harry Reid's energy bill.

Even an appointee of the Obama Administration voiced opposition to this provision during a June 17, 2010 House Natural Resources Committee hearing. Rep. Cynthia Lummis (WY) asked then acting MMS Director, and current BLM Director, Bob Abbey about this specific provision:

REP. LUMMIS: "Mr. Abbey, do you believe that BLM's leasing program should be removed from BLM oversight and given to a separate agency? BLM's leasing programs?"

ABBEY: "I do not."

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