Protecting States' Rights To Promote American Energy Security Act
I thank the gentleman. Mr. Chairman, now here, a group has done an assessment of the various State regulatory regimes, and as you can see, they vary tremendously. They think that the best is Maryland. There are others gathered toward the…
I thank the gentleman.
Mr. Chairman, now here, a group has done an assessment of the various State regulatory regimes, and as you can see, they vary tremendously. They think that the best is Maryland. There are others gathered toward the top, the middle, and then way down here at the bottom, you have Virginia.
Some States require comprehensive pressure testing of the casing. That is essential, particularly if you are going through the water table to get to the gas. If you get the leaks, then you destroy the water table. Some States don't require that.
Some States require that you contain the fluids that come back up, the waste products laden with toxic materials not only from the fluids but from the ground itself. Other States allow it to be in open pits.
Some States require disclosure of the chemicals that are used. Now how can you say there has been no contamination when there are contaminated wells in many places across the U.S.? Some of it has to do with baseline contamination with arsenic or other things, but if you don't know what they are sticking into the ground near your well or water table, you can't track what it is that was a baseline before and/ or what is pollution that has resulted. We don't know that. So why not require disclosure of the chemicals?
We are having a gold rush right now for fracking. It is not exactly like this is going to have an impact if we put in place a reasonable floor of Federal regulations. One Macondo, just one Macondo in this industry, one well that blows out in a large aquifer or some other disaster, and this whole thing is going to come grinding to a halt, and then you are going to see a strong push-back for strong regulations.
Quite frankly, I don't think that the regulations being proposed by this administration are stringent enough for a floor. They are probably above maybe some of these people on the bottom, but they are way below some of the best-performing States here.
Why should it be different State to State to State? What is it? Do we want to protect the above ground resources and not have open pits? Well, under this bill, if you have an open pit, it is on a flyway, migratory birds land there and die quickly, the Federal Government can't do anything about it. If that State allows open pits, we can't do anything about that. That is up to that State, and that is a fact. A number of States allow open pits.
We should have a regulatory regime where the Federal Government, on its lands, which belong to all the people of the United States, sets a reasonable floor for regulations. If a State like Maryland wants to go above good, solid regulations, well, then, good. But if someone else is a bad actor, and they want to drag it down, and they want to have open pits, they don't want to test the casing, they don't want to do other things that are absolutely essential to protect resources, then they can do that on Federal lands?
It is bad enough that they are allowing people to do it on private lands and do it on their State lands. But these are Federal lands. We are going to require and should require a higher bar to protect the public, to protect the environment, to protect these precious resources and do this responsibly.
I thank the gentleman for the question.
It was done by an advocacy group called Resources for the Future. It is kind of like your study that says it will cost $350 million, which was done by industry. It is an advocacy group. You have an industry advocacy group. We have an environmental advocacy group.
Mr. Chairman, I have an amendment at the desk.
Mr. Chairman, this is an amendment that I think will help deliver on some of the promises being made here today. This would say that natural gas produced on Federal lands, on Federal lands only, would not be allowed to be exported from the United States.
Now, the principal argument we are hearing on the Republican side is that, by adopting their standard, which they say is the states' rights standards--I have already raised concerns about that on fracking--that it will encourage yet more development on Federal lands, increase our domestic energy supply, and free us from the OPEC cartel. Okay. But that won't work if we produce energy on Federal lands and then we export it to other countries like China or Japan or elsewhere.
The Energy Information Administration has done a study. They say there will be a tipping point in the export of liquefied natural gas where we will create a world market; we will be subject to the world price. That means that there would be a dramatic increase in gas prices here in the United States both for residential, factory use, and as an input for manufacturing fertilizer or other sorts of manufacturing.
So, suddenly, we would see an advantage which we have only very, very recently developed. We have manufacturing companies bringing production back to the U.S. because of our plentiful natural gas and saying it is to our advantage, our energy is cheaper here, our feed stocks are cheaper here. This is a tremendous advantage for us, and they are producing here and exporting finished goods.
If we begin to export in great volume the raw material, the feed stock, the natural gas through a liquefied process, then suddenly it will be we are in the international market. It means a dramatic run-up in natural gas prices. We lose our competitive advantage for domestic manufacturing, and we are back where we are with oil, despite the idea that if we produce more oil we will somehow become free of OPEC or other countries around the world.
The fact is that oil is traded as an international commodity, and no matter how much we produce here, it is going to be priced internationally at the highest price being paid in the international market. That is not so today for natural gas. But if we export enough of it and create enough capacity to export it, that will become the case.
So this would have no impact on gas produced on State lands, Indian lands, private lands. It just simply says that that approximately 15 percent of the natural gas being produced on Federal lands could not be exported, must be used domestically to keep prices down here at home to advantage manufacturers here at home.
Mr. Chairman, I reserve the balance of my time.
To the gentleman's point, it is absolutely clear. It says ``gas.'' It does not say products derived from gas, fertilizer, or manufactured plastic or anything else. It just says the gas must be sold here in the United States.
He admits and says that it will make it less valuable. That means he is looking at increasing the price of natural gas here to accommodate exports overseas to put us in a world market. Then we are, yet again, screwed, just like we
have been with oil for years. We are back to the point where we are competing in an international market. We lose international competitiveness. We lose more manufacturing.
This is pretty transparent here. I mean, the industry is pressuring, I am sure, on their side of the aisle, saying, Oh, my God, don't do that. Don't say that that 15 percent of the gas produced on Federal lands, belonging to the taxpayers of United States, has to be used here to help keep down our prices for our homes, for our manufacturing, to give us a competitive world advantage. Let's do it like all our other free trade, which is bankrupting the country and exported millions of manufacturing jobs over the last few years.
He talked about it again. Globally decided free market. He used those words. If we go to a globally decided free market in the export of natural gas, we lose the advantage, and their basic premise that this will lower prices for Americans is stood on its head.
If you don't adopt this amendment, if you vote against it, you are voting to increase the price of natural gas, according to the Energy Information Administration, for all consumers and manufacturers and the downstream products from those in the United States of America. So, if you really want to lower the price to consumers, vote for this amendment.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I demand a recorded vote.