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COLLINS URGES REMOVAL OF PROVISIONS FROM ENERGY BILL THAT THREATEN DRILLING BAN IN GEORGES BANK

WASHINGTON, D.C. -- Senator Susan M. Collins today urged the Chairman of the Senate Energy Committee Pete Domenici to remove provisions in the energy bill currently being debated in the Senate that threaten the existing moratorium on oil and gas drilling in Georges Bank.

"The energy bill, as currently written, would allow potentially damaging seismic technology in the vital fishing grounds of Georges Bank," said Senator Collins, who wrote a letter to Domenici urging him to remove the provisions from the bill. "Given the potentially catastrophic effects that an oil spill would have on Georges Bank and the coastal communities of New England, drilling is not an acceptable option. There's no need to study its drilling potential. It's a waste of time and it's a waste of money."

While the United States has imposed a moratorium on drilling - or activities related to it - in Georges Bank until 2012, the energy bill being considered by the Senate requires the Department of Interior to inventory all potential oil and natural gas resources in the entire outer continental shelf, including Georges Bank. These provisions are in direct conflict to a law Senator Collins authored two years ago that prevents any preleasing activities in Georges Bank and the entire North Atlantic. Specifically, Collins's law prevents the Department of Interior from spending any funds on leasing, preleasing, or related activities in any of these areas.

Georges Bank is a 185-mile bank stretching across the mouth of the Gulf of Maine from Cape Cod to Nova Scotia. About five-sixths of the bank lies within U.S. waters, and the United States and Canada have agreed to a moratorium on oil and gas exploration until 2012. Georges Bank is a broad, shallow, and ecologically-sensitive fishing ground that is among the world''s most productive fishing areas.

A copy of the letter Senator Collins sent to Senator Domenici follows:

May 7, 2003

The Honorable Pete Domenici
Chairman
Senate Committee on Energy and Natural Resources
364 Dirksen Senate Office Building
Washington, DC 20510

Dear Pete,

I write to express my concern over provisions included in the Senate Energy Bill, S. 14, that threaten the existing moratoria on leasing and preleasing activities related to oil drilling on Georges Bank, off the coast of Maine, and other areas of the outer continental shelf (OCS).

Section 105 of the energy bill requires the Department of the Interior to inventory all potential oil and natural gas resources in the entire OCS. This provision would allow potentially damaging seismic technology in the vital fishing grounds of Georges Bank.

Georges Bank is a magnificent American resource. The unusual underwater topography and tidal activity of Georges Bank create an almost self-contained ecosystem, unique within the ocean that surrounds it. It is one of the most productive fisheries in the world, where Mainers and many others harvest cod, haddock, yellowtail flounder, scallops, lobsters, swordfish, and herring.

Mainers have fished Georges Bank for hundreds of years. Hundreds of small communities in New England depend on fish from Georges Bank for economic support and their maritime-based way of life. In recent years, Maine's fishermen have made significant economic sacrifices to work toward sustainable and healthy fish stocks. I am extremely worried that any drilling activities, even preleasing activities, could destroy their work.

An oil spill on Georges Bank would have catastrophic effects on the Georges Bank ecosystem and the economies of the coastal communities of New England. Georges Bank experiences some of the most severe weather in the world, and the frequent storms, strong currents, and high winds would cripple any post-spill cleanup effort. For this reason, and because of its great biological value, many scientists, fishermen, and other persons concerned with and knowledgeable about the unique ecosystem of Georges Bank have urged that no drilling activities occur in this region.

I have long worked to protect Georges Bank from the potentially devastating impacts of May 6, 2003 Page 2

offshore oil and gas drilling. In 1999, when the Government of Canada was considering whether or not to drill on Georges Bank, I introduced a resolution in the Senate that asked the Government of Canada to impose a moratorium on drilling on the Canadian side of Georges Bank until 2012. I was very relieved when, several months later, Canada did indeed impose such a moratorium. The United States also has a moratorium on drilling Georges Bank until 2012.

This issue again arose in May of 2001, when, to my concern, the Outer Continental Shelf Policy Committee recommended to the Secretary of the Interior that she encourage congressional funding to assess the oil and gas potential of offshore areas covered by the moratorium. I was even more concerned that the recommendations included a suggestion to explore lifting parts of the existing moratorium.

In response, I worked to include language in the FY 2002 Interior Appropriations Bill that would prohibit the use of funds for the conduct of any offshore preleasing, leasing, or related activity on Georges bank. Along with Senators Kerry, Kennedy, and Snowe, I cosponsored an amendment that prevented any preleasing activities in Georges Bank and the entire North Atlantic, as well as the West Coast off California, Oregon, and Washington, and the eastern Gulf of Mexico. Our amendment, which was signed into law as part of H.R.2217, prohibits the Department of the Interior from spending any funds on leasing, preleasing, or related activities in any of these areas. Similar language has been included in subsequent interior appropriations bills.

I am concerned that Section 105 of the energy bill is contradictory to the Interior Appropriations bill language and the expressed will of the Senate against the expenditure of funds for the use of preleasing activities in Georges Bank. I hope you will consider removing these provisions from the Senate Energy Bill.

Thank you for your consideration of my request.

Sincerely,

Susan M. Collins
United States Senator