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U.S. Sen. Mary Landrieu said Wednesday the Obama administration needs to make new rules for offshore drilling in the Gulf of Mexico more clear before she will stop blocking the nomination of the White House's federal budget director.
In September, Landrieu, D-La., blocked the nomination of Jacob Lew to head the Office of Management and Budget to protest the administration's six-month moratorium on deepwater oil and gas drilling in the Gulf. Even though the moratorium was lifted Oct. 12, Landrieu said she remained displeased with new rules for drilling operations.
The new drilling rules are meant to prevent another catastrophic blowout like the April 20 explosion at a BP oil well off the Louisiana coast that led to the release of more than 200 million gallons of crude.
The new rules focus on making sure blowout preventers work properly. In the case of the BP explosion, the blowout preventer failed to shut off the leaking well as it was designed to. Also, the new rules require companies to be prepared for worst-case oil spill scenarios.
But Landrieu said she would continue to block Lew's nomination until the Interior Department fixes "the regulatory nightmare" hindering deepwater drilling. She said companies were struggling to interpret what the new rules required.
"I'm not asking to be easy on the oil and gas companies, I'm not asking to give blanket permits, I'm asking for clarity of the new regulatory regime," Landrieu said during a teleconference with reporters upon her return from a trip to the Netherlands, where she looked for lessons to take home to Louisiana from the Dutch model of living below sea level.
"I understand that it is important for this country to have a budget director, but this industry is probably the most important, and the most important economic driver, in all of Louisiana," Landrieu said.
"We are asking for clarity, transparency and a statement of support for this industry," Landrieu said of the Obama administration. "So far that hasn't been completely delivered."
Since the moratorium was lifted, the Bureau of Ocean Energy Management, Regulation and Enforcement has not approved a single permit for a new deepwater well. But since June 8, the agency has approved 14 new permits to drill in shallower waters. Shallower water wells also must comply with new regulations.
Melissa Schwartz, an agency spokeswoman, said the government had received only one deepwater drilling permit application for a new well since Oct. 12. "We are approving permits as expeditiously as is safely possible," Schwartz said.
U.S. Sen. Mary Landrieu said Wednesday the Obama administration needs to make new rules for offshore drilling in the Gulf of Mexico more clear before she will stop blocking the nomination of the White House's federal budget director.
In September, Landrieu, D-La., blocked the nomination of Jacob Lew to head the Office of Management and Budget to protest the administration's six-month moratorium on deepwater oil and gas drilling in the Gulf. Even though the moratorium was lifted Oct. 12, Landrieu said she remained displeased with new rules for drilling operations.
The new drilling rules are meant to prevent another catastrophic blowout like the April 20 explosion at a BP oil well off the Louisiana coast that led to the release of more than 200 million gallons of crude.
The new rules focus on making sure blowout preventers work properly. In the case of the BP explosion, the blowout preventer failed to shut off the leaking well as it was designed to. Also, the new rules require companies to be prepared for worst-case oil spill scenarios.
But Landrieu said she would continue to block Lew's nomination until the Interior Department fixes "the regulatory nightmare" hindering deepwater drilling. She said companies were struggling to interpret what the new rules required.
"I'm not asking to be easy on the oil and gas companies, I'm not asking to give blanket permits, I'm asking for clarity of the new regulatory regime," Landrieu said during a teleconference with reporters upon her return from a trip to the Netherlands, where she looked for lessons to take home to Louisiana from the Dutch model of living below sea level.
"I understand that it is important for this country to have a budget director, but this industry is probably the most important, and the most important economic driver, in all of Louisiana," Landrieu said.
"We are asking for clarity, transparency and a statement of support for this industry," Landrieu said of the Obama administration. "So far that hasn't been completely delivered."
Since the moratorium was lifted, the Bureau of Ocean Energy Management, Regulation and Enforcement has not approved a single permit for a new deepwater well. But since June 8, the agency has approved 14 new permits to drill in shallower waters. Shallower water wells also must comply with new regulations.
Melissa Schwartz, an agency spokeswoman, said the government had received only one deepwater drilling permit application for a new well since Oct. 12. "We are approving permits as expeditiously as is safely possible," Schwartz said.
Lew, who also served as OMB chief during the Clinton administration, was approved by the Senate Budget Committee and had appeared headed for easy confirmation by the full Senate. President Barack Obama nominated him in July after former OMB director Peter Orszag resigned.
But under Senate rules, one senator can object to a nominee or a bill advancing to the Senate floor. It takes 60 votes to overcome such an objection.
Kenneth Baer, an OMB spokesman, said he expected Lew's nomination would reach the Senate floor soon. He declined to offer details.
"Senators from both parties and across the political spectrum voted overwhelmingly for Jack Lew in two different Senate committees, he is eminently qualified for the job," Baer said.
