Sixth District Congressman Bob Goodlatte has reintroduced legislation that would open exploration for natural gas and crude oil off the Virginia coast.
“Every day, folks across Virginia and the nation are confronted with the rising cost of energy, from the cost at the pump to soaring electric bills. I believe that Virginia should have every tool available to access its energy supplies. The Virginia Access to Energy Act will create a path for Virginia to become the Energy Capital of the East Coast,” said Goodlatte, whose bill would require the Department of the Interior to proceed with the sale of leases to energy companies interested in exploration no later than one year after passage of the legislation, on Tuesday.
On March 31, 2010, President Barack Obama announced that lease sale 220 off the coast of Virginia would move forward, making Virginia the first state on the East Coast to be able to explore for and produce offshore oil and natural gas. On May 27, 2010, the president cancelled the lease sale in the wake of the BP Gulf oil spill effective immediately, announcing that no areas off the Atlantic Coast would be available for energy development in the next five-year plan (2012-2017). This means that the earliest a lease sale could even occur off Virginia would be in 2017.
The lease sale area consists of roughly 2.9 million acres offshore of the Commonwealth in the Mid-Atlantic Planning Area, at least 50 miles offshore. Analysts estimate that this area may contain 130 million barrels of oil and 1.14 trillion cubic feet of natural gas. The Virginia General Assembly has passed legislation supporting offshore energy production and directing future offshore energy revenues to transportation and renewable energy research.
“Opening these offshore resources to safe exploration and development will result in new jobs and will speed our economic recovery,” Gov. Bob McDonnell said Tuesday, citing estimates that offshore energy development could add 2,578 full-time equivalent positions on an annual basis, induce capital investment of $7.84 billion, yield $644 million in direct and indirect payroll, and result in $271 million in new state and local revenue.
“I applaud Congressman Goodlatte’s efforts to introduce this bill, which stipulates that revenue generated from the lease sale and activities will be shared evenly between the state and federal government. The federal share of this revenue will be dedicated to paying off the federal debt which is at an immoral and unsustainable level,” McDonnell said. “Allowing the private sector to explore Virginia’s offshore natural resources and bring new energy options to Virginia is common sense, and this legislation will ensure that these leases would begin benefitting the citizens of the Commonwealth in 2012.”
Also on Tuesday, Democratic Sen. Jim Webb called for the Obama administration to include Virginia in its five-year lease plan and to revise its lease map, which the senator said places unfair limitations on Virginia’s offshore resources.
“As gas prices rise, in part due to America’s dependence on foreign oil, we must pursue robust energy policies that include the expansion of our domestic energy resources in a safe and secure manner, as well as conservation and clean energy measures. Opening up more of the nation’s outer continental shelf resources to responsible natural gas and oil exploration should be a priority,’ Webb said.
Webb also called on legislators from Virginia and neighboring states to work together to expand upon the Virginia-specific offshore legislation introduced by Goodlatte.
“I agree with the intent of the bill that Congressman Goodlatte is introducing today, but after significant consideration, I believe that we may best accomplish these goals by working together with other states to fashion more broad-based legislation,” Webb said.
Webb in 2008 cosponsored legislation with then-Sen. John Warner similar to the Goodlatte legislation introduced on Tuesday to allow the Commonwealth to conduct energy exploration activities in the outer continental shelf with revenue-sharing provisions. Webb has repeatedly urged the Obama administration to keep Virginia’s Lease Sale 220 on schedule and has opposed the administration’s recent decision to delay exploration of much of the nation’s offshore resources.
Story by Chris Graham. Chris can be reached at [email protected].
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