Bill to Allow Off-Shore Drilling Advances in House

by Michael Peltier
The News Service of Florida

A controversial measure that could allow oil drilling off Florida’s coast passed a House Council on Tuesday over the objections of environmentalists who called the newly filed proposal rash and poorly defined.

Following a polished presentation by oil drilling advocates and an impromptu environmental rebuttal, the House Policy Council voted to lift a legislative ban on drilling in state waters and allow the governor and Cabinet to approve leases as close as three miles off Florida shores. The measure (SB 1219) now heads to the floor. The Senate companion (SB 2294) has yet to have a committee hearing.

{sidebar id=1}Saying the state could reap at least $31 billion in tax revenue over the next 20 years if oil production were developed, backers say public sentiment has changed over the past few years and now is the time for the state to lift its long-term ban.

On that note, backers released a Mason-Dixon Polling and Research survey showing 59 percent of respondents support drilling off Florida’s coast.

“We’re giving the governor and Cabinet that chance to have that dialog with no obligation whatsoever,” Cannon told members. “But we are taking away the shackles that currently prohibit Florida from not only pursuing energy independence but economic develop and security and environmental protection.”

The measure came as a surprise to critics. Tuesday’s agenda was not released until late Monday night and the amendment containing the drilling proposal was not available until just before Tuesday’s meeting. Backers of the idea, though, were prepared with talking points and background material related to the amendment that opponents hadn’t had a chance to see in advance.

Environmental groups assailed the measure, saying it comes during the waning days of the legislative session and is an issue much too important to rush. Several opponents said they had no knowledge of the amendment’s contents nor the poll data released at Tuesday’s hearing.

“Oil drilling is a complicated issue,” said Janet Bowman, “It deserves a full hearing and an opportunity to debate that we are not going to have during these waning days of session.”

Florida law now restricts oil exploration and drilling in state waters, which extend about 10 miles into the Gulf of Mexico. Since approved, however, the price of gasoline climbed to over $4 a gallon at one point and many federal and state officials say its time for lawmakers to take another look.

The proposal would lift the moratorium on drilling in Florida waters and instead allow the governor and Cabinet to make the call. Companies wishing to lease would have to put up a $1 million non-refundable deposit to seek state approval. Once a lease is let, competing companies could review it and offer competing proposals.

Proceeds from the leases would fund the Florida Forever land buying program up to $300 million a year, which is its current funding level. The earmarks also include $20 million for local beach restoration and $20 million for local governments in areas affected by the leases.

{sidebar id=1}“Our reliance on fossil fuel will continue for at least the next generation,” said Barney Bishop, president and CEO of Associated Industries of Florida. “It’s time for Florida to become a national leader in energy independence… and reap the benefits of billions of new revenue dollars.”

Critics argued the bill lacked specificity in regard to royalties, severance tax and other payment to the state. Given the dollars involved, those details should be answered.

“There are many details that need to be fully vetted and discussed,” Bowman said.

“Lifting the prohibition does not mean that issuing permits to drill will actually happen,” said Martha Barnett, a lobbyist for Florida Energy Associates, a coalition of independent oil companies that wants the moratorium lifted. “It opens up the opportunity for that.”

The proposal brought an immediate, electronic response from U.S. Sen. Bill Nelson who posted his angst on his Twitter feed.

“I can’t believe some Florida lawmakers might actually be serious about allowing oil drilling within ten miles offshore.” Nelson wrote. “They even want to ‘expedite’ permits for refineries in coastal communities.”

This article originally published on April 22, 2009.

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