Hill Heat

From the Wonk Room.

It seems that Rep. Neil Abercrombie (D-HI) is crafting a plan that could lead to the inundation of Hawaii’s beaches, the extinction of its species, and the destruction of its water supply. Abercrombie and John Peterson (R-PA) are creating a “working group” to establish a “comprehensive, environmentally responsible energy plan,” whose members will be announced today. The centerpiece of this plan is opening protected coasts to drilling for more oil, as Abercrombie told the Hill:

Simply standing up and saying, you can’t drill your way out of this doesn’t work. The people are standing up and saying, “Yes, we can.”

The unique beaches, coral reefs, and oceanic ecosystems of Hawaii won’t be directly threatened by expanded offshore drilling, as the ocean that surrounds it doesn’t have fossil reserves. An oil spill or two could get tourists to flee the beaches of California, Florida, and the states of the eastern seaboard in favor of the Aloha State.

But in reality, Abercrombie’s advocacy of increasing fossil fuel production as a climate crisis looms will have deeper repercussions for this necklace of islands than perhaps any other state in the nation. Big Oil wants the world to keep burning fossil fuels at a rate that would increase global temperatures by five to seven times more than we’ve already experienced. Even more modest increases would spell catastrophe for islands like the Hawai’ian chain:

At the hearing, Chairman Feinstein will call for passage of legislation she has sponsored to close a loophole that has allowed oil and gas companies to pay no royalty payments for drilling on the Outer Continental Shelf for leases negotiated in 1998 and 1999. This measure to close the loophole was stripped from the FY2008 Interior Appropriations bill.

Under this provision, the companies who have not renegotiated their existing contracts will have a choice.

• They can keep their existing leases royalty-free if they so choose, but be barred from bidding on new contracts, or
• They can agree to renegotiate these leases in good faith and be able to participate in the bidding for new leases.

Witnesses

• C. Stephen Allred, Assistant Secretary for Lands and Minerals Management, Department of the Interior
• Randall Luthi, Director, Minerals Management Service

26/02/2008 at 10:00AM

Randall Luthi, the controversial chief of the Department of Interior’s Minerals Management Service, will be testifying at a Senate Appropriations subcommittee tomorrow morning. His decision to hold the Chukchi Sea drilling lease sale two weeks ago, the first offshore sale in over a decade, while the Fish & Wildlife Service continues to delay its ruling on the endangerment of polar bears, has garnered protests from government scientists, environmental groups and Congressional Democrats.

Sen. Feinstein, the chair of the subcommittee, released the following statement:

At the hearing, Chairman Feinstein will call for passage of legislation she has sponsored to close a loophole that has allowed oil and gas companies to pay no royalty payments for drilling on the Outer Continental Shelf for leases negotiated in 1998 and 1999. This measure to close the loophole was stripped from the FY2008 Interior Appropriations bill.

Feinstein has been pushing for this legislation at least since 2006, since the loophole in 1998 and 1999 leases issued under the Deep Water Royalty Relief Act of 1995 was discussed in Congressional hearings.

Despite opposition from environmental organizations and Democrats in Congress, the Minerals Management Service is proceeding with its scheduled sale of offshore drilling leases in the Chukchi Sea at 9 AM Alaska time (1 PM EST). FWS chief Dale Hall failed to make the February 6 deadline despite his testimony to the Senate Environment and Public Works Committee last week that he was “pushing to get there.”

A Los Angeles Times op-ed penned last weekend by MMS director Randall Luthi, The Bear Necessities, defends the lease sale, claiming that “under the Marine Mammals Protection Act, the bear currently receives regulatory protections even stricter than those available under the Endangered Species Act.” This statement ignores the critical habitat provisions of the ESA which could prevent such actions as the lease sale.

Last week MMS officials sent a cease-and-desist order to Public Employees for Environmental Responsibility, who earlier published “a series of internal e-mails from current and former Interior scientists raising troubling questions about how badly environmental assessments of Arctic offshore oil development were skewed.”

The Alaska Wilderness League plans to live-blog the sale.

Update The sale has been completed, the 488 blocks selling for a total of over $2.6 billion.

Estimated reserves include 77 trillion cubic feet of conventionally recoverable natural gas (worth about $635 billion at $8/MMBtU) and 15 billion barrels of oil ($1.5 trillion at $100/barrel).

The winning bidders:

• Shell (Netherlands, $2.1 billion)
• ConocoPhilips (US, $506 million)
• Repsol (Spain, $14.4 million)
• Eni (Italy, $8.9 million)
• StatoilHydro (Norway, $14.4 million – most Statoil & Eni bids were joint bids)

As StatoilHydro noted in its press release, “The area is considered a frontier area with no production or infrastructure as of today.”

Senate Hearing

In today’s Senate Environment and Public Works Committee hearing on the Fish and Wildlife Service’s now-illegal delay in ruling whether polar bears are an endangered species, Sen. Boxer (D-Calif.) sharply rebuked the FWS director Dale Hall. She noted that the Alaska field office sent a recommended decision to Hall on December 14th of last year. Hall refused to discuss the recommendation, saying it would be “inappropriate” to discuss internal deliberations.

Hall gave as his only reason for the delay past the January 8 deadline the need to present a “high-quality” decision that responds in full to the voluminous public comments received. He stated that there was no significant scientific uncertainty in the endangerment posed by global warming to polar bears, the only reason for delay the Endangered Species Act permits. Under repeated questioning from Sens. Boxer and Lautenberg (D-N.J.), Hall said he wanted to present a decision, if possible, by February 6th.

Hall noted that in many ways the Marine Mammals Protection Act provides stronger protection than the Endangered Species Act for polar bears even if a finding of endangerment were made – a claim criticized by Andrew Wetzler of NRDC, who noted that the MMPA does nothing to protect critical habitat, the matter which would affect the planned sale of drilling rights in the Chukchi Sea.

MMS Speaks

On that front, Ben Gemen reports for E&E News that Minerals Managment Service director Randall Luthi said any delay of the scheduled February 6 sale of Chukchi Sea leases would prevent any oil-and-gas exploration in 2008. However, he also stated that the agency position is that:

there is no need for a delay, regardless of what FWS decides. He said that even in the absence of a listing, energy development is accompanied by several layers of environmental review and safeguards, including collaboration with FWS and the National Marine Fisheries Service.

Kerry Moves to Block

Meanwhile, Sen. Kerry (D-Mass.) introduced legislation yesterday that would block lease sales in the Arctic until Endangered Species Act decisions are made on the polar bear and its critical habitat, mirroring Rep. Markey’s (D-Mass.) proposed legislation in the House.

Internal Emails Show MMS Staff Outcry

Finally, Public Employees for Environmental Responsibility has released over the past week communications from MMS scientists pleading with the political appointees to delay the lease sale (contrary to Luthi’s January 17th testimony) and DOI directives forbidding MMS scientists to consider the possible threat of invasive species from opening the seas to drilling.

Witnesses

Panel I

• FWS Director Dale Hall

Panel II

• Andrew Wetzler, Natural Resources Defense Council
• Margaret Williams, World Wildlife Fund
• Brendan Kelly, University of Alaska
• Richard Glenn, Alaskan Arctic resident and sea ice geologist
• J. Scott Armstrong, University of Pennsylvania Wharton School

30/01/2008 at 10:00AM

Rep. Edward Markey (D-Mass.) has released the text of legislation which, if enacted, would forbid the sale of off-shore drilling rights in the Chukchi Sea, which includes polar bear habitat, until the U.S. Fish and Wildlife Service makes its long-delayed determination whether the polar bear is endangered and what its critical habitat is.

At today’s hearing, FWS director Dale Hill made it clear that he recognizes that the polar bear is definitely losing habitat and has been delaying his determination to make it “clear”; he also stated, “We need to do something about climate change starting yesterday.”

Minerals Management Service Director Randall Luthi admitted that if the lease auction goes forward, it would be impossible to revoke the leases even if they are found to be in conflict with a later endangerment listing of the polar bear.