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Statement on Offshore Oil and Natural Gas Amendments in the House of Representatives

Washington, D.C. (May 19, 2006)

FROM BARRY RUSSELL, IPAA PRESIDENT

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

"The removal of a provision that would have lifted a 25-year moratoria on offshore natural gas development means continued high prices for consumers and continued job losses for the agriculture, chemical, fertilizer and manufacturing industries.

"The moratoria on offshore exploration simply doesn't make sense. America's oil and natural gas industry has proven its ability time and again to safely produce energy for this country. We are the only nation in the world that has an offshore exploration ban.

"Last night, Representative John Peterson (R-PA) made an admirable defense of his efforts to lift the congressional moratoria on offshore natural gas exploration in the Outer Continental Shelf. It was a very close vote to keep the natural gas prohibition (217-203); perhaps, the vote reflects a significant recognition that the nation can no longer turn a blind eye to our energy problems. Much of the debate was distorted and the industry is hopeful that the facts about the safety of offshore exploration will come to light as the House Resources Committee drafts its comprehensive energy legislation over the next few weeks.

"It's important to remember that these energy supplies belong to all Americans. We should all want to have a safe, clean-burning, affordable supply of natural gas.

"In a separate amendment, the House voted to restrict domestic oil and natural gas companies from bidding on offshore leases unless they renegotiate contracts with the government that were signed in the late 1990s. This is an unfortunate act by Congress that threatens the credibility of federal contracts. The Clinton administration made a clear mistake in writing some lease contracts, and now Congress has made another mistake in writing this legislation.

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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.