Katrina giving energy companies a boon? See House Bill 805

[PeacePal]

ALERT! Here's a bill that - if I'm reading it right - would turn Katrina into a gravy train for the oil companies.

Proposed Senate Bill 805, introduced in April and currently in committee, would include the Outer Continental Shelf in disaster relief. The Outer Continental Shelf, which was recently redefined and extended, is where deepwater oil production is booming.

Does this mean we'll be using taxpayer money to build oil wells?

Senate Bill 805 (http://www.theorator.com/bills109/s805.html) reads, in part:

“To amend the Robert T. Stafford Disaster Relief and Emergency Assistance Act to allow the area of a Presidentially declared disaster to include the Outer Continental Shelf
(b) Effective Date- The amendment made by this section shall apply to--
(1) declarations made after the date of the enactment of this Act, or
(2) modifications made after such date with respect to declarations made after December 31, 2003.”

So if this passes, it’s retroactive. Maybe this is what the energy barons cooked up when they read the reports on New Orleans’ vulnerability. After all, the horror stories coming out of Lousiana may well make the public eager to provide hurricane “relief”. And does the public generally read the fine print?

I’m not an expert on energy policies, but according to a report by the U.S. Department of the Interior,” Deepwater Gulf of Mexico 2005: Interim Report of 2004 Highlights”, found at http://www.gomr.mms.gov/homepg/whatsnew/techann/2005/2005-023.pdf:
"High well production rates have been a driving force behind the success of deepwater operations. ...the average deepwater oil completion currently produces at 20 times the rate of the average shallow-water ...oil completion."

We’ve already rewarded royalty relief on deepwater production, in the Energy Policy Act of 2005, found at http://www.congress.gov/cgi-bin/query/F?c109:6:./temp/~c109XF85pp:e364641:
Section 345 reads:
“ROYALTY RELIEF FOR DEEP WATER PRODUCTION.
<Regarding> "any oil or gas lease sale under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) occurring during the 5-year period beginning on the date of enactment of this Act"....
<the bill provides>.... "The suspension of royalties under subsection... established at a volume of not less than"..."16,000,000 barrels of oil equivalent for each lease in water depths greater than 2,000 meters."

Not surprisingly, Halliburton stands poised to help out with deepwater technology: http://www.halliburton.com/kbr/hydroChem/oilGasProd/index.jsp

I’d love to hear from anyone who knows more about energy policy, and the law, than I do.

[SuniSurf]

1. Did you notice this line?

Mr. VITTER introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Isn't he the Repub Senator in Louisianna?

[PeacePal]

2. Yes, interesting isn't it?