Leasing, Permitting, and Operating in the OCSpdf)/offshore... · Blow Out Preventer (BOP) equipment...

J. Keith Couvillion 58th Annual Meeting San Francisco June16, 2012

Leasing, Permitting, and Operating in the OCS – “The New Normal”

AAPL - Copyright © 2012. All Rights Reserved.

OCS – The New Normal

• Energy Outlook • Deepwater Horizon Event • BOEM and BSEE Organizational Structure • 5-Year Leasing Programs • National Environmental Policy Act (NEPA) • Offshore Plans and Permitting • Regulations, Legislation and Litigation • Endangered Species Act/Marine Mammal Protection Act • Trans-boundary Resource Treaty • National Oceans Policy • Marine Protected Area Expansion • Law of the Sea Treaty Ratification • Questions


OUTINE

Energy Information


Worldwide Energy Consumption is Projected to Rise

Source : EIA

Energy Consumption

U.S. Primary Energy Use By Fuel

Source: EIA

Natural Gas Projections

The Deepwater Horizon Event

The offshore “Event” that changed an Industry

An explosion and fire occurred on the Deepwater Horizon on April 20, 2010 in the US Gulf of Mexico, about 52 miles southeast of Venice, LA. The Horizon was engaged in drilling activity on behalf of BP located on Mississippi Canyon Block 252. The Deepwater Horizon sank on April 22, 2010 in nearly 5,000 ft of water. As a result of this incident 11 individuals lost their lives.

Deepwater Horizon Semisubmersible

Response Fleet

Source: BP

Horizon Incident - Industry Impact

• April 20, 2010 – Beginning of a major change in the Oil and Gas Industry

• May 27, 2010 – Secretary Salazar issues report entitled “Increased Safety Measures for Energy Development on the Outer Continental Shelf” (Buffalo Report)

• May 30, 2010 – Imposed a Moratorium on all Drilling of Deepwater Wells

• July 12, 2010 – Secretary Salazar issues 2nd Moratorium until November 30th

• October 12, 2010 – 2nd Moratorium is lifted • January 12, 2011 - National Commission on the BP

Deepwater Horizon Oil Spill and Offshore Drilling - Report Issued

• February 28, 2011 – First post-disaster deep water drilling permit approved (Noble Energy)

Collateral Damage OCS Lease Sale 215 (Western Gulf of Mexico)

Cancelled OCS Lease Sale 220 (Virginia) Cancelled Alaskan Drilling Permits Deferred Lease Sale 218 (Western GOM) and Sale 216/222

Deferred (Central GOM) Delays in plan and well permit approvals

The President’s Commission & Task Force National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling – Presidential

Executive Order dated May 21, 2010 • The Commission was co-chaired by Senator Bob Graham and former EPA Administrator

William K. Reilly. The other Commissioners were Frances Beinecke, Donald Boesch, Terry Garcia, Cherry Murray, and Frances Ulmer

• The final report was issued on January 12, 2011 Recommendations:

Independent Safety Administration Bring offshore regulations and information into the 21st century Need proactive, risk-based, regulatory and environmental analysis per location Most of the money from restoration be applied to Gulf of Mexico State Department engage other countries with Arctic environments Industry pay for independent safety administration with money paid out from leases

• Liability and Compensation Requirements under Oil Pollution Act – Staff Report No. 10 • NEPA and OCS Oil and Gas Activity – Staff Report No. 12 • A New Approach to Risk Assessment and Management – Staff Report No. 21 • Chief Counsel Report issued in March 2011

Gulf Coast Ecosystem Restoration Task Force - Presidential Executive Order dated October 5, 2010

New Regulations Issued Drilling Safety Rule – Issued as Interim

Final Rules on October 14, 2010 Workplace Safety Rule (Safety and

Environmental Management Rule – SEMS) – Issued on October 15, 2010

SEMS 2 Draft Rule Published Sept. 13, 2011 – Comments were due on Nov. 14, 2011. Final rule pending.

Directed Final Rule – Regulatory Authorities between Agencies (Effective October 1, 2011)

No new rules have been published on Blow Out Preventer (BOP) equipment or Oil Spill Response

Industry Engagement Joint Industry Task Forces/Committees Offshore Equipment Operating Procedures Well Intervention and Containment Oil Spill Preparedness and Response Center for Offshore Safety Offshore Issues Subcommittee

• State & Federal Agency Advocacy • Administrative Regulatory Rulemaking Commenting

Well Containment Marine Well Containment Company 10 Members (Chevron, ExxonMobil,

Shell, ConocoPhillips, etc…) Rapid response system available to

capture and contain oil in the event of a potential underwater well blowout

The system will be flexible and able to begin mobilization within 24 hours and can be used on a wide range of well designs and equipment, oil and natural gas flow rates and weather conditions.

The interim system (15,000 psig capping stack) is engineered to be used in deepwater depths up to 10,000’ and have initial capacity to contain 60,000 barrels & 120 MMCFG per day with potential for expansion.

Helix Well Containment Group 22 Members Operate in up to 8,000 feet of water 10,000 & 15,000 psig capping stacks Intervention equipment to cap and contain a well Capture and process 55,000 BOPD & 95 MMCFPD

Miscellaneous Risks & Opportunities Certain Operators cannot meet new OCS operating standards New mandated liability coverage (e.g. Insurance, bonding, etc…) AFE/Project approval are delayed as a result of enhanced partner engagement New operating agreement contract provisions Ocean Policy (Coastal and Marine Spatial Planning - CMSP) New equipment & oil spill response regulations Ongoing Gulf of Mexico research

“The New Normal”

Rebuilding government confidence Assurance that future

incidents will be minimized Greater worker and

environmental safety (Personal and Process Safety) Enhanced well containment

and spill response

Minerals Management Service (MMS)/Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE)/Bureau of Ocean Energy Management (BOEM) and Bureau Safety and Environmental Enforcement (BSEE) – Reorganization and new Organizational Structure


Government Reorganization Secretary of Interior Order No. 3299 Sec. 1 (July 14, 2010)

“The purpose of this Order is to separate and reassign the responsibilities that had been conducted by the Minerals Management Service into new management structures that will improve the management, oversight, and accountability of activities on the Outer Continental Shelf; ensure a fair return to the taxpayer from royalty and revenue collection and disbursement activities; and provide independent safety and environmental oversight and enforcement of offshore activities.”

BOEM (Bureau of Ocean Energy Management)

BSEE (Bureau of Safety and Environmental Enforcement)

ONRR (Office of Natural Resources Revenue)

Bureau of Ocean Energy Management (BOEM)

“The mission of the BOEM is to foster environmentally responsible and appropriate development of the Outer Continental Shelf for both conventional and renewable energy and mineral resources in a manner that is efficient and effective, and that ensures the American people receive fair market value for the rights conveyed.”

_______________________________

Resource Manager on the Outer Continental Shelf

Primary Contact for the Public (including coastal states) interested in energy uses of the Federal Offshore Estate

Headed by a Director (Tommy P. Beaudreau) under the supervision of the Assistant Secretary for Land and Minerals Management

Bureau of Safety and Environmental Enforcement (BSEE)

“The mission of the BSEE is to promote and enforce safety in offshore energy

exploration and production operations and assure that potential negative environmental and other impacts on marine ecosystems and coastal communities are appropriately considered and mitigated.”

_________________________

BSEE will apply independent regulation, oversight, and exercise enforcement powers

Including necessary engineering and safety reviews, inspecting operations for compliance, approving spill response plans, and reviewing NEPA compliance activities.

Headed by a Director (James Watson) under the supervision of the Assistant Secretary for Land and Minerals Management.

Office of Natural Resource Revenue (ONRR) “The mission of the ONRR is to ensure the full and fair return to the American

people of royalties and other monies owed for the utilization of public resources in the production of conventional and renewable energy and mineral resources both onshore and in the OCS.”

___________________ ONRR reports to the Deputy Assistant Secretary for Natural Resources

Revenue Management and Oversight within the Office of the Assistant Secretary for Policy, Management and Budget who reports to Deputy Secretary who reports to the Secretary of Interior

Perform a variety of critical functions:

• Transparent and robust collections of royalties, rents, fees, and other revenues onshore and offshore

• Auditing of industry in compliance with the terms of each lease

• Enforcement against violators, cooperate with criminal investigations and prosecutions, and assessment of civil and criminal penalties.

• Asset Management and development of regulations with respect to revenue valuation and collection and enforcement activities.

5-Year Leasing Programs


United States - Exclusive Economic Zone (3 Billion Acres – 4.1 Million Sq. Miles)

Source: DOI

Offshore Jurisdiction

Source: Dept. of Interior

OCS Regions & Planning Areas

Atlantic Region

Acres in Region 265,348,686

Active Leases 0

Acres Leased 0

Wells Drilled 46

Platforms 0

Pacific Region

Acres in Region 248,458,455

Active Leases 49

Acres Leased 241,023

Wells Drilled 1,354

Platforms 23

Alaska Region Acres in Region 1,084,461,757 Active Leases 670 Acres Leased 3,723,389 Wells Drilled 84 Platforms 0

Gulf of Mexico Region Acres in Region 159,387,771 Active Leases 5,839 Acres Leased 31 Million+ Wells Drilled/Permitted 50,000+ Platforms 3,011

Gulf of Mexico Leasing Map

2007-2012 5-Year Leasing Program

Revised 5-Year Leasing Program Published on December 23, 2010 Remaining Sales in 2007-2012 Leasing Program

• Sale 216 - Central GOM 2011 (Combined with 222) • Sale 218 - Western GOM 2011 (4Q -2011/ 1Q-2012) • Sale 219 - Cook Inlet 2011 (Cancelled) • Sale 220 - Mid-Atlantic 2011 (Cancelled) • Sale 222 - Central GOM June 20, 2012

2007-2012 5-Year Leasing Program Expires on June 30, 2012

2012-2017 5-Year Leasing Program

Draft Proposed Program Published in 2009 included 31 Lease Sales

Post Macondo – Obama and Salazar eliminated all OCS areas from consideration except CGOM, WGOM, small portion of EGOM, Cook Inlet, Beaufort Sea & Chukchi Sea

Programmatic National Environmental Impact Statement should be finalized soon

Final Leasing Program will include only 15 OCS Lease Sales

The new Leasing Program will most likely not be in place by July 1, 2012, the day after the current Leasing Program expires

2012-2017 OCS Lease Sales Sale No. Area Year

229 Western Gulf of Mexico 2012

227 Central Gulf of Mexico 2013


225 Eastern Gulf of Mexico 2014





226 Eastern Gulf of Mexico 2016


237 Chukchi Sea 2016


244 Cook Inlet 2016


242 Beaufort Sea 2017

Changes in the Leasing Process

Lease Financial Terms Initial Period: 5 years for blocks in water depths less than 400 meters 5 + 3 years for blocks in water depths of 400 to less than 800 meters 7 + 3 years for blocks in water depths of 800 to less than 1600 meters 10 years for blocks in water depths of 1600 meters or deeper Minimum Bonus Bid Amount: $25.00 per acre or fraction thereof for water depths less than 400 meters $100.00 per acre or fraction thereof for water depths 400 meters or deeper Rental Rates: $ 7.00 - $28.00 per acre or fraction thereof for water depths less than 200 meters $11.00 - $44.00 per acre or fraction thereof for water depths 200 meters to less than 400 meters $11.00 - $16.00 per acre or fraction thereof for water depths 400+ meters Minimum Royalty Rates: $7.00 per acre or fraction thereof for water depths less than 200 meters $11.00 per acre or fraction thereof for water depths 200 meters or deeper Royalty Rate: 18.75%

OCS Lease Forms

(Old Form) (New Form)

National Environmental Policy Act (NEPA)


NEPA – the Law

National Environmental Policy Act of 1969 • Effective – January 1, 1970 • Public Law 91-190 (42 U.S.C. 4321 et seq.)

Purpose: • To declare a national policy which will encourage productive and

enjoyable harmony between man and his environment;

• to promote efforts which will prevent or eliminate damage to the environment and biosphere and stimulate the health and welfare of man;

• to enrich the understanding of the ecological systems and natural

resources important to the Nation; and

• to establish a Council on Environmental Quality.

NEPA - Requirements

A NEPA assessment is triggered when oil and gas leasing, drilling or platform installation and other federal activities with the potential for environmental impacts are proposed.

Environmental assessments (EA's) and Environmental Impact Statements (EIS's) are the tools used to assess the likelihood of impacts on the environment from alternative courses of action.

All federal agencies are subject to NEPA requirements.

NEPA – Requirements cont.

NEPA establishes the requirement that all federal agencies' funding or permitting decisions be made with full consideration of the impact to the natural and human environment.

NEPA requires agencies disclose these impacts to interested parties and the general public.

The central element in the environmental review process is a rigorous evaluation of alternatives including the "no action" alternative.

NEPA in the OCS

Environment Assessment Types Used in the OCS • Programmatic EIS • Area wide EIS • OCS Lease Sale EIS • Site or activity specific EIS • Site or activity specific EA • Categorical Exclusions

Tiering Current OCS EISs in Progress

Offshore Plans and Permitting


From Idea to Production - Summary

Source: DOI

New Permitting Challenges Notices to Lessees New Guidelines

• Worst Case Discharge • Wellbore design

New Rules New Legislation Higher Level of Scrutiny

• Oil Pollution Act • National Environmental Policy Act • Coastal Zone Management Act • Endangered Species Act • Marine Mammal Protection Act

Regulations, Legislation and Litigation


Federal Agency Regulatory Responsibilities

All leasing and operations on the Federal offshore are governed by laws and regulations that ensure safe operations and preservation of the environment, while balancing the Nation's needs for energy development.

The federal agencies enforce compliance with these

regulations and periodically updates rules to reflect advancements in technology and new information.

Key Offshore Laws Outer Continental Lands Act of 1953 is the foundation law for offshore exploration and

development.

The Oil Pollution Act of 1990 (OPA 90) gave the Secretary of the Interior authority over offshore facilities and associated pipelines, with the exception of deepwater ports, for State and Federal offshore waters.

National Environmental Policy Act of 1970 (NEPA) - The NEPA requires a detailed environmental review before any major or controversial Federal action.

Clean Air Act of 1970 (CAA) - The CAA regulates the emission of air pollutants from industrial activities.

Coastal Zone Management Act of 1972 (CZMA) - The CZMA requires State review of Federal action that affects the land and water use of the coastal zone.

Clean Water Act of 1977 (CWA) regulates discharges into the oceans

Federal Oil and Gas Royalty Management Act of 1982 - The FOGRAMA requires that oil and gas facilities be built in a way that protects the environment and conserves Federal resources.

Marine Mammals Protection Act of 1972 (MMPA) - The MMPA provides for the protection and conservation of all marine mammals and their habitats.

Endangered Species Act of 1973 (ESA) - The ESA provides protection for endangered or threatened species.

Other Laws Impacting the OCS

Federal Water Pollution Control Act

Ports and Waterways Safety Act

National Historic Preservations Act

Natural Gas Policy Act

Marine Pollution Research and Control Act of 1987

Occupational Safety and Health Act

National Fishing Enhancement Act of 1984

Rivers and Harbors Act of 1899

Coastal Barrier Island Resource Act of 1982

National Ocean Pollution Act of 1978

Key Offshore Regulations

Oil and Gas Leases Code of Federal Regulations

• 30 CFR 250 • 30 CFR 256 • 30 CFR 550

Notice to Lessees and Operators Federal Register Notices

• New Laws (e.g. Oil Pollution Act of 1990, etc.)

• Proposed Rulemaking

Key Offshore Administrative Regulations Designation of Operator Exploration Plan (EP) Plans of Development (POD)

• Development Operations Coordination Document (DOCD) • Development and Production Plan (DPP)

Application for Permit to Drill (APD) • Sundry Notices and Reports on Wells

Minimum Royalty Suspension of Production (SOP) Suspension of Operations (SOO) Oil Spill Financial Responsibility (OSFR) Bonding

http://www.mms.gov/Assets/Photos/ForHomePage/500/520MMSseal.jpg�

Other Agencies Involved in the OCS U.S. COAST GUARD

DEPARTMENT OF DEFENSE

CORPS OF ENGINEERS

U.S. AIR FORCE

DEPARTMENT OF TRANSPORTATION

COMMERCE DEPARTMENT

U.S. NAVY

U.S. FISH AND WILDLIFE SERVICE

ENVIRONMENTAL PROTECTION AGENCY

STATE DEPARTMENT

DEPARTMENT OF ENERGY

TREASURY DEPARTMENT

FEDERAL ENERGY REGULATORY COMMISSION

U.S. GEOLOGICAL SURVEY

DEPARTMENT OF HOMELAND SECURITY

MARINE MAMMAL COMMISSION

Legislation

H.R. 3534 (Rahall) “Consolidated Land, Energy, and Aquatic Resources Act of 2009” (CLEAR Act)

S. 3663 (Reed) Senate version of an Oil Spill Bill S. 1813, Federal-aid highway and highway safety construction

programs Reauthorization - Subtitle F—”Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act of 2012 (RESTTORE ACT)”

S. 2146 – (Bingaman) the Clean Energy Standard Act of 2012 Oil Spill Liability Trust Fund Oil Pollution Act of 1990

Key Offshore Lawsuits Defenders of Wildlife v. MMS (S.D. Al. May 17, 2010), a lawsuit brought by the Defenders of Wildlife

(DOW) asserting that the MMS violated the National Environmental Policy Act (NEPA) and the Administrative Procedure Act (APA) in granting categorical exclusions for central or western Gulf of Mexico (GOM) offshore exploration and production, and in failing to prepare a Supplemental Environmental Impact Statement (SEIS) in response to the Deepwater Horizon incident.

Center for Biological Diversity v. Salazar (D.D.C. May 18, 2010), a lawsuit brought by the Center for Biological Diversity (CBD) challenging MMS’s use of a categorical exclusion from certain NEPA requirements for central or western GOM offshore exploration and production.

Gulf Restoration Network and Sierra Club v. Salazar (E.D. La. May 18, 2010), a lawsuit brought by environmental groups challenging the MMS’s issuance of a Notice to Lessees (NTL) that exempted GOM Exploration Plans from certain MMS regulations.

CBD v. Salazar (5th Cir. May 27, 2010), a petition for review of MMS’s approval of twenty-five Exploration Plans and DOCDs in the Gulf of Mexico. In its petition, CBD has asserted that MMS, in approving these plans, failed to comply with NEPA, the Outer Continental Shelf Lands Act (OCSLA), and the APA. CBD seeks a declaration by the court that by approving the EPs and DOCDs, the MMS is in violation of NEPA, OCSLA and the APA

Hornbeck v. Salazar (US Eastern District Court Louisiana June 7, 2010), a lawsuit brought by a service boat provider claiming the moratoria was arbitrary, capricious, and issued as an abuse of discretion under OCSLA and APA.

National Resources Defense Council v. Salazar, No. 2:10-cv-1882 (E.D.La.), certain NGOs are challenging the government’s July 1, 2004 finding that geological and geophysical exploration for mineral resources, particularly regarding seismic surveys in the Gulf of Mexico, has no significant impact on the marine environment.

Endangered Species Act (ESA) & Marine Mammal Protection Act (MMPA)

The purpose of ESA is to protect and recover imperiled species and the ecosystems upon which they depend (December 28, 1973)

The Act is administered by the U.S. Fish and Wildlife Service (FWS) and the Commerce Department’s National Marine Fisheries Service (NMFS). The FWS has primary responsibility for terrestrial and freshwater organisms, while the responsibilities of NMFS are mainly marine wildlife such as whales and sea turtles.

Under the ESA, species may be listed as either endangered or threatened. “Endangered” means a species is in danger of extinction throughout all or a significant portion of its range. “Threatened” means a species is likely to become endangered within the foreseeable future. All species of plants and animals, except pest insects, are eligible for listing as endangered or threatened.

Endangered Species Act (ESA)

All marine mammals are protected under the MMPA. The MMPA prohibits, with certain exceptions, the take of marine mammals in U.S. waters and by U.S. citizens on the high seas, and the importation of marine mammals and marine mammal products into the U.S. (October 31, 1972)

The Department of Commerce through the National

Marine Fisheries Service (NMFS) is charged with protecting whales, dolphins, porpoises, seals, and seal lions. Walrus, manatees, otters, and polar bears are protected by the Department of the Interior through the U.S. Fish and Wildlife Service (FWS). The Animal and Plant Health Inspection Service, a part of the Department of Agriculture, is responsible for regulations managing marine mammals in captivity.

Marine Mammal Protection Act (MMPA)

ESA/MMPA - Background

Increasing public concern over the impact of industry and society as a whole on the marine environment especially to the animals that live in the oceans

News events (Atlantic: Right Whale)

Increased regulation and regulatory engagement throughout the world

In the U.S. there is more scrutiny concerning exploration and production operations on the marine mammals and endangered/threatened species

ESA/MMPA - Takes

An ESA take is defined as “to harass, harm, pursue, hunt, shoot, wound, kill, trap, capture, or collect, or attempt to engage in any such conduct of a listed (endangered or threatened) species.”

An MMPA take is defined as “to harass, hunt, capture, kill or collect, or attempt to harass, hunt, capture, kill or collect any marine mammal."

What happened to cause a focus on the oil and gas industry?

Navy’s Low and Mid-Range Frequency Sonar NGO interest

• Natural Resources Defense Council Sounding the Depths published Lawsuit over Navy Low Frequency Sonar

(LFS) Array Permit

When did we find out about the new focus?

OCS Lease Sale 184 (2002)

ESA - Section 7 Consultation

Biological Opinion Lease Stipulations; Notice

to Lessees (NTL)

What does this all mean? More restrictions on E&P activities in the GOM by BOME, BSEE and

NMFS under both ESA and MMPA.

More scrutiny on seismic activities and the explosive removal of offshore structures.

Potential focus on other manmade sound sources in the water that are

created from operations.

E&P Operations

What are the areas of concern? • Physical & Behavioural Sound in the Water Vessel Strikes Discharges

Manmade Sound in the Water Seismic Surveys Geo-hazard Surveys Drilling activity

• Vertical Seismic Profiles • Operational Noise

Construction Activity Lease Production Operations Associated Vessel Activity Platform Removal and Site Cleanup

Vessel Strikes

Seismic Vessels Crew Boats Supply Vessels Tugs Barges Drilling Vessels

Discharges

Produced water Drill cuttings Drilling muds Rain water runoff Air emissions Other wastes

• (e.g. Trash and Debris)

MMPA Defines Two Levels of Harassment

Level A: “any act of pursuit, torment, or annoyance which has the potential to injure a marine mammal or marine mammal stock in the wild”

Level B: “any act of pursuit, torment, or annoyance which

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} but which does not have the potential to injure a marine mammal or marine mammal stock in the wild”

MMPA Small Take Authorizations

Authorizations are issued, upon request, when the activities are determined by NOAA Fisheries to: (1) Have a negligible impact on the species or stock of marine

mammal(s) ; (2) Take only small numbers of marine mammals; and (3) Not have an unmitigable adverse impact on the availability of

marine mammals intended for subsistence uses.

Small Take Authorizations Incidental Harassment Authorization “IHA”

(3-month to 3-year process) No potential for serious injury or mortality or the potential for

injury and death can be prevented through mitigation measures One-year “IHA”

Small Take Authorizations Letter of Authorization “LOA” (6-month to 12-year process)

Potential for serious injury or mortalities and there are no mitigation measures that could be taken to prevent injury or death

On-going, multi-year projects Requires creation of 5-year regulations One-year renewable “LOA” issued once

regulations are promulgated

What Now?

More ESA Section 7 Consultations and Biological Opinions • Incidental Take Authorizations

for Turtles Promulgation of New Rules

• Letters of Authorization for Marine Mammals

Incidental Harassment Authorization Applications

Where do we go from here??? New Geological and

Geophysical ITA Rulemaking in the Gulf of Mexico

Renewal of the ITA for Explosive Removal of Offshore Structures

Comprehensive Biological Opinion for the Gulf of Mexico

Discussion of other lease operations

Trans-boundary Resource Treaty


Trans-boundary Resource Treaty

U.S. and Mexico Maritime Treaties - Gulf of Mexico New Treaty recently negotiated Treaty creates a framework to allow development of oil and

gas resources that are common offshore

Exploration Area

U.S. Mexico

Trans-boundary Resource Treaty Treaty signed by both countries on February 20, 2012 Mexico Senate approved treaty ratification on April 12, 2012 U.S. implementing legislation pending along with treaty

ratification

Reservoir Unit

U.S. Mexico

National Oceans Policy

Nation Oceans Policy – Why??? Currently our country lacks a clear

national policy governing the use of the oceans that touch our shorelines

U.S. governance of the oceans is confusing, has overlapping jurisdiction between agencies and is covered by fragmented laws

The oceans that touch U.S shores are managed by over 140 different federal laws and implemented by 18 different federal agencies

On June 12, 2009, President Obama signed a Memorandum establishing an Interagency Ocean Policy Task Force, led by the Chair of the Council on Environmental Quality

The President’s memorandum charged the Task Force with, within 90 days, developing recommendations that include:

(1) A national policy for the oceans, our coasts, and the Great Lakes;

(2) a United States framework for policy coordination of efforts to improve stewardship of the oceans, our coasts, and the Great Lakes; and

(3) an implementation strategy that identifies and prioritizes a set of objectives the United States should pursue to meet the objectives of a national policy.

On September 10, 2009, the Task Force submitted its interim report to the President addressing the first three tasks outlined above

On July 19, 2010, the final report is issued


Nation Oceans Policy

Presidential Executive Order 13547 -- Stewardship of the Ocean, Our Coasts, and the Great Lakes – signed on July 19, 2010

Purpose: “The ocean, our coasts, and the Great Lakes provide jobs,

food, energy resources, ecological services, recreation, and tourism opportunities, and play critical roles in our Nation's transportation, economy, and trade, as well as the global mobility of our Armed Forces and the maintenance of international peace and security.”


The oceans policy of the United States shall be to:

(i) Protect, maintain, and restore the health and biological diversity of ocean, coastal, and Great Lakes ecosystems and resources;

(ii) Improve the resiliency of ocean, coastal, and Great Lakes ecosystems, communities, and economies;

(iii) Bolster the conservation and sustainable uses of land in ways that will improve the health of ocean, coastal, and Great Lakes ecosystems;

(iv) Use the best available science and knowledge to inform decisions affecting the ocean, our coasts, and the Great Lakes, and enhance humanity's capacity to understand, respond, and adapt to a changing global environment;

National Ocean Policy – cont. (v) Support sustainable, safe, secure, and productive access to, and uses of

the ocean, our coasts, and the Great Lakes;

(vi) Respect and preserve our Nation's maritime heritage, including our social, cultural, recreational, and historical values;

(vii) Exercise rights and jurisdiction and perform duties in accordance with applicable international law, including respect for and preservation of navigational rights and freedoms, which are essential for the global economy and international peace and security;

National Ocean Policy – cont.

(viii) Increase scientific understanding of ocean, coastal, and Great Lakes ecosystems as part of the global interconnected systems of air, land, ice, and water, including their relationships to humans and their activities;

(ix) Improve our understanding and awareness of changing environmental conditions, trends, and their causes, and of human activities taking place in ocean, coastal, and Great Lakes waters; and

(x) Foster a public understanding of the value of the ocean, our coasts, and the Great Lakes to build a foundation for improved stewardship.


The United States shall promote this policy by: Ensuring a comprehensive and collaborative framework for the

stewardship of the ocean, our coasts, and the Great Lakes that facilitates cohesive actions across the Federal Government, as well as participation of State, tribal, and local authorities, regional governance structures, nongovernmental organizations, the public, and the private sector;

Cooperating and exercising leadership at the international level;

Pursuing the United States' accession to the Law of the Sea Convention; and

Supporting ocean stewardship in a fiscally responsible manner.

National Oceans Policy - Administration National Ocean Council (Council)

the Chair of the Council on Environmental Quality and the Director of the Office of Science and Technology Policy, who shall be the Co-Chairs of the Council;

the Secretaries of State, Defense, the Interior, Agriculture, Health and Human Services, Commerce, Labor, Transportation, Energy, and Homeland Security, the Attorney General, the Administrator of the Environmental Protection Agency, the Director of the Office of Management and Budget, the Under Secretary of Commerce for Oceans and Atmosphere (Administrator of the National Oceanic and Atmospheric Administration), the Administrator of the National Aeronautics and Space Administration, the Director of National Intelligence, the Director of the National Science Foundation, and the Chairman of the Joint Chiefs of Staff;

the National Security Advisor and the Assistants to the President for Homeland Security and Counterterrorism, Domestic Policy, Energy and Climate Change, and Economic Policy;

an employee of the Federal Government designated by the Vice President; and

such other officers or employees of the Federal Government as the Co-Chairs of the Council may from time to time designate.

Ecosystem-Based Management: Adopt ecosystem-based management as a foundational principle for comprehensive management of the ocean, our coasts, and the Great Lakes.

Coastal and Marine Spatial Planning: Implement comprehensive, integrated, ecosystem based coastal and marine spatial planning and management in the United States.

Inform Decisions and Improve Understanding: Increase knowledge to continually inform and improve management and policy decisions and the capacity to respond to change and challenges. Better educate the public through formal and informal programs about the ocean, our coasts, and the Great Lakes.

Coordinate and Support: Better coordinate and support Federal, State, tribal, local, and regional management of the ocean, our coasts, and the Great Lakes. Improve coordination and integration across the Federal Government and, as appropriate, engage with the international community.

Resiliency and Adaptation to Climate Change and Ocean Acidification: Strengthen resiliency of coastal communities and marine and Great Lakes environments and their abilities to adapt to climate change impacts and ocean acidification.

National Oceans Policy – Priority Objectives

National Oceans Policy – Priority Objectives Regional Ecosystem Protection and Restoration: Establish and implement an integrated ecosystem

protection and restoration strategy that is science-based and aligns conservation and restoration goals at the Federal, state, tribal, local and regional levels.

Water Quality and Sustainable Practices on Land: Enhance water quality in the ocean, along our coasts, and in the Great Lakes by promoting and implementing sustainable practices on land.

Changing Conditions in the Arctic: Address environmental stewardship needs in the Arctic Ocean and adjacent coastal areas in the face of climate-induced and other environmental changes.

Ocean, Coastal, and Great Lakes Observations, Mapping, and Infrastructure: Strengthen and integrate Federal and non- Federal ocean observing systems, sensors, data collection platforms, data management, and mapping capabilities into a national system, and integrate that system into international observation efforts.

National Oceans Policy (CMSP)

Coastal and Marine Spatial Planning (CMSP) “A comprehensive, adaptive, integrated, ecosystem-based, and

transparent spatial planning process, based on sound science, for analyzing current and anticipated uses of ocean, coastal, and Great Lakes areas. Coastal and marine spatial planning identifies areas most suitable for various types or classes of activities in order to reduce conflicts among uses, reduce environmental impacts, facilitate compatible uses, and preserve critical ecosystem services to meet economic, environmental, security, and social objectives. In practical terms, coastal and marine spatial planning provides a public policy process for society to better determine how the ocean, our coasts, and Great Lakes are sustainably used and protected -- now and for future generations.”

Support sustainable, safe, secure, efficient, and productive uses of the ocean, our coasts, and the Great Lakes, including those that contribute to the economy, commerce, recreation, conservation, homeland and national security, human health, safety, and welfare; Protect, maintain, and restore the Nation's ocean, coastal, and Great Lakes resources and ensure resilient ecosystems and their ability to provide sustained delivery of ecosystem services; Provide for and maintain public access to the ocean, coasts, and Great Lakes; Promote compatibility among uses and reduce user conflicts and environmental impacts; Improve the rigor, coherence, efficiency, and consistency of decision-making and regulatory processes; Increase certainty and predictability in planning for and implementing new investments for ocean, coastal, and Great Lakes uses; and Enhance interagency, intergovernmental, and international communication and collaboration.

National Oceans Policy – CMSP Goals

National Marine Sanctuary Gulf of Mexico Expansion

Flower Garden Banks National Marine Sanctuary

(Source: NOAA Sanctuaries)

Flower Garden Banks

About the Sanctuary

Designated in 1992 Includes: East and West Flower

Garden and Stetson Banks Stetson Bank added in 1996 Located 93 to 104 nautical miles

offshore in the Gulf of Mexico Area: 42.5 square nautical miles

(56 square statute miles) Water Depth: 55’ to 500’

Flower Garden Banks


Flower Garden Banks - Expansion


Islands in the Stream


United Nations Convention on the Law of the Sea


Law of the Sea Treaty (LOST)

The United Nations Convention on the Law of the Sea (UNCLOS) treaty is a comprehensive international framework that defines the rights and responsibilities of nations in their use of the world’s oceans. It establishes guidelines for coastal nations’ maritime zones and boundaries, the environment, navigational rights, and the management of marine natural resources including energy development, laying cables and pipelines, mining and marine scientific research.

Source: US State Dept.

Law of the Sea - Highlights

9 year negotiation, 1973-1982

Over 161 nations and the European Union have signed and ratified the treaty

1982 – US declined

1983 – President Reagan’s Ocean Policy Statement (Adopts EEZ)

1994 – Part XI Revision, submitted to Senate for advice and consent

Law of the Sea - U.S. Claims

12 mile territorial sea

200 mile Exclusive Economic Zone

• Brings 4.1 million square miles of ocean under U.S. jurisdiction (7% of the Earth’s surface)

• Rights to extent the EEZ

Sovereign rights over the exploration and exploitation of the natural resources of our continental shelf

Extended EEZ

Source: US State Dept.

Law of the Sea Benefits

America's right to lay claim to vast areas of the Arctic, which, absent U.S. ratification, cannot be established and recognized internationally;

Unfettered ability in foreign waters to lay and maintain undersea

communications cables that keep America connected across the globe; American rights of passage, navigation and safety along critical maritime

transit routes, including through the South China Sea and the Strait of Hormuz;

Access to economically important minerals in international waters,

including rare earth minerals widely used in medical equipment, modern technology such as smart phones, flat screen TVs, electric vehicles and U.S. defense systems.

Law of the Sea – Revenue Sharing

Oil, gas and mineral production from the continental shelf, beyond 200 miles is subject to modest royalty payment

Distributed among member States

Rate: 1% in year 6 of production; increasing by 1% annually to a maximum of 7%

U.S. industry participated in development of rate formula

Anticipated that funds would come from royalties paid to U.S. government

Role of International Seabed Authority (ISBA) limited to devising formula for distributing revenues to member States

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