As background to the issue before the Subcommittee today, on February 12, 1996, MMS received a request from a private entity to hold a competitive sand and gravel sale in Federal waters offshore New Jersey since the resource would be used for commercial purposes. After carefully reviewing the request, we decided to initiate the first step in a process which may lead to a lease sale--the publication of a Request for Information and Interest (RFIN). I would like to clarify at the onset of my testimony that MMS is in the first stage of a potentially lengthy process which would require a thorough environmental analysis and compliance with the State's coastal zone management program. Further, the RFIN does not imply, nor should it be construed to indicate, that a preliminary decision to lease has been made.

Background on the Request for Information and Nominations (RFIN)

The Outer Continental Shelf (OCS) Lands Act as amended (43 U.S.C. 1331 et seq.), and the regulations issued thereunder (30 CFR 281), allow any person to request that OCS minerals be offered for competitive lease. The regulations further provide that when considering whether to offer OCS minerals in a competitive sale, the MMS may request comments and indications of interest. These comments are solicited from all interested parties through the RFIN. Therefore, the RFIN represents the very earliest stages of the planning process.

The specific purposes of the RFIN, which was published in the Federal Register on May 21, 1996, are to:(1) determine whether additional commercial interest exists in obtaining leases for Federal sand and gravel resources; (2) ascertain where that interest lies within the RFIN planning area; and (3) solicit comments, concerns and other information that would be relevant to making decisions for future steps.

Although MMS identified 160 whole or partial tracts in the RFIN for potential lease offshore New Jersey, that action should not be viewed as a commitment to lease the entire area. Rather, those tracts were included in the initial planning area as a way to determine specific areas of interest or concern. We will use the comments and nominations received under the RFIN process to help us define a more focused planning area which would undergo a thorough environmental analysis--if a decision is made to move forward with the planning process.

Information and nominations within the planning area defined in the RFIN are being sought from State and local governments, industry, Federal agencies, and all other interested parties. Information provided may include but is not limited to geologic, archaeologic, environmental, socioeconomic, biologic, navigational, recreational, commercial, and multiple-use considerations. The original comment period expired on July 20, 1996. However, MMS will extend that comment period in order to solicit additional input. Further, we have discussed the potential lease sale with those Members of Congress representing coastal districts in New Jersey and have offered to participate in local meetings with them this month to discuss the issue further. We hope these two efforts will provide our stakeholders with additional ways to voice their comments and concerns.

If the prelease process continues, MMS will substantially reduce the planning area, consistent with expressions of interest and concern, and will prepare an environmental impact statement (EIS) on the more focused area. This process will be initiated by holding one or more scoping meetings in New Jersey coastal communities near areas proposed for leasing. These meetings will afford any interested party the opportunity to present environmental information or concerns in person or for the record. The scoping process is one of the primary means by which MMS identifies significant issues to be analyzed in depth and documented in an EIS.

The prelease process is an open and deliberative one. Therefore, MMS is approaching the issue of a potential sale methodically, one step at a time. We will evaluate comments and findings and, based on those comments and sound scientific information, decide whether or not to move to the next step.

Background--MMS Marine Minerals Program

As I noted earlier in my testimony, MMS provides policy direction and guidance for development of marine mineral resources on the OCS. For the near-term, this program is focused primarily on management of OCS sand and gravel resources. Sand, including OCS sand, is needed to support governmental projects for shoreline and coastal wetlands protection. This need for OCS sand appears to be increasing as land-based and nearshore sand resources become depleted or unavailable for environmental or other reasons. Likewise, there is growing demand for OCS sand and gravel resources for commercial purposes--primarily for construction and road base materials.

In the 103rd Congress, section 8(k) of the OCS Lands Act was amended by P.L. 103-426. Prior to the amending language, marine minerals on the OCS could be leased only under a competitive lease sale process. However, the language of P.L. 103-426 now allows the Secretary of the Interior to use a negotiation process (in lieu of a competitive lease sale) when OCS sand and gravel resources are needed for qualifying public works uses--including shore protection, beach restoration and coastal wetlands protection. This amendment helps coastal States by providing a more appropriate mechanism for obtaining access to Federal sand and gravel resources for public works projects. Many shore protection projects are authorized by Congress and implemented jointly by the U.S. Army Corps of Engineers (COE) and State or local governments. When OCS sand is proposed for use in these projects, the law requires a Memorandum of Agreement between MMS and the COE and a noncompetitive mineral lease between MMS and the State or local government sponsor. For those shore protection projects sponsored solely by State or local governments using OCS sand, a noncompetitive lease is negotiated directly between the sponsor and MMS.

The MMS Marine Minerals Program has initiated ten ongoing cooperative projects with States along the Atlantic and Gulf coasts to identify suitable deposits of OCS sand for coastal restoration and evaluate the feasibility of its extraction. This partnership approach typically relies on State Geological Surveys and other agencies within the States to identify their needs and select offshore areas for study. All projects include co-funding or in-kind contributions from the States and support is encouraged from other Federal agencies, academia, special interest groups, and the public to allow for leveraging of funding and expertise.

Since 1992, MMS has co-funded a cooperative arrangement with the State of New Jersey to evaluate offshore sand resources and environmental data. The technical working group, which includes representatives from the New Jersey Department of Environmental Protection, the Army Corps of Engineers, Rutgers University and Stockton State University, is attempting to delineate those areas along the New Jersey coast that are experiencing the most severe erosion. The group's primary objective is to determine if there are suitable Federal sand resources that could be utilized for beach restoration purposes.

The MMS Marine Minerals Program has a strong environmental component to assure that OCS mineral development is accomplished in a safe and environmentally sound manner. MMS has used its scientific, technical, and contracting expertise to develop and conduct environmental studies specifically designed to provide the information necessary for effective and safe management of dredging operations on the OCS. MMS has sought to conduct many of these studies during actual dredging field projects to afford a real-world view of operating conditions. Through its Environmental Studies Program, MMS has funded a number of studies relevant to impacts associated with dredging activities on the OCS. These studies include analyses and assessments of: current and proposed marine technologies; mitigation methods to lessen or eliminate mining impacts; benthic habitat repopulation; sediment transport; and near-bottom and surface plumes.

Under the terms of the new law, MMS completed its first negotiated lease in May 1995, authorizing use of 1.24 million cubic yards of OCS sand from 7.5 miles offshore northeast Florida for use in a shore protection project sponsored by the COE and the City of Jacksonville. More recently, 808,600 cubic yards of OCS sand were made available to the U.S. Navy for shore protection at a Norfolk, Virginia naval facility. Additionally, OCS sand leases have been requested by the State of Louisiana for barrier island restoration to protect coastal wetlands and by the State of South Carolina for a shore protection project at Myrtle Beach.

Conclusion

In conclusion, let me emphasize that MMS takes its management and stewardship responsibilities very seriously and is sensitive to the concerns expressed by the Subcommittee and many New Jersey coastal officials and residents regarding the proposed sand and gravel lease sale offshore New Jersey. If the next step, the development of an EIS, is undertaken, questions that have been raised--such as the impact of dredging on water quality, beach erosion, benthic organisms, marine mammals, threatened or endangered species and commercial and recreational fisheries resources (including Atlantic striped bass, bluefish, ocean quahog and surfclam)--will be fully analyzed in compliance with the National Environmental Policy Act, Council of Environmental Quality regulations, and the Coastal Zone Management Act.

In conjunction with the development of an EIS there will be one or more scoping meetings, and the draft EIS will be released for public review providing scientific and environmental communities, Federal agencies, local public officials, citizens of coastal communities, and other interested parties with an additional opportunity to comment. Finally, during this process we will consult closely with other Federal agencies with ocean management responsibilities to ensure that all relevant environmental issues are addressed and to avail ourselves of their data and/or expertise.

Mr. Chairman, this concludes my prepared remarks. However, I would be pleased to answer any questions you or other members of the Subcommittee may have.