The Republican leaders of two key House committees have launched a probe into the Biden administration’s handling of fossil fuel leasing practices after a leaked “energy security” memo, Fox News reports.
On Tuesday, House Oversight Chairman James Comer of Kentucky and Natural Resources Chairman Bruce Westerman of Arkansas notified senior Department of the Interior (DOI) official Laura Daniel-Davis of a probe in a letter. The correspondence criticized the DOI’s delays in oil and gas leasing and Daniel-Davis’ recent memo prioritizing climate considerations over energy security.
The letter was also led by Chairman Pat Fallon, R-Texas, of the Oversight Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs, and Chairman Paul Gosar, R-Ariz., of the Natural Resources Subcommittee on Oversight and Investigations. Seventeen more House Republicans joined in signing the letter, the outlet noted.
“The Biden Administration has obstructed America’s energy producers in an effort to force a radical Green New Deal agenda on the American people,” Comer told Fox News in a statement. “The Democrats’ ongoing war against America’s oil and gas industry has only driven energy prices higher and families across the country are paying the price.”
“Instead of pushing the Administration’s climate agenda, the Department of the Interior should be prioritizing economic development and American energy security,” Comer noted further, according to the network’s report. “Congress must ensure DOI is fulfilling their responsibility to advance policies that unleash American energy production and strengthen an industry that provides good-paying job opportunities.”
Former Bureau of Ocean Energy Management (BOEM) Director Amanda Lefton wrote a memo in late November recommending that the Department of Interior charge energy companies a royalty rate of 18.75%, the highest allowable rate under the law, for a large oil and gas lease sale in Alaska. However, she acknowledged in the memo that charging a lower rate would likely “offer greater energy security,” but would not correctly account for climate change.
Soon after the confidential memo was sent, Fox News continued, Daniel-Davis publicly approved Lefton’s suggestion without referring to its impact on energy security. In late December, the Department of the Interior conducted a lease sale for almost a million acres, which attracted a single bid valued at $63,983 for a 2,304-acre parcel.
“The memo and your actions in this matter illustrate the pressing need for oversight of DOI’s permitting review processes and the Biden Administration’s prioritization of its climate agenda above states’ revenue streams, economic development, and the energy security of all Americans,” the Republicans wrote in their letter to Daniel-Davis.
“The internal deliberations at BOEM to brazenly elevate President Biden’s radical eco-agenda ahead of common-sense policies call for greater congressional oversight of DOI and BOEM,” the GOP lawmakers added.
Sen. Joe Manchin, D-W.Va., who chairs the Senate Energy and Natural Resources Committee, ultimately rejected Daniel-Davis’ nomination for DOI assistant secretary for land and minerals management. She still holds the position of principal deputy secretary for land and minerals management at the agency.
“The Bureau of Ocean Energy Management and the U.S. Department of the Interior continue to fail in their basic responsibilities and instead are actively elevating President Biden’s radical eco-agenda above the best interests of the American people,” Westerman told Fox News.
“These backroom dealings contribute to Biden’s ongoing energy crisis, threaten America’s national security, discourage future investment, and cause lasting damage to the economy,” he added. “Their work to actively advance politics over America’s energy needs are clear evidence of the dire need for congressional oversight.
In their letter, the GOP lawmakers also criticized Daniel-Davis for the DOI’s failure to finalize a five-year offshore leasing plan as required by federal law. The 1953 Outer Continental Shelf Lands Act mandates the federal government to issue plans periodically that provide details into potential oil and gas lease sales. The most recent plan, implemented in 2017, expired in June.
The Republican lawmakers added that the Biden administration’s “anti-energy agenda” was on full display over the delay in releasing the plan. They noted further that the delay will “directly impede future U.S. energy production, constrict global supply, and drive energy prices higher.”
“The lack of certainty has reduced investment in domestic oil and gas development, limited American energy production, and is driving oil and gasoline prices above the $2.39 per gallon they were when President Biden took office,” the letter concluded.
“Moreover, the lack of leasing will have long-term impacts of exhausted producible acreage, increased reliability on foreign-sourced fuel, and jeopardized price stability for decades to come.”