NCGA Pleased By House Committee Vote to Eliminate Moratoria on Natural Gas Development (5-11-06)

In a move that would expand domestic supplies of natural gas, a key component for the production of anhydrous ammonia, the main source of nitrogen for corn production, the House Appropriations Committee voted to eliminate the moratoria on the drilling and exploration of offshore natural gas, notes the National Corn Growers Association (NCGA). 
 
The House Appropriations Committee voted 37-25 to approve an amendment introduced by Rep. John Peterson (R-Pa.) to the 2007 Interior and Environment Appropriations bill, stripping a long-standing congressional prohibition against offshore natural gas exploration. The amendment eliminates offshore bans covering both coasts and the eastern Gulf of Mexico that have been renewed annually since 1982 through the Interior appropriations bill. Peterson's language would leave the bans on oil in place.
 
“Our country is becoming crippled by the natural gas crisis that has been years in the making,” said Garry Niemeyer, NCGA Corn Board member. “Representative Peterson’s amendment is a step in the right direction to the domestic exploration and development of natural gas, which will help decrease the cost of and increase the volume of natural gas available. It is critical to agriculture producers and businesses, and it will strengthen our domestic energy and economic security.”
 
Niemeyer said farmers are facing rising input costs on their farms because of the increasing and unstable pricing of natural gas and fertilizer. Growers rely heavily on affordable natural gas as a feedstock for making fertilizer, energy for irrigation, powering plants, drying grain and producing ethanol.

The bill will now go to the House floor for a vote at a date to be determined.