Iowans,

This is the first time that Gregg has suggested that he will support adding Arctic drilling to the budget.  He has been silent about it for several months.  That makes the work that we are doing on Nussle even more important.  He will be under an enormous amount of pressure to include in the House budget bill as well.  Keep up the pressure!!

Phyllis

ENVIRONMENT & ENERGY DAILY

Thursday, March 3, 2005

SPOTLIGHT

1. ENERGY POLICY

Gregg confirms ANWR likely in Senate budget resolution

Ben Geman, E&E Daily reporter

Senate Budget Committee Chairman Judd Gregg (R-N.H.) is strongly suggesting he will back efforts to use the budget process to drill in the Arctic National Wildlife Refuge after weeks of silence on the explosive issue.

Senate Budget Committee spokeswoman Cara Duckworth yesterday said Gregg will mimic the president's proposed fiscal year 2006 budget, which assumes $2.4 billion in leasing revenues in FY '07. "We are going to follow the president's leadership on ANWR," Duckworth said, adding there is a "reasonable chance" it will appear when the Senate Budget Committee takes up the budget next week.

Including ANWR revenues in the budget paves the way for removal of drilling prohibitions on the coastal plain in budget reconciliation legislation that cannot be filibustered. A Senate effort to open ANWR through the budget narrowly failed in 2003.

The addition of several new pro-drilling senators in the 109th Congress has given drilling advocates hope that they may succeed this time after years of frustration. "With control of the House and Senate and a couple more senators, I think the prospects are very encouraging at this time," said Alaska Gov. Frank Murkowski (R), a lead drilling proponent, during an appearance on E&ETV's OnPoint.

Murkowski reiterated that ANWR can be developed in an environmentally sensitive way that will also help address U.S. dependence on foreign oil. He also addressed what many have described as an apparent lack of interest among major oil companies.

"I think some of them want to have it both ways. You know, they want to appear that well, they're neutral on it, but if it's opened, I can assure you they will be there participating in bidding for leases in the area because they're very competitive as you know," he said.

Murkowski also reiterated his claim that the state may seek to develop the coastal area off ANWR if the onshore area is not developed. "The state has sovereign ownership of our three-mile limit. So that coastal area off ANWR is under the control of the state of Alaska. So we could initiate a drilling exploration program offshore, but we'd much rather proceed within the area on land. It's much easier. It has less engineering challenges, but you know there are other alternatives," he said.

Gregg's apparent willingness to include ANWR in the budget comes as the Senate, Bush administration proponents and several media outlets are preparing to leave this week for a tour of existing North Slope production sites and a visit to the refuge's coastal plain.

For their part, environmental groups and a strong coalition of Democrats have long argued ANWR oil would fail to dent U.S. dependence on foreign oil and would endanger a protected area that is home to rare species of caribou, musk oxen and polar bears. Several high-profile Senate Democrats have pledged to filibuster ANWR should it come to the floor as standard legislation.