Congressman Landry's Opening Statement at Hearing on the Reorganization of Offshore Energy Agencies

Statement

U.S. House Natural Resources Committee Member Jeff Landry (R, LA-03) issued the following opening statement at today's Full Committee Hearing on Offshore Energy: Interior Department's Plans for Offshore Energy, Revenue, and Safety Reorganization:

"Thank you, Chairman Hastings, for calling this very important hearing today. I would also like to thank the Chairman for inviting Director Bromwich back to our Committee.

I hope Mr. Bromwich will answer our questions honestly and thoroughly. And I also hope the Director is serious about improving safety and efficiency for offshore development in the Gulf of Mexico.

Every day, I get calls from my constituents working as operators and contractors servicing wells who continue to have major problems with the Interior Department's pattern of delaying permits -- not only drilling permits, but also permits for plugging and abandonment (P & A).

In the New Orleans office, BOEMRE receives 90 P & A permit applications per week; however, only 25 P & A permits are issued per week. Today, I want Mr. Bromwich to inform the hard-working people of my district and our country what is holding up those 65 other P & A permits.

Not issuing P & A permits has serious financial impacts for the operators, service companies, and residents of South Louisiana. Not issuing P & A permits is also costing thousands of American jobs. And not issuing permits is a major safety issue.

It is July, meaning we are a month away from the peak of hurricane season. If these P & A permits are not issued, the wells cannot be plugged, and American businesses face the real threat of paying 10 times the cost if they lose their wells in a hurricane.

Let me remind you that today is July 15th and Hurricane Katrina hit on August 29th. We need to plug these wells now or at least put reservoirs in them before we get a major hurricane.

Furthermore, Mr. Bromwich's proposed plan separates environmental enforcement and energy management, causing two agencies to be involved in issuing plugging and abandonment permits. This will not improve the process; this will not save operators and service companies from unnecessary costs; this will not save American jobs; and this will not make things safer.

I look forward to the testimony and getting answers about how BOEMRE's proposed reorganization will improve our economy, will make the drilling process more efficient and safer, and will allow the people in my district and throughout our country to get back to work."

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