U.S. GOVERNMENT PUBLISHING OFFICE

55–753 PDF WASHINGTON : 2024

EXAMINING THE PRESIDENT’S FY 2025 

BUDGET REQUEST FOR THE BUREAU OF 

OCEAN ENERGY MANAGEMENT, 

THE BUREAU OF SAFETY AND 

ENVIRONMENTAL ENFORCEMENT, 

AND THE OFFICE OF NATURAL 

RESOURCES REVENUE 

OVERSIGHT HEARING 

BEFORE THE

SUBCOMMITTEE ON ENERGY AND 

MINERAL RESOURCES 

OF THE

COMMITTEE ON NATURAL RESOURCES 

U.S. HOUSE OF REPRESENTATIVES 

ONE HUNDRED EIGHTEENTH CONGRESS 

SECOND SESSION 

Thursday, May 23, 2024 

Serial No. 118–125 

Printed for the use of the Committee on Natural Resources 

( 

Available via the World Wide Web: http://www.govinfo.gov 

or 

Committee address: http://naturalresources.house.gov 
(II) 

COMMITTEE ON NATURAL RESOURCES 

BRUCE WESTERMAN, AR, Chairman 

DOUG LAMBORN, CO, Vice Chairman 

RAU ́ L M. GRIJALVA, AZ, Ranking Member 

Doug Lamborn, CO 

Robert J. Wittman, VA 

Tom McClintock, CA 

Paul Gosar, AZ 

Garret Graves, LA 

Aumua Amata C. Radewagen, AS 

Doug LaMalfa, CA 

Daniel Webster, FL 

Jenniffer Gonza ́lez-Colo ́n, PR 

Russ Fulcher, ID 

Pete Stauber, MN 

John R. Curtis, UT 

Tom Tiffany, WI 

Jerry Carl, AL 

Matt Rosendale, MT 

Lauren Boebert, CO 

Cliff Bentz, OR 

Jen Kiggans, VA 

Jim Moylan, GU 

Wesley P. Hunt, TX 

Mike Collins, GA 

Anna Paulina Luna, FL 

John Duarte, CA 

Harriet M. Hageman, WY 

Grace F. Napolitano, CA 

Gregorio Kilili Camacho Sablan, CNMI 

Jared Huffman, CA 

Ruben Gallego, AZ 

Joe Neguse, CO 

Mike Levin, CA 

Katie Porter, CA 

Teresa Leger Ferna ́ndez, NM 

Melanie A. Stansbury, NM 

Mary Sattler Peltola, AK 

Alexandria Ocasio-Cortez, NY 

Kevin Mullin, CA 

Val T. Hoyle, OR 

Sydney Kamlager-Dove, CA 

Seth Magaziner, RI 

Nydia M. Vela ́zquez, NY 

Ed Case, HI 

Debbie Dingell, MI 

Susie Lee, NV 

Vivian Moeglein, Staff Director 

Tom Connally, Chief Counsel 

Lora Snyder, Democratic Staff Director 

http://naturalresources.house.gov 

SUBCOMMITTEE ON ENERGY AND MINERAL RESOURCES 

PETE STAUBER, MN, Chairman 

WESLEY P. HUNT, TX, Vice Chair 

ALEXANDRIA OCASIO-CORTEZ, NY, Ranking Member 

Doug Lamborn, CO 

Robert J. Wittman, VA 

Paul Gosar, AZ 

Garret Graves, LA 

Daniel Webster, FL 

Russ Fulcher, ID 

John R. Curtis, UT 

Tom Tiffany, WI 

Matt Rosendale, MT 

Lauren Boebert, CO 

Wesley P. Hunt, TX 

Mike Collins, GA 

John Duarte, CA 

Bruce Westerman, AR, ex officio 

Jared Huffman, CA 

Kevin Mullin, CA 

Sydney Kamlager-Dove, CA 

Seth Magaziner, RI 

Nydia M. Vela ́zquez, NY 

Debbie Dingell, MI 

Rau ́l M. Grijalva, AZ 

Grace F. Napolitano, CA 

Susie Lee, NV 

Vacancy 

Vacancy 
(III) 

CONTENTS 

Page 

Hearing held on Thursday, May 23, 2024 ............................................................. 1 

Statement of Members: 

Stauber, Hon. Pete, a Representative in Congress from the State of 

Minnesota ...................................................................................................... 1 

Kamlager-Dove, Hon. Sydney, a Representative in Congress from the 

State of California ......................................................................................... 3 

Statement of Witnesses: 

Klein, Liz, Director, Bureau of Ocean Energy Management, Washington, 

DC .................................................................................................................. 4 

Prepared statement of ............................................................................... 6 

Questions submitted for the record ......................................................... 10 

Sligh, Kevin, Director, Bureau of Safety and Environmental Enforcement, 

Washington, DC ............................................................................................ 11 

Prepared statement of ............................................................................... 13 

Questions submitted for the record ......................................................... 18 

Cantor, Howard, Director, Office of Natural Resources Revenue, Denver, 

Colorado ......................................................................................................... 18 

Prepared statement of ............................................................................... 19 

Questions submitted for the record ......................................................... 22 

Additional Materials Submitted for the Record: 

Submissions for the Record by Representative Graves 

‘‘Big Oil’s Record Profits’’ .......................................................................... 39 

Submissions for the Record by Representative Huffman 

IMF Working Paper, ‘‘Global Fossil Fuel Subsidies Remain Large: 

An Update Based on Country-Level Estimates ................................... 33 

Final Vote Results for Roll Call 385, ‘‘Build Back Better Act’’ .............. 34 

(1) 

OVERSIGHT HEARING ON EXAMINING THE 

PRESIDENT’S FY 2025 BUDGET 

REQUEST FOR THE BUREAU OF OCEAN 

ENERGY MANAGEMENT, THE BUREAU OF 

SAFETY AND ENVIRONMENTAL 

ENFORCEMENT, AND THE OFFICE OF 

NATURAL RESOURCES REVENUE 

Thursday, May 23, 2024 

U.S. House of Representatives 

Subcommittee on Energy and Mineral Resources 

Committee on Natural Resources 

Washington, DC 

The Subcommittee met, pursuant to notice, at 10:06 a.m. in 

Room 1324, Longworth House Office Building, Hon. Pete Stauber 

[Chairman of the Subcommittee] presiding. 

Present: Representatives Stauber, Gosar, Graves, Westerman; 

Huffman, and Kamlager-Dove. 

Also present: Representative Carl. 

Mr. STAUBER. The Subcommittee on Energy and Mineral 

Resources will come to order. 

Without objection, the Chair is authorized to declare recess of the 

Subcommittee at any time. 

Under Committee Rule 4(f), any oral opening statements at 

hearings are limited to the Chairman and the Ranking Minority 

Member. 

I ask unanimous consent that the gentleman from Alabama, Mr. 

Carl, be allowed to participate in today’s hearing. 

Without objection, so ordered. 

I am now going to recognize myself for an opening statement. 

STATEMENT OF THE HON. PETE STAUBER, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MINNESOTA 

Mr. STAUBER. This morning, the Energy and Mineral Resources 

Subcommittee will review the Fiscal Year 2025 budget request for 

three agencies at the Department of the Interior charged with 

development of offshore resources in Federal waters, safety of offshore operations, and collection and management of Federal energy 

revenues. 

As we approach the twilight of this Administration, many of us 

eagerly anticipate an end to the regulatory onslaught that has 

smothered economic activity offshore with layers of bureaucratic 

red tape and new fees. The Biden administration’s Bureau of Ocean 

Energy Management has deliberately ignored statutory mandates 

for 4 consecutive years, proving themselves ineffective stewards of 

our offshore resources. 
2 

Despite these failures and transgressions, BOEM is requesting 

more funding in Fiscal Year 2025. BOEM stands nearly 2 years 

late in rolling out a new, 5-year plan for offshore and oil and gas 

development, an unprecedented delay in the program’s 44-year 

history. 

Today, we will hear promises from the Administration that, 

despite delays, this plan will soon take effect. They might downplay 

their control over a disappointing, inadequate three lease sale 

schedule. I expect Director Klein will claim these sales were merely 

steps to ensure the Bureau could hold future sales for wind leasing, 

offering minimal hope BOEM will hold them if the wind leasing 

demand is diminished in the future. 

It would be profoundly naı ̈ve for any American or member of this 

Committee to accept at face value assurances on offshore and oil 

and gas from Liz Klein and the Department of the Interior, 

especially after their clear reluctance to publish the plan they now 

vow to implement. 

In preparation for 2025, BOEM must focus on the singular Lease 

Sale 262, ensuring this sale offers premier acreage in the Gulf of 

Mexico. Known for yielding the world’s cleanest oil in terms of 

emission, keeping energy costs affordable, and bolstering American 

energy independence, we cannot let the Department of the Interior 

sacrifice the livelihoods and security of Americans on the altar of 

hollow commitments to environmental activists who care very little 

about our current or future energy needs. 

Taking notice of BOEM’s track record of canceling offshore sales, 

Congress had to mandate our nation’s last three lease sales: 258, 

259, and 261 in Alaska and the Gulf. These sales alone have generated over $645 million in bids, and promise billions in royalties 

from 4 million OCS acres. They also contributed to conservation 

and preservation efforts through the Land and Water Conservation 

Fund, LWCF, state and local allocations via GOMESA, and the 

Historic Preservation Fund. 

Canceling lease sales represents a blatant dereliction of duty, a 

profound disrespect to our nation’s resource management, and a 

deliberate betrayal of the American people’s trust, undermining the 

very foundation of our energy security. If the Department of the 

Interior truly prioritized environmental concerns, they would champion the expansion of oil and gas leasing in the Gulf of Mexico. 

More leasing means more funding for LWCF, GOMESA, and 

historic preservation, translating into more jobs, better benefits, 

enhanced community funding, and cleaner, more affordable energy. 

The Office of Natural Resources Revenue, ONRR, which reminds 

the public to pronounce its acronym like the word ‘‘honor,’’ also has 

betrayed Americans’ trust. Rather than fulfilling its fiduciary role, 

managing billions of dollars in annual revenues generated mostly 

through energy and mineral leases, ONRR has arbitrarily denied 

overpayment refund requests and ignored conflicts of interest. 

When industry contacts ONRR for regulatory guidance, the 

agency’s response can be summarized as, ‘‘Rules for thee, but not 

for me.’’ 

Worse yet, evidence suggests that ONRR staff ignored legal 

advice from the agency’s own attorneys and attempted to delete 

communications to keep them from being included in any 
3 

administrative record. Bad actors at ONRR must be held accountable to ensure energy and mineral revenues are properly managed, 

and all stakeholders are treated fairly. 

I now recognize the Ranking Member for her opening statement. 

STATEMENT OF THE HON. SYDNEY KAMLAGER-DOVE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF 

CALIFORNIA 

Ms. KAMLAGER-DOVE. Thank you, Chairman, and thank you to 

Director Klein, Director Sligh, and Director Cantor, for taking time 

to be with us here today. 

The Bureau of Ocean Energy Management, the Bureau of Safety 

and Environmental Enforcement, and the Office of Natural 

Resources Revenue are agencies critical to helping our country 

achieve our climate and clean energy goals, and support communities through the energy transition: efforts threatened by 

Republicans’ proposed budget cuts. 

The BOEM plays a vital role in facilitating the development of 

offshore and wind energy, which has the potential to create tens of 

thousands of jobs and significantly reduce our reliance on fossil 

fuels. During this Administration, BOEM has approved the 

country’s first eight commercial-scale wind projects, with a combined potential of over 10 gigawatts and enough clean energy to 

power nearly 4 million homes. The first commercial-scale offshore 

wind projects are already producing clean, renewable energy in the 

Northeast. 

BOEM has also announced a forward-looking leasing plan for offshore wind energy through 2028. Standing up for the offshore wind 

industry is absolutely necessary if we are to stave off the worst 

impacts of climate change. But we must do so responsibly, in a way 

that balances the priorities of communities, impacted tribes, other 

ocean users like the turtles, and the environment. 

BOEM also oversees oil and gas leasing, and last year finalized 

the next 5-year plan, which includes the fewest lease sales in history. The agency has also recently finalized rulemakings to better 

hold offshore oil and gas companies accountable for cleaning up 

their messes. 

We have heard a lot of gripes from the industry over the past 

year-and-a-half about the Administration’s actions to limit leasing 

and their accountability measures. But I will remind my colleagues 

that we recently uncovered allegations from the FTC that Big Oil 

has been colluding with OPEC to keep prices high for American 

consumers and artificially raise profits at the same time that they 

are already producing fossil fuels in record amounts. Talk about 

trust and honor. We have always known that further propping up 

the Big Oil industry is not in the best interest of the American 

people. Now it is simply becoming irrefutable. 

I look forward to hearing more from BOEM’s efforts to address 

the climate impacts of offshore oil and gas drilling, and how the 

agency is working to mitigate risks to communities most impacted 

by offshore fossil fuel development. 

BSEE was formed in the aftermath of the Deepwater Horizon 

tragedy, and is charged with ensuring that offshore energy industries operate safely and responsibly. While we all may have 
4 

different views on the future of the oil and gas industry, it is essential that current operations are conducted as safely as possible to 

minimize risk to workers and neighbors. The safety of our communities must be prioritized, especially the Black, Brown, Indigenous, 

and low-income communities that are disproportionately burdened 

with pollution. 

Last, but certainly not least, the Office of Natural Resources, 

Revenue or ONRR, is responsible for collecting and distributing 

energy and mineral resources revenue. ONRR manages one of the 

largest, non-tax revenues in the Federal Government. It distributes 

funds to states, tribes, and important Federal programs like the 

Land and Water Conservation Fund and National Historic 

Preservation Fund. 

Over the years, the Government Accountability Office and Office 

of the Inspector General have highlighted risks with ONRR and 

the agency’s ability to ensure Americans are receiving everything 

they are due, and the agency is working towards implementing the 

recommendations from these non-partisan entities. 

For those across the aisle concerned with ONRR’s processes, I 

will remind my colleagues that one side of this debate, a Federal 

agency works to ensure a fair return for the American people, and 

the other side, the extractive industries, have profit in mind, do not 

mind polluting, and have recently been charged with colluding with 

OPEC. 

Thank you, and I yield back. 

Mr. STAUBER. I thank Representative Kamlager-Dove for her 

opening statement. We will now move to introduce our witnesses. 

Let me remind the witnesses that under Committee Rules, they 

must limit their oral statements to 5 minutes, but their entire 

statement will appear in the hearing record. 

To begin your testimony, please press the ‘‘talk’’ button on the 

microphone. 

We use timing lights. When you begin, the light will turn green. 

When you have 1 minute remaining, the light will turn yellow. And 

at the end of the 5 minutes, the light will turn red, and I will ask 

you to please complete your statement at that time. 

I will also allow all witnesses to testify before Member 

questioning. 

Our first witness is Ms. Liz Klein. She is the Director of the 

Bureau of Ocean Energy Management in the Department of the 

Interior, and she is stationed right here in Washington, DC. 

Ms. Klein, you are now recognized for 5 minutes. 

STATEMENT OF LIZ KLEIN, DIRECTOR, BUREAU OF OCEAN 

ENERGY MANAGEMENT, WASHINGTON, DC 

Ms. KLEIN. Thank you, Chairman Stauber, Ranking Member 

Kamlager-Dove, and members of the Subcommittee. I am pleased 

to appear before you today to discuss the mission and proposed 

budget of the Bureau of Ocean Energy Management, or BOEM. My 

name is Liz Klein, and I am the Director of BOEM at the 

Department of the Interior. 

BOEM is taking a leading role in transitioning the United States 

to a clean energy future, one that will advance renewable energy, 

create good-paying jobs, and ensure economic opportunities are 
5 

accessible to all communities while managing the development of 

oil and gas resources on the Outer Continental Shelf, or OCS, in 

an environmentally and economically responsible manner. The Fiscal Year 2025 budget proposal includes $52 million for 

BOEM’s Renewable Energy Program to further advance the development of renewable energy projects in Federal waters. 

The Biden-Harris administration has set ambitious goals to 

harness the significant offshore wind resources in the United 

States and combat the existential threat of climate change, 

including the goals of deploying 30 gigawatts of offshore wind 

energy capacity by 2030 and 15 gigawatts of floating offshore wind 

energy capacity by 2035. BOEM is making considerable progress 

towards achieving those objectives. We are taking a thoughtful, allof-government approach on issues like efficient permitting and 

tribal engagement to build a robust offshore wind industry that 

benefits communities and co-exists with other ocean uses. 

Our efforts are working. Under this Administration, BOEM has 

approved eight commercial offshore wind projects, up from zero 

when President Biden took office. These projects have the potential 

to generate over 10 gigawatts of clean energy, enough to power 

nearly 4 million homes. 

Additional projects are undergoing review and benefiting from 

the hard work this Administration has done to streamline reviews 

and maximize interagency collaboration. Two projects, Vineyard 

Wind and South Fork, are already in operation and sending power 

to the grid. A new construction season is underway, and will 

continue through this summer. 

This Administration is also supporting additional future projects 

through a steady pipeline of lease sales. Since January 2021, 

BOEM has held four offshore wind lease auctions: one offshore 

New York/New Jersey, one offshore the Carolinas, and the firstever sales offshore California and in the Gulf of Mexico. Together 

these auctions generated over $5 billion in high bids. 

Looking towards the future, last month Secretary Haaland 

announced a new 5-year offshore wind lease schedule, which 

includes up to 12 potential offshore wind energy lease sales 

through 2029. We anticipate holding lease sales offshore the central Atlantic, Oregon, in the Gulf of Maine, and in the Gulf of 

Mexico later this year, and the schedule outlines our priority focus 

areas in the years to come. 

To continue this momentum, the offshore wind energy industry 

will also need a well-trained workforce and a diverse, comprehensive supply chain throughout the various stages of facility 

planning, construction, and operation. BOEM is doing our part to 

support these efforts. 

Thanks to strong state and industry partnerships, multiple 

domestic supply chain projects are already underway, including a 

first-of-its-kind wind energy port in New Jersey, the first sub-sea 

cable manufacturing facility in South Carolina, and a Jones Actcompliant offshore wind installation vessel being constructed in 

Texas that is using more than 14,000 tons of domestic steel sourced 

mostly from Alabama, West Virginia, and North Carolina. 

The Fiscal Year 2025 budget also includes $67 million for 

BOEM’s conventional energy program. As conventional energy 
6 

sources continue to play an important role in our economy, the 

OCS Lands Act requires BOEM to prepare an oil and gas leasing 

program that includes a proposed 5-year schedule of oil and gas 

lease sales. 

In December 2023, Secretary Haaland approved the final 2024– 

2029 National OCS Oil and Gas Leasing Program. The program 

schedules three oil and gas lease sales in the Gulf of Mexico 

Program Area, one each in 2025, 2027 and 2029. The proposed 

schedule will meet national energy needs for the next 5 years and 

balance the potential for environmental damage, the discovery of 

oil and gas, adverse impacts on the coastal zone, and the transition 

to cleaner energy sources. 

As of May 1, 2024, BOEM is managing 2,410 active oil and gas 

leases on over 13 million acres of the OCS. Approximately 78 

percent of these leases are not yet in production. 

Thank you once again for the opportunity to testify. BOEM’s 

proposed Fiscal Year 2025 budget reflects the Administration’s continued commitment to ensuring a clean and low-cost energy future, 

one that is sustainable and beneficial to all Americans. Our work 

has the potential to shape future generations for the better. My 

team and I look forward to working with the Subcommittee on 

these important issues moving forward, and I would be happy to 

answer any questions you may have. 

[The prepared statement of Ms. Klein follows:] 

PREPARED STATEMENT OF ELIZABETH KLEIN, DIRECTOR, BUREAU OF OCEAN ENERGY

MANAGEMENT, U.S. DEPARTMENT OF THE INTERIOR

Chairman Stauber, Ranking Member Ocasio-Cortez and members of the 

Subcommittee, I am pleased to appear before you today to discuss the mission and 

proposed budget of the Bureau of Ocean Energy Management (BOEM, Bureau). My 

name is Liz Klein, and I am the Director of BOEM at the Department of the 

Interior (Department). 

Introduction 

BOEM is taking a leading role in transitioning the U.S. to a clean energy future— 

one that will advance renewable energy, create good-paying jobs, and ensure 

economic opportunities are accessible to all communities, including underserved 

communities—while managing the development of oil and gas resources on the 

Outer Continental Shelf (OCS) in an environmentally and economically responsible 

manner. 

BOEM is working with Tribal Nations, other Federal agencies, state and local 

governments, potentially impacted communities, ocean users, and other key stakeholders to ensure that offshore energy development is done responsibly and 

informed by the best available science and Indigenous knowledge. These partnerships are invaluable assets in our mission to create a cleaner, more sustainable 

energy future for our nation. 

FY 2025 Budget Request 

The FY 2025 President’s Budget requests $242 million in total budget authority 

($183 million in net current discretionary appropriations and $59 million in 

offsetting collections) to support the Bureau’s commitment to overseeing the nation’s 

offshore energy, mineral, and geological resources through proper environmental 

and economic stewardship. 

BOEM’s FY 2025 budget request advances the Administration’s priorities in the 

following areas: 

• Facilitating the transition to a clean energy economy; 

• Supporting underserved and disproportionately affected communities; and 

• Strengthening Tribal sovereignty and self-determination. 
7 

These strategic investments support the American people and aim to establish a 

foundation for sustained growth and prosperity for future generations. 

Facilitating the Transition to a Clean Energy Economy 

The FY 2025 Budget includes $52 million for BOEM’s Renewable Energy Program 

to further advance the development of renewable energy projects in Federal waters. 

The Biden-Harris Administration has set ambitious goals to harness the significant offshore wind resources in the U.S. and combat the existential threat of climate 

change: the deployment of 30 gigawatts of offshore wind energy capacity by 2030 

and 15 gigawatts of floating offshore wind energy capacity by 2035. BOEM is 

making considerable progress towards achieving these objectives. 

Throughout the offshore wind planning process, BOEM works with Tribes, other 

government agencies, ocean users, academia, and stakeholders to identify areas on 

the U.S. OCS that appear most suitable for commercial offshore wind development, 

while having the fewest apparent environmental and user conflicts. 

We are taking a thoughtful, all-of-government approach on issues like efficient 

permitting and Tribal engagement to build a robust offshore wind industry that 

benefits communities and co-exists with other ocean uses. This includes working collaboratively with our government partners and others to ensure that any future offshore energy development is done safely and responsibly and relies on the best 

available science and Indigenous knowledge. For example, BOEM is collaborating 

with NOAA’s National Centers for Coastal Ocean Science to engage our vast, 

diverse set of stakeholders and employ a comprehensive spatial model that analyzes 

entire marine ecosystems to identify the most suitable areas for wind energy 

development. 

The Department recently announced that BOEM and the Bureau of Safety and 

Environmental Enforcement (BSEE) have finalized updated regulations for renewable energy development on the OCS (Renewable Energy Modernization Rule). The 

final rule will promote offshore wind deployment while reducing costs for developers 

by increasing certainty, modernizing regulations, streamlining overly complex processes and removing unnecessary ones, clarifying ambiguous regulatory provisions, 

and enhancing compliance requirements. 

BOEM has done extensive work to improve our processes for reviewing offshore 

wind projects. In order to increase transparency and consistency, we released 

guidance in August 2023 to outline BOEM’s criteria for when to initiate the environmental review of offshore wind project plans. The guidance establishes a preapplication process to improve engagement with cooperating agencies and federally 

recognized Tribes. This guidance was developed with input from our government 

partners, the regulated community, and interested stakeholders. 

Our efforts are working. Under this Administration, the Bureau has approved 

eight commercial offshore wind projects—up from zero when President Biden took 

office. These projects have the potential to generate over 10 GW of clean energy, 

enough to power nearly 4 million homes. Additional projects are undergoing review 

and benefiting from the hard work this Administration has done to streamline 

reviews and maximize interagency collaboration; we currently have five more project 

plans under environmental review, and we expect additional plans in the coming 

year. 

Two projects, Vineyard Wind and South Fork, are already in operation and 

sending power to the grid. A new construction season is underway and will continue 

through the summer, during which more offshore wind projects will come online. 

This Administration is also supporting additional future projects through a steady 

pipeline of lease sales. Since January 2021, BOEM has held four offshore wind lease 

auctions: a record-breaking lease sale offshore New York—New Jersey, offshore the 

Carolinas, and the first-ever sales offshore California and in the Gulf of Mexico. 

Together, these auctions generated over $5 billion in high bids. 

Looking towards the future, last month Secretary Haaland announced a new fiveyear offshore wind lease schedule, which includes up to 12 potential offshore wind 

energy lease sales through 2029. We anticipate holding lease sales offshore the 

Central Atlantic, Oregon, and in the Gulf of Maine and the Gulf of Mexico later this 

year, and the schedule outlines our priority focus areas in the years to come. 

In response to the rapid growth in demand for offshore wind along the Atlantic 

coast and the associated need to bring additional focus and presence to BOEM’s 

work on this priority issue, BOEM proposes to establish an Atlantic Regional Office 

by realigning its existing Atlantic-related energy and minerals functions and 

reassigning staff from headquarters and other BOEM regional offices. Creation of 

the Office will address the increase in requests for engagement with local communities along the Atlantic by providing additional opportunities for access to and collaboration with BOEM. Supporting Administration renewable energy goals requires 
8 

dedicated, regionally focused management and staff that can develop integrated 

strategies for dealing with issues throughout the Atlantic region, build lasting relationships with regional partners, and provide senior-level access to States, Tribes, 

communities, and stakeholders. 

To continue this momentum, the offshore wind energy industry will also need a 

well-trained workforce and a diverse, comprehensive supply chain throughout the 

various stages of facility planning, construction, and operation. 

BOEM is doing our part in this effort and has taken steps to encourage unionbuilt projects and support the development of a domestic supply chain. BOEM is 

finding opportunities to incentivize the domestic sourcing of major components, such 

as blades, turbines, and foundations; develop a highly skilled and well-trained 

domestic workforce; and develop lease stipulations that strongly encourage Project 

Labor Agreements (PLAs) for project construction. PLAs help ensure a safe and 

well-trained workforce for the construction and operations of offshore facilities. 

The Carolina Long Bay, California, and Gulf of Mexico lease sales included a 20 

percent credit for bidders that agreed to contribute to programs or initiatives that 

support offshore wind workforce training programs or development of a U.S. offshore wind domestic supply chain. These bidding credits generated approximately 

$160 million in future investments for these critical programs and initiatives. 

Thanks to strong state and industry partnerships, multiple domestic supply chain 

projects are already underway, including: a first-of-its-kind wind energy port in New 

Jersey; the first subsea cable manufacturing facility in South Carolina; and a Jones 

Act-compliant offshore wind installation vessel being constructed in Texas that is 

using more than 14,000 tons of domestic steel, sourced mostly from Alabama, West 

Virginia, and North Carolina. On September 21, 2023, nine East Coast States and 

four Federal agencies signed the Federal-State Memorandum of Agreement on East 

Coast Offshore Wind Supply Chain Collaboration, to strengthen regional collaboration on offshore wind supply chain development. 

Combined with state initiatives, these efforts promote investment in the domestic 

supply chain and delivery of benefits and opportunities to underserved, disadvantaged, and overburdened communities. These efforts will also catalyze the offshore 

wind industry domestically and create certainty for stakeholders, industry, and 

ocean users alike. 

As a champion of the Biden-Harris Administration’s all-of-government approach, 

BOEM will continue to partner with the multiple levels of government, Tribal 

Nations, and governors of U.S. Territories to expand responsible offshore wind 

energy development. 

Conventional Energy 

The FY 2025 Budget also includes $67 million for BOEM’s Conventional Energy 

Program. BOEM’s obligations include administering existing leases, permitting geological and geophysical surveys, reviewing exploration and development plans, 

evaluating resources, and developing and implementing a National OCS Oil and 

Gas Leasing Program. In meeting these obligations, BOEM supports energy security, environmental protection, and economic development through providing fair 

market value for the American taxpayer, mitigating adverse environmental impacts, 

and maintaining adequate financial assurance by leaseholders. As of May 1, 2024, 

BOEM is managing 2,410 active oil and gas leases on over 13 million acres of the 

OCS. Approximately 78 percent of these leases are not yet in production. 

As conventional energy sources continue to play an important role in our 

economy, the OCS Lands Act requires BOEM to prepare and periodically revise an 

oil and gas leasing program that includes a proposed schedule of oil and gas lease 

sales for the five-year period following approval or reapproval of the program. 

In December 2023, Secretary Haaland approved the final 2024–2029 National 

OCS Oil and Gas Leasing Program. The Program schedules three oil and gas lease 

sales in the Gulf of Mexico Program Area; one each in 2025, 2027, and 2029. The 

proposed lease sale schedule will meet national energy needs for the next five years 

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

and adverse impacts on the coastal zone. The FY 2025 Budget request will ensure 

the continued effective implementation of the 2024–2029 National OCS Oil and Gas 

Leasing Program and BOEM’s continued ability to provide accurate and accessible 

geologic and geophysical data in support of U.S. offshore energy development, 

economic security, and environmental interests. 

In addition, in April 2024, the Department announced the final Risk Management 

and Financial Assurance for OCS Lease and Grant Obligations rule to protect taxpayers from covering costs that should be borne by the oil and gas industry when 

offshore platforms require decommissioning. This rule, which updated 20-year-old 
9 

regulations, substantially strengthens financial assurance requirements for the 

offshore oil and gas industry operating on the OCS. 

Resiliency and Restoration 

The FY 2025 Budget includes $15 million to continue advancing marine mineral 

activities that contribute toward the Administration’s goal of increasing climate 

change resilience through the application of science to make informed decisions, 

incorporation of nature-based solutions and other adaptation strategies, and continued development of strong partnerships to ensure our Nation’s coasts are 

sustainably managed, protected, and preserved for current and future generations. 

Pursuant to the OCS Lands Act, BOEM is the Federal authority overseeing the 

use of marine minerals across the billions of acres that make up the OCS. The 

Bureau may convey, on a noncompetitive basis, the rights to OCS sand and other 

sediment to Federal, state, and local government agencies for use in shore protection, beach and wetlands restoration projects, or other construction projects funded 

or authorized by the Federal government. 

BOEM’s Marine Minerals Program ensures environmentally responsible stewardship and conscientious management of the Nation’s OCS solid mineral resources to 

support resilient coasts, natural disaster preparedness, climate change adaptation, 

and critical infrastructure development and protection. 

In addition, BOEM recognizes that OCS critical minerals may in the future be 

vital to the advancement of clean energy technology, as well as the Nation’s security 

and economy. BOEM continues to gather information about critical minerals that 

may be located on the OCS and collect baseline data on the ecological communities 

and conditions associated with potential critical mineral deposits. 

In support of these efforts, BOEM will continue developing and enhancing its 

National Offshore Sand Inventory, Marine Minerals Information Management 

System, and National Offshore Critical Minerals Inventory. 

Environmental Program 

The FY 2025 Budget includes $87 million for BOEM’s environmental program. 

The program provides a foundation to ensure programmatic decision-making is 

guided by the best available environmental research and data to inform the public, 

stakeholders, diverse ocean users, and external decision-makers about the potential 

impacts of OCS energy and mineral activities. This work enables BOEM to identify 

risks and mitigation strategies to assist with conservation and protection of environmental and cultural resources. 

For 50 years, the Bureau’s Environmental Studies Program (ESP) has funded 

research on the potential environmental impacts of activities the Bureau authorizes. 

Because of the quality, scale, and duration of studies performed under its auspices, 

the ESP is a leading contributor to the growing body of scientific knowledge about 

the Nation’s marine and coastal environments, leveraging partnerships with 

academic institutions and other Federal agencies to produce top-tier scientific work. 

BOEM uses the ESP and other research to evaluate the environmental impacts 

of energy, mineral, and geological development and to develop measures to avoid, 

minimize, mitigate, and monitor those impacts for incorporation in leases, plans, 

and permits. These measures are the fabric for regulatory compliance work by 

BOEM as well as BSEE, and they are developed through National Environmental 

Policy Act documents and analyses required under other statutes. 

BOEM’s environmental program also hosts the Center for Marine Acoustics 

(CMA), a one-of-its kind center of expertise in government focused on ocean noise 

and impacts to marine life. Launched in 2020, the CMA provides expertise and 

leadership to drive best practices, expand research on underwater sound, seek policy 

improvements, and improve messaging related to ocean noise issues. 

Enhancing Tribal Engagement 

BOEM is committed to upholding its Tribal trust responsibilities and fostering 

working relationships based on trust and meaningful consultation. BOEM engages 

with Tribal Nations at all phases of the renewable energy leasing process to incorporate Indigenous knowledge and Tribal perspectives. This feedback is critical to 

help inform our decisions. 

BOEM wants Tribal communities, ocean users, and stakeholders to have the 

information they need and an equitable and accessible seat at the table. BOEM’s 

FY 2025 budget request of $2.6 million supports the hiring of additional personnel 

to enhance and increase BOEM’s ability to maintain open and transparent communication and increase engagement opportunities with Tribal governments and organizations, Alaska Natives and Alaska Native Claims Settlement Act Corporations, 

Native Hawaiian Organizations, and other Indigenous communities. BOEM’s budget 
10 

request would also support the development of a Center for Tribal Engagement, 

which would provide funding and additional capacity-building to support Tribal 

members in more active participation in consultation, coordination, data collection, 

assessment, and monitoring for renewable activities. 

BOEM’s approach aims to ensure meaningful involvement through trust, respect, 

and shared responsibility as part of a deliberative process for effective collaboration 

and informed decision-making. 

Conclusion 

Thank you once again for the opportunity to testify. BOEM’s proposed FY 2025 

budget reflects the Administration’s continued commitment to ensuring a clean and 

low-cost energy future, one that is sustainable and beneficial to all Americans. Our 

work has the potential to shape future generations for the better, and my team and 

I look forward to working with the Subcommittee on these important issues moving 

forward. I would be happy to answer any questions you may have. 

QUESTIONS SUBMITTED FOR THE RECORD TO MS. LIZ KLEIN, DIRECTOR, BUREAU OF

OCEAN ENERGY MANAGEMENT, U.S. DEPARTMENT OF THE INTERIOR

Ms. Klein did not submit responses to the Committee by the appropriate 

deadline for inclusion in the printed record. 

Questions Submitted by Representative Westerman 

Question 1. The Infrastructure Investment and Jobs Act was signed into law (P.L. 

117-58) on November 15, 2021. Section 340307 amends the Outer Continental Shelf 

Lands Act to authorize the Secretary of the Interior to grant a lease, easement, or 

right-of-way on the Outer Continental Shelf for activities that ‘‘provide for, support, 

or are directly related to the injection of a carbon dioxide stream into sub-seabed 

geologic formations for the purpose of long-term carbon sequestration.’’ The Act 

requires the Bureau of Safety and Environmental Enforcement jointly with the 

Bureau of Ocean Energy Management to promulgate regulations within one year of 

the law’s enactment. Given the evolving landscape of carbon capture and sequestration (CCS) and its importance for carbon management, enhanced oil recovery, and 

other evolving uses; I’d like to understand BOEM’s current stance and plans 

regarding CCS on the Outer Continental Shelf (OCS). 

1a) Can you provide an update on where BOEM and BSEE are in drafting and 

publishing the necessary regulations for CCS? Specifically, when can we expect these 

proposed regulations to be available for public comment? 

1b) Will companies holding existing OCS oil and gas leases be permitted to convert 

these leases into CCS leases, or will they need to acquire new leases specifically for 

CCS activities? If conversion is not allowed, what is the rationale behind this 

decision? 

1c) Can companies currently seek new leases specifically for CCS under 43 USC 

1337(p)? If so, what is the current process for obtaining such a lease? If not, is it 

because BOEM is awaiting the finalization of the new regulations? 

West Coast Decommissioning/Chumash Sanctuary 

Question 2. On behalf of a broad community consortium, the Northern Chumash 

Tribal Council submitted their sanctuary nomination in July 2015. NOAA’s Office 

of National Marine Sanctuaries issued a Notice of Intent to begin the designation 

process for the proposed sanctuary in November 2021. 

Now that NOAA has formally proposed the Chumash National Marine Sanctuary, 

it doesn’t allow for an exception for decommissioning. BOEM and BSEE are 

currently in the process of working towards the decommissioning of the platforms 

within the proposed sanctuary. If the proposed sanctuary is finalized without a 

decommissioning exception, how will that impact BOEM and BSEE’s mission to have 

these platforms decommissioned? 
11 

Financial Assurance 

Question 3. The BOEM Financial Assurance Rule is now finalized. BOEM has 

discretion under that rule on when and whether to call on any bonds granted in its 

favor. 

1a) Does BOEM intend to call on those bonds in all instances when a current 

lessee/owner fails to perform (e.g., even where there are predecessors)? If not, why 

not? 

1b) Will BOEM make the proceeds of those bonds available to predecessors who 

are called upon to perform? If not, why not? 

Question 4. During his administration, President Obama designated the Bears 

Ears National Monument in December 2016, recklessly restricting 1.35 million acres, 

and expanded the Hawaiian Marine National Monument, a 600,000 square acre 

designation, in the waning months of his term in August 2016, making it the largest 

protected area on Earth at the time. 

4a) As we thankfully approach the end of President Biden’s term, what funding 

in the BOEM budget is allocated for preparing reviews; analyses, or required 

documents to withdraw lands and waters under OCSLA, the Antiquities Act, or other 

statutes? 

4b) Have you participated in, or are you aware of any plans within the Department 

of the Interior to carry out such withdrawals in the near future? If so, under which 

program would these actions be carried out, and which line item from FY24 or FY25 

funding would be utilized to prepare for such actions? 

Mr. STAUBER. Thank you, Director Klein. Our next witness is Mr. 

Kevin Sligh. He is the Director of the Bureau of Safety and 

Environmental Enforcement in the Department of the Interior, and 

he is stationed right here in Washington, DC. 

Mr. Sligh, you are now recognized for 5 minutes. 

STATEMENT OF KEVIN SLIGH, DIRECTOR, BUREAU OF SAFETY 

AND ENVIRONMENTAL ENFORCEMENT, WASHINGTON, DC 

Mr. SLIGH. Good morning, all. Chairman Stauber, Acting 

Ranking Member Kamlager-Dove, and members of the Subcommittee, thank you for the opportunity to appear today to discuss the President’s Fiscal Year 2025 budget request for the 

Bureau of Safety and Environmental Enforcement, or BSEE for 

short. I am Kevin Sligh, the Director of BSEE, and it is my distinct 

honor to be with you here today. 

BSEE’s mission is to promote safety, protect the environment, 

and conserve offshore resources as we regulate and monitor all offshore energy operations, ensuring safe and responsible energy 

development from exploration through the facility, installation, production, and ultimately decommissioning on the Outer Continental 

shelf, or OCS. 

BSEE’s Fiscal Year 2025 budget request is for $252.6 million in 

total funding. This includes $170.4 million in current appropriations and $82 million in offsetting collections from rental receipts, 

cost recoveries, and inspection fees. 

BSEE’s Fiscal Year 2025 OCS priorities include strengthening 

oversight, regulatory and research capabilities, building and 

sustaining a high-performing workforce, enhancing BSEE’s tribal 

engagement program, decommissioning orphaned infrastructure, 

facilitating carbon sequestration, and supporting the development 

of a safe, robust, and sustainable domestic renewable energy 

industry. 
12 

BSEE’s budget request fully supports the Biden-Harris 

administration’s priorities to oversee safe and responsible energy 

production, help address the climate crisis, and deploy 30 gigawatts 

of offshore wind by 2030 and 15 gigawatts of floating wind by 2035. 

BSEE is requesting an increase in funding to help create goodpaying jobs and restore ecosystems by actively addressing the challenges associated with timely decommissioning, and with particular 

focus on orphan wells and infrastructure. 

This funding will help to properly plug and abandon orphan 

wells on the OCS and properly decommission associated orphan 

pipelines and structures. Plugging these wells is critical to helping 

reduce pollution risk and eliminate safety hazards. These orphan 

wells create risks and could cause oil spills that could occur after 

weather-related events, and would have significant impacts on 

marine and coastal environments in Federal and state waters. 

BSEE will also continue to focus on strengthening our decommissioning oversight capabilities to meet end-of-life cycle demands. 

Leaseholders enter a contractual obligation that includes decommissioning requirements that must be met to protect both the environment and the American taxpayer, and BSEE will continue to 

enforce these obligations. As a result of our commitment, BSEE is 

driving the advancement of safety performance in the offshore wind 

industry. 

The Fiscal Year 2025 budget request would enable BSEE to conduct timely and rigorous reviews of industry plans, carry out a 

robust compliance assurance program, and focus on renewable 

energy data analysis. 

While offshore renewable energy represents a relatively new area 

of work for BSEE, we continue to remain focused on ensuring oil 

and gas development and production is safe and environmentally 

sustainable. 

BSEE’s request also includes an additional $1.5 million to support the management of carbon sequestration on the OCS in 

conjunction with BOEM, and we are currently working with BOEM 

to finalize a proposed rule for carbon sequestration, which we 

expect to publish later this year. 

BSEE is proud to serve the American public, and conducts 

proactive and regular engagement with energy and marine 

minerals stakeholders at the Federal, state, tribal, and local agency 

levels, NGOs, and their national counterparts and the public. We 

aim to expand our government-to-government interaction with 

Tribal Nations. The Fiscal Year 2025 budget includes an $800,000 

request for BSEE’s tribal engagement program to ensure timely 

and meaningful coordination and consultation with tribes. 

And as BSEE moves towards the expansion of the offshore 

renewable energy industry while continuing to oversee safe and 

responsible offshore oil and gas production, we consistently aim 

with the future in mind. Updating our processes and framing our 

work with a particular emphasis on preparedness enables BSEE to 

focus on reducing risk to the people and the environment, and 

support responsible and efficient energy production. 

If I may, I would like to take this opportunity to highlight the 

dedication of our BSEE workforce as we embark on preparing for 

the future of offshore energy development and production for the 
13 

American public. BSEE’s 2023–2026 strategic plan has four goals 

driving our mission: people, protection, reliability, and sustainability. Without the first goal, people, we will never be able to 

accomplish the other three. 

I want to express my sincere appreciation for your continued support of BSEE’s workforce and our mission to promote safe and environmentally sustainable offshore energy operations. Congressional 

support of our budget would allow BSEE to build on the advancements we have made, and to expand our capabilities to provide 

even more effective off-site OCS operations. 

Thank you, Chairman Stauber and Acting Ranking Member 

Kamlager-Dove, for inviting me here today. I will be happy to 

answer any questions that the Subcommittee may have for me. 

[The prepared statement of Mr. Sligh follows:] 

PREPARED STATEMENT OF KEVIN SLIGH, DIRECTOR, BUREAU OF SAFETY AND

ENVIRONMENTAL ENFORCEMENT, U.S. DEPARTMENT OF THE INTERIOR

Chairman Stauber, Ranking Member Ocasio-Cortez, and Members of the 

Subcommittee, I am pleased to join you today to discuss the President’s FY 2025 

Budget Request for the Bureau of Safety and Environmental Enforcement (BSEE, 

Bureau), a bureau of the Department of the Interior (DOI, Department). 

FY 2025 Budget Request 

BSEE’s FY 2025 Budget Request is $252.6 million in total funding, including $170.4 million in current appropriations and $82.2 million in offsetting collections 

from rental receipts, cost recoveries, and inspection fees. 

BSEE’s FY 2025 Budget Request fully supports President Biden’s priority for 

tackling the climate crisis and increasing renewable energy production safely and 

responsibly, with the goal of deploying 30 gigawatts (GW) of offshore wind capacity 

by 2030 and 15 GW of floating offshore wind capacity by 2035. The FY 2025 Budget 

Request supports BSEE’s continued work in its renewable and conventional energy 

programs, focusing on safe and responsible offshore energy development, pushing 

the industry forward towards a more robust and meaningful safety culture, and 

enhancing regulations to protect environmental, cultural, and biological resources on 

the Outer Continental Shelf (OCS). BSEE’s FY 2025 Budget Request continues to 

focus attention on priority areas and builds on BSEE’s current work that reflects 

its commitment to transparent and data-driven operations. This budget will promote 

safe and environmentally responsible programs, including decommissioning 

orphaned wells and infrastructure, preparing for the expansion of offshore wind 

energy generation, developing a carbon sequestration program, and bolstering 

BSEE’s Tribal Liaison Program. 

The FY 2025 Budget Request will enable BSEE to continue strengthening oversight, regulatory, and research capabilities on the OCS by building and sustaining 

staff capabilities. BSEE will direct resources to the recruitment, training, and support of expert engineers, geoscientists, and inspectors; oil spill planning, prevention, 

and response specialists; and employees in other disciplines to support the implementation of BSEE’s regulatory oversight responsibilities and evolving offshore 

energy landscape. BSEE will continue outreach and dialogue with experts from academia, industry, nongovernmental organizations, and other governmental agencies 

to enhance the knowledge base of technical personnel related to innovative technologies, regulatory gaps, real-time monitoring capabilities, and risk-based decision 

making for safety and environmental enforcement. 

The energy resources and activities under BSEE’s jurisdiction are vast, as the 

OCS is an important source of energy for the U.S., with significant oil and gas production and a growing offshore wind industry. The Nation’s first eight commercialscale offshore wind projects on the OCS were recently approved, and BSEE is 

reviewing an additional 18 projects over 15 leases. 

From January through October 2023, OCS oil and gas leases offshore Alaska, 

California, and in the Gulf of Mexico produced approximately 566 million barrels 

of oil and 628 billion cubic feet of natural gas. This production accounted for 

approximately 15 percent of domestic oil production and 2 percent of domestic 

natural gas produced in the same period. Ninety-nine percent of offshore oil and gas 

production occurred in the Gulf of Mexico. Deepwater wells (those in greater than 
14 

or equal to 1,000 feet water depth) accounted for 91 percent of all barrels of oil 

equivalent produced on the OCS. 

Decommissioning 

Shallow water areas of the Gulf of Mexico, first drilled in 1947, are undergoing 

significant well and infrastructure decommissioning that BSEE believes will continue to accelerate, leading to an increase in regulatory oversight and workload. 

Similarly, in the Pacific Region, eight of the 23 platforms no longer produce oil and 

gas and are located on terminated leases that will not resume production. BSEE 

expects to receive decommissioning applications for these eight platforms and associated pipelines and infrastructure in the near term. 

While decommissioning on the OCS is the obligation of the oil and gas industry, 

BSEE must ensure that wells and infrastructure used in exploration, development, 

and production activities undertaken pursuant to the Outer Continental Shelf Lands 

Act (OCSLA) are decommissioned properly and in a timely manner to remove 

unnecessary hazards to safety, navigation, and the environment. 

When a company responsible for decommissioning is bankrupt, or predecessor 

companies with a regulatory obligation no longer exist or are financially unable to 

fund their decommissioning obligation, the federal government may need to 

decommission this orphaned infrastructure using American taxpayer dollars. The 

Biden-Harris Administration is committed to addressing these orphaned oil and gas 

wells and infrastructure that pose serious safety hazards and cause ongoing air, 

water, and other environmental damage across the country. In the last year, BSEE 

enhanced its enforcement and civil penalty policies to address industry’s performance and delinquent decommissioning obligations on terminated leases and rightsof-way. BSEE is evaluating additional enforcement strategies to encourage timely 

decommissioning. 

BSEE will continue to address the immediate and urgent need to properly plug 

and abandon orphaned wells on the OCS and remove orphaned pipelines and other 

infrastructure from the seabed. Requested funding would augment forfeited financial assurances the Bureau of Ocean Energy Management (BOEM) receives from 

operators, proceeds from bankruptcy proceedings, and potential funds from the 

federal orphaned wells program established by the Bipartisan Infrastructure Law 

(BIL) to address the most immediate and urgent needs to reduce the risk of safety 

incidents and pollution. 

Offshore Wind and Renewable Energy 

In addition to regulating oil and gas operations on the OCS, BSEE continues to 

support the development of a safe, robust, and environmentally responsible offshore 

renewable energy industry in the United States. The first two OCS offshore wind 

projects are now generating power, and as the industry rapidly grows, BSEE will 

continue to engage with offshore wind developers to identify and promote best practices for ensuring worker safety and environmental protection. Engagement with 

industry, federal partners, including BOEM and the U.S. Coast Guard, Tribal 

Nations, and stakeholders continues to inform the development of renewable energy 

program functions. 

DOI is reviewing its siting and permitting processes on public lands and in offshore waters to identify steps that can be taken to increase renewable energy 

production, with the goal of deploying 30 GW of offshore wind capacity by 2030 and 

creating good-paying jobs that support working American families. As of November 

2023, the Department has issued 27 offshore wind commercial leases in the Atlantic, 

five offshore wind commercial leases off the Pacific coast, and one lease in the Gulf 

of Mexico. In 2023, the first two offshore wind projects began construction, and on 

November 29, 2023, South Fork Wind became the first OCS wind project to deliver 

electricity to the grid; on January 3, 2024, Vineyard Wind became the second. By 

the end of 2024, we expect that construction and installation will commence on four 

additional projects. An additional 18 wind energy projects are currently under 

review. Based on this activity and industry estimates, BSEE anticipates receiving 

over 40,000 engineering reports for review by the end of FY 2025, including facility 

design reports, fabrication and installation reports, and certified verification agent 

reports. BSEE’s FY 2025 Budget Request would enable hiring to complete timely 

and rigorous industry plan reviews, establish a robust compliance assurance 

program, and conduct renewable energy research. 

Carbon Sequestration 

In FY 2025, BSEE is requesting $1.5 million to hire additional staff to establish 

a Carbon Sequestration Program authorized under BIL. The FY 2025 Budget 

Request would allow BSEE to actively pursue solutions to address the unique chal-
15 

lenges presented by sub-seabed CO2 storage. A multi-disciplinary team funded 

through the request would focus on identifying relevant industry standards and 

enforcement requirements, determining applied research needs and requirements, 

creating baseline risk assessment criteria for carbon storage projects, reviewing flow 

modeling, assessing conservation considerations, and instituting performance and 

safety standards. 

BSEE and BOEM have been developing offshore carbon sequestration regulations 

that are comprehensive and rely on the best available science for oversight of carbon 

sequestration activities on the OCS. We are reviewing numerous industry standards 

and existing regulatory frameworks, and engaging with experts, both domestically 

and internationally. BSEE is engaging other federal agencies with associated expertise, including the Department of Energy, and evaluating the federal government’s 

existing geological sequestration programs and frameworks, and mapping the applicability to the OCS environment. This ongoing work will facilitate the Department’s 

ability to make sure sequestration operations will be safe and environmentally 

sustainable. 

Inspections and Permitting 

Each year BSEE’s 120+ inspectors conduct over 20,000 inspections at more than 

1,750 facilities on the OCS. BSEE’s oil and gas inspection strategy relies on a tiered 

approach to ensure the Bureau meets its statutory requirements, fulfills regional 

and national priorities, and uses its workforce effectively to inspect each offshore oil 

and gas facility at least once a year. In FY 2025, BSEE will continue to execute 

its Risk-Based Inspection (RBI) Program, which allows for targeted inspections of 

higher-risk operations and facilities. RBIs use data that was analyzed in previous 

years to identify safety and environmental concerns and issues. 

BSEE’s implementation of its inspection strategy helps the Bureau effectively 

carry out core functions by promoting the use of sufficient controls to mitigate risk 

and support continuous improvement. 

Among the Bureau’s priorities are ensuring the public receives fair market value 

for developed resources and that fees and cost recovery are fair and reasonable. In 

coordination with the Office of Natural Resources Revenue, BSEE’s offshore inspectors ensure that production volumes are accurately measured and reported for the 

assessment of royalties owed to the American people. In FY 2025, BSEE is proposing to allow the Bureau to charge a per-visit production facility inspection fee, 

as is done for offshore drilling rigs, rather than the current once-per-year fee that 

has been in place since FY 2012, as well as to adjust existing inspection fees for 

inflation. This would allow BSEE to recover a greater share of the actual costs 

incurred in overseeing these operations and reduce the direct cost to taxpayers, 

while providing an incentive for operators to improve safety performance and reducing the need for follow-up inspections. The Bureau will continue to review inspection 

and other cost recovery fees to determine if further adjustments are needed to 

reduce or eliminate the potential for subsidies. 

BSEE is also regularly reviewing permitting processes to support timely 

processing and appropriate consideration of the risks and phases of development on 

the OCS. Conducting robust stakeholder technical and procedural workshops along 

with other engagement efforts is critical to the success of BSEE’s modernization and 

reform efforts. BSEE will continue to hold stakeholder engagement meetings, 

including meetings with industry association groups, to provide updates on 

permitting procedures and BSEE’s ‘‘e-permitting’’ modules. 

Cybersecurity 

In FY 2025, BSEE will actively work to establish a BSEE offshore operational 

technology (OT) cybersecurity safety threat detection and mitigation program. BSEE 

is closely collaborating with federal partners, including the Department of 

Homeland Security’s Cybersecurity and Infrastructure Security Agency, the U.S. 

Coast Guard, and the Department of Energy to ensure comprehensive coordination 

and address cybersecurity concerns on the OCS. 

Relationships with federal partners, including the intelligence community, and 

industry decision makers are key to ensuring that, as the program develops, the 

Bureau is equipped to inform and address OT cybersecurity risks on the OCS. BSEE 

will continue to explore program enhancements and engagement strategies to 

improve and integrate a cybersecurity posture within all OCS activities. 

To assist with the federal government’s efforts to address OT cybersecurity risk 

on the OCS, BSEE has initiated efforts to develop a cybersecurity risk profile for 

offshore energy operators. BSEE began by determining the vulnerabilities within 

OT systems utilized by a cross-section of these operators. Field assessments will 

identify strengths and weaknesses within client OT networks and provide BSEE 
16 

and its federal partners with a snapshot of offshore operator OT vulnerabilities. 

This, in turn, will contribute to the development of an overall cybersecurity risk 

profile. 

Strengthening our Regulatory Program 

BSEE continues to perform its statutory responsibilities by developing and 

conducting a robust regulatory program. In recent years, BSEE has published the 

High-Pressure High-Temperature and Subpart B Revisions proposed rule, the 

Blowout Preventer Systems and Well Control Revisions final rule, the joint BOEM/ 

BSEE Renewable Energy Modernization final rule, and the Decommissioning 

Activities and Obligations final rule. BSEE is currently working on several other 

regulatory priorities including the Oil-Spill Response Requirements for Facilities 

Located Seaward of the Coast Line proposed rule, the Revisions to Subpart J— 

Pipelines and Pipeline Rights-of-Way proposed rule, the BSEE Renewable Energy 

Safety proposed rule, and the joint BSEE/BOEM Carbon Sequestration proposed 

rule. 

Strengthening our Commitment to Safety and the Environment 

BSEE works closely with operators as they shift from designing to implementing 

their Safety and Environmental Management Systems (SEMS) processes that promote a performance-based safety approach and culture. Through this approach, 

BSEE leverages the capabilities and expertise of government, industry, and independent third parties to continually improve safety and environmental outcomes. 

BSEE’s SafeOCS Program collects and analyzes near-miss, safety, and failure 

data for well-control equipment and other safety and pollution prevention equipment. The goal of the program is to identify proactive steps to mitigate risks and 

ensure offshore operations are safe, reliable, and environmentally responsible. BSEE 

will continue to obtain statistical advice on the evaluation of daily notifications of 

safety events through its partnership with the Department of Transportation’s 

Bureau of Transportation Statistics. 

The BSEE!Safe program uses text messaging to send offshore workers links to 

published Safety Alerts, which inform the offshore oil and gas industry of the circumstances surrounding an incident or near miss and provide recommendations to 

help prevent the recurrence of such incidents. BSEE!Safe is part of the Bureau’s 

strategy to supplement regulation with innovative programs, expanding the 

available toolbox of methods for driving safety performance and environmental stewardship improvements, and is the first instance in which a safety regulator has communicated directly with the industry workforce to ensure the distribution of critical 

safety information. As of April 2024, more than 7,900 subscribers have signed up 

for the service, and BSEE is expanding the service to include safety information for 

offshore wind energy workers as well. 

BSEE is also prioritizing the Safety Performance Enhanced by Analytical Review 

(SPEAR) Program, with the goal of enabling innovative data analytic tools and strategic Bureau-wide processes. SPEAR enables BSEE subject matter experts to thoroughly analyze data to identify current and emerging safety and environmental 

hazards from OCS energy operations. The SPEAR Program: (1) explores the potential use of advanced data analytic tools to support the Bureau’s processes; and (2) 

establishes a world-class approach to analyzing and communicating data and information throughout the Bureau and to external stakeholders as needs arise. In FY 

2025, BSEE will develop new use cases to evaluate and develop data for other useful 

applications. 

BSEE provides technical training to Bureau field personnel, inspectors, scientists, 

and engineers to ensure staff have the tools and knowledge needed to accomplish 

the Bureau’s mission safely and effectively. BSEE’s training programs provide staff 

with the most up-to-date, relevant training available that addresses the technological advances the Bureau’s workforce will encounter in the field. The Bureau’s 

National Offshore Training Center (NOTC) provides cutting-edge, comprehensive, 

multi-tiered training and professional development opportunities for BSEE’s inspectors, engineers, and scientists to ensure safe and environmentally-sound offshore 

energy operations. In FY 2025, BSEE plans to continue implementing a multiphased approach to assess the current program, identify training gaps, develop and 

implement curriculum, develop and implement an accreditation plan, and perform 

annual curriculum reviews. Training enhancement will include incorporating 

training on renewable energy topics into the NOTC curriculum. These investments 

will help demonstrate the Bureau’s commitment to building a ‘‘best in class’’ technical training program and will allow BSEE to better capture and track the costs 

associated with the program. 
17 

Collaboration 

The Bureau values its close cooperative relationships with federal and state partners with jurisdictional interest on the OCS and is working to strengthen resources 

through intra- and interagency cooperation. In FY 2024 and FY 2025, the Bureau 

is planning to complete several state-level agreements regarding oil spill preparedness coordination. Also, BSEE has been involved in discussions on continuous safety 

improvement and safety culture policy with federal partners, such as the Pipeline 

and Hazardous Materials Safety Administration and the Nuclear Regulatory 

Commission. BSEE continues to engage in opportunities to leverage resources and 

share information across U.S. government agencies. 

BSEE will continue to enhance international collaboration in FY 2025. BSEE 

engages regularly with international counterparts to promote the safe and environmentally responsible development of offshore energy resources globally. BSEE has 

established itself as a leader in international cooperation, actively participating in 

multilateral forums such as the International Regulators’ Forum, the Arctic 

Offshore Regulators Forum, and the International Offshore Petroleum Environment 

Regulators group, and Arctic Council bodies such as the Emergency Prevention, 

Preparedness and Response Working Group. BSEE’s preparedness activities at the 

international scale span work in both temperate and Arctic waters. The Bureau uses 

its international leadership role to better understand the viabilities of traditional oil 

spill cleanup strategies in different environments. 

Oil Spill Prevention 

BSEE continues to implement a comprehensive, cost-effective, long-term research 

program dedicated to improving response countermeasures for oil spills offshore, 

including in Arctic environments. The research program is based upon a strategic 

plan that recognizes the evolving risks in offshore exploration and production and 

BSEE’s mission of protecting the environment. BSEE focuses its oil spill response 

research on advancing state-of-the art methods and technologies for oil spill 

detection. 

A crucial and unique asset that aids BSEE’s ability to conduct this work is 

Ohmsett, the National Oil Spill Response Research and Renewable Energy Test 

Facility in Leonardo, New Jersey. Ohmsett hosts a large, outdoor, aboveground concrete test tank that is 667 feet long, 65 feet wide, and filled to a depth of eight feet 

with 2.6 million gallons of saltwater. Ohmsett allows government and private industry oil spill response personnel to hone techniques and test full-scale equipment in 

realistic sea environments. Ohmsett plays an important role in protecting the 

Nation’s oceans by supporting development of the most effective response technologies as well as preparing responders by creating the most realistic training 

environment available. 

Tribal Coordination 

BSEE regulates activities that may have direct or indirect impacts to the integrity 

of the shoreline and its ecology, offshore habitat, marine mammals, other critical 

species, natural view-scape, and submerged historical or archaeological sites. BSEE 

strives to ensure that its processes surrounding activities that may have effects on 

Indigenous communities are communicated openly, transparently, and thoroughly. 

BSEE hosts consultations with Tribal Nations for three primary reasons: to honor 

our nation-to-nation relationship; to hear directly from Tribal leaders as we address 

economic, environmental justice, and climate crises, all of which disproportionately 

impact Native Americans and Alaska Natives; and to commit ourselves to a process 

that addresses Tribal needs and ensures we respect and understand the input we 

receive. 

To support this commitment to Tribal coordination and consultation, BSEE is 

requesting $800,000 to strengthen its existing National Tribal Engagement Program 

to include additional dedicated, full-time Tribal liaison positions. With this additional funding, the National Tribal Engagement Program will be better able to 

provide meaningful and timely coordination and consultation with Tribes. 

Conclusion 

I would like to take this opportunity to express our appreciation for the continued 

support for safe and environmentally sustainable offshore energy development and 

production. The FY 2025 Budget Request will support BSEE’s efforts to ensure 

responsible offshore energy and mineral resource development, build on BSEE’s 

advancements, and expand its ability to provide effective oversight of the OCS 

through the initiatives outlined above. 
18 

I thank the Chairman and Ranking Member for inviting me here today and would 

be happy to answer the Subcommittee’s questions. 

QUESTIONS SUBMITTED FOR THE RECORD TO MR. KEVIN SLIGH, DIRECTOR, BUREAU

OF SAFETY AND ENVIRONMENTAL ENFORCEMENT, U.S. DEPARTMENT OF THE INTERIOR

Mr. Sligh did not submit responses to the Committee by the appropriate 

deadline for inclusion in the printed record. 

Questions Submitted by Representative Westerman 

Question 1. The Infrastructure Investment and Jobs Act was signed into law (P.L. 

117-58) on November 15, 2021. Section 340307 amends the Outer Continental Shelf 

Lands Act to authorize the Secretary of the Interior to grant a lease, easement, or 

right-of-way on the Outer Continental Shelf for activities that ‘‘provide for, support, 

or are directly related to the injection of a carbon dioxide stream into sub-seabed 

geologic formations for the purpose of long-term carbon sequestration.’’ The Act 

requires the Bureau of Safety and Environmental Enforcement jointly with the 

Bureau of Ocean Energy Management to promulgate regulations within one year of 

the law’s enactment. Given the evolving landscape of carbon capture and sequestration (CCS) and its importance for carbon management, enhanced oil recovery, and 

other evolving uses; I’d like to understand BOEM’s current stance and plans 

regarding CCS on the Outer Continental Shelf (OCS). 

1a) Can you provide an update on where BOEM and BSEE are in drafting and 

publishing the necessary regulations for CCS? Specifically, when can we expect these 

proposed regulations to be available for public comment? 

1b) Is there any provision that allows companies with existing OCS oil and gas 

leases to perform CCS activities before the new regulations are finalized and 

published? 

West Coast Decommissioning/Chumash Sanctuary 

Question 2. On behalf of a broad community consortium, the Northern Chumash 

Tribal Council submitted their sanctuary nomination in July 2015. NOAA’s Office 

of National Marine Sanctuaries issued a Notice of Intent to begin the designation 

process for the proposed sanctuary in November 2021. 

Now that NOAA has formally proposed the Chumash National Marine Sanctuary, 

it doesn’t allow for an exception for decommissioning. BOEM and BSEE are 

currently in the process of working towards the decommissioning of the platforms 

within the proposed sanctuary. If the proposed sanctuary is finalized without a 

decommissioning exception, how will that impact BOEM and BSEE’s mission to have 

these platforms decommissioned? 

Mr. STAUBER. Thank you, Director Sligh. Our next witness is Mr. 

Howard Cantor. He is the Director of the Office of Natural 

Resources Revenue in the Department of the Interior, and he is 

stationed in Denver, Colorado. 

Mr. Cantor, you are now recognized for 5 minutes. Welcome. 

STATEMENT OF HOWARD CANTOR, DIRECTOR, OFFICE OF 

NATURAL RESOURCES REVENUE, DENVER, COLORADO 

Mr. CANTOR. Thank you. Chairman Stauber, Ranking Member 

Kamlager-Dove, and members of the Subcommittee. I am Howard 

Cantor, the Director of the Office of Natural Resources Revenue. I 

am pleased to join you today to discuss the President’s Fiscal Year 

2025 budget request for the Office of Natural Resources Revenue, 

also known as ONRR, an office under the Assistant Secretary for 
19 

Policy Management and Budget within the Department of the 

Interior. 

ONRR collects, accounts for, and verifies natural resource and 

energy revenues due to states, American Indians, Alaska Natives, 

and the U.S. Treasury. In Fiscal Year 2023 alone, ONRR disbursed 

$18.24 billion in revenue from energy production on Federal and 

Indian lands and offshore areas, including $4.72 billion to 33 

states. 

Given the large size of the revenue stream handled and 

dispersed, ONRR strives for transparent and efficient operations in 

collecting every dollar due to ensure that the American taxpayer 

and Indian tribes receive full payment of the revenues they are 

owed for the development of their resources. ONRR works to collect 

every dollar due while maintaining a collaborative working 

relationship with industry. 

Every American benefits from the revenues generated from 

mineral resources, either directly, through payments to American 

Indian tribes and individual Indian mineral owners, or indirectly, 

through payments to the Historic Preservation Fund, the 

Reclamation Fund, the Land and Water Conservation Fund, states, 

and the General Fund of the U.S. Treasury. 

The Fiscal Year 2025 budget for ONRR supports its mission to 

collect, disperse, and verify Federal and Indian energy and other 

natural resources revenues on behalf of all Americans. The budget 

request includes funding for the assumption of mineral revenue 

management responsibilities of the Osage Nation. Taking over 

these responsibilities represents a significant effort, due to the 

unique framework of mineral revenue within the Osage Nation. 

The request also includes $7 million to restore audit and compliance activities reduced by the Fiscal Year 2024 enacted budget, 

enabling ONRR to perform additional data mining activities, compliance reviews, and audits. 

ONRR’s Fiscal Year 2025 budget request also demonstrates fiscal 

responsibility, as the requested amount for ongoing information 

technology modernization work is reduced by $10 million. 

I want to take this opportunity to express our appreciation for 

the continued support for responsible, secure, and accurate collection of mineral revenue from Federal and Indian lands and Federal 

waters. 

The Fiscal Year 2025 request will support ONRR’s efforts to 

modernize systems, become more efficient, and ensure the 

American taxpayer and Indian tribes receive full payment of the 

revenues that they are owed for the development of their resources. 

I thank the Chairman and Ranking Member for inviting me here 

today, and I would happily answer the Subcommittee’s questions. 

[The prepared statement of Mr. Cantor follows:] 

PREPARED STATEMENT OF HOWARD CANTOR, DIRECTOR, OFFICE OF NATURAL

RESOURCES REVENUE, U.S. DEPARTMENT OF THE INTERIOR

Chairman Stauber, Ranking Member Ocasio-Cortez, and Members of the 

Subcommittee, I am pleased to join you today to discuss the President’s Fiscal Year 

(FY) 2025 budget request for the Office of Natural Resources Revenue (ONRR), an 

office under the Assistant Secretary for Policy Management and Budget within the 

Department of the Interior (Department). 
20 

Background 

For the benefit of all Americans, ONRR collects, accounts for, and verifies natural 

resource and energy revenues due to states, American Indians, Alaska Natives, and 

the U.S. Treasury. In FY 2023 alone, ONRR disbursed $18.24 billion in revenue 

from energy production on federal and Tribal lands and offshore areas, including 

$4.72 billion to 33 states. Given the large size of the revenue stream handled and 

disbursed, ONRR strives for transparent and efficient operations, collecting every 

dollar due and ensuring that the American taxpayer and Indian Tribes receive full 

payment of the revenues that they are owed for the development of their resources. 

ONRR maintains a collaborative working relationship with industry through 

reporter training, providing speakers for industry-led conferences, and informal 

interactions in an effort to gain compliance with the laws and regulations before any 

formal actions need to be taken. 

Every American benefits from the revenues generated from mineral resources, 

either directly through payments to American Indian Tribes and Individual Indian 

Mineral Owners or indirectly through payments to the Historic Preservation Fund, 

the Reclamation Fund, states, and the General Fund of the U.S. Treasury. ONRR 

also contributes to the Land and Water Conservation Fund (LWCF), with appropriations made permanent in August 2020 as part of the Great American Outdoors Act 

(GAOA), and tracks and reports the energy funds available for calculation of the 

amounts attributable to the National Parks and Public Land Legacy Restoration 

Fund created under the GAOA. 

The Federal government has collected revenues from mineral production on 

federal onshore lands since 1920, on American Indian lands since 1925, and on 

federal offshore areas since 1953. In 1982, the Federal Oil and Gas Royalty Management Act called upon the Department to establish a comprehensive, consolidated 

system for the collection, accounting, and disbursement of these revenues. From FY 

1982 through FY 2023, Interior has provided over $371 billion to federal, state, and 

American Indian recipients through this program. Approximately 56 percent of all 

annual collections have gone to the General Fund of the U.S. Treasury, 23 percent 

to special purpose funds, 16 percent to states, and 5 percent to the American Indian 

community. 

Fiscal Year (FY) 2025 Request 

The FY 2025 budget request for ONRR is $175,987,000 to support ONRR’s 

mission to ‘‘collect, disburse, and verify federal and Indian energy and other natural 

resource revenues on behalf of all Americans’’ through the work of our various 

program areas: 

• Revenue, Reporting, and Compliance Management: These activities ensure 

revenues from federal and American Indian leases are efficiently, effectively, 

and accurately collected, accounted for, invested, and disbursed in a timely 

manner. This program’s activities also include support of the Bureau of 

Indian Affairs Indian Energy Service Center, as well as efforts to ensure 

timely, complete, and accurate reporting while providing reasonable 

assurance of company compliance. 

• Audit Management: These activities focus on accurate reporting and payment 

of the nation’s federal and American Indian mineral revenues. Federal and 

American Indian audit and compliance activities represent a critical part of 

the operational strategy to ensure companies comply with applicable laws, 

regulations, and lease terms. This program’s activities also include administering cooperative agreements with states and American Indian Tribes, 

tribal consultations, and investigating and responding to the inquiries of 

individual Indian mineral interest owners. 

• Research, Enforcement, Guidance, and Appeals: These activities develop and 

implement consistent and comprehensive compliance planning, as well as 

market and geospatial analysis, valuation guidance and determinations, 

production meter verification, rulemaking, responding to appeals of ONRR 

actions, bankruptcies, litigation support, and enforcement. 

The FY 2025 budget request is $8.05 million above the FY 2024 enacted level 

attributed to the following: 

• $4.1 million and 25 full time equivalent (FTE) for ONRR to assume the 

mineral revenue management responsibilities for the Osage Nation. 

• $7.0 million to restore Audit and Compliance activities. 
21 

• $5.5 million to fund a fixed cost increase for FY 2024 and $1.5 million for FY 

2025 fixed cost increases. 

• A reduction of $10 million in ONRR’s ongoing information technology 

modernization efforts. 

Osage Trust Accounting Implementation 

In 2014, ONRR was first tasked with providing minerals revenue management 

functions for the Osage Tribe so that the Department could comply with a settlement agreement with the Tribe. However, a court delayed, and then the Bureau of 

Indian Affairs (BIA) withdrew a final rule intended to shift the Department’s Osage 

minerals revenue management responsibilities from BIA to ONRR. BIA published 

a new proposed rule in January 2023 and is working to publish the final rule in 

FY 2024. ONRR requests an additional +$4.1 million and +25 FTE in FY 2025 as 

part of a multi-phase and multi-year implementation effort to ensure essential collection, disbursement, and compliance functions for Osage mineral revenues. 

ONRR’s assumption of the full oil and gas revenue and production reporting and 

verification program on Osage lands represents a significant increase in ONRR’s 

workload across its mission activities. Once fully implemented, ONRR expects that 

taking on Osage properties will increase its Indian-related workload by approximately 50 percent. There are currently 2,900 active leases and 14,500 producing 

wells on Osage lands, which will increase the number of Indian leases and wells 

in ONRR’s systems by 46 percent and 62 percent, respectively. Additionally, ONRR 

expects to provide guidance and training to 230 new production and royalty 

reporters, a 43 percent increase in the number of Indian reporters. The Osagerelated workload is likely to continue increasing, as an additional 4,760 wells are 

expected to be drilled by 2037 on Osage lands. 

With its current Osage funding, ONRR is performing limited compliance activities 

as permitted by existing regulations. ONRR proposes a phased approach to funding 

and fully carrying out its functions for the Osage Tribe once the final rule is effective. The additional funds requested in FY 2025 will help ensure ONRR conducts 

essential collection and disbursement activities for Osage mineral revenues. In 

addition to continuing current limited compliance activities, this would allow ONRR 

to perform required functions in FY 2025. 

Transitioning these activities to ONRR will require a significant time investment 

as ONRR works with Osage stakeholders to shift them to ONRR’s forms and 

processes. ONRR’s production and royalty forms will be completely new to Osage 

reporters, and ONRR plans to provide reporter training sessions to assist them. 

Even so, ONRR expects it will need to respond to questions and investigate and 

assist in resolving reporting errors. Also, BIA’s current processes do not involve 

enforcement, so ONRR expects to inform and educate affected payors and lessees 

about ONRR’s enforcement processes. 

Audit and Compliance Activities 

Funding reductions enacted in the FY 2024 appropriation are impacting ONRR’s 

Audit and Compliance activities. ONRR disbursed over $18 billion in FY 2023, so 

even relatively small percentage reductions to collections can equate to large dollar 

amounts, which can adversely impact the financial well-being of tribal members and 

allottees, as well as states’ abilities to fund vital programs. Restoration of the $7.0M 

reduction ONRR received in FY 2024 would enable ONRR to perform additional 

data mining activities, compliance reviews, and audits, thereby increasing ONRR’s 

ability to ensure accurate reporting and payment of royalties due. 

IT Modernization 

ONRR has made significant progress implementing its IT Modernization program 

and has determined the funding received for these efforts can be reduced by $10.0 

million beginning in FY 2025 without significantly impacting the project schedule. 

ONRR’s IT Modernization effort supports EO 14028, Improving the Nation’s 

Cybersecurity, by continuing on the path to replace its aging Minerals Revenue 

Management Support System (MRMSS) with modernized systems. This work will 

ensure the stability and security of systems that disbursed over $18 billion in FY 

2023 and enhance efficiency and mission delivery. 

Baseline Capacity 

The FY 2025 budget includes important investments in programs needed to help 

strengthen America and be more competitive as the world continues to change. 

These investments include funding needed to maintain a robust and talented workforce and the must-pay requirements needed to continue to fulfill ONRR’s mission. 
22 

The budget includes +$5.5 million for ONRR, which reflects the incremental amount 

needed to cover the fixed costs associated with mission operations in FY 2024. This 

request, in combination with the FY 2025 fixed cost amounts, will allow the 

program to meet must-pay requirements without impacting program activities. 

Conclusion 

I would like to take this opportunity to express our appreciation for the continued 

support for responsible, secure, and accurate collection of mineral revenue from 

federal and Indian lands and federal waters. The FY 2025 request will support 

ONRR’s efforts to modernize systems, become more transparent, and add capacity 

to ensure the American taxpayer and Indian Tribes receive full payment of the 

revenues they are owed for the development of their resources. 

I thank the Chairman and Ranking Member for inviting me here today, and I 

would be happy to answer the Subcommittee’s questions. 

QUESTIONS SUBMITTED FOR THE RECORD TO MR. HOWARD CANTOR, DIRECTOR, 

OFFICE OF NATURAL RESOURCES REVENUE, U.S. DEPARTMENT OF THE INTERIOR

Mr. Cantor did not submit responses to the Committee by the appropriate 

deadline for inclusion in the printed record. 

Questions Submitted by Representative Westerman 

Question 1. The Infrastructure Investment and Jobs Act was signed into law (P.L. 

117-58) on November 15, 2021. Section 340307 amends the Outer Continental Shelf 

Lands Act to authorize the Secretary of the Interior to grant a lease, easement, or 

right-of-way on the Outer Continental Shelf for activities that ‘‘provide for, support, 

or are directly related to the injection of a carbon dioxide stream into sub-seabed 

geologic formations for the purpose oflong-term carbon sequestration.’’ The Act 

requires the Bureau of Safety and Environmental Enforcement jointly with the 

Bureau of Ocean Energy Management to promulgate regulations within one year of 

the law’s enactment. 

1a) Does ONRR anticipate revenues and if so how much from CCS leasing or how 

would revenues be calculated in case of conversion mechanism? 

Mr. STAUBER. Thank you, Mr. Cantor. I thank all the witnesses 

for their testimony. The Chair will now recognize Members for 5 

minutes of questioning, and I now recognize myself for 5 minutes. 

Director Klein, I would like to start by focusing on BOEM’s 

implementation and interpretation of the Inflation Reduction Act 

Section 5265, which couples oil and gas leasing to wind leasing. 

You are aware of the 60 million acre requirement, correct? 

Ms. KLEIN. Correct. 

Mr. STAUBER. Do you interpret this as Congress wanting you to 

offer robust acreage for oil and gas leasing, or do you see it as oil 

and gas will only get the 60 million acres if the wind industry 

decides so? 

Ms. KLEIN. Thank you for the question. 

In setting out the schedule of lease sales for oil and gas, and the 

process that we undertake to determine where those lease sales 

should take place, there is an environmental review process that 

takes place, which has been launched. We just put out our area 

identification that notes the place where we are focusing our environmental analysis in the Gulf of Mexico. And as has been the 

usual process for the history of the program, we provide additional 

information as we get closer to the lease sale stage about which 
23 

areas will be offered. We are aware of the 60 million-acre 

requirement. 

Mr. STAUBER. OK. So, Director Klein, hypothetically, if the offshore wind industry came to you and said, ‘‘We have enough acreage for offshore wind development, no need to hold a lease sale this 

year,’’ would you still hold an offshore wind lease sale or an oil and 

gas lease sale? 

Ms. KLEIN. Thanks for the question. On the offshore wind space, 

what we have tried to do is set out a schedule of offshore wind 

lease sales to continue the robust development of an offshore wind 

industry here in the United States, so that we can transition to 

cleaner energy sources. 

Mr. STAUBER. Well, Director Klein, respectfully, with the 

precedent you have set, not a lot of people here believe you are 

acting in good faith. 

This Administration has neglected its duty to support oil and gas 

leasing, so we are incredibly worried you will continue this trend 

and fail to carry out the measly three lease sales that you have put 

in the current 5-year plan. Based on the readings of the Department’s plans, it appears that your offshore wind schedule has 12 

sales scheduled over the next 5 years, a 400 percent increase in 

renewables over oil and gas. Is that correct? 

Ms. KLEIN. I don’t know that I can do the math that quickly in 

my head, but we have scheduled 12 potential lease sales for offshore wind over the next 5 years, reflecting what we believe to be 

the tremendous opportunity for offshore wind. 

Mr. STAUBER. Director Klein, it is correct. So, how much of the 

revenue raised from these 12 lease sales will contribute to coastal 

communities, and will a single dollar from these lease sales go back 

to these communities? 

Ms. KLEIN. In developing this program, we have focused on, or 

I should say, in supporting the development of offshore wind in this 

country, the Biden-Harris administration has put a tremendous 

amount of effort on—— 

Mr. STAUBER. Director Klein, with all due respect, that is not 

what I asked. I said, ‘‘Will the money go back to these coastal 

communities?’’ 

Ms. KLEIN. There is a tremendous amount of economic development and opportunity happening in coastal communities right now. 

I cited some of that in my opening testimony. 

Mr. STAUBER. No, I am talking about the revenue that will be 

generated. Will that go back to the coastal communities? 

Ms. KLEIN. Where revenue goes from offshore wind is a matter 

of statutory authority. Right now, there is no statute that exists 

that directs revenues from offshore wind to anywhere else but the 

Treasury. 

Mr. STAUBER. And Director, that is what we are getting at. There 

is no mechanism approved by Congress to return these revenues to 

the coastal communities. They won’t be compensated for this development for offshore wind. Instead, these communities will have to 

pay more to cover their energy costs while not receiving 

conservation funding. 

Do you know how BOEM could fix that? You could support 

offshore oil and gas leasing. By law, your dollars would flow back 
24 

to coastal communities through revenue sharing and conservation 

funding, and Americans across the country would see lower energy 

costs. I think that is a simple fix. 

Director Cantor, how much GOMESA revenue has offshore oil 

and gas contributed in the last 5 years? 

Mr. CANTOR. Thank you for the question, Chairman. For 

GOMESA, let’s see. I don’t have the total for the last 5 years. 

Mr. STAUBER. Hundreds of millions? 

Mr. CANTOR. Hundreds of millions. Yes, sir. 

Mr. STAUBER. And how about LWCF or Historic Preservation 

Fund in the last 5 years? 

Mr. CANTOR. The LWCF is capped at $125 million per year. 

Mr. STAUBER. OK. And then how much from offshore wind? 

Mr. CANTOR. Can you repeat the question, Chairman? 

Mr. STAUBER. How much has offshore wind generated for you? 

Mr. CANTOR. Over the last 5 years we have had—— 

Mr. STAUBER. Just for coastal communities. How much has come 

back to coastal communities? 

Mr. CANTOR. There has been about $5.7 billion, most of that due 

to a bonus in 2022 for the New York Bight wind sale. But in terms 

of how much goes back to coastal communities, that—— 

Mr. STAUBER. My time has expired here, but I will say it goes 

back to the Treasury. So, nothing goes back directly to the communities from offshore wind at this moment. 

I will now turn it over to Representative Kamlager-Dove for 5 

minutes of questioning. Thank you. 

Ms. KAMLAGER-DOVE. Thank you, Mr. Chair, and I too am interested in folks not operating in good faith, and the money, and lower 

energy costs. 

Director Klein, last month the FTC issued a complaint about 

Pioneer Resources, with evidence that their CEO, Scott Sheffield, 

colluded with OPEC to illegally manipulate the market to drive up 

gas prices. The complaint was big news in part because it had solid 

evidence that the high gas prices my colleagues on the other side 

have been talking about were not, in fact, the result of insufficient 

oil production here in the United States or Biden’s so-called war on 

American energy, as our colleagues across the aisle often claim. 

Instead, gas prices may have been inflated because of illegal 

manipulation of oil markets. 

The amount of money Sheffield squeezed out of working families, 

according to his own estimates, conservatively, was between $2.7 

and $4 billion in 2023 alone. After Mr. Sheffield started manipulating the markets, his compensation went from $19 million a year 

to $67 million a year. That was his big reward for gouging the 

American people. 

The FTC complaint presents evidence that Pioneer was not just 

colluding with Iran, Saudi Arabia, and Russia, but with other oil 

companies in the United States, too. Even more evidence of collusion between nine different oil companies in the United States, 

including Pioneer, was detailed in a separate class action lawsuit 

from April of this year. 

Director Klein, does Pioneer Resources have any offshore leases? 

Ms. KLEIN. Thank you for the question. I believe that Pioneer 

does not. They mostly focus on the onshore space. 
25 

Ms. KAMLAGER-DOVE. OK, thank you. 

Ms. KLEIN. That is my understanding. 

Ms. KAMLAGER-DOVE. Now, Hess Corporation was part of the 

lawsuit, too. Does Hess Corporation have any offshore leases? 

Ms. KLEIN. I believe that Hess does, yes. 

Ms. KAMLAGER-DOVE. OK. And what about Occidental 

Petroleum? 

Ms. KLEIN. I also think they have offshore leases, yes. 

Ms. KAMLAGER-DOVE. Yes. So, if Occidental, Hess, or any other 

oil and gas company with an offshore lease were found guilty of 

colluding with OPEC and engaging in illegal, anti-competitive practices, or price fixing, would they still be eligible to get a lease in 

the future? 

Ms. KLEIN. No. If a company is found guilty of something like 

collusion, we have regulations in place that make them ineligible 

to hold a lease in the future. 

Ms. KAMLAGER-DOVE. OK, thank the Lord. Because I would hope 

that, if a company was using taxpayer lands or waters to scam the 

American people into paying astronomical gas prices so the 

company could pad their profits, increase dividends, and stock 

buybacks, which is exactly what Pioneer did, that BOEM should be 

able to put a stop to it. It should be an easy call to disqualify, suspend, or debar them from being able to do any further business 

with the Federal Government, including being able to extract more 

oil and gas from public lands. 

And I would hope that my colleagues from across the aisle would 

join me in this pursuit to ensure that is the case, because 

Committee Democrats are requesting a formal investigation into 

this matter, and I hope we can take this up in a bipartisan way. 

BOEM also manages offshore renewable energy development, 

which will play a vital role in curbing the climate crisis. And, of 

course, there are challenges to standing up a new industry, but 

there are also far-reaching benefits. 

Director Klein, can you briefly go over some highlights of the job 

and economic benefits of the offshore wind energy for coastal communities and throughout the United States? 

And if you heard anything that you disagree with earlier, could 

you please respond to those issues? 

Ms. KLEIN. Thank you for the question. I have been in this role 

a little bit over a year, and I have been really energized, sorry for 

the pun, by my travels all around the country. I have been visiting 

and hearing from all sorts of communities, workers, folks 

associated with the growth of offshore wind. There are really 

billions of dollars of investments that are flowing all across the 

country. 

I was able to travel to Portsmouth, Virginia, for instance, and 

celebrated milestones of a project, Offshore Virginia, with the 

Governor, the Lieutenant Governor, and the Attorney General. 

I have been to Brownsville, Texas to look at the construction of 

the first Jones Act-compliant offshore wind vessel that is, as I mentioned in my opening remarks, sourced with steel from the United 

States, and has a number of American workers working hard to 

launch that boat. 
26 

We celebrated the South Fork project, its first delivery of energy 

to the grid up in Long Island, and heard from union workers and 

folks who are really proud of the work that they have done there 

to support a clean energy future. That project has export cable that 

was manufactured in South Carolina, a substation from Texas, so 

the opportunity for economic growth all around the country, it is 

a long list, and we are really excited about it at BOEM. 

Ms. KAMLAGER-DOVE. Thank you. 

Mr. STAUBER. Thank you very much. We will now go to 

Representative Graves from Louisiana for 5 minutes. 

Mr. GRAVES. Thank you. Thank you all for being here. 

Ms. Klein, how long does it take to go from a lease sale to actual 

production in the OCS? 

Ms. KLEIN. Thank you for the question. The timeline can vary. 

Mr. GRAVES. Just give me a ballpark, please. 

Ms. KLEIN. It can take anywhere from 5 to 10 years. It really 

depends on the operator, and how swiftly they move to production 

plans. 

Mr. GRAVES. It generally takes a lot closer to 10 years than 5. 

Mr. Cantor, when ONRR releases something saying that 

GOMESA revenue sharing hit the cap ‘‘due to record high oil and 

gas production under this Administration,’’ if it takes 10 years to 

go to production, from lease sale to production, is that really an 

honest statement, suggesting to the American people that production is at high levels because of this Administration? 

Mr. CANTOR. Thank you for the question, Congressman. If the 

timeline is as you have stated, then the timeline is as you have 

stated. 

Mr. GRAVES. So, the answer would—— 

Mr. CANTOR. I don’t really have a comment on that question. 

Mr. GRAVES. The answer would be no. 

Ms. Klein, let’s say that President Smith comes in next, and 

President Jones comes in after that, and subsequent to this Administration. Since you are not doing any lease sales, is it going to be 

their fault that we don’t have appropriate supply of liquid fuels, of 

oil and gas? 

Ms. KLEIN. In setting the three lease sales over the next 5 years 

for oil and gas, the Secretary determined that those sales would 

best meet our energy needs. There is obviously production 

continuing right now, record levels of production. That will 

continue—— 

Mr. GRAVES. Ms. Klein, you are not answering my question. Is 

it going to be their fault that we don’t have sufficient supplies? 

This is the lowest, the lowest lease sale production since we have 

had an OCS program ever, ever, 1/100 of what was leased under 

President Jimmy Carter, 1/360 under what was leased under 

President Ronald Reagan. This is awful. You are completely 

screwing the next administration and the one after from this 

completely failed energy plan. 

Let me ask you a few questions, and any of you in the panel are 

welcome to answer this. When you did the Rice’s whale sue-andsettle, is that going to result in lower production costs or higher 

production costs in the OCS? 
27 

Ms. KLEIN. I don’t know what you are referring to by sue-andsettle, but if you are referring to the voluntary measures—— 

Mr. GRAVES. The Rice’s whale restrictions, is that going to cost 

more to produce or less to produce? 

Ms. KLEIN. Currently, there are voluntary measures that we 

have offered to oil and gas. 

Mr. GRAVES. That is a yes or no. Please don’t burn my time. It 

is a yes-or-no question. 

Is it going to cost more to produce or less to produce? 

Ms. KLEIN. It is not going to have any—— 

Mr. GRAVES. It is not going to cost less. Do you want to just say 

that? That is fine. 

No. 2, financial assurance. The financial assurance rule, is that 

going to result in higher cost to produce or lower cost to produce? 

Ms. KLEIN. We believe—— 

Mr. GRAVES. The additional $9.2 billion in bonding will cost 

more. 

The methane rule, is that going to cost more to produce or less 

to produce? 

[No response.] 

Mr. GRAVES. That is going to cost more to produce. I will help 

you all out here. 

The pipeline feed that this Committee proposed, what was it, 

$500 a mile or what, I don’t even remember what it was, but the 

pipeline fee for offshore energy products, and it was like a fee for 

below 1,000 feet and above 1,000 feet, or something like that. 

Those additional fees similarly would be passed on to consumers, 

and then higher royalty rates, which means that you are paying 

more to the government to produce. 

All of these things cumulatively cost a higher cost for production, 

and that is all passed on to consumers. So, my friends are sitting 

here talking about higher prices. Look, we saw this under the 

Obama administration. Oil and gas prices are higher under these 

flawed policies. It shouldn’t be a shock to anybody that we are 

seeing it right now again. In fact, it is embarrassing that we saw 

it once, and this Administration is walking into the same thing, 

putting your hand right on that red hot stove all over again, and 

then pointing to everybody else as the cause. And it is shown over, 

and over, and over again that the excuses that have been brought 

up by this Administration are completely untrue. 

So, let’s be crystal clear. It is this Administration’s policies, your 

lack of lease sales that are causing higher energy prices. You are 

completely screwing this country’s energy security in the future 

with the 10-year timeline it takes to go from lease sales into 

production. You are putting communities in the Gulf of Mexico at 

risk because Mr. Cantor is not going to have a penny in revenue 

sharing that, under our Constitution, is required to be spent on 

resiliency projects like restoring our coastal ecosystem, on hurricane protection, and on flood control projects, putting these people 

as sitting ducks for future hurricanes. And consumers are paying, 

when this Administration took office, $1.74 a gallon were gasoline 

prices, lowest prices in Louisiana. Today, I am going to guess three 

bucks. Completely screwing communities. 
28 

Look Mr. Chairman, I know I am out of time. I just want to see 

if Mr. Sligh or Ms. Klein can give us any clarity on the financial 

assurance rule. Specifically, is that BOEM or BSEE’s intent to call 

upon the additional supplemental bonds when a current operator 

can’t fulfill their decommissioning obligation before going after the 

predecessor lessees? It should be a yes or no. 

Ms. KLEIN. The Financial Assurances Rule is meant to ensure 

that current lessees and grant holders undertake their obligations 

to clean up after themselves when they are done. So, we would be 

going to those financial assurance requirements before we went to 

predecessors. 

Mr. GRAVES. Thank you. Thank you for answering that question. 

Mr. STAUBER. Thank you very much. 

Mr. GRAVES. I yield back. 

Mr. STAUBER. We will now go to Representative Huffman for 5 

minutes. 

Mr. HUFFMAN. Thank you, Mr. Chairman. 

We expect a lot of fossil fuel boosterism in this Committee and 

this Subcommittee, but recently it has risen to the level of almost 

cartoonish fealty to the fossil fuel industry. At a time when you are 

talking about record production, record exports, record profits, we 

continue to hear this rhetoric about the Biden administration 

declaring a war on oil and gas. It is just not something that can 

credibly be said. But if you are so beholden to fossil fuel that without blushing you can mouth these talking points, this is the place 

where we hear it. 

And when we see clear evidence that these fossil fuel interests 

are colluding with OPEC to screw American consumers and rig the 

global price of oil, and Democrats try to do something about it on 

a bipartisan basis, we hear crickets from the other side, because 

they just can’t bring themselves to ever stand up to this massive 

industry, no matter how much it abuses the environment or 

American consumers. 

In fact, we have a moment here where you have a chance to 

choose between the American people and consumers, and protecting them from high gas prices or your friends at Big Oil. And 

it looks like, to no one’s surprise, our friends across the aisle choose 

Big Oil every time. 

Director Klein, it is a little rich when the Chair lectures you 

about good faith. And you should just know that when that term 

is used around here, it has a coded meaning. ‘‘Good faith’’ means 

absolute boosterism for fossil fuel at all costs. 

The $60 million minimum and other provisions of the IRA that 

you were asked about were formulas that one U.S. Senator insisted 

upon in the Inflation Reduction Act. It is not sacred, and it doesn’t 

mean you have to go over and above that. It doesn’t mean that you 

have to bow and scrape at the throne of Big Oil, as the Chair would 

ask you to do, in order to comport with his notion of good faith. So, 

I would say minimum compliance with this formula that was forced 

in to the IRA, something that most Members of Congress in both 

houses, I believe, did not support, I certainly opposed it, but minimum compliance is just fine, and certainly meets the good faith 

standard, in my view. 
29 

With respect to offshore wind, the Chair is having some fun with 

the nuance of how royalties work, and how auction credits work, 

and it is misleading. So, we need to clean this up a little bit. When 

he says that no money goes back to local coastal communities from 

these auctions, that is not right. I know that because I represent 

one of those coastal communities, where there were credits that the 

successful bidders embraced as part of their bid, and a lot of money 

is going back to local communities. Isn’t that correct, through those 

auction credits? 

Ms. KLEIN. Yes, we have certainly set up systems where, during 

the auctions, we can make sure that we are supporting domestic 

supply chain, domestic workforce, and supporting communities 

where these projects will go. 

Mr. HUFFMAN. Do you envision using auction credits in other offshore wind leases to make sure that some of that money actually 

gets turned back around into community benefit agreements, 

tribes, fishermen, and other interests that will benefit from those 

auction credits? 

Ms. KLEIN. Yes, we do. 

Mr. HUFFMAN. Thank you. 

The Chair is correct that, in terms of long-term royalties and revenues from the sale of energy, oil and gas is in a different place 

than offshore wind. Oil and gas has a mechanism to turn that 

money back into the Land and Water Conservation Fund and to 

benefit states and local communities. And right now, offshore wind 

does not. We need to fix that. 

I am working on legislation that will address that, and eventually we need to get there. But to extrapolate from that, as the 

Chair does, that instead of doing offshore wind you should just do 

more oil and gas is certainly problematic if you care about the 

climate crisis and the transition to clean energy. 

I only have about 30 seconds left. The last question I want to ask 

you about involves tribal consultation, because I do want the 

project in Humboldt County to succeed. And I think you know that 

we have heard loud and clear from tribes that we need better 

engagement by BOEM. There is a co-management Executive Order, 

Joint Secretarial Order 3403, where other agencies have rolled out 

their co-stewardship plans for land and waters for tribes. We have 

yet to see anything from BOEM on that. I am still waiting for a 

response on my request for better engagement, including somebody 

on the ground for California and other West Coast, in the remaining time I have, could you speak to where we stand on these 

things? 

Ms. KLEIN. Sure. Thank you for that question, and I appreciate 

the feedback we have received and the inquiries that you have sent 

to us. 

We are spending a lot of time at BOEM, making sure that we 

really have a robust tribal engagement program. Our Fiscal Year 

2025 budget request identifies some additional resources that we 

think would be helpful in order to do that not just within BOEM, 

but also support tribal capacity at tribes themselves to be able to 

meaningfully engage in this. 
30 

So, obviously, a long history of mistrust between many tribes and 

the Federal Government, and I think working together with the 

Subcommittee we can start to address that. 

Mr. HUFFMAN. It is very important. I appreciate that. 

And thank you, Mr. Chairman, I yield back. 

Mr. STAUBER. Thank you very much. We will now go to the Chair 

of the Full Committee. 

Representative Westerman, you are up for 5 minutes. 

Mr. WESTERMAN. Thank you, Chairman Stauber. Thank you to 

the witnesses for being here today. 

Director Klein, we have already talked about the three lease 

sales in the next 5 years in the 5-year plan, and the 12 wind lease 

sales. But I just want to be sure that, on Lease Sale 262, is that 

going to proceed as planned, particularly if no additional wind 

lease sales are deemed necessary for 2025 to 2026? 

Ms. KLEIN. Thank you for the question. We have started the 

environmental review process for the three sales that were identified in the 5-year plan. We recently issued the area identification. 

The next step would be the draft environmental impact statement 

that analyzes those potential sales, so that—— 

Mr. WESTERMAN. So, your planning—— 

Ms. KLEIN. That process is underway. 

Mr. WESTERMAN. You are planning to hold the sale. Do you 

anticipate any hiccups in the process, or delays? 

Ms. KLEIN. I have learned not to try to anticipate hiccups, but, 

as I said, the environmental process is underway for those lease 

sales, and we expect the draft environmental impact statement to 

be out in the next couple—— 

Mr. WESTERMAN. Well, last fall you told me there wouldn’t be 

any delays for Lease Sale 261, yet you voluntarily chose to delay 

it. Has your agency done any planning or work which sets up the 

cancellation of any of the three offshore oil and gas lease sales? 

Ms. KLEIN. I am sorry, could you repeat the question? 

Mr. WESTERMAN. Have you done any planning to delay the three 

sales? 

Ms. KLEIN. No, we have not done any planning to delay any 

sales. 

Mr. WESTERMAN. So, there is no scenario or plan in place to 

cancel any of the three oil and gas lease sales. 

Ms. KLEIN. We are required under the National Environmental 

Policy Act and a number of other statutes to conduct environmental analysis of those potential sales, so that process is underway. And, of course, an agency like BOEM doesn’t act until there 

is a Record of Decision, and that is where we are in the process 

right now. 

Mr. WESTERMAN. What is an example of something that would 

cause you to trigger your authority and cancel the sales, even 

though doing so would destroy the ability to sell offshore wind? 

Ms. KLEIN. Well, one of the reasons that sales have been canceled in the past was the Deepwater Horizon oil spill, which killed 

11 people and caused billions of dollars worth of damage in the 

Gulf of Mexico. 
31 

Mr. WESTERMAN. So, you are saying if there was another incident like that, you would cancel the oil and gas sales, and all the 

wind sales? 

Ms. KLEIN. Saying anything about canceling lease sales at this 

point would be pre-decisional. As I said, we are in the environmental review process, and that process is underway. 

Mr. WESTERMAN. Representative Graves talked about how long 

it takes to construct an offshore oil platform, and the cost that goes 

with it. How much of that cost gets offset by the Federal Government or by the taxpayer? 

Like, what programs are out there to help oil companies develop 

offshore platforms? 

Ms. KLEIN. Thank you for the question. 

I think over the years there have been a number of programs 

that have supported the development of fossil fuel, including the 

statutes we operate under, our tax code, the way that royalties are 

set—— 

Mr. WESTERMAN. When you say tax code, are you talking about 

depreciation of assets? 

Ms. KLEIN. As I said, at the Bureau of Ocean Energy Management we are really focused on ensuring that, in part, operators are 

fully internalizing the cost of doing business. We mentioned the 

financial assurances rule, which is one of the ways that we are 

making sure of doing that. 

Mr. WESTERMAN. I think you are missing the question. There is 

no program that subsidizes the oil and gas industry. That is outside of any kind of tax program, that any business gets to 

depreciate assets. I have heard my colleagues across the aisle talk 

about the handouts to oil and gas companies, and I finally figured 

out they were talking about depreciation schedules, which any 

manufacturing company, if you own a bakery you get to depreciate 

your ovens. 

But let’s switch gears and talk about offshore wind. If you are 

going to build an 8 megawatt wind tower, what kind of programs 

are out there from the government to help the construction cost? 

Ms. KLEIN. Well, I think the President has made clear that he 

thinks the climate crisis is a real challenge, and the Federal 

Government has an obligation to do something about it, so—— 

Mr. WESTERMAN. But what are those programs like? Like, what 

kind of tax credits are available? 

Ms. KLEIN. The Bureau of Ocean Energy Management is not 

responsible for the suite of tax credits, but they do exist for the 

offshore wind—— 

Mr. WESTERMAN. Well, there are 30 percent tax credits, there are 

production tax credits, you can get $0.027 or $0.03 per kilowatt 

hour, which could be, if the windmills actually operate, hundreds 

of thousands, if not millions of dollars of taxpayer money every 

year, which if that is a decision Congress has made, it is the 

Administration’s job. But it is not fair to say that offshore oil and 

gas gets subsidized when they don’t, when they actually are paying 

in royalties off of what they produce, yet offshore wind gets huge, 

huge subsidies from the taxpayer. Otherwise, it wouldn’t be cost 

effective to build these facilities. 
32 

So, I think we just need to clear the air on who is getting the 

subsidies, where the cost is to the taxpayer that they are not seeing 

because it is hidden in tax cost. And the oil and gas industry does 

not get these huge subsidies and credits that it is often claimed 

that they get. 

And I am way out of time, and I yield back, Mr. Chairman. 

Mr. STAUBER. Thank you very much. 

I want to thank the witnesses for their valuable testimony and 

the Members for their questions. 

The members of the Subcommittee may have some additional 

questions for the witnesses, and we will ask you to respond to 

these in writing. 

And to the witnesses, you will have questions given to you. 

We were going to go a Round 2, but it was decided we won’t. 

Under Committee Rule 3, members of the Committee must 

submit questions to the Subcommittee Clerk by 5 p.m. on 

Wednesday, May 29. The hearing record will be held open for 10 

business days for these responses. 

OK. Well, we hadn’t closed down, Representative Gosar. We were 

just closing statements. You made it, good job. 

You can open up your books, there will be more questions. 

Representative Gosar, you are up for 5 minutes. You made it just 

in time. 

Mr. HUFFMAN. Mr. Chairman, to give Mr. Gosar a chance to 

catch his breath, could I ask for unanimous consent on two things 

real quick? 

Mr. STAUBER. Yes, you can. 

Mr. HUFFMAN. Thank you. I would like to enter into the record 

a report from the IMF citing over $649 billion in subsidies for oil 

and gas. That is if you consider the health and environmental 

impacts that the taxpayers pick up the tab for every year. 

And then a second one I would like to enter into the record by 

unanimous consent is just the final vote on the Inflation Reduction 

Act in both Houses, because we have had a long line of questioning 

where my Republican friends are hopping mad about the fossil fuel 

giveaways in that leasing formula, and every one of them voted 

against the legislation. 

Mr. STAUBER. Without objection. 

[The information follows:] 
33 

The full document is available for viewing at: 

https://docs.house.gov/meetings/II/II06/20240523/117251/HHRG118-II06-20240523-SD005.pdf 
34 
35 
36 
37 

Mr. HUFFMAN. Thank you. 

Mr. STAUBER. Representative Gosar, have you got your breath? 

Dr. GOSAR. I got my breath. 

Mr. STAUBER. You are up for 5 minutes. 

Dr. GOSAR. I thank the gentleman from California for giving me 

my breath back. I know it has been a left-handed day in a righthanded world or, if you are a left-hander, it is a right-handed day 

in a left-handed world. 

Anyway, Directors, when each of you issue an order or a decision 

to an operator, that decision is appealable. However, it is not 

appealable to an independent judge. Instead, the operator must go 

through the Department’s administrative process, which means the 

appellate proceeds through the Interior Board of Land Appeals, or 

the IBLA, which answers to the Secretary. 

Currently, that board has a backlog of over 600 matters. Of 

these, your agencies collectively account for one-third, some of them 

dating back to 2014. Specifically, BSEE has 157 pending appeals; 

ONR squared has 37; BOEM has 2. Now, some of these appeals 

may be voluntarily paused. However, others are not, and these appellants are stuck in an administrative purgatory that cannot be 

easily resolved. 

So, a question for each of you. Until the IBLA or the Secretary 

issues a final decision, can an operator seek judicial relief within 

the Federal courts? 

Ms. KLEIN. Thank you for the question. We are happy to take 

that back. I imagine that it depends on the nature of the appeal. 

Dr. GOSAR. OK. 

Mr. SLIGH. Thank you, Congressman, for that question. I would 

have to agree with Director Klein. Each case is based on its own 

merits, and we would have to take that back as a question for the 

record. 

Dr. GOSAR. OK. So, Director Klein and Director Sligh, is there 

a time limit on your appeals? 

Ms. KLEIN. Again, I would have to take that back. I think it 

depends on the nature of the appeal. 

Dr. GOSAR. OK. Director Cantor, do you have a time limit on the 

appeal? 

Mr. CANTOR. Thank you for the question, Congressman. There is 

a 33-month time limit on appeals that are made to the IBLA, and 
38 

then the IBLA loses jurisdiction, and the company has an opportunity to go to Federal court. 

Dr. GOSAR. Is there an incentive? Because it is my understanding that if the time expires, the amount is over $10,000, that that 

ruling is automatically in your favor. Correct? 

Mr. CANTOR. That is correct. 

Dr. GOSAR. Mr. Cantor, what we have heard is the deck is 

stacked against operators that receive an adverse ruling through 

your agencies. They must sit through an indefinite administrative 

appeal or be forced to face an automatic loss, where they must 

overcome agency deference. It sounds like a legislative solution 

might be needed to fix this process. 

Would you commit to work with me and my office on a solution 

that works to resolve this process of what sounds a bit like 

choosing between a rock and a hard place? 

Mr. CANTOR. I thank you for the question, Congressman. We are 

always open to working with you and your staff. 

Dr. GOSAR. Wonderful. Thank you so much. I also have some 

questions. 

The proposed budget includes funding for land acquisition. In 

reality, many counties that I represent have way too much Federal 

land. For example, La Paz County, Arizona is about 95 percent 

Federal lands, depriving the locality of development and revenue. 

Mr. Biden’s budget also proposes significant increases in funding 

for environmental efforts, yet fails to address the urgent need for 

reforms in the revenue-sharing agreements with states that host 

Federal lands. How can you justify prioritizing conservation 

spreading over ensuring equitable compensation for states like 

Arizona that bear the burden of hosting these resources? 

Ms. KLEIN. Thank you for the question. I think much of that is 

probably directed to the onshore agencies, and we would be happy 

to take that question back and get an answer for the record. 

Dr. GOSAR. OK. Well, I am going to do one more. Given the 

recent increase in energy prices and concerns about energy independence, how does the budget proposal address the need to 

streamline permitting processes and encourage domestic energy 

production on Federal lands, rather than imposing barriers and 

delays? 

Ms. KLEIN. Thank you again for that question. Certainly, we 

have been spending a lot of time to streamline our permitting processes to ensure that we are still resulting in robust decisions that 

reflect our environmental and statutory responsibilities in the offshore wind context. We have been able to go from zero to eight 

approved projects, given our all-of-government approach and our 

ability to streamline a lot of those permitting processes. 

Dr. GOSAR. Have you seen any derogatory effects of these big 

wind projects, particularly with the whales? Or is it constantly in 

study? 

Ms. KLEIN. I am sorry, could you repeat the question? 

Dr. GOSAR. Yes, some of the thought processes were that the 

wind turbines, these offshore wind turbines, were having some 

effect in regards to whales and their geospatial placement. 

Ms. KLEIN. Sure. Thank you for that question. There is really no 

evidence right now that anything having to do with offshore wind, 
39 

and particularly the G&G work that is done before offshore wind 

construction, is having any effect on whales. We certainly have a 

whole suite of mitigation measures that we require of offshore wind 

operators before they can proceed with construction and throughout 

the project to make sure that their activities are avoiding, minimizing, and then mitigating any impacts that might occur. But 

right now, there is no data to suggest that the operations so far 

have had any impact on whales. 

Dr. GOSAR. Is it an ongoing study? 

Ms. KLEIN. Well, we have a number of studies that are underway, and active monitoring at our construction projects. And, 

again, there is just no evidence that any of the whale strandings 

that have occurred on the East Coast are at all related to the G&G 

and seismic work and any of the work that is happening on the offshore wind space. 

Dr. GOSAR. Thank you. I appreciate it. 

I yield back. 

Mr. STAUBER. Thank you very much. 

Before we close, I do want to enter into the record, at 

Representative Graves’ request, I want to enter it with unanimous 

consent. It is a chart, ‘‘Record Profits Are Higher Under Democratic 

Administrations.’’ 

[The information follows:] 

Mr. STAUBER. Also, Representative Huffman brought up the IRA. 

He, under unanimous consent, wanted the roll call vote in the 

record. I will note the IRA was endorsed and supported by the oil 

and gas industry, and every Republican in the House of 

Representatives voted against it. 
40 

So, the members of this Subcommittee, as I said, may have some 

additional questions for the witnesses, and we will ask you to 

respond to these in writing. And I already told you that you are 

going to have some. 

Under Committee Rule 3, members of the Committee must 

submit questions to the Subcommittee Clerk by 5 p.m. on 

Wednesday, May 29. The hearing record will be held open for 10 

business days for your responses. 

If there is no further business, without objection, the Committee 

stands adjourned. 

[Whereupon, at 11:08 a.m., the Subcommittee was adjourned.] 

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