Category Archives: energy policy

E&E: POLITICS: White House plans to patch methane leaks, but uncertainty and opposition exist

Twitter: @evanlehmann | Email: elehmann@eenews.net

Evan Lehmann and Stephanie Paige Ogburn, E&E reporters
Published: Monday, March 31, 2014

The Obama administration’s effort to plug the nation’s methane leaks has rekindled the debate about the role of natural gas in national climate policy, with most environmentalists applauding the effort, while others describe it as an empty promise.

The White House announcement Friday was widely seen as an important step to stop emissions of methane, a strong greenhouse gas, at leaky wellheads, at pipelines and from flares at oil wells. The administration says its unfinished strategy could curb 90 million tons of greenhouse gases by 2020, a significant step toward President Obama’s goal of cutting emissions by 17 percent.

That would be achieved through potential regulations on the oil and gas sector, though U.S. EPA won’t know before this fall whether it will pursue new methane rules. The strategy also calls for plugging up leaks at coal mines, in landfills and on farms, using the gas instead for electricity generation.

“Reducing methane emissions is a powerful way to take action on climate change; and putting methane to use can support local economies with a source of clean energy that generates revenue, spurs investment and jobs, improves safety, and leads to cleaner air,” the 15-page strategy says.

But for some whose exclusive concern is climate change, the administration is trying to fix a problem of its own making. The administration wouldn’t need to fix methane leaks in the natural gas network if it hadn’t endorsed the development of hydraulic fracturing in the first place, said Bill McKibben, founder of 350.org.

“These guys have been encouraging the development of fracking all along, and now they’re trying to — I don’t know what they’re trying to do — make it not quite so bad,” he said. “This was a misguided idea to come up with a whole new source of hydrocarbons just at the moment when science was telling us we needed to get off hydrocarbons.”

He seems to represent a minority view, however, and last week, the president’s counselor, John Podesta, said that a fossil-free future was “impractical.”

“Methane is a potent heat-trapping pollutant, and we’ve long understood the urgency and importance of controlling it as a way to slow dangerous climate change,” David Doniger, director of the Climate and Clean Air Program at the Natural Resources Defense Council, said in a statement. He added that it’s “a big step in the right direction.”

Decision on regs this fall
Methane accounts for 9 percent of the nation’s greenhouse gas emissions, according to U.S. EPA. Much less methane is released annually than carbon dioxide. But the gas, known as CH4, is pound-for-pound about 21 times more efficient at trapping radiation in the atmosphere than CO2, making it a potent contributor to climate change.

The oil and gas industry is the single biggest source of methane, accounting for about 30 percent of emissions, according to EPA’s greenhouse gas inventory. The gas is sometimes flared from oil wells, when pipelines and other equipment used to capture and distribute the gas are absent. Some is also released during the production, storage and distribution of natural gas, of which methane is the key ingredient.

The switch from coal to natural gas is a significant driver behind the nation’s declining greenhouse gas emissions. But the benefit of using more gas, which releases about half the amount of emissions that coal does when burned, could be blunted if methane releases rise as hydraulic fracturing makes gas increasingly accessible for extraction, many environmentalists say.

The White House strategy states that EPA will solicit expert input this spring on significant sources of methane from the oil and gas sector, in white papers. Recently, a number of studies have been released showing that EPA estimates of methane emissions from natural gas activities are 50 percent lower than actual emissions measurements (ClimateWire, Feb. 14).

After the white papers are completed, the agency will decide this fall whether it should develop additional regulations to limit methane from oil and gas under its Clean Air Act authority. This could apply to both public and private lands, said Dan Utech, special assistant to the president for energy and climate change. If EPA pursues regulations, the rules would be completed by the end of 2016, just before Obama leaves office.

In response to the strategy release, industry groups focused on the progress made by voluntary programs and state-level regulations, which are also mentioned in the White House document.

The American Petroleum Institute released a statement saying more regulations would place an “unnecessary burden” on industry, which is voluntarily reducing emissions.

“Additional regulations are not necessary and could have a chilling effect on the American energy renaissance, our economy, and our national security,” API Director of Regulatory and Scientific Affairs Howard Feldman said in a statement.

Rules are the ‘only way’ to limit methane
The American Gas Association, which represents natural gas utilities, said it’s important to look at the most cost-effective way to reduce methane emissions over the entire natural gas production, distribution and use cycle.

Repairing natural gas infrastructure in cities can be an expensive way to plug leaks, but utilities are steadily working to do this, primarily with a focus on public safety, said Kathryn Clay, AGA’s vice president for policy strategy. Gas leaks can cause explosions.
“We look forward to continuing to work with the agencies, and we appreciate that the administration is taking a thoughtful, data-driven approach,” Clay said.

Environmental groups praised the strategy and the administration’s focus on methane, focusing on the potential for two significant rulemakings outlined in the document.

The Environmental Defense Fund, which has taken a leadership role in measuring the amount of methane leaking from the natural gas system, praised the announcement. Still, Eric Pooley, EDF’s senior vice president for strategy and communications, also said regulations were necessary to reduce emissions.

“We would call on EPA to go ahead and regulate methane from the oil and gas sector,” said Pooley.

Mark Brownstein, associate vice president and chief counsel of EDF’s U.S. Climate and Energy Program, said that while some gas companies have begun to address the issue of leaking methane, regulation would ensure that emissions are reduced.

“At the end of the day, the only way to be assured that everyone in industry will play by the same rules and that reductions will take place is when there is some kind of regulatory framework in place,” said Brownstein.

Landrieu breaks from Dems
The idea of regulating the booming gas industry, which is currently supplying U.S. markets with cheap fuel for electricity generation, is unappealing to at least one Democrat in a tight political election. Sen. Mary Landrieu (D-La.), the new chairwoman of the Committee on Energy and Natural Resources, said the strategy could harm her state.

“While I appreciate the administration’s efforts to develop a strategy to reduce methane gas emissions, I wish they put as much effort into developing a strategy to increase our domestic energy production,” Landrieu said in a statement. “I am concerned that the end result of these efforts will not be commonsense reform, but more of the same onerous regulations that hamper domestic production, hurt our farmers and kill jobs.”

One rule discussed in the strategy, informally referred to as Onshore Order 9, would revise the Bureau of Land Management’s policy on flaring and venting of methane from oil and gas extraction on federal land.

That policy has not been updated since 1980, and BLM is currently holding listening sessions in preparation for drafting a rule that would limit the amount of methane that is flared and vented from wells on public lands.

According to the strategy document, the agency will release that draft rule later this year.
“We’re hoping that BLM will issue tight restrictions on venting and flaring and require best management practices to stop leaks. We don’t think that an incentive-based or voluntary program is adequate to address the problem,” said Sarah Uhl, senior project director with the Clean Air Task Force.

More poop than cash
While agriculture is listed as a major source of human-related methane emissions in the United States, the reduction measures for that sector are entirely voluntary.
Those actions are focused around turning animal manure from large concentrated feeding operations into biogas energy.

Brian Murray, the director for economic analysis at Duke University’s Nicholas Institute for Environmental Policy Solutions and an expert on biogas from agriculture, said that biogas systems are very expensive. That has prevented farmers from adopting them.

“The capital expenditures necessary for a farmer to put in a digester are large, in the millions of dollars,” Murray said.

Without incentives to adopt the technology, farmers are unlikely to install such expensive methane digesting equipment on their farms. A voluntary system could work to increase adoption of methane digesters if farmers are given economic incentives through that system, said Murray.

Ultimately, the problem with curbing agricultural methane emissions is that since the sources are dispersed, it is still not very cost-effective to limit their methane emissions, he pointed out.

Twitter: @evanlehmann | Email: elehmann@eenews.net

Houston Chronicle: Grippando: Russian drilling in Cuban waters presents problems for U.S.

http://www.chron.com/opinion/outlook/article/Grippando-Russian-drilling-in-Cuban-waters-5359932.php

By James Grippando | March 29, 2014 | Updated: March 29, 2014 2:41pm

cuba
Photo By Javier Galeano/STF
An exploratory drilling rig sits in the waters off Cuba’s northern coast as fishermen work in Havana Bay, Cuba. An exploratory drilling rig sits in the waters off Cuba’s northern coast as fishermen work in Havana Bay, Cuba.

Recent events in Washington have sparked debate about the future environmental safety of thousands of miles of coastline, from Texas to the Florida Keys. Earlier this month, the U.S. Environmental Protection Agency lifted its ban against BP from offshore drilling in the Gulf of Mexico. Then, in the wake of Russia’s seizure of a natural gas plant in Crimea, the West deliberated sanctions against Russia that could accelerate Russia’s ongoing exploration for natural gas in Cuban waters south of Key West.

Critics argue that BP’s agreement with the EPA comes too soon after the 2010 Deepwater Horizon disaster that killed 11 workers and caused catastrophic environmental damage. Concerns over the agreement may or may not be valid, but a compelling case can be made that the Russian exploration presents the more vexing problem. While BP will resume drilling under strict supervision and detailed conditions, Russian oil companies are drilling offshore in Cuban waters with no U.S. oversight.

Russia and the giant oil companies it controls are key players in offshore exploratory drilling in Cuban waters. An estimated 5.5 billion barrels of oil and another 9.8 trillion cubic feet of natural gas lies beneath a mile or more of ocean in the Cuban basin, midway between Havana and Florida. Last year, the Spanish oil company Repsol drilled just 56 miles from Key West. The project was unsuccessful, but exploration continues.

In January, Bob Graham, a former Florida senator and governor who co-chaired a presidential commission on the Deepwater Horizon spill, reported that Cuba and its state-owned oil company are “aggressively” pursuing plans to drill offshore. Cuba’s primary target is near the maritime border in waters that could be 10,000 to 12,000 feet deep. Experts agree that with the Gulf Stream moving at three to four knots, a Cuban oil spill would affect Florida in just six to 10 days.

What could the U.S. do to avert disaster in the event of a major spill in Cuban waters, particularly one that involves a Russian-controlled drilling operation? BP paid roughly $40 billion in fines and damages for the devastation it caused, and pleaded guilty to criminal charges. Who would hold the Russians and other companies drilling in Cuban waters accountable?

The lack of any diplomatic relations between the U.S. and Cuba, let alone a maritime treaty, means that the U.S. cannot be assured of the safety standards in Cuban drilling operations.

In June 2013, the Moscow Times reported that the Russians’ exploratory drilling was cut short due to safety concerns over the “blowout preventer,” the same crucial piece of equipment that was at the heart of the BP spill. The Russian’s self-restraint, however, had nothing to do with U.S. oversight, and there is no guarantee that the Russians will be as cautious going forward, particularly as relations with the U.S. worsen over the crisis in the Ukraine.

The longstanding U.S. trade embargo against Cuba presents huge obstacles. Under the embargo, the massive semisubmersible rigs used in offshore drilling in Cuban waters can contain no more than 10 percent U.S. parts. The embargo makes it difficult if not impossible to obtain replacement parts from U.S. companies, which only heightens the risk of a mishap. The U.S. response to a spill would be equally hamstrung. According to the Council of Foreign Relations, which sent Graham on his recent trip to Cuba, the U.S. Coast Guard would be barred from deploying highly experienced manpower, specially designed booms, skimming equipment and vessels, and dispersants. U.S. offshore gas and oil companies would also be barred from using well-capping stacks, remotely operated submersibles and other vital technologies.

A catastrophe in Cuban waters would leave little time to work through these issues. According to the U.S. Coast Guard, the most, and possibly only, effective response to a spill in the fast-moving Cuban waters would be surface and subsurface dispersants. If dispersants are not applied close to the source within four days after a spill, uncontained oil cannot be dispersed, burned or skimmed, which would render standard response technologies like containment booms ineffective.

The former president of Amoco Oil Latin America, Jose Piñon, now a research fellow at the University of Texas at Austin and a leading authority on Cuban oil exploration, estimates that Cuba has approximately 5 percent of the resources it needs to respond to a spill on the order of Deepwater Horizon. Indeed, the Washington Post reported that the current disaster response plan is to retrofit and deploy aging crop dusters from Cuban farms to dump dispersants. Current U.S. laws and the current status of U.S./Cuba relations raise serious questions as to whether the U.S. could supply the needed resources in time to avert disaster.

It remains to be seen if BP will be a more responsible corporate citizen as it resumes drilling in the Gulf. That BP will improve its safety measures, however, seems much more likely than Russia, and the Russian oil companies that are behind the Cuban exploration, stepping up to save Florida from disaster.

Grippando, counsel to the law firm of Boies Schiller & Flexner, is a New York Times best-selling author. His 21st novel, “Black Horizon,” was published in March by HarperCollins.

Special thanks to Richard Charter

New York TImes: Environment: Panel’s Warning on Climate Risk: Worst Is Yet to Come


By JUSTIN GILLISMARCH 30, 2014

31climate-master675
Greenland’­s immense ice sheet is melting as a result of climate change. Credit Kadir van Lohuizen for The New York Times

YOKOHAMA, Japan — Climate change is already having sweeping effects on every continent and throughout the world’s oceans, scientists reported Monday, and they warned that the problem is likely to grow substantially worse unless greenhouse emissions are brought under control.

The report by the Intergovernmental Panel on Climate Change, a United Nations group that periodically summarizes climate science, concluded that ice caps are melting, sea ice in the Arctic is collapsing, water supplies are coming under stress, heat waves and heavy rains are intensifying, coral reefs are dying, and fish and many other creatures are migrating toward the poles or in some cases going extinct.

The oceans are rising at a pace that threatens coastal communities and are becoming more acidic as they absorb some of the carbon dioxide given off by cars and power plants, which is killing some creatures or stunting their growth, the report found.
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Organic matter frozen in Arctic soils since before civilization began is now melting, allowing it to decay into greenhouse gases that will cause further warming, the scientists said.
Photo
Rajendra K. Pachauri, center, chairman of the Intergovernmental Panel on Climate Change, speaks during a press conference in Tokyo on Monday. Credit Shizuo Kambayashi/Associated Press

And the worst is yet to come, the scientists said in the second of three reports that are expected to carry considerable weight next year as nations try to agree on a new global climate treaty. In particular, the report emphasized that the world’s food supply is at considerable risk — a threat that could have serious consequences for the poorest nations.

“Nobody on this planet is going to be untouched by the impacts of climate change,” Rajendra K. Pachauri, chairman of the intergovernmental panel, said at a news conference here on Monday.

The report was among the most sobering yet issued by the intergovernmental panel. The group, along with Al Gore, won the Nobel Peace Prize in 2007 for its efforts to clarify the risks of climate change. The report released on Monday in Yokohama is the final work of several hundred authors; details from the drafts of this and of the last report in the series, which will be released next month, leaked in the last few months.
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The report attempts to project how the effects will alter human society in coming decades. While the impact of global warming may actually be outweighed by factors like economic or technological change, the report found, the disruptions are nonetheless likely to be profound.

It cited the risk of death or injury on a widespread scale, probable damage to public health, displacement of people and potential mass migrations.

“Throughout the 21st century, climate-change impacts are projected to slow down economic growth, make poverty reduction more difficult, further erode food security, and prolong existing and create new poverty traps, the latter particularly in urban areas and emerging hotspots of hunger,” the report declared.

The report also cites the possibility of violent conflict over land or other resources, to which climate change might contribute indirectly “by exacerbating well-established drivers of these conflicts such as poverty and economic shocks.”

The scientists emphasized that climate change is not just some problem of the distant future, but is happening now. For instance, in much of the American West, mountain snowpack is declining, threatening water supplies for the region, the scientists reported. And the snow that does fall is melting earlier in the year, which means there is less meltwater to ease the parched summers.
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In Alaska, the collapse of sea ice is allowing huge waves to strike the coast, causing erosion so rapid that it is already forcing entire communities to relocate.

“Now we are at the point where there is so much information, so much evidence, that we can no longer plead ignorance,” said Michel Jarraud, secretary general of the World Meteorological Organization.

The experts did find a bright spot, however. Since the group issued its report in 2007, it has found growing evidence that governments and businesses around the world are starting extensive plans to adapt to climate disruptions, even as some conservatives in the United States and a small number of scientists continue to deny that a problem exists.

“I think that dealing effectively with climate change is just going to be something that great nations do,” said Christopher B. Field, co-chairman of the working group that wrote the report, and an earth scientist at the Carnegie Institution for Science in Stanford, Calif.

Talk of adaptation to global warming was once avoided in some quarters, on the grounds that it would distract from the need to cut emissions. But the past few years have seen a shift in thinking, including research from scientists and economists who argue that both strategies must be pursued at once.
Photo
Tracks were flooded at Grand Central Station in Oct. 2012, after Hurricane Sandy hit New York. Credit Hiroko Masuike/The New York Times

A striking example of the change occurred recently in the state of New York, where the Public Service Commission ordered Consolidated Edison, the electric utility serving New York City and some suburbs, to spend about $1 billion upgrading its system to prevent future damage from flooding and other weather disruptions.

The plan is a reaction to the blackouts caused by Hurricane Sandy. Con Ed will raise flood walls, bury some vital equipment and launch a study of whether emerging climate risks require even more changes. Other utilities in the state face similar requirements, and utility regulators across the United States are discussing whether to follow New York’s lead.

But with a global failure to limit greenhouse gases, the risk is rising that climatic changes in coming decades could overwhelm such efforts to adapt, the panel found. It cited a particular risk that in a hotter climate, farmers will not be able to keep up with the fast-rising demand for food.

“When supply falls below demand, somebody doesn’t have enough food,” said Michael Oppenheimer, a Princeton University climate scientist who helped write the new report. “When some people don’t have food, you get starvation. Yes, I’m worried.”

The poorest people in the world, who have had virtually nothing to do with causing global warming, will be high on the list of victims as climatic disruptions intensify, the report said. It cited a World Bank estimate that poor countries need as much as $100 billion a year to try to offset the effects of climate change; they are now getting, at best, a few billion dollars a year in such aid from rich countries.

The $100 billion figure, though included in the 2,500-page main report, was removed from a 48-page executive summary to be read by the world’s top political leaders. It was among the most significant changes made as the summary underwent final review during a dayslong editing session in Yokohama.

The edit came after several rich countries, including the United States, raised questions about the language, according to several people who were in the room at the time but did not wish to be identified because the negotiations are private.

The language is contentious because poor countries are expected to renew their demand for aid this September in New York at a summit meeting of world leaders, who will attempt to make headway on a new treaty to limit greenhouse gases.
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Many rich countries argue that $100 billion a year is an unrealistic demand; it would essentially require them to double their budgets for foreign aid, at a time of economic distress at home. That argument has fed a rising sense of outrage among the leaders of poor countries, who feel their people are paying the price for decades of profligate Western consumption.

Two decades of international efforts to limit emissions have yielded little result, and it is not clear whether the negotiations in New York this fall will be any different. While greenhouse gas emissions have begun to decline slightly in many wealthy countries, including the United States, those gains are being swamped by emissions from rising economic powers like China and India.

For the world’s poorer countries, food is not the only issue, but it may be the most acute. Several times in recent years, climatic disruptions in major growing regions have helped to throw supply and demand out of balance, contributing to price increases that have reversed decades of gains against global hunger, at least temporarily.

The warning about the food supply in the new report is much sharper in tone than any previously issued by the panel. That reflects a growing body of research about how sensitive many crops are to heat waves and water stress.

David B. Lobell, a Stanford University scientist who has published much of that research and helped write the new report, said in an interview that as yet, too little work was being done to understand the risk, much less counter it with improved crop varieties and farming techniques. “It is a surprisingly small amount of effort for the stakes,” he said.

Timothy Gore, an analyst for Oxfam, the anti-hunger charity that sent observers to the proceedings, praised the new report for painting a clear picture. But he warned that without greater efforts to limit global warming and to adapt to the changes that have become inevitable, “the goal we have in Oxfam of ensuring that every person has enough food to eat could be lost forever.”

Common Dreams: Forget Russian Gas, Just Frack Europe: Obama

http://www.commondreams.org/headline/2014/03/27-2
Published on Thursday, March 27, 2014
Obama calls for combination of European fracking and US exports to serve EU energy needs
– Jacob Chamberlain, staff writer

US president Barack Obama at EU summit

President of the European commission Jose Manuel Barroso, US president Barack Obama and president of the European council Herman van Rompuy at the summit in Brussels. (Photonews/Photonews via Getty Images)Speaking after a meeting with European leaders at the EU-US summit in Brussels on Wednesday, President Barack Obama suggested that the U.S. is open to exporting fracked shale gas, once promised as the source of American “energy independence,” to the EU and urged the EU to open up its own fracking reserves amid energy fears related to the crisis in Ukraine. Environmental groups have warned these policies will do nothing by way of energy security and everything for global environmental destruction and climate chaos.

“Once we have a trade agreement in place,” Obama said at a news conference in Brussels in reference to the Transatlantic Trade and Investment Partnership deal currently in the works, “export licenses for projects for liquefied natural gas destined to Europe would be much easier, something that is obviously relevant in today’s geopolitical environment.”

European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso reportedly pressed Obama during Wednesday’s meeting to ease current restrictions on U.S. gas exports, claiming fears over the future of Russian gas imports, which make up a quarter of EU gas supplies.

While insisting that U.S gas exports could be done sometime in the future, Obama used more candid language to suggest EU leaders should first open up their own shale gas reserves to fracking—amongst other energy options such as increased nuclear power.

“I think it is useful for Europe to look at its own energy assets, as well as how the United States can supply additional energy assets,” Obama said. “Because the truth of the matter is, is that just as there’s no easy, free, simple way to defend ourselves, there’s no perfect, free, ideal, cheap energy sources. Every possible energy source has some inconveniences or downsides. And I think that Europe collectively is going to need to examine, in light of what’s happened, their energy policies to find are there additional ways that they can diversify and accelerate energy independence.”

He added: “The United States as a source of energy is one possibility, and we’ve been blessed by some incredible resources. But we’re also making choices and taking on some of the difficulties and challenges of energy development, and Europe is going to have to go through some of those same conversations as well.”

The comments came, Reuters reports, as “a clear reference to opposition in parts of the EU on environmental grounds to nuclear power and the extraction of shale gas.”

France and Bulgaria currently ban the controversial drilling practice, which has been known to contaminate ground water supplies and pollute the air, while countries such as Britain and Poland have faced protests against ongoing fracking exploration, as Reuters reports.

Since the onset of the Ukraine crisis has sparked conversations regarding EU energy concerns, environmentalists have warned that the fossil fuel industry and fossil fuel friendly leaders are using the crisis to push through energy policies they have wanted all along—particularly having to do with the production and export of unconventional fossil fuels such as Canada’s tar sands and the U.S’s shale gas. As Stewart Trew writes at the Council of Canadian’s blog today:

Now Canada, political voices in the United States, and the European Commission for that matter, are trying to leverage the political crisis in Ukraine to make a case for more (not less) North American imports of the dirty stuff: tar sands from Alberta and fracked gas from North America’s “boom” in unconventional shale production. The first puts pressure on Obama to approve the Keystone XL pipeline, which would bring bitumen from Canada to refineries on the Gulf Coast before shipping the final product to Europe and Asia. (The Energy East pipeline would do the same in Canada.)

The second (fracked gas) would require the U.S. to approve new LNG plants and remove energy export restrictions, which the EU is trying to do through trade and investment negotiations with the United States. David Cameron’s government in the UK is also using the crisis to justify a European shale gas boom that environmental groups and the general public strongly opposes.

“Fossil fuels should not be used as a geopolitical bargaining chip, nor should giant oil and gas corporations write our foreign policy,” Wenonah Hauter, executive director of Food & Water Watch also recently noted. “The hypocrisy of the call for exports is highlighted by the fact that it will take years for our export facilities to be able to process the volumes of gas proposed for overseas sales.”

“There’s been a lot of talk about fast tracking and streamlining” the approval process, Mike Tidwell, Executive Director of the Chesapeake Climate Action Network, recently told Common Dreams in reference to natural gas export plans and a proposed LNG export terminal in Cove Point, Maryland. “People need to understand that what they are talking about is cutting corners on processes put in place to protect people and the environment.”

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WECT: Energy Council rep. calls on N.C. to split future offshore oil money with coastal counties

http://www.wect.com/story/25019542/energy-council-rep-calls-on-nc-to-split-future-offshore-oil-money-with-coastal-counties

Posted: Mar 19, 2014 12:34 PM PDT
Wednesday, March 19, 2014 3:34 PM EST
Updated: Mar 19, 2014 12:44 PM PDTPM EST
By: Justin Smith – email

At the Energy Policy Council meeting Wednesday in Raleigh, Frank Gorham introduced a proposal that state lawmakers commit to share federal offshore oil revenues with the 20 coastal counties

RALEIGH, NC (WECT) – A New Hanover County member of the N.C. Energy Policy Council says he doesn’t think offshore drilling will ever happen in the Atlantic Ocean off the North Carolina coast unless coastal counties share in the profits.

At the Energy Policy Council meeting Wednesday in Raleigh, Frank Gorham introduced a proposal that state lawmakers commit to share federal offshore oil revenues with the 20 coastal counties. Those communities could use the money for beach renourishment, wetlands restoration, or other needs, he explained.

“I’ve traveled the whole coast, and the number one thing I’m hearing is the coastal communities are seeing only a negative to offshore drilling,” Gorham said, who is chair of the N.C. Coastal Resources Commission.

The Energy Council is a 13 member board of appointees that submits energy policy recommendations to the governor and General Assembly.

Gorham, who explained Texas and Louisiana set aside a large portion of their federal oil royalties for coastal communities, wants the N.C. legislature to agree to give half of any offshore revenue to the coastal counties, but drilling off North Carolina’s coast is not imminent. Gorham estimates seismic testing could be allowed within the next year and a half, with the federal leasing for drilling following several years later.

Lt. Gov. Dan Forest, who serves as chair of the N.C. Energy Council, explained conversations have already started in the state regarding revenue sharing for onshore gas. He believes those talks will lead into discussions about offshore revenue.

Forest thinks the Council will be receptive to Gorham’s proposal but said, “the reality of the situation is offshore drilling is really in the hands of the federal government right now. They hold all the cards to that discussion.”

Gorham’s proposal was sent to the Energy Council’s exploration committee for consideration.