SENATORS SNOWE, COLLINS CALL ON INTERIOR SECRETARY TO PROVIDE LOW-INCOME AMERICANS WITH REDUCED PRICE OIL AND GAS

WASHINGTON, DC-- Senators Olympia J. Snowe and Susan Collins have joined a bipartisan group of Senators in calling on the U.S. Department of Interior to provide royalty natural gas and oil to low-income Americans at a reduced rate. According to the Senators, a provision in the National Energy Policy Act provides the Department with the ability to use oil and gas royalties, which are paid to the government for oil and gas extraction on federal land, to help low-income Americans better afford home energy costs.

"Energy costs remain at record highs, putting at risk low-income families and seniors on fixed incomes, who, without additional assistance, will have to make the choice between heating their home and putting food on their tables," said the Senators in a joint statement. "The National Energy Policy Act includes a provision that provides a unique opportunity for the government to help ensure that low-income consumers have affordable natural gas and heating oil this winter."

In a letter to Interior Secretary Gale Norton, the Senators wrote:

Dear Secretary Norton:

We are writing to express our support for a provision in the National Energy Policy Act of 2005 that authorizes the Department of Interior to provide royalty natural gas and oil to low-income consumers at a reduced price.

The destructive force of Hurricanes Katrina and Rita are reverberating across our nation, putting at risk low-income families and seniors living on a fixed income who are facing extraordinary increases in transportation and home energy costs. Across the nation, utilities are seeking rate increases to cover these rising prices. According to the Energy Information Agency, heating fuel expenditures this winter will increase 47.6 percent to 67.3 percent for natural gas in the Midwest; and 5.4 percent to 10.4 percent for electricity in the South. Heating costs for the average family using natural gas could reach $1,096 this winter, representing an increase of $510 from last year's bills and $542 from 2003-04.

Section 342 (J) of the National Energy Policy Act of 2005 provides the federal government with an innovative tool to help low-income consumers. The provision authorizes the Department of Interior to provide preference to low-income consumers when distributing royalty gas and oil. While there are many ways in which to implement this authority, we urge you to act quickly to develop a program that can serve low-income energy consumers this winter and ensure that all states are the beneficiaries of this program.

We believe the authority in the National Energy Policy Act to provide royalty gas and oil to low-income households offers you a unique opportunity to help ensure low-income consumers have affordable natural gas and heating oil this winter. We stand ready to assist you in developing this program, and will provide any support necessary to get it off the ground in time for the upcoming winter heating season.

###