Drilling popular among Va. politicians

Virginia yesterday received the green light to become the first state on the East Coast to explore and drill for oil and gas.

Gov. Bob McDonnell, acknowledging that uncertainty remains, cheered President Barack Obama's decision and said the state could reap lease-sale royalties by late next year or 2012.

The Republican governor, whose refrain is that he wants to make Virginia "the energy capital of the East Coast," said Congress and the administration need to work out the next steps before drilling can begin. Still, he said, the announcement puts Virginia first in line among East Coast states to begin selling oil and natural-gas leases.

"Whether it's a year's worth of oil or whether it's a hundred years worth of oil, whatever we can find offshore is that much less that we have to depend on Iran, Iraq, Venezuela and Russia and other countries that don't always support the United States of America," said McDonnell, flanked by his secretaries of commerce and trade and natural resources at the South Portico of the state Capitol.

Environmental groups strongly criticized the decision by Obama and Interior Secretary Ken Salazar.

Offering the Virginia lease sale as soon as 2011 "represents a horrible rush to judgment that trumps thorough environmental study with politics as usual," said Eileen Levandoski, Hampton Roads coordinator with the Sierra Club.

"Despite the fact that information on the possible effects of Atlantic drilling is '30 years out of date' as Interior Secretary Salazar points out, Virginia's offshore areas will be leased to Big Oil in little over one year and the bull allowed into the china shop."

Virginia is first in line because it was included in an offshore plan proposed by the Bush administration for 2007-12.

That plan was held up because of litigation in Alaska, said Stacey Johnson, press secretary to McDonnell. But all the paperwork was submitted during the first plan, so when Obama gave the OK yesterday, Virginia was set to proceed, she said.

First, oil companies would bid on offshore leases and then would explore for oil and gas before deciding whether to drill.

Efforts to drill 50 miles off Virginia's coast have garnered unusual bipartisan support here, with both Democratic U.S. senators behind it as well as eight of the state's 11 congressmen.

It will be up to those congressional representatives to lead the way on securing royalties from the production of oil and gas.

Rep. Robert W. Goodlatte, R-6th, introduced legislation in the House of Representatives last Thursday to clear regulatory roadblocks to drilling. Seven members of Virginia's congressional delegation joined as co-sponsors.

Reps. Robert C. Scott, D-3rd, and James P. Moran, D-8th, oppose offshore drilling. A spokesman said Rep. Gerald E. Connolly, D-11th, has not taken a position on Goodlatte's bill.

McDonnell said he wants Virginia to get the 37.5 percent state's share of revenues that the Gulf Coast states get but indicated that Midwestern states could seek a portion of that money. Congress will decide the percentage of royalties.

"I believe out of a matter of fundamental fairness we should receive no less than that," the governor said.

McDonnell disputed estimates by environmental groups that there is scant oil or gas and said it is likely that more is out there.

He said royalties from drilling might not be possible until later years.

Legislation endorsed by McDonnell and passed by the 2010 General Assembly would allocate 70 percent of royalties to the Transportation Trust Fund; 20 percent for the Virginia Coastal Energy Research Consortium; and 10 percent to Virginia localities for improvements to infrastructure and transportation.

While running for governor, McDonnell promised to use drilling royalties as one part of his transportation-funding program. His proposal to drill for oil brought the biggest applause during his campaign rallies.

With Obama's announcement, McDonnell said his role now will be as an advocate. He wrote a letter to Salazar in December urging a lifting of the drilling ban and met with him in February. He held a conference call yesterday with Salazar's office.

McDonnell said yesterday's announcement would not lessen his opposition to "cap and trade" legislation, meant to limit carbon emissions. The legislation would increase coal costs and push up the cost of electricity in Virginia, he said.

McDonnell said the U.S. Navy would have a "seat at the table" in deciding where to drill. Some military officials have expressed concern that drilling activity could interfere with military operations.

The governor is lobbying for an expansion of the 2.9 million offshore acres the government has designated.

He contends that the offshore leasing map should be redrawn to reflect better Virginia's lengthy coastline. Rep. Eric Cantor, R-7th, said it is uncertain whether the drilling area can be determined by Congress or administratively.

Contact Tyler Whitley at (804) 649-6780 or twhitley@timesdispatch.com.

Contact Olympia Meola at (804) 649-6812 or omeola@timesdispatch.com.