1. APPROPRIATIONS:

Key Democrat issues stark warning on consequences of 'sequestration'

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Federal budget cuts scheduled to take effect at the end of the year unless Congress acts sooner "would have a significant impact on oil and gas production, safety and environmental protection, and revenue collection," according to a key House lawmaker.

In a 15-page letter sent to his colleagues today, House Appropriations ranking member Norm Dicks (D-Wash.) seeks to illustrate the impact that so-called sequestration cuts would have on a wide range of government services. The cuts, mandated by the deal lawmakers reached to raise the debt ceiling last year and set to kick in Jan. 1 absent congressional action, would set up 8.2 percent reductions in most federal agency budgets.

Dicks laid out stark warnings to his colleagues, meant to "help make the case for Congress to act responsibly by agreeing to a more sensible approach to deficit reduction."

"Sequestration is not so much a back-up plan as an inducement for all sides to reach a compromise," Dicks wrote. "Clearly, any thoughtful, deliberate agreement will be an improvement over the mechanical and indiscriminate nature of sequestration cuts."

Dicks notes that sequestration cuts would strip $37.4 million from the Bureau of Ocean Energy Management, Bureau of Safety and Environmental Enforcement, and Office of Natural Resources Revenue budgets, forcing them to reduce their workforce and put on hold reforms the Interior Department has begun implementing to encourage more oil and gas production.

"No additional safety inspectors could be hired and recently hired safety inspectors would need to be laid off, resulting in the potential for reduced safety and a greater number of accidents offshore," he wrote. "Ironically, a cut of this magnitude would [mean] less revenue collected for the federal government, as well as the increased possibility of fraud as audits would have to be curtailed."

Dicks also argues:

"In conclusion, Congress must find a way to replace sequestration with a balanced approach to long-term deficit reduction that focuses on economic growth and job creation, and does no harm to our economic recovery in the short-run," Dicks wrote.