Senator Proposes Bill on Lease Extension and Energy Security, Posted by Meosha Eaton

By Williams Ekanem

Senator Kay Hutchison has proposed the Lease Extension and Energy Security Act,(LEASE) Act for a fair and reasonable restoration of the time lost from the Department of the Interior’s moratorium.

The proposed Act also allows domestic energy producers to continue exploration without having to worry about leases expiring.

Addressing congressional reporters on Wednesday on the bill, Senator Hutchison indicated that the LEASE Act extends offshore leases impacted by the U.S. Department of Interior’s drilling moratorium for an additional 12 months.

In this way, she stated, the LEASE Act returns to leases the lease time taken from them during the moratorium, as well as increase domestic energy production and protect American jobs.

According to the Senator, the DOI has the authority to issue a “suspension of operations” which would have put the leases on a “time out”, however the DOI failed to act.

Due to this failure to act, she added, thousands of leaseholders in the Gulf of Mexico are paying rent to the government for access to develop federal lands while losing time on the leases.

Companies are said to invest millions of dollars and spent nearly a decade in the exploration phase before “first oil” is reached. Following a precise and meticulous timeline, Hutchison said, is extremely important as loss time can sabotage entire operation.

Extending the leases provides the leaseholders with certainty to continue making investments on its lease, including investing in the local workforce.