Minerals Management Service June 2007 – Federal Register Recent Federal Regulation Documents

The MMS has prepared a draft supplemental environmental impact statement (SEIS) on a tentatively scheduled 2008 oil and gas leasing proposal (Sale 224) in the Eastern GOM, off the States of Louisiana, Mississippi, Alabama, and Florida. As mandated in the recently enacted Gulf of Mexico Energy Security Act (GOMESA) of 2006 (Pub. L. 109-432, December 20, 2006), the MMS shall offer a portion of the ``181 Area,'' located in the Eastern Planning Area, more than 125 miles from Florida for oil and gas leasing. The proposed action involves 130 tracts.

The Minerals Management Service (MMS) is issuing this notice to advise the public, pursuant to the National Environmental Policy Act of 1969 (NEPA), as amended, 42 U.S.C. 4321 et seq., that MMS intends to prepare an environmental assessment (EA) for proposed Outer Continental Shelf (OCS) oil and gas Lease Sale 206 in the Central Gulf of Mexico (GOM) scheduled for March 2008. The MMS is issuing this notice to facilitate public involvement. The preparation of this EA is an important step in the decision process for Lease Sale 206. The proposal for Lease Sale 206 was identified by the Call for Information and Nominations published in the Federal Register on April 28, 2006, and was analyzed in the Gulf of Mexico OCS Oil and Gas Lease Sales: 2007- 2012; Western Planning Area Sales 204, 207, 210, 215, and 218; Central Planning Area Sales 205, 206, 208, 213, 216, and 222Final Environmental Impact Statement; Volumes I and II (Multisale EIS, OCS EIS/EA MMS 2007-018). The proposal does not include approximately 5.8 million acres located in the southeastern part of the Central Planning Area (CPA) which the Gulf of Mexico Energy Security Act of 2006 opened to leasing after many years of appropriations Acts containing leasing moratoria. Because of the limited geological and geophysical data available to industry and the limited environmental review for this area, the MMS has decided that it would be premature to offer this area in proposed Lease Sale 206. Before this area is offered for lease, the MMS will conduct a separate NEPA review to reevaluate the expanded CPA sale area. This EA for proposed Lease Sale 206 will reexamine the potential environmental effects of the proposed lease sale and its alternatives (excluding the unleased blocks near biologically sensitive topographic features; excluding the unleased blocks within 15 miles of the Baldwin County, Alabama, coast; use of a nomination and tract selection leasing system; and no action) based on any new information regarding potential impacts and issues that were not available at the time the Multisale EIS was prepared.

This notice provides the official MMS documentation of which Gulf of Mexico price thresholds have been exceeded by annual market prices for oil or gas, by lease vintage, for calendar year 2006. This notice also explains in detail how MMS calculates the annual oil and gas prices and applicable price thresholds used to determine whether royalty relief applies in calendar year 2006 for our various deepwater and deep depth royalty relief programs.

The proposed federal action addressed in this FEIS (OCS EIS/EA MMS 2007-026) is to offer for lease areas in the Chukchi Sea Outer Continental Shelf (OCS) that might contain recoverable oil and gas resources. This lease sale would provide qualified bidders the opportunity to bid on certain blocks in the Chukchi Sea OCS to gain conditional rights to explore, develop, and produce oil and natural gas. This FEIS is the National Environmental Policy Act (NEPA) analysis to enable the MMS to make informed decisions on the configuration of the lease sale and the applicable mitigation measures. In the FEIS, the potential direct, indirect, and cumulative environmental impacts of the sale, including estimated exploration and development and production activities related to the sale, on the physical, biological, and human environments in the Chukchi Sea area are analyzed. The FEIS also provides NEPA evaluation for exploration activities in the Chukchi Sea, including seismic survey geophysical permitting (30 CFR part 251), ancillary activities (30 CFR 250.207), and exploration plans (30 CFR 250.214). In addition, the FEIS provides information that the U.S. Department of Commerce, National Oceanic and Atmospheric Administration, National Marine Fisheries Service (NMFS) may possibly use for issuance of Incidental Harassment Authorizations to the seismic-survey industry to take marine mammals by harassment, incidental to conducting prelease and ancillary on-lease oil and gas seismic surveys in the Chukchi Sea. To address its NEPA responsibilities, the NMFS is a cooperating agency (as that term is defined in 40 CFR 1501.6).