FEINGOLD,
DODD, MENENDEZ INTRODUCE “USE IT OR LOSE IT” BILL TO SPUR
OIL PRODUCTION
Legislation Would Spur Oil Companies to Develop the 66 Million Acres
Already Leased Before New Leases Are Granted
July 10, 2008
Washington, D.C. –
Today, U.S. Senators Russ Feingold (D-WI), Christopher Dodd (D-CT),
and Robert Menendez (D-NJ) introduced legislation sending an important
message to oil companies about the federal land they lease for oil development
– use it or lose it. The legislation, entitled the Responsible
Federal Oil and Gas Lease Act, would spur oil companies to develop the
66 million acres of federal land they currently lease but have not developed
to produce oil. The bill, which is similar to legislation introduced
in the House by Rep. Nick Rahall (D-WV), mandates that oil companies
either produce on or seek to develop their existing federal leases,
or relinquish the leases. The bill ensures that companies take reasonable
steps to produce oil and gas on federal lands and waters within a lease's
term. The Senators are also supporting the Responsible Ownership of
Public Lands Act, introduced by Dodd and cosponsored by Feingold and
Menendez, to place an escalating fee on leases of federal land that
lie unused.
“While energy prices
soar, oil companies are saying there’s nothing they can do,”
Feingold said. “Yet these companies hold the leases to sixty-six
million acres of federal land that they haven’t developed. That
just doesn’t add up.”
“For years, oil companies
have been sitting on millions of acres – doing nothing to develop
them for drilling – while hardworking Americans grapple with skyrocketing
prices at the pump,” Dodd said. “By introducing this legislation
today, Senators Feingold, Menendez, and I are acting to hold these companies
accountable for the unused acreage they already lease and reject the
false argument that opening up new acreage to drilling will solve our
energy problems.”
Senator Menendez said: “For
far too long, our government has held the oil companies’ hands
rather than holding them accountable. In this time of astronomical gas
prices, all George Bush and John McCain can think of is to give another
handout to oil companies that are already sitting on 68 million acres
of unused land. No accountability, no crackdown on oil speculation,
no real commitment to renewable energy or advanced alternative fuels.
American families are getting squeezed, and they deserve a government
that works for them, not for the oil companies.”
While some are calling for
opening up more federal lands for drilling, the oil companies have not
explained why they have not produced on over three-quarters (or 66 out
of the 86 million acres) of federal lands and waters they currently
lease. Federal lands and waters with oil and gas resources that are
already available for leasing contain over 100 billion barrels of oil.
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