Jeff Bingaman United States Senator from New Mexico

WASHINGTON – U.S. Senator Jeff Bingaman said he is pleased that the Senate Energy and Natural Committee has unanimously approved his legislation to reform drilling in the Outer Continental Shelf.

"This bipartisan bill reforms the way we govern offshore energy exploration and production.  From clear and tough ethics requirements, to better research and analysis of the natural resources on the Outer Continental Shelf, to an improved and adequately funded system for inspecting offshore rigs, this bill makes a good start on reforms that will help Americans regain confidence in our ability to manage offshore energy in a responsible and forward-looking way."

The Outer Continental Shelf Management Reform Act of 2010 (S. 3516), which is cosponsored by Senators Lisa Murkowski (R-AK), Byron Dorgan (D-ND), and Debbie Stabenow (D-MI), requires the Department of Interior (DOI) to reform its structure to prevent conflicts of interests between its revenue-raising missions and its planning, permitting and regulatory missions.  It makes clear that the agency should manage the Outer Continental Shelf in a balanced way to reflect the importance of all of its resources – fisheries, marine life, clean water and coastline protection – as well as energy production.  The measure also requires use of the best available well technology, and helps to develop new and better drilling technology by setting up a new research program within the DOI.

S. 3516 also increases safety and environmental requirements for leasing plans and for drilling wells.  And it imposes an inspection fee on industry participants to fully fund enough well-trained inspectors to perform inspections more often.  It also increases the sanctions on bad operators, including higher civil and criminal penalties for those who violate the law and limitations on new leases for those who have violated the law.  It also establishes new ethics requirements for agency employees to prevent conflicts of interest in their dealings with the industry they regulate.

Finally, the bill takes steps to ensure that the taxpayers will get a fair return for development of energy.  The Secretary of Interior will be required to regularly review the amounts of royalties and other charges applicable to those developing the Outer Continental Shelf.

The bill is now ready for consideration by the full Senate.