Arctic drilling deal fails in Senate

The refuge is an area about the size of South Carolina (31,000 square miles) that remains largely untouched by human action.

WASHINGTON (CNN) -- Senate proponents of drilling for oil in the Arctic National Wildlife Refuge were dealt a blow Monday as their last-ditch attempts to gather enough votes for passage through a deal aimed at luring steel state senators fell apart.

"It's quite dead," said Sen. Jay Rockefeller, D-West Virginia, of the proposed deal, making it almost certain that drilling for oil in the refuge would not pass the Senate.

Lacking the votes to pass what Republicans see as a key provision of their energy reform bill, Sen. Ted Stevens, R-Alaska, approached Rockefeller last week.

Stevens hoped to appeal to senators from states with failing steel companies by offering to use royalties from oil leases in the Arctic refuge to fund health-care benefits for retired steel workers.

"He said, 'I need oil and you need steel so let's work together,'" said Rockefeller, "and I'm not going to say no, no way."

Stevens hoped that by making a deal with Rockefeller, who has consistently voted against drilling in the Alaska refuge, other senators with steel workers in their states would change their votes, too.

RESOURCES • Fact Sheet: Oil drilling in the Arctic National Wildlife Refuge at a glance • FYI: Explore the pros and cons of drilling for oil in the Arctic refuge   CNN NewsPass VIDEO Environmentalists argue oil drilling could forever harm the Arctic National Wildlife Refuge; Inupiat tribe members say it will bring better life. CNN's Mark Potter reports (April 14) Play video

But Rockefeller demanded a promise, in writing, from the White House and key House Republicans that aid to steel workers would not be dropped in House-Senate conference.

White House officials told Rockefeller they would give a promise only if he first gathered the 60 votes needed to pass the package.

"By asking for that much, you're raising the bar higher than was reasonable," said Sen. Rick Santorum, R-Pennsylvania, who was also trying to work out a deal.

After meeting with Commerce Secretary Don Evans, Rockefeller said it was clear the White House did not support the deal.

"I know Don well enough that he doesn't have to use words with me," said Rockefeller, who also said he thought President Bush "doesn't care about the steel workers."

Republicans delayed the Arctic refuge vote last week to buy time to gather votes, but without a deal on the steel industry provision most believe it is unlikely to pass.

"It will be difficult to pass without steel," said Santorum.

Drilling for oil in the Arctic National Wildlife Refuge is already in the House-passed energy reform bill and therefore will be on the table during the House-Senate negotiations even if it fails in the Senate.

The Senate is expected to take up the drilling issue early this week.