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Geneva Conventions of 1958.12—Provides for a territorial sea of three miles, a contiguous zone up to 12 miles, and a continental shelf “to a depth of 200 meters or to where the depth ... admits to exploration ..

National Gas Pipeline Safety Act of 1968.13—Establishes requirements for the placing of pipelines.

National Environmental Policy Act of 1969.14—Provides requirements through regulations for draft environmental impact statements, hearings, and final environmental impact statements as to areas of leasing and actual leases.

Occupational Safety and Health Act of 1970.15–Requires employers, including those engaged in OCS development activities, to provide a safe working environment for all employees.

Federal Water Pollution Control Amendments of 1972.16_Limits and controls the discharge of oil or hazardous substances into or upon the navigable waters.

Marine Protection, Research and Sanctuaries Act of 1972.17-Authorizes the designation of marine sanctuaries which may extend to the outer limit of the continental shelf.

Coastal Zone Management Act of 1972.18_Provides federal assistance to coastal states to enable them to develop and administer their own coastal management programs, and for consistency of federal programs with approved plans.

Deepwater Port Act of 1974.19—Provides for the regulation of the location, ownership, construction, and operation of deepwater ports beyond the territorial limits of the United States.

Fishery Conservation and Management Act of 1976.20--Establishes a 200-mile fishery conservation zone off the U.S. coasts and provides that the United States have exclusive management authority over fish within the zone. The measure provides for international agreements allowing foreign fishing within the zone.

Coastal Zone Management Act Amendments of 1976.21_Provides loans, bond, guarantees, and automatic grants to states adjacent to or near Outer Continental Shelf Lands on which oil or natural gas is being produced. The Federal Function

The Administration of the oil and gas resources on the OCS is primarily conducted, pursuant to the Outer Continental Shelf Lands Act, by the Department of the Interior. However, from the Authorities granted by the legislation cited above and other statutes, a number of Federal agencies have responsibilities in OCS resource development.22 Department of the Interior.-The Secretary is authorized to grant oil and gas leases on OCS tracts not exceeding 5,760 acres (3 miles by 3 miles) for a period of 5 years and for as long thereafter as further activity is approved or production occurs. The Department is advised by the OCS Environmental Studies Advisory Committee, the OCS Advisory Board, and the National Petroleum Council.

12 Convention with Territorial Sea and the Contiguous Zone, U.N. Doc. A/Conf. 13/L.52, T.I.A.S. 5639; Convention on the Continental Shelf, U.N. Doc. A/Conf. 13/L.55, T.I.A.S. 5578.

13 Public Law 90–481, 82 Stat. 720, 49 U.S.C. 1071 et seq. 14 Public Law 91-190, 83 Stat. 854, 42 U.S.C. 4321 et seq. 15 Public Law 91-596, 84 Stat. 1590, 29 U.S.C. 651 et seq. 16 Public Law 92-500, 86 Stat. 816, 33 U.S.C. 1251 et seq. 17 Public Law 92–522, 86 Stat. 1028–1946, 16 U.S.C. 1361, 1362. 1371-84, 1401–7. 18 Public Law 89–545, as added Public Law 92-583, 86 Stat. 1281, 16 U.S.C. 1451 et seq. 19 Public Law 93-627, 88 Stat. 2146, 33 U.S.C. 1501 et seq. 20 Public Law 94–265, 90 Stat. 331, 16 U.S.C. 1801 et seq. 21 Public Law 94-370, 90 Stat, 1013, 16 U.S.C. 1451 et seq.

22 For a description of the various statutory responsibilities of the Federal agencies as to OCS activities, see "Agency by Agency Analysis, Federal Role in OCS Oil and Gas Development”, prepared for this Committee by Oceans Program of the Office of Technology Assessment (May 1977) (available as a committee print of the committee).

Within the Department of the Interior, the Bureau of Land Management (BLM) administers the leasing provisions of the OCSLA. BLM (a) receives nominations and selects tracts to be included in a lease sale; (b) prepares an environmental impact statement for each sale; (c) makes an economic, engineering and geological evaluation of tracts to be sold; (d) receives the bids and determines whether leases should be awarded to the highest bidders on individual tracts; (e) receives revenues from lease sales; and (f) grants in certain circumstances rights of way for pipelines.

The United States Geological Survey (USGS) has the primary responsibility within the Department for overseeing the development of a tract once it has been leased. USGS (a) through its area supervisors and in consultation with the petroleum industry, issues detailed regulations and special OCS orders and notices covering operational activities; (b) enforces OCS regulations and notices; (c) issues geophysical and geological exploration permits; (d) approves postlease exploration and development plans, including the issuing of permits for both exploratory and development drilling; (e) approves pipelines as part of field development; and (f) collects royalties (which are deposited in the general treasury).

Finally, the Fish and Wildlife Service in Interior has a broad mandate to study, protect, and manage fish and wildlife resources and promote maximum use and enjoyment of wildlife resources compatible with their perpetuity.

Certain related activities may be conducted by the National Park Service, the Bureau of Indian Affairs, the Bureau of Mines, and the Bureau of Outdoor Recreation.23

Department of Commerce.The National Oceanic and Atmospheric Administration (NOAA), within the Commerce Department, has several relevant OCS-related responsibilities.

The Coastal Zone Management Act of 1972 authorizes the Secretary of Commerce to provide grants-in-aid to coastal states to encourage the establishment of management programs for uses of land and water in coastal areas, and to require consistency of Federal programs with approved state plans.

23 The Conference Report (S. Rpt. 95–367) on legislation to establish a cabinet level Department of Energy was filed on July 27, 1977. It was then passed by both Houses and is now law. Under it there is a transfer from the Secretary of Interior to the Secretary of Energy of authority under the Outer Continental Shelf Lands Act, the Mineral Lands Leasing Act, the Mineral Leasing Act for Acquired Lands, the Geothermal Steam Act of 1970, and the Energy Policy and Conservation Act relating to: (1) Fostering competition for_Federal leases;

(2) implementation of alternative bidding systems for the award of Federal leases ; (3) establishment of diligence requirements for operations of Federal leases ; (4) setting rates of production for Federal leases ; and (5) specifying the procedural terms and conditions for obtaining and disposing of Federal royalty interest taken in kind. Consultation and coordination between the Department of Interior and the Department of Energy concerning Federal leasing is provided for, including the establishment of a Leasing Liaison Committee. The Department of the Interior shall be the lead agency regarding the preparation of environmental impact statements required by certain sections of the National Environmental Policy Act unless the action is under the exclusive authority of the proposed Department of Energy.

94-224-77-5

The Coastal Zone Management Act Amendments of 1976 provided automatic grants based on oil and gas produced adjacent to, or landed, in coastal states. The Coastal Energy Impact Fund was established to ameliorate adverse impacts from OCS development. The activities encompassed within exploration and development plans, for which Federal permits are required, are subject to a coastal state's certification of consistency with such state's approved coastal zone management program.

The Marine Protection, Research and Sanctuaries Act of 1972 authorizes the Secretary of Commerce, after consultation with the heads of other interested agencies and the approval of the President, to designate areas extending seaward as far as the outer edges of the OCS as marine sanctuaries for preservation or restoration for their conservation, recreational, ecological or esthetic values.

The National Marine Fisheries Service is concerned with all potential impacts on living marine resources and reviews draft and final environmental impact statements. Its responsibilities for commercial fisheries necessitates a deep interest in the impact of OCS operations.

The National Ocean Survey studies tides, currents and other environmental features which affect location and design of offshore structures. Its geodetic work and navigation charts also

have application to OCS operations.

The Environmental Protection Agency.-EPA's role in OCS activities involve its being consulted on all National Environmental Protection Act studies and reviews and in having the authority to set and enforce discharge levels of pollutants. Hence, if EPA finds any BLM Environmental Impact Statement (EIS) is unsatisfactory, it can exercise its limited protest function and refer the matter to ČÉQ. Under the Federal Water Pollution Control Act Amendments of 1972, EPA must issue National Pollutant Discharge Elimination System permits for exploratory and development drilling if discharges are involved.

Council on Environmental Quality - The CEQ reviews both the draft Environmental Impact Statement and the final Environmental Impact Statement prepared by the Bureau of Land Management. Any protest on the final EIS lodged by the EPA will be considered by the CEQ.

The Department of Transportation.—The Coast Guard, located within the Department of Transportation, has several OCS responsibilities including (a) insuring that structures on the OCS are properly marked to protect navigation; (b) establishing and enforcing certain safety regulations for OCS structures; (c) inspecting and certifying floating drilling rigs; (d) maintaining surveillance for oil spilled or discharged into the waters over or immediately adjacent to the OCS; (e) coordinating the National Oil and Hazardous Substance Pollution Contingency Plan; and (f) regulating vessels.

The Office of Pipeline Safety (OPS), in the Transportation Department, has responsibility for the safety of pipelines, including establishing design criteria, and conducting inspections. In addition, OPS has the responsibility for establishing and enforcing remilations for pipelines connecting offshore platforms with onshore facilities, as

a

set out by a Memorandum of Understanding with the USGS, signed in the summer of 1976.

The Department of Defense.--The OCSLA and the 1899 Rivers and Harbors Act charge the Secretary of the Army with responsibility for preventing obstructions to navigation. The Corps of Engineers requires that a permit be obtained before an oil or gas structure may be placed on the OCS.

The Department of Labor and the Department of Health, Education, and Welfare. Both Departments have responsibilities under the Occupational Safety and Health Act of 1970. HEW makes evaluations of working conditions and provides technical assistance to employers. The Labor Department is responsible for establishing and enforcing interim and some final rules established to provide employees with a safe working environment. OSHA retains jurisdiction over issues which are not specifically regulated by the U.S. Coast Guard or U.S. Geological Survey. OSHA has no regulations which pertain solely to the OCS, but it does have a new diving standard, still subject to modification, which does directly affect operations in this area. All OSHA General Industry, Construction, and Maritime Standards have general applicability on the OCS. Currently OSHA, USGS and USCG are attempting to clarify overlapping jurisdictions and regulations.

Federal Power Commission.—The FPC has jurisdiction over common carrier pipelines. It has broad discretionary powers over the approval, design and economics of common carrier gas pipelines, and it sets the wellhead price of OCS gas. It also issues certificates of public convenience and necessity required for gas pipeline construction.

The Federal Maritime Commission. - The Federal Water Pollution Control Act Amendments of 1972 requires the Federal Maritime Commission to determine the financial responsibility of oil shippers operating in the oceans adjacent to the U.S. Although most oil produced on the OCS is brought ashore by pipeline, this provision would apply to oil or gas brought ashore by barge or tanker.

The Federal Energy Administration.-FFA has been given the diective to insure that the supply of energy will be sufficient to meet demands. In energy shortages, FEA will establish priority needs. Among its functions is the development of a strategy for selfsufficiency in energy supplies. Its Office of Energy Resource Development is responsible for energy facility siting, construction and licensing.

The FPC and FEA are now part of the new Department of Energy. Steps Involved in the Outer Continental Shelf Leasing Process

The time required to reach initial production and peak production of OCS oil and gas is dependent on a number of factors. The USGS has estimated that the total time required after a lease sale to achieve initial production would be in the range of 4 to 11 years and to attain peak production would be in the range of 7 to 14 years.

The stages leading up to an OCS lease sale, as outlined by the USGS, are as follows:

a

24

24 See also U.S. Congress, "Federal Role in OCS Oil and Gas Development", Office of Technology Assessment: Oceans Program, Washington, D.C., May 1977. (Available as a committee print of this committee.)

STEPS

TIME INVOLVED 1. Leasing planning schedule. The preparation and revision of USGS and BLM work closely in the OCS leasing planning the preparation of the schedule schedule is really an ongoing which is always subject to revi- activity which is determined sion. Review of the schedule itself by changing circumstances. by agencies, industry, State government and the general public is presently conducted under the auspices of the National OCS Advisory Board. USGS determines fair market values for tracts, which are later used to evaluate bids.

2. Request for tract nomina Request is published about 15 tion. By way of publication in months prior to target date for the Federal Register, industry, the any proposed OCS lease sale. States, and the general public are Time given for tract nominaasked to designate tracts in a tions is officially 60 days. broad offshore region they think should or should not be offered for lease. This represents the major decision point initiating the lease

sale process.

3. Selection of general areas for Selection of tentative tracts and inclusion in a lease schedule.-In- notification takes about 60 to formation received in tract nom- 90 days. Factors underlying seinations is used to make a tenta- lection include initial assesstive selection of tracts to be con- ments of oil and gas potential, sidered in a proposed lease sale. environmental resources that Before making these selections, in- might be affected, availability formation is provided to adjacent of technology, proximity to States as to relative interest ex- markers, etc. pressed in the area proposed for sale. The Secretary's decision on tracts to be included initiates the preparation of an EIS by BLM.

4. Draft environmental impact Preparation of the draft environstatement.-A draft statement is mental statement takes about 3 prepared by BLM and submitted to 6 months. When ready, it is to CEQ that includes much infor- made available for public remation as a description of the view; a notice of availability is lease proposal, a description of the published in the Federal Regisoffshore and nearby onshore envi- ter and a news release is issued ronment, a detailed tract-by-tract accordingly. Forty-five days analysis on possible adverse im- are allowed for review by Fedpacts, mitigating measures, alter- eral agencies, State and local native proposals, technology nec- governments and the general essary for exploration, develop- public. ment, and production from the proposed sale, as well as possible onshore socioeconomic impacts.

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