House Rejects ‘Use It or Lose It’ Drilling Legislation

By Ken Ward Jr.

Staff writer

Rep. Nick J. Rahall won a majority of votes Thursday on his legislation to force companies to use or lose 68 million acres of federal oil and gas leases, but did not get the support needed to pass the bill in an expedited process.

The West Virginia Democrat and Natural Resources Committee Chairman wants the industry to drill on leases that they’ve stockpiled before Congress considers opening more federal lands or reversing restrictions on offshore drilling.

House members voted 223-195 in favor of Rahall’s bill. But Democratic leaders had tried to push the bill through on an expedited vote that would have required a two-thirds favorable vote.

“Today, a majority of the House of Democrats voted to compel Big Oil to stop speculating with the public’s energy resources and drill on the federal oil and gas leases it holds, and drill on them now,” Rahall said after the vote.

“But Republicans in the Congress appear to be more intent at playing politics at the pump, rather than voting for sensible solutions to our energy woes,” Rahall said. “They talk the talk, but they did not walk the walk when it came to a measure that has the potential to nearly double U.S. oil production and cut oil imports by one-third.”

The Rahall bill would force oil and gas companies to either produce or give up federal onshore and offshore leases. It bars companies from obtaining any more leases unless they can demonstrate that they are producing oil and gas, or are diligently developing the leases they already hold.

Coal companies are already required to show that they are diligently developing their leases during the initial lease term. The requirement is part of the Federal Coal Leasing Amendment Act of 1976, passed to end rampant speculation on federal coal during the energy crisis of the 1970s.

Over the last few weeks, the Rahall legislation has been at the heart of a heated debate in Washington over whether the nation can drill its way out of $4-a-gallon gasoline.

Last week, President Bush challenged congressional Democrats to lift restrictions on offshore drilling. Republicans want to open up the Arctic National Wildlife refuge to drilling, and say other restrictions on public land are partly to blame for higher oil prices and the nation’s reliance on foreign oil.

But Rahall’s committee produced a report that showed the vast majority of oil and gas reserves on public lands are already available for leasing. And, the report shows, oil and gas operators are not using the leases that they already have.

Rep. Shelley Moore Capito, R-W.Va., was among the GOP members who spoke on the floor against Rahall’s legislation.

“Use it or lose it is already the law,” Capito said in her floor speech. “The Secretary of Interior can already cancel a lease if the lessee fails to comply with the terms.”

Rahall responded that, while the government can cancel leases if companies fail to comply with lease terms, no lease terms require those companies to actually drill or diligently move toward drilling.

“We are not opposed to drilling,” Rahall said. “We are in favor of drilling on leases that the oil industry already has.”

Rep. Alan Mollohan, D-W.Va., voted in favor of Rahall’s legislation.

Reach Ken Ward Jr. at kward@wvgazette.com or 348-1702.

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