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spills. Tankers contracted for after 1979 would be required to have double bottoms.

May 17, 1977.-Secretary Cecil D. Andrus outlined his new policy for oil and gas leasing on the OCS, presenting a new, more realistic planning schedule for lease sales through 1978 to replace the one issued in January by his predecessor, Secretary Thomas Kleppe. Sales in environmentally sensitive areas off Alaska, California, and the Southern Atlantic Coast were deferred. Secretary Andrus indicated that the final decision on all sales would be made after all NEPA requirements had been met and after consultation with the governments of the affected States.

May 19, 1977.-OCS Sale No. 42, covering 225 tracts totaling 1,085228 acres in the Gulf of Mexico was announced for June 23, 1977.

May_23, 1977.—In a far-ranging environmental message to Congress, President Carter endorsed proposals in Congress (H.R. 1614; S. 9) to require a pause between exploration and development of the Outer Continental Shelf and concellation of leases with compensation where development could create unacceptable environmental risks. Also, new procedures for preparing environmental impact statements for the OCS were ordered so as to satisfy the information requirements of State and local governments.

May 27, 1977.-Nominations and comments for proposed OCS sale No. 65, scheduled for August 1978 in the Eastern Gulf of Mexico, were sought.

June 8, 1977.—The Interior Department announced the cancellation of two Federal oil and gas leases in the Gulf of Mexico, citing a lack of drilling activity.

June 22, 1977.—Eight Western European nations agreed on a program to deal with oil-well blowouts and pollution in the North Sea.

June 23, 1977,-OCS Sale No. 42 was held in New Orleans netting $1.2 billion high bids for the right to develop oil and gas leases in the Gulf of Mexico.

June 28, 1977.—The GAO released its report on "Outer Continental Shelf Sale 40—Inadequate Data Used to Select And Evaluate Lands to Lease.” Its criticisms and conclusions were similar to those enumerated in GAO's report on OCS Lease Sale No. 35. Although industry bidding was greater, this did not mean the most productive areas were offered. An exploration program to appraise our OCS resources was recommended.

June 29, 1977.-Secretary Andrus endorsed new conditions for onshore facilities proposed by the State of California. The proposal would govern the storage, treatment, and transportation of oil produced by Exxon from the Sante Ynez unit of the Santa Barbara Channel.

June 29, 1977.—The OCS Advisory Board urged the enactment of Outer Continental Shelf Lands Act Amendments.

June 30, 1977.—The House Select OCS Committee began markup of H.R. 1614.

July 11, 1977.-It was announced that the USGS proposed the standardization of all orders regulating the exploration, development, and production of oil and gas on the OCS.

July 14, 1977.—Interior announced the publication of proposed rulemaking regarding lease suspensions and the timing and type of environmental studies to be undertaken. The proposals were designed

to realize certain objectives of the environmental message enunciated by President Carter on May 23, 1977.

July 14-15, 1977.-The Senate debated, amended and passed S. 9 (companion to H.R. 1614). The vote on final passage was 60–18.

July 22, 1977.—The Department of Labor promulgated final worker's safety standards for divers. The standards specifically apply to OCS activities.

July 26, 1977.—In a late night session, the Federal Power Commission adopted a settlement with Texaco, Inc. regarding the illegal burning in its Port Arthur, Tex. refineries of approximately 200 billion cubic feet of Federal-domain gas, or enough to heat 325,000 plus homes a year. Under the agreement Texaco will reportedly make amends by selling an equivalent amount to interstate pipelines.

July 27, 1977.—The House Select OCS Committee ended 8 days of markup on H.R. 1614 and ordered the bill reported to the House by a vote of 11-8.

August 25, 1977.—The Court of Appeals for the Second Circuit reversed an earlier decision by a District Judge rescinding the Baltimore Canyon Lease Sale No. 40; citing its confidence in a new Secretary of the Interior to, among other things, hold a second EIS prior to development.

OCS ENERGY RESOURCE DEVELOPMENT IN A SETTING OF CONFLICT

If the Santa Barbara oil spill raised the level of environmental consciousness about OCS operations, the shortfall of domestic energy production and the Arab oil embargo of 1973 had an equally dramatic impact. The potential oil and gas resources on the OCS could reduce the country's dependence on foreign energy supplies and thus its economic vulnerability in relation to the OPĚC nations.

Both trains of thought-environmental protection and the acceleration of OCS oil and gas development-competed for primary ranking in the list of national priorities. President Nixon called for stepping up the OCS lease sale schedule while, at the same time, environmental and citizen organizations, commercial and recreational fishing interests, and other groups, expressed public concern over the possible effects of the proposed rapid development.

Intermixed in this debate were new dimensions of federal/state relations, the genesis for what was President Nixon's theory on New Federalism. State and local governments argued that it was their beaches, estuaries, and other shoreline areas which could be severely damaged by an OCS-related spill. It was their onshore coastal lands which would be the sites for the necessary support facilities. It was their coastal communities which would experience possible “boom town” effects from the offshore development. Yet, this was a federal decision and a federally-administered process over which the states received no financial assistance. Monies received from OCS bonuses, rentals and royalties went into the United States Treasury—not those of the affected coastal states.

Consequently, while States and local governments were joining forces with some environmental groups based on ecological concerns, they were also expressing their disapproval of the Interior Department's OCS leasing process. It is, many coastal State governors argued, a process in which the affected governments had no true participation and no access to important data. The 1975 United States v. Maine case, in which thirteen Atlantic coast States claimed ownership of the continental shelf off their shores, can be viewed, in part, as a symbolic protest against the policies and procedures of the Federal Government in general and the Department of the Interior, in particular.

A number of lawsuits have been filed by States and communities to postpone proposed OCS lease sales on the Interior Department's accelerated schedule.

Despite this, three different trends have been manifested in recent OCS lease sales, although it is premature to judge if these patterns will persist.

There has been a considerable slippage in the Interior Department's lease sales schedule. Although six sales were scheduled for 1975, only four were conducted. Six sales were also planned for 1976, but again only four were held. One sale has been invalidated (OCS Sale No. 40).

The number of tracts actually offered for sale (compared with the number nominated) and the number actually bid on (compared with the number offered) appears to be smaller than what would be expected under an accelerated OCS program. The former Secretary of the Interior withdrew a number of tracts shortly before the California sale in December, 1975 and the Alaskan sale in April, 1976. And, in both cases, the oil companies bid on significantly fewer tracts than those offered. Again in the August, 1976 Baltimore Canyon lease sale, a little less than two-thirds of the tracts offered received bids. (See table 3.) 28

On the part of the Executive, the accelerated leasing program has undergone a serious review by the new Secretary of Interior. The previous administration announced a new leasing program less than two weeks before emplacement of the new administration. The new Secretary, upon his taking office, promptly canceled the upcoming sale of oil and gas leases in Alaska's Cook Inlet, previously publicized by the former Secretary of Interior 2 days before the change in administrations. Subsequently a revised leasing schedule was published in May, 1977. For comparative purposes the January and May leasing schedules are presented in figures 6 and 7, respectively.

28 To date the Interior Department has collected roughly $24.0 billion in OCS bonuses, rentals and royalties.

TABLE 3.-OCS LEASE SALES

94-224-77—4

OCS sale number

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38
27
34
127
18
78
132
129
147

96, 389
93, 764
73, 360
593, 485

55, 872
366, 682
604, 029
697, 643
817, 297

26
16
21
127
13
74
119
104
89

61, 628
60, 153
50, 889
593, 485

42, 222
346, 693
548, 374
566, 573
496, 917

20
16
19
118
11
62
116
100
87

48, 504
60, 153
44, 642
551, 398

37, 222
290, 321
535, 874
547, 173
485, 397

$44, 037, 339
66, 908, 196

97, 769, 013
815, 784, 660
95, 304,523

585, 827, 925
1,655, 519, 631
1,531, 397, 380
1, 491,065, 231

Jan. 14, 1969 Louisiana
Dec. 16, 1969 .do.
July 21, 1970 do.
Dec. 15, 1970 do.
Nov. 4, 1971 do.
Sept. 12, 1972 do
Dec. 19, 1972 .do
June 19, 1973 Texas-Louisiana.
Dec. 20, 1973 Mississippi,

Alabama, and

Florida.
Mar. 28, 1974 Louisiana.
May 29, 1974 Texas.
July 30, 1974 Louisiana-Texas.
Oct. 16, 1974 Louisiana.

do Louisiana Royalty
Feb. 4, 1975 Texas
May 28, 1975 Louisiana-Texas
July 29, 1975 do
Dec. 11, 1975 So. California
Feb. 18, 1976 Gulf of Mexico..
Apr. 13, 1976 Gulf of Alaska..
Aug. 17, 1976 Delaware, Maryland,

and New Jersey.
Nov. 16, 1976 Texas, Louisiana..
June 23, 1977 Texas, Louisiana,

Mississippi, and
Alabama

37
38
38a.
35.
41.
39
40

206
245
258
287

10
515
283
345
231
132
189
154

930, 918
1, 355, 678
1, 298, 739
1, 370, 031

51, 515
2,870, 344
1, 346, 432
1, 772, 958
1,258, 189

687, 604
1,008, 499

876, 750

114
123

49
149

8
143
102
80
70
41
81
101

522, 397
680, 335
249, 704
693, 172
40, 755
796, 367
486, 327
408, 009
384, 540
191, 718
465, 719
575, 012
201, 825
739, 326

91
102

19
136

8
113
86
66
56
34
76
93

421, 218
565, 112
100, 241
634, 832

40, 755
626, 585
406, 912
336, 301
310, 019
161, 286
409, 057
529, 466

2,092, 510, 854
1, 471, 851, 831

30, 236, 800
1, 427, 242, 455

1,018, 875
274,690, 955 - 4
232, 916, 050
163, 214, 036
417, 312, 141
175, 976, 433

559, 836, 587
1, 127, 936, 425

379, 148, 962
1, 170, 093, 432

44
47.

61
223

254, 488
1,074,536

48
152

43
124

178, 127 605, 427

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PROPOSED OCS PLANNING SCHEDULE

January 1977

(Revises June 1975 Schedule) 1976 1977

1978 SALE AREA

1980
JASONDUFMAMUJASON DUFMAMOJASONDJF MAMUJA SONDUFMAMUJASOND
44 Gulf of Mexico

FNS
CI Cook Inlet

FNS
47 Gulf of Mexico

EPL FNS
42 North Atlantic

ΕΡ FNS
43 South Atlantic

E P FNS 46 Kodiak

E P F

NS
45 Gulf of Mexico

TI E P FNS
48 Southern California

D
T

E P FINS
49 Mid Atlantic

C D TI

Ε ΡΙ NS
Beaufort Sea (near shore)

State - Federal Sale
51 Gulf of Mexico

C D T

E P F NS 53 General Pacific

T!

ΕΡ FNS
54 S. Ailantic Blake Plateau

C D T
E PF NSO

Director, Bureau of Land Management
50 Beaufort Sea 2/

C D T

Ε Ρ FNS
55 Northern Gulf of Alaska

С D T

EP F NS 52 North Ailantic

C D T

Р F NS 56 South Atlantic

C D T

E P F NS
58 Gulf of Mexico

C D T

EPF NS 57 Bering - Norton

C D T

EP F NS
59 Mid-Atlantic

C D T

E P FINS 60 Bering Sea St George

с C DO T

EP FNS 61 Cook Inlet

C D T

P FNS 62 Gulf of Mexico

C D T

E P FNS 63 General Pacific

C D T

EP FNS
64 Kodiak · Aleutian

C D

EPF NS
C. Call for Nominations

P. Public Hearing
D . Nominations Due

Sales are contingent upon technology being available for
F. Final Environmental Statement

impact and the holding of public hearings, as a result of

exploration and development. A decision whether to hold T. Announcement of Tracts

the environmental, technical and economic studies N . Notice of Sale

any of the lease sales listed will not be made until employed in the decision making process, a decision E · Draft Environmental statement S. Sale completion of all necessary studies of the environmental may, in fact, be made not to hold any sale on this schedule.

INTI 1212-77 1 Stale May Conduct Sale 2/ Within 60 Foot Isobath or Technoks; Capability

FIGURE 6

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