Nick Snow
Washington Correspondent
WASHINGTON, DC, Aug. 24 -- The US Minerals Management Service is seeking initial public comment on development of its next 5-year Outer Continental Shelf leasing plan for the Gulf of Mexico.
Emphasizing that development for now would be confined to the plan for 2007 through 2012 and not necessarily extended to additional areas of the OCS itself, MMS said it also is seeking public comment on other economic and environmental issues in federal waters.
Sec. of the Interior Gale Norton said the OCS "contains billions of barrels of oil and trillions of cubic feet of natural gas that can be safely produced."
She added, "With our reliance on imports of foreign oil climbing each year, we would be irresponsible if we did not consider how we might develop these abundant domestic resources."
MMS noted that presidential withdrawals or congressional moratoriums have placed more than 85% of the OCS off the Lower 48 states off limits to energy development.
The administration of President George W. Bush supports existing moratoriums in deference to states wanting to determine activities off their coasts, it added.
But MMS also acknowledged that the 2005 energy legislation that Bush signed into law calls for a comprehensive inventory of oil and gas resources on the OCS.
As it drafts its proposal, it said it will seek comment on potential resources on all OCS areas while recognizing "that many of these areas are subject to existing moratoria and will not be fully analyzed for potential leasing."
Norton mentioned the administration's pledge not to propose any new leasing during 2007-12 within 100 miles of Florida's coast in the Eastern gulf planning area.
MMS said it also is asking for public comment on whether existing withdrawals or moratoriums should be modified or expanded and whether Interior should work with Congress to develop gas-only leases.
The American Gas Association said it will recommend expansion of offshore areas available for gas production in order to ease prices for consumers.
"The futures price of natural gas is inching toward $10[/MMbtu] for September deliveries—a clear indication that demand is outpacing production capabilities," AGA Pres. David Parker said.
"Given the projected 40% growth in demand for natural gas by 2025—about two thirds of which will go to generate electricity—many areas of the Outer Continental Shelf currently off limits to production must be opened up," he declared.
Comments are due by Oct. 11.
Contact Nick Snow at [email protected].
