Request for Comments on the Preparation of a New 5-Year Outer Continental Shelf (OCS) Oil and Gas Leasing Program for 2007-2012; and on the Intent To Prepare an Environmental Impact Statement (EIS) for the Proposed 5-Year Program, 49669-49679 [05-16905]
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Federal Register / Vol. 70, No. 163 / Wednesday, August 24, 2005 / Notices
plan (64 FR 37148). However, we never
finalized that draft. The plan we are
releasing at this time is the second draft
of the second revised recovery plan for
Hawaiian waterbirds.
Historically, these four species of
waterbirds were found on all of the
¯
main Hawaiian Islands except Lana‘i
and Kaho‘olawe. Currently, Hawaiian
ducks are found on the islands of
Ni‘ihau, Kaua‘i, O‘ahu, Maui, and
Hawai‘i; Hawaiian coots and stilts are
found on all of the main Hawaiian
Islands except Kaho‘olawe; and
Hawaiian common moorhens are found
only on the islands of Kaua‘i and O‘ahu.
Population estimates indicate the
numbers of birds fluctuate among years
and that currently none of these species
consistently number more than 2,000
individuals, with the exception of the
Hawaiian coot, but these estimates are
reliable only for the coot and the stilt.
These endangered Hawaiian
waterbirds are found in a variety of
wetland habitats including freshwater
marshes and ponds, coastal estuaries
and ponds, artificial reservoirs, taro
(Colocasia esculenta) patches, irrigation
ditches, sewage treatment ponds, and in
the case of the Hawaiian duck, montane
streams and swamplands. The most
important cause of decline of the four
species of endangered Hawaiian
waterbirds is loss of wetland habitat.
Other factors that have contributed to
waterbird population declines, and
which continue to be detrimental,
include predation by introduced
animals, altered hydrology, alteration of
habitat by invasive nonnative plants,
disease, and possibly environmental
contaminants. Hunting in the late 1800’s
and early 1900’s took a heavy toll on
Hawaiian duck populations, and to a
lesser extent on populations of the other
three endemic waterbirds. Currently,
predation by introduced animals may be
the greatest threat to the coot, moorhen,
and stilt, and hybridization with feral
mallards is the most serious threat to the
Hawaiian duck.
The recovery of the endangered
waterbirds focuses on the following
objectives: (1) Increasing population
numbers to be consistently stable or
increasing with a minimum of 2,000
birds for each species; (2) establishing
multiple, self-sustaining breeding
populations throughout each species’
historical range; (3) establishing and
protecting a network of both core and
supporting wetlands that are managed
as habitat suitable for waterbirds,
including the maintenance of
appropriate hydrological conditions and
control of invasive nonnative plants; (4)
for all four species, eliminating or
controlling the threats posed by
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introduced predators, avian diseases,
and contaminants; and (5) for the
Hawaiian duck, removing the threat of
hybridization with feral mallards. If the
recovery criteria presented in the
second draft revised recovery plan are
met, downlisting could be initiated in
2010 and delisting in 2015.
Public Comments Solicited
We solicit written comments on the
second draft revised recovery plan
described. All comments received by
the date specified above will be
considered prior to approval of this
plan.
Authority
The authority for this action is section
4(f) of the Endangered Species Act, 16
U.S.C. 1533 (f).
Dated: May 11, 2005.
David J. Wesley,
Acting Regional Director, Region 1, U.S. Fish
and Wildlife Service.
[FR Doc. 05–16833 Filed 8–23–05; 8:45 am]
BILLING CODE 4310–55–P
49669
If BLM receives a protest against this
survey, as shown on the plat, prior to
the date of official filing, we will stay
the filing pending our consideration of
the protest.
We will not officially file the plat
until the day after we have accepted or
dismissed all protests and they have
become final, including decisions on
appeals.
Dated: August 18, 2005.
Stephen D. Douglas,
Chief Cadastral Surveyor.
[FR Doc. 05–16815 Filed 8–23–05; 8:45 am]
BILLING CODE 4310–GJ–P
DEPARTMENT OF THE INTERIOR
Minerals Management Service
Request for Comments on the
Preparation of a New 5-Year Outer
Continental Shelf (OCS) Oil and Gas
Leasing Program for 2007–2012; and
on the Intent To Prepare an
Environmental Impact Statement (EIS)
for the Proposed 5-Year Program
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
[ES–960–1910–BJ, ES–053598, Group 22,
Maine]
Survey Plat Filing; Maine
AGENCY: Bureau of Land Management,
DOI.
ACTION: Notice of filing of plat of survey;
Maine.
SUMMARY: The Bureau of Land
Management (BLM) will file the plat of
survey of the lands described below in
the BLM-Eastern States, Springfield,
Virginia, 30 calendar days from the date
of publication in the Federal Register.
FOR FURTHER INFORMATION CONTACT:
Bureau of Land Management, 7450
Boston Boulevard, Springfield, Virginia
22153. Attn: Cadastral Survey.
SUPPLEMENTARY INFORMATION: This
survey was requested by the Bureau of
Indian Affairs.
The lands we surveyed are:
Township 1, Range 6, East of the West
Line of the State.
The plat of the dependent resurvey
and survey of the boundaries of the land
held in trust by the United States, for
the Penobscot Indian Nation, in
Township 1, Range 6, West of the East
Line of the State, (T. 1, R. 6, W.E.L.S.),
Penobscot County, Maine, was accepted
August 18, 2005. We will place a copy
of the plat we described in the open
files. It will be available to the public as
a matter of information.
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SUMMARY: Section 18 of the OCS Lands
Act (43 U.S.C. 1344) requires the
Department of the Interior to solicit
information from interested and affected
parties during the preparation of a 5year OCS oil and gas leasing program.
The current 5-year program covers the
period July 2002 to July 2007. The
Department’s MMS intends to prepare a
new 5-year program for July 2007 to July
2012 to succeed the current one.
Section 18 requires completion of a
lengthy, multi-step process of public
consultation and analysis before the
Secretary of the Interior may approve a
new 5-year program. The section 18
process includes the following required
steps: This initial solicitation of
comments; development of a draft
proposed program, a proposed program,
and a proposed final program; and
Secretarial approval. The MMS will also
prepare an EIS that analyzes the
alternatives considered for the new 5year program. This notice announces
the start of the EIS preparation process.
The MMS will consider comments
received in response to this notice in
developing the draft proposed program
and in determining the scope of the EIS.
The public will have additional
opportunities to comment on the draft
proposed program, the draft EIS, and the
proposed program.
DATES: The MMS must receive all
comments and information by October
11, 2005.
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Federal Register / Vol. 70, No. 163 / Wednesday, August 24, 2005 / Notices
Public Comment Procedure
The MMS will accept comments in
one of two formats: By mail or our
Internet commenting system. Please
submit your comments using only one
of these formats, and include full names
and addresses. Comments submitted by
other means may not be considered. We
will not consider anonymous
comments, and we will make available
for inspection in their entirety all
comments submitted by organizations
and businesses or by individuals
identifying themselves as
representatives of organizations and
businesses.
Our practice is to make comments,
including the names and home
addresses of respondents, available for
public review. An individual
commenter may ask that we withhold
his or her name, home address, or both
from the public record, and we will
honor such a request to the extent
allowable by law. If you submit
comments and wish us to withhold such
information, you must so state
prominently at the beginning of your
submission.
ADDRESSES: Mail comments and
information to: Ms. Renee Orr, 5-Year
Program Manager, Minerals
Management Service (MS–4010), Room
3120, 381 Elden Street, Herndon,
Virginia 20170. Please label your
comments and the packaging in which
they are submitted according to the
subject matter. Mark those pertaining to
program preparation, ‘‘Comments on
Preparation of the 5-Year Program for
2007-2012’’; and mark those pertaining
to EIS preparation, ‘‘Scoping Comments
on the EIS for the 5-Year Program for
2007-2012.’’ If you submit any
privileged or proprietary information to
be treated as confidential, please mark
the envelope, ‘‘Contains Confidential
Information.’’
Internet: The MMS will accept
comments submitted to our electronic
commenting system. This system can be
accessed at https://www.mms.gov/5-year/
2007-2012main.htm. We also will
provide access to information
concerning the 5-year program and EIS,
including copies of comments we
receive in response to this notice, at the
MMS Internet Web site (https://
www.mms.gov).
FOR FURTHER INFORMATION CONTACT: Ms.
Renee Orr, 5-Year Program Manager, at
(703) 787–1215.
SUPPLEMENTARY INFORMATION: The MMS
requests comments from states; local
and tribal governments; American
Indian and Native Alaskan
organizations; Federal agencies;
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environmental and fish and wildlife
organizations; the oil and gas industry;
other interested organizations; and other
parties to assist in the preparation of a
5-year OCS oil and gas leasing program
for 2007–2012, and applicable EIS.
MMS is seeking a wide range of
information, including marine
productivity and environmental
sensitivity. The 5-year program enables
the Federal Government, states,
industry, and other interested parties to
plan for steps proposed to lead to OCS
oil and gas lease sales. The Department
will make a decision on whether to
proceed with a specific lease sale on the
schedule, only after meeting all of the
applicable requirements of the OCS
Lands Act, the National Environmental
Policy Act (NEPA), and other statutes.
Section 18 of the OCS Lands Act
requires that the Secretary consider
national energy needs in formulating a
leasing program. The following
overview of today’s energy situation
provides the context in which to
consider responses to this Request for
Comments. One measure of how energy
markets compare over different time
periods is the relative prices that
consumers can expect to pay. In the year
2000, when the Request for Comments
for the current 5-Year Program (2002–
2007) was issued, oil prices averaged
$26.72 per barrel and natural gas prices
averaged $3.68 per thousand cubic feet
(mcf). Prices have generally shown an
upward trend, sometimes a steep one.
Between 1999 and 2000, the price of
natural gas peaked temporarily for an
increase of 68 percent. In 2004, those
prices averaged $36.77 for a barrel of oil
and $5.49 per mcf of gas, and continued
to increase in the first three months of
2005, to an average of $43.21 for a barrel
of oil and $5.70 per mcf of gas (Energy
Information Administration, June 2005
Monthly Energy Review). The Energy
Information Administration (EIA), in its
Annual Energy Outlook 2005, projected
that annual oil price levels will reach
$52 per barrel and natural gas prices
will reach $8.20 per mcf in 2025. These
prices have already been exceeded.
Energy prices are a reflection of supply
and demand. The recent increase in oil
and natural gas prices resulted from
growing U.S. and global demand for
these products that has not been
matched by an equivalent increase in
available supplies.
According to EIA’s Annual Energy
Outlook 2005 (reference case), over the
next 20 years, U.S. demand for energy
is expected to grow at an annual rate of
1.4 percent. This growth projection
incorporates continued gains in energy
efficiency and movement away from
energy-intensive manufacturing to
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service industries. Despite a continuing
emphasis on conservation and
expanding renewable sources of energy,
petroleum products and natural gas are
projected to account for almost 65
percent of domestic energy
consumption in 2025, a slightly larger
share than today.
United States petroleum demand is
expected to grow from 20 million
barrels per day in 2003 to 27.9 million
barrels per day in 2025. In 2003,
domestic production (crude oil and
natural gas plant liquids) totaled about
7.40 million barrels per day and net
petroleum imports of crude oil and
petroleum products amounted to 11.23
million barrels per day (or 56 percent of
total supply). Today’s domestic
production is down slightly (to about
7.31 million barrels per day) and net
imports have increased to about 58
percent of supply. An even larger share
of petroleum is projected to come from
overseas in future years. Although
domestic production is expected to
increase through the end of this
decade—primarily due to deep water
Gulf of Mexico production—it is
expected to fall thereafter, down by
almost 1 million barrels per day by the
end of the forecast period. At that time,
in 2025, imports are expected to account
for 68 percent of petroleum demand.
While we will need to buy greater
supplies of oil from other countries in
the future, we will be facing greater
competition for those supplies. The
strongest growth in energy consumption
will come from developing nations,
particularly China, India and the rest of
developing Asia, which are expected to
experience strong economic growth and
rising living standards. As a result, the
nations of developing Asia will account
for 40 percent of the world’s growth in
energy demand.
The U.S. natural gas consumption is
expected to grow from 22 trillion cubic
feet (tcf) in 2003 to almost 31 tcf in
2025. Domestic production, however,
will grow only from 19.1 tcf to 21.8 tcf,
meeting only about 30 percent of
demand growth. In the past, any
difference between the growth in
demand and the growth in domestic
production was predominantly met by
imports of natural gas from Canada.
However, Canada’s National Energy
Board has concluded that their future
production will not support increased
U.S. imports, but will instead be used to
support Canada’s energy needs. Most
additional supplies will need to come
from Alaskan natural gas and from
imports of liquefied natural gas. EIA
notes, ‘‘A key issue for U.S. energy
markets is whether the investments and
regulatory approvals needed to make
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those natural gas supplies available will
be forthcoming, and what the
ramifications will be if they are not’’
(EIA, AEO 2005, p.2).
Meeting the United States’ and the
world’s growing demand for oil and
natural gas will require substantial
investment in finding and developing
new sources of supply. In its
International Energy Outlook 2004, EIA
stated that the projected growth in
worldwide oil use would require an
increment to global production capacity
of more than 44 million barrels per day
over current levels. Daniel Yergin,
Chairman of Cambridge Energy
Research Associates (CERA), stated that,
‘‘[W]ith as much as a 60 percent
increase in worldwide oil production
needed to meet growing energy demand
in the next 25 years, and an expected
doubling in natural gas demand, $4 to
$6 trillion in new exploration and
production investment will be required’’
(CERA Press Release, February 23,
2005). The OCS leasing program
provides one potential avenue for such
investment. Your comments will help
determine the plan for leasing activities
during 2007–2012, and, consequently,
the ability of the OCS program to meet
the Nation’s energy needs in the years
beyond.
OCS Planning Areas To Be Considered
and Analyzed
Section 18 of the OCS Lands Act
requires that the 5-year schedule of
lease sales be based upon a comparative
analysis of the oil and gas-bearing
regions of the OCS. Purely for
administrative planning purposes, MMS
has created 26 planning areas, which are
depicted on Figures 1 and 2. The
boundaries between planning areas
were administratively created and are
not specified in law or regulation. Note
that precise marine boundaries between
the United States and nearby or adjacent
nations have not been determined in all
cases. The depicted maritime
boundaries and limits, as well as
divisions between planning areas,
where shown, are for planning and
administrative purposes only. These
limits do not affect or prejudice in any
manner the position of the United
States, or its individual States, with
respect to the nature or extent of
internal waters or of sovereign rights or
jurisdiction.
Many planning areas currently are
subject to a 1998 presidential
withdrawal from leasing through June
30, 2012, under the authority of Section
12 of the OCS Lands Act (43 U.S.C.
1341). The presidential withdrawal bars
leasing activities. These areas include
all National Marine Sanctuaries and the
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following planning areas: North
Aleutian Basin (Bristol Bay, Alaska);
Washington-Oregon; Northern, Central,
and Southern California; South, Mid-,
and North Atlantic; and Eastern Gulf of
Mexico, except for a portion located off
Alabama and another one more than 100
miles off Florida initially proposed in
Lease Sale 181 in 2001.
In addition, most of those areas have
been closed to leasing pursuant to
congressional moratoria in annual
appropriations statutes since the 1980’s,
and as recently as Public Law 109–54
signed into law on August 2, 2005. The
first congressional moratorium was
enacted in Fiscal Year (FY) 1982,
prohibiting leasing in the Central and
Northern California Planning Areas. The
Southern California, North Atlantic, and
part of the Eastern Gulf of Mexico (south
of 26° N latitude) Planning Areas were
first subject to moratoria in FY 1984.
The North Aleutian Basin and the MidAtlantic Planning Areas were added in
FY 1990. The Washington-Oregon
Planning Area and the Florida
Panhandle area of the Eastern Gulf of
Mexico Planning Area were added in FY
1991. The South Atlantic Planning Area
was added in FY 1992. With slight
adjustments in some areas, all these
areas have been subject to yearly
moratoria, with the exception of the
North Aleutian Basin, which has not
been included since FY 2004. See
Figures 3 and 4 for maps showing the
areas currently subject to presidential
withdrawal and/or congressional
moratoria. The Administration has
repeatedly stated its support for the
existing moratoria, based upon
deference to the wishes of the states to
determine what activities take place off
their coasts.
Given that the presidential
withdrawals bar the conduct of lease
sales in those areas for the entire 5-year
planning period until 2012, and that
most of the areas have been subject to
congressional moratoria, a full analysis
of these areas under section 18 of the
OCS Lands Act may not be necessary.
However, in the Energy Policy Act of
2005, Congress required the Secretary of
the Interior to conduct a comprehensive
inventory of oil and gas resources
beneath all the waters of the OCS, taking
into account considerations such as the
potential for discovery of oil and gas
and state laws and policies. Therefore,
consistent with the purposes of both the
OCS Lands Act and the recently enacted
Energy Policy Act of 2005, MMS is
soliciting information from governors,
local officials, and other interested
parties concerning all areas of the OCS.
As set forth in more detail later in this
notice, the information needed is wide-
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49671
ranging, including other uses of the sea,
marine productivity, and environmental
sensitivity. Accordingly, this notice
provides an opportunity for a governor
or anyone else to comment on any area
of the OCS, whether to reaffirm
longstanding positions or to bring other
information or positions to the
Secretary’s attention. Such information
is therefore solicited and will be
considered in light of the factors
specified by section 18 of the OCS
Lands Act, discussed later in this notice
and in light of existing moratoria. Based
upon the analysis of these factors, the
Secretary will decide which areas to
exclude from the draft proposed
program. Pursuant to section 18,
excluded areas will not require any
further analysis. The Secretary also
seeks comments on whether the existing
presidential withdrawals or
Congressional moratoria should be
modified or expanded to include other
areas in the OCS. Finally, the Secretary
has no intention of offering for leasing
areas in the Eastern Gulf of Mexico
Planning Area within 100 miles of the
coast of the State of Florida.
Section 18
As previously noted, the program
preparation process will follow all the
procedural steps required by section 18
of the OCS Lands Act. This notice
solicits comments early in the
preparation process pursuant to section
18(c)(1) of that Act. The MMS will
prepare a draft proposed program based
on consideration of the comments we
receive and analysis of the principles
and factors specified in section 18. The
draft proposed program will present for
review and comment a preliminary
schedule of lease sales and potential
alternatives.
Section 18 of the OCS Lands Act lists
the factors to be considered—the
economic, social, and environmental
values of all of the resources of the OCS
and the potential impact of oil and gas
exploration on the environment.
Specific factors which must be analyzed
and considered in deciding where and
when to lease include: (1) Existing
information on the geographical,
geological, and ecological characteristics
of such regions; (2) equitable sharing of
developmental benefits and
environmental risks among the various
regions; (3) location of such regions and
regional and national energy markets;
(4) location with respect to other current
and anticipated uses of the sea and
seabed; (5) expressed industry interest;
(6) laws, goals, and policies of affected
states specifically identified by
governors; (7) relative environmental
sensitivity and marine productivity of
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different areas of the OCS; and (8)
environmental and predictive
information for different areas of the
OCS. The OCS Lands Act requires the
Secretary to obtain a proper balance
among the potentials for environmental
damage, the discovery of oil and gas,
and adverse impact on the coastal zone,
using cost-benefit analysis.
Types of Information Requested
The MMS invites comments from
anyone who would like to submit
information for us to consider in
determining the appropriate size,
timing, and location of OCS leasing for
the 5-year period July 2007 through June
2012. The types of information we seek
are described below, using general and
specific headings. Regardless of these
headings, all respondents are welcome
to comment on any aspect of program
preparation and to submit any type of
pertinent information.
General
The MMS would like to receive
comments and suggestions of national
or regional application that would be
useful in formulating the new 5-year
program. The types of information that
would be most useful to us in
conducting the analysis pursuant to
section 18 of the OCS Lands Act relate
to the following factors:
(1) National energy needs for the
period relevant to the new program (in
particular for this program, the role of
OCS leasing in achieving national
energy policy goals, including its
potential for contributing to increased
domestic natural gas supplies); the
economic, social, and environmental
values of the renewable and
nonrenewable resources contained in
the OCS; and the potential impact of oil
and gas exploration on other resource
values of the OCS and the marine,
coastal, and human environments;
(2) Geographical, geological, and
ecological characteristics of the
planning areas of the OCS and near
shore and coastal environments;
(3) Equitable sharing of
developmental benefits and
environmental risks among the various
planning areas;
(4) Location of planning areas with
respect to, and the relative needs of,
regional and national energy markets;
(5) Other uses of the sea and seabed,
including fisheries, navigation, military
activities, existing or proposed sealanes,
potential sites of deepwater ports
(including liquefied natural gas
facilities), potential offshore wind and
wave energy sites, and other anticipated
uses of OCS resources and locations;
and any information that could be
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useful for future rulemaking concerning
offshore alternative energy as authorized
by the Energy Policy Act of 2005;
(6) Relative environmental sensitivity
and marine productivity of the different
planning areas and/or specific section of
a given planning area of the OCS;
(7) Environmental and predictive
information pertaining to offshore and
coastal areas potentially affected by OCS
development (including, but not limited
to, socio-cultural and archaeological
information); and
(8) Methods and procedures for
assuring the receipt of fair market value
for lands leased.
The MMS also invites commenters to
respond to the following questions:
(i) What do you think is the proper
role of the OCS as part of a
comprehensive national energy policy?
How should the 5-year program for
2007–2012 be structured to fulfill this
role?
(ii) Since recent studies have
projected shortfalls in meeting energy
needs, particularly natural gas, how
should such needs be balanced with the
laws, goals, and policies influencing the
management of the OCS? How should
long-term planning address the current
energy supply situation?
(iii) Although OCS oil and gas leasing
is typically conducted through an
extensive, long-established process, are
there alternative ways to ensure
appropriate consultation and to
streamline our leasing procedures?
Should the OCS Lands Act be amended
to allow changes in the 5-year plan
without starting the process all over
again in cases of acute supply or
demand shift affecting national
security? How might we best meet the
purpose of the OCS Lands Act ‘‘to
insure that the extent of oil and gas
resources of the outer Continental Shelf
is assessed at the earliest practicable
time’’?
(iv) If new areas are leased for
exploration and potential development,
what short-term and long-term impacts
do you foresee for the economies of
coastal communities?
(v) How should ecological
considerations be weighed against
national and local economic benefits, if
new areas are considered for oil and gas
leasing?
Specific
Inventory Provision of Energy Policy
Act of 2005
Section 357 of the Energy Policy Act
of 2005 directs the Secretary to
‘‘conduct an inventory and analysis of
oil and natural gas resources beneath all
of the waters’’ of the OCS. The statute
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requires that the analysis ‘‘identify and
explain how legislative, regulatory, and
administrative programs and processes
restrict or impede development’’ of OCS
resources and ‘‘the extent that they
affect domestic supply.’’ Comments are
solicited on how legislative, regulatory,
and administrative programs or
processes of the Federal Government or
coastal states, as well as local zoning
restrictions on onshore processing
facilities and pipeline landings, restrict
domestic energy production from the
OCS. Further, what recommendations
should be considered to ensure that
domestic resource potential is
adequately assessed?
The inventory and analysis must use
available data on oil and gas resources
including those data offshore Mexico
and Canada that can aid in establishing
trends of hydrocarbon accumulations in
the U.S. areas of the OCS. The Energy
Policy Act of 2005 also authorizes use
of available technologies, except
drilling, to establish a comprehensive
inventory, specifically 2–D and 3–D
seismic surveys. MMS seeks comments
and information regarding availability of
these technologies to obtain more
precise resource estimates.
Gas-Only Leasing
MMS also seeks input on ways the
leasing program can be designed to
promote increased production of natural
gas from the OCS. Natural gas has been
identified as the environmentally
preferred fossil fuel and currently
accounts for at least 25 percent of the
Nation’s fuel needs. It is expected to
remain a critical component of the
Nation’s energy demand well into the
21st century. MMS is interested in
comments on the possibility of ‘‘gasonly’’ leasing, particularly in light of the
dramatic rise in natural gas costs. There
may be some areas very sensitive to
potential accidental oil spills that may
be suited to gas-only production, since
natural gas would not pollute
neighboring land areas in case of the
loss of control of a well. It is recognized
that the current law covers ‘‘oil and gas’’
leasing, and that the OCS Lands Act
may need to be amended to allow
leasing of the separate commodities.
MMS requests any comments, but
especially on the following questions:
(1) Can gas-only production be
realistically anticipated?
(2) Where on the OCS should such
leases be offered?
(3) What technological obstacles may
exist?
(4) What steps would have to be taken
if significant amounts of oil are
encountered? Would the well have to be
capped?
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(5) What steps would have to be taken
if condensate is encountered?
(6) How would gas-only production
affect the OCS Lands Act requirement
for ‘‘prevention of waste and
conservation of the natural resources’’?
Alaska Specific
In several areas offshore Alaska, the
current program includes a ‘‘special’’
sales process to provide the Secretary
flexibility to offer such areas if the
interest is sufficient. Should the
‘‘special’’ lease sale process used in the
current 5-year program be continued or
amended to reflect regional needs?
Restricted Joint Bidders
It has been suggested that the inability
of the larger oil and gas companies to
submit joint bids may be an important
factor in the low interest in some Alaska
OCS lease sales, given the lack of
infrastructure and the cost and risk of
operating in frontier areas. Should MMS
consider dropping the current joint
bidding restrictions for such companies
in certain areas of the Alaska offshore?
If so, where and why?
Affected Coastal States
As specified in section 18(a)(2)(F) of
the OCS Lands Act, the MMS requests
the governors of affected states to
identify state laws, goals, and policies
relevant to OCS oil and gas. A letter
soliciting such information has been
sent to those governors. Pursuant to
section 18(f)(5) of the OCS Lands Act
and implementing regulations at 30 CFR
256.20, MMS requests information
concerning the relationship between
OCS oil and gas activity and the states’
coastal zone management programs that
are being developed or administered
under the Coastal Zone Management
Act. We also request the affected states
to submit information concerning
environmental risk and potential for
damage to coastal and marine resources
associated with development of the
OCS, information related to other uses
of the sea, and any information that is
relevant to equitable sharing of
developmental benefits and
environmental risks associated with
OCS oil and gas activity.
Oil and Gas Industry
As specified in section 18(a)(2)(E) of
the OCS Lands Act, the MMS requests
oil and gas industry respondents to
provide information indicating interest
in the opportunity to lease and develop
additional OCS oil and gas resources.
Respondents should base this
information on their expectations as of
2007. For each area in which a company
is interested, please submit information
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concerning unleased hydrocarbon
potential, future oil and gas price
expectations, and other relevant
information that the company uses in
making OCS oil and gas leasing
decisions. The MMS requests industry
respondents to provide additional
information as specified below. On
request such information will be treated
confidentially, as explained further
below:
(1) Indicate the OCS planning area(s)
where the company would be interested
in acquiring oil and gas leases during
the period 2007–2012. If more than one
planning area is of interest, rank the
areas in order of preference.
(2) Indicate the number and timing of
lease sales in the period 2007–2012 that
would be appropriate for each planning
area. If only one lease sale in a planning
area is appropriate, indicate whether
that area should be considered for
leasing early or late in the 5-year
program schedule. If more than one
lease sale in a planning area is
suggested, indicate the preferred
interval between lease sales.
Section 18(g) of the OCS Lands Act
authorizes confidential treatment of
privileged or proprietary information. In
order to protect the confidentiality of
privileged or proprietary information,
include such information as an
attachment to other comments
submitted so that there is no ambiguity
about what portions of the comments
are confidential or proprietary. On
request, the MMS will treat the
privileged or proprietary information
that is attached to a response as
confidential from the time of its receipt
until 5 years after approval of the 2007–
2012 leasing program, subject to the
standards of the Freedom of Information
Act. However, the MMS will not treat as
confidential any aggregate summaries of
such information, the names of
respondents, or comments not
containing such information. As noted
above, there should be affixed the label
‘‘Contains Confidential Information’’ on
any envelope containing privileged or
proprietary information that a
respondent wishes to be treated as
confidential.
Department of Commerce
Pursuant to section 18(f)(5) of the OCS
Lands Act and implementing
regulations at 30 CFR 256.20, the MMS
requests information concerning
relationships between affected states’
coastal zone management programs and
OCS oil and gas activities. We have sent
a letter to the Secretary of Commerce
soliciting such information.
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49673
Department of Energy
Pursuant to implementing regulations
at 30 CFR 256.16, the MMS requests
information concerning regional and
national energy markets, OCS
production goals, and oil and gas
transportation networks. We have sent a
letter to the Secretary of Energy
soliciting such information.
EIS Preparation
Pursuant to section 102(2)(C) of
NEPA, the MMS intends to prepare an
EIS for the new 5-year OCS oil and gas
leasing program for 2007–2012. This
notice starts the scoping process for the
EIS under 40 CFR 1501.7, and solicits
information regarding issues and
alternatives that should be evaluated in
the EIS. The EIS will address the
potential impacts of the adoption of the
proposed 5-year program. The MMS
requests respondents to focus their
comments on the significant
environmental issues attendant to OCS
oil and gas leasing and development
and on alternative options for the size,
timing, and location of lease sales that
should be evaluated in the EIS. Please
label and submit comments as indicated
above. The MMS will consider these
comments for the purposes of
determining the scope of the EIS we
plan to prepare and the schedule for
scoping. For further information about
preparation of the EIS, please contact
Mr. Jim Bennett, Chief, Branch of
Environmental Assessment at the
Minerals Management Service, 381
Elden Street, MS 4042, Herndon,
Virginia 20170, telephone (703) 787–
1660.
Cooperating Agency
The Department of the Interior invites
other Federal agencies and state, tribal,
and local governments to consider
becoming cooperating agencies in the
preparation of the EIS. We invite
qualified government entities to inquire
about cooperating agency status for the
EIS for the proposed 5-year program. Per
guidelines from the Council of
Environmental Quality (CEQ), qualified
agencies and governments are those
with ‘‘jurisdiction by law or special
expertise.’’ Potential cooperating
agencies should consider their authority
and capacity to assume the
responsibilities of a cooperating agency
and to remember that an agency’s role
in the environmental analysis neither
enlarges nor diminishes the final
decision making authority of any other
agency involved in the NEPA process.
Upon request, MMS will provide
potential cooperating agencies with a
written summary of ground rules for
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Federal Register / Vol. 70, No. 163 / Wednesday, August 24, 2005 / Notices
cooperating agencies, including time
schedules and critical action dates,
milestones, responsibilities, scope and
detail of cooperating agencies’
contributions, and availability of predecisional information. MMS
anticipates this summary will form the
basis for a Memorandum of
Understanding between the MMS and
each cooperating agency. Agencies
should also consider the ‘‘Factors for
Determining Cooperating Agency
Status’’ in Attachment 1 to CEQ’s
January 30, 2002, Memorandum for the
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Heads of Federal Agencies: Cooperating
Agencies in Implementing the
Procedural Requirements of the
National Environmental Policy Act. A
copy of this document is available at:
https://ceq.eh.doe.gov/nepa/regs/
cooperating/
cooperatingagenciesmemorandum.html
and https://ceq.eh.doe.gov/nepa/regs/
cooperating/
cooperatingagencymemofactors.html.
The MMS, as the lead agency, will not
be providing financial assistance to
cooperating agencies. Even if an
organization is not a cooperating
PO 00000
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agency, opportunities will exist to
provide information and comments to
MMS during the normal public input
phases of the NEPA/EIS process. MMS
will also consult with tribal
governments on a government-togovernment basis. If further information
about cooperating agencies is needed,
please contact Mr. Jim Bennett, at (703)
787–1660.
Dated: August 22, 2005.
R.M. ‘‘Johnnie’’ Burton,
Director, Minerals Management Service.
BILLING CODE 4310–MR–P
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49678
Federal Register / Vol. 70, No. 163 / Wednesday, August 24, 2005 / Notices
[FR Doc. 05–16905 Filed 8–22–05; 12:07 pm]
BILLING CODE 4310–MR–C
DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
Central Valley Project Improvement
Act, Criteria for Evaluating Water
Conservation Plans
AGENCY: Bureau of Reclamation,
Interior.
ACTION: Notice.
SUMMARY: To meet the requirements of
the Central Valley Project Improvement
Act of 1992 (CVPIA) and the
Reclamation Reform Act of 1982, the
Bureau of Reclamation (Reclamation)
developed and published the Criteria for
Evaluating Water Management Plans
(Criteria). Note: For the purpose of this
announcement, Water Management
Plans are considered the same as Water
Conservation Plans (Plans). The CVPIA
requires Reclamation to evaluate, and
revise if necessary, the Criteria every 3
years. Reclamation is publishing this
notice to allow the public to comment
on the revised 2005 draft Criteria. Public
comment on the revised Criteria is
invited at this time. The draft revision
is available for review and comment. A
copy of the draft revision can be found
at the following Web site: https://
www.usbr.gov/mp/watershare/
documents/2005DraftCriteria.pdf.
A copy of the draft revision can be
obtained by contacting persons at the
address below. After the review period,
if no significant changes are made based
on comments from the public, the
Criteria will be final. After the Criteria
is final, it will be used to evaluate Plans.
DATES: All public comments must be
received by September 30, 2005.
ADDRESSES: Please mail comments to
Jerry Townsend, Bureau of Reclamation,
2800 Cottage Way, Sacramento,
California 95825, or contact at 916–978–
5223 (TDD 978–5608), or e-mail at
gtownsend@mp.usbr.gov.
FOR FURTHER INFORMATION CONTACT: To
be placed on a mailing list for any
subsequent information, please contact
Leslie Barbre or Jerry Townsend at the
e-mail address or telephone number
above.
SUPPLEMENTARY INFORMATION: We are
inviting the public to comment on the
revision of the Criteria. Section 3405(e)
of the CVPIA (Title 34 Pub. L. 102–575),
requires the ‘‘Secretary of the Interior to
establish and administer an office on
Central Valley Project water
conservation best management practices
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that shall * * * develop Criteria for
evaluating the adequacy of all water
conservation plans developed by project
contractors, including those Plans
required by Section 210 of the
Reclamation Reform Act of 1982.’’ Also,
according to Section 3405(e)(1), these
Criteria must be developed ‘‘* * * with
the purpose of promoting the highest
level of water use efficiency reasonably
achievable by project contractors using
best available cost-effective technology
and best management practices.’’ The
Criteria have the following applicability
statements:
Who Must Use These Criteria. These
Criteria apply to Plans submitted to
Reclamation as required by applicable
Central Valley Project water delivery
contract or any contract that specifically
invokes these Criteria.
Exceptions. The following are
excepted from the requirement to
prepare a Plan using these Criteria:
• All Contractors that receive only
irrigation water from any Federal
Reclamation project, and deliver said
water to less than 2,000 acres of land.
• All Contractors that receive only
municipal and industrial (urban) water
from any Federal Reclamation project,
and provide said water to less than
3,300 people.
• All Contractors that receive a
combination of irrigation and urban
water amounting to less than an annual
average of 2,000 acre-feet from any
Federal Reclamation project.
Reclamation will evaluate Plans based
on these Criteria. The CVPIA requires
Reclamation to evaluate, and revise if
necessary, the Criteria every 3 years.
The Criteria were previously revised in
1996, 1999, and 2002.
Our practice is to make comments,
including names and home addresses of
respondents, available for public
review. Individual respondents may
request that we withhold their home
address from public disclosure, which
we will honor to the extent allowable by
law. There also may be circumstances in
which we would withhold a
respondent’s identity from public
disclosure, as allowable by law. If you
wish us to withhold your name and/or
address, you must state this
prominently at the beginning of your
comment. We will make all submissions
from organizations or businesses, and
from individuals identifying themselves
as representatives or officials of
organizations or businesses, available
for public disclosure in their entirety.
For copies contact Leslie Barbre, Bureau
of Reclamation, 2800 Cottage Way,
Sacramento, California 95825, or contact
at 916–978–5232 (TDD 978–5608), or
e-mail at lbarbre@mp.usbr.gov.
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49679
Dated: July 25, 2005.
Donna E. Tegelman,
Regional Resources Manager.
[FR Doc. 05–16818 Filed 8–23–05; 8:45 am]
BILLING CODE 4210–MN–P
DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
San Luis Drainage Feature Reevaluation Draft Environmental Impact
Statement, Alameda, Contra Costa,
Fresno, Kern, Kings, Merced, San
Joaquin, San Luis Obispo, and
Stanislaus Counties, CA
AGENCY: Bureau of Reclamation,
Interior.
ACTION: Extension of public review and
comment period for the Draft
Environmental Impact Statement (EIS).
SUMMARY: The Bureau of Reclamation is
extending the public review and
comment period for the Draft EIS to
Thursday, September 1, 2005. The
notice of availability of the Draft EIS
and notice of public hearings was
published in the Federal Register on
June 2, 2005, (70 FR 32370). The public
review period was originally scheduled
to end on August 1, 2005.
DATES: Submit comments on the Draft
EIS by close of business Thursday,
September 1, 2005.
ADDRESSES: Send comments on the Draft
EIS to Ms. Claire Jacquemin, Bureau of
Reclamation, 2800 Cottage Way, MP–
700, Sacramento, CA 95825.
FOR FURTHER INFORMATION CONTACT: Mr.
Jerry Robbins, Project Manager, at 916–
978–5061, TDD 916–978–5608. The
Draft EIS is also available online at
https://www.usbr.gov/mp/nepa/
nepa_projdetails.cfm?Project_ID=61. To
request a copy of the Draft EIS please
contact Ms. Jacquemin at 916–978–
5119.
SUPPLEMENTARY INFORMATION: Our
practice is to make comments, including
names and home addresses of
respondents, available for public
review. Individual respondents may
request that we withhold their home
address from public disclosure, which
we will honor to the extent allowable by
law. There may also be circumstances in
which we would withhold a
respondent’s identity from public
disclosure, as allowable by law. If you
wish us to withhold your name and/or
address, you must state this
prominently at the beginning of your
comment. We will make all submissions
from organizations or businesses, and
from individuals identifying themselves
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]]>Agencies
[Federal Register Volume 70, Number 163 (Wednesday, August 24, 2005)]
[Notices]
[Pages 49669-49679]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-16905]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Minerals Management Service
Request for Comments on the Preparation of a New 5-Year Outer
Continental Shelf (OCS) Oil and Gas Leasing Program for 2007-2012; and
on the Intent To Prepare an Environmental Impact Statement (EIS) for
the Proposed 5-Year Program
SUMMARY: Section 18 of the OCS Lands Act (43 U.S.C. 1344) requires the
Department of the Interior to solicit information from interested and
affected parties during the preparation of a 5-year OCS oil and gas
leasing program. The current 5-year program covers the period July 2002
to July 2007. The Department's MMS intends to prepare a new 5-year
program for July 2007 to July 2012 to succeed the current one.
Section 18 requires completion of a lengthy, multi-step process of
public consultation and analysis before the Secretary of the Interior
may approve a new 5-year program. The section 18 process includes the
following required steps: This initial solicitation of comments;
development of a draft proposed program, a proposed program, and a
proposed final program; and Secretarial approval. The MMS will also
prepare an EIS that analyzes the alternatives considered for the new 5-
year program. This notice announces the start of the EIS preparation
process. The MMS will consider comments received in response to this
notice in developing the draft proposed program and in determining the
scope of the EIS. The public will have additional opportunities to
comment on the draft proposed program, the draft EIS, and the proposed
program.
DATES: The MMS must receive all comments and information by October 11,
2005.
[[Page 49670]]
Public Comment Procedure
The MMS will accept comments in one of two formats: By mail or our
Internet commenting system. Please submit your comments using only one
of these formats, and include full names and addresses. Comments
submitted by other means may not be considered. We will not consider
anonymous comments, and we will make available for inspection in their
entirety all comments submitted by organizations and businesses or by
individuals identifying themselves as representatives of organizations
and businesses.
Our practice is to make comments, including the names and home
addresses of respondents, available for public review. An individual
commenter may ask that we withhold his or her name, home address, or
both from the public record, and we will honor such a request to the
extent allowable by law. If you submit comments and wish us to withhold
such information, you must so state prominently at the beginning of
your submission.
ADDRESSES: Mail comments and information to: Ms. Renee Orr, 5-Year
Program Manager, Minerals Management Service (MS-4010), Room 3120, 381
Elden Street, Herndon, Virginia 20170. Please label your comments and
the packaging in which they are submitted according to the subject
matter. Mark those pertaining to program preparation, ``Comments on
Preparation of the 5-Year Program for 2007-2012''; and mark those
pertaining to EIS preparation, ``Scoping Comments on the EIS for the 5-
Year Program for 2007-2012.'' If you submit any privileged or
proprietary information to be treated as confidential, please mark the
envelope, ``Contains Confidential Information.''
Internet: The MMS will accept comments submitted to our electronic
commenting system. This system can be accessed at https://www.mms.gov/5-
year/2007-2012main.htm. We also will provide access to information
concerning the 5-year program and EIS, including copies of comments we
receive in response to this notice, at the MMS Internet Web site
(https://www.mms.gov).
FOR FURTHER INFORMATION CONTACT: Ms. Renee Orr, 5-Year Program Manager,
at (703) 787-1215.
SUPPLEMENTARY INFORMATION: The MMS requests comments from states; local
and tribal governments; American Indian and Native Alaskan
organizations; Federal agencies; environmental and fish and wildlife
organizations; the oil and gas industry; other interested
organizations; and other parties to assist in the preparation of a 5-
year OCS oil and gas leasing program for 2007-2012, and applicable EIS.
MMS is seeking a wide range of information, including marine
productivity and environmental sensitivity. The 5-year program enables
the Federal Government, states, industry, and other interested parties
to plan for steps proposed to lead to OCS oil and gas lease sales. The
Department will make a decision on whether to proceed with a specific
lease sale on the schedule, only after meeting all of the applicable
requirements of the OCS Lands Act, the National Environmental Policy
Act (NEPA), and other statutes.
Section 18 of the OCS Lands Act requires that the Secretary
consider national energy needs in formulating a leasing program. The
following overview of today's energy situation provides the context in
which to consider responses to this Request for Comments. One measure
of how energy markets compare over different time periods is the
relative prices that consumers can expect to pay. In the year 2000,
when the Request for Comments for the current 5-Year Program (2002-
2007) was issued, oil prices averaged $26.72 per barrel and natural gas
prices averaged $3.68 per thousand cubic feet (mcf). Prices have
generally shown an upward trend, sometimes a steep one. Between 1999
and 2000, the price of natural gas peaked temporarily for an increase
of 68 percent. In 2004, those prices averaged $36.77 for a barrel of
oil and $5.49 per mcf of gas, and continued to increase in the first
three months of 2005, to an average of $43.21 for a barrel of oil and
$5.70 per mcf of gas (Energy Information Administration, June 2005
Monthly Energy Review). The Energy Information Administration (EIA), in
its Annual Energy Outlook 2005, projected that annual oil price levels
will reach $52 per barrel and natural gas prices will reach $8.20 per
mcf in 2025. These prices have already been exceeded. Energy prices are
a reflection of supply and demand. The recent increase in oil and
natural gas prices resulted from growing U.S. and global demand for
these products that has not been matched by an equivalent increase in
available supplies.
According to EIA's Annual Energy Outlook 2005 (reference case),
over the next 20 years, U.S. demand for energy is expected to grow at
an annual rate of 1.4 percent. This growth projection incorporates
continued gains in energy efficiency and movement away from energy-
intensive manufacturing to service industries. Despite a continuing
emphasis on conservation and expanding renewable sources of energy,
petroleum products and natural gas are projected to account for almost
65 percent of domestic energy consumption in 2025, a slightly larger
share than today.
United States petroleum demand is expected to grow from 20 million
barrels per day in 2003 to 27.9 million barrels per day in 2025. In
2003, domestic production (crude oil and natural gas plant liquids)
totaled about 7.40 million barrels per day and net petroleum imports of
crude oil and petroleum products amounted to 11.23 million barrels per
day (or 56 percent of total supply). Today's domestic production is
down slightly (to about 7.31 million barrels per day) and net imports
have increased to about 58 percent of supply. An even larger share of
petroleum is projected to come from overseas in future years. Although
domestic production is expected to increase through the end of this
decade--primarily due to deep water Gulf of Mexico production--it is
expected to fall thereafter, down by almost 1 million barrels per day
by the end of the forecast period. At that time, in 2025, imports are
expected to account for 68 percent of petroleum demand.
While we will need to buy greater supplies of oil from other
countries in the future, we will be facing greater competition for
those supplies. The strongest growth in energy consumption will come
from developing nations, particularly China, India and the rest of
developing Asia, which are expected to experience strong economic
growth and rising living standards. As a result, the nations of
developing Asia will account for 40 percent of the world's growth in
energy demand.
The U.S. natural gas consumption is expected to grow from 22
trillion cubic feet (tcf) in 2003 to almost 31 tcf in 2025. Domestic
production, however, will grow only from 19.1 tcf to 21.8 tcf, meeting
only about 30 percent of demand growth. In the past, any difference
between the growth in demand and the growth in domestic production was
predominantly met by imports of natural gas from Canada. However,
Canada's National Energy Board has concluded that their future
production will not support increased U.S. imports, but will instead be
used to support Canada's energy needs. Most additional supplies will
need to come from Alaskan natural gas and from imports of liquefied
natural gas. EIA notes, ``A key issue for U.S. energy markets is
whether the investments and regulatory approvals needed to make
[[Page 49671]]
those natural gas supplies available will be forthcoming, and what the
ramifications will be if they are not'' (EIA, AEO 2005, p.2).
Meeting the United States' and the world's growing demand for oil
and natural gas will require substantial investment in finding and
developing new sources of supply. In its International Energy Outlook
2004, EIA stated that the projected growth in worldwide oil use would
require an increment to global production capacity of more than 44
million barrels per day over current levels. Daniel Yergin, Chairman of
Cambridge Energy Research Associates (CERA), stated that, ``[W]ith as
much as a 60 percent increase in worldwide oil production needed to
meet growing energy demand in the next 25 years, and an expected
doubling in natural gas demand, $4 to $6 trillion in new exploration
and production investment will be required'' (CERA Press Release,
February 23, 2005). The OCS leasing program provides one potential
avenue for such investment. Your comments will help determine the plan
for leasing activities during 2007-2012, and, consequently, the ability
of the OCS program to meet the Nation's energy needs in the years
beyond.
OCS Planning Areas To Be Considered and Analyzed
Section 18 of the OCS Lands Act requires that the 5-year schedule
of lease sales be based upon a comparative analysis of the oil and gas-
bearing regions of the OCS. Purely for administrative planning
purposes, MMS has created 26 planning areas, which are depicted on
Figures 1 and 2. The boundaries between planning areas were
administratively created and are not specified in law or regulation.
Note that precise marine boundaries between the United States and
nearby or adjacent nations have not been determined in all cases. The
depicted maritime boundaries and limits, as well as divisions between
planning areas, where shown, are for planning and administrative
purposes only. These limits do not affect or prejudice in any manner
the position of the United States, or its individual States, with
respect to the nature or extent of internal waters or of sovereign
rights or jurisdiction.
Many planning areas currently are subject to a 1998 presidential
withdrawal from leasing through June 30, 2012, under the authority of
Section 12 of the OCS Lands Act (43 U.S.C. 1341). The presidential
withdrawal bars leasing activities. These areas include all National
Marine Sanctuaries and the following planning areas: North Aleutian
Basin (Bristol Bay, Alaska); Washington-Oregon; Northern, Central, and
Southern California; South, Mid-, and North Atlantic; and Eastern Gulf
of Mexico, except for a portion located off Alabama and another one
more than 100 miles off Florida initially proposed in Lease Sale 181 in
2001.
In addition, most of those areas have been closed to leasing
pursuant to congressional moratoria in annual appropriations statutes
since the 1980's, and as recently as Public Law 109-54 signed into law
on August 2, 2005. The first congressional moratorium was enacted in
Fiscal Year (FY) 1982, prohibiting leasing in the Central and Northern
California Planning Areas. The Southern California, North Atlantic, and
part of the Eastern Gulf of Mexico (south of 26[deg] N latitude)
Planning Areas were first subject to moratoria in FY 1984. The North
Aleutian Basin and the Mid-Atlantic Planning Areas were added in FY
1990. The Washington-Oregon Planning Area and the Florida Panhandle
area of the Eastern Gulf of Mexico Planning Area were added in FY 1991.
The South Atlantic Planning Area was added in FY 1992. With slight
adjustments in some areas, all these areas have been subject to yearly
moratoria, with the exception of the North Aleutian Basin, which has
not been included since FY 2004. See Figures 3 and 4 for maps showing
the areas currently subject to presidential withdrawal and/or
congressional moratoria. The Administration has repeatedly stated its
support for the existing moratoria, based upon deference to the wishes
of the states to determine what activities take place off their coasts.
Given that the presidential withdrawals bar the conduct of lease
sales in those areas for the entire 5-year planning period until 2012,
and that most of the areas have been subject to congressional
moratoria, a full analysis of these areas under section 18 of the OCS
Lands Act may not be necessary. However, in the Energy Policy Act of
2005, Congress required the Secretary of the Interior to conduct a
comprehensive inventory of oil and gas resources beneath all the waters
of the OCS, taking into account considerations such as the potential
for discovery of oil and gas and state laws and policies. Therefore,
consistent with the purposes of both the OCS Lands Act and the recently
enacted Energy Policy Act of 2005, MMS is soliciting information from
governors, local officials, and other interested parties concerning all
areas of the OCS.
As set forth in more detail later in this notice, the information
needed is wide-ranging, including other uses of the sea, marine
productivity, and environmental sensitivity. Accordingly, this notice
provides an opportunity for a governor or anyone else to comment on any
area of the OCS, whether to reaffirm longstanding positions or to bring
other information or positions to the Secretary's attention. Such
information is therefore solicited and will be considered in light of
the factors specified by section 18 of the OCS Lands Act, discussed
later in this notice and in light of existing moratoria. Based upon the
analysis of these factors, the Secretary will decide which areas to
exclude from the draft proposed program. Pursuant to section 18,
excluded areas will not require any further analysis. The Secretary
also seeks comments on whether the existing presidential withdrawals or
Congressional moratoria should be modified or expanded to include other
areas in the OCS. Finally, the Secretary has no intention of offering
for leasing areas in the Eastern Gulf of Mexico Planning Area within
100 miles of the coast of the State of Florida.
Section 18
As previously noted, the program preparation process will follow
all the procedural steps required by section 18 of the OCS Lands Act.
This notice solicits comments early in the preparation process pursuant
to section 18(c)(1) of that Act. The MMS will prepare a draft proposed
program based on consideration of the comments we receive and analysis
of the principles and factors specified in section 18. The draft
proposed program will present for review and comment a preliminary
schedule of lease sales and potential alternatives.
Section 18 of the OCS Lands Act lists the factors to be
considered--the economic, social, and environmental values of all of
the resources of the OCS and the potential impact of oil and gas
exploration on the environment. Specific factors which must be analyzed
and considered in deciding where and when to lease include: (1)
Existing information on the geographical, geological, and ecological
characteristics of such regions; (2) equitable sharing of developmental
benefits and environmental risks among the various regions; (3)
location of such regions and regional and national energy markets; (4)
location with respect to other current and anticipated uses of the sea
and seabed; (5) expressed industry interest; (6) laws, goals, and
policies of affected states specifically identified by governors; (7)
relative environmental sensitivity and marine productivity of
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different areas of the OCS; and (8) environmental and predictive
information for different areas of the OCS. The OCS Lands Act requires
the Secretary to obtain a proper balance among the potentials for
environmental damage, the discovery of oil and gas, and adverse impact
on the coastal zone, using cost-benefit analysis.
Types of Information Requested
The MMS invites comments from anyone who would like to submit
information for us to consider in determining the appropriate size,
timing, and location of OCS leasing for the 5-year period July 2007
through June 2012. The types of information we seek are described
below, using general and specific headings. Regardless of these
headings, all respondents are welcome to comment on any aspect of
program preparation and to submit any type of pertinent information.
General
The MMS would like to receive comments and suggestions of national
or regional application that would be useful in formulating the new 5-
year program. The types of information that would be most useful to us
in conducting the analysis pursuant to section 18 of the OCS Lands Act
relate to the following factors:
(1) National energy needs for the period relevant to the new
program (in particular for this program, the role of OCS leasing in
achieving national energy policy goals, including its potential for
contributing to increased domestic natural gas supplies); the economic,
social, and environmental values of the renewable and nonrenewable
resources contained in the OCS; and the potential impact of oil and gas
exploration on other resource values of the OCS and the marine,
coastal, and human environments;
(2) Geographical, geological, and ecological characteristics of the
planning areas of the OCS and near shore and coastal environments;
(3) Equitable sharing of developmental benefits and environmental
risks among the various planning areas;
(4) Location of planning areas with respect to, and the relative
needs of, regional and national energy markets;
(5) Other uses of the sea and seabed, including fisheries,
navigation, military activities, existing or proposed sealanes,
potential sites of deepwater ports (including liquefied natural gas
facilities), potential offshore wind and wave energy sites, and other
anticipated uses of OCS resources and locations; and any information
that could be useful for future rulemaking concerning offshore
alternative energy as authorized by the Energy Policy Act of 2005;
(6) Relative environmental sensitivity and marine productivity of
the different planning areas and/or specific section of a given
planning area of the OCS;
(7) Environmental and predictive information pertaining to offshore
and coastal areas potentially affected by OCS development (including,
but not limited to, socio-cultural and archaeological information); and
(8) Methods and procedures for assuring the receipt of fair market
value for lands leased.
The MMS also invites commenters to respond to the following
questions:
(i) What do you think is the proper role of the OCS as part of a
comprehensive national energy policy? How should the 5-year program for
2007-2012 be structured to fulfill this role?
(ii) Since recent studies have projected shortfalls in meeting
energy needs, particularly natural gas, how should such needs be
balanced with the laws, goals, and policies influencing the management
of the OCS? How should long-term planning address the current energy
supply situation?
(iii) Although OCS oil and gas leasing is typically conducted
through an extensive, long-established process, are there alternative
ways to ensure appropriate consultation and to streamline our leasing
procedures? Should the OCS Lands Act be amended to allow changes in the
5-year plan without starting the process all over again in cases of
acute supply or demand shift affecting national security? How might we
best meet the purpose of the OCS Lands Act ``to insure that the extent
of oil and gas resources of the outer Continental Shelf is assessed at
the earliest practicable time''?
(iv) If new areas are leased for exploration and potential
development, what short-term and long-term impacts do you foresee for
the economies of coastal communities?
(v) How should ecological considerations be weighed against
national and local economic benefits, if new areas are considered for
oil and gas leasing?
Specific
Inventory Provision of Energy Policy Act of 2005
Section 357 of the Energy Policy Act of 2005 directs the Secretary
to ``conduct an inventory and analysis of oil and natural gas resources
beneath all of the waters'' of the OCS. The statute requires that the
analysis ``identify and explain how legislative, regulatory, and
administrative programs and processes restrict or impede development''
of OCS resources and ``the extent that they affect domestic supply.''
Comments are solicited on how legislative, regulatory, and
administrative programs or processes of the Federal Government or
coastal states, as well as local zoning restrictions on onshore
processing facilities and pipeline landings, restrict domestic energy
production from the OCS. Further, what recommendations should be
considered to ensure that domestic resource potential is adequately
assessed?
The inventory and analysis must use available data on oil and gas
resources including those data offshore Mexico and Canada that can aid
in establishing trends of hydrocarbon accumulations in the U.S. areas
of the OCS. The Energy Policy Act of 2005 also authorizes use of
available technologies, except drilling, to establish a comprehensive
inventory, specifically 2-D and 3-D seismic surveys. MMS seeks comments
and information regarding availability of these technologies to obtain
more precise resource estimates.
Gas-Only Leasing
MMS also seeks input on ways the leasing program can be designed to
promote increased production of natural gas from the OCS. Natural gas
has been identified as the environmentally preferred fossil fuel and
currently accounts for at least 25 percent of the Nation's fuel needs.
It is expected to remain a critical component of the Nation's energy
demand well into the 21st century. MMS is interested in comments on the
possibility of ``gas-only'' leasing, particularly in light of the
dramatic rise in natural gas costs. There may be some areas very
sensitive to potential accidental oil spills that may be suited to gas-
only production, since natural gas would not pollute neighboring land
areas in case of the loss of control of a well. It is recognized that
the current law covers ``oil and gas'' leasing, and that the OCS Lands
Act may need to be amended to allow leasing of the separate
commodities. MMS requests any comments, but especially on the following
questions:
(1) Can gas-only production be realistically anticipated?
(2) Where on the OCS should such leases be offered?
(3) What technological obstacles may exist?
(4) What steps would have to be taken if significant amounts of oil
are encountered? Would the well have to be capped?
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(5) What steps would have to be taken if condensate is encountered?
(6) How would gas-only production affect the OCS Lands Act
requirement for ``prevention of waste and conservation of the natural
resources''?
Alaska Specific
In several areas offshore Alaska, the current program includes a
``special'' sales process to provide the Secretary flexibility to offer
such areas if the interest is sufficient. Should the ``special'' lease
sale process used in the current 5-year program be continued or amended
to reflect regional needs?
Restricted Joint Bidders
It has been suggested that the inability of the larger oil and gas
companies to submit joint bids may be an important factor in the low
interest in some Alaska OCS lease sales, given the lack of
infrastructure and the cost and risk of operating in frontier areas.
Should MMS consider dropping the current joint bidding restrictions for
such companies in certain areas of the Alaska offshore? If so, where
and why?
Affected Coastal States
As specified in section 18(a)(2)(F) of the OCS Lands Act, the MMS
requests the governors of affected states to identify state laws,
goals, and policies relevant to OCS oil and gas. A letter soliciting
such information has been sent to those governors. Pursuant to section
18(f)(5) of the OCS Lands Act and implementing regulations at 30 CFR
256.20, MMS requests information concerning the relationship between
OCS oil and gas activity and the states' coastal zone management
programs that are being developed or administered under the Coastal
Zone Management Act. We also request the affected states to submit
information concerning environmental risk and potential for damage to
coastal and marine resources associated with development of the OCS,
information related to other uses of the sea, and any information that
is relevant to equitable sharing of developmental benefits and
environmental risks associated with OCS oil and gas activity.
Oil and Gas Industry
As specified in section 18(a)(2)(E) of the OCS Lands Act, the MMS
requests oil and gas industry respondents to provide information
indicating interest in the opportunity to lease and develop additional
OCS oil and gas resources. Respondents should base this information on
their expectations as of 2007. For each area in which a company is
interested, please submit information concerning unleased hydrocarbon
potential, future oil and gas price expectations, and other relevant
information that the company uses in making OCS oil and gas leasing
decisions. The MMS requests industry respondents to provide additional
information as specified below. On request such information will be
treated confidentially, as explained further below:
(1) Indicate the OCS planning area(s) where the company would be
interested in acquiring oil and gas leases during the period 2007-2012.
If more than one planning area is of interest, rank the areas in order
of preference.
(2) Indicate the number and timing of lease sales in the period
2007-2012 that would be appropriate for each planning area. If only one
lease sale in a planning area is appropriate, indicate whether that
area should be considered for leasing early or late in the 5-year
program schedule. If more than one lease sale in a planning area is
suggested, indicate the preferred interval between lease sales.
Section 18(g) of the OCS Lands Act authorizes confidential
treatment of privileged or proprietary information. In order to protect
the confidentiality of privileged or proprietary information, include
such information as an attachment to other comments submitted so that
there is no ambiguity about what portions of the comments are
confidential or proprietary. On request, the MMS will treat the
privileged or proprietary information that is attached to a response as
confidential from the time of its receipt until 5 years after approval
of the 2007-2012 leasing program, subject to the standards of the
Freedom of Information Act. However, the MMS will not treat as
confidential any aggregate summaries of such information, the names of
respondents, or comments not containing such information. As noted
above, there should be affixed the label ``Contains Confidential
Information'' on any envelope containing privileged or proprietary
information that a respondent wishes to be treated as confidential.
Department of Commerce
Pursuant to section 18(f)(5) of the OCS Lands Act and implementing
regulations at 30 CFR 256.20, the MMS requests information concerning
relationships between affected states' coastal zone management programs
and OCS oil and gas activities. We have sent a letter to the Secretary
of Commerce soliciting such information.
Department of Energy
Pursuant to implementing regulations at 30 CFR 256.16, the MMS
requests information concerning regional and national energy markets,
OCS production goals, and oil and gas transportation networks. We have
sent a letter to the Secretary of Energy soliciting such information.
EIS Preparation
Pursuant to section 102(2)(C) of NEPA, the MMS intends to prepare
an EIS for the new 5-year OCS oil and gas leasing program for 2007-
2012. This notice starts the scoping process for the EIS under 40 CFR
1501.7, and solicits information regarding issues and alternatives that
should be evaluated in the EIS. The EIS will address the potential
impacts of the adoption of the proposed 5-year program. The MMS
requests respondents to focus their comments on the significant
environmental issues attendant to OCS oil and gas leasing and
development and on alternative options for the size, timing, and
location of lease sales that should be evaluated in the EIS. Please
label and submit comments as indicated above. The MMS will consider
these comments for the purposes of determining the scope of the EIS we
plan to prepare and the schedule for scoping. For further information
about preparation of the EIS, please contact Mr. Jim Bennett, Chief,
Branch of Environmental Assessment at the Minerals Management Service,
381 Elden Street, MS 4042, Herndon, Virginia 20170, telephone (703)
787-1660.
Cooperating Agency
The Department of the Interior invites other Federal agencies and
state, tribal, and local governments to consider becoming cooperating
agencies in the preparation of the EIS. We invite qualified government
entities to inquire about cooperating agency status for the EIS for the
proposed 5-year program. Per guidelines from the Council of
Environmental Quality (CEQ), qualified agencies and governments are
those with ``jurisdiction by law or special expertise.'' Potential
cooperating agencies should consider their authority and capacity to
assume the responsibilities of a cooperating agency and to remember
that an agency's role in the environmental analysis neither enlarges
nor diminishes the final decision making authority of any other agency
involved in the NEPA process. Upon request, MMS will provide potential
cooperating agencies with a written summary of ground rules for
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cooperating agencies, including time schedules and critical action
dates, milestones, responsibilities, scope and detail of cooperating
agencies' contributions, and availability of pre-decisional
information. MMS anticipates this summary will form the basis for a
Memorandum of Understanding between the MMS and each cooperating
agency. Agencies should also consider the ``Factors for Determining
Cooperating Agency Status'' in Attachment 1 to CEQ's January 30, 2002,
Memorandum for the Heads of Federal Agencies: Cooperating Agencies in
Implementing the Procedural Requirements of the National Environmental
Policy Act. A copy of this document is available at: https://
ceq.eh.doe.gov/nepa/regs/cooperating/cooperatingagenciesmemorandum.html
and https://ceq.eh.doe.gov/nepa/regs/cooperating/
cooperatingagencymemofactors.html.
The MMS, as the lead agency, will not be providing financial
assistance to cooperating agencies. Even if an organization is not a
cooperating agency, opportunities will exist to provide information and
comments to MMS during the normal public input phases of the NEPA/EIS
process. MMS will also consult with tribal governments on a government-
to-government basis. If further information about cooperating agencies
is needed, please contact Mr. Jim Bennett, at (703) 787-1660.
Dated: August 22, 2005.
R.M. ``Johnnie'' Burton,
Director, Minerals Management Service.
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[FR Doc. 05-16905 Filed 8-22-05; 12:07 pm]
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