SENATORS PUSH USE IT OR LOSE IT AMENDMENTS TO ENERGY SPECULATION BILL

Washington, D.C. – U.S. Senators Russ Feingold (D-WI), Christopher Dodd (D-CT), and Robert Menendez (D-NJ) are continuing their push to ensure that, before the oil companies seek additional leases, they develop the 68 million acres of federal land they currently lease.  The trio is attempting to offer several amendments to the energy speculation legislation currently being considered by the Senate. Feingold, Dodd and Menendez recently introduced the “Responsible Federal Oil and Gas Lease Act” and “Responsible Ownership of Public Land Act.” The first requires oil companies to show they are either producing oil or gas - or making progress exploring or developing – on current leases before they obtain more.  The Responsible Ownership of Public Land Act, which the trio introduced along with Senator Dick Durbin (D-IL), would charge oil companies a fee for every acre of land they lease but do not use for production.  The Senate could vote on the oil speculation legislation as early as Tuesday, July 22. 

“With oil companies asking for more federal lands when they aren't producing oil on most of their current leases, it is time for Congress to step in and insist on some accountability,” Feingold said.  “The quickest way to produce more oil is to develop lands already under lease since exploration is underway and much of the infrastructure, like miles and miles of pipeline, is in place.”

“People are hurting, they’re angry, and they want their elected leaders to do something to lower their energy costs,” said Dodd. “Republicans are offering their same failed energy policies – drill, drill, drill - yet 68 million acres are already leased by oil companies and left unexplored. Instead of continuing the policy of padding the coffers of oil executives while American families struggle, it is time to tell these companies they can either ‘use it or lose it.’” 

Senator Menendez said, “Our government needs to stop holding the oil companies’ hand and start holding them accountable. As American families face sky-high gas prices, they deserve a government that works for them, not for oil companies making record profits. We’ve heard a lot of Bush-McCain talk about the importance of drilling, and if they want to back their words with action, they should join us in this effort.”

While some are calling for opening up more federal lands for drilling, the oil companies have not explained why they have not produced on over three-quarters of federal lands and waters they currently lease. Federal lands and waters that are already available for leasing contain over 100 billion barrels of oil and gas resources.  Between 1999 and 2007, the federal government increased the number of drilling permits by 361 percent, however oil companies are not keeping pace. While the Bureau of Land Management issued 28,776 permits to drill on public land in the last four years, wells have not been drilled on over a third (9,822).  Current federal law allows oil companies to sit on leases for the entire length of the lease term, which is typically 10 years, and there are no requirements that they develop the lands. 

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