Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 109 CONGRESS, SECOND SESSION
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E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 109 CONGRESS, SECOND SESSION Vol. 152 WASHINGTON, THURSDAY, MAY 18, 2006 No. 62—Part II House of Representatives DEPARTMENT OF THE INTERIOR, Pass this amendment. amendment. This amendment does ab- ENVIRONMENT, AND RELATED Mr. TAYLOR or North Carolina. I solutely nothing to any existing con- AGENCIES APPROPRIATIONS yield 3 minutes to the gentleman from tract. The oil companies signed a deal ACT, 2007—Continued California (Mr. DOOLITTLE). at $25 a barrel, royalty relief complete. Mr. DOOLITTLE. Mr. Chairman, I It goes to $50 a barrel, they still don’t b 1700 don’t know why the Clinton/Gore ad- have to pay royalties; $75 a barrel, they Mr. MORAN of Virginia. Mr. Chair- ministration negotiated these leases. still don’t have to pay royalties; $100 a man, this amendment is legal, it is They do some rather extraordinary barrel, still no royalties. And we are simple, and it is fair. All we are asking things that there would be no built-in not going to take that contract away. is to preserve existing contracts but provision when the price of oil reached All we are saying is that if you are that those firms that fail to renego- a certain amount that you wouldn’t going to play Uncle Sam as Uncle tiate fairly would then not be granted start to pay royalties. Sucker, then we are not going to allow new oil or gas leases. I have read that substantial amounts you to have any new contracts, because Not to accept this amendment is to of money were raised by the Clinton the American consumer is being shak- take sides, is to choose to stand by an administration and the Gore candidacy en upside down and having money industry that has posted the highest from the major oil companies. Maybe shaken out of their pockets. Sub- profits of any industry in modern his- that had something to do with it. I sidizing the oil industry at $70 a barrel tory by charging consumers about $50 don’t know. to drill for oil is like subsidizing fish to every time they fill up their gas tank. All I know is it is wrong and to me it swim. You don’t have to do it. Those profits are coming from our con- seems inherently unfair, and to violate President Bush said on April 19, I will stituents. And not to support this due process and equal protection of the tell you with $55 a barrel oil we don’t amendment is to decide we are going to law, to take people who have current need incentives to oil and gas compa- side against our constituents. We are leases that are legal and say to them, nies to explore, Bush said in a speech going to give up as much as $80 billion, we are not going to allow you to bid on to newspaper editors. There are plenty $80 billion over the next 25 years. That some leases over here unless you of incentives. is money that should be our constitu- change the leases you presently have. But here is the GOP, not the Grand ents’ because it is their Federally That is coercion. That is almost extor- Old Party, but Gas and Oil Party. That owned land that the oil companies are tion. And it is not the right of the gov- is what they have turned into. drilling on. ernment to behave in such a fashion. And by the way, last night they cut We have a responsibility to represent And I have heard asserted here that public health programs by $16 billion. the American people before we rep- private companies can do that, and I They cut veterans programs by $8 bil- resent a very wealthy and profitable would question that. But the govern- lion. And where could the money have industry. And to decide that we are ment is bound by the provisions of the come from? Well, another $10 billion going to figure out a way to let them United States Constitution not to im- from royalties. If Kerr McGee wins continue with these contracts that pair contracts, not to deny equal proc- their case, another $60 billion. never should have been signed this way ess of the law, and to guarantee due If you kicked the Republican budget in the first place, that gives up $80 bil- process. in the heart, you would break your toe. lion of American taxpayers money, is Therefore, I would urge defeat of this Keep the money, they say, in the hands wrong. It is wrong. amendment. of the oil companies. Let them rake off It is wrong that our consumers are Mr. HINCHEY. Mr. Chairman, I just all this money from the taxpayer. Cut paying so much when these oil compa- want to mention that we have an ad- the programs in public health, in edu- nies are making tens of billions of dol- ministration now in the White House cation, and for veterans, even as their lars more than they have ever made. that is replete with oil contacts; and own president is saying they don’t need Here is an opportunity, legal, fair and the transition team that set up the en- these royalties. simple, to represent the interests of ergy policy of this administration was So, ladies and gentlemen, we say our constituents, the American tax- made up entirely, except for one per- keep those contracts, but you are not payer. son, of people from the oil companies. getting any new contracts with our To turn down this amendment is to That is what needs to be dealt with. government if you are going to keep choose one of the major political con- I yield 2 minutes to the gentleman these windfall profits. That is why you tributors in this corrupt political sys- from Massachusetts (Mr. MARKEY). should vote for the Hinchey-Markey tem instead the interest of our con- Mr. MARKEY. Mr. Chairman, I rise amendment to send a message to the stituents. in support of the Hinchey-Markey oil companies in our country. b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. H2835 . VerDate Aug 31 2005 07:03 Nov 16, 2006 Jkt 059060 PO 00000 Frm 00001 Fmt 4634 Sfmt 0634 E:\RECORDCX\T37X$J0E\H18MY6.PT2 H18MY6 CCOLEMAN on PROD1PC71 with CONG-REC-ONLINE H2836 CONGRESSIONAL RECORD — HOUSE May 18, 2006 Mr. TAYLOR of North Carolina. I Let’s look at the prices. This is noth- This amendment is a fair and fiscally yield 2 minutes to the gentleman from ing more now with royalty relief than responsible way to fix a huge problem New Mexico (Mr. PEARCE). a giveaway to those who least need it. in our country. Mr. PEARCE. Mr. Chairman, we have One Shell official, New York Times Because of mistakes made in lease heard a lot of talk here. I have heard said the other day, under the current agreements in the 1990s and other sub- about a corrupt political system. environment we don’t need royalty re- sidies contained in last year’s Energy I would point out that I went to Rus- lief. They sure don’t. ExxonMobil, $36 Policy Act, we currently are allowing sia, the Soviet Union, in about 1991. billion last year. Record, historic. energy companies, who already are They are awash in petroleum. They are Shell, $22.9 billion. reaping huge profits, to take oil and awash in enough petroleum to change It is about the people in our commu- gas from our public lands and waters the price of the world price of petro- nities, the people that we represent without paying any return to the tax- leum significantly. But they have a that are taking their savings and they payer. corrupt political system, and they are putting it in their fuel tanks. The situation as it currently stands can’t even produce. These folks are taking their money. will result in the loss of many billions To claim that the American oil com- They are dealing with their stock op- of dollars in revenue. panies are somehow gaming the system tions. They are paying down their debt, So while our constituents suffer from simply just doesn’t wash. Oil is traded and they are taking high salaries. It is skyrocketing gas and home heating as a commodity. No company is large time we took away this opportunity to prices, oil companies are able to take enough to affect the price of oil. It is do that. publicly owned resources for free. set worldwide. The price of oil is set. And I will tell you that my col- Both oil company executives and the When I look at a demand curve from leagues on the other side that want to President said that there is no need for China, I see that the price of oil is ex- talk about contracts, the Federal Gov- incentives because oil prices are so actly mirroring China’s increased de- ernment is given the right to termi- high, to encourage companies to drill mand through the last few years. India nate contracts without cause. It is in for new sources. is sitting out there requiring a lot of contract law; it is called the termi- Yet, this Republican leadership has oil too.