Offshore-drilling legislation heats up WASHINGTON  As news of a huge oil discovery deep in the western Gulf of Mexico unfolded, informal talks began in Congress to break an impasse over competing House and Senate plans to expand offshore oil and natural gas-drilling. The find by Chevron, Devon Energy and StatOil in an area already open to exploration follows a summer of soaring gas prices partially sparked by BP's shutdown last month of a damaged pipeline in Alaska. But it is unclear whether the discovery will prod lawmakers to work out a compromise before Congress leaves for the Nov. 7 elections. The discovery of reserves that may exceed Alaska's Prudhoe Bay, the nation's largest oilfield, could be "galvanizing," says Marnie Funk, a spokeswoman for Senate Energy Chairman Pete Domenici, R-N.M. "The House either takes the Senate (bill) or no one gets an energy bill this year. That's simply a political reality," she said. "We only have 22 legislative days left, and key senators have made it clear they can't support the House bill or anything like it. We don't have the votes, and we're out of time." Perhaps, but House Majority Leader John Boehner, R-Ohio, indicated Tuesday that his members aren't folding just yet. "We really do believe that we have a much better bill than what the Senate passed," he said. He said he expects committee chairmen to discuss "the prospect for coming to some agreement. I just don't know what it might be." For now, aides to lawmakers are talking, and the House and Senate have yet to appoint negotiators. Both bills would ease restrictions on offshore drilling, now banned in the eastern Gulf of Mexico and along the east and west coasts. The House version goes much further in opening once-protected areas on the Atlantic and Pacific coasts to energy exploration. The White House supports the Senate bill. Senate Majority Leader Bill Frist, R-Tenn., said there aren't the votes for anything broader. The Senate bill, passed on a 71-25 vote Aug. 1, would open 8.3 million acres in the Gulf of Mexico to oil and gas drilling while preserving a "zone of protection" stretching 125 to 300 miles off the Florida coast. Domenici has said the area to be opened for drilling holds 1.26 billion barrels of crude oil and 5.83 trillion cubic feet of natural gas and would "reduce our reliance on foreign oil and gas." The Senate measure would direct 37.5% of annual production royalties to the Katrina-battered states of Louisiana, Mississippi, Texas and Alabama to fund coastal restoration. The states now get 2%. The House approved a more expansive bill in June on a 232-187 vote. It would lift a federal ban on offshore exploration along most of the Atlantic and Pacific coasts. Drilling would be allowed beyond 100 miles from shore and between 50 to 100 miles if state legislatures approve. States would have to grant an exemption for drilling within 50 miles of land. Democrats, led by Senate Minority Leader Harry Reid of Nevada, have vowed to block anything except the Senate bill. It resulted from lengthy negotiations with Florida senators who have opposed past proposals amid fears drilling would endanger tourist beaches. Industry groups support the House bill. "The opportunity to do meaningful energy legislation does not come around very often," says Bob Slaughter of the National Petrochemical & Refiners Association.