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Federal Government Releases Proposed Five-Year Plan for Oil, Gas Development in Nation's Offshore Waters
--U.S. Oil, Gas Producers Call Proposal a 'Step in the Right Direction'--

The federal government released a draft proposed program ("The 2007-2012 Five-Year Leasing Plan") that sets out a proposed policy for oil and natural gas development in the nation's offshore waters. 

"The five-year proposed program recognizes that the nation must expand the development of offshore energy resources.  It's a step in the right direction," said Mike Linn, chairman of the Independent Petroleum Association of America (IPAA).  "As consumer demand for oil and natural gas rises, the country must meet the supply challenges by securing reliable energy from America's own reserves.  Offshore oil and gas producers are ready to meet this challenge, but need the federal government to open up the areas that are currently off-limits."

IPAA represents the companies who drill 90 percent of the nation's oil and natural gas wells and the companies that hold 90 percent of the leases in the Gulf of Mexico.

Today, 90 percent of the nation's offshore acreage -- the Eastern Gulf of Mexico, the East and West Coasts -- is off limits to development because of congressional or presidential moratoria.  It is estimated that the oil from these areas could replace Persian Gulf oil imports for the next 59 years.  This amounts to 300 trillion cubic feet of natural gas and 300 billion barrels of oil.

The five-year proposed program (2007-2012) was released by the Department of Interior's Mineral Management Service (www.mms.gov).  Included in the proposal:

• All current lease areas remain open.
• Lease area 181 -- proposed to open a significant portion of 181, known as "The Bulge."  A portion closer to the Florida border will remain off-limits to leasing.
• State of Virginia -- federal government is proposing to analyze and study area off the coast of Virginia.
• Area south of Sale 181 -- federal government will continue to examine this area's future potential for leasing. It is currently off-limits by both congressional and presidential moratoria.
• Florida --  no leasing within one hundred miles of Florida.

"This proposal is important because it opens up a portion of land in the Gulf of Mexico that was previously not offered for oil and gas exploration," said Linn referring to the area known as "Lease Area 181."  "Another positive proposal is the suggested dialogue with the State of Virginia to see if natural gas or oil development would make sense for that state."

Linn continued:  "However, the majority of the Outer Continental Shelf remains off-limits.  Congress and the President should recognize these valuable, domestic energy resources, as well as the stellar safety and environmental record of U.S. oil and natural gas producers."

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IPAA is the national trade association representing oil and natural gas producers that drill 90 percent of the nation's oil and natural gas wells. These companies account for 68 percent of America's oil production and 82 percent of its natural gas production.