Buyout Could Block Drilling in Everglades, Gulf

By Cat Lazaroff

WASHINGTON, DC, May 30, 2002 (ENS) - About 765,000 acres of Florida park and preserve land would be protected from future oil and natural gas drilling under an agreement announced Wednesday by the Bush administration. The Department of Interior has agreed in principle to spend $235 million to buy back drilling rights beneath the Florida Everglades and in the Gulf of Mexico off the Florida panhandle.

At a press conference in Washington DC, President George W. Bush and his brother, Florida Governor Jeb Bush, announced the administration's plans to acquire the mineral rights under Big Cypress National Preserve, Florida Panther National Wildlife Refuge (NWR), and Ten Thousand Islands NWR - all located within the historic expanse of the Florida Everglades - from Collier Resources Company.

President George W. Bush looks over a topography map with a National Park Service officer at the Royal Palm Visitors Center at Everglades National Park during an earlier visit. (White House photo by Moreen Ishikawa)

"Florida is known worldwide for its beautiful coastal waters and the Everglades," said President Bush. "Today we are acting to preserve both."

"The actions we are taking today to preserve Florida's environment are truly unprecedented," added Governor Bush. "Today, thanks to the President's support, we are reversing the momentum of nearly half a century in Florida and guaranteeing the preservation of our environment-based economy and quality of life."

Collier Resources is the primary holder of the oil and gas rights beneath the Everglades, which are estimated to hold about 40 million barrels of oil - enough to power the U.S. at current rates of consumption for two days. Earlier this year, Collier filed plans to explore and drill in beneath Big Cypress National Preserve, and the National Park Service gave its initial approval to the plan.

But Interior Secretary Gale Norton said the government would seek to buy those mineral rights to prevent drilling in the Everglades.

Under the agreement with Collier Resources, the Interior Department plans to offer $120 million in cash and bidding credits for future oil and natural gas leases in exchange for Collier's mineral rights under the Everglades. Congress must pass legislation to finalize the deal.

Big Cypress National Preserve is a wilderness of mangrove swamps and forests of slash pines and cypresses. (Photo courtesy National Park Conservation Association)

Many Florida stakeholders, including state officials, have argued the oil development in protected areas could undermine CERP, a 35 year effort to restore the Everglades ecosystem while providing water for the area's fast growing population. The federal government and the state have Florida have already begun spending the $7.8 billion that the U.S. Army Corps of Engineers estimates will be required to restore natural water flow within the Everglades.

"Before entering into this agreement, we consulted with the state and our many other partners in Florida," Norton said. "While Big Cypress, Florida Panther and Ten Thousand Islands are part of nationwide systems of federal lands, it is important that the solution we reached be supported by the government and people of Florida."

The 765,000 acres that the agreement would protect in southern Florida are home to several endangered and threatened species, including the Florida panther, American crocodile, red-cockaded woodpecker, and manatees.

"Vast expanses of cypress strands span this unique landscape, with many thousands of acres in pristine condition," said Mary Munson, South Florida regional office director of the National Parks Conservation Association (NPCA). "This mineral rights purchase is another investment toward ensuring that this national treasure remains vital and healthy."

While the NPCA and other conservation groups applauded the Bush administration's plans to protect the Everglades, many called on President Bush to offer the same protections to other natural areas where oil drilling is planned, including the Arctic National Wildlife Refuge (ANWR) in Alaska and Padre Island National Seashore in Texas.

A handful of endangered panthers find refuge in the Florida Everglades. (Photo courtesy Everglades Area Chamber of Commerce)

Interior Secretary Norton noted that in contrast to the 40 million barrels of oil believed to be below the Everglades, the coastal plain of ANWR is estimated to hold 10.6 billion barrels.

"When it comes to energy development on federal lands, each case must be evaluated individually in cooperation with the people who live in the area," Norton said.

"In this case, the amount of oil available was relatively small compared to the nation's overall energy needs, the impact of development could be significant, and the government and people of Florida supported this action," whereas in Alaska, most lawmakers support oil drilling in ANWR, Norton added.

Offshore, the Bush administration has pledged to buy seven of nine leases on the Destin Dome, held by Chevron, Conoco and Murphy Oil, for $115 million. Under the terms of the settlement, Murphy Oil has agreed not to develop the remaining two leases until at least 2012, the year when current oil and gas leasing moratoria expire. Both the federal government and Florida would have to agree to let the leases be developed.

The Destin Dome, 30 miles offshore of Pensacola, is believed to hold at least 700 billion cubic feet of economically recoverable natural gas. In July 2000, the lease holders sued the United States, alleging that the federal government had breached the lease contracts or taken their value without compensation through a drilling moratorium and other regulatory actions.

Slash pines in Big Cypress provide homes for the highly endangered red-cockaded woodpecker. (Photo courtesy USFWS)

Florida officials said the Bush administration's move will have long term benefits for Florida's environment and its largely tourist based economy.

"The President and Governor Bush have negotiated a defining moment in Florida's environmental history," said David Struhs, secretary of Florida's Department of Environmental Protection. "America's best beaches and America's Everglades are now better protected than ever before for this and future generations."

The reelection chances of Governor Jeb Bush are also a likely beneficiary of the deal, noted some critics.

"We think this is a great move for Florida," said Philip Clapp, president of the National Environmental Trust, "but it also amounts to a $235 million campaign contribution to the reelect Jeb Bush committee from the taxpayers."