Zachary Coile, Chronicle Washington Bureau
Wednesday, September 17, 2008
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(09-17) 04:00 PDT Washington --
... The bill faces a very uncertain future. The Senate is set to take up three separate energy bills, which differ sharply from the House measure. The White House issued a veto threat Tuesday, saying the House bill "purports to open access to American energy sources while in reality taking actions to stifle development."
Senate Republicans may choose to block action on any energy bill and allow the moratorium to expire on Sept. 30. If the drilling ban lapses, the Bush administration could begin the process of preparing oil and gas lease sales in new areas as close as 3 miles offshore ...
The bill includes other elements opposed by the White House, including a requirement that the administration release 10 percent of the oil in the Strategic Petroleum Reserve and replace it with heavier, cheaper oil. It also would lift the federal ban on oil shale development, which expires Sept. 30, but allow the states of Utah, Colorado and Wyoming to decide whether to extract the energy in oil shale.
The House bill disappointed many environmentalists and some Democrats, who said it bolstered the GOP's claim that drilling could help bring down gas prices. The U.S. Energy Information Administration has concluded that lifting the moratorium would have no short-term impact on gas prices and an "insignificant" effect by 2030 ...
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/09/16/MNF312V0AK.DTL