Gas-Gouging Bill Fails in House

By The Associated Press

White House avoids Iraq oil deals WASHINGTON (AP) — The Bush administration indicated Tuesday that it had no plans to interfere with negotiations between Iraq and several Western oil giants to boost crude production in that country, despite concerns by some Democrats that the deal could inflame anti-U.S. sentiments. “Iraq is a sovereign country, and it can make decisions based on how it feels that it wants to move forward in its development of its oil resources,” said White House spokeswoman Dana Perino. News You can useWASHINGTON (AP) – House Democrats failed Tuesday to resurrect a bill to punish price gouging at the gas pump, while maneuvering to block Republican attempts to expand drilling, an idea gaining in popularity amid $4-per-gallon gas prices.Action on legislation that would assure continuation of the ban on oil and natural gas drilling in most of the country’s coastal waters was put off until later this summer after it became increasingly clear that Republican lawmakers may have the votes to lift the drilling moratorium.As Democrats prepared a string of energy proposals before lawmakers depart for the July 4 holiday recess, Republicans charged that they were being blocked from getting a vote on whether to end the ban on oil and gas drilling.Last week GOP presidential candidate John McCain as well as President Bush called for ending the blanket prohibition on energy development over 80 percent of the country’s waters. Republicans contend that the bans should be ended to allow for more domestic oil and gas production, an argument that has gained support with $130-per-barrel oil raising the cost of everything from food to air travel.The House Appropriations Committee has postponed consideration of an Interior Department spending bill that continues the drilling ban. Republicans had prepared a proposal that would have ended the ban and allowed oil and gas development 50 miles from shore in all U.S. coastal waters.”Somebody’s afraid that we’ll send a message” and lift the drilling ban, Rep. Jerry Lewis, of California, the ranking Republican on the Appropriations panel, said Tuesday as the panel focused on other legislation.The similar Interior spending bill, which also included the drilling ban, was put off in the Senate as well.Meanwhile, House Democratic leaders failed to get the two-thirds vote needed to push through a measure that would have made gasoline and diesel fuel price gouging a federal crime, with penalties of up to $2 million for individuals and possible jail time. The vote was 276-146.The House has passed similar gouging legislation previously, as has the Senate, only to be abandoned. Supporters of the bill argued that gouging is widespread, while opponents said it is not and would be difficult to prove even if it occurred.Democratic congressional leaders remain strongly opposed to lifting the drilling moratorium, arguing that oil companies already hold leases to 40 million acres of federal waters that they have not moved to develop.”One way you deal with this problem of supply … is to force oil companies and gas companies that own permits to drill them,” said Illinois Rep. Rahm Emanuel, a senior member of the Democratic leadership.Energy experts and oil geologists acknowledge it would take five to 10 years for any oil or natural gas to be produced if the ban were ended today.Democrats plan to push legislation that would require oil and gas companies to explore and develop the waters on which they already have obtained federal leases. If they don’t, they will lose the leases.

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