[Federal Register Volume 65, Number 239 (Tuesday, December 12, 2000)]
[Notices]
[Pages 77665-77670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31629]


-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Minerals Management Service


Request for Comments on the Preparation of a New 5-Year Outer 
Continental Shelf (OCS) Oil and Gas Leasing Program for 2002-2007; and 
Notice of Intent To Prepare an Environmental Impact Statement for the 
Proposed 5-Year Program

SUMMARY: Section 18 of the OCS Lands Act (43 USC 1344) requires the 
Department of the Interior to solicit information from interested and 
affected parties during the preparation of a 5-year OCS oil and gas 
leasing program. The current 5-year program covers the period July 1997 
to July 2002. The Minerals Management Service (MMS) intends to prepare 
a new 5-year program for 2002-2007 to succeed the current one.
    The MMS is starting the program preparation process at this time 
because section 18 requires completion of a lengthy, multi-step process 
of consultation and analysis before the Secretary of the Interior may 
approve a new 5-year program. The section 18 process includes the 
following required steps: this solicitation of comments; development of 
a draft proposed program, a proposed program, and a proposed final 
program; and Secretarial approval. The MMS also will prepare an 
Environmental Impact Statement (EIS) that analyzes the alternatives 
considered for the new 5-year program. This notice announces the start 
of the EIS preparation process. The MMS will consider comments received 
in response to this notice in developing the draft proposed program and 
in determining the scope of the EIS.

DATES: The MMS must receive all comments and information by February 1, 
2001.

ADDRESSES: Mail comments and information to: 5-Year Program Manager, 
Minerals Management Service (MS-4400), Room 2324, 381 Elden Street, 
Herndon, Virginia 20170. The MMS will accept hand deliveries at 1849 C 
Street, N.W., Room 4230, Washington, D.C. Please label your comments 
and the packaging in which they are submitted as to subject matter: 
mark those pertaining to program preparation, ``Comments on Preparation 
of the 5-Year Program for 2002-2007; and mark those pertaining to EIS 
preparation, ``Scoping Comments on the EIS for the 5-Year Program for 
2002-2007.'' If you submit any privileged or proprietary information to 
be treated as confidential, please mark the envelope, ``Contains 
Confidential Information.''
    The MMS will accept comments submitted by electronic mail. Send 
your comments on the preparation of the program to [email protected] and your comments concerning the scope of the EIS 
to [email protected]. We also will provide access to information 
concerning the 5-year program and EIS, including copies of comments we 
receive in response to this notice, at the MMS internet website 
(www.mms.gov).

Public Comment Procedure

    Our practice is to make comments, including the names and home 
addresses of respondents, available for public review. An individual 
commenter may ask that we withhold his or her name, home address, or 
both from the public record, and we will honor such a request to the 
extent allowable by law. If you submit comments and wish us to withhold 
such information, you must state so prominently at the beginning of 
your submission.
    We will not consider anonymous comments, and we will make available 
for inspection in their entirety all comments submitted by 
organizations and businesses or by individuals identifying themselves 
as representatives of organizations and businesses.

FOR FURTHER INFORMATION CONTACT: Ralph Ainger, 5-Year Program Manager, 
at (703) 787-1215.

[[Page 77666]]


SUPPLEMENTARY INFORMATION: The MMS requests comments from states, local 
governments, American Indian and Native Alaskan organizations, the oil 
and gas industry, federal agencies, environmental and other interest 
organizations, and other parties to assist in the preparation of a 5-
year OCS oil and gas leasing program for 2002-2007 and applicable EIS. 
The 5-year program enables the federal government, states, industry, 
and other interested parties to plan for steps proposed to lead to OCS 
oil and gas lease sales. The Department will make a decision on whether 
to proceed with a specific sale on the schedule only after meeting all 
of the applicable requirements of the OCS Lands Act, the National 
Environmental Policy Act (NEPA), and other statutes.
    The program preparation process will follow all the procedural 
steps required by section 18 of the OCS Lands Act. This notice solicits 
comments early in the preparation process pursuant to section 18(c)(1). 
The MMS will prepare a draft proposed program based on consideration of 
the comments we receive and analysis of the principles and factors 
specified in section 18. The draft proposed program will present for 
review and comment a preliminary schedule of lease sales indicating the 
size, timing, and location of OCS leasing proposed for 2002-2007, as 
well as provisions for assuring receipt of fair market value for 
leases.

OCS Planning Areas To Be Considered and Analyzed

    The OCS consists of 26 planning areas for purposes of administering 
the 5-year program and related OCS oil and gas activities. Figures 1 
and 2 depict the 26 OCS planning areas. Note that precise marine 
boundaries between the United States and nearby or adjacent nations 
have not been determined in all cases. The depicted maritime boundaries 
and limits, as well as divisions between planning areas, where shown, 
are for planning purposes only. These limits shall not affect or 
prejudice in any manner the position of the United States with respect 
to the nature or extent of the internal waters or of sovereign rights 
or jurisdiction for any purpose whatsoever.
    In 1998, acting under the authority of section 12 of the OCS Lands 
Act (43 USC 1341), the President withdrew the following planning areas 
from disposition by leasing through June 30, 2012: North Aleutian 
Basin; Washington-Oregon; Northern, Central, and Southern California; 
Eastern Gulf of Mexico, except the Sale 181 area located off Alabama 
and more than 100 miles off Florida; and South, Mid, and North 
Atlantic. The President also withdrew indefinitely all National Marine 
Sanctuaries, which are located in the following planning areas: 
Washington-Oregon (Olympic Coast); Central California (Cordell Bank, 
Gulf of the Farallones, and Monterey Bay), Southern California (Channel 
Islands), Western Gulf of Mexico (Flower Garden Banks); Straits of 
Florida (Florida Keys); South Atlantic (Gray's Reef); Mid-Atlantic 
(Monitor); and North Atlantic (Stellwagon Bank). None of the areas 
withdrawn under section 12 will be available for leasing during the 
timeframe of the next 5-year program.
    Section 18 requires the Secretary of the Interior to begin the 5-
year program preparation process by soliciting information pertaining 
to all of the areas of the OCS that have not been withdrawn (i.e., the 
portions of the OCS not listed above). We will consider information we 
receive concerning the available areas in light of the criteria 
specified in section 18, which are discussed below. If the Secretary 
decides not to propose leasing in an area in the draft proposed 
program, further analysis of that area under section 18 will not be 
necessary.

Types of Information Requested

    The MMS invites comments from anyone who would like to submit 
information for us to consider in determining the appropriate size, 
timing, and location of OCS leasing for the 5-year period July 2002 to 
July 2007. The types of information we seek are described below using 
general and specific headings. Regardless of these headings, all 
respondents are welcome to comment on any aspect of program preparation 
and to submit any type of pertinent information.

General

    The MMS would like to receive comments and suggestions of 
nationwide application that would be useful in formulating the new 5-
year program. The types of information that would be most useful to us 
in conducting the section 18 analysis relate to the following factors:
    (1) National energy needs for the period relevant to the new 
program (in particular for this program, the role of OCS leasing in 
achieving national energy policy goals, including its potential for 
contributing to increased domestic natural gas supplies, as addressed 
further below); the economic, social, and environmental values of the 
renewable and nonrenewable resources contained in the OCS; and the 
potential impact of oil and gas exploration on other resource values of 
the OCS and the marine, coastal, and human environments;
    (2) Geographical, geological, and ecological characteristics of the 
planning areas of the OCS and nearshore environments;
    (3) Equitable sharing of developmental benefits and environmental 
risks among the various planning areas;
    (4) Location of planning areas with respect to, and the relative 
needs of, regional and national energy markets;
    (5) Other uses of the sea and seabed, including fisheries, 
navigation, existing or proposed sealanes, potential sites of deepwater 
ports, and other anticipated uses of OCS resources and locations;
    (6) Relative environmental sensitivity and marine productivity of 
the different planning areas of the OCS;
    (7) Environmental and predictive information pertaining to offshore 
and coastal areas potentially affected by OCS development (including 
socio-cultural and archaeological information); and
    (8) Methods and procedures for assuring the receipt of fair market 
value for lands leased.
    The MMS also invites you to respond to the following questions:
    (i) Since the national energy picture concerning ``needs'' as 
mentioned above has been volatile, how should the 5-year program for 
2002-2007 be structured to meet those needs? What do you think is the 
proper role of the OCS in national energy policy?
    (ii) Since recent studies have projected shortfalls in meeting 
energy needs such as for home heating oil, and especially natural gas, 
how should such needs be balanced with the laws, goals, and policies 
influencing the management of the OCS? Specifically, since concerns 
from affected states, such as those identified in studies conducted by 
the National Research Council, have led to past congressional and 
presidential actions to restrict many areas, how should long-term 
planning address the current situation?
    (iii) Although OCS oil and gas leasing is typically conducted 
through an extensive, long-established process, are there alternative 
ways to ensure appropriate consultation and to streamline our 
procedures? How might we best meet the purpose of the OCS Lands Act 
``to insure that the extent of oil and gas resources of the Outer 
Continental Shelf is assessed at the earliest practicable time?''

Specific

Affected Coastal States
    As specified in section 18(a)(2)(F), the MMS requests the governors 
of affected

[[Page 77667]]

states to identify state laws, goals, and policies relevant to OCS oil 
and gas. We have sent to each of those governors a letter soliciting 
such information. Pursuant to section 18(f)(5) and implementing 
regulations at 30 CFR 256.20, we request information concerning the 
relationship between OCS oil and gas activity and the states' coastal 
management programs that are being developed or administered under the 
Coastal Zone Management Act. We also request the affected states to 
submit information concerning environmental risk and potential for 
damage to coastal and marine resources associated with development of 
the OCS, information related to other uses of the sea, and any 
information in your possession that is relevant to equitable sharing of 
developmental benefits and environmental risks associated with OCS oil 
and gas activity.
Oil and Gas Industry
    As specified in section 18(a)(2)(E), the MMS requests oil and gas 
industry respondents to provide information indicating your interest in 
the opportunity to lease and develop additional OCS oil and gas 
resources. You should base this information on your expectations as of 
2002. For each area in which your company is interested, please submit 
information concerning unleased hydrocarbon potential, future oil and 
gas price expectations, and other relevant information that your 
company uses in making OCS oil and gas leasing decisions. The MMS also 
requests industry commenters to provide additional information as 
specified below (on request such information will be treated 
confidentially as explained further below).
    (1) Indicate the OCS planning area(s) where your company would be 
interested in acquiring oil and gas leases during the period 2002-2007. 
If you indicate more than one planning area, rank the areas in order of 
preference.
    (2) Indicate the number and timing of lease sales in the period 
2002-2007 that you believe would be appropriate for each planning area. 
If you suggest only one sale in a planning area, indicate whether that 
area should be considered for leasing early or late in the 5-year 
program schedule. If you suggest more than one lease sale in a planning 
area, indicate the preferred interval between sales.
    Regarding the scope and timing of lease sales, the MMS would be 
especially interested in hearing innovative ideas for the Central and 
Western Gulf of Mexico Planning Areas, which have been subject to a 
long-running policy of annual areawide leasing. For example, we would 
like to know if commenters think it would be advantageous to offer 
blocks located in shallower waters on the shelf and those in deep water 
separately and at different intervals.
    We also seek input from all respondents on ways that the leasing 
program can be designed to promote increased production of natural gas 
from the OCS. Natural gas is widely recognized to be the 
environmentally preferred fossil fuel and now accounts for about 25 
percent of the nation's fuel needs. It is expected to remain a critical 
component of our Nation's energy needs well into the 21st century. The 
Energy Information Administration, National Petroleum Council, Gas 
Research Institute, and others forecast significant increases in future 
domestic gas demand--from about 22 trillion cubic feet (TCF) to as much 
as 29 TCF by 2010 and 31 TCF or more by 2015. Much of the increased 
production that will be needed is expected to come from the Rocky 
Mountain onshore region and from the Gulf of Mexico OCS, from deeper 
wells, deeper water, and nonconventional sources.
    Currently, natural gas production from federal waters of the Gulf 
of Mexico contributes about 5.1 TCF annually (or about 23 percent) to 
domestic gas supplies. Given projected growth in domestic natural gas 
consumption, annual production from the OCS would need to increase 
significantly--from 5 TCF now to about 7 to 8 TCF or more within the 
next 15 years--to sustain its same contribution to domestic gas 
supplies. Although oil and natural gas production from the deep waters 
of the Gulf of Mexico is increasing, annual gas production from the 
shallower waters has been declining.
    As recommended in a December 1999 National Petroleum Council report 
on natural gas, an Interagency Work Group on Natural Gas has been 
established to take a lead role in developing a natural gas strategy 
and resolving issues associated with future natural gas needs. 
Consistent with the MMS' participation in that work group, and with an 
OCS Policy Committee resolution calling for consideration of rising 
natural gas demand, we are examining new ways to increase OCS natural 
gas production in the Gulf of Mexico in an environmentally responsible 
manner. For example, we are currently looking at possible incentives 
that could be employed on a sale specific basis to foster and 
accelerate exploration for and production of natural gas both in the 
deep water and gas-prone areas of the continental shelf in the Gulf of 
Mexico. Some incentives, such as deepwater royalty relief, are expected 
to encourage increased development over the long term, but other 
incentives to help bring on new production sooner and meet near-term 
national increases in demand for natural gas are also needed.
    Section 18(g) authorizes confidential treatment of privileged or 
proprietary information. In order to protect the confidentiality of 
privileged or proprietary information, include such information as an 
attachment to other comments submitted. On request the MMS will treat 
as confidential from the time of its receipt until 5 years after 
approval of the next leasing program the privileged or proprietary 
information that is attached to a response, subject to the standards of 
the Freedom of Information Act. However, the MMS will not treat as 
confidential any aggregate summaries of such information, the names of 
respondents, or comments not containing such information. As noted 
above, you should place the label ``Contains Confidential Information'' 
on any envelope containing privileged or proprietary information that 
you wish to be treated as confidential.
Department of Commerce
    Pursuant to section 18(f)(5) and implementing regulations at 30 CFR 
256.20, the MMS requests information concerning relationships between 
affected states' coastal zone management programs and OCS oil and gas 
activities. We have sent a letter to the Secretary of Commerce 
soliciting such information.
Department of Energy
    Pursuant to implementing regulations at 30 CFR 256.16, the MMS 
requests information concerning regional and national energy markets, 
OCS production goals, and oil and gas transportation networks. We have 
sent a letter to the Secretary of Energy soliciting such information.

EIS Preparation

    Pursuant to section 102(2)(C) of NEPA, the MMS intends to prepare 
an EIS for the new 5-year OCS oil and gas leasing program for 2002-
2007. This notice starts the scoping process for the EIS under 40 CFR 
1501.7 and solicits information regarding issues and alternatives that 
should be evaluated in the EIS. The EIS will address the potential 
impacts of the adoption of the proposed 5-year program. The MMS 
requests respondents to focus your comments on the significant 
environmental issues attendant to OCS oil and gas leasing and 
development

[[Page 77668]]

and on alternative options for the size, timing and location of sales 
that should be evaluated in the EIS. Please label and submit your 
comments as indicated above. We will consider all comments we receive, 
regardless of how they are labeled, for the purpose of determining the 
scope of the EIS we plan to prepare. The individual knowledgeable about 
preparation of the EIS is Richard Wildermann, telephone (703) 787-1670.

    Dated: December 6, 2000.
Walt Rosenbusch,
Director, Minerals Management Service.

BILLING CODE 4310-MR-U

[[Page 77669]]

[GRAPHIC] [TIFF OMITTED] TN12DE00.002


[[Page 77670]]


[GRAPHIC] [TIFF OMITTED] TN12DE00.003

[FR Doc. 00-31629 Filed 12-11-00; 8:45 am]
BILLING CODE 4310-MR-C