Tuesday, June 02, 2009

Lawmaker joins push to up cost of drilling

A powerful congressional chairman has joined a growing number of Democrats who want to sharply increase the cost of drilling leases that the government provides on federal lands, a move vigorously opposed by Big Oil and Republicans. Rep. Nick J. Rahall II, West Virginia Democrat and chairman of the House Natural Resources Committee, has proposed a plan to boost royalty rates by 50 percent and to cut the lease periods to five years from the current 10 years or more. His recommendation would be part of a sweeping overhaul of the $22 billion, scandal-tarred oil and gas drilling program that the Interior Department oversees. The plan also appears in line with the broader energy goals of Interior Secretary Ken Salazar, who is conducting a review of the Interior Department's handling of oil and gas leases and royalties as the House prepares to push through a bill to address climate change and the Senate works on its own energy legislation. Mr. Rahall's plan fits neatly into the broader efforts of the Obama administration and congressional Democrats to make a "dramatic shift" in energy production toward green sources, said Sharon Buccino, director of land and wildlife programs at the Natural Resources Defense Council...WTimes

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