HLS 10RS-5057 ORIGINAL Page 1 of 4 Regular Session, 2010 HOUSE CONCURRENT RESOLUTI ON NO. 214 BY REPRESENTATIVE DOVE AND SENATOR CHABERT FEDERAL MANDATES: Urges and requests Secretary of the Interior, Ken Salazar, to reconsider the directive that he issued which instituted six-month moratorium on oil and gas exploration in the Gulf of Mexico and to possibly alter that directive to minimize the negative economic impact of such directive on the already damaged economies of the state of Louisiana and the other oil and gas producing states along the Gulf of Mexico. A CONCURRENT RESOLUTI ON1 To urge and request Secretary of the Interior, Ken Salazar, to reconsider the directive that2 he issued which instituted six-month moratorium on oil and gas exploration in the3 Gulf of Mexico and to possibly alter that directive to minimize the negative4 economic impact of such directive on the already damaged economies of the state5 of Louisiana and the other oil and gas producing states along the Gulf of Mexico.6 WHEREAS, as a result of the explosion of the Deepwater Horizon oil platform on7 April 20, 2010, the sinking of the platform three days later, and the ensuing disastrous8 environmental impacts, the Secretary of the U.S. Department of Interior, Ken Salazar, has9 issued a moratorium on deepwater exploration in the Gulf of Mexico; and10 WHEREAS, Secretary Salazar states that "The six month moratorium on deepwater11 drilling will provide time to implement new safety requirements and to allow the Presidential12 Commission to complete its work." and he states that the moratorium does not apply to13 deepwater production, although deepwater production will continue subject to close14 oversight and safety requirements; and15 WHEREAS, although activities necessary to support deepwater production may16 continue, the Secretary's directive requires such activities must obtain approval from the17 Department of Interior in order to continue; and18 WHEREAS, safety is of paramount importance in the oil and gas industry, an19 industry that has an excellent long term record for safety, therefore, the impetus behind the20 Secretary's directive is valid and laudable; and21 HLS 10RS-5057 ORIGINAL HCR NO. 214 Page 2 of 4 WHEREAS, the Secretary's directive directs oil and gas lessees and operators to1 cease drilling new deepwater wells, including wellbore and bypass activities, prohibits the2 spudding of any new deepwater wells, and provides that the Minerals Management Service3 will not consider drilling permits for deepwater wells or related activities; and4 WHEREAS, the directive also requires that operators who are currently drilling any5 oil or gas well covered by the Moratorium Notice to Lessees ". . . proceed at the next safe6 opportunity to secure the well and take all necessary steps to cease operations and7 temporarily abandon or close the well until they receive further guidance from the Regional8 Supervisor of Field Operations"; and9 WHEREAS, the directive will essentially stop for at least six months all oil and gas10 exploration activity in the Gulf of Mexico in five hundred feet of water or more, and will11 probably cease such activity for longer than six months since it will take more time for the12 Mineral Management Service to again begin to review applications for drilling permits, and13 the directive will cease all activity on at least thirty-three exploration wells in the deepwater14 of the Gulf of Mexico, wells that currently employ thousands of Louisiana citizens and15 citizens from along the Gulf Coast; and16 WHEREAS, deepwater exploration and production of oil and gas in the Gulf17 of Mexico is a multi-billion dollar per year industry supporting associated businesses in18 Louisiana and all over the United States, an industry that is growing into the deepwater of19 the Gulf of Mexico to pursue the domestic oil and gas reserves that our country so20 desperately wants and needs to develop so that we are not dependent on foreign oil and gas21 production; and22 WHEREAS, although the bulk of the oil and gas industry was not at fault nor23 involved with the Deepwater Horizon tragedy, the moratorium will have a direct and24 devastating effect on those oil and gas companies, and exploration companies, and their25 contractors who are being penalized after having drilled thousand of wells and operated26 safely for years in the Gulf of Mexico; and 27 WHEREAS, it is the fear of the Louisiana Legislature that the Secretary's directive28 will have a devastating effect on the economy of the state of Louisiana and of the states that29 allow and support deepwater oil or gas drilling in the Gulf of Mexico and will have a30 HLS 10RS-5057 ORIGINAL HCR NO. 214 Page 3 of 4 negative effect on businesses all over the United States that do business with the oil and gas1 industry or are frequented by the employees of the oil and gas industry in the Gulf of2 Mexico; and3 WHEREAS, a six-month closure of deepwater oil and gas exploration in the Gulf of4 Mexico likely will cause an economic disaster on top of the economic and environmental5 disaster already visited on the state of Louisiana and other oil and gas producing states along6 the Gulf of Mexico by the explosion of BP's Deepwater Horizon drilling platform.7 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby8 urge and request Secretary of the Interior, Ken Salazar, to reconsider his directive that9 established a six-month moratorium on oil and gas exploration in the Gulf of Mexico and10 alter the directive in a manner to lessen the economic impact on the state of Louisiana and11 the rest of the states along the Gulf of Mexico who are most affected by the developing and12 increasing disaster not only to our fragile wetlands and shorelines but also to our economic13 health and stability by reducing the time of the moratorium to no more than thirty days while14 not sacrificing safety and environmental concerns through implementation of additional15 safety measures as outlined below.16 BE IT FURTHER RESOLVED that it is within the Secretary's power to alter the17 moratorium on drilling in the deepwater of the Gulf of Mexico so that the economic hardship18 created for the state of Louisiana and the other oil and gas producing states along the Gulf19 of Mexico is lessened, with the Secretary able to consider alternatives as those set forth in20 the Department of Interior report entitled "Increased Safety Measures for Energy21 Development on the Outer Continental Shelf of May 27, 2010", several of which can be22 implemented immediately including Minerals Management Service verification of the safety23 of the following:24 (a)certify blowout prevention stacks25 (b)verify blowout prevention equipment compatibility26 (c)develop new inspection procedures and reporting requirements27 (d)establish new fluid displacement procedures28 (e)verify compliance with existing regulations and National Safety Alert29 requirements; and30 HLS 10RS-5057 ORIGINAL HCR NO. 214 Page 4 of 4 BE IT FURTHER RESOLVED that the Secretary could also consider allowing any1 already permitted drilling activity to continue to completion of the well; and2 BE IT FURTHER RESOLVED that the other measures set forth in the Department3 of Interior "Increased Safety Measures for Energy Development on the Outer Continental4 Shelf of May 27, 2010" could be implemented such as those requiring emergency rule5 making, as well as recommendations developed by the National Commission on the BP6 Deepwater Horizon Spill and Offshore Drilling investigation which could be implemented7 concurrent with the continued operations of offshore deepwater drilling without damaging8 the economies of the very states and communities that are bearing the brunt of the economic9 and environmental damage from the disaster; and10 BE IT FURTHER RESOLVED that the Minerals Management Service inspectors11 could be required to maintain a twenty-four hour per day, seven day a week presence on all12 ongoing deep water drilling locations, with a seven to ten day rotation schedule and the13 Secretary could require strict compliance with American Petroleum Institute standards on14 all equipment used in well construction and operation.15 BE IT FURTHER RESOLVED that a copy of this Resolution be forwarded to the16 Secretary of the U.S. Department of Interior, Ken Salazar, and to each member of the17 Louisiana Congressional Delegation.18 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Dove HCR No. 214 Urges and requests Secretary of the Interior, Ken Salazar, to reconsider the directive that he issued which instituted six-month moratorium on oil and gas exploration in the Gulf of Mexico and to possibly alter that directive to minimize the negative economic impact of such directive on the already damaged economies of the state of Louisiana and the other oil and gas producing states along the Gulf of Mexico.