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Murkowski promotes new energy bills Legislation would trigger a series of energy initiatives, including heightened OCS leasing, OCS revenue sharing and oil exporting ALAN BAILEY Petroleum News
In her role as chair of the Senate Energy and Natural Resources Committee, Sen. Lisa Murkowski, R-Alaska, has been pressing hard for new legislation which she thinks will benefit the energy economies of the United States, including Alaska. In recent action Murkowski has introduced a bill called the Offshore Production and National Security Act, which addresses oil and gas leasing on the outer continental shelf, including the thorny question of revenue sharing with the federal government, and which would also allow the export of oil from the United States. A second bill, the bipartisan Energy Policy Modernization Act of 2015, introduced by Murkowski and ranking committee member, Maria Cantwell, D-Washington, contains a series of provisions addressing topics ranging from energy efficiency to land conservation.
The Senate committee has approved both bills.
OCS oil and gas The Offshore Production and National Security Act contains separate bill “titles” for the outer continental shelves of Alaska, the Gulf of Mexico and the South Atlantic.
The Alaska title would require a minimum of three lease sales in each of the Beaufort, Chukchi, and Cook Inlet outer continental shelf planning areas during any five-year period, as well as annual lease sales in the areas of the federal waters of the Beaufort Sea and Cook Inlet within three miles of the outer boundary of state waters. There is also a provision for extending the terms of certain Chukchi Sea and Beaufort Sea leases to 20 years.
The bill, if passed, would require, through the year 2026, the federal government to pass 7.5 percent of revenues from oil and gas operations on the Alaska outer continental shelf to the State of Alaska; 7.5 percent of the revenues would go to Alaska coastal boroughs; and 2.5 percent of the revenues would be used to fund the North Slope Science Initiative. A different distribution of funds under the revenue sharing arrangements would apply from 2027 onwards.
The bill would also allow any U.S. domestic crude oil or condensate, other than crude oil stored in the Strategic Petroleum Reserve, to be exported from the United States without the need for an export license.
Modernization act The 357-page Energy Policy Modernization Act contains five titles covering energy efficiency, energy infrastructure, energy supply, government accountability and the re-authorization of land conservation measures.
The energy efficiency title includes provisions relating to utility energy service contracts and for the re-authorization of weatherization and state energy programs.
The infrastructure title is aimed at initiatives such as the modernization of the electricity grid, cybersecurity, maintenance of the Strategic Petroleum Reserve, natural gas export projects and ensuring a qualified, well-trained workforce. Included in this section is a requirement that the Department of Energy must issue a decision on an application to export liquefied natural gas to a non-free trade country within 45-days of a completed review by the Federal Energy Regulatory Commission.
Energy development The energy supply title addresses numerous issues relating to the efficient development of both renewable and traditional energy resources, as well as non-fuel minerals. This title contains changes to existing statutes relating to Department of Energy support for methane hydrate research, including authorization for the Department of the Energy to allocate funding for methane hydrate test drilling in Arctic Alaska.
The accountability title presents reforms designed to advance innovation, protect electric reliability and ensure the proper stewardship of taxpayer money. This title includes a requirement for the Bureau of Land Management to coordinate with state agencies over the rules and processes for oil and gas development on federal lands in the state. Provisions in this title would also repeal parts of the existing U.S. code that are outdated or redundant.
The conservation re-authorization title would permanently re-authorize the Land and Water Conservation Fund in a way that would balance land acquisition with other conservation programs. Legislation within this section would also permanently re-authorize the Historic Preservation Fund. The legislation would also create a new National Park Maintenance and Revitalization Fund, to address a maintenance backlog at some national parks.
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