McDonnell pushes Department of Interior to press ahead on offshore drilling

Gov.-elect Bob McDonnell just released a letter he sent to Interior Secretary Ken Salazar, urging Salazar to move forward rapidly on allowing oil and gas exploration off the Virginia coast.

In the letter, McDonnell says he wants Virginia to be "the first state on the Atlantic seaboard to explore and drill beginning in 2011.">

McDonnell cites a 2005 study that says natural gas production off the coast could mean 2,578 news jobs with a combined payroll of $644 million as well as $271 million in new local and state tax revenue over the next 10 years.

In addition, McDonnell writes, there may be enough oil found off the Virginia coast to fuel all 4 million cars in Virginia for more than four years.

"Virginia is eager to get started," McDonnell wrote.

The full text of his letter follows the break:

The Honorable Ken Salazar

Secretary of the Interior

Department of the Interior

1849 C Street, N.W.

Washington DC 20240

 

Dear Secretary Salazar,

 Last month I had the honor of being elected Governor of Virginia commencing January 16, 2010. A key priority for us here in Virginia is the development of the full range of energy resources, both traditional and renewable, to foster energy independence, national security and economic development.

 More than fifteen months have passed since the United States Congress allowed the federal moratorium on exploration and development of oil and natural gas resources off the Atlantic Coast to expire, and President Bush repealed a similar executive order banning such action. This cleared the way for Virginia to be the first state on the Atlantic seaboard to explore and drill beginning in 2011. Virginia is eager to get started.  Nearly a year ago the public comment period for the potential lease sale offshore Virginia (Lease Sale 220) ended. Unfortunately it appears that virtually no progress has been made at the federal level to get this process rolling.

 I am requesting that Virginia remain in the current five-year plan and that the federal administrative process move forward with Lease Sale 220 immediately.  Any effort to remove or delay Virginia’s participation in the lease sale would significantly hamper our efforts to create jobs, eliminate much-needed new revenue, and undermine support for President Obama’s stated commitment to make the United States more energy secure.

 The opportunity to explore and develop oil and natural gas resources off the coast of Virginia, miles out of sight from our beaches in an environmentally sound manner, is timely for both our nation and our Commonwealth. Like every other state, Virginia is struggling with the high unemployment that accompanies the current tough economic environment. Some parts of our state have an unemployment rate as high as 19 percent. Additionally, America needs secure and diverse energy sources that do not leave us dependent on foreign governments adverse to our national interests.

 A 2005 study by a former president at Old Dominion University forecast that offshore natural gas production alone off of the Atlantic coast near Virginia would, over a 10-year period, likely create at least 2,578 new jobs, induce capital investment of $7.84 billion, yield $644 million in direct and indirect payroll, and result in $271 million in state and local taxes.  The study also estimated that there could be up to 500 million barrels of oil in this lease area – enough to fuel all four million cars in Virginia for more than four years.

 These economic projections, combined with tremendous technological advancements that have transformed the offshore oil and natural gas industry and make exploration and development environmentally sound, make it clear that there is no reasonable basis for further delays in beginning the leasing process. The Gulf States have been safely exploring and drilling for oil and natural gas for years, and have done so safely despite hurricanes passing over the platforms in the Gulf.

 Additionally, it is critically important as a matter of equity that the Commonwealth receive the same royalties, rentals, and bonus bid payments as do all the other states which currently allow energy exploration and production off of their coasts.  I implore you to work with Congressional leaders, as I will, for passage of legislation to ensure that Virginia participates in a fair and equitable distribution of future offshore revenues.

 Offshore energy exploration and production will be a priority in my administration. I would like to work with you and the President to make Virginia an international leader in offshore energy exploration and production on the Atlantic coast. It is important for both our Commonwealth and our country. We also intend to aggressively pursue offshore renewable energy sources such as wind farms, and will be asking for your assistance at that appropriate time.

 I ask you today to do everything in your power to ensure Lease Sale 220 stays on schedule, including the prompt completion of an environmental impact statement and the processing of all other administrative steps necessary for holding the lease sale in 2011. I am aware of several major energy companies that are ready to bid for the leasehold rights, generating hundreds of millions of dollars for the state and federal governments. Virginia stands ready to help address America’s energy needs while creating badly needed good-paying jobs for our citizens.

 Mr. Secretary, it is time to develop our offshore energy resources to create new jobs and provide necessary new revenue for schools, roads, public safety and alternative energy research and development in Virginia. I respectfully request that you direct the U.S. Minerals Management Service to expedite its preparatory work in support of the lease sale in 2011. The leasing process should not be further delayed.

 Thank you for your attention to this critical matter.  I am committed to working with you as we move forward with this tremendous opportunity for the Commonwealth of Virginia and the United States of America.

             With warm personal regards, I remain

                                                                                    Sincerely,

 

                                                                                    Robert F. McDonnell

Comments

[truth1]

I read the letter three times and did not see any reference to selling Virginia's resources to the Communist Chinese or other multinational corporation. Ballance is a liberal Democra who agrees with Salazar, another liberal Democrat. Don't be fooled he is a socialist minded individual using scare tactic and seeking election, hoping he can solidify the kook base while stopping exploration.

[J. Tyler Ballance]

... In the exclusive economic zone, the coastal State has ... sovereign rights for the purpose of exploring and exploiting, conserving and managing the natural resources, whether living or non-living, of the waters superjacent to the seabed and of the seabed and its subsoil, and with regard to other activities for the economic exploitation and exploration of the zone, such as the production of energy from the water, currents and winds ... The exclusive economic zone shall not extend beyond 200 nautical miles from the baselines from which the breadth of the territorial sea is measured.

From UN Convention on Law of the Sea.

In addition to the above, the U.S. also claims Territorial Seas that extend twelve miles from the low water line. Neither of these claimed areas of coastal water precludes "innocent passage" by ships of other nations (which does not include harvesting fish).

The rationale for expediting exploration for offshore oil and gas, is to supposedly to ensure U.S. claims to such assets. However, given Mr. McDonnell's expressed interest in selling our Virginia assets to foreign owned (Chinese) interests, the citizens of Virginia should be especially watchful of who is awarded the rights to drill off of Virginia's coast.

At the very least, there must be a provision that all energy derived from our domestic sources must be used within the United States. Such a step would prevent the Communist Chinese from using our coal, oil and gas, etc. to manufacture products in their slave labor camps for sale back to Americans at Wal-Mart. Such a requirement for domestic use of energy would be a sound first step toward rebuilding our strategic manufacturing base.

Watch it! Don't let McDonnell sell off our resources to the Communist Chinese and other foreign owned multinational corporations (Carlysle Group, TransUrban, etc.)