Republican News

Republican News

            WASHINGTON – U.S. Senator Pete Domenici, ranking member of the Senate Energy and Natural Resources Committee, today issued the following statement regarding provisions contained in the Farm, Nutrition, and Bioenergy Act of 2007 (HR.2419) that address outer continental shelf deepwater leases negotiated in 1998 and 1999:
 
            “The House of Representatives today passed a farm bill which includes provisions that impose a fee on oil and gas produced from deepwater leases that were negotiated in 1998 and 1999.   This is troubling for a number of reasons.
 
            “First, a bill that seeks to meet our nation’s agricultural needs is not the right place to decide this issue.  This complicated question would best be addressed in the House and Senate committees that have jurisdiction over the issue.
 
            “Second, while I agree that it is unfortunate that an error made by the Clinton Administration has cost the Federal Treasury revenues, a punitive provision such as the one in the House farm bill will not solve the problem.  In fact, it will make it worse by ensuring years of litigation.
 
            “Third, imposing fees on domestic oil and gas production would only serve to raise the price of gasoline, and could cause a delay in leasing.  I’m quite sure that America’s consumers do not want to be paying more at the pump.  Congress should be working to try to lower prices, not increase them.
 
            “It is my hope that the Senate will move forward with a farm bill free of these types of measures.  In addition, I look forward to finding a better, legally permissible approach to the OCS lease question that will bring companies back to the table and bring revenue into the Federal Treasury.”
 
 
 
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