COCHRAN, WICKER PRESS INTERIOR SEC. SALAZAR TO RESUME & EXPEDITE SHALLOW WATER DRILLING PERMITS

Bipartisan Group of Senators Issue Letter to Salazar, Introduce Resolution

July 22, 2010

WASHINGTON, D. C. – U.S. Senators Thad Cochran and Roger Wicker (R-Miss.) are among a bipartisan group of Senators who today sought to increase pressure on the Department of the Interior to take positive actions to allow shallow water energy development in the Gulf of Mexico.

The Mississippi lawmakers were among those Senators who signed a letter to Interior Secretary Ken Salazar asking that the Interior Department provide the shallow water industry with information on how to adhere to new safety regulations issued after the Obama administration lifted a moratorium on shallow water drilling. 

In conjunction with the letter, Cochran and Wicker also cosponsored a Senate resolution that outlines the impact on jobs and economic activity due to ongoing delays for shallow water operations and that encourages the Interior Department to resume and expedite consideration of shallow water drilling applications.

“It is time for words to be backed up with positive actions.  New regulatory hurdles on offshore energy production serve to contradict claims that the moratorium on shallow water operations has been lifted.  I hope the administration understands our concerns that a de facto moratorium is just as harmful to Gulf Coast jobs as an outright ban,” Cochran said.

“The administration’s ban on deepwater drilling and its delays on shallow water permits further intensify the economic struggles felt by so many in the Gulf,” said Wicker. “Although shallow water was excluded in Secretary Salazar’s drilling suspension, the department bureaucrats clearly are dragging their feet on processing safe shallow water leases, creating a de facto moratorium. The livelihoods of Gulf Coast residents have been hit hard enough by this tragic oil spill, and they should not have to suffer another blow by the actions of this administration.”

Although the administration lifted a moratorium on shallow water production, new Interior Department safety and environmental requirements have not been outlined clearly to the shallow water operators, thus causing delays in the approval of new lease permits.  Only one new shallow water permit has been approved since May 28, 2010.

The Senate resolution points out that as a result of Interior Department actions, 35 percent of available shallow water drilling rigs in the Gulf of Mexico are offline and awaiting application approval. It also states that if shallow water permits continue to be held up, nearly 75 percent of the shallow water fleet will be without work by the end of the summer. Additionally, over 25,000 jobs are at risk in the Outer Continental Shelf if the Interior Secretary does not take action to approve more applications.

The resolution and letter were authored by Senators Kay Bailey Hutchison (R-Texas) and Mary Landrieu (D-La.).  In addition to Cochran and Wicker, both were signed by Senators David Vitter (R-La.), John Cornyn (R-Texas), Jeff Sessions (R-Ala.), Richard Shelby (R-Ala.), Lisa Murkowski (R-Alaska) and Mark Begich (D-Alaska).

Access the text of the letter to Interior Secretary Salazar here and the Senate Resolution here.

###