99–006 

112TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 112–69 

REVERSING PRESIDENT OBAMA’S OFFSHORE 

MORATORIUM ACT 

MAY 2, 2011.—Committed to the Committee of the Whole House on the State of the 

Union and ordered to be printed 

Mr. HASTINGS of Washington, from the Committee on Natural 

Resources, submitted the following 

R E P O R T 

together with 

DISSENTING VIEWS 

[To accompany H.R. 1231] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Natural Resources, to whom was referred the 

bill (H.R. 1231) to amend the Outer Continental Shelf Lands Act 

to require that each 5-year offshore oil and gas leasing program 

offer leasing in the areas with the most prospective oil and gas resources, to establish a domestic oil and natural gas production goal, 

and for other purposes, having considered the same, report favorably thereon with an amendment and recommend that the bill as 

amended do pass. 

The amendment is as follows: 

Strike section 4. 

PURPOSE OF THE BILL

The purposes of H.R. 1231 are to amend the Outer Continental 

Shelf Lands Act to require that each five-year offshore oil and gas 

leasing program offer leasing in the areas with the most prospective oil and gas resources and to establish a domestic oil and natural gas production goal. 

BACKGROUND AND NEED FOR LEGISLATION

The Reversing President Obama’s Offshore Moratorium Act will 

lift the President’s ban on new offshore drilling by requiring the 


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Administration to move forward on American energy production in 

areas estimated to contain the most oil and natural gas resources. 

It requires that each five-year leasing plan include lease sales in 

the areas assessed as containing the most oil and natural gas resources and requires the Secretary of the Interior to establish a 

production goal when writing a five-year plan. It also allows the 

governor of a state with resources estimated to be lower than the 

oil and natural gas target levels to opt-in to a five-year leasing 

plan. 

The 1953 Outer Continental Shelf Lands Act (OCSLA) requires 

the Secretary of the Interior to prepare an oil and natural gas leasing program for the outer continental shelf (OCS) every five years. 

The OCS has been divided into 26 planning areas—11 along the 

Lower 48 states, and 15 along Alaska. Only planning areas that 

have been included in a current five year plan can be leased for oil 

and natural gas development. 

OCS Moratorium: Beginning in Fiscal Year (FY) 1982, Congress 

included an annual spending prohibition in appropriations acts preventing the Minerals Management Service (MMS), superseded by 

the Bureau of Ocean Energy Management Regulation and Enforcement (BOEMRE), from spending money to plan for and conduct oil 

and natural gas lease sales for significant portions of the OCS. In 

addition, an overlapping presidential moratorium for these activities was issued in 1990 and extended to 2012 in 1998. 

Lifting the OCS Moratoria: At the request of the Alaska delegation, the spending moratoria for the North Aleutian Basin was 

dropped from the FY2004 and subsequent appropriations acts. In 

addition, the Gulf of Mexico Energy Security Act of 2006 lifted the 

Congressional moratoria for the ‘‘181 South Area’’ in the Gulf of 

Mexico. President George W. Bush lifted the Presidential moratoria 

for these areas in January 2007. In July 2008 President Bush revoked the Presidential moratorium for the OCS with exceptions for 

the Eastern Gulf of Mexico and designated Marine Sanctuaries. 

Congress did not include the annual spending moratorium for leasing activities on the OCS in the Continuing Resolution that funded 

the government from October 1, 2008, through March 6, 2009. 

The actions taken in 2008 by President Bush and Congress to lift 

the OCS moratoria on oil and natural gas exploration and development was in response to record-high gasoline prices in the spring 

and summer of 2008. The Bush Administration began work on a 

new five-year (2010–2015) leasing plan for the OCS to allow oil and 

natural gas leasing and development activities in the planning 

areas no longer under moratoria to occur. 

Since President Obama took office, he has systematically taken 

steps to re-impose a new offshore drilling moratorium. He first 

abandoned the 2010–2015 leasing plan that would have provided 

for oil and natural gas leasing in the newly opened areas. He postponed and cancelled previously scheduled lease sales in the Gulf of 

Mexico and Virginia identified in the 2007–2012 five-year leasing 

plan for the OCS. In December 2010, the President announced a 

restrictive drilling plan that placed the entire Pacific Coast, the entire Atlantic Coast, the Eastern Gulf of Mexico, and much of Alaska off-limits to future energy production—as it was before record 

high gasoline prices in 2008 prompted President Bush and Congress to lift the moratoria. 


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Despite abundant domestic onshore and offshore energy resources, due to development restrictions and the moratorium in the 

Gulf and other portions of the nation’s OCS, the United States continues to import over half of its oil, leaving the nation vulnerable 

to hostile, unstable foreign countries. For example, in 2009, the 

United States imported 347,285 thousand barrels of crude oil from 

Venezuela, 283,091 thousand from Nigeria, and 22,354 thousand 

barrels from Libya. Over 3 billion barrels of crude oil were imported into the United States in 2009 alone. 

Failure to develop our offshore energy resources is costing American jobs, hurting our economy, facilitating our dependence on foreign sources of oil, and denying American taxpayers revenue to 

help pay down the national debt. According to the American Energy Alliance, permanently lifting the offshore moratoria would result in the creation of 1.2 million private sector U.S. jobs, $8 trillion in additional economic output (GDP), $2.2 trillion in total tax 

receipts, and $70 billion in additional wages each year. 

The President’s actions put some of the most promising shallow 

water energy resources in the world off-limits and pushed domestic 

oil development into a smaller fraction of the Gulf of Mexico and 

into deeper water. Domestic exploration and development are an 

essential component of our nation’s energy and economic security. 

A robust domestic energy industry will create new jobs, generate 

much-needed revenue to help pay down our national debt, and 

strengthen our national security by lessening our dependence on 

foreign countries. 

COMMITTEE ACTION

H.R. 1231, the Reversing President Obama’s Offshore Moratorium Act, was introduced on March 29, 2011, by Natural Resources 

Committee Chairman Doc Hastings (R–WA). The bill was referred 

to the Committee on Natural Resources, and within the Committee 

to the Subcommittee on Energy and Mineral Resources. On April 

6, 2011, the Subcommittee on Energy and Mineral Resources held 

a hearing on the bill. On April 13, 2011, the Full Natural Resources Committee met to consider the bill. The Subcommittee on 

Energy and Mineral Resources was discharged by unanimous consent. Congressman Jon Runyan (R–NJ) offered amendment designated 008; the amendment was not adopted by a roll call vote of 

15–28, as follows: 


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Congressman Frank Pallone (D–NJ) offered amendment designated 028; the amendment was not adopted by voice vote. Congressman Rush Holt (D–NJ) offered amendment designated 007; 

the amendment was not adopted by a roll call vote of 12–31, as follows: 


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Congressman Andy Harris (R–MD) offered amendment designated 008; the amendment was not adopted by voice vote. Congresswoman Colleen Hanabusa (D–HI) offered amendment designated 003; the amendment was not adopted by a roll call vote of 

14–29, as follows: 


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Congressman Edward Markey (D–MA) offered amendment designated 002; the amendment was not adopted by a roll call vote of 

13–30, as follows: 


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Congressman John Garamendi (D–CA) offered amendment designated 018; the amendment was not adopted by a roll call vote of 

14–29, as follows: 


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Chairman Doc Hastings (R–WA) offered an amendment which 

was adopted by voice vote. Congressman Edward Markey (D–MA) 

offered amendment designated 005; the amendment was ruled out 

of order. Congressman John Garamendi (D–CA) offered amendment designated 019. Congressman Garamendi offered an amendment to the amendment which was adopted by unanimous consent. 

The amendment, as amended, was ruled out of order. Congressman 

Edward Markey (D–MA) offered amendment designated 005–2; the 

amendment was not adopted by a roll call vote of 14–29, as follows: 


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Congressman Frank Pallone (D–NJ) offered amendment designated 027; the amendment was ruled out of order. Congressman 

Frank Pallone (D–NJ) offered amendment designated 030; the 

amendment was not adopted by a roll call vote of 14–29, as follows: 


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The bill was then favorably reported, as amended, to the House 

of Representatives by a roll call vote of 29–14, as follows: 


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MAJOR PROVISIONS OF H.R. 1231 

Section 2. Outer Continental Shelf leasing program 

This section requires each five-year OCS leasing plan to include 

lease sales in the planning areas estimated to contain the greatest 

known oil and natural gas resources. For the 2012–2017 leasing 

plan being written by the Obama Administration, the areas with 

the greatest known resources are specifically defined as those estimated to contain a minimum of 2.5 billion barrels of oil or 7.5 trillion cubic feet of natural gas. At least 50 percent of the planning 

area must be made available for leasing in the 2012–2017 five-year 

OCS leasing plan. 

Currently, the Obama Administration’s 2012–2017 draft OCS 

leasing plan does not include planning areas for possible future 

lease sales outside of the Western and Central Gulf of Mexico. The 

requirements to lease in the most prospective offshore areas reverses the Administration’s defacto moratorium on leasing in new 

planning areas opened in 2008. 

A state’s governor may request to opt-in to a five-year leasing 

plan and if so, the Secretary of the Interior will include a lease 

sale, or sales, of the state’s offshore area in the plan. 

Section 3. Domestic oil and natural gas production goal 

This section requires the Secretary of the Interior to establish a 

production goal when writing a five-year plan. The goal will be the 

specific amount of oil and natural gas production that is estimated 

to result from leases issued under the plan. The section establishes 

the production goal for the 2012–2017 OCS leasing plan being written by the Obama Administration at 3 million barrels of oil per day 

and 10 billion cubic feet of natural gas per day by 2027. This time 

frame, 2012–2027, encompasses the five-year OCS leasing plan 

(2012–2017) and resulting five to ten-year leases issued under the 

plan. By comparison to current production from the OCS, including 

this production goal for oil and natural gas in the 2012–2017 fiveyear plan will yield a tripling of current American offshore production and would reduce foreign imports by nearly one-third. 

COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of rule XIII 

of the Rules of the House of Representatives, the Committee on 

Natural Resources’ oversight findings and recommendations are reflected in the body of this report. 

COMPLIANCE WITH HOUSE RULE XIII 

1. Cost of Legislation. Clause 3(d)(1) of rule XIII of the Rules of 

the House of Representatives requires an estimate and a comparison by the Committee of the costs which would be incurred in carrying out this bill. However, clause 3(d)(2)(B) of that rule provides 

that this requirement does not apply when the Committee has included in its report a timely submitted cost estimate of the bill prepared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974. Under clause 

3(c)(3) of rule XIII of the Rules of the House of Representatives and 

section 403 of the Congressional Budget Act of 1974, the ComVerDate Mar 15 2010 05:37 May 04, 2011 Jkt 099006 PO 00000 Frm 00019 Fmt 6659 Sfmt 6602 E:\HR\OC\HR069.XXX HR069

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mittee has received the following cost estimate for this bill from the 

Director of the Congressional Budget Office: 

MAY 2, 2011. 

Hon. DOC HASTINGS, 

Chairman, Committee on Natural Resources, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 1231, the Reversing 

President Obama’s Offshore Moratorium Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CB0 staff contact is Kathleen Gramp. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

H.R. 1231—Reversing President Obama’s Offshore Moratorium Act 

Summary: H.R. 1231 would direct the Department of the Interior 

(DOI) to auction leases for the development of oil and gas resources 

in the most geologically productive areas of the Outer Continental 

Shelf (OCS). For the 2012–2017 leasing period, the bill would require leasing in areas that are projected to contain more than 2.5 

billion barrels of oil or 7.5 trillion cubic feet of natural gas. Areas 

meeting those criteria include the Central, Western, and Eastern 

Gulf of Mexico; the Beaufort, Chukchi, and North Aleutian areas 

off Alaska; the North and Mid-Atlantic planning areas; and the 

Southern California planning area. 

Enacting H.R. 1231 would affect direct spending; therefore, payas-you-go procedures apply. CB0 estimates that enacting this legislation would reduce direct spending (by increasing offsetting receipts) by about $350 million over the 2012–2016 period and by 

$800 million over the 2012–2021 period. Enacting this legislation 

would not affect revenues. In addition, CB0 estimates that the administrative costs of implementing the bill would total about $22 

million over the 2011–2016 period, assuming appropriation of the 

necessary amounts. 

H.R. 1231 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) 

and would impose no costs on state, local, or tribal governments. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 1231 is shown in the following table. The costs 

of this legislation fall within budget function 950 (undistributed offsetting receipts). 

By fiscal year, in millions of dollars— 

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012– 

2016 

2012– 

2021 

CHANGES IN DIRECT SPENDING 

Estimated Budget Authority .................... 0 0 0 ¥100 ¥250 ¥300 ¥150 0 0 0 ¥350 ¥800 

Estimated Outlays ..... 0 0 0 ¥100 ¥250 ¥300 ¥150 0 0 0 ¥350 ¥800 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorization Level ............... 5 5 5 5 5 0 0 0 0 0 25 25 

Estimated Outlays ..... 2 5 5 5 5 3 0 0 0 0 22 25 


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Basis of estimate: For this estimate, CB0 assumes that H.R. 

1231 will be enacted before the end of fiscal year 2011 and that 

DOI will conduct the sales of federal leases in the OCS according 

to the schedule included in the President’s budget request for fiscal 

year 2012. Bonus bids, rental fees, and royalty payments for OCS 

leases are recorded in the budget as offsetting receipts, which are 

an offset to direct spending. CBO also assumes the amounts necessary to implement the bill will be appropriated by the beginning 

of each fiscal year. 

Direct spending 

The estimated budgetary impact of H.R. 1231 primarily reflects 

an assumption that leasing activity in areas in the Atlantic and 

California OCS would increase. CBO estimates that enacting the 

bill would have no effect on offsetting receipts from areas already 

included in the administration’s leasing plans, such as the Central 

and Western Gulf of Mexico and the Beaufort and Chukchi Seas. 

Similarly, while the geologic criteria in this bill would apply to the 

Eastern Gulf of Mexico, CBO does not expect any leasing to occur 

in that area over the 2011–2021 period because of the statutory 

prohibition on such leasing under the Gulf of Mexico Energy Security Act. 

CBO’s baseline projections assume that areas off the Atlantic and 

Pacific coasts will not be opened for leasing until after June 30, 

2017. Under existing law, the department cannot auction acreage 

unless it is included in an approved five-year plan. A final leasing 

plan for the 2012–2017 period has not yet been adopted. However, 

the President’s budget request for 2012 indicated that the Atlantic 

and Pacific areas are not included in the current scoping process 

for that plan. As a result, CBO expects that it is unlikely that leasing will occur over the 2012–2017 period under current policies. 

Based on information from DOI on the potential oil and gas resources in the Atlantic and Pacific regions, CBO estimates that 

holding additional lease sales in those areas would increase net offsetting receipts (and thus reduce direct spending) by about $800 

million over the 10-year period. For this estimate, CBO assumes 

that the department would conduct the consultations and assessments necessary to incorporate the Atlantic and Pacific lease sales 

into the five-year plan for 2012–2017, which could take at least two 

years to complete. Given the lead times needed to conduct sales 

and issue leases, CBO anticipates that proceeds from leasing in 

those areas probably would be collected after fiscal year 2014. 

Spending subject to appropriation 

Based on historical spending trends for similar activities, CBO 

estimates that DOI would spend about $22 million over the 2012– 

2016 period to complete the necessary environmental and other assessments necessary to conduct lease sales in the Atlantic and Pacific regions, assuming appropriation of the necessary amounts. 

Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in outlays that are subject to those pay-as-you-go procedures are shown in the following table. 


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CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 1231, THE REVERSING PRESIDENT OBAMA’S 

OFFSHORE MORATORIUM ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON APRIL 13, 2011 

By fiscal year, in millions of dollars— 

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012– 

2016 

2012– 

2021 

NET INCREASE OR DECREASE (¥) IN THE DEFICIT 

Statutory PayAs-You-GoImpact ...... 0 0 0 0 ¥100 ¥250 ¥300 ¥150 0 0 0 ¥350 ¥800 

Intergovernmental and private-sector impact: H.R. 1230 contains 

no intergovernmental or private-sector mandates as defined in 

UMRA and would impose no costs on state, local, or tribal governments. 

Estimate prepared by: Federal Costs: Kathleen Gramp: Impact 

on State, Local, and Tribal Governments: Melissa Merrell; Impact 

on the Private Sector: Amy Petz. 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

2. Section 308(a) of Congressional Budget Act. As required by 

clause 3(c)(2) of rule XIII of the Rules of the House of Representatives and section 308(a) of the Congressional Budget Act of 1974, 

this bill does not contain any new budget authority, spending authority, credit authority, or an increase or decrease in revenues or 

tax expenditures. According to the Congressional Budget Office, enactment of this bill would reduce direct spending (by increasing offsetting receipts) by about $350 million over the 2012–2016 period 

and by $800 million over the 2012–2021 period. Enacting this legislation would not affect revenues. In addition, CBO estimates that 

the administrative costs of implementing the bill would total about 

$22 million over the 2011–2016 period, assuming appropriation of 

the necessary amounts. 

3. General Performance Goals and Objectives. 

This bill does not authorize funding and therefore, clause 3(c)(4) 

of rule XIII of the Rules of the House of Representatives does not 

apply. 

EARMARK STATEMENT

This bill does not contain any Congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined under clause 9(e), 

9(f), and 9(g) of rule XXI of the Rules of the House of Representatives. 

COMPLIANCE WITH PUBLIC LAW 104–4 

This bill contains no unfunded mandates. 

PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

This bill is not intended to preempt any State, local or tribal law. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 


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as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

OUTER CONTINENTAL SHELF LANDS ACT 

* * * * * * * 

SEC. 18. OUTER CONTINENTAL SHELF LEASING PROGRAM.—(a) 

The Secretary, pursuant to procedures set forth in subsections (c) 

and (d) of this section, shall prepare and periodically revise, and 

maintain an oil and gas leasing program to implement the policies 

of this Act. The leasing program shall consist of a schedule of proposed lease sales indicating, as precisely as possible, the size, timing, and location of leasing activity which he determines will best 

meet national energy needs for the five-year period following its approval or reapproval. Such leasing program shall be prepared and 

maintained in a manner consistent with the following principles: 

(1) * * * 

* * * * * * * 

(4)(A) In each oil and gas leasing program under this section, 

the Secretary shall make available for leasing and conduct 

lease sales including— 

(i) at least 50 percent of the available unleased acreage 

within each outer Continental Shelf planning area considered to have the largest undiscovered, technically recoverable oil and gas resources (on a total btu basis) based upon 

the most recent national geologic assessment of the outer 

Continental Shelf, with an emphasis on offering the most 

geologically prospective parts of the planning area; and 

(ii) any State subdivision of an outer Continental Shelf 

planning area that the Governor of the State that represents that subdivision requests be made available for 

leasing. 

(B) In this paragraph the term ‘‘available unleased acreage’’ 

means that portion of the outer Continental Shelf that is not 

under lease at the time of a proposed lease sale, and that has 

not otherwise been made unavailable for leasing by law. 

(5)(A) In the 2012–2017 5-year oil and gas leasing program, 

the Secretary shall make available for leasing any outer Continental Shelf planning areas that— 

(i) are estimated to contain more than 2,500,000,000 barrels of oil; or 

(ii) are estimated to contain more than 7,500,000,000,000 

cubic feet of natural gas. 

(B) To determine the planning areas described in subparagraph (A), the Secretary shall use the document entitled ‘‘Minerals Management Service Assessment of Undiscovered Technically Recoverable Oil and Gas Resources of the Nation’s Outer 

Continental Shelf, 2006’’. 

ø(b) The leasing program shall include estimates of the appropriations and staff required to— 

ø(1) obtain resource information and any other information 

needed to prepare the leasing program required by this section; 


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ø(2) analyze and interpret the exploratory data and any 

other information which may be compiled under the authority 

of this Act; 

ø(3) conduct environmental studies and prepare any environmental impact statement required in accordance with this Act 

and with section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)); and 

ø(4) supervise operations conducted pursuant to each lease 

in the manner necessary to assure due diligence in the exploration and development of the lease area and compliance with 

the requirement of applicable laws and regulations, and with 

the terms of the lease.¿ 

(b) DOMESTIC OIL AND NATURAL GAS PRODUCTION GOAL.— (1) IN GENERAL.—In developing a 5-year oil and gas leasing 

program, and subject to paragraph (2), the Secretary shall determine a domestic strategic production goal for the development of oil and natural gas as a result of that program. Such 

goal shall be— 

(A) the best estimate of the possible increase in domestic 

production of oil and natural gas from the outer Continental Shelf; 

(B) focused on meeting domestic demand for oil and natural gas and reducing the dependence of the United States 

on foreign energy; and 

(C) focused on the production increases achieved by the 

leasing program at the end of the 15-year period beginning 

on the effective date of the program. 

(2) 2012–2017 PROGRAM GOAL.—For purposes of the 2012– 

2017 5-year oil and gas leasing program, the production goal 

referred to in paragraph (1) shall be an increase by 2027 of— 

(A) no less than 3,000,000 barrels in the amount of oil 

produced per day; and 

(B) no less than 10,000,000,000 cubic feet in the amount 

of natural gas produced per day. 

(3) REPORTING.—The Secretary shall report annually, beginning at the end of the 5-year period for which the program applies, to the Committee on Natural Resources of the House of 

Representatives and the Committee on Energy and Natural Resources of the Senate on the progress of the program in meeting 

the production goal. The Secretary shall identify in the report 

projections for production and any problems with leasing, permitting, or production that will prevent meeting the goal. 

* * * * * * * 


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DISSENTING VIEWS 

We oppose H.R. 1231 because, in seeking to ‘‘reverse’’ a drilling 

moratorium that does not even exist, the bill will reverse any 

progress towards safer off-shore energy production. 

Section 18(a) of the Outer Continental Shelf Lands Act (OCSLA) 

(43 U.S.C. 1344) currently requires the Secretary of Interior to 

maintain an oil and gas leasing program consisting of a schedule 

of proposed lease sales to meet national energy needs for a fiveyear period. Section 18(a)(3) specifically requires that leasing be 

conducted so as to ‘‘obtain the proper balance between the potential 

for environmental damage, the potential for the discovery of oil and 

gas, and the potential for adverse impact on the coastal zone.’’ 

In sharp contrast to this fundamental requirement for balance, 

H.R. 1231 would insert provisions into Section 18(a) mandating 

that the Secretary make available for lease ‘‘at least 50 percent of 

the available unleased acreage within each outer Continental Shelf 

planning area considered to have the largest undiscovered, technically recoverable oil and gas resources’’ and setting arbitrary triggers that would make broad swaths of the Atlantic and Pacific 

Coasts open for leasing automatically. The bill would also dictate 

that the plan include ‘‘production goals’’ that would increase the 

amount of oil produced per day by at least 3 million barrels and 

natural gas produced per day by 10 billion cubic feet by 2027. 

Current law requires a balancing of energy production and environmental impacts. That balance must be reevaluated in the wake 

of the BP disaster. H.R. 1231 responds to the devastation caused 

by that spill by amending the law to further elevate oil and gas 

production above environmental and other concerns. 

None of the justifications offered for taking such drastic steps 

withstand scrutiny. No moratorium, de facto or otherwise, exists. 

While a temporary halt to drilling in the aftermath of the BP Deepwater Horizon disaster was an essential measure needed to allow 

regulators time to ensure that offshore drilling was safe, there is 

currently no moratorium on offshore drilling. Since October, the 

Administration has approved 39 shallow-water permits. In February, for the first time, drilling companies demonstrated a capability to respond to a deep-water spill that could establish the new 

safety standards put in place by the Interior Department; the Department began issuing deep-water permits. Since that time, 10 

new deepwater permits have been issued. 

The Majority further alleges that energy companies deserve access to large new areas off the East and West Coasts because they 

have diligently and responsibly developed leases they already hold 

in the Gulf of Mexico. In fact, energy companies are not producing 

on thousands of Gulf leases, covering tens of millions of acres. According to data provided to the Committee by the Department of 

the Interior, oil companies are stockpiling Gulf leases covering 


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more natural gas and nearly as much oil as could ever be produced 

by opening up the Atlantic and Pacific Coasts. Granting these companies access to sweeping new areas while they warehouse existing 

leases in the Gulf cannot be justified. 

A third false assertion made by the Majority in offering this legislation is that it would be feasible or even desirable for Congress 

to mandate specific leasing plan requirements. As written, OCSLA 

establishes clear, appropriate principles to guide such planning but 

leaves actual development of the plan to the Interior Department, 

in consultation with the industry. There is no rationale for stripping these plans of critical flexibility by inserting arbitrary numbers selected by the Republican Majority. 

The Majority’s zeal for expanding drilling at any cost was laid 

bare by the votes cast on amendments offered by Democrats. Republicans on the Committee voted in lock step to defeat an amendment offered by Ranking Member Markey and Subcommittee 

Ranking Member Holt that would have halted new leasing until 

the industry reduced its annual fatality rate. Rejection of this 

amendment is egregious given that the BP commission found that 

the rate of fatalities, per person-hour worked, in U.S. waters is four 

times higher than in the waters off Europe. An amendment offered 

by Representative Holt to incentivize oil companies to develop the 

leases they already hold before awarding them whole new coastlines was also defeated. Even a simple amendment offered by Representative Hanabusa requiring the 5-year plan to identify a 

‘‘worst-case discharge scenario’’ so that the public could be on notice of the potential impacts of drilling was rejected by all Republican Committee Members. 

As with the other off-shore drilling measures being proposed by 

the Majority—H.R. 1229 and H.R. 1230—H.R. 1231 is nothing like 

it has been described by its proponents. This legislation cannot reverse a moratorium, since one does not exist and it will not reduce 

the price of oil. Beyond tipping the balance between drilling and 

protecting the Gulf, H.R. 1231 smashes the scales. 

EDWARD J. MARKEY. 

PETER A. DEFAZIO. 

JOHN P. SARBANES. 

RAU ́ L M. GRIJALVA. 

DALE E. KILDEE. 

NIKI TSONGAS. 

BETTY SUTTON. 

GREGORIO KILILI CAMACHO

SABLAN. 

FRANK PALLONE, JR. 

COLLEEN W. HANABUSA. 

GRACE F. NAPOLITANO. 

ENI F.H. FALEOMAVAEGA. 

BEN RAY LUJA ́ N. 

JOHN GARAMENDI. 

RUSH HOLT. 


rfrederick on DSKD9S0YB1PROD with HEARING
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rfrederick on DSKD9S0YB1PROD with HEARINGInsert offset folio 31 here HR69.009
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rfrederick on DSKD9S0YB1PROD with HEARINGInsert offset folio 32 here HR69.010