Monday, October 5, 2009

An oil spill off the coast of Australia that is currently dumping 16,800 gallons of crude in the ocean each day is heightening concerns about allowing drilling off the coast of Florida.

Crude oil began pouring out of a rig 90 miles off Australia on Aug. 21 after a blowout 11,500 feet below the surface. Oil slicks have coated more than 1,800 miles of the Timor Sea.

The spill has created cracks in pro-drilling advocates' arguments that technology has made oil spills nearly impossible.

The Australian spill occurred as oil companies, under the name Florida Energy Associates, began ramping up efforts to persuade legislators to allow drilling off Florida. They have hired some of the state's top lobbying firms and have donated to both the Republican and Democratic parties, according to Mark Ferrulo, executive director of the environmental group Progress Florida.

The oil debate had been on hold since the last state legislative session, when the Senate declined to discuss an oil drilling bill that could have allowed drilling as close as three miles offshore in the Gulf of Mexico. In March, the state House of Representatives passed a bill that allowed gas companies wanting to lease state bay bottom to pay a $1 million nonrefundable deposit to seek state approval, which would come from the governor and Florida Cabinet.

Proceeds from the leases would go to the Florida Forever land-buying program, to beach restoration and to local governments in areas affected by the leases, according to the House bill.

There had been talk of state legislators holding a special session this fall and bringing the oil drilling legislation back, but that seems unlikely now, according to state Rep. Ron Saunders, D-Key West, and incoming House Speaker Dean Cannon, R-Winter Park. However, the drilling will come back before legislators in the upcoming session in March, Cannon said.

Cannon, who supports drilling, wants to refine last year's proposal and is taking input on all sides of the issue. He said he will be holding meetings on "big picture" policy issues, this month and next, that will include oil drilling.

He said the House bill did not guarantee any company the right to drill, that the governor and state Cabinet could say no to any project that was not safe or in the best interest of the state and still keep the $1 million request fee. Drilling advocates insist the fee and proceeds from the leases could be used to fund alternative energy research projects and to clean up spills from local drilling and drilling near Florida.

Cannon said Cuba has begun oil drilling projects, and those projects could impact Florida waters. If spills occur off Cuba and the pollutants reach Florida waters, he said those funds could be used for cleanup.

"This is a big policy decision and deserves a full debate and a balanced approach," he said.

However, fishery managers, tourism industry leaders and ocean conservationists insist the money generated from such projects would not be enough to outweigh damage -- financial and environmental -- from a spill or other accident, especially in light of the spill off Australia.

Drilling could not occur immediately off the Florida Keys, as it is protected by the federal government through the Florida Keys National Marine Sanctuary. Cannon said he wants language put in the legislation that would ban drilling near marine sanctuaries. However, that does not mean oil leaks and spills off North and Central Florida would not reach the Keys. A seasonal eddy in the Gulf of Mexico known as the loop current and other currents could bring spills to Keys waters and keep slicks in the area for weeks, if not months, conservationists say.

Some of the first and hardest hit areas in the Keys would be mangrove shorelines and backcountry, prized for its fishing and a nursery for fish, shrimp, lobster and crabs. Damage to those areas would take years, and possibly decades, to recover, said Billy Causey, former Florida Keys National Marine Sanctuary superintendent and current sanctuary regional manager, adding that traces of the Exxon Valdez spill of 1988 still are lingering off Alaska.

"This would be a problem for years to come," Causey said. "It's a huge risk should there be a mishap."

Advocates claim drilling could bring in at least $31 billion in tax revenue over the next 20 years if oil production was developed. State Rep. Charles Van Zant, R-Keystone Heights, told his fellow representatives last March that oil drilling could generate between 16,000 to 20,000 jobs paying at least $76,000 a year.

Opponents and legislators from coastal communities contend the money would pale in comparison to what it would cost if Florida beaches were damaged in a spill. Florida beaches, coral reefs and coastal waters generate $562 billion a year, according to the Florida Oceans and Coastal Council. The Atlantic Ocean, Gulf of Mexico and other waterways support 5.8 million jobs and account for 79 percent of the state's economy, they say. The ocean, reefs and backcountry waters off the Keys alone generate $1.2 billion a year through fishing, diving, and restaurant and hotel business, Causey said.

The battle over drilling goes beyond the state Legislature. Federal lawmakers also are being asked to ease restrictions. U.S. Sen. Byron Dorgan, D-N.D., is proposing legislation that would allow drilling within 45 miles of Florida's coast. The bill has cleared the Senate's Energy and Natural Resources Committee.

Currently, there are protections to keep drilling away from Florida's coastline, a multibillion-dollar a year revenue generator. An area stretching from 125 to 300 miles off Florida's eastern Gulf of Mexico coast was singled out for protection by Congress in 2006. The agreement was part of a deal with Florida lawmakers that opened up 8.3 million acres to oil and gas development in the east and central Gulf. The protected region is to remain off-limits to energy development until 2022.

Ferrulo, of the environmental group, argued that much of that area still remains untapped and there is no need to expand drilling in other areas near Florida.

"They have barely started drilling in that area and they want more areas to drill," Ferrulo said. "They are promising jobs, money and cheap gas to everyone. It comes down to selling our coastline to the highest bidder."

tohara@keysnews.com