Energy Development

1. Timely Implementation of the 5-Year OCS Oil and Gas Leasing Program.  The program for 2002-2007 schedules 20 OCS lease sales in 8 OCS planning areas.  OMM will hold sales on schedule--or as close as possible--with timely decisionmaking and full consultation and coordination with affected parties.

2. Streamline Alaska Permitting Process.  Drawn-out and ambiguous permitting requirements jeopardize North Slope and offshore projects.  OMM will work with involved agencies to remove impediments and increase certainty in permitting requirements to reduce cycle time for applications.

3. Establish Incentives for Alaska Development.  There has been little recent exploratory drilling in Alaska, and only one project--partially on a federal lease (Northstar)--is producing.  OMM will investigate the best tools to encourage exploration and development offshore Alaska, and propose incentive options for upcoming OCS lease sales.

4. Resolve Coastal Zone Management Act (CZMA) Regulatory Issues with NOAA.  OMM will work in partnership with the Department of Commerce (NOAA) and coastal States to address coastal zone matters--we are working with DOC to address provisions in NOAA's Federal consistency regulations that unnecessarily impede energy-related activities.

5. Resolve Endangered Species Act (ESA) and Marine Mammal Protection Act (MMPA) Compliance Issues.  OMM will improve consultations under ESA and MMPA byu reaching agreement with NOAA ad the FWS on the processes that will be used for timely biological opinions, development of appropriate lease terms and conditions for mitigating impacts to protected species, and determining allowed incidental takes for various OCS activities.

6. Establish Deep Gas Incentive Policy and Regulations.  Since 2001, new leases in shallow waters of the Gulf of Mexico have been issued with suspension of some royalties for production of new deep gas reservoirs (>15,000' depth) to promote natural gas production from the mature areas of the shelf.  OMM is developing a regulation that will provide royalty relief to encourage development of the rest of the deep gas potential on previously-issued, shallow water leases to help increase supply and alleviate potential natural gas shortages.

Enhance Responsible Use

7. Establish Conservation Strategies.  OMM will develop policies, regulations and guidelines that provide clear direction to operators about what conservation actions MMS will require, what analysis we will undertake when evaluating requests, and what activities we will prohibit, in order to avoid loss, prevent waste, and ensure the ultimate recovery of our Nation's valuable OCS minerals.  We will design financial and other lease term provisions to promote ultimate recovery of minerals from a lease.

8. Establish and Implement an Environmental Monitoring Policy.  OMM will establish and implement an environmental monitoring policy to help evaluate the effectiveness of lease stipulations and environmental mitigation measures, and for research on what monitoring is needed for OCS oil  and gas, sand and gravel, and methane hydrates.

9. Develop and Implement a Plan for Decommissioning Pacific OCS Facilities.  Some of the 23 OCS oil and gas platforms offshore California are approaching the end of the productive life.  Operators will soon submit proposals for decommissioning which will present significant technical, engineering, safety, environmental, and material disposal challenges.  OMM is developing a strategy to ensure safe and environmentally sound decommissioning, involving close coordination with State and local governments.

Safety

10. Develop and Implement Aging Infrastructure Plan.  Offshore infrastructure components (wells, platforms and pipelines) can age rapidly if not properly maintained due to the corrosive environment of the salt water, salt air, and the well bore flow-stream.  To ensure it remains in safe and useful condition, OMM will establish an "Aging Infrastructure Plan" to include mechanisms for assessing and maintaining MMS-regulated infrastructure on the OCS.

11. Develop and Implement New Coast Guard MOU.  OMM will  work with the Coast Guard to revise our existing MOU to eliminate inconsistencies in regulatory enforcement, minimize duplicative work activities, and improve overall safety of operations on the OCS.

12. Provide Leadership Role in the International Regulators Community.  OMM is actively involved in efforts to improve government regulatory regimes and better safety and environmental performance by worldwide offshore operators.  To further such efforts, OMM will expand the scope and impact of our international program and the International Regulators Forum; and through the IRF, develop a common set of international performance measures and an international incident database.

Non-Energy/Alternative Use

13. Implement Alternative Use Legislation.  A new law is needed to establish authority for permitting various alternative energy uses or energy-related activities on the OCS (e.g., wind, wave, and solar, medical facilities to support oil and gas operations).  if Congress enacts a law that gives DOI/MMS primary management authority, we will develop the regulatory regime and work with involved agencies to outline roles and processes for coordinating input and processing applications.

14. Develop Regional Plans for Sand and Gravel Leasing.  Increased demand for OCS sand for coastal restoration raises concern about frequent and long term uses of OCS borrow areas.  OMM will develop regional management strategies that address allocation of the sand among multiple users, cumulative environmental impacts, and identify opportunities for coordination to reduce costs and impacts.

Management

15. Implement e-Government Plan.  Under our e-Gov Transformation program, OMM will re-engineer our business processes, and identify and acquire necessary IT components and web-enabled applications, to facilitate our work.  Our work will be accomplished more efficiently and more effectively, and result in better service to all customers.

16. Enhance IT Security.  OMM will develop an enhanced IT Security plan that complies with directives, prevents security breaches, is integrated with our e-Gov program, and results in full accreditation and a more security conscious work force.

17. Develop and Implement an offshore Communications Plan.  An Offshore Communications Plan (outreach and inreach) will help identify key areas in which OMM can help publicize our research, environmental protection and safety efforts.  OCS energy production data; and inform our constituents about the many benefits of OMM programs.

Improve Assessment and Information for Decisions

18. New National OCS Oil and Gas Assessment.  An update of the 2000 OCS Petroleum Assessment is needed for the Gulf of Mexico and the Atlantic OCS.  The Pacific and Alaska assessment may only need updates using the new GRASP II model.  Updated resource assessments will also be needed in about 3 years for the next 5-Year Program.

19. Develop Assessment and Conduct Environmental Research for Methane Hydrates.  Industry is moving toward production of methane (gas) hydrates as an alternative source of energy, and the potential OCS resource is huge.  OMM will develop a methodology and model for assessing tract specific resource volumes and economic value, evaluate the undiscovered resource potential, and include hydrates in our environmental monitoring efforts.

Optimal Value

20. Update and Maintain State of the Art Evaluation Models and Interpretive Technologies.  OMM will evaluate tools to maintain state-of-the-art computer models and interpretive technologies for resource assessment, oil and gas field evaluations, and evaluating the adequacy of competitive bids received at OCS oil and gas lease sales.

21. Study Economic Effects of Royalty Incentives.  OMM will analyze the actual results of our royalty incentives program to estimate, by statistical methods, how the incentives have specifically influence leasing and drilling, and to determine what the fiscal impacts are.  The findings will be useful for carrying out our fair market value responsibility and responding to outside inquiries or reviews.

Environmental Compliance | Environmental Research | Information |
International Activities | Leasing | OMM e-Gov | Operations | Overview | Partnerships |
Regulations | Resources | Royalty Relief | Safety and Oil Spill Research | Sand and Gravel |
Special Projects | Workshops & Conferences

Alaska OCS Region | Atlantic OCS Region | Gulf of Mexico OCS Region | Pacific OCS Region |

Last Updated: 08/11/2004, 07:16 AM