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Gulf Oil Spill

While public opinion will largely put the blame of the Deepwater oil spill on the backs of British Petroleum Corporation, I think it is imperative to examine the public policies that put the environment in harm’s way, along with identifying other federal and state officials, lobbyists and corporate executives who have all played a role in shaping our state’s energy initiatives.

            Although the first attempts to submerge oil wells in salt water took place in the 1890’s in Santa Barbara, Calif., it wasn’t until 1946 when Magnolia Petroleum, which later became Exxon/Mobil, was successful in drilling at a site 18 miles off the coast of St. Mary Parish, La. that the industry grew wings. From 1947 to 1981 oil companies were able to purchase federal leases and drilled five wells in Atlantic Florida state waters and 51 exploratory wells on federal leases on the outer continental shelf, (OCS). However, since 1981 no federal leases have been issued for offshore drilling since Congress stopped the sale of leases off the coast of North Carolina. In 1983 the moratorium on drilling was expanded to include Southern California, parts of New England and the Florida Gulf Coast. In June 1990, President George H.W. Bush announced a 10-year moratorium on drilling off California, Florida, and New England coastlines. These were later extended by President Bill Clinton until 2012.  (The ban only applies to federally controlled waters, which extend from 10.3 to 125 miles off the coastline).

            In 2002, with the urging of Florida Governor Jeb Bush, the George W. Bush Administration announced a settlement with Chevron, Conoco, and Murphy under which the federal government bought back $115 million in leases 25 miles south of Pensacola Beach. The purchase was roundly applauded by local fisherman and restaurants, since the companies had plans to sink 21 natural gas wells in an area rich in redfish  and spanish mackerel.

 

Change in the Political Climate

            In 2005 an amendment was proposed by U.S. congressmen John Peterson, R-Pa., and Neil Abercrombie, D-Hawaii, to open the coast of Florida and other states to offshore drilling. However, after impassioned letters from Gov. Jeb Bush and 22 of Florida’s 25 congressmen, House Resources Committee Chairman Richard Pombo, R-Calif., withheld the bill. Even so, not all congressional leaders were in favor of the stoppage, including Reps. John Mica, R- Winter Park; Dave Weldon, R-Melbourne, and Tom Feeney, R-Oviedo.

            In July of 2008 President Bush lifted the ban on drilling in federally controlled waters, which extend from 10.3 to 125 miles from the coast. That same year the House passed the Comprehensive American Energy Security and Consumer Protection Act by a vote of 236-189, allowing for oil and gas drilling in federal waters more than 100 miles off the coast and drilling between 50-100 miles off the coast at the discretion of individual states. 

            The anti-drilling sentiment in Florida began to shift as the war in Iraq escalated- along with the oil prices. State legislators began to soften their stance on drilling amid the country’s rising dependence on foreign oil and the lure of millions of dollars in lease royalties from companies wanting to tap into the gulf ‘s rich oil supply.

            As a new bill was proposed in June of 2006 to lift the moratorium on offshore drilling along Florida’s coast, a bi-partisan team of Sens. Bill Nelson (D) and Mel Martinez (R) unveiled the Permanent Protection for Florida Act, putting in place more rigid anti-drilling protections for the rest of the OCS around Florida.

            In April of 2009 the Florida House voted 70-43 to allow drilling 3-10 miles off Florida’s coastline. The bill went pretty much along party lines with only two Democrats voting For and three Republications Against. However, without the support of Gov. Charlie Crist, whose main concern was about the  “closeness to shore'', the bill failed to  pass through the senate and become law.

            Fast-forwarding to present day, two powerful political allies in the Florida Legislature, incoming house speaker Rep. Dean Cannon, R-Winter Park and incoming Senate president Mike Haridopolos, R-Indianatlantic,  set their sights on  legislation that would lift the ban on offshore drilling on Florida’s coast. However, just days before the Deepwater explosion, Rep. Cannon stated he would table the push to pass the through the draft bill in committee with only two weeks left in this legislative session.  "It is not the right time to vote on this issue," he prophetically proclaimed.

            After the spill Haridopolos was quoted in Florida Today, stating, "Anytime you look at any exploration, whether it's energy or space, there are inherent risks. We just saw 29 miners killed in West Virginia, getting coal.”

            "One incident should not put the idea to death," he said.

 

The Texas Connection

            One common denominator in the offshore oil equation is unmistakable- Texas. Although Deepwater Horizon, the semi-submersible offshore drilling rig now at the bottom of the gulf, was built in South Korea, it is owned by Transocean, the world’s largest drilling contractor. The are headquartered in Houston, Tex. And it so happens the Macondo Prospect (Mississippi Canyon Block 252 where Deepwater is located), is 25% owned by Anadarko Petroleum Corporation, headquartered in The Woodlands, Tex. However, that’s just the tip of the Texas iceberg.

            According to reports from The Miami Herald, a group known as Florida Energy Associates has openly courted senator Haridopolos and representative Cannon, sponsoring legislative dinners and enlisting their aid to campaign for support of a bill to lift the ban on offshore drilling.  The front man is M. Lance Phillips, from Mexia, Tex., an independent oil and gas producer who currently works more than 200 energy-producing locations in Texas. When asked by the St. Pete Times about others involved with FEA, he stated,  "I'm the small fish in this pond with some of these other fellows."

            The chief Counsel of the organization is Lewis Sessions, brother of U.S. Rep. Pete Sessions, R-Texas, and son of former FBI director William Sessions, who served under President George H. W.  Bush.  And the chief of public affairs is David Rancourt, formerly chief campaign consultant for Charlie Crist’s successful 2000 campaign for State Education Commissioner.

 

 A Record of  Violations

            When all is said and done, of course the nexus of blame falls on British Petroleum. Unfortunately, this has not been the first time that BP has experienced tragic industrial mishaps. In 2005 the company was assessed $87 million in OSHA fines for failure to address safety problems identified after an explosion that killed 15 workers at its Texas City, Tex. refinery.  According to OSHA documents the agency issued 271 notifications for failure to correct hazards over a four-year period. According to their own website, BP reported fines and penalties totalling $1.1 million in 2008, $22.5 million in 2007, $2.5 million in 2006, $56.0 million in 2005, $4.8 million in 2004, $7.0 million in 2003, and $27.5 million in 2002.

            While it is estimated that the containment and clean-up costs associated with this spill could total $3 billion, it should be noted that the company’s sales and operating revenue in 2009 was a mere $239 billion.

            David Mica of the Florida Petroleum Council, a division of the American Petroleum Institute, a trade association with more than 400 member oil companies,  was recently quoted,  "I sleep pretty good at night knowing mankind is doing a good job protecting our resources. Of course, there are no guarantees."

            No guarantees indeed.


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