Request for Comments on the Preparation of a 5-Year Outer Continental Shelf (OCS) Oil and Gas Leasing Program, 45065-45070 [E8-17708]
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Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
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Dated: July 21, 2008.
Richard J. Adamski,
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Revenue Management.
[FR Doc. E8–17730 Filed 7–31–08; 8:45 am]
BILLING CODE 4310–MR–P
DEPARTMENT OF THE INTERIOR
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Minerals Management Service
Request for Comments on the
Preparation of a 5-Year Outer
Continental Shelf (OCS) Oil and Gas
Leasing Program
Minerals Management Service
(MMS), Interior.
AGENCY:
ACTION:
Request for Comments.
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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 2007 to June 30, 2012. The
Department’s MMS is soliciting
information on whether to begin a new
Program for mid-2010 to mid-2015
(approximate dates) to succeed the
current one.
Section 18 requires completion of a
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,
a proposed final program; and
Secretarial approval. If the decision is
made to prepare a new 5-Year Program,
the MMS will also prepare appropriate
NEPA analysis documents. The public
will have opportunities to comment on
the draft proposed program, the draft
EIS or other NEPA documents, and the
proposed program. This Notice in
particular requests comments on areas
that are restricted from leasing by
Congressional Moratoria but were
removed from Presidential Withdrawal
on July 14, 2008.
DATES: The MMS must receive all
comments and information by
September 15, 2008.
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
from the public record, his or her name,
home address, or both, and we will
honor such a request to the extent
allowable by law. If you submit
comments and desire that we withhold
such information, you must so state
prominently at the beginning of your
submission.
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Mail comments and
information on the program to: Ms.
Renee Orr, 5-Year Program Manager,
Minerals Management Service (MS–
4010), 381 Elden Street, Herndon,
Virginia 20170. Environmental
comments and information relevant to
oil and gas development on the OCS
should be sent to: Mr. James F. Bennett,
Chief, Branch of Environmental
Assessment, Minerals Management
Service (MS–4042), 381 Elden Street,
Herndon, Virginia 20170. 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
public comment system. (Public
Connect). This system can be accessed
at https://www.mms.gov. We also will
provide access to information
concerning the 5-Year Program at the
MMS Internet Web site (https://
www.mms.gov) and copies or summaries
of comments we receive in response to
this notice will be available in the MMS
Public Connect database.
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 on whether to begin the
preparation of a new 5-Year Program.
MMS is seeking a wide range of
information, including marine
productivity, environmental sensitivity
and resource assessment. 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.
The OCS is a significant source of oil
and gas for the Nation’s energy supply.
On a per day basis, the OCS currently
produces about 1.35 million barrels of
oil and almost 8 billion cubic feet of
natural gas. This represents
approximately 27 percent of domestic
oil production and 15 percent of natural
gas production.
The MMS’s oversight and regulatory
frameworks ensure production and
ADDRESSES:
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drilling are conducted in a safe and
environmentally responsible manner.
The offshore areas of the United
States are estimated to contain
significant quantities of resources in yetto-be-discovered fields. MMS estimates
that the Undiscovered Technically
Recoverable oil and gas resources in the
U.S. OCS consist of 86 billion barrels of
oil and 420 trillion cubic feet of natural
gas. Significant areas of the OCS have
been under congressional and/or
executive restrictions starting in the
early 1980’s. Currently, approximately
574 million acres, i.e., 85 percent of the
OCS offshore the lower-48 states are
unavailable for leasing consideration,
due to congressional moratoria,
something no other country in the world
has done to this extent. MMS estimates
that these restricted areas—in the
Pacific, the Atlantic, and parts of the
central and eastern Gulf of Mexico—
contain about 30 percent of the potential
undiscovered oil and 27 percent of the
undiscovered natural gas resources
offshore the lower-48 states. (This is a
mean estimate based on MMS’s 2006
assessment.)
Neighboring countries are expanding
offshore oil and gas exploration due to
oil and gas price increases as well as
other environmental and economic
factors. A moratorium imposed by the
Canadian government on offshore
drilling in Georges Bank, a rich fishing
ground off southwest Nova Scotia in the
North Atlantic, is in place until 2012.
The Canadian government is
considering lifting that moratorium.
Canada also has issued leases and
exploration rights in the eastern
Beaufort Sea adjacent to the U.S.
Beaufort Sea. Another example is Cuba,
which has entered into licenses with
private energy companies to develop its
offshore resources. Cuba appears to be
exploring aggressively its oil and gas
resources since the late 1990’s, with
offshore activity less than 50 miles from
the coast of Florida.
The vast majority of OCS production
comes from the Central and Western
Planning Areas of the Gulf of Mexico.
Given the recent effects of hurricanes on
Gulf production in the short and long
terms, it is clear that the country has
concentrated most of its offshore
domestic energy production activity in
one area. To address this, MMS is
calling for a broadened approach to
address other areas of the OCS as well.
In testimony before Congress in May
2008, Energy Secretary Bodman
emphasized the need to expand
conventional energy supplies and
diversify their sources. He proposed
greater access to areas, including the
OCS, that contain substantial amounts
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of oil and natural gas. New development
technologies and methods will provide
the opportunity for this development to
proceed with proper protection for the
environment.
The MMS is initiating the section 18
5-year program development at this
time, approximately 2 years ahead of
schedule, as part of the Federal
Government’s actions to address the
existing domestic energy situation.
Currently, each American uses an
average of 3 gallons of oil per day.
About two-thirds of that oil is used in
transportation. In fact, oil is expected to
remain, by far, the primary fuel for
transportation for decades to come, even
with aggressive efforts and government
policies to encourage the development
of alternative fuels, more efficient
engines, and increasingly effective
conservation measures.
The MMS is developing a program to
produce electricity from alternative
energy resources on the OCS. Under the
Energy Policy Act of 2005, the
Secretary, acting through MMS, has
established a program to develop
renewable energy resources on the OCS.
On July 9, 2008, MMS issued a
Proposed Rule for alternative energy on
the OCS. As a first step, under an
interim policy announced in late 2007,
MMS is working toward issuance of
several leases for data gathering and
technology testing. These leases will
look at varied renewable energy sources
in different portions of the OCS. The
Energy Information Administration
(EIA) reported in 2007 that wind and
other renewables are the fastest growing
energy sources in the U.S., projecting
that renewables will account for over 10
percent of domestic energy production
by 2030. In the long term, development
of a wide array of renewable energy
sources is critical. However, in the short
and mid-term, both nationally and
globally, we will continue to rely on
fossil fuels.
On June 18, 2008, the President
issued a statement on energy,
particularly focusing on the rising price
of gasoline. High gasoline prices stem
from high oil prices which result from
basic ‘‘supply and demand’’ factors in
the current market. The dramatic
increase in oil and natural gas prices has
resulted from growing U.S. and global
demand for these products that has not
been matched by an equivalent increase
in available supplies. The President
stated that much of the oil consumed in
the U.S. comes from abroad and some of
that is from ‘‘unstable regions and
unfriendly regimes. This makes us more
vulnerable to supply shocks and price
spikes beyond our control—and that
puts both our economy and our security
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at risk.’’ The Department of Commerce
reported in April that the U.S. trade
deficit grew to its largest level in over
a year to $60.9 billion. Even with
exports rising, increases in oil prices
continued to drive up the deficit. The
deficit of petroleum products has grown
to $34.5 billion, up from $23.5 billion
last year. It is expected that continued
importing of oil will widen the trade
deficit even more sending billions of
dollars to other countries.
Gasoline prices may be a more visible
consequence of the energy situation, but
there are other consequences that affect
various sectors of the economy.
According to the EIA, while gasoline
prices in the U.S. have increased about
$1.15 per gallon over the past year,
diesel fuel has increased almost $1.90
per gallon. (Source: Gasoline and Diesel
Fuel Update. Energy Information
Administration. 14 July 2008. https://
tonto.eia.doe.gov/oog/info/wohdp/
diesel.asp?featureclicked=1&) Since
much of the Nation’s consumer goods
are transported by truck, the prices of
such goods to the consumer also reflect
the increase in energy costs and may
affect consumer buying patterns.
Energy is also one of the greatest
input costs for manufacturers. This
sector is dependent upon globally
competitive energy to compete in the
marketplace both domestically and
globally. According to the Industrial
Energy Consumers of America (IECA), a
cross-industry trade association, the
high price of natural gas in particular
has contributed to the loss of about 3.3
million, or about 19 percent, of U.S.
manufacturing jobs since 2000 (Source:
Cicio, Paul. Industrial Energy
Consumers of America. ‘‘A Natural-Gas
High.’’ Forbes.com. 4 June 2008.
https://www.ieca-us.com/documents/
06.04.08_Forbes.comArticleMagazineArticle.pdf).
Furthermore, as the use of natural gas
to generate electricity has grown in this
country, the increase in natural gas
prices causes an increase in electricity
costs to manufacturers as well as to the
general public. The EIA projects
residential electricity prices will
increase by an annual average of about
5.2 percent in 2008 and 9.8 percent in
2009, compared with an increase of 2.2
percent in 2007. (Source: Short-Term
Energy Outlook. Energy Information
Administration. 8 July 2008. https://
www.eia.doe.gov/steo) Unlike oil that is
priced globally, natural gas is a more
regional product that is priced
domestically. Over 80 percent of natural
gas consumed in the U.S. is
domestically produced. While supply
and demand have remained fairly
stable, the price of natural gas has
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shown an increase of almost 130 percent
over the past year.
In his June 18 statement, the President
asked Congress to pass legislation as
soon as possible to lift the congressional
restrictions in order to give states the
option to recommend the opening of the
OCS off their coasts to environmentallyresponsible exploration for and
development of hydrocarbon resources
and sharing of revenues. On July 14, the
President removed the executive
prohibition in those areas and again
asked Congress to lift the congressional
restrictions and to allow increased
domestic oil exploration and
production. Similar legislation has been
introduced in the recent past, but not
enacted. The current economic and
energy situation may argue for
reconsideration of these matters. The
dramatic increase in energy prices has
affected all aspects of the American
economy, and while not all coastal
states have considered exploration and
development activity off their coasts,
some states have already addressed the
potential of the OCS. For example, in
2006 the Commonwealth of Virginia
adopted an energy policy that includes
interest in developing natural gas
resources more than 50 miles off its
coast. Similar legislation has been
introduced in other states.
Section 18 of the OCS Lands Act
requires that the Secretary consider
national energy needs in formulating a
leasing program. In April 2007 when
MMS announced the Proposed Final
Program for 2007–2012, oil was priced
at $64.21 per barrel. As of the end of
June 2008, prices were at $134.60 per
barrel, representing an increase of over
100 percent. Gasoline prices have
doubled over the same period from just
over $2 to over $4 per gallon.
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. MMS has created 26
planning areas, which are depicted in
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
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Under the authority vested in me as
President of the United States, including
section 12(a) of the Outer Continental Shelf
Lands Act, 43 U.S.C. 1341(a), I hereby
withdraw from disposition by leasing, for a
time period without specific expiration,
those areas of the Outer Continental Shelf
designated as of July 14, 2008, as Marine
Sanctuaries under the Marine Protection,
Research, and Sanctuaries Act of 1972, 16
U.S.C. 1431–1434, 33 U.S.C. 1401 et seq.
and the approved program includes
three areas that had not been considered
for leasing for many years—the North
Aleutian Basin, Alaska; a portion of the
Gulf of Mexico; and an area in the MidAtlantic off the coast of Virginia. Only
the area off Virginia remains under a
congressional ban. Had these areas not
been included in the Draft Proposed
Program, they could not have been in
the approved program.
As set forth in more detail later in this
notice, the information requested 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. 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
include in the draft proposed program.
Pursuant to section 18, included areas
will be subject to further analysis as
well as review and analysis under
NEPA. The Secretary also seeks
comments on whether the Congressional
restrictions should be eliminated or
modified.
This modification affects the
following planning areas: WashingtonOregon; Northern, Central, and
Southern California; South, Mid-, and
North Atlantic; and Central and Eastern
Gulf of Mexico. Portions of these
planning areas have been closed to
leasing pursuant to congressional
moratoria in annual appropriations
statutes from the 1980’s to the present.
Also pursuant to the Gulf of Mexico
Energy Security Act of 2006, Congress
placed off limits until 2022 the Eastern
Gulf within 125 miles of Florida, all of
the Eastern Gulf east of 86 degrees, 41
minutes West longitude, and a portion
of the Central Gulf within 100 miles of
Florida. See Figure 2. The President’s
June 16 and July 14 statements continue
to recognize that deference should be
paid to the coastal states, but calls for
discontinuing the restrictions so the
states have the option to decide whether
to support offshore activity. As with the
RFI issued in August 2005 (70 FR
49669) for the current program, we are
asking for input from the states, local
governments, and other interested
parties as to whether and how their
interest in offshore resources has
changed. Based upon expressions of
such interest in the initiation of the
current program, areas under restriction
were included in the program proposals
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
upon 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 and development on the
environment. Specific factors that must
be analyzed and considered in deciding
where and when to lease include the
following: (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
States, or its individual States, with
respect to the nature or extent of
internal waters or of sovereign rights or
jurisdiction.
Many planning areas were subject to
a recently modified presidential
withdrawal from leasing under the
authority of section 12 of the OCS Lands
Act (43 U.S.C. 1341). On July 14, 2008
a Modification of the Presidential
Withdrawal of areas of the United States
Outer Continental Shelf from leasing
disposition was announced by President
Bush in the following statement, ‘‘Under
the authority vested in me as President
of the United States, including section
12(a) of the Outer Continental Shelf
Lands Act, 43 U.S.C. 1341(a), I hereby
modify the prior memoranda of
withdrawals from disposition by leasing
of the United States Outer Continental
Shelf issued on August 4, 1992, and
June 12, 1998, as modified on January
9, 2007, to read only as follows:’’
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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
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 potential for environmental
damage, the discovery of oil and gas,
and adverse impact on the coastal zone,
for which DOI uses cost-benefit
analysis.
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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 oil and gas
leasing for the new 5-year period. 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 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 oil and gas 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 and
development 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
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activities, existing or proposed sea
lanes, potential sites of deepwater ports
(including liquefied natural gas
facilities), potential offshore wind,
wave, current or other alternative energy
sites, and other anticipated uses of OCS
resources and locations;
(6) Relative environmental sensitivity
and marine productivity of the different
planning areas and/or a 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
oil and gas 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 OCS oil and gas leasing as part
of a comprehensive national energy
policy? How should the 5-year program
be structured to fulfill this role?
(ii) Since recent studies have
projected shortfalls in meeting energy
needs, particularly natural gas, how
could 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) Should areas under Congressional
moratoria be included in the new 5-Year
Program? What areas? With Sales
proposed in what time-frame?
(iv) 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’’?
(v) 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?
(vi) How should ecological
considerations be weighed against
national and local economic benefits, if
new areas are considered for oil and gas
leasing?
(vii) If new areas are not leased for
exploration and potential development,
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what environmental impacts do you
foresee from imports of oil and gas?
(viii) Is there a strategic advantage to
considering sources of oil and gas in
areas currently under congressional
moratoria to potentially diversify OCS
energy development?
Specific
States
As every state is feeling the effects of
increased oil and gas prices and thereby
is potentially impacted by the
possibilities of enhanced domestic
energy production, a letter soliciting
such information has been sent to the
governors of all 50 states. For coastal
states, 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 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. In addition, for
non-coastal and coastal states we
request information on the impacts of
rising prices and potential shortages on
your economies and citizens and their
roles in the national economy.
Oil and Gas Industry
As specified in section 18(a)(2)(E) of
the OCS Lands Act, MMS requests that
oil and gas industry respondents
provide information indicating interest
in the opportunity to lease and develop
additional OCS oil and gas resources.
Respondents should base this
information upon their expectations as
of 2010. 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 that
industry respondents provide additional
information as specified below. Upon
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 regardless
of whether the area is currently under
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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. Upon
request, 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 2010–2015 leasing
program, subject to the standards of the
Freedom of Information Act. However,
MMS will not treat as confidential any
aggregate summaries of privileged or
proprietary information, the names of
respondents, or comments not
containing such information. As noted
above, respondents should affix the
label ‘‘Contains Confidential
Information’’ on any envelope
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containing privileged or proprietary
information.
Department of Commerce
Pursuant to section 18(f)(5) of the OCS
Lands Act and implementing
regulations at 30 CFR 256.20, 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, MMS requests
information concerning regional and
national energy markets, OCS oil and
gas production goals, and oil and gas
transportation networks. We have sent a
letter to the Secretary of Energy
soliciting such information.
Dated: July 29, 2008.
Randall B. Luthi,
Director, Minerals Management Service.
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Congressional moratoria. 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 2010–2015 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.
(3) The MMS estimated resource
potential in moratoria areas is based on
a limited number of wells, and very old
(25 years) seismic data. How might
seismic data be acquired in these areas?
(4) Indicate the lead time to
production (should new leasing be
allowed to occur in previously restricted
areas) in areas that are not part of the
current program, relative to lead-times
to new production in previously leased
areas like the Central and Western Gulf
of Mexico.
45069
45070
Federal Register / Vol. 73, No. 149 / Friday, August 1, 2008 / Notices
BILLING CODE 4310–MR–P
performance of duties imposed on the
Department of the Interior.
DEPARTMENT OF THE INTERIOR
Dirk Kempthorne,
Secretary of the Interior.
[FR Doc. E8–17587 Filed 7–31–08; 8:45 am]
Bureau of Reclamation
BILLING CODE 4310–MN–M
Glen Canyon Dam Adaptive
Management Work Group
AGENCY:
INTERNATIONAL BOUNDARY AND
WATER COMMISSION, UNITED
STATES AND MEXICO
Bureau of Reclamation,
Interior.
Notice of charter renewal.
ACTION:
This notice is published in
accordance with section 9(a)(2) of the
Federal Advisory Committee Act of
1972 (Pub. L. 92–463, as amended).
Following consultation with the General
Services Administration, notice is
hereby given that the Secretary of the
Interior (Secretary) is renewing the
charter for the Glen Canyon Dam
Adaptive Management Work Group. The
purpose of the Adaptive Management
Work Group is to advise and to provide
recommendations to the Secretary with
respect to the operation of Glen Canyon
Dam and the exercise of other
authorities pursuant to applicable
Federal law.
FOR FURTHER INFORMATION CONTACT:
Linda Whetton, 801–524–3880.
The certification of renewal is
published below.
mstockstill on PROD1PC66 with NOTICES
SUMMARY:
Certification
I hereby certify that Charter renewal
of the Glen Canyon Dam Adaptive
Management Work Group is in the
public interest in connection with the
VerDate Aug<31>2005
19:39 Jul 31, 2008
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United States Section; Notice of
Availability of a Draft Environmental
Assessment and Finding of No
Significant Impact for Improvements to
the Rio Grande Rectification Project in
El Paso and Hudspeth Counties, TX
United States Section,
International Boundary and Water
Commission, United States and Mexico
(USIBWC).
ACTION: Notice of Availability of Draft
Environmental Assessment (EA) and
Finding of No Significant Impact
(FONSI).
AGENCY:
SUMMARY: Pursuant to Section 102(2)(c)
of the National Environmental Policy
Act (NEPA) of 1969, the Council on
Environmental Quality Final
Regulations (40 CFR Parts 1500 through
1508), and the United States Section’s
Operational Procedures for
Implementing Section 102 of NEPA,
published in the Federal Register
September 2, 1981, (46 FR 44083); the
USIBWC hereby gives notice of
availability of the Draft Environmental
PO 00000
Frm 00114
Fmt 4703
Sfmt 4703
Assessment and FONSI for
Improvements to the Rio Grande
Rectification Project (RGRP) located in
El Paso and Hudspeth Counties, Texas
are available. An environmental impact
statement will not be prepared unless
additional information which may affect
this decision is brought to our attention
within 30 days from the date of this
Notice.
Lisa
Santana, Environmental Protection
Specialist, Environmental Management
Division, United States Section,
International Boundary and Water
Commission; 4171 N. Mesa, C–100; El
Paso, Texas 79902. Telephone: (915)
832–4707; e-mail:
lisasantana@ibwc.gov.
FOR FURTHER INFORMATION CONTACT:
Comments on the Draft EA and
Draft FONSI will be accepted through
September 2, 2008
Availability: Single hard copies of the
Draft Environmental Assessment and
Finding of No Significant Impact are
available by request at the above
address. Electronic copies are available
from the USIBWC homepage at https://
www.ibwc.gov/Organization/
Environmental/
EIS_EA_Public_Comment.html.
DATES:
Dated: July 28, 2008.
Susan Daniel,
General Counsel.
[FR Doc. E8–17514 Filed 7–31–08; 8:45 am]
BILLING CODE 7010–01–P
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[FR Doc. E8–17708 Filed 7–31–08; 8:45 am]
Agencies
[Federal Register Volume 73, Number 149 (Friday, August 1, 2008)]
[Notices]
[Pages 45065-45070]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-17708]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Minerals Management Service
Request for Comments on the Preparation of a 5-Year Outer
Continental Shelf (OCS) Oil and Gas Leasing Program
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Request for Comments.
-----------------------------------------------------------------------
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 2007
to June 30, 2012. The Department's MMS is soliciting information on
whether to begin a new Program for mid-2010 to mid-2015 (approximate
dates) to succeed the current one.
Section 18 requires completion of a 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, a proposed
final program; and Secretarial approval. If the decision is made to
prepare a new 5-Year Program, the MMS will also prepare appropriate
NEPA analysis documents. The public will have opportunities to comment
on the draft proposed program, the draft EIS or other NEPA documents,
and the proposed program. This Notice in particular requests comments
on areas that are restricted from leasing by Congressional Moratoria
but were removed from Presidential Withdrawal on July 14, 2008.
DATES: The MMS must receive all comments and information by September
15, 2008.
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 from the public record, his or her
name, home address, or both, and we will honor such a request to the
extent allowable by law. If you submit comments and desire that we
withhold such information, you must so state prominently at the
beginning of your submission.
ADDRESSES: Mail comments and information on the program to: Ms. Renee
Orr, 5-Year Program Manager, Minerals Management Service (MS-4010), 381
Elden Street, Herndon, Virginia 20170. Environmental comments and
information relevant to oil and gas development on the OCS should be
sent to: Mr. James F. Bennett, Chief, Branch of Environmental
Assessment, Minerals Management Service (MS-4042), 381 Elden Street,
Herndon, Virginia 20170. 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
public comment system. (Public Connect). This system can be accessed at
https://www.mms.gov. We also will provide access to information
concerning the 5-Year Program at the MMS Internet Web site (https://
www.mms.gov) and copies or summaries of comments we receive in response
to this notice will be available in the MMS Public Connect database.
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 on whether to begin the preparation of
a new 5-Year Program. MMS is seeking a wide range of information,
including marine productivity, environmental sensitivity and resource
assessment. 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.
The OCS is a significant source of oil and gas for the Nation's
energy supply. On a per day basis, the OCS currently produces about
1.35 million barrels of oil and almost 8 billion cubic feet of natural
gas. This represents approximately 27 percent of domestic oil
production and 15 percent of natural gas production.
The MMS's oversight and regulatory frameworks ensure production and
[[Page 45066]]
drilling are conducted in a safe and environmentally responsible
manner.
The offshore areas of the United States are estimated to contain
significant quantities of resources in yet-to-be-discovered fields. MMS
estimates that the Undiscovered Technically Recoverable oil and gas
resources in the U.S. OCS consist of 86 billion barrels of oil and 420
trillion cubic feet of natural gas. Significant areas of the OCS have
been under congressional and/or executive restrictions starting in the
early 1980's. Currently, approximately 574 million acres, i.e., 85
percent of the OCS offshore the lower-48 states are unavailable for
leasing consideration, due to congressional moratoria, something no
other country in the world has done to this extent. MMS estimates that
these restricted areas--in the Pacific, the Atlantic, and parts of the
central and eastern Gulf of Mexico--contain about 30 percent of the
potential undiscovered oil and 27 percent of the undiscovered natural
gas resources offshore the lower-48 states. (This is a mean estimate
based on MMS's 2006 assessment.)
Neighboring countries are expanding offshore oil and gas
exploration due to oil and gas price increases as well as other
environmental and economic factors. A moratorium imposed by the
Canadian government on offshore drilling in Georges Bank, a rich
fishing ground off southwest Nova Scotia in the North Atlantic, is in
place until 2012. The Canadian government is considering lifting that
moratorium. Canada also has issued leases and exploration rights in the
eastern Beaufort Sea adjacent to the U.S. Beaufort Sea. Another example
is Cuba, which has entered into licenses with private energy companies
to develop its offshore resources. Cuba appears to be exploring
aggressively its oil and gas resources since the late 1990's, with
offshore activity less than 50 miles from the coast of Florida.
The vast majority of OCS production comes from the Central and
Western Planning Areas of the Gulf of Mexico. Given the recent effects
of hurricanes on Gulf production in the short and long terms, it is
clear that the country has concentrated most of its offshore domestic
energy production activity in one area. To address this, MMS is calling
for a broadened approach to address other areas of the OCS as well. In
testimony before Congress in May 2008, Energy Secretary Bodman
emphasized the need to expand conventional energy supplies and
diversify their sources. He proposed greater access to areas, including
the OCS, that contain substantial amounts of oil and natural gas. New
development technologies and methods will provide the opportunity for
this development to proceed with proper protection for the environment.
The MMS is initiating the section 18 5-year program development at
this time, approximately 2 years ahead of schedule, as part of the
Federal Government's actions to address the existing domestic energy
situation. Currently, each American uses an average of 3 gallons of oil
per day. About two-thirds of that oil is used in transportation. In
fact, oil is expected to remain, by far, the primary fuel for
transportation for decades to come, even with aggressive efforts and
government policies to encourage the development of alternative fuels,
more efficient engines, and increasingly effective conservation
measures.
The MMS is developing a program to produce electricity from
alternative energy resources on the OCS. Under the Energy Policy Act of
2005, the Secretary, acting through MMS, has established a program to
develop renewable energy resources on the OCS. On July 9, 2008, MMS
issued a Proposed Rule for alternative energy on the OCS. As a first
step, under an interim policy announced in late 2007, MMS is working
toward issuance of several leases for data gathering and technology
testing. These leases will look at varied renewable energy sources in
different portions of the OCS. The Energy Information Administration
(EIA) reported in 2007 that wind and other renewables are the fastest
growing energy sources in the U.S., projecting that renewables will
account for over 10 percent of domestic energy production by 2030. In
the long term, development of a wide array of renewable energy sources
is critical. However, in the short and mid-term, both nationally and
globally, we will continue to rely on fossil fuels.
On June 18, 2008, the President issued a statement on energy,
particularly focusing on the rising price of gasoline. High gasoline
prices stem from high oil prices which result from basic ``supply and
demand'' factors in the current market. The dramatic increase in oil
and natural gas prices has resulted from growing U.S. and global demand
for these products that has not been matched by an equivalent increase
in available supplies. The President stated that much of the oil
consumed in the U.S. comes from abroad and some of that is from
``unstable regions and unfriendly regimes. This makes us more
vulnerable to supply shocks and price spikes beyond our control--and
that puts both our economy and our security at risk.'' The Department
of Commerce reported in April that the U.S. trade deficit grew to its
largest level in over a year to $60.9 billion. Even with exports
rising, increases in oil prices continued to drive up the deficit. The
deficit of petroleum products has grown to $34.5 billion, up from $23.5
billion last year. It is expected that continued importing of oil will
widen the trade deficit even more sending billions of dollars to other
countries.
Gasoline prices may be a more visible consequence of the energy
situation, but there are other consequences that affect various sectors
of the economy. According to the EIA, while gasoline prices in the U.S.
have increased about $1.15 per gallon over the past year, diesel fuel
has increased almost $1.90 per gallon. (Source: Gasoline and Diesel
Fuel Update. Energy Information Administration. 14 July 2008. https://
tonto.eia.doe.gov/oog/info/wohdp/diesel.asp?featureclicked=1&) Since
much of the Nation's consumer goods are transported by truck, the
prices of such goods to the consumer also reflect the increase in
energy costs and may affect consumer buying patterns.
Energy is also one of the greatest input costs for manufacturers.
This sector is dependent upon globally competitive energy to compete in
the marketplace both domestically and globally. According to the
Industrial Energy Consumers of America (IECA), a cross-industry trade
association, the high price of natural gas in particular has
contributed to the loss of about 3.3 million, or about 19 percent, of
U.S. manufacturing jobs since 2000 (Source: Cicio, Paul. Industrial
Energy Consumers of America. ``A Natural-Gas High.'' Forbes.com. 4 June
2008. https://www.ieca-us.com/documents/06.04.08_Forbes.comArticle-
MagazineArticle.pdf).
Furthermore, as the use of natural gas to generate electricity has
grown in this country, the increase in natural gas prices causes an
increase in electricity costs to manufacturers as well as to the
general public. The EIA projects residential electricity prices will
increase by an annual average of about 5.2 percent in 2008 and 9.8
percent in 2009, compared with an increase of 2.2 percent in 2007.
(Source: Short-Term Energy Outlook. Energy Information Administration.
8 July 2008. https://www.eia.doe.gov/steo) Unlike oil that is priced
globally, natural gas is a more regional product that is priced
domestically. Over 80 percent of natural gas consumed in the U.S. is
domestically produced. While supply and demand have remained fairly
stable, the price of natural gas has
[[Page 45067]]
shown an increase of almost 130 percent over the past year.
In his June 18 statement, the President asked Congress to pass
legislation as soon as possible to lift the congressional restrictions
in order to give states the option to recommend the opening of the OCS
off their coasts to environmentally-responsible exploration for and
development of hydrocarbon resources and sharing of revenues. On July
14, the President removed the executive prohibition in those areas and
again asked Congress to lift the congressional restrictions and to
allow increased domestic oil exploration and production. Similar
legislation has been introduced in the recent past, but not enacted.
The current economic and energy situation may argue for reconsideration
of these matters. The dramatic increase in energy prices has affected
all aspects of the American economy, and while not all coastal states
have considered exploration and development activity off their coasts,
some states have already addressed the potential of the OCS. For
example, in 2006 the Commonwealth of Virginia adopted an energy policy
that includes interest in developing natural gas resources more than 50
miles off its coast. Similar legislation has been introduced in other
states.
Section 18 of the OCS Lands Act requires that the Secretary
consider national energy needs in formulating a leasing program. In
April 2007 when MMS announced the Proposed Final Program for 2007-2012,
oil was priced at $64.21 per barrel. As of the end of June 2008, prices
were at $134.60 per barrel, representing an increase of over 100
percent. Gasoline prices have doubled over the same period from just
over $2 to over $4 per gallon.
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. MMS has created 26 planning areas, which
are depicted in 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 were subject to a recently modified
presidential withdrawal from leasing under the authority of section 12
of the OCS Lands Act (43 U.S.C. 1341). On July 14, 2008 a Modification
of the Presidential Withdrawal of areas of the United States Outer
Continental Shelf from leasing disposition was announced by President
Bush in the following statement, ``Under the authority vested in me as
President of the United States, including section 12(a) of the Outer
Continental Shelf Lands Act, 43 U.S.C. 1341(a), I hereby modify the
prior memoranda of withdrawals from disposition by leasing of the
United States Outer Continental Shelf issued on August 4, 1992, and
June 12, 1998, as modified on January 9, 2007, to read only as
follows:''
Under the authority vested in me as President of the United
States, including section 12(a) of the Outer Continental Shelf Lands
Act, 43 U.S.C. 1341(a), I hereby withdraw from disposition by
leasing, for a time period without specific expiration, those areas
of the Outer Continental Shelf designated as of July 14, 2008, as
Marine Sanctuaries under the Marine Protection, Research, and
Sanctuaries Act of 1972, 16 U.S.C. 1431-1434, 33 U.S.C. 1401 et seq.
This modification affects the following planning areas: Washington-
Oregon; Northern, Central, and Southern California; South, Mid-, and
North Atlantic; and Central and Eastern Gulf of Mexico. Portions of
these planning areas have been closed to leasing pursuant to
congressional moratoria in annual appropriations statutes from the
1980's to the present.
Also pursuant to the Gulf of Mexico Energy Security Act of 2006,
Congress placed off limits until 2022 the Eastern Gulf within 125 miles
of Florida, all of the Eastern Gulf east of 86 degrees, 41 minutes West
longitude, and a portion of the Central Gulf within 100 miles of
Florida. See Figure 2. The President's June 16 and July 14 statements
continue to recognize that deference should be paid to the coastal
states, but calls for discontinuing the restrictions so the states have
the option to decide whether to support offshore activity. As with the
RFI issued in August 2005 (70 FR 49669) for the current program, we are
asking for input from the states, local governments, and other
interested parties as to whether and how their interest in offshore
resources has changed. Based upon expressions of such interest in the
initiation of the current program, areas under restriction were
included in the program proposals and the approved program includes
three areas that had not been considered for leasing for many years--
the North Aleutian Basin, Alaska; a portion of the Gulf of Mexico; and
an area in the Mid-Atlantic off the coast of Virginia. Only the area
off Virginia remains under a congressional ban. Had these areas not
been included in the Draft Proposed Program, they could not have been
in the approved program.
As set forth in more detail later in this notice, the information
requested 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. 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 include in the draft proposed program. Pursuant
to section 18, included areas will be subject to further analysis as
well as review and analysis under NEPA. The Secretary also seeks
comments on whether the Congressional restrictions should be eliminated
or modified.
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 upon 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 and development on the environment. Specific factors that
must be analyzed and considered in deciding where and when to lease
include the following: (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
[[Page 45068]]
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 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 potential for environmental damage, the discovery of
oil and gas, and adverse impact on the coastal zone, for which DOI uses
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 oil and gas leasing for the new 5-year
period. 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
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 oil and gas
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 and development 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 sea lanes,
potential sites of deepwater ports (including liquefied natural gas
facilities), potential offshore wind, wave, current or other
alternative energy sites, and other anticipated uses of OCS resources
and locations;
(6) Relative environmental sensitivity and marine productivity of
the different planning areas and/or a 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 oil and gas 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 OCS oil and gas leasing
as part of a comprehensive national energy policy? How should the 5-
year program be structured to fulfill this role?
(ii) Since recent studies have projected shortfalls in meeting
energy needs, particularly natural gas, how could 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) Should areas under Congressional moratoria be included in the
new 5-Year Program? What areas? With Sales proposed in what time-frame?
(iv) 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''?
(v) 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?
(vi) How should ecological considerations be weighed against
national and local economic benefits, if new areas are considered for
oil and gas leasing?
(vii) If new areas are not leased for exploration and potential
development, what environmental impacts do you foresee from imports of
oil and gas?
(viii) Is there a strategic advantage to considering sources of oil
and gas in areas currently under congressional moratoria to potentially
diversify OCS energy development?
Specific
States
As every state is feeling the effects of increased oil and gas
prices and thereby is potentially impacted by the possibilities of
enhanced domestic energy production, a letter soliciting such
information has been sent to the governors of all 50 states. For
coastal states, 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
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. In addition, for non-coastal and coastal states we
request information on the impacts of rising prices and potential
shortages on your economies and citizens and their roles in the
national economy.
Oil and Gas Industry
As specified in section 18(a)(2)(E) of the OCS Lands Act, MMS
requests that oil and gas industry respondents provide information
indicating interest in the opportunity to lease and develop additional
OCS oil and gas resources. Respondents should base this information
upon their expectations as of 2010. 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 that industry respondents provide
additional information as specified below. Upon 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 regardless of whether the
area is currently under
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Congressional moratoria. 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
2010-2015 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.
(3) The MMS estimated resource potential in moratoria areas is
based on a limited number of wells, and very old (25 years) seismic
data. How might seismic data be acquired in these areas?
(4) Indicate the lead time to production (should new leasing be
allowed to occur in previously restricted areas) in areas that are not
part of the current program, relative to lead-times to new production
in previously leased areas like the Central and Western Gulf of Mexico.
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. Upon request, 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 2010-2015 leasing program, subject to the standards of the
Freedom of Information Act. However, MMS will not treat as confidential
any aggregate summaries of privileged or proprietary information, the
names of respondents, or comments not containing such information. As
noted above, respondents should affix the label ``Contains Confidential
Information'' on any envelope containing privileged or proprietary
information.
Department of Commerce
Pursuant to section 18(f)(5) of the OCS Lands Act and implementing
regulations at 30 CFR 256.20, 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, MMS requests
information concerning regional and national energy markets, OCS oil
and gas production goals, and oil and gas transportation networks. We
have sent a letter to the Secretary of Energy soliciting such
information.
Dated: July 29, 2008.
Randall B. Luthi,
Director, Minerals Management Service.
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[FR Doc. E8-17708 Filed 7-31-08; 8:45 am]
BILLING CODE 4310-MR-P