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With wholesale natural gas prices on the rise and the continuing prospect of further increases in demand, chemical manufacturers and natural gas suppliers are calling on the federal government to open more offshore areas to energy exploration and production. The Interior Department's Minerals Management Service (MMS) is seeking comment on the direction of its 2007-12 leasing plan for oil and gas development on the outer continental shelf (OCS), including whether coastal states should be allowed to opt out of moratoriums now blocking production off their shores. "Given that MMS has a legal obligation to meet the nation's energy needs, we expect the agency to fulfill that obligation by making as much gas as possible available for development," the American Chemistry Council says. "The current policy of keeping more than 85% of the OCS off-limits to energy development is causing major harm to businesses and individuals who depend on affordable and reliable supplies of natural gas." The American Gas Association says the price of natural gas for September delivery is inching toward $10/million Btu, "a clear indication" that demand is outpacing production capabilities. "Many areas of the OCS currently off-limits to natural gas production must be opened up," says AGA President David Parker.
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