Cochran Recommends Tailored Interior Dept. Response to Offshore Safety Needs After Drilling Moratorium Overturned

U.S. Senator Thad Cochran (R-Miss.) today recommended that the Interior Department carefully tailor its response to its six-month moratorium on deepwater drilling being overturned by a federal court judge on Tuesday.

Cochran, vice chairman of the Senate Appropriations Committee, addressed the offshore drilling moratorium during a Senate Interior Appropriations Subcommittee hearing to discuss with Interior Secretary Ken Salazar his department's reorganization of the Minerals Management Service (MMS)--the federal agency charged with overseeing and regulating energy production on federal lands and offshore holdings.

On Tuesday, U.S. District Judge Martin Feldman in New Orleans overturned the Obama administration's six-month moratorium on deepwater offshore energy exploration.

"Since it was announced, I have been concerned that the moratorium on offshore energy production was overly broad. It affected natural gas production that hasn't damaged the Gulf of Mexico, and it limited access to energy sources that aren't just important to the economy on the Gulf Coast, but to the energy security of the nation," Cochran said.

"I think the Interior Department's response to the federal decision to overturn the six-month moratorium should be tailored to ensure safe offshore energy production without penalizing already safe offshore operations or putting thousands of energy-related jobs in jeopardy," Cochran said. "Another blanket moratorium would be unfortunate and ill-advised."

Cochran also sought assurances that shallow water energy exploration is moving forward and that proposed new safety regulations for offshore production in depths less than 500 feet would not hinder production in the Gulf of Mexico, particularly for natural gas wells.

In light of the ongoing oil spill in the Gulf of Mexico, the administration has proposed reorganizing MMS by dividing the agency into three separate bureaus focused on offshore energy development, safety and environmental protection enforcement, and revenue connection.

"I am interested to learn how the reshuffling of employees will result in higher quality inspections and a greater level of expertise in dealing with the offshore energy industry," Cochran said.

Cochran has submitted a question to Salazar regarding the MMS Coastal Impact Assistance Program, which distributes offshore royalties to states to mitigate the impact of Outer Continental Shelf oil and gas production. Cochran asked Salazar to explain where this grant program would fall within the reorganization plan.

"I have for years relayed the frustration Mississippi coastal communities have experienced with this particular program. I would like to know whether the Interior Department will use the MMS reorganization to revamp this program to get already-approved grants out the door more efficiently," Cochran said.

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