U.S. Senators Jim Webb and Mark Warner, Democrats, have joined with Gov. Bob McDonnell in calling for the lease sales in the Outer Continental Shelf to go forward.
In a letter to Secretary of Interior Ken Salazar, the senators write:
“If accomplished with a fair and equitable formula for sharing of revenues between the federal and state government, Lease Sale 220 will attract well-paying jobs to the commonwealth to support a range of projects.”
– and –
“We would urge you to promptly commence these steps in order to ensure that the Virginia lease sale is conducted in a manner that is timely and consistent with the interests of the environment and our national security.”
According to another AP story,
“A spokeswoman for the federal agency overseeing offshore drilling says no decision has been made to delay the 2011 sale of oil and gas leases off Virginia’s coast.
“Eileen Angelico of Mines Minerals Services said Wednesday the agency is reviewing whether to conduct the lease sale.”
Which is odd because on Monday, MMS said that the sales would be pushed-off until 2012. According to Reuters:
The department’s Minerals Management Service, which oversees offshore drilling, said the original Virginia leasing plan will be delayed. The department may still decide against any energy exploration in the area.
Lars Herbst, MMS regional director for the Gulf of Mexico, announced the delay last week at an offshore industry workshop held in Texas. The event was closed to the press.
Herbst said the MMS staff was still reviewing whether to hold the Virginia lease sale. Even if it is given the go-ahead, the earliest the area would be leased is in 2012, before the current five-year drilling plan ends on June 30 of that year, he said.
Mixed messages from the administration or is MMS backpedaling from what they said on Monday?
Currently, Senator Frank Wagner and Delegate Chris Stolle of Virginia Beach are carrying legislation (SB601 and HB756) for McDonnell which will require that 80 percent of any revenues and royalties paid to the Commonwealth as a result of offshore natural gas and oil drilling be deposited to the Transportation Trust Fund and the remaining 20 percent will be invested in renewable energy research and development.
The American Petroleum Institute writes:
If energy companies are allowed to develop this offshore energy, they could create about 2,600 jobs, make about $8 billion in capital investments and generate $271 million in Virginia state and local taxes, providing a huge boost to the Commonwealth’s economy.
