To: Dennis Roth who wrote (1349 ) 5/10/2008 10:18:56 AM From: Dennis Roth Respond to of 1740 Domenici seeks to expand U.S. domestic CTL, oil and gas productionmineweb.com The ranking member of the Senate Energy and Natural Resources Committee Thursday introduced legislation to promote domestic oil shale and coal-to-liquids production. Author: Dorothy Kosich Posted: Friday , 02 May 2008 RENO, NV - U.S. Senator Pete Domenici, R-New Mexico, Thursday introduced the "American Energy Production Act of 2008", aimed at dramatically increasing domestic production of oil and natural gas, as well as mandating the production of coal-to-liquid fuel in the United States. Domenici, the ranking member of the Senate Energy & Natural Resources Committee, said, "The bill I'm introducing today will produce up to 24 billion barrels of oil through common sense measures to open up areas offshore and Alaska for exploration. "It will also allow us to develop billions more barrels of fuel through oil shale and coal to liquids technology. The measure will go a long way toward helping us break the cycle of dependence on foreign sources of oil," he said. The American Energy Protection Act will also lift a one-year moratorium on developing oil shale in Colorado, Wyoming and Utah, according to Domenici. He estimated that over 2 trillion barrels of oil shale currently exists in these states-three times as much oil as Saudi Arabia has in reserve. The bill will also allow petitions for leasing activities in the Atlantic and Pacific regions of the Outer Continental Shelf in order to tap into 14 billion barrels of recoverable oil those areas, Domenici said. Exploration will be permitted off shore of a state if that state's governor petitions to have the moratorium on exploration lifted. The legislative also mandates that 6 billion gallons of CTL fuels be produced by 2022, beginning at 750 million gallons in 2015. The bill also gives the U.S. Department of Defense (DOD) the ability to negotiation long-term contracts up to 25 years in duration, to help ensure that the DOD has continued access to a secure source of domestic fuel. In addition, the bill repeals controversial section 526 of the Energy Independence and Security Act, which prohibits federal agencies from using alternative fuels with lifecycle greenhouse gas emissions greater than those associated with conventional fuels. Among the co-sponsors of Senate Bill 2958 are 19 Republican U.S. senators. In a news release, National Mining Association President and CEO Kraig R. Naasz said, "America needs to ramp up the domestic production of a wide range of fuels in order to meet the fuel needs of American consumers and industry. Domestic CTL fuels can help turn the tide against rising energy costs, achieve important environmental objectives and help create thousands of new jobs."