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By Mary M. Shaffrey
JOURNAL WASHINGTON BUREAU

For the first time in 25 years, the U.S. House approved legislation yesterday that would allow states to permit drilling for oil and natural gas off their coastlines.

The House did so with newfound support from the congressman who represents much of North Carolina's Outer Banks.

"Whether we like it or not, because of the energy shortage, this is a reality. I need to support this while the states still have an option," said Rep. Walter Jones, R-3rd, whose district includes all areas of the Outer Banks north of Camp Lejeune.

Jones has previously opposed drilling because of concern about damaging the state's tourism industry.

Jones said that he had talked to constituents in Dare and Carteret counties and that "they understand (drilling) is going to come one way or the other, and since money is short, we need to do this while we still can."

Under the legislation, states would have the ability to restrict drilling up to 100 miles from their coastlines. But past 100 miles, drilling could occur regardless of a state's position. States that chose to allow drilling withing 100 miles of their coastlines would get up to 75 percent of the revenue raised from any oil or natural gas discovered.

The Bush administration said yesterday that it supports the intent behind the legislation but did not agree with the profit-sharing arrangement. Under the bill, the administration estimated that the revenue - which normally would go to the federal government because state boundaries end three miles offshore - would cost the federal government "several hundred billion dollars" over the next 60 years.

Experts believe that the Gulf of Mexico has the greatest potential for untapped natural gas and oil. As a result, most of the revenue from the new gas and oil discoveries is expected to be concentrated among four states - Louisiana, Texas, Alabama and Mississippi.

Advocates for the bill said that it is a necessary first step to lower energy costs.

"The environmentally safe development of urgently needed oil and natural-gas supplies through access to the deep sea is a vital component of an effective national energy strategy," said Barry Russell, the president of the Independent Petroleum Association of America.

But Rep. Mike McIntyre, D-7th, who represents the southern portions of the Outer Banks, said that the bill is the wrong approach and that instead of solving problems, it might create some.

"This bill doesn't do one thing to bring down the price of gas, and instead it has the potential to harm one of North Carolina's leading industries - tourism," McIntyre said.

Richard Charter, a co-chairman of the National Outer Continental Shelf Coalition, a group that opposed the bill, agrees.

"This was the wish list for big oil for the last 10 years and has profound implications for the Outer Banks," Charter said.

The bill passed the House 232-187. All six Democrats in the North Carolina congressional delegation voted against the bill, and the six voting Republicans supported it.

"It's foolish to ignore the resources that have the potential to be tapped," said Rep. Virginia Foxx, R-5th.

Rep. Patrick McHenry, R-10th, a co-sponsor of the bill, missed the vote. A spokesman said that McHenry was traveling in his district. Had he been in Washington, he would have voted for the bill, the spokesman said.

The bill now goes to the Senate, where its prospects are not as strong as they were in the House.

Sen. Richard Burr, R-N.C., has expressed a willingness to consider the bill because of its "opt-out" provisions, but Sen. Elizabeth Dole, R-N.C, remains opposed to legislation that opens coastal waters to exploration.

Katie Norman, Dole's press secretary, said that allowing leasing off North Carolina's coast would expose the beaches, fisheries and marine life to unnecessary risk

• Mary M. Shaffrey can be reached in Washington at 202-662-7672 or at mshaffrey@wsjournal.com.