Cassidy: Salazar Must Act Quickly To Save Vital Energy Projects

Press Release

Today, Congressman Bill Cassidy (R-Baton Rouge) made the following statement in response to a federal appeals court decision that could effectively cancel ongoing outer continental shelf (OCS) energy development programs:

"While the full impact of this decision is unclear at this point, we must be concerned. At a minimum, it delays implementation of energy projects that will create jobs and grow the economy. At worst, the decision could overturn recent OCS lease sales, which would put thousands of Louisiana jobs, millions in revenue for the state, and America's energy security at risk."

"Secretary Salazar must act quickly to ensure these vital energy projects are able to move forward. His continued silence on the issue is deafening."

Late Friday, the D.C. Court of Appeals threw out the U.S. Minerals Management Service's (MMS) 2007 - 2012 oil and gas leasing plan, saying the plan did not meet certain requirements of the OCS Lands Act dealing with environmental impact studies.

While the Court focused on OCS leasing plans in the Beaufort, Bering, and Chukchi Seas around Alaska, the decision "vacated and remanded" the entire OCS leasing program.

The Court ordered the Interior Department to conduct a new analysis of OCS development areas and determine whether the new analysis would exclude OCS areas that have already been leased to energy producers.

MMS must now go back to the drawing board on a leasing program that is well underway, and may even have to rescind contracts that have already been signed, such as those from the March 23, 2009 oil and gas lease sale in New Orleans that will bring over $6.5 million in new revenue to the state of Louisiana. In addition, this decision could directly threaten the plans for the Western Gulf of Mexico lease sale scheduled for August 19.

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