I got an answer back from Heroku support that environment variables are not available during slug compilation by default. But, there is an experimental feature called user-env-compile that will make them available: http://devcenter.heroku.com/articles/labs-user-env-compile
I didn't need this, though. I thought that because it couldn't find them during compile that it wouldn't be able to find them at all. But, I found that they are available after compile. So, I just updated settings.py to have:
COMPRESS_OFFLINE = os.environ.get('COMPRESS_OFFLINE', True)
So that it defaults to True during compile when the environment variable is not available.