FOR RELEASE WEEK OF November 20, 2006

Contact.. Kyle Steward\...662-844-5437

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## REPORT FROM CONGRESS

By Congressman Roger F. Wicker

[WICKER PUSHES ACTION ON MORE OFF-SHORE DRILLING]{.underline}

            In the waning days of this term, Congress has an opportunity
to increase domestic oil and gas exploration and bring millions into the
Mississippi treasury.  Both the House and Senate have approved
legislation to allow drilling on the outer continental shelf (OCS). 
Efforts are under way to reach agreement on the differing versions and
take this key step toward energy independence before adjournment in
December.

            I have been a strong proponent of action to tap into the
enormous oil and gas deposits within the U.S. and along its coastline. 
The House-passed Deep Ocean Energy Resources Act would open more than
350 million acres of the OCS for energy exploration.  The measure would
lift a 25-year moratorium on OCS production while giving states the
authority to limit drilling within 100 miles of their coastlines.

**STATES SHARE REVENUES**

            The legislation also would permit states that allow
exploration to share revenues from royalties and leases.  Under current
law, the vast majority of that revenue now goes to the federal
treasury.  Mississippi could receive \$250 million per year from future
and existing leases under the new provisions.

            Lifting the lid on oil and gas drilling in the OCS would
create thousands of new jobs and help reduce the cost of gasoline at the
pump.  This production does not represent a threat to the environment.  
The drilling can be done in an environmentally-safe manner using today's
high-tech equipment and the most efficient engineering techniques.

**SENATE BILL NOT AS BROAD**

            The Senate version is far less sweeping than the House
bill.  It would open only 5.7 million OCS acres (out of 611 million) to
new leasing.  That amounts to less than one percent of total OCS acreage
presently under the drilling moratorium.  The measure provides a 125
mile buffer on drilling for Florida in the eastern Gulf of Mexico, but
does not address other coastal states' rights to regulate exploration.  
The Senate bill would provide 37.5% in revenues from new leases with the
four oil and gas producing states in the Gulf of Mexico.

            The U.S. is the only developed country in the world that
still places the vast majority of its off-shore energy resources
off-limits to exploration.   While the nation's energy needs continue to
grow, more than 85 percent of the OCS is presently under a drilling
ban.   The U.S. Minerals Management Service estimates the OCS contains
76 billion barrels of oil and more than 400 trillion cubic feet of
natural gas.   We can and should take action now to lift that moratorium
and tap these resources to meet the energy challenges confronting us.

**OPTIMISTIC ABOUT PROSPECTS**

            I am optimistic an agreement can be reached to secure
passage of this legislation despite the short time span remaining in
this Congressional session.  This represents a golden opportunity to
produce a year-end present to the American people that will reduce
gasoline prices and help make the U.S. more energy self-sufficient.