Exploration MMS leaves intact proposed schedule of OCS leasing

The Minerals Management Service has made no changes in its proposed 5 year oil and gas leasing program for the U.S. Outer Continental Shelf. The program, which covers July 1997-June 2002, is the same as the draft proposed program issued last summer (see table, OGJ, Aug. 14, 1995, p. 16). It calls for 16 lease sales, the fewest in any 5 year plan. The agency is due to issue a proposed final program in August. If Congress does not object, it will become final in October.

Feb. 19, 1996

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The Minerals Management Service has made no changes in its proposed 5 year oil and gas leasing program for the U.S. Outer Continental Shelf.

The program, which covers July 1997-June 2002, is the same as the draft proposed program issued last summer (see table, OGJ, Aug. 14, 1995, p. 16). It calls for 16 lease sales, the fewest in any 5 year plan.

The agency is due to issue a proposed final program in August. If Congress does not object, it will become final in October.

MMS Director Cynthia Quarterman said, "The proposed program reflects the input of all affected parties. We've been working with our constituents since November 1994, when we published a Federal Register notice soliciting comments for the new 5 year program. The fact that there were no changes to the draft program demonstrates the benefits of working extensively with affected parties."

The agency also said a draft environmental impact statement is available for the 5-year program. The Feb. 9 Federal Register contains notices of the availability of the proposed program and the draft EIS.

Alternatives

The draft EIS analyses include an option to conduct an Atlantic OCS lease sale in 2000, although it doesn't appear on the proposed schedule.

The EIS examines two additional alternatives for the eastern Gulf of Mexico, a sale in 2001 of an additional 384 deepwater blocks in an expanded program area and a sale in 1999 on deepwater blocks of the expanded program area.

Although neither alternative was chosen for the proposed program, they will be considered again in later program decisions.

MMS will conduct hearings on the adequacy of the draft EIS in Houston, New Orleans, and Mobile, Ala., as well as Anchorage, Yakutat, Homer, Barrow, and Kotzebue, Alas. Dates and times will be published later.

Industry response

Robert Stewart, National Ocean Industries Association president, acknowledged that the proposed leasing plan represents the most modest schedule of leases that has ever been proposed in a 5 year plan.

"However," he said, "in terms of what is politically doable, the plan is the most ambitious schedule of leases the MMS could put forward under the current political climate and still succeed in holding sales.

"Even if leases were offered along the more promising areas of the OCS, it is doubtful industry would be interested because of the beating it has taken when it has invested in controversial areas. Expensive projects that were expected to be profitable investments resulted in expensive lessons.

"It used to be that good geology and good economics would result in good investment. Now the equation has changed. Good politics has become an essential contribution as well. It is obvious from the MMS proposal that good politics is absent today along much of our coast.

"It is a shame this country limits itself in this manner when there are areas on the OCS that are resource rich and could make a major contribution to this country's energy reserves."