[Federal Register Volume 75, Number 63 (Friday, April 2, 2010)]
[Notices]
[Pages 16833-16836]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7579]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Preliminary Revised 5-Year Outer Continental Shelf (OCS) Oil and
Gas Leasing Program for 2007-2012
AGENCY: Minerals Management Service, Interior.
ACTION: Notice of availability and request for comments.
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SUMMARY: The Minerals Management Service (MMS) requests comments on the
Preliminary Revised 5-Year OCS Oil and Gas Leasing Program for 2007-
2012. This is the Preliminary Revised Program (PRP), required by the
order of the U.S. Court of Appeals for the District of Columbia in
Center for Biological Diversity v. U.S. Dept. of Interior, DC Cir. No.
07-1247, 07-1344, for lease sales covering the 2007-2012 time frame.
DATES: Please submit comments and information to the MMS no later than
May 3, 2010.
Public Comment Procedure
The MMS will accept comments in one of three formats: By our
Internet commenting system, e-mail, or regular mail. 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.
Before including your address, phone number, e-mail address, or other
personal identifying information in your comment, you should be aware
that your entire comment, including your personal identifying
information, may be made publicly available at any time. While you can
ask us in your comment to withhold your personal identifying
information from public review, we cannot guarantee that we will be
able to do so. See further information about commenting below.
The MMS encourages commenters to focus on the expanded relative
environmental sensitivity analysis and the Secretary's revisions to the
leasing schedule that reflect his balancing of the potential for
discovery of petroleum with the potential for harm to the environment
or coastal zone. The balance of the PRP document consists of analyses
that were already subject to public comment prior to July 2007.
ADDRESSES: You may submit comments on the PRP by any of the following
methods.
Federal eRulemaking Portal: http://www.regulations.gov. In
the entry titled ``Enter Keyword or ID,'' enter docket ID MMS-2009-OMM-
0016 then click search. Under the tab ``View By Docket Folder'', you
can submit public comments and view supporting and related materials
available for this Notice. The MMS will post all comments.
E-mail: [email protected].
Mail or hand-carry comments on the PRP to the Department
of the Interior; Attention: Leasing Division (LD); 381 Elden Street,
MS-4010; Herndon, Virginia 20170-4817. Please reference ``Remand of the
2007-2012 OCS Oil and Gas Leasing Program'' in your comments and
include your name and address.
FOR FURTHER INFORMATION CONTACT: Renee Orr, 5-Year Program Manager, at
(703) 787-1215.
SUPPLEMENTARY INFORMATION: On June 29, 2007, the previous Secretary
approved the Proposed Final OCS Oil and Gas Leasing Program for 2007-
2012 (PFP) that became effective on July 1, 2007.
On July 2, 2007, the Center for Biological Diversity filed suit
against the Department of the Interior (DOI) alleging agency failures
under various laws in relation to the OCS 2007-2012 leasing program. On
August 28, 2007, the Native Village of Point Hope, Alaska Wilderness
League, and Pacific Environment filed a similar suit. The cases were
consolidated.
On April 17, 2009, the U.S. Court of Appeals for the District of
Columbia Circuit vacated and remanded DOI's OCS 2007-2012 leasing
program. The Court found that DOI's determination of when and where to
offer areas for leasing of oil and gas resources was based on a flawed
analysis that failed to assess fully the relative environmental
sensitivity and marine productivity of the OCS because it looked only
at the effects of spills on the shoreline. The Court specified that on
remand the Secretary must first conduct a more complete comparative
analysis of the environmental sensitivity of different areas of the
OCS, as required under section 18(a)(2)(g) of the OCSLA, and must at
least attempt to identify those areas most and least sensitive to OCS
activity. The Court directed the Secretary to rebalance the program
under the factors set forth in section 18(a)(3) of the OCSLA once this
new analysis is complete.
Pursuant to the Government's petition for amendment and/or
clarification of the Court's order, on July 28, 2009, the Court issued
an order staying its mandate until DOI completed its analysis and
rebalancing under the OCSLA. The Court also clarified that the relief
granted in its April 17th decision applied only to the Beaufort,
Chukchi, and Bering Seas off Alaska. The Bering Sea includes the North
Aleutian Basin OCS Planning Area, the only planning area in the Bering
Sea with lease sales scheduled in the 2007-2012 PFP.
At the direction of the Secretary, MMS re-analyzed all 26 OCS
planning areas to better determine the relative environmental
sensitivity of several ecological components to multiple impacts of
offshore oil and gas development. The original environmental
sensitivity analysis relied on only two studies conducted by
Continental Shelf Associates in 1990 and 1991, and one dataset, the
National Oceanic and Atmospheric Administration's Environmental
Sensitivity Index (ESI) (http://response.restoration.noaa.gov). The
expanded analysis continues to rely on
[[Page 16834]]
those sources to analyze the sensitivity of shoreline/coastal habitats,
but also analyzes the sensitivity of offshore/marine resources to oil
and gas activities.
The expanded environmental sensitivity analysis is divided into the
three components of the marine environment that may be affected by oil
and gas activities: marine habitats, marine productivity, and marine
fauna (i.e., birds, fish, marine, and sea turtles). The expanded
analysis considers the relative sensitivity of the marine environment
of all 26 planning areas to oil spills and other potential factors,
such as sound, physical disturbance, climate change, and ocean
acidification. The expanded analysis relies on approximately 50 reports
and studies, including many that were not considered when the original
2007-2012 relative environmental sensitivity analysis was prepared.
Distribution, abundance, and/or environmental sensitivities of four
ecological components within and/or on the adjacent coast of each OCS
planning area are evaluated based on their present condition. Because
relatively small differences suggest a level of precision that is not
possible for this analysis, the revised analysis presents the OCS
planning areas grouped into four categories of relative sensitivity
ranging from ``most'' to ``least'' sensitive to OCS oil and gas
activities. Categorization of an OCS planning area as ``less'' or
``least'' sensitive does not mean that environmental resources of that
OCS planning area are not sensitive, but that they are found to be
relatively less sensitive than other OCS planning areas to the types of
impacts anticipated from OCS oil and gas activities. The revised
analysis identified the OCS planning areas ``most'' sensitive to OCS
oil and gas activities as the South Atlantic, Eastern Gulf of Mexico,
Mid-Atlantic, and Central Gulf of Mexico, and the ``least'' sensitive
as the Aleutian Arc, Navarin Basin, Bowers Basin, and Aleutian Basin,
all in the OCS southwest of Alaska.
In support of his PRP decisions, the Secretary relied on the
expanded environmental sensitivity analysis described above; the PFP
for 2007-2012 and the supporting administrative record, including the
April 2007 analysis of the other OCSLA section 18 factors; and the 2007
Final Environmental Impact Statement (EIS) and all comments, reports,
and studies incorporated therein. The decision is based on the
Secretary's independent review of the record and fulfills his statutory
obligation under section 18(a)(3) to obtain a proper balance between
the potential for environmental damage, the potential for the discovery
of oil and gas, and the potential for adverse impact on the coastal
zone, in accordance with the Court's remand order. Thus, while the
environmental sensitivity analysis is expanded, it is important to
remember that the Secretary's decisions are not based on just one
factor, but require consideration of all section 18 factors and the
other supporting information and subsequent balancing as described
below. For example, the Secretary's decision to remove the Beaufort and
Chukchi Seas sales, other than Chukchi Sea Sale 193, recognizes the
importance of gathering additional information from activities on
existing leases and ongoing research into oil-spill cleanup in icy
waters to help MMS and industry plan for future leasing.
Following the end of the comment period, the Secretary will
consider any comments received in making his final decision on a final
revised leasing program for 2007-2012. Pursuant to the Court's July 28,
2009 order, DOI will file an appropriate motion regarding disposition
of the litigation.
The PRP document may be downloaded off the MMS Web site at http://www.mms.gov. The document also is available as part of our electronic
commenting system noted above. Hard copies will be made available to
persons who contact the 5-Year Program Office at 703-787-1215.
Much of the text of the document is repetitive of the April 2007
PFP document, as approved on June 29, 2007. New text is shown in a
larger font to distinguish it from the text retained from the 2007 PFP
document and some text from the PFP has been rewritten or not included
as appropriate to reflect the revised decision. Please refer to the PFP
for historical information.
Summary of the Preliminary Revised Program
The PRP includes 16 sales in 6 areas (2 areas off Alaska, 1 area
off the Atlantic coast, and 3 areas in the Gulf of Mexico. Maps A and B
show the areas scheduled for leasing (Preliminary Revised Program
areas). Table A lists the location and timing of the proposed lease
sales in areas that are offered for leasing consideration, including
Sale 224 in the Eastern Gulf of Mexico Planning Area, a sale mandated
by the Gulf of Mexico Energy Security Act (GOMESA) of 2006 (Pub. L.
109-432, December 20, 2006) and exempted from section 18 analysis.
Table A--Preliminary Revised Program for 2007-2012--Lease Sale Schedule
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Sale No. Area Year*
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204.............................. Western Gulf of Mexico... 2007
205.............................. Central Gulf of Mexico... 2007
193.............................. Chukchi Sea.............. 2008
206.............................. Central Gulf of Mexico... 2008
224.............................. Eastern Gulf of Mexico**. 2008
207.............................. Western Gulf of Mexico... 2008
208.............................. Central Gulf of Mexico... 2009
210.............................. Western Gulf of Mexico... 2009
211.............................. Cook Inlet............... 2009
213.............................. Central Gulf of Mexico... 2010
215.............................. Western Gulf of Mexico... 2010
216.............................. Central Gulf of Mexico... 2011
218.............................. Western Gulf of Mexico... 2011
219.............................. Cook Inlet............... 2011
220.............................. Mid-Atlantic............. 2011
222.............................. Central Gulf of Mexico... 2012
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* All of the sales scheduled for 2007-2009 listed above were conducted
prior to the preparation of this PRP, with the exception of Cook Inlet
Sale 211 that was not held due to lack of expressed industry interest.
Sale 193 in the Chukchi Sea is the only sale conducted in an area
subject to the Court's remand.
** Sale 224 is not a section 18 sale, but mandated by GOMESA.
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Alaska Region
In the Alaska Region, the PRP retains one lease sale in the Chukchi
Sea Planning Area and two special interest sales in the Cook Inlet
Planning Area. The Chukchi Sea sale is a carryover from the 2002-2007
program because there was insufficient time to complete the necessary
pre-lease steps and environmental documentation during the program
period. Chukchi Sea Sale 193 was held in 2008.
The Cook Inlet Planning Area is retained on the schedule with two
special interest sales. However, there was no industry interest
expressed in the 2008 Request for Interest and Sale 211 was not held.
Consistent with the Secretary's approach of developing frontier
areas based on the best available science and other data, the PRP
removes Beaufort Sea Sales 209 and 217 and Chukchi Sea Sales 212 and
221 from the 2007-2012 program.
Sale 214 in the North Aleutian Basin also is removed due to the
area's unique value to Alaska and the Nation. The North Aleutian Basin
contains nationally significant fishery resources as compared to other
Alaska planning areas, supporting the greatest diversity of fish
species for all Alaska areas. It also is adjacent to more national
monuments and wildlife reserves than any other Alaska OCS area.
Therefore, the Secretary concluded that the area should not be leased.
For the Beaufort Sea and Chukchi Sea Planning Areas, the Secretary
determined that, on balance, lease sales in the Arctic under the 2007-
2012 program, other than Chukchi Sea Sale 193, are not justified at
this time. Before additional lease sales are offered, it is important
to gather additional scientific information and data from exploration
on existing leases. This decision reflects the potential difficulty of
removing oil spilled in icy waters, limited infrastructure available to
respond to spills, and environmental considerations such as climate
change. There is research underway that along with new information will
provide the opportunity to make more informed decisions regarding
Arctic sales in the next 5-year program. Secretary Salazar has also
requested that the United States Geological Survey (USGS) conduct an
initial, independent evaluation of science needs to understand the
resilience of Arctic coastal and marine ecosystems to OCS resource
extraction activities. The study will summarize what information is
available, where knowledge gaps exist, and what research is needed to
mitigate risks. This type of information will help target areas for
future lease sales and allow better prevention and mitigation of
environmental impacts. Industry holds many existing leases that have
yet to be explored. In the Beaufort Sea, there are 181 leases
(approximately 0.96 million acres) issued under the 2002-2007 program
and in the Chukchi Sea, there are 487 leases (approximately 2.75
million acres) issued in Chukchi Sea Lease Sale 193 in the current
program. The removal of these areas from further leasing in the PRP
should not be construed to suggest that the exploration of existing
leases cannot be conducted safely.
Gulf of Mexico Region
The Central and Western Gulf of Mexico Planning Areas provide a
large share of domestic oil and gas production and are a major source
of employment for nearby States. Although vigilance is still necessary
in protecting environmental resources and local communities, the areas
are supported by a vast system of infrastructure. Gulf of Mexico oil
and gas activities provide an important spur to technological
innovation and industry has a track record of safe activity. In
addition, OCS activity in the Gulf draws significant support from
adjacent State and local governments as well as from local citizens.
Therefore, the PRP retains the annual, area wide lease sales on the
schedule for 2007-2012 in the Central and Western Gulf of Mexico.
Atlantic Region
As in the PFP, the PRP retains Mid-Atlantic Sale 220 offshore
Virginia as a special interest sale. The MMS estimates that the area
comprising Sale 220 could contain 130 million barrels of oil and 1.14
trillion cubic feet of natural gas. This area had been subject to
Presidential withdrawal under section 12 of the OCSLA as well as
Congressional moratorium. As the withdrawal was lifted and the
moratorium discontinued in 2008, a request for nominations and comments
was issued in November 2008. No other pre-lease steps have occurred.
The next step in this process would be scoping for the Draft EIS.
Assurance of Fair Market Value
Section 18 of the OCSLA requires receipt of fair market value for
OCS oil and gas leases and the rights they convey. The PRP retains the
provisions of the PFP: Setting minimum bid levels by individual lease
sale based on market conditions and continuing use of a two-phase bid
evaluation process.
Information Requested
Section 18(g) of the OCSLA authorizes confidential treatment of
privileged or proprietary information. In order to protect the
confidentiality of such information, respondents should submit it
separately from other comments submitted and mark it prominently as
confidential. On request, MMS will treat such information as
confidential from the time of its receipt until 5 years after approval
of the revised leasing program, subject to the standards of the Freedom
of Information Act. The MMS will not treat as confidential any
aggregate summaries of such information, the names of respondents, and
comments not containing such information.
Dated: March 30, 2010.
S. Elizabeth Birnbaum,
Director, Minerals Management Service.
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