Obama Budget Reforms Oil Regulation Process

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The Obama administration's proposed fiscal 2012 budget would provide $500 million to restructure the regulatory and oversight regime for offshore drilling, strengthening enforcement in the wake of the Deepwater Horizon oil disaster and charging oil companies user fees for inspecting their operations and processing their drilling permits.

The new fees, recommended by the National Oil Spill Commission, would net the Bureau of Ocean Energy Management, Regulation and Enforcement about $65 million, an increase of $55 million over past levels, and would apply to offshore drilling rigs for the first time. Interior Secretary Ken Salazar said an inspection of a deepwater rig would cost an operator $16,700.

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