Little U.S. energy legislation is awaiting action as the 104th Congress enters its final months.
Legislators have been preoccupied with the federal budget stalemate for the past 2 months, and legislative business has been slowed more than usual.
The pending budget reconciliation bill, passed by Congress and vetoed by President Clinton, contains several items of interest to the oil industry.
Foremost is a provision that would allow exploration on the Arctic National Wildlife Refuge Coastal Plain.
Key issues
Few observers think the ANWR issue will survive the White House-congressional negotiations on the budget bill because Clinton staunchly opposes ANWR drilling and none of the Republican congressional leaders involved in the talks are more than lukewarm toward ANWR (OGJ, Nov. 6, 1995, p. 31).
Also tucked in the bill is a provision relaxing the alternative minimum tax and a royalty simplification measure. The latter places a 6 year statute of limitations on the federal government's back collection of royalties.
The White House opposes the royalty simplification bill (OGJ, Dec. 18, 1995, p. 20). If it is deleted, it might be inserted in other legislation this year.
It appears likely that Congress will relax tough oil spill insurance requirements for offshore operators.
The 1990 Oil Pollution Act raised the insurance requirement for offshore operators to $150 million from $35 million, which industry says is too high (OGJ, Jan. 1, p. 24).
The House and Senate have approved Coast Guard authorization bills that permit a $35 million level unless the administration determines more is needed in a particular situation. A House-Senate conference committee is expected to merge the two bills soon.
The Senate passed a measure to impose sanctions on foreign oil companies that help Iran or Libya develop their oil fields (OGJ, Oct. 16, 1995, p. 40).
At first, the measure was aimed only at Iran, but an amendment by Sen. Edward Kennedy (D-Mass.) expanded it to Libya, which is believed to be implicated in the bombing of Pan Am Flight 103. The House is expected to act soon.
Both houses approved a Defense Department spending authorization bill that would allow the sale of the government's share in Elk Hills Naval Petroleum Reserve.
Chevron Corp., which owns 22% of the California field, says private firms could operate the field more efficiently than the government, which could garner up to $2 billion from the sale.
Other bills
The oil industry could be affected by moves to reauthorize and reform the Clean Water Act, Comprehensive Environmental Response Compensation and Liability Act (Superfund), and Endangered Species Act.
Oil lobbyists also are urging legislative action on federal regulatory reform and risk assessments before rules are drafted.
As in past presidential election years, the congressional clock has begun to tick at double time.
Any legislation not passed by early summer runs the risk of being stalemated in a politicized Congress when Clinton and legislators launch their reelection campaigns.
Copyright 1996 Oil & Gas Journal. All Rights Reserved.