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Pallone, Bipartisan Group Block Offshore Drilling Proposal

May 19, 2006

Washington, D.C. --- Late last night the U.S. House of Representatives supported an amendment offered by U.S. Rep. Frank Pallone, Jr. (D-NJ) and a bipartisan group of members from Florida and California to strip a provision in the Fiscal Year (FY) 2007 Interior and Environment Appropriations bill that would allow offshore natural gas drilling as close as three miles off the U.S. coast.

The New Jersey congressman joined U.S. Reps. Adam Putnam (R-FL), Lois Capps (D-CA), Mark Foley (R-FL), Jim Davis (D-FL) and Bill Young (R-FL) in offering the bipartisan amendment that solidifies a longstanding moratorium on natural gas drilling from three to 200 miles off the coast in the outer continental shelf (OCS). The amendment passed by a vote of 217 to 203.

"Congress once again showed its commitment to the 24-year moratorium on natural gas drilling off the New Jersey coast," Pallone said after today's vote. "Last night's vote is a victory for clean water, clean beaches and a thriving tourism economy along the shore. However, it's clear that some of my colleagues intend to explore every legislative vehicle to try to expand drilling in these protected waters. We simply cannot allow these forces to succeed."

Pallone said that allowing offshore drilling could devastate New Jersey's tourism economy, which is heavily dependent on clean ocean water and beaches. Beach tourism supports nearly 500,000 jobs and indirectly generates $16.6 billion in wages and $5.5 billion in state tax revenue. During floor debate, Pallone said that all it takes is one incident from an industrial drilling rig sitting in the ocean to put this entire economic engine at risk.

The New Jersey congressman also said there is simply no such thing as natural-gas only drilling. Both the Minerals Management Service and the American Petroleum Institute concluded that it is impossible for geologists to determine if a drilling company is going to hit gas rather than oil when they begin drilling into the sea floor.

Pallone also refuted comments made by opponents of his amendment who claim that drilling in the OCS would lead to lower natural gas prices. First, the New Jersey congressman said that it would take upwards of seven years to begin producing in these protected areas. Second, he said there is also no major prize of natural gas along the Atlantic OCS. The Atlantic OCS region only contains 28 trillion cubic feet of gas, compared to almost 344 trillion cubic feet that is already open for exploration in the Gulf Coast and in parts of Alaska.