	Introduction1

In 2008, oil prices nearly doubled, reaching record levels, before falling back to below $40 per barrel by the end of the year. In the 110 th Congress, proposals included a number of legislative initiatives to increase domestic oil production. These proposals fell into two broad categories: to (1) open areas of the Outer Continental Shelf (OCS) which were under a leasing moratoria; and to (2) encourage companies holding oil and gas leases to diligently develop leases to bring them into production. As the 111 th Congress begins, Congress is faced with issues such as enhancing domestic energy supply and security while assessing areas of environmental concern. The Bush Administration lifted the OCS moratoria on July 14, 2008 and Congress allowed its annual OCS moratoria (see details below) to expire on September 30, 2008 under a continuing resolution—Continuing Appropriations Act for 2009 ( P.L. 110-329 ). The continuing resolution expires on March 6, 2009 or when a permanent appropriations bill for FY2009 is enacted. Based on the executive branch relaxation of the OCS ban, the Bush Administration began the process of preparing the OCS five-year leasing program in August of 2008, two years ahead of schedule. The Draft Proposed OCS Oil and Gas Leasing Program, 2010-2015 was published in early January 2009. This draft proposal, if finalized, would supersede the current five-year program which runs from 2007-2012. The Obama Administration has not yet made a decision to move forward with the proposal. If the early draft is finalized by the Administration, Congress can accept or reject the plan. 6515 , and H.R. On June 26, 2008, under suspension of the rules, H.R. The OCS Moratoria

Under an annual Congressional funding prohibition (in the Interior, Environment, and Related Agencies appropriation bill) and a Presidential Withdrawal, oil and gas leasing and development has been banned in the offshore OCS areas along the U.S. Atlantic and Pacific coasts. However, on July 14, 2008, under a Presidential Directive, the Bush Administration lifted the Executive OCS moratoria that had been in place since 1990, first imposed by President George H.W. However, separate withdrawals might be enacted legislatively, such as provided in the Gulf of Mexico Energy Security Act of 2006 (GOMESA, P.L. 109 - 432 ) which placed nearly all of the Eastern Gulf of Mexico under a leasing and drilling moratorium until 2022. The recent congressional action approving the Continuing Appropriations Act for FY2009 ( P.L. 110 - 329 , enacted September 30, 2008), that continued the funding of government activities through March 6, 2009, or until a regular appropriations bill is enacted, omitted language that provided for the congressional OCS moratoria along the Atlantic and Pacific coasts. Those areas may now be made available for preleasing, leasing, and related activity that could lead to oil and gas development.
Over the past year, crude oil prices have nearly doubled, reaching record levels, before falling below $40 dollars per barrel by the end of the year. In the 110th Congress, proposals included a number of legislative initiatives to increase domestic oil production. These proposals fell into two broad categories: (1) to open areas of the Outer Continental Shelf (OCS) which were under a leasing moratoria; and (2) to encourage companies holding oil and gas leases to diligently develop leases to bring them into production. Two bills were introduced that would have denied new leases to those lessees who were not developing their leases or producing oil or gas (H.R. 6251 and H.R. 6515). The two bills, which included similar provisions, were introduced under suspension of the rules in the House and both failed to achieve the necessary two-thirds support. Comparable legislation was introduced in the Senate (S. 3239).
As the 111th Congress begins, Congress is faced with issues such as enhancing domestic energy supply and security while assessing areas of environmental concern. The Bush Administration lifted the OCS moratoria on July 14, 2008 and Congress allowed its annual OCS moratoria (see details below) to expire on September 30, 2008 under a continuing resolution—Continuing Appropriations Act for 2009 (P.L. 110-329). The continuing resolution expires on March 6, 2009 or when a permanent appropriations bill for FY2009 is enacted.
Under an annual Congressional funding prohibition (in the Interior, Environment, and Related Agencies appropriation bill) and a Presidential Withdrawal, oil and gas leasing and development has been banned in the offshore OCS areas along the U.S. Atlantic and Pacific coasts. However, on July 14, 2008, under a Presidential Directive, the Bush Administration lifted the Executive OCS moratoria that had been in place since 1990. The recent congressional action approving the Continuing Appropriations Act for FY2009 (P.L. 110-329, enacted September 30, 2008), that continued the funding of government activities through March 6, 2009, or until a regular appropriations bill is enacted, omitted language that provided for the congressional OCS moratoria along the Atlantic and Pacific coasts. Those areas may now be made available for preleasing, leasing, and related activity that could lead to oil and gas development. The moratorium, however, would remain in place for nearly all of the Eastern Gulf of Mexico as it was placed off-limits separately under the Gulf of Mexico Energy Security Act of 2006 (P.L. 109-432) until 2022.
Based on the executive branch relaxation of the OCS ban, the Bush Administration began the process of preparing the OCS five-year leasing program in August of 2008, two years ahead of schedule. The Draft Proposed OCS Oil and Gas Leasing Program, 2010-2015 was published in early January 2009. This draft proposal, if finalized, would supersede the current five-year program which runs from 2007-2012. The Obama Administration has not yet made a decision to move forward with the proposal. If the early draft is finalized by the Administration, Congress can accept or reject the plan.