Transcripts For CSPAN2 Hearing Focuses On Oil And Gas Develo

It is an hour and 50 minutes. Your first look at morning markets and breaking [inaudible conversations] [inaudible conversations] the subcommittee on Energy Resources will come to order. Coming to hear testimony on oil and Gas Development on federal land. I ask unanimous consent the gentleman from arkansas, mr. Westerman relapse of the subcommittee and participate in the hearing. Without objection so ordered. Under Committee Rule for us, and the oral Opening Statement with the ranking minority members in the vice chair. This will allow us to hear from our witnesses sooner and help members keep to their schedules. Therefore i ask unanimous consent all other members Opening Statements he made part of the hearing record and be submitted to a clerk by 5 00 p. M. Today. Without objections ordered. Now, i ask that theyre not dna type of restriction regarding the testimony here today. Its important to respect the department and the rules of the committee of the house and build other members of the public to hear our proceedings. Today the subcommittee will examine access to oil and Gas Development on on short federal lands that are subcommittee holding a hearing in several weeks to discuss offshore oil and Gas Development and we ask for members to reserve all usher questions for the next hearing. Federal mineral states around by all americans and the bureau of Land Management is obligated to respond fully manage these resources. Im sure federal oil and gas account for roughly 20 of american production is integral to our Nations Energy independence and security. However, nonfederal production far outpaces federal production figures due in large part to the overwhelming administrative burdens of the federal Mineral Development process. Not only has the new administration inherited the applications, but incredibly burdensome scheme that discourages investment and development. It is critical we evaluate the obstacles to assess and ensure a fair return to the American People. Many factors influence and operators position to develop hydrocarbons including oil price, geology and transmission infrastructure. While some may point to low Commodity Prices as a reason to withhold production, Market Conditions are no excuse for policies or for the federal government going to uphold the statutory obligations. In fact, many operators avoid federal lands due to an quantifiable risk level of certainty with the leasing of permitting schematic. The current federal oil and gas process are fraught with uncertainty, duplication and delayed, disney land for development can take years and parcels nominated explicitly retracted from the option. Although the mineral leasing act requires the blm to hold the scales to available lands, the requirement has not been enforced for years. Furthermore, once an operator successfully navigated the leasing scam, it may still proceed through the application for a permit to drill for apd review process which could set drilling back over a year. Uncertainty, delayed risk presented throughout the process make operational and Financial Planning nearly impossible and is a detriment to the state of the American People. Despite the complications and inefficiencies of permitting under the Previous Administration promoter confident that the administration will take time to carefully examine and optimize the processes. Secretary zinke, friend and former member of the committee testified before us last week and share the steps hes taking to recommit to upholding its mission. In addition to increasing programming and field office performance. We are grateful for the department of the interior steps in the right direction and look forward to finding a practical solution that optimize the responsible developmental process. With that, i recognize the Ranking Member for his statements. Thank you. Thank you, mr. Chairman. At first i want to compliment you and i want to compliment all the members on both sides of the aisle of this committee as we been doing so well in our last few meetings. Theyve been bipartisan. Theyve been cooperative, constructive and today is a little bit more contentious and i hope that doesnt end. Mr. Chairman, i dont oppose oil and Gas Development of public lands, but i do oppose letting oil and gas industry call the shots on how to manage those lands. And all of the above policy does not mean we dont set priorities and i am concerned about our priorities. Its only taken five months in nearly every move on energy that this administration has made good come right out of the executive boardrooms in the American Petroleum institute or the National Mining association. That may actually be the case given the number of oil gas and coal lobbyist that now occupy high ranking positions at the interior department, Energy Department and the Environmental Protection agency and in the white house. Rules to protect public health, gone. Rules to protect our land, air and water and cut down pollution, gone. Rules to protect fish and wildlife gone. Rules to make sure that companies are paying their fair share, gone. The standard seems to be the Obama Administration and plays and one oil and gas or coal company complain about it. If so, it is gone. And no places it more important to balance multiple uses, Environmental Protections as well as Economic Development on americas public lands. This idea of balance, this idea that some areas should be protected while others can be developed is at least endangered now and soon that could be gone, too. She put the statement of the act and assistant secretary, Americas Free market will help determine where and when Energy Development on public lands is feasible. That means the idea that these lands which belong to all americans should be managed in a way that will ensure that they are here for children and grandchildren. That idea is now gone. Instead, the administration is operating under the idea that the department of interior should become a service station for the oil and gas industry. Which lands would you like least . Where and how fast you want to drill . What regulations do you want to repeal . Are these National Monuments getting in your way . Just let us know. The department of an carrier is apparently here to keep you happy. Secretary zinke paid lipservice to the idea of supporting all forms of energy, to be in favor of the all of the above policy. But if we look at his budget, it increases oil and gas and coal programs by 34 million while renewables separate 1,523,000,000 cut. In fact, the fossil fuel program increasing this to be the only one in the entire in your budget that has been increased. We seen this movie before. Cucina were Energy Policy was literally written a big oil. During the eight years of the Bush Administration, the only measure of success of the bureau of Land Management with how many drilling permit that could issue. What did we get . Interior Department Officials thrown in jail, regulators doing drugs and getting into bed with the people they were supposed to be regulating and the thirst for mineral revenues that put Safety Standards on the back burner and helped to contribute to the deepwater rights and according to the president ial oil spill commission. When it comes to giving cues for public lands, to the oil and gas industry, President Trump has made the Bush Administration look bush lead. The fact is oil and Gas Companies are doing just fine on our public lands and in our oceans. Despite the misleading statistics that they are going to throw around today. Oil statistics really show Oil Production of public lands is up 59 since 2008. Offshore production is at a record high. Companies have more than 7500 approved drilling permits they are not using and 26 million acres of public land to be developed. It shows you i believe it the year 2008 rate through 2015, the federal onshore Oil Production and how its increased every single year up to 2015 and 2016 was slightly below, but above all the other years. So kind of closing, i just want to say my new quest whatever that means, means that never is never nothing is enough. Hunting, fishing, camping, hiking, voting, offered a, all the public lands are now second class. Oil and gas is dominant. Mr. Chairman, we have an opportunity to ensure Energy Policies reflect the multiple uses of publicly and for the benefit of all of our constituents, not just special interest of a few billionaires. I just want to say in closing, i understand your desire sent out two days ago that the title of the hearing would be focused on onshore and i would abide by that. The title of the hearing is really called examining on federal lands and as he nor outer Continental Shelf is defined as submerged lands lang siewert of the coastline and ms. Mcgregor is responsible for say offshore notch or development. Just letting you know. I thank the gentleman for the clarification. Im going to get now to introducing our witnesses. The first one is a familiar face, Katherine Macgregor acting assistant director at the u. S. Department of the interior. I wouldve time to the gentleman from new mexico to introduce the next witness. Thank you, mr. Chairman. Are they to introduce ryan flynn, executive director of the new mexico Gas Association and he has watched the permitting on our wells increase for around 200 days, mandate to get permit to something over 400. He was formally the secretary and strong reputation for balancing Energy Developments in environmental stewardship. I yield back. I thank the gentleman. Our next witness is mark scacchi, professor of law at colorado boulder law school. Dr. Laura nelson covers the office of energy and development. We remind the witnesses under Committee Rules they must limit oral statements of five minutes. Their entire statement will appear in the record. Microphones are not automatic so youll have to push the button through the first four minutes is great and then will turn yellow and when you see red, please summarize. I let the entire panel testify before we ask questions and now will recognize mr. Gregor for testimony. Welcome back. Thank you, bishop, members of the subcommittee, very good to be back here today. I loved working here with both majority and minority staff. Many of. Many with Kate Mcgregor currently serving as acting assistant secretary at the department of the interior where responsibility is the management of four bureaus in the reclamation and enforcement of Ocean Energy Management, Bureau Safety enforcement in bureau of Land Management. I appreciate the opportunity to testify in the program which plays a Critical Role in our Nations Energy economy. The image economy. Manage in june of 45 million acres in 7 million subsurface acres, most of which are located in western states including alaska. Production on lands accounts for 7 of her nations onshore oil. 10 of natural gas and 31 of coal produced domestically as well as 18,000 megawatts of Renewable Energy. The program generated over 1,256,000,000,000 in royalties and bonus bids, all of which were shared with state. To use the funds were other important municipal needs. Public lands are integral to America First Energy Agenda to maintain u. S. Energy dominance by growing Domestic Energy production in creating and sustaining jobs throughout a country. Access to responsible Energy Development begins at the planning and leasing process. 10 years ago they had nearly 45 million acres appeared to be a 27 million acres. Nearly identical to the total area doesnt needed as critical Environmental Concerns also known as acc which stand at over 24 million acres. Nearly 10 of all managed lands in the United States. They designated a. 2 million acres. The most since 1980. This is one example of designations that limit how public lands may be used. The Energy Production need not be mutually exclusive. That is why its vitally important to restore multiple use mission and strike the appropriate balance of us job creation in rural america. This is about restoring balance. Undersecretary thank yous leadership in the department and the alum have been proactive and responsible Energy Production on public lands including secretarial orders to remove duplicate of burdens while promoting for hardworking families. Order 3352 will jumpstart production in the Petroleum Reserve alaska helping to unleash the Energy Potential and increase the transalaska pipeline. Efforts have shown to be effective undersecretary thank yous leadership with more acreage and generating more revenue in the First Six Months in the same time last year. We are only just getting started. Bom plans 14 additional resales here. Promoting access to publicly and does not come without challenges. Im sure all members of the committee are in close contact with state and local leaders who do not hesitate to communicate frustrations. The secretarys goal to restore trust to their state and local partners, many who rely upon a to b. In revenues that come from oil and Gas Production on public lands. For example, the Census Bureau has found rural new mexico is one of the highest poverty rates in the country. World mexico is home to the most promising gas deposits in the entire world. Resources are a tremendous source of jobs, Economic Growth in revenue for communities. This is why the Administration Remains committed to promoting responsible oil and Gas Production that creates jobs from a robust economy contributes to security. A multitude of factors in the department are reviewing all of these and taking action or possible to encourage Development Opportunities and improve efficiencies without cutting corners to ensure activities are done in a smart and environmentally responsible way. Thank you for the opportunity to testify today ill be happy to answer any questions. I now recognize mr. Flynn for his five minutes. Thank you from a german, chairman bishop, members of the subcommittee on staff. Training is ryan flynn executive director for the oil and Gas Association. Prior to taking over as the secretary trustee in the state of new mexico. I worked in State Government for approximately six years. Almost six years prior to taking this role. I wanted to thank representative pearce who just had to step out of the room, but its been a tremendous leader on his district to one of the most resilient and productive oil and gas in the world, the great basin. A lot of talk about mexicos oil and gas industry and some challenges to oil and Gas Development on federal land in new mexico and suggest opportunities for improving new mexico. I want to be clear my goal here today is not in any way, shape or form to criticize bln individually. Weve had a chum and its working relationship with blm staff and leadership and look forward to continuing to work in relationship moving forward. Like any large agency come under several opportunities for improved opportunities for improved a. I. Believes secretary zinke has inherited a difficult situation, but is more than capable enough to the task for turning things around in a positive direction. Mexicos oil and gas industry is the most important economic industry to a state of new mexico. Last year 2016 in mexicos oil and gas industry insured 1. 6 trillion to her budget. That equals roughly 2500 of the budget last year but fixed . 2 billion. Oil and gas simply contributes either directly to the states general fund. This money goes directly to road, hospitals, schools were the infrastructure would simply not be possible without the oil and gas. They employ 100,000 people, about 120 million people. New mexico has one of the highest poverty rates in the country w