Bingaman clashes with Republicans on oil industry fees

Senate Energy and Natural Resources Committee Chairman Jeff Bingaman (D-N.M.) is backing an Interior Department proposal to raise fees on offshore oil-and-gas companies to help fund expanded oversight in the wake of the BP disaster.

Bingaman said at a hearing on Interior’s budget plan that last year’s oil spill was a “dramatic reminder” of the importance of effective oversight.

“I strongly support the president’s budget request for additional funding for these purposes, including his request for increased fees from industry to fund inspections of offshore operations,” Bingaman said Wednesday.

The White House’s fiscal year 2012 plan would boost fees in addition to repealing billions of dollars in industry tax incentives.

But the oil industry and many Republicans say raising industry’s costs will slow down domestic development. House Natural Resources Committee Chairman Doc Hastings (R-Wash.) recently attacked the prospect of higher fees.

And moments after Bingaman’s comments, the push for higher fees drew quick pushback from Sen. Lisa Murkowski (R-Alaska), the committee’s top Republican.

She said that amid the turmoil in North Africa and the Middle East, there is “little if any patience for any delays in bringing back our American energy production.”

Interior is seeking $358 million for its Bureau of Ocean Energy Management, Regulation and Enforcement, a 50 percent increase above fiscal year 2010 levels for offshore regulation.

Interior Secretary Ken Salazar, in testimony to the Senate committee Wednesday, touted the push for higher fees to help fund expanded oversight.

“The budget proposes to increase fees for offshore oil and gas inspections from $10 million in the 2010 enacted budget to $65 million in 2012. These fee collections incorporate a more robust inspection program and expand the scope of offshore inspection fees to include offshore drilling rigs, given the need for greater scrutiny of drilling operations as a core component of deepwater oil and gas development,” his prepared testimony states.