Environmental Health News

DENVER—The U.S. House of Representatives is expected to vote soon on the Deep Ocean Energy Resources Act, a bill that would provide huge subsidies for oil shale development to oil companies by waiving royalty payments.

H.R. 4761 also subsidizes oil companies by waiving or reducing royalties on offshore drilling and other risky and unproven energy sources such as tar sands. The bill could have could have disastrous consequences for the environment, taxpayers, and oceans.

The oil shale provisions submitted by Rep. Pombo (R-CA) also undermine a bipartisan agreement reached in the Energy Policy Act of 2005 which encouraged development of these new resources while ensuring a fair rate of return.

“Good tax policy doesn’t start with a handout to oil companies at the expense of our environment,” said Steve Bonowski of Republicans for Environmental Protection in Denver. “Oil shale is a risky venture that could have disastrous consequences for our public lands, air, and water if we don’t proceed with caution.”

According to the federal Mineral Management Service, this bill would cost taxpayers $460 billion over the next 60 years.

Similarly, the Bush Administration raised concerns of its own during testimony before the House Resources Committee about the $69 billion cost to taxpayers over the first 15 years.

“Our leading energy problem is dependence on oil,” continued Bonowski. “We will not drill our way to energy independence, whether in the Rockies, the Arctic, or offshore.”

CoPIRG, a statewide consumer and public interest advocacy organization, also opposes taxpayer subsidies to oil companies.

"At a time when oil companies are recording record profits, Congress shouldn’t be handing out subsidies to oil companies for unproven and expensive energy sources such as oil shale,” said Rex Wilmouth, Executive Director of CoPIRG.

“We could save Colorado consumers $324 million in 2016 if we raised gas mileage standards to only 33 mpg,” continued Wilmouth.

The bill would also force the Bureau of Land Management to process oil leasing in only ten days even if proper environmental assessments have not been completed.

“Congress is about to let oil companies run roughshod over our environment ,” said Matt Garrington, Field Director for Environment Colorado. “This ‘lease now and ask questions later’ policy will have major impacts on Colorado’s air and water quality as well as wildlife.”

“Drilling our nation’s coastline will do nothing to ease pressures to drill in Colorado and is a race-to-the-bottom for our environment,” continued Garrington. “With only 3 percent of the world’s oil reserves, it just does not make sense for us to continue to sacrifice our most valuable lands in the West and our nation’s coasts when we clearly have better alternatives.”

The Deep Ocean Energy Resources Act was initially drafted to end a 25 year moratorium on offshore oil drilling which currently protects some of our nation’s most valuable coast before additional provisions were added to speed oil shale and tar sands development.

According to the Mineral Management Service, over 80 percent of all economically recoverable oil and gas reserves in our nation’s oceans are in areas open to drilling and outside the moratorium.

“Adding insult to injury, oil and gas companies only produce on 17 percent of their current offshore leases,” said Garrington. “Where’s the need to give away every last bit of our shores when oil companies are sitting on over 6,000 offshore leases.”

Organizations opposing H.R. 4761 and the oil shale and tar sands provisions include Republicans for Environmental Protection, Taxpayers for Common Sense, CoPIRG, Environment Colorado, Western Colorado Congress, Biodiversity Conservation Alliance, Colorado Environmental Coalition, Western Resource Advocates, Earthjustice Environment Colorado, Wilderness Workshop, Natural Resources Defense Council, Oil and Gas Accountability Project, Sierra Club, Forest Guardians, Southern Utah Wilderness Alliance, The Wilderness Society, and Californians for Western Wilderness.

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REP America was formed in 1995 to resurrect the GOP's great conservation tradition and to restore natural resource conservation and sound environmental protection as fundamental elements of the Republican Party's vision for America.

For more information visit http://www.repamerica.org/co/co_index.html.

Environment Colorado focuses on protecting air and water quality, promoting a sustainable energy policy, implementing transit oriented solutions to Colorado's transportation problems and curbing sprawl by promoting responsible land use planning. Environment Colorado utilizes the time-tested tools of research, public education, advocacy and organizing.