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Sen. Lisa Murkowski (R-AK), Ranking Member of the Senate Energy and Natural Resources Committee, suggested that the Committee is not likely to address the recently lifted OCS moratorium in energy legislation expected to be crafted over the next several months. She does, however, expect such legislation to allow for an assessment of current OCS reserves. These and other OCS issues are sure to be the subject of significant debate as the Senate moves forward on energy legislation. Stay tuned. Read more at E&E Daily for more [subscription required].

Rep. Jim Costa (D-CA) will chair the Subcommittee on Energy and Mineral Resources, which has jurisdiction over energy development on public lands and waters, including oil and gas leasing in the Outer Continental Shelf. The selection by the Democratic Caucus of Costa, whose district includes parts of Fresno and Bakersfield and is entirely inland, means that yet another California Democrat will play an important role in offshore energy development, adding to Senator Barbara Boxer, who chairs the Senate Committee on Environment and Public Works, and Rep. Henry Waxman, who chairs the House Energy and Commerce Committee. Read the House Natural Resources Committee's press release for more details.

The U.S. Navy is in the early stages of developing a tidal energy project to produce electricity for its base at Indian Island, Washington. Pending funding for the $2 million project, the plan is to start a one-year pilot program next fall with six submerged turbines. If successful, tidal energy may be used to assist the Defense Department in meeting the National Defense Act of 2007 mandate to obtain 25% of its energy from renewable sources by 2025. The Associated Press (via The Oregonian) provides more details.

Senator Bingaman issued a short statement today applauding Interior's analysis of the environmental and safety impacts of the Cape Wind Energy Project proposed for offshore Massachusetts.  He also expressed support for a team-oriented approach to offshore drilling, including collaboration from DOI and the coastal states.  With the Obama Administration and Secretary Salazar supporting a "thoughtful approach" toward offshore drilling, it seems increasingly unlikely that a comprehensive offshore moratorium on the east and west coasts will be resurrected by Congress.

In today's Federal Register, the MMS published its Notice of Intent (NOI) to Prepare a Programmatic Environmental Impact Statement (PEIS) and Call for Interest for future industry geologic and geophysical exploration on the Atlantic OCS. The NOI initiates the scoping process for the PEIS and also seeks interest from other federal agencies, and state, tribal, and local governments to consider becoming cooperating agencies in the preparation of the EIS.

The Minerals Management Service published a request for comments today on the draft proposed 5-year OCS oil and gas leasing program for 2010-2015. The draft proposal is for a new oil and gas program to succeed the current program that is set to expire on June 30, 2012.  In developing the proposal, MMS considered oil and gas leasing in the areas of the OCS that are included in the current 5-year program and additional areas off Alaska, the Pacific and Atlantic coasts, and the Gulf of Mexico. Many of these areas had been subject to an annual congressional moratoria prohibiting oil and gas leasing. This moratoria expired on September 30, 2008. The MMS also announced its Notice of Intent to prepare an Environmental Impact Statement for the proposed 5-year plan.

The Department of Energy's Office of Fossil Energy has announced the availability of the 2009 Annual Plan for the Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources Research and Development Program. Among other things, the Annual Plan supports oil and gas research and development in the ultra-deepwater areas of the Outer Continental Shelf. After DOE transmits the Annual Plan to Congress, Requests for Proposals will be developed and released for project awards. 

The Bush Interior Department, during its last days in office, has proposed a plan to broaden offshore oil and gas leasing, including regions off both the east and west coasts and the Gulf of Mexico.  MMS has jurisdiction over federal oil and gas leases, including the Outer Continental Shelf, over which a decades-old moratorium on drilling recently expired.  President-elect Obama has signaled that he supports new offshore drilling, but only as part of a "comprehensive package" on energy.  Greenwire provides further coverage.

The long-stalled wind energy project proposed for offshore Massachusetts received a positive Final Environmental Impact Statement (FEIS) today from the Interior Department’s Minerals Management Service (“MMS”), clearing the way for MMS to issue a lease to the project developer, Cape Wind Associates. While this positive FEIS sets the basis for final approval, the Obama Administration ultimately will determine the future of Cape Wind -- an interesting dilemma for President Obama given his support for renewable energy but the strong opposition to Cape Wind of Senator Ted Kennedy (D-MA), a critical supporter of candidate Obama during the Democratic primary. If approved, this will be the first offshore lease for a wind energy project authorized by MMS.

Woodside Natural Gas announced yesterday that it has suspended its OceanWay LNG deepwater port project proposed for offshore Southern California. A company spokesperson told the Los Angeles Times that Woodside plans to revive the project when economic conditions change.

The U.S. Court of Appeals for the Fifth Circuit today ruled in the matter of Kerr-McGee v. Allred that the Deepwater Royalty Relief Act of 1995 did not authorize Congress to include price thresholds in oil and natural gas leases issued between 1996 and 2000. In a unanimous opinion, the court found that Congress clearly intended to provide volumetric royalty relief to producers, noting such relief could not be reduced based on the price of the commodity. While the court’s ruling was clear, there still remains considerable debate in Congress as to the intent of the statute.  This ruling has tremendous implications for a related matter involving deepwater leases issued in 1998 and 1999 that did not contain price thresholds. In the wake of the court’s ruling, several members voiced their disapproval and vowed to revisit the issue.

Rhode Island Governor Donald Carcieri (R) yesterday released details about the construction timeline for the state's proposed offshore wind farm. The wind farm will be built in two phases beginning in 2010. The first phase, sited in state waters, is expected to go online in 2012 and will be comprised of wind turbines capable of generating 20 megawatts of electricity. The second, larger phase involves the development of additional turbines on the Outer Continental Shelf. Because of its location, the second phase will be subject to the approval of the Minerals Management Service. SustainableBusiness.com provides more detail.

Two Congressional Democrats from California have proposed legislation aimed at blocking drilling off the coast of Northern California. Rep. Mike Thompson (D-CA) and Rep. Lynn Woolsey (D-CA) introduced separate legislation yesterday in an "effort to protect th[e] area and to keep it pristine."  Rep. Thompson’s legislation aims to prohibit oil and gas drilling off Mendocino, Humboldt and Del Norte counties, and Rep. Woolsey reintroduced legislation seeking to expand two national marine sanctuaries off the coast of Sonoma County.  The Press Democrat has more details.

Given the unlikelihood of a comprehensive moratorium on offshore drilling on the east and west coasts, targeted legislative efforts at banning drilling in specific locales may become more frequent.  More to come ....

Is the state of Texas the easiest place for offshore energy developers to begin construction? Texas has exclusive jurisdiction over the outer continental shelf for 9 miles off its shore -- up to 3 times more than most states. That means more space with only one landlord to negotiate leases with. Moreover, the Texas General Land Office, which grants the leases, appears anxious to do so relatively quickly and cheaply, as the state is more concerned with revenue from royalties than revenue from the lease payments themselves. ClimateWire provides additional coverage [subscription required]. 

The Department of Energy's Wind and Hydropower Technologies Program released a fully searchable database of information on marine and hydrokinetic renewable energy including wave, current, and ocean thermal energy conversion technologies. The database currently covers around 28 countries, providing information on technology types and specific projects, as well as a glossary of standard definitions. The Progress Alert can be found on DOE's website.

Reuters reports that the Massachusetts Department of Environmental Protection has approved Cape Wind Associates LLC's application to install electrical cables in state waters.

The United States Coast Guard issued a final rule amending the Vessel Response Plan salvage and marine firefighting requirements for tank vessels carrying oil. The rule identifies certain salvage and marine firefighting services that must be present in Vessel Response Plans and imposes new response time requirements with the goal of ensuring vessels are appropriately prepared to manage oil spills. The final rule can be found in theFederal Register.

The Minerals Management Service has rejected a request by Virginia Governor Tim Kaine (D) to postpone plans to hold a lease sale off the state's coast.  Governor Kaine wanted to delay the process until President-elect Obama had a chance to review the matter. MMS Director Randall Luthi said that the regulatory comment period would be moved back until January 13, citing the recent holidays as the reason for granting a two-week extension. Luthi also suggested that there was no reason to grant the extension because "the next administration can delay the process, speed up the process or imprint the process as they see fit.” While President-elect Obama has stated that he favors offshore drilling as part of a comprehensive energy policy, it remains to be seen how the incoming administration will address such offshore energy issues.  The Virginian-Pilot provides additional coverage.