[Federal Register Volume 63, Number 221 (Tuesday, November 17, 1998)]
[Proposed Rules]
[Pages 63812-63819]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30605]


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DEPARTMENT OF THE INTERIOR

Fish and Wildlife Service

50 CFR Part 18

RIN 1018-AF02


Marine Mammals; Incidental Take During Specified Activities

AGENCY: Fish and Wildlife Service, Interior.

ACTION: Proposed rule, and request for comments.

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SUMMARY: The Fish and Wildlife Service (Service) is proposing 
regulations that would authorize for the next 5 years the incidental, 
unintentional take of small numbers of polar bears (Ursus maritimus) 
and Pacific walrus (Odobenus rosmarus divergens) during year-round oil 
and gas industry operations (exploration, development, and production) 
in the Beaufort Sea and adjacent northern coast of Alaska.
    Under the provisions of the Marine Mammal Protection Act (Act), the 
Service will allow the taking of these marine mammals only if the 
Director of the Service finds, based on the best scientific evidence 
available, that the total of such taking for the 5 year period will 
have a negligible impact on these species and will not have an 
unmitigable adverse impact on the availability of these species for 
subsistence uses by Alaska Natives. If these findings are made, the 
Service will establish specific regulations for the activity that set 
forth: permissible methods of taking; means of effecting the least 
practicable adverse impact on the species and their habitat and on the 
availability of the species for subsistence uses; and requirements for 
monitoring and reporting.
    Through the preparation of a draft Environmental Assessment, and 
the knowledge learned from four years of monitoring interactions 
between marine mammals and oil and gas industry activities, the Service 
has proposed a finding that the total expected takings of polar bear 
and walrus during oil and gas industry exploration, development and 
production activities would have a negligible impact on these species, 
and there would be no unmitigable adverse impacts on the availability 
of these species for subsistence uses by Alaska Natives.

DATES: Comments on the proposed rule must be received by December 11, 
1998.

ADDRESSES: Written comments should be submitted by mail to Supervisor, 
Marine Mammals Management Office, U.S. Fish and Wildlife Service, 1011 
East Tudor Road, Anchorage, AK 99503. Comments may also be hand 
delivered to the same address. Comments and materials received in 
response to this proposal will be available for public inspection at 
this address during normal working hours of 8 a.m. to 4:30 p.m., Monday 
through Friday.

FOR FURTHER INFORMATION CONTACT: John Bridges, Marine Mammals 
Management Office, U.S. Fish and Wildlife Service, 1011 East Tudor 
Road, Anchorage, Alaska 99503, (907) 786-3800, FAX (907) 786-3816, or 
Internet John__B[email protected].

SUPPLEMENTARY INFORMATION:

Background

    Section 101(a)(5)(A) of the Act gives the Secretary of the Interior 
(Secretary) through the Director of the U.S. Fish and Wildlife Service 
the authority to allow, on request by U.S. citizens [as defined in 50 
CFR 18.27(c)] engaged in a specified activity (other than commercial 
fishing) in a specified geographical region the incidental, but not 
intentional, taking of small numbers of marine mammals. The Service may 
grant permission for periods of up to 5 years.
    If the Service finds, based on the best scientific evidence 
available, that the taking of marine mammals will have a negligible 
impact on the species or stock and will not have an ``unmitigable 
adverse impact'' on the availability of the species or stock for 
subsistence uses, the taking of marine mammals may be allowed. Also, 
the Service will publish regulations that include permissible methods 
of taking and other means to ensure the least practicable adverse 
impact on the species and its habitat and on the availability of the 
species for subsistence uses. These regulations must include 
requirements for monitoring and reporting. The Service issues Letters 
of Authorization (LOA), upon request and receipt of appropriate data, 
to individual entities to conduct activities pursuant to the 
regulations.
    The term take as defined by the Act means to harass, hunt, capture, 
or kill, or attempt to harass, hunt, capture, or kill any marine 
mammal.
    Harassment as defined by the Act, as amended in September 1994, ``* 
* * means any act of pursuit, torment, or annoyance which--
    (i) Has the potential to injure a marine mammal or marine mammal 
stock in the wild; or
    (ii) Has the potential to disturb a marine mammal or marine mammal 
stock in the wild by causing disruption of behavioral patterns, 
including, but not limited to, migration, breathing, nursing, breeding, 
feeding, or sheltering.''
    As a result of 1986 amendments to the Act, the Service on September 
29, 1989, published a final rule (54 FR 40338) amending 50 CFR 18.27 
(i.e., regulations governing small takes of marine mammals incidental 
to specified activities) that included, among other things, a revised 
definition of ``negligible impact'' and a new definition for 
``unmitigable adverse impact.'' Negligible impact is now defined as 
``an impact resulting from the specified activity that cannot be 
reasonably expected to, and is not reasonably likely to, adversely 
affect the species or stock through effects on annual rates of 
recruitment or survival.'' [50 CFR 18.27(c)]. ``Unmitigable adverse 
impact means an impact resulting from the specified activity (1) that 
is likely to reduce the availability of the species to a level 
insufficient for a harvest to meet subsistence needs by (i) causing the 
marine mammals to abandon or avoid hunting areas, (ii) directly 
displacing subsistence users, or (iii) placing physical barriers 
between the marine mammals and the subsistence hunters; and (2) that 
cannot be sufficiently mitigated by other measures to increase the 
availability of marine mammals to allow subsistence needs to be met.'' 
Id.
    Oil and gas exploration, development, and production activities 
conducted in marine mammal habitat risk violating the moratorium on the 
taking of marine mammals and, therefore, violating the terms of the 
Act. It is probable that in

[[Page 63813]]

a period of five years, takes of polar bear and/or walrus will occur. 
Although there is no legal requirement for the oil and gas industry 
(Industry) to obtain incidental take authority, they have chosen to 
seek authorization to avoid the uncertainties of oil and gas industry 
activities in marine mammal habitat.
    On December 17, 1991, BP Exploration (Alaska), Inc. (BPXA), for 
itself and on behalf of Amerada Hess Corporation, Amoco Production 
Company, ARCO Alaska, Inc., CGG American Service, Inc., Conoco Inc., 
Digicon Geophysical Corp., Exxon Corporation, GECO Geophysical Co., 
Halliburton Geophysical Services, Inc., Mobil Oil Corporation, Northern 
Geophysical of America, Texaco Inc., Unocal Corporation, and Western 
Geophysical Company, petitioned the Service for the promulgation of 
regulations pursuant to Section 101(a)(5) of the Act.
    Regulations were issued on November 16, 1993 (58 FR 60402), that 
allowed the incidental, but not intentional, take of small numbers of 
polar bears and Pacific walrus in the event that such a taking occurred 
in the course of oil and gas exploration, development, or production 
activities during year-round operations in the Beaufort Sea, in Alaskan 
State waters and Outer Continental Shelf (OCS) waters and the adjacent 
northern coast of Alaska. The regulations were issued for a period of 
18 months. The Secretary of the Interior directed the Service to 
develop and begin implementing a polar bear habitat conservation 
strategy prior to extending the regulations beyond the initial 18 
months for a total 5-year period as allowed by the Act. The Habitat 
Conservation Strategy for Polar Bears in Alaska was developed to ensure 
that the regulations fully meet with the intent of the 1973 
International Agreement on the Conservation of Polar Bears. On August 
17, 1995, the final rule and notice of availability of a Completed 
Final Polar Bear Habitat Conservation Strategy was issued (60 FR 
42805); and the regulations were extended for an additional 42 months 
to expire on December 15, 1998.
    Specifically, a north/south line at Barrow, Alaska, including all 
Alaska state waters and the OCS waters and east of that line to the 
Canadian border defines the offshore geographic region. The same north/
south line at Barrow, 25 miles inland and east to the Canning River 
defines the onshore region. The Arctic National Wildlife Refuge was 
excluded from the proposal.

Summary of the Current Request

    On August 28, 1997, BPXA submitted a petition for rule making 
pursuant to Section 101(a)(5)(A) of the Act, and Section 553(e) of the 
Administrative Procedure Act (APA). The request seeks regulations to 
allow the incidental, but not intentional, taking of small numbers of 
polar bears and Pacific walrus in the event that takings occur in the 
course of oil and gas exploration, development, and production 
operations in Arctic Alaska. Specifically, BPXA requested an extension 
of the current incidental take regulations beginning at 50 CFR 18.121 
for an additional five-year term from December 16, 1998, through 
December 15, 2003. The request was submitted by BPXA for itself and on 
behalf of ARCO Alaska, Inc., Exxon Corporation, and Western Geophysical 
Company.
    The geographical extent of this request is the same as the previous 
regulations; it is a north/south line at Barrow, Alaska, including all 
Alaska State waters and OCS waters, and east of that line to the 
Canadian border. The onshore region is the same north/south line at 
Barrow, 25 miles inland and east to the Canning River. The Service 
excludes the Arctic National Wildlife Refuge from this proposal.

Summary of Proposed Rule

    The Service proposes specific regulations to allow the incidental, 
unintentional take of polar bear and Pacific walrus in the Beaufort Sea 
and northern coast of Alaska. The regulations would be in effect year-
round for a five year period expected to begin at the expiration of the 
current regulations (December 15, 1998) for entities conducting oil and 
gas industry activities. This proposed regulation does not authorize 
the intentional harassment, hunting, capturing or killing of polar bear 
or walrus. Under these regulations, Industry operations will continue 
while functioning under the restrictions of the Act.
    These regulations do not permit the actual activities associated 
with oil and gas exploration, development, and production, but rather 
allow the incidental, unintentional take of the two species of marine 
mammals. The Department of the Interior's Minerals Management Service 
(MMS) and the Bureau of Land Management are responsible for permitting 
activities associated with oil and gas activities in Federal waters and 
on Federal lands, respectively, and the State of Alaska is responsible 
for activities on State lands and in State waters.
    Concern has been directed at polar bear encounter incidents where 
human life is in jeopardy. When human activity occurs in polar bear 
habitat, polar bear/human encounters are possible. In over 25 years of 
industry activity in this area, only one polar bear died for the 
protection of human life. Each person operating under these regulations 
will have polar bear interaction training and knowledge of polar bear 
interaction plans. The Service authorizes deterrent activities under 
Section 109(h)(1) of the Act, and lethal takes (kills) in defense of 
self or others are authorized by Section 101(c) of the Act.
    The proposed regulations authorizing the incidental take of polar 
bears and Pacific walrus is directed to incidents that occur between 
Industry and the two species during year-round oil and gas activities 
that might cause minor disturbances to polar bears or Pacific walrus, 
especially those incidents that may occur in the absence of any 
negligence or intentional action by a person carrying out an otherwise 
lawful activity.
    The proposed regulations include requirements for monitoring and 
reporting, and measures to effect the least practicable adverse impact 
on these species and their habitat and on the availability of these 
species for subsistence uses. The regulations are based on the finding 
that exploration, development, and production activities in this area 
may involve the taking of the two aforementioned species of marine 
mammals. The Service believes that the total impact of the takings will 
have a negligible impact on these species and on their availability for 
subsistence uses. Monitoring reports submitted for each exploration, 
development, and production activity conducted from 1993-1997 support 
this believe.
    Subsequent to establishing regulations, the Service requires a LOA 
to conduct activities pursuant to these regulations. Where there is the 
likelihood of taking polar bear or walrus, each group or individual 
conducting an oil and gas industry-related activity may request a LOA. 
The proposed regulations require those who request a LOA to submit a 
plan to monitor the effects on polar bear and walrus that are present 
during the authorized activities. Also, each applicant for a LOA must 
identify, in a Plan of Cooperation, measures taken to minimize adverse 
impacts on the availability of marine mammals for subsistence uses if 
the activity takes place in or near a traditional subsistence hunting 
area. Each request for a LOA is evaluated on the specific activity and 
the specific location, and the Service

[[Page 63814]]

specifically conditions each LOA for that activity and location.

Description of Activity

    In accordance with 50 CFR 18.27, Industry has submitted a request 
for the promulgation of incidental take regulations pursuant to Section 
101(a)(5)(A) of the Act.
    Activities that are covered in the petition are exploration 
activities such as geological and geophysical surveys which include: 
geotechnical site investigation, reflective seismic exploration, 
vibrator seismic data collection, air gun and water gun seismic data 
collection, explosive seismic data collection, geological surveys, and 
drilling operations. The latter include: drill ships, floating drill 
platform such as the Kulluk, ice pads, artificial islands, caisson-
retained islands, and two types of bottom-founded structures: (1) 
concrete island drilling system, and (2) single steel drilling caisson.
    Development and production activities are located on the North 
Slope along the shores of the Beaufort Sea. This region contains more 
than 11 separate oil and gas fields. All of the fields lie within the 
range of polar bears, while those in the offshore/near shore may 
encounter Pacific walrus on an irregular basis. At present, seven 
fields are in production: Prudoe Bay, Kuparuk, Endicott, Lisburne, 
Milne Point, Niakuk, and Point McIntyre. Additional fields expected to 
be in production over the next few years are: Northstar, Badami, 
Liberty, Tarn, and Alpine. The Trans-Alaska Pipeline System transports 
oil from each of the producing fields 800 miles south to Valdez, 
Alaska.
    Potential sources of incidental take are noise, physical 
interactions, and permitted and unpermitted discharges (oil spills). 
Oil and gas well drilling operations will include artificial islands, 
caisson-retained islands, ice island, bottom-founded structures and ice 
pads and drill ships.
    During the life of these proposed regulations, the Service 
anticipates a similar level of activity as during the previous five 
years, with the addition of a number of new developments as mentioned 
above. Because of the large number of variables influencing exploration 
activity, any predictions as to the exact dates and locations of the 
operations that will take place over the next five years would be 
highly speculative. However, requests for LOAs must include specific 
details regarding dates, duration, and geographic locations of proposed 
activities.

Biological Information

    Polar bears and Pacific walrus utilize the proposed area as habitat 
which is vital to their survival, more so for polar bears than the 
Pacific walrus. The geographical area is the land and water area east 
of a north/south line through Barrow, Alaska. The onshore area is 25 
miles inland and east to the Canning River. The Arctic National 
Wildlife Refuge is outside of the proposed area. Offshore, the area 
extends through Alaska State waters and into the OCS waters of the 
Beaufort Sea from Barrow east to the Canadian border.

Walrus

    The Pacific walrus primarily occurs in the waters of the Chukchi 
Sea along the western coast of Alaska. Most of the population 
congregates near the ice edge of the Chukchi Sea pack ice during the 
summer. The primary summer range of the walrus does not extend east of 
Point Barrow. In the winter, walrus occur in areas where there are 
polynyas, open leads, or thin ice in which they can create and maintain 
breathing holes, and major winter concentrations occur in the 
southeastern Bering Sea. Walrus do occur in the Beaufort Sea but in 
small numbers. Data from the Service's Marking, Tagging, and Reporting 
Program show that from 1994 through 1997, 73 walrus were reported 
killed by Barrow hunters. Tagging certificates shows that nearly all 
walrus were taken west of Barrow. Based on four years of monitoring 
Industry's activities in the Beaufort Sea required as a condition to 
LOAs, only two walrus were observed by on-site monitors.

Polar bear

    Polar bears occur only in the Northern Hemisphere, where their 
distribution is circumpolar, and they live in close association with 
polar ice. In Alaska, their distribution extends from south of the 
Bering Strait to the U.S.-Canada border. The Service estimates the 
world population at 21,000-28,000, with possibly as many as 5,000 bears 
in Alaska. The most extensive north-south movements of polar bears 
occur with the ice in the spring and fall.
    Females without dependent cubs breed in the spring and enter 
maternity dens by late November. Females with cubs do not mate. An 
average of two cubs, sometimes one and rarely three, are usually born 
in December, and the family group emerges from the den in late March or 
early April. Only pregnant females den for an extended period during 
the winter. Other polar bears may burrow out depressions to escape 
harsh winter winds. The average reproduction interval for polar bear is 
3-4 years. The maximum reported age of reproduction in Alaska is 18 
years. Based on these conditions, a polar bear may produce about ten 
cubs in her lifetime.
    The fur and blubber of the polar bear provide vital protection from 
the cold air and frigid water. Newly emerged cubs of the year may not 
have a sufficient layer of blubber to maintain body heat when immersed 
in water for long periods of time. For this reason the mother is very 
protective of the cubs. Cubs abandoned prior to the normal weaning age 
of 2.5 years likely will not survive.
    Ringed seals (Phoca hispida) are the primary prey species of the 
polar bear; occasionally, they hunt bearded seals (Erignathus barbatus) 
and walrus calves. Polar bears scavenge on marine mammal carcasses 
washed up on shore. They also eat non-food items such as Styrofoam, 
plastic, car-batteries, anti-freeze and lubricating fluids.
    Polar bears have no natural predators, and they do not appear to be 
prone to death by diseases or parasites. The most significant source of 
mortality are humans. Since 1972, with the passage of the Act, only 
Alaska Natives hunt polar bears in Alaska and use bears for their 
subsistence needs and manufacture of handicraft and clothing items. The 
Native harvest occurs without restrictions on sex, age, number, or 
season, providing takes are non-wasteful. From 1980-1997, the total 
annual harvest averaged 103 bears. The majority of this harvest (70 
percent) came from the Chukchi Sea area.

Effects of Oil and Gas Industry Activities on Marine Mammals and on 
Subsistence Uses

Walrus

    Oil and gas industry activities such as air and vessel traffic, 
noise from air traffic, seismic surveys, ice breakers, supply ships and 
drilling may frighten or displace walrus. However, as previously stated 
in this document, the primary range of the Pacific walrus is west of 
Point Barrow and the likelihood of many walrus being in the Beaufort 
Sea is small. Therefore, it is unlikely that oil and gas industry 
activities will result in more than a negligible impact on the species. 
Likewise, activities during the ice covered periods and the onshore 
development and production activities should not impact the species.
    Stationary drilling structures may affect the movement of walrus. 
Walrus are attracted to certain activities or repelled from others by 
noise or smell. In the 1989 drilling season an incident

[[Page 63815]]

occurred in a Chukchi Sea operation where a young walrus surfaced in 
the center hole (moonpool) of the drill ship. A cargo net removed the 
walrus from the drilling area, after which the walrus left the scene of 
the incident and was not seen again.
    The majority of the population congregates during the summer months 
(open water season) in the southern region of the Chukchi Sea pack ice 
between Long Strait and Wrangle Island to the west and Point Barrow, 
Alaska, to the east. These animals stray or are blown by storms into 
the proposed regulation area. The remainder of the population, 
primarily adult males, stay in the Bearing Sea, especially along the 
Anadyr Gulf coast and in several areas in northern Bristol Bay.
    In winter, walrus are found in two major regions where open leads, 
polynyas, or thin ice occur (Fay et al. 1984). Generally, one group 
ranges from the Gulf of Anadyr into the region southwest of St. 
Lawrence Island, and a second group is found in the southeastern Bering 
Sea from south of Nunivak Island into northwestern Bristol Bay. No 
impacts to walrus are expected during winter oil and gas industry 
activities since the winter range of the Pacific walrus is not within 
the geographical area of the proposed regulations.
    Seismic surveys generally take place on solid ice or open water. 
Since most walrus activity occurs near the ice edge, interactions with 
walrus and the seismic activity are unlikely.

Subsistence

    Few walrus are harvested in the Beaufort Sea along the northern 
coast of Alaska. The walrus constitutes a small portion of the harvest 
for the village of Barrow. For the four year period that the current 
incidental take regulations have been in place, 1994 through 1997, 73 
walrus were reported taken by Barrow hunters. Reports indicate that all 
but one of the 73 walrus were taken west of Point Barrow, outside the 
limits of the incidental take regulations. Hunters from Nuiqsut and 
Kaktovik have not reported taking any walrus this time.

Polar Bear

    Oil and gas exploration, development, and production activities in 
the Beaufort Sea and adjacent northern coast of Alaska may affect the 
polar bear. Drill ships and icebreaker activity may be physical 
obstructions to normal movement. Noise, sights, and smells produced by 
activities may attract or repel bears. These disruptions may introduce 
detrimental changes in the bears' natural behavior.
    Exploration activities during the open-water season are not likely 
to impact the movements or natural behavior of the polar bear. Although 
polar bears have been documented in open water, miles from the ice edge 
or ice floes, they normally are found near the ice edge. Therefore, it 
is unlikely that exploration activities in the open-water season will 
have more than a negligible impact on the polar bear.
    Winter oil and gas activities have a greater possibility of having 
detrimental impacts on the polar bear. Polar bears that continue to 
move over the ice pack throughout the year are likely to encounter 
Industry activities. Curious polar bears are likely to investigate 
drill ships and artificial or natural islands where drilling operations 
occur. Any on-ice activity creates an opportunity for Industry/bear 
interactions.
    Offshore drill sites within the pack ice may modify the habitat by 
creating open water leads down current from the activity. Polar bears 
are attracted to open water leads which create temporary niches for 
subadult or non-breeding ringed seals, the primary prey species for the 
polar bear. Polar bears attracted to these artificial open water leads 
create possibilities of Industry/polar bear encounters.
    Polar bear interaction plans are developed for each operation. 
Industry personnel participate in a polar bear interaction training 
program while on-site. These training programs and interaction plans 
insure that the activity and possible interactions have the least 
detrimental effect on industry personnel and the polar bear. 
Occasionally, work is performed on the ice adjacent to elevated drill 
ships or platforms. In such cases, well-lighted and open work areas are 
provided to reduce the likelihood of an encounter with an undetected 
polar bear.
    Winter seismic activity (survey crews) have a potential of 
disturbing denning females which are sensitive to noise disturbances. 
Denning females may stop seeking a preferred denning site, or may 
abandon dens, thereby risking the lives of their offspring. Prior to 
initiating seismic survey activity, Industry provides the Service with 
the proposed survey route. Through satellite observations of radio 
collared bears the Service is able to inform Industry of known denning 
sites, and from knowledge of the geographical area the Service can 
identify areas of probable denning sites. Industry cooperates with the 
Service to alter survey routes to pass within no less than one mile of 
denning sites. As a result of the ongoing cooperative operating 
procedures, Industry activities avoid known den sites within all 
practicable limits.

Subsistence

    The polar bear is not a primary subsistence species of the villages 
of Barrow, Nuiqsut or Kaktovik. Preliminary data from the Service's 
Marking, Tagging, and Reporting Program indicate that from July 1, 
1993, to June 30, 1997, a total of 83 polar bears were reported 
harvested by the Natives of Barrow; 5 polar bears from the village of 
Nuiqsut; and 9 polar bears from the village of Kaktovik. Hunting 
success varies considerably from year-to-year because of variable ice 
and weather conditions.
    Industry works with the local Native groups to achieve a 
cooperative relationship between oil and gas activities and subsistence 
activities. It is assumed that oil and gas exploration, development, 
and production will not have more than a negligible impact on 
subsistence activities.

Oil Spills

    The accidental discharge of oil into the environment during 
Industry activities could result from operational spills during 
refueling, handling of lubricants and liquid products, and during 
general maintenance. The spills are small in quantity, generally less 
than a barrel of oil per incident. Drilling units maintain onboard 
cleanup equipment and train personnel to handle operational spills. 
These spills do not pose a threat to polar bear or walrus.
    A blowout (i.e., the loss of control of a well during drilling) is 
a potentially more serious type of spill accident. However, based on 
data calculated by the MMS, the probability of a major blowout in the 
Beaufort Sea is extremely low; data compiled by that agency verify that 
although blowouts occur during exploratory drilling on the OCS, no oil 
has been spilled.
    Based upon historical data, the probability of a blowout not 
occurring is calculated to be 99.36 percent. This data set includes all 
blowouts including those caused by gas or water, as well as oil. All 
blowouts do not necessarily result in the release of oil.
    Swimming polar bears are directly impacted by contacting oil-
contaminated waters. Bears that are fouled by oil may suffer 
thermoregulatory problems, ingest oil, and exhibit other detrimental 
effects such as inflammation of the nasal passages or damage to their 
renal and central nervous system.
    The Service acknowledges that while there is a low probability of 
oil spills

[[Page 63816]]

connected with a blowout, the potential negative effects to polar bears 
or their habitats may be significant. Bears that contact oil are likely 
to die. The Service balances the probability of an oil spill with the 
potential severity of harm to the species or stock when determining 
negligible impact. Even if the potential effects of a spill are 
significant but the probability of occurrence is low, a finding of 
negligible impact may be appropriate.
    Due to the small number of walrus in the Beaufort Sea area, impacts 
resulting from oil spills are foreseen as negligible.

Conclusions

    Based on the previous discussion and monitoring results from the 
previous five years' monitoring program, the Service makes the 
following preliminary findings regarding the proposed action.

Impact on Species

    The Service finds, based on the best scientific information 
available and the results of four years of monitoring data, the effects 
of oil and gas related exploration, development, and production 
activities for the next five years in the Beaufort Sea and adjacent 
northern coast of Alaska will have a negligible impact on polar bears 
and Pacific walrus and their habitat and on the availability of the 
species for subsistence uses if certain conditions are met. Oil and gas 
activities have occurred in the Beaufort Sea and the adjacent northern 
coast of Alaska for many years. To date, there has been only one 
documented case of a lethal take of a polar bear at an exploratory 
drill site. In the event of a catastrophic spill, the Service would 
reassess the impacts to the polar bear and/or walrus populations and 
reconsider the appropriateness of authorization for taking thorough 
Section 101(a)(5)(A) of the Act.
    The finding of ``negligible impact'' applies to exploration, 
development, and production activities related to oil and gas 
activities. The following are generic conditions that are proposed to 
eliminate interference with normal breeding, feeding, and possible 
migration patterns to ensure that the effects to the species remain 
negligible. The Service may expand the conditions in the LOA's based 
upon site specific and species specific reasons.
    (1) These regulations do not authorize intentional taking of polar 
bear or walrus. When an intentional take (e.g., harassment associated 
with deterrent activities and/or lethal take) situation arises, the 
Service can allow such action under the authority of Section 109(h)(1) 
or Section 101(c) of the Act.
    (2) For the protection of pregnant polar bears during denning 
activities (selection, birthing, and maturation of cubs) in known and 
confirmed denning areas, Industry activities will be restricted in 
specific locations during certain specified times of the year. These 
restrictions will be applied on a case-by-case basis in response to a 
request for each LOA. In potential denning areas, pre-activity surveys, 
as determined by the Service, may be required to determine the presence 
or absence of denning activity.
    (3) Each activity authorized by a LOA will require a site-specific 
plan of operation, and a site-specific monitoring and reporting plan. 
The purpose of the required plans is to ensure that the level of 
activity and possible takes will be consistent with the finding that 
the cumulative total of takes will have a negligible impact on polar 
bear and Pacific walrus. their habitat, and where relevant, on the 
availability of the species for subsistence uses.

Impact on Subsistence

    Polar bear and Pacific walrus contribute a small amount of the 
total subsistence harvest for the villages of Barrow, Nuiqsut, and 
Kaktovik. However, this does not mean that the harvesting of these 
species is not important to Alaska Natives. To ensure that the impact 
of oil and gas activity on the availability of the species or stock for 
subsistence uses is negligible, prior to receipt of a LOA, Industry 
must provide evidence to the Service that a plan of cooperation has 
been presented to the subsistence communities, the Eskimo Walrus 
Commission, Alaska Nanuuq Commission, and the North Slope Borough. This 
plan of cooperation will provide the procedures on how Industry will 
work with the affected Native communities and what actions will be 
taken to avoid interference with subsistence hunting of polar bear and 
walrus.
    If there is evidence that oil and gas activities will affect, or in 
the future may affect, the availability of polar bear or walrus for 
subsistence, the Service will reevaluate its findings regarding 
permissible limits to take and the measures required to ensure 
continued subsistence hunting opportunities.

Monitoring and Reporting

    The purpose of the monitoring program is to determine short-term 
and direct effects of authorized oil and gas activities on polar bear 
and walrus in the Beaufort Sea and the adjacent northern coast of 
Alaska. Plans must identify the methods used to assess the effects on 
the movements, behavior, and habitat use of polar bear and walrus in 
response to Industry's activities. Monitoring activities are summarized 
and reported each year, and reviewed by the Service. The Service bases 
each year's monitoring objective on the previous year's monitoring 
results.
    The Service requires an approved plan for monitoring and reporting 
the effects of oil and gas industry exploration, development, and 
production activities on polar bear and walrus prior to issuance of a 
LOA. The applicant must submit an annual monitoring and reporting plan, 
at least 90 days prior to initiation of proposed activity, for each 
exploratory activity; and the applicant must submit a final monitoring 
report to the Service no later than 90 days after completion of the 
exploratory activity. Since development production activities are 
continuous long-term activities, upon approval, LOAs and their required 
monitoring and reporting plans will be issued for the life of the 
activity or until expiration of the regulations, whichever occurs 
first. The Service will require that the operator submit development 
and production activity monitoring results associated with LOAs 
annually for review by the Service no later than January 15 for the 
previous activity. The Service requires annual approval of the 
monitoring results for continued operation under the LOA.

Required Determinations

    The Service has prepared a draft Environmental Assessment in 
conjunction with this proposed rulemaking. Subsequent to closure of the 
comment period for this proposed rule, the Service will decide whether 
this is a major Federal action significantly affecting the quality of 
the human environment within the meaning of Section 102(2)(C) of the 
National Environmental Policy Act of 1969. For a copy of the draft 
Environmental Assessment, contact the individual identified above in 
the section entitled, FOR FURTHER INFORMATION CONTACT.
    Through preparation of a Record of Compliance for a Rulemaking 
Document, the Department of the Interior has determined that this 
proposed rule is not a major rule requiring a regulatory impact 
analysis under Executive Order 12866. The proposed regulations are not 
likely to result in: (1) an annual effect on the economy of $100 
million or more, with the Service estimating actual Industry and 
Federal government costs associated with developing petitions, specific 
regulations, and LOAs at $500,000-$1 million (Note that without 
specific regulations and LOAs, the cost

[[Page 63817]]

to Industry resulting from lost profits, relinquishing leases earlier 
than expected, and writing off bonus payments against current income; 
and the cost to American society from lost royalties and tax payments 
might be substantial if incidental takes occurred and legal challenges 
succeeded in long-term stoppages of oil and gas operations on Federal 
and State lands and waters. However, it is unlikely that such stoppages 
will occur, but if any such cessation of activities did occur, they 
likely would be only short-term and would not have an annual effect on 
the economy surpassing $100 million.); (2) a major increase in costs or 
prices for consumers, individual industries, or government agencies; or 
(3) significant adverse effects on competition, employment, 
productivity, innovation, or on the ability of United States-based 
enterprises to compete with foreign-based enterprises in domestic or 
export markets. It has also been determined that this proposed rule 
will not have a significant economic effect on a substantial number of 
small entities under the Regulatory Flexibility Act, 5 U.S.C. 601 et 
seq. Oil companies and their contractors, conducting exploration, 
development, and production activities in Alaska have been identified 
as the only likely applicants under the proposed regulations. These 
potential applicants have not been identified as small businesses. The 
Record of Compliance for this proposed rule is available from the 
individual identified above in the section entitled, FOR FURTHER 
INFORMATION CONTACT.
    This proposed rule is not expected to have a potential takings 
implication under Executive Order 12630 because it would authorize 
incidental, but not intentional, take of polar bear and walrus by oil 
and gas industry companies and thereby exempt them from civil and 
criminal liability. The proposed rule also does not contain policies 
with Federalism implications sufficient to warrant preparation of a 
Federalism Assessment under Executive Order 12612.
    The Department has certified to the Office of Management and Budget 
that these proposed regulations meet the applicable standards provided 
in Sections 3(a) and 3(b)(2) of Executive Order 12988.
    The reinstatement of authority (under OMB Number 1018-0070) to 
collect information contained in this rule was submitted to the Office 
of Management and Budget for approval under the Paperwork Reduction Act 
(44 U.S.C. 3501 et seq.). On April 1, 1998, the Service published a 
notice in the Federal Register with a 60-day comment period announcing 
to the public its intention to seek OMB approval for the collection of 
information associated with this rulemaking. On September 22, 1998, the 
Service published a Federal Register notice with 30-day comment period 
announcing to the public that this collection of information has been 
submitted to OMB for reinstatement. On October 24, 1998, OMB granted 
approval of our request for reinstatement of this information 
collection requirement.
    This rulemaking is not a significant rule subject to OMB review 
under Executive Order 12866. The Service has determined that the 
rapidly approaching expiration of the current regulation necessitates a 
public comment period of less than 60 days. Therefore, comments on this 
Proposed Rule will be accepted through December 11, 1998.

List of Subjects in 50 CFR Part 18

    Administrative practice and procedure, Alaska, Imports, Indians, 
Marine mammals, Oil and gas exploration, Reporting and record keeping 
requirements, Transportation.
    For the reasons set forth in the preamble, the Service proposes to 
amend part 18, subchapter B of chapter 1, title 50 of the Code of 
Federal Regulations as set forth below:

PART 18--MARINE MAMMALS

    1. The authority citation for 50 CFR part 18 continues to read as 
follows: 16 U.S.C. 1361 et seq.
    2. Subpart J is revised to read as follows:

Subpart J--Taking of Marine Mammals Incidental to Oil and Gas 
Exploration, Development, and Production Activities in the Beaufort 
Sea and Adjacent Northern Coast of Alaska

Sec.
18.121  Specified activity and specified geographical region.
18.122  Effective dates.
18.123  Permissible methods.
18.124  Prohibitions.
18.125  Level of activity.
18.126  Measures to ensure availability of species for subsistence.
18.127  Requirements for monitoring and reporting.
18.128  Letters of Authorization.
18.129  Information collection requirements.

Subpart J--Taking of Marine Mammals Incidental to Oil and Gas 
Exploration, Development and Production Activities in the Beaufort 
Sea and Adjacent Northern Coast of Alaska


Sec. 18.121  Specified activity and specified geographical region.

    Regulations in this subpart apply to the incidental, but not 
intentional, take of polar bear and Pacific walrus by U.S. citizens (as 
defined in Sec. 18.27(c)) engaged in oil and gas exploration, 
development, and production activities in the Beaufort Sea and adjacent 
northern coast of Alaska. The specified geographical area is defined by 
a North/South line at Barrow, Alaska, and includes all Alaska coastal 
areas, State waters, and Outer Continental Shelf waters east of that 
line to the Canadian border and in area 25 miles inland from Barrow on 
the west to the Canning River on the east. The Arctic National Wildlife 
Refuge is excluded from this proposal.


Sec. 18.122  Effective dates.

    Regulations in this subpart are effective for a five year period, 
beginning December 16, 1998, for year-round oil and gas exploration, 
development, and production activities.


Sec. 18.123  Permissible methods.

    (a) A Letter of Authorization (see Sec. 18.128) permits the 
incidental, but not intentional, take of polar bear and walrus by U.S. 
citizens:
    (1) Conducting geological and geophysical surveys;
    (2) Drilling exploratory wells and associated activities; and
    (3) Drilling production wells and performing production support 
operations.
    (b) The operator must conduct methods and activities identified in 
Sec. 18.123(a) in a manner that minimizes to the greatest extent 
practicable adverse impacts on polar bear and walrus, their habitat and 
on the availability of these marine mammals for subsistence uses.
    (c) The Service will evaluate each request for a Letter of 
Authorization based on the specific activity and the specific 
geographical location. Each Letter of Authorization will identify 
allowable conditions or methods that are specific to the activity and 
location.


Sec. 18.124  Prohibitions.

    (a) These regulations do not authorize intentional takes of polar 
bear or walrus. (Pursuant to Section 109(h)(1) and Section 101(c) of 
the Marine Mammal Protection Act, the Service may authorize the 
intentional take (e.g., harassment associated with deterrent 
activities, and taking in defense of self or others.)

[[Page 63818]]

    (b) Letters of Authorization prohibit any take that fails to comply 
with the terms and conditions of these specific regulations.


Sec. 18.125  Level of activity.

    When a U.S. citizen requests a Letter of Authorization, the Service 
will determine whether the level of activity identified in the request 
exceeds that considered by the Service in making a finding of 
negligible impact on the species and a finding of no unmitigable 
adverse impact on the availability of the species for subsistence. If 
the level of activity is greater, the Service will re-evaluate its 
findings to determine if those findings continue to be appropriate 
based on the greater level of activity. Depending on the results of the 
evaluation, the service may allow the authorization to stand as is, add 
further conditions, or withdraw the authorization.


Sec. 18.126  Measures to ensure availability of species for 
subsistence.

    When applying for a Letter of Authorization, the applicant must 
submit a plan of cooperation that identifies measures to minimize 
adverse effects on the availability of polar bear and walrus for 
subsistence uses if the activity takes place in or near a traditional 
subsistence hunting area. The applicant should contact affected 
subsistence communities to discuss potential conflicts with the 
location, timing, and methods of proposed operations. The applicant 
must make reasonable efforts to assure that exploration activities do 
not interfere with subsistence hunting or that adverse effects on the 
availability of polar bear or walrus are properly mitigated.


Sec. 18.127  Requirements for monitoring and reporting.

    (a) The Service requires holders of Letters of Authorization to 
cooperate with the Service and other designated Federal, State, or 
local agencies to monitor the impacts of oil and gas exploration, 
development, and production activities on polar bear and walrus.
    (b) Holders of Letters of Authorization must designate a qualified 
individual or individuals to observe, record, and report on the effects 
of the activities on polar bear and walrus.
    (c) When applying for a Letter of Authorization, the applicant must 
include a site-specific plan to monitor the effects of the activity on 
the populations of polar bear and walrus that are present during the 
on-going activities. The Service's Alaska Regional Director must 
approve the plan which identifies the survey techniques that determine 
the actions of the polar bear and walrus in response to the on-going 
activity. The monitoring program must document the actions of these 
marine mammals and estimate the actual level of take. The monitoring 
requirements will vary depending on the activity, the location, and the 
time.
    (d) The operator must develop a polar bear awareness and 
interaction plan if the activity is on ice or in an area of active ice 
movement. For the protection of human life and welfare, each employee 
on site must complete a basic polar bear encounter training course.
    (e) At its discretion, the Service may place an observer on site of 
the activity, on board drill ships, drill rigs, aircraft, icebreakers, 
or other support vessels or vehicles to monitor the impacts of the 
activity on polar bear and walrus.
    (f) For exploratory activities, holders of a Letter of 
Authorization must submit a report to the Service's Alaska Regional 
Director within 90 days after completion of activities. For development 
and production activities, holders of a Letter of Authorization must 
submit a report to the Service's Alaska Regional director by January 15 
each year for the preceding calendar year's activities. Reports must 
include, at a minimum, the following information:
    (1) Dates and time so activity;
    (2) Dates and locations of polar bear or walrus activity as related 
to the monitoring activity; and
    (3) Results of the monitoring activities including an estimate of 
the level of take.


Sec. 18.128   Letters of Authorization.

    (a) Each person or entity conducting an oil and gas exploration, 
development, or production activity in the geographical area described 
in Sec. 18.121, that may take a polar bear or walrus in execution of 
those activities, should apply for a Letter of Authorization for each 
exploration activity or a Letter of Authorization for each development 
and production area. At least 90 days prior to the start of the 
proposed activity, the operator must submit the application for 
authorization to the Service's Alaska Regional Director.
    (b) An application for a Letter of Authorization must include the 
following information:
    (1) A description of the activity, the dates and duration, the 
specific location and the estimated area affected by that activity;
    (2) A plan to monitor the behavior and effects of the acitivity on 
polar bear and walrus;
    (3) A polar bear awareness and interaction plan;
    (4) Where relevant, a Plan of Cooperation to mitigate potential 
conflicts between the proposed activity and subsistence hunting.
    (c) In accordance with Sec. 18.27(f), decisions made concerning 
withdrawals of Letters of Authorization, either on an individual or 
class basis, will be made only after notice and opportunity for public 
comment.
    (d) The requirement for notice and public comment in Sec. 18.128(c) 
will not apply should the Service determine that an emergency exists 
which poses a significant risk to the well-being of the species or 
stocks of polar bear or walrus.


Sec. 18.129   Information collection requirements.

    (a) The collection of information contained in this subpart has 
been approved by the Office of Management and Budget under the 
Paperwork Reduction Act (44 U.S.C. 3501 et seq.) and assigned clearance 
number 1018-0070. It is necessary to collect the information in order 
to describe the proposed activity and estimate the impacts of potential 
takings by all persons conducting the activity. The Service will use 
the information to evaluate the application and determine whether to 
issue specific regulations and, subsequently, Letters of Authorization.
    (b) For the initial year only, the Service estimates a 200 hour 
application burden. For the initial year and annually thereafter, the 
Service estimates 8 hours per LOA, 4 hours for monitoring, and 8 hours 
per monitoring report for each of 5 companies for each of 3 active 
sites (20 hours x 5 companies x 3 sites). Therefore, the Service 
estimates that there is a total 1,100 hour public burden associated 
with this rulemaking for the full 3-year period of OMB authorization 
(200 hours to complete a one-time request for specific regulations; 8 
hours for each LOA request, 4 hours per monitoring activity, and 8 
hours for each monitoring report). Responses to this information 
collection are required to obtain a benefit pursuant to Section 
101(a)(5) of the Marine Mammal Protection Act. Direct comments regard 
the burden estimate or any other aspect of this requirement to the 
Information Collection Clearance Officer, U.S. Fish and Wildlife 
Service, Department of the Interior, Mail Stop 224 ARLSQ, 1849 C 
Street, NW., Washington, DC 20240, and the Office of Management and 
Budget, Paperwork Reduction Project (1018-0070), Washington, DC 20503.


[[Page 63819]]


    Dated: November 10, 1998.
Donald J. Barry,
Assistant Secretary for Fish and Wildlife and Parks.
[FR Doc. 98-30605 Filed 11-16-98; 8:45 am]
BILLING CODE 4310-55-M