Feb 26, 2009

Congressman Ted Poe (TX-02 filed the Developing Resources Immediately and Long-Term through Leases on Our Nation's Offshore Waters Act of 2009 (DRILL NOW Act of 2009) this week to allow individual states the option of drilling off their shores while sharing in the revenues generated by the expanded exploration.

"This is a 'win-win' bill that allows for further exploration while rewarding states that want to control their own energy supply and continue respecting the environment," said Poe. "The DRILL NOW Act allows states to decide on drilling off their shores and share in the millions of dollars that are paid to the federal government for these leases."

"Make no mistake, drilling offshore will reduce our dependence on foreign sources of energy and can be done with zero impact to the environment. Doing so will provide billions in revenue to the federal government for clean and alternative energy research and provide billions in revenue to many cash-strapped state governments," continued Poe. "I have been to the outermost platform in the Gulf of Mexico, the infrastructure is there, built and operated by the best-of-the-best in the energy industry, and Americans can see results in less than two years."

DRILL NOW Act of 2009:

• Ends any authority a president can use to issue future moratoriums; except as the President determines necessary for military operations or national security purposes.
• Allows states, who pass a law allowing drilling off their coasts, to receive 40 percent of the royalty revenue collected by the federal government on leases up to 50 miles off their coasts.
• This royalty revenue can be used for any purpose they choose; such as education, transportation projects, healthcare, etc.
• Allows 30 percent of the royalty revenue on these leases to be deposited in a clean and alternative energy fund which can be used to expand future energy sources nationwide, in addition to petroleum and natural gas, such as biomass, geothermal, hydrogen, fuel cells, solar, wind, and hydropower.
• Allows payments of revenues to states with current leases within 50 miles off their coasts, who pass state laws providing for drilling, to be compensated at the same 40 percent rate.

According to the Minerals Management Service, the most promising areas for new supplies of oil (86 billion barrels) and gas (420 trillion cubic feet) continue to be offshore.