Mr. Chairman, I rise in support of the comprehensive energy legislation before us today. While the bill has many excellent provisions, I want to focus on just a few that I believe are particularly important. Increasingly, our country is…
Mr. Chairman, I rise in support of the comprehensive energy legislation before us today.
While the bill has many excellent provisions, I want to focus on just a few that I believe are particularly important.
Increasingly, our country is relying on natural gas to heat our homes, fuel industry, and to generate electricity. The good news is our country is blessed with vast reserves of natural gas, and additional reserves are nearby in Canada. Unfortunately, many of our existing producing reservoirs are declining. This means we must allow access to new reserves and encourage the building of the infrastructure necessary to get these reserves to market.
I am pleased that the bill contains several important provisions designed to do just that. For example, the bill directs the Secretary of Energy to undertake a program to demonstrate technologies for improving production techniques, particularly from unconventional natural gas reservoirs, such as tight sand formations and coal bed methane.
The bill also includes a number of tax provisions to encourage production and infrastructure development. For example, the bill extends the section 29 tax incentives so important to the development of unconventional gas reserves. It also provides royalty relief to encourage production in deeper offshore waters. It also sets a 7-year depreciation life for gathering lines and a 15-year life for distribution lines.
The bill also calls for improvements in the leasing process of the Department of the Interior. Much of the reserves remaining in the continental United States are located on Federal lands. These reserves can be developed in an environmentally sensitive manner, but we must break through the bureaucracy and other barriers that delay or block making these lands available.
In summary, Mr. Chairman, I applaud the work of the many committees involved in putting this package together. Enactment of comprehensive energy legislation will address a critical sector of our economy and our country's security. I appreciate the leadership of
Chairman Tauzin, Mr. Pombo, Mr. Thomas, Mr. Boehlert, and others involved in putting this bill together and I hope that we can reach our goal of signing a comprehensive energy bill into law.