The Senate Energy and Natural Resources Committee Tuesday approved a Democratic amendment that would bring oil and natural gas leasing closer to the Florida coastline.

By 13-10, the Senate panel voted out the proposal by Sen. Byron Dorgan of North Dakota, which permits oil and gas activity in the eastern Gulf of Mexico 45 miles from Florida and in the gas-rich Destin Dome that lies 25 miles south of Pensacola, FL.

The Dorgan amendment shrinks the no-drill buffer zone for Florida by 64%, from 125 miles to 45 miles. The 125-mile, no-drill buffer zone for Florida was established in an energy bill passed by Congress in December 2006 (see Daily GPI, Dec. 21, 2006).

Committee Chairman Jeff Bingaman (D-NM) voted for the Dorgan amendment. Five Democrats on the committee voted against it, while five Republicans voted for Dorgan’s amendment.

Sen. Mary Landrieu (D-LA), a staunch drilling proponent, voted against the Dorgan amendment because it did not include a provision on revenue sharing with the coastal states. She proposed a second amendment to Dorgan’s to add revenue sharing of 37.5% for coastal states, but it was defeated by 13-10.

Another drilling supporter, Sen. Lisa Murkowski (R-AK), voted against the Dorgan proposal because it lacked the incentive of revenue sharing to get states onboard with oil and gas production off their coasts.

The Dorgan amendment will be included in the oil and gas title of the broad energy bill, which the committee expects to vote out to the Senate floor by Thursday. The bill will not be referred to any other Senate committees.

The Independent Petroleum Association of America (IPAA), which represents independent oil and gas producers, commended the committee for its action on the Dorgan proposal. “In the eastern Gulf, we’re talking about an area with trillions of cubic feet of American gas, and potentially billions of barrels of American oil. And the best part is: every bit of it resides in areas in proximity to existing pipelines and needed infrastructure,” said IPAA President Barry Russell.

But Sen. Ben Nelson (D-FL) indicated Tuesday he would filibuster the Dorgan language in the energy bill when it comes to the floor.

The committee also approved an amendment by Murkowski to require the Interior secretary to offer areas in the eastern Gulf for leasing 180 days after an environmental review.

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