Measure to expand energy development on outer continental shelf, federal lands gains committee approval

The House Natural Resources Committee approved legislation on Wednesday that would modernize mineral resource practices and overhaul permitting processes to promote energy development on the outer continental shelf (OCS) and onshore federal acreage.

The full committee approved the Strengthening the Economy with Critical Untapped Resources (SECURE) American Energy Act, H.R. 4239, after the Subcommittee on Energy and Mineral Resources heard testimony from energy industry stakeholders during a hearing on Tuesday.

“The SECURE American Energy Act provides a multifaceted approach to improving access and management of our nation’s valuable energy sources,” U.S. Rep. Paul Gosar (R-AZ), the chairman of the subcommittee, said during the hearing. “These proposals provide a blueprint for energy dominance on our nation’s lands.”

Opening up the OCS for energy development would generate an estimated $200 billion in revenue for the country and drive the creation of as many as 840,000 jobs.

Consumer Energy Alliance President David Holt testified about the impact the bill would have on small businesses and families across the country, noting that energy is a “key economic driver.”

“Too much of our national discussion appears to try and divide into a forced choice between protecting the environment or meeting our energy needs,” Holt said. “We fundamentally disagree with this argument. Our great nation can, and must, meet our environmental challenges and our energy needs.”

It took an average of 257 days for the Bureau of Land Management to issue applications for permits to drill in 2016, while state agencies issued applications for permits in an average of 30 days.

“Permitting inefficiencies, nontransparent bonding pronouncements and unilateral presidential withdrawals have all created considerable uncertainty for OCS operators,” Eric Smith, the professor of practice and associate director of the Tulane Energy Institute in the A. B. Freeman School of Business, said. “Uncertainty that remains is actively discouraging new development.”

Lynn Helms, the director of the North Dakota Industrial Commission in the Department of Natural Resources, called H.R. 4239 a “rare opportunity” to choose “better government instead of bigger government” during the hearing.

The bipartisan bill was introduced by U.S. Reps. Steve Scalise (R-LA), the House majority whip, Rob Bishop (R-UT), the chairman of the House Natural Resources Committee, Henry Cuellar (D-TX), and Vicente Gonzalez (D-TX).