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States could restrict companies up to 100 miles from coast
By Mary M. Shaffrey JOURNAL WASHINGTON BUREAU

WASHINGTON

For the first time in 25 years, the U.S. House approved legislation yesterday that would allow states to permit drilling for oil and natural gas off their coastlines.

The House did so with newfound support from the congressman who represents much of North Carolina’s Outer Banks.

"Whether we like it or not, because of the energy shortage, this is a reality. I need to support this while the states still have an option," said Rep. Walter Jones, R-3rd, whose district includes all areas of the Outer Banks north of Camp Lejeune.

Jones has previously opposed drilling because of concern about damaging the state’s tourism industry.

Jones said that he had talked to constituents in Dare and Carteret counties and that "they understand (drilling) is going to come one way or the other, and since money is short, we need to do this while we still can."

Under the legislation, states would have the ability to restrict drilling up to 100 miles from their coastlines. But past 100 miles, drilling could occur regardless of a state’s position. States that chose to allow drilling withing 100 miles of their coastlines would get up to 75 percent of the revenue raised from any oil or natural gas discovered.

The Bush administration said yesterday that it supports the intent behind the legislation but did not agree with the profit-sharing arrangement. Under the bill, the administration estimated that the revenue - which normally would go to the federal government because state boundaries end three miles offshore - would cost the federal government "several hundred billion dollars" over the next 60 years.

Experts believe that the Gulf of Mexico has the greatest potential for untapped natural gas and oil. As a result, most of the revenue from the new gas and oil discoveries is expected to be concentrated among four states - Louisiana, Texas, Alabama and Mississippi.

Advocates for the bill said that it is a necessary first step to lower energy costs. (more…)

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