Sen. Nelson targeting Cuban oil exploration near Florida

Posted on Monday, 11.21.11

Sen. Nelson targeting Cuban oil exploration near Florida
By David Goodhue
dgoodhue@keysreporter.com

Bill Nelson, Florida's senior senator, and a Senate colleague from New
Jersey have introduced a bill that would hold foreign oil companies
directly accountable for oil spills that pollute U.S. territory.

The bill was written in anticipation of a massive foreign offshore
drilling operation that could begin in Cuban waters — as close as 50
miles from Key West — by late next month.

Nelson, a Democrat, and Sen. Robert Menendez, D-N.J., introduced the
bill on Nov. 9. It ensures that in the event of an oil spill, claimants
can directly sue companies responsible for the disaster. The bill also
removes the $75 million liability cap.

Nelson and Menendez said in a statement that the legislation is meant to
be a "big stick" to discourage foreign oil companies from drilling
offshore near Florida.

"Hopefully, companies seeking to drill in Cuban waters will think twice
once they know they would be fully liable for any damages to the Florida
Keys, South Florida beaches, or if the spill reached the Gulf Stream,
anywhere up the East Coast," Menendez said in a statement.

A statement from Nelson's office said current law contains "ambiguities"
that might allow companies "to argue that [lawsuits] could not be
brought directly against them under the Oil Pollution Act, the main body
of law that protects America from oil spills."

Spanish oil company Repsol will be the first of several foreign
companies to explore for oil in the Florida Straits aboard a giant
Italian-owned semi-submersible rig constructed in China and Taiwan. The
$750 million rig, named the Scarabeo 9, is en route to the Cuban coast
and is expected to arrive in late December or January.

Companies from countries including Russia, Brazil, Vietnam and Norway
will operate from the rig after Repsol. What is most concerning to some
observers is the depth of the project — more than 6,000 feet underwater.
The 2010 DeepWater Horizon/British Petroleum spill in the Gulf of
Mexico, which took 85 days to stop, happened at a depth of 5,500 feet.

Another concern about the project stems from the 50-year-old U.S. trade
embargo against Cuba's communist government. In the event of a spill,
U.S. companies with needed expertise would be delayed in helping with
cleanup efforts because they would need special permission from the
federal government to operate in Cuban waters.

Nelson said any delay in spill mitigation could prove disastrous for
Florida's environment and tourism-dependent economy.

"If there is a spill there, we could lose part of the Everglades, or the
Keys, or the coral reefs, or our fishing industry or tourism - and
jobs," he said.

How much oil is located in the area of the Florida Straits Repsol will
explore is up for debate. The U.S. Geological Survey estimates about
five billion barrels, but the Cuban government thinks the offshore area
holds up to 20 billion barrels.

Cuba is not the only Florida neighbor hoping to take advantage of its
potential oil reserves. A Bahamian energy investment firm, Bahamas
Petroleum Co., said recently that it hopes to partner with a major oil
company and begin exploration by 2012.

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