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HomeMy WebLinkAbout22.94 OCS OIL LEASES11111111 lill 11111111111111111111111111 lill III lill *NEW FILE* 22.94 OCS OIL LEASES ;i a3d. 9yy 0 CITY OF NEWPORT BEACH P.U. BOX 1768, NEWPORT BEACH, CA 92663.3884 Office of Mayor 714/640-2110 March 9, 1982 Honorable Edmund G. Brown, Jr., Governor Office of Planning and Research 1400 Tenth Street Sacramento, CA 95814 SUBJECT: OUTER CONTINENTAL SHELF OIL LEASE SALE NO. 68 Dear Governor Brown: The City of Newport Beach supports the goal of energy independence for the nation and recognizes the importance of Outer Continental Shelf (OCS) oil and gas development to that goal. However, the City also recognizes that offshore exploration and drilling activities create serious environmental hazards which threaten the abundant economic, recreational, aesthetic, and natural resources of our beaches and harbor. Accordingly, the City of Newport Beach opposes development of OCS oil and gas leases offshore of Newport Beach unless the most stringent envi- ronmental Safeguards are.provided. The importance of clean,.beautiful waters and shores to the economic livelihood, recreational resources, and wildlife sanc- tuaries of Newport Beach cannot be overemphasized. Millions of visitors from the region and nation spend millions of dollars each year to enjoy our beaches, boating, hotels, restaurants and shops. The beaches of Newport Beach and Crystal Cove State Park are among the most heavily used in the State primarily because of their uniqueness and pristine beauty. The Newport Harbor is home to more than 9,000 boats, and its channels and inlets extend into the neighborhoods and community fabric of the City. This unique- ness is shared each year by hundreds of thousands of vacationers in rental units which comprise 50% of the City's housing. The wildlife sanctuaries of our intertidal pools and the Upper Bay Ecological Preserve are enjoyed by visitors for their abundance of sealife and waterfowl. The attractiveness of these recrea- tional resources is the primary support for the thriving tourist industry of the City. 3300 Newport Boulevard, Newport Beach - Honorable Edmund Brown, Jr. . March 9, 1982 Page 2 The potential for despoilation of these resources by OCS oil and gas activities is enormous. Seismic instability of the entire geomorphic province is well documented and is a serious threat to the integrity of drilling structures. A major oil spill could not be cleaned easily from the area's rocky coves, inlets, sensitive plant life, and would affect the recreational economy for years. More likely, incidental and chronic spillage of crude oil, drilling muds and debris, and similar substances would lower the water quality, dirty the beaches and harbor, and affect sensitive eco- logical food chains. Air pollution from rigs and ships will blow onto our shores and detract from the air cleansing affects of off- shore breezes. Permanent platforms near the unique and spectacular coastline will seriously detract from its scenic and tranquil quality so important to the tourist industry. The combined impacts of these environmental hazards are potentially disasterous to the quality of living and the economic well being of Newport Beach. To protect its economic and recreational resources, the City of Newport Beach will fake whatever actions are available to insure that the most stringent environmental safeguards are employed during the leasing, explorations, and drilling for oil and gas on the OCS offshore of the City. The City of Newport Beach, specifically, recommends the following environmental safeguards on OCS tracts offered in Lease Sale No.68: 1. Tracts 164, 165, and 169 are in precautionary sea lanes. They were deleted from last sale because of collision hazards. They should be deleted again, or stipulation #6 limiting sea surface structures should be extended to the entire tracts. 2. The shallow gas notice to bidders indicates a serious problem on these tracts and they should be deleted. Also, the shallow Oil and Gas map of the EIS shows a large shallow gas field on tract No. 188, but the notice does not apply to this tract. If these tracts are not deleted, at least make this mere notice a binding stipulation, and extend it to tract No. 188. 3. The geologic stipulation on most tracts indicates the serious seismic hazards in the area and warrants deletion of these tracts. Also, new information, generated by investigations relative to the San Onofre Nuclear Power Plant, indicates that the Newport -Inglewood fault extends into tracts No. 187 and No. 188. At a minimum, the geo- logic stipulation should be extended to those two tracts. Honorable Edmund. Brown, Jr. • March 9, 1982 Page 3 4. The biologic stipulation on all tracts in the sale demon- strates the valuable marine life populations and habitats of the area. However, the stipulation indicates only that site -specific studies may necessary. Such studies should be mandatory prior to any drilling or construction. 5. Permanent platforms near the unique and spectacular coast line will seriously detract from the scenic and recreational quality so important to the tourist industry. Catalina Island is often visible from the shore and any platform between it and the shore will be detrimental. At a minimum, stipulation No. 6 disallowing structures or drilling rigs within portions of some tracts should be extended to exclude any structure or rig within seven (7) miles of shore. 6. Offshore exploration and drilling will serve to further deteri- orate the air quality of Southern California. At a minimum, the lease sale should include a stipulation that all structures must conform to'local Air Quality Management District regulations. 7. The rationale for accelerated offshore exploration is national energy independence. Accordingly, the lease sale should be open only to American companies; and, foreign nationals should be specifically excluded in the lease sale document. 8. To better balance the economic risks to tourism with the economic advantages of national oil independence, the bonus bid plus royalty'system of bidding should be utilized for all sale of OCS leases offshore of Newport Beach; and, the minimum bonus bids, annual rents, and royalty percentages should be raised to the highest dollar levels. The City of Newport Beach as the State of Secretary of the Interior to consider fully mental hazards of OCS oil and gas activities above recommendations in the Final Notice of Thank you for your cooperation. Sincerely, EVELYN R. HART Mayor Pro Tem ERH:KJD/m CC: Congressman Robert E. Badham Senator Alan Cranston Senator S. I. Hayakawa Supervisor Thomas Riley be - City Council City Manager Californian"to urge the the potential environ- and to include the Lease Sale No. 68. CITY OF NEWPORT BEACH P.U. BOX 1768, NEWPORT BEACH, CA 92663.3884 Office of Mayor 714/640-2110 March 9, 1982 Mr. Michael Fisher, Executive Director California Coastal Commission 631 Howard Street, Fourth Floor San Francisco,, CA 94105 SUBJECT: OUTER CONTINENTAL SHELF OIL LEASE SALE NO. 68 Dear Mr. Fisher: The City of Newport Beach supports the goal of energy independence for the nation and recognizes the importance of Outer Continental Shelf (OCS) oil and gas development to that goal. However, the City also recognizes that offshore exploration and drilling activities create serious environmental hazards which threaten the abundant economic, recreational, aesthetic, and, natural resources of our beaches and harbor. Accordingly, the City of Newport Beach opposes development of OCS oil and gas leases offshore of Newport Beach unless the,mose stringent envi- ronmental safeguards are provided. The importance of clean, beautiful waters and shores to'•the economic livelihood, recreational resources, and wildlife sanc- tuaries of Newport Beach cannot be overemphasized. Millions of visitors from the region and nation spend millions of dollars each year to enjoy our beaches, boating, hotels,restuarants and shops. The beaches of Newport Beach and Crystal Cove State Park are among the most heavily used in the State primarily because of their uniqueness and pristine beauty. The Newport Harbor is home to more than 9,000 boats, and its channels and inlets extend into the neighborhoods and community fabric of the City. This unique- ness is shared each year by hundreds of thousands of vacationers in rental units which comprise 50% of the City's housing. The wildlife sanctuaries of our intertidal pools and the Upper Bay Ecological Preserve are enjoyed by visitors for their abundance of sealife and waterfowl. The attractiveness of these recrea- tional resources is the primary support for the thriving tourist industry of the City. 3300 Newport Boulevard, Newport Beach y. t. Mr.. Michael Fish • March 9, 1982 Page 2 The potential for despoilation of these resources by OCS oil and gas activities is enormous. Seismic instability of the entire geomorphic province is well documented and is a serious threat to the integrity of drilling structures. A major oil spill could not be cleaned easily from the area's rocky coves, inlets, sensitive plant life, and would affect the recreational economy for years. More likely, incidental and chronic spillage of crude oil, drilling muds and debris, and similar substances would lower the water quality, dirty the beaches and•harbor, and affect sensitive.eco- logical food chains. Air pollution from rigs and ships will blow onto our shores and detract from the air cleansing affects of off- shore breezes. Permanent platforms near the unique and spectacular coastline will seriously detract from its scenic and tranquil quality so important to the tourist industry. The combined impacts of these environmental hazards are potentially disasterous to the quality of living and the economic well being of Newport Beach. To protect its economic and recreational resources, the City of Newport Beach will take whatever actions are available to insure that the most stringent environmental safeguards are employed during the leasing, explorations, and drilling for oil and gas on the OCS offshore of the City. The City of Newport Beach, specifically, recommends the following environmental safeguards on OCS tracts offered in Lease Sale No. 68: 1. Tracts 164, 165, and 169 are in precautionary sea lanes. They were deleted from last sale because of collision hazards. They should be deleted again.; or stipulation #6 limiting sea surface structures should be extended to the entire tracts. x:•-,. 2. The shallow gas notice to bidders indicates a serious problem on these tracts and they should be deleted. Also the shallow Oil and Gas map of the EIS shows a large shallow gas field on tract No. 188, but the notice does not apply to this tract. If these tracts are not deleted, at least make this mere notice a binding stipulation, and extend it to tract No. 188. 3. The geologic stipulation on most tracts indicates the serious seismic hazar'ds in the area and warrants deletion of these tracts. Also, new information, generated by investigations relative to the San Onofre Nuclear Power Plant, indicates that the Newport -Inglewood fault extends into tracts No. 187 and No. 188. At a minimum, the geo- logic stipulation should be extended to those two tracts. Mr. Michael Fish • March 9, 1982 Page 3 4. The biologic stipulation on all tracts in the sale demon- strates the valuable marine life populations and habitats of the area. However, the stipulation indicates only that site -specific studies may be necessary. Such studies should be mandatory prior to any drilling or construction. 5. Permanent platforms near the unique and spectacular coast line will seriously detract from the scenic and recreational quality so important to the tourist industry. Catalina Island is often visible from the shore and any platform between it and the shore will be detrimental. At a minimum, stipulation No. 6 disallowing structures or drilling rigs within portions of some tracts should be extended to exclude any structure or rig within seven (7) miles of shore. 6. Offshore exploration and drilling will serve to further deteri- orate the air quality of Southern California. At a minimum, the lease sale should include a stipulation that all structures must conform to local Air Quality Management District regulations. 7. The rationale for accelerated offshore exploration is national energy independence. Accordingly, the lease sale should be open only to American companies; and, foreign nationals should be specifically excluded in the lease sale document. 8. To better balance the economic risks to tourism with the economic advantages of national oil independence, the bonus bid plus royalty system of bidding should be utilized for all sale of OCS leases offshore of Newport Beach; and, the minimum bonus bids, annual rents, and royalty percentages should be raised to the highest dollar levels. The City of Newport Beach asks the Coastal Commission to continue to protect our coastal resources by opposing Lease Sale No. 68 unless the above recommendations are included in the Final Notice of Sale. Thank you for your cooperation. Sincerely, �'�Ld EVELYN R. Mayor Pro ERH:KJD/m /_ /dam HART Tem M CC: Congressman Robert E. Badham Senator Alan Cranston Senator S. I. Hayakawa Supervisor Thomas Riley be - City Council City Manager 0 0 aa. �?y CALIFORNIA COASTAL COMMISSION 631 Howard Street, San Francisco 94105—(415) 543-8555 March 5, 1982 TO: CALIFORNIA COASTAL COMMISSIONERS FROM: MICHAEL L. FISCHER, EXECUTIVE DIRECTOR AND WILLIAM TRAVIS, DEPUTY DIRECTOR FOR TECHNICAL AND SUPPORT SERVICES SUBJECT: STAFF RECOMMENDATION ON THE DEPARTMENT OF THE INTERIOR PROPOSED NOTICE OF SALE FOR LEASE SALE =68 This recommendation was developed by Mari Gottdiener, working under the direction of L. Thomas Tobin, Manager of Energy and Ocean Resources Division. STAFF RECOMMENDATION The staff recommends the Commission urge the Department of the Interior to delete ten tracts directly outside Santa Monica Bay, eight tracts within the Santa Barbara Channel Ecological Preserve Buffer Zone, four tracts in the Vessel Precautionar"v Area offshore the Ports of Los Angeles and Long Beach, and five tracts offshore Orange County that adjoin the State's Oil and Gas Sanctuary. Further, the staff is recommending stipulations, or conditions for leasing, to protect commercial fishing, require subsea completions in certain areas, conduct biological surveys, barge drill muds to shore, enhance vessel traffic safety, and require tankers, not barges to transport produced oil from the Outer Banks. BACKGROUND The Department of the Interior proposes to offer for sale to the oil companies for exploration and development 172 tracts in Lease Sale =68 in June 1982 (Exhibits 1, 2). The sale spans an area from Point Conception to the Mexican Border. Under the OCS Lands Act, the Governor has until March 29, 1982, or 60 days from the day the Proposed Notice of Sale was published, to respond to the notice. The Commission must also act within that time both to incorporate its recommendation into the state's response and to transmit its own recommendation as the state's coastal management agency to the Department of the Interior. The Commission initially recommended deletion of tracts within Santa Monica Bay at the Call for Nominations stage, in February 1980. Former Interior Secretary Andrus deleted some tracts but left those tracts at the mouth of the Bay to be analyzed in the Environmental Impact Statement. In its August 1981 comments on the Draft EIS, the Commission recommended more complete analysis on the impacts of leasing the tracts located at the mouth of the Bay. The Commission also recommended at the DEIS stage that the Department of the Interior delete tracts within the Ecological Preserve Buffer Zone, Precautionary Area, and Channel Islands National Marine Sanctuary. Secretary Watt "deferred" sale of the 35 tracts within the marine sanctuary. • - 2 - 0 ANALYSIS The staff recommends that the Commission adopt the following recommendation to the Department of the Interior on proposed OCS Lease Sale =68: 1. Santa Monica Bay. The Commission urges the Department of the Interior to delete the ten tracts proposed for sale that lie at the mouth of Santa Monica Bay - tracts 128, 129, 136, 137, 138, 145, 146, 147, 151, and 152 (Exhibit 3). Former Secretary of the Interior Andrus deleted 40 tracts within Santa Monica Bay after the Call for Nominations in May 1980, taking into account the comments of "local citizens and State and local units of government". Later the Commission requested further analysis on tracts adjacent to Santa Monica Bay in the Final EIS because of potential impacts on air quality, recreation, tourism, and biological resources. The Bureau of Land Management analyzed these tracts and concluded that there would be a measurable reduction in the socio-economic impacts to the coastal economy by deleting the tracts adjacent to Santa Monica Bay as the Commission recommends. BLM notes that six of these tracts have serious geological hazards - tracts 123, 128, 129, 137, 138, and 147. These tracts have all been identified as having geological conditions that could "adversely affect oil and gas operations". Although BLM concludes that existing regulations and the geologic stipulation (which requires that the lessees demonstrate to the Minerals Management Service that drilling can proceed safely on these identified hazard tracts) are expected to mitigate adverse geologic concerns, the Commission does not rest as much faith on the stipulations and believes that tracts with identified hazards should not be included in the sale. Despite this analysis in the FEIS, the Depart- ment of the Interior nevertheless included these tracts in the Proposed Notice of Sale. Although the Final EIS states that deletion of these tracts would not significantly change air quality, the Commission is extremely concerned with the air quality in the coastal zone portion of the Los Angeles basin. This air basin is renowned for its severe air quality problems. Emissions from offshore drilling and production activities on the tracts adjacent to Santa Monica Bay will travel onshore and exacerbate an already grave health problem. On this basis alone, the Department of the Interior should delete these tracts, In its study of "Air Quality Aspects of the Development of Offshore Oil and Gas Resources", the Air Resources Board concludes that oil and gas development activities can have a direct adverse air quality impact on onshore areas. "Climatological data indicate that the potential for increased air pollution problems along the coastal areas of Southern Calfiornia resulting from emissions released over offshore graters is great, especially during the summer when air pollution concentrations in urban areas are already high." Emissions result from all stages of development: during the exploration phase, emission of nitrous oxides can reach one ton per day from a single drillship, and more than one drill - ship may be operating at any one time; and during the production phase, unmitigated emissions of nitrous oxides from an OCS platform can also exceed one ton per day. The section of coastline onshore of these ten tracts is the most heavily used beach area in the country, receiving in excess of 56 million visitors a year. Tourists from all over the world, as well as millions of inner city residents of the Los Angeles metropolitan area, come to these beaches. The threat of oil spills in this area is a real one - over the life of Lease Sale-68, BLM estimates 23 spills over 1000 barrels each, originating from Sale 268 leases, existing leases and imports in the Sale =68 area. Some of these spills will reach the shore of the Santa Monica Bay area. In the interest or the public welfare, this densely populated and visited area must be protected against such a risk. For all of the above reasons, the Commission recommends that these tracts be deleted from the sale. 2. Santa Barbara Channel Ecological Preserve Buffer Zone. The Commission urges that the Department of the Interior delete the eight tracts within the Buffer Zone of the Ecological Preserve: tracts 62-67, 71, and 72 (Exhibit 4). The Preserve and Buffer Zone are in federal waters adjacent to the State Oil and Gas Sanctuary. Leasing of tracts within the Buffer Zone could result in drainage of petroleum resources in State waters, which the state has determined are sensitive enough to forego the benefits of petroleum development. Sale of these tracts violates the purpose and spirit behind the Preserve and Buffer Zone designation. Former Secretary of the Interior Hickel established the preserve and buffer in 1969 after the blow-out of Union's Platform A in the Channel. The.blow- out resulted in a massive oil spill fouling the waters and beaches of Santa Barbara to such an extent that the Secretary was compelled to offer "compensation" to Santa Barbara. In the Secretary's words: the Preserve and Buffer were estab- lished "to protect and preserve the values of this area ... for the benefit and enjoyment of this and future generations ... from all forms of disposition, including mineral leasing". (emphasis added, Federal Register, Volume 34, No. 58, March 26, 1969 The Preserve has stood for 13 years as a monument to the spill and a symbol of the Department of the Interior's commitment to protect Santa Barbara from future recurrences. Leasing of tracts in the Buffer Zone at this time marks a sharp reversal of federal policy, is a breach of the public trust, and undermines the people's confidence in the federal government's promise of protection. The Depart- ment of the Interior is disregarding its own public land order and policies in even considering these tracts for lease. In balancing the benefits derived from leasing these eight tracts with the damage done to the City of Santa Barbara and the possible drainage of petroleum resources in State waters adjoining the Buffer Zone, the Commission finds that, in the interest of the public welfare, these tracts should be deleted from Sale 468. 3. Precautionary Area. The Commission urges that the four tracts within the Vessel Precautionary Area offshore the Ports of Los Angeles and Long Beach be deleted from the proposed lease sale: tracts 164-167 (Exhibit 5). The conver- gence in the Precautionary Area of several major vessel traffic routes from northern and southern California, Alaska and Asia could present a threat to the safe navigation of vessels, both OCS-related and other, in this area, if OCS structures are located within tracts 164-167. The congestion in this area could easily lead to collisions and rammings between OCS-related vessels or structures and other vessels entering or leaving the Ports of Los Angeles or Long Beach. 4. Tracts Offshore Orange County. The Commission urges the Department of the Interior to delete five of the eleven tracts proposed for sale that lay offshore central Orange County. These five tracts, 176, 177, 178, 184, and 185 (Exhibit 5), adjoin the State Oil and Gas Sanctuary. The Commission also urges the Depart- ment of the Interior to impose stipulations on the other six tracts to protect the popular beaches and tourist industries of these communities. The Cities of Newport Beach and Laguna Beach and many of their citizens have expressed concerns about the impacts of offshore activities on their economies and biological resources and have opposed leasing all eleven tracts.. The Commission is concerned with the potential effect on state oil and gas resources, the risk of oil spills, the visual impact of offshore platforms on the community character, and the threat of potential oil spills on sensitive wetlands in Upper Newport Bay. The Commission recommends that Interior delete the five tracts lying adjacent to the state's 3-mile limit and Oil and Gas Sanctuary. Development of these tracts could result in drainage of oil and gas resources on which the state has foregone development and revenues in the interest of public welfare. The sanctuaries were created to protect onshore areas considered too sensitive to subject to the risks of oil development. Strong tidal currents in Newport Bay would prevent effective booming and other oil recovery techniques from protecting the unique and already rare coastal wetlands in the area. An oil spill reaching the popular Orange County beaches would prevent their public use for several years. The area known as the Irvine Coast would be affected by the proposed sale. The recreational and scenic value of this area is illustrated in that a newly acquired state park along the Irvine Coast was the most expensive parkland acquisition in state history. Platforms, visible from the parkland, would spoil the environment the state and local citizens seek to create. Moreover, Orange County beaches support a tourist trade which would also be affected by the sight of offshore platforms. The use of subsea completions may be required by the Commission in its consistency review of an OCS Plan of Development submitted for the remaining six tracts to protect the scenic quality of these onshore areas. Before any other method of producing would be allowed, the lessee must demonstrate that subsea completions are infeasible or more environmentally damaging than platforms. 5. Outer Banks, The Department of the Interior is proposing to lease 33 tracts in the ruteBanks" (Exhibit 1). These tracts range as far as 130 miles offshore the coast. Development of these tracts would necessarily involve use of tankers and barges --pipelines to shore would have to be extremely long and pass through water depths currently beyond the technology of offshore pipelaying. further, the Tanner and tortes Banks are major habitats for the red and purple forms of the rare, fragile hydrocoral ally ora. Protection of the coral communities is essential because of the slow growth of these species--one-hal` to one centimeter per year. Because the red and purple forms or coral found on the offshore banks are So unusual and slow to recover from any damage, the.Department of the Interior should survey the Banks areas to determine the locations of these coral formations before permitting exploratory or development drilling on Sale =68 leases. (See Biological Survey Stipulation, below.) Furthermore, before placing anchors, moorings, bottom - founded vessels or platforms, pipelines, or other structures, operators should be required to conduct additional site specific biological surveys to locate the site of such operations away from major coral formations. A stipulation should be imposed to prevent the discharge of drill muds and cuttings in the identified coral areas in the Outer Banks area. The Commission has a long-standing policy favoring use of pipelines to transport produced oil to shore for processing, based on the impacts that barging and tankering may have on onshore air quality and the risks of oil spills posed. In areas where pipelines would not be feasible, the Commission has considered the mode of transpor- ting oil a factor in supporting or opposing leasing of an offshore area. In the case of the Outer Banks, the tracts are so far away from the coastal zone that pipelines simply could not be laid to shore, not only because of distance but because of extreme water depths between the banks and the coast. • -5- Because effects on the coastal zone from exploration and development of the Outer , Banks would be minimal except forthe barging or tankering activities, the Commission does not oppose leasing of these tracts but does recommend that the Department of the Interior impose a stipulation requiring that the safest available means of tankering be used to transport oil. Further, the stipulation should state that no barges be allowed. Available air pollution control technology and procedures for unloading and loading oil can better protect air and water quality in the coastal zone through tanker transportation because these controls are not applicable to barges. 6. Stipulations. Exhibit 3 includes the text of stipulations in the Proposed Notice of Sale. Commercial Fishinq Training Program. The Commission recommends that the Department of the Interior impose a stipulation requiring, not merely encouraging lessees to participate in a commercial fishing training program, similar to the one imposed for Lease Sale 7#53. The Proposed Notice of Sale includes a Notice to Lessees "encouraging" them to include such programs in their exploration and development plans; this is not sufficient protection for the commercial fishing industry. The fisheries training program included for Lease Sale =53 was strongly supported by the Commission and should be included in this proposed sale as well because of the important fishing areas in the Channel, San Pedro Bay, and the Inner Banks. These fishing areas should be given the maximum amount of protection possible during exploration and development activities. The training program, informing personnel on the oil rigs of the potential conflicts between their operations and commercial fishing and how best to avoid these conflicts, is a positive step taken by the Department of the Interior in the past few years. It definitely should be a standard lease stipulation in any OCS areas with commercial fishing activity as an appropriate mitigation measure. Subsea Completions. The Commission recommends that the Department of the Interior impose a stipulation that requires lessees filing a Plan of Development for a tract within twelve miles of shore to install subsea completions, or production systems, instead of platforms, whenever feasible. Lessees must demonstrate that subsea completions would not be feasible for these development proposals or would be more environmentally damaging than platforms before Commission concurrence with the Plan would be made. Subsea completions are a method of producing oil and gas without use of a surface platform, so that the visual impacts of the offshore activities are substantially, if not totally, negated. Gathering lines from the seafloor wellheads transport the oil and gas to either a nearby platform, or to points onshore. This stipulation would be imposed on tracts 174, 175, 182, 183, 187, and 188 only. Biological Survey. The Commission recommends that the Department of the Interior modify its Biological Survey Stipulation, number 1, by requiring surveys of biologically sensitive areas at the time of leasing and sharing of the informa- tion with State officials. The present procedure of waiting until a lessee submits a Plan of Exploration to drill an exploratory well, having the lessee perform the survey if the Minerals Management Service (formerly USGS) "has a reason to believe" that a biologically sensitive area exists, and then submitting the information to the MMS does not insure the best possible survey or resulting mitigating measures. The Commission is concerned in particular with the sensitive hydrocoral Allopora communities on the Outer Banks and recommends that a survey of these banks be conducted at the time of leasing. • -6- Drilling iduds Disposal. The Commission recommends that the Department of Interior ipulat include a stion requiring the barging to shore of drill muds and cuttings. for all drilling activities occurring within 1000 meters of state waters and for drilling occurring within 1000 meters of coral formations in the Tanner and Cortes Banks. Discharge of muds and cuttings on the Outer Banks could harm the coral communities and discharges within 1000 meters of State craters could affect water quality in the coastal zone. Vessel Traffic Safety. The Commission recommends that the Department include a stipulation stating that no surface structures be permitted within 500 meters of the Vessel Traffic Separation Scheme in the Santa Barbara Channel and the Gulf of Santa Catalina, nor within 500 meters of the Port Access Routes to be designated by the U.S. Coast Guard. The presence of temporary or permanent structures near or within the VTSS pose an unacceptable risk of vessel collision. No leasing of tracts through which the VTSS passes should occur without imposing this stipulation. Air Quality. The Commission recommends that the Department of the Interior impose a stipulation that would require all lessees to use best available control technology on drilling rigs and platforms to reduce air pollutant emissions. The stipulation should further require all feasible measures to reduce nitrous oxide emissions in particular from drilling rig operations. Tankering. The Commission recommends that the Department of the Interior impose a stipulation requiring that no barges be used to transport oil from the Outer Banks. Further, only tankers with the safest available technology for loading and unloading oil be permitted to transport produced oil from the Outer Banks leases. 7. Offshore Liquefied Natural Gas Terminal Site. The Commission urges that special consideration be given to Tract 83 in the Ventura Flats area. This area was identi- fied by the Commission in 1978 as the most appropriate siting area fora lique*ied natural gas (L`IG) terminal off the shoreline of California. Because the need for an LNG terminal is uncertain at the present time, the Commission is concerned that a possible conflict between a platform and an LNG terminal may arise. Before the Commission will be willing to concur in a Plan of Development for that tract, the applicant will have to demonstrate that there will be no conflict with development of an LNG terminal or that producing oil and gas on the tract can be done in a manner to eliminate potential conflicts. 8. Consistency. The Commission has repeatedly advised the Department of the Interior that a consistency determination is required prior to the final notice of lease sale. Specifically with regard to Lease Sale =68, the Commission advised the Department of its position in 1980 when it submitted comments on the Call for Nominations. ';then the Commission received the proposed notice of sale for Lease Sale :i68, the Executive Director once again advised the Department of its position on consistency. This posi- tion has been reiterated many times - in mediation over Lease Sale =48 and in liti- gation over Lease Sale =53. By this reference, the Commission incorporates its previous record on this issue as part of its comments for Lease Sale =68. in its transmittal letter enclosing the proposed notice of sale received on February 1, 1982, the Department appeared to make a "n�q,t4'e" determination on the consistency issue, though it did not so advise the Commission. The Department stated that it had examined the California Coastal ;Management Program (COMP) and found no direct effects on the California coastal zone. This conclusion was unsupported since the Department submitted no analysis of the CC?1P. The conclusion likewise contradicts congressional legislative history and the published federal district tour-, npiaii on in Lease Sale =53. If the Department has in fact examined the COMP, the Commission urges 0 0 the Department to share its analysis. The Commission reminds the Department of the Interior that Judge Pfaelzer's opinion requires a consistency determination in all but the most unusual circumstances. If, in fact, Lease Sale 468 is such an unusual circumstance, the Commission believes that the Department should advise the public of the basis for its conclusion. The Department requested the Commission to identify potential consistency problems. It is the Department's position that these problems do not arise at the lease sale stage but can be postponed to a later date. The Commission's recommendations on the Call for Nominations, the Draft Environmental Impact Statement (DEIS), and this recommendation have all identified the actual specific tracts that present consis- tency problems at the lease sale stage. Thus, the Commission has fulfilled its obligation to identify consistency problems. It is irresponsible of the Department of the Interior to ignore these problems and let leasing take place on the identified tracts. Companies and the Department will spend stockholder and taxpayer money to lease tracts that will be undevelopable. Because the Department has given no rationale for its disagreement with the Commission and its failure to accept the Commission's recommendation, it once again disregards state participation in the leasing process. The Department of the Interior requested the Commission to discuss in detail relevant sections of the CCiMP that pose consistency problems. In some respects, the Commis- sion views this request as a double-edged sword. The Commission previously identified Coastal Act sections in Lease Sale =53. The Department later charged in litigation that it need not submit a consistency determination.because the Commission had already determined that the Sale H3 was inconsistent with the Coastal Act. To avoid that claim in Lease Sale -68, the Commission advises the Department that Sections 30221, 30231, 30232, 30233, 30251, 30260, and 30260 should be.addressed in a consistency determination. Further, the Commission believes that if the Department deleted the tracts, as identified in this recommendation, the Commission could find the proposed notice of sale consistent with the Coastal Act. Further comment is necessary on the "unusual" procedures followed by the Department of the Interior in Lease Sale 468. The Department circulated the DEIS prior to transmittal of the Proposed Notice of Sale. Thus, when the Commission commented on the DEIS, it did not know which tracts the Department intended to offer for lease. Thus, no departmental decision had been made. Later, when the Department submitted the proposed notice, it implied that the Commission had somehow "waived" its right to request a consistency determination because the Commission had failed to do so in its DEIS comments. In fact, the Commission had informed the Department long before the DEIS was circulated and renewed its request upon receipt of the actual proposed notice delineating the contemplated federal activity. The Commission disagrees with the Department's letter attached as Exhibit 6. • • EXHIBIT 1 ` SAIRA DANBAnA I:;IiFORI(A "FSHGRE AREA _ Ornara "POSED 'Cr LEASE Z) C J, � y lt Shrift ' .-_ Monlca LOS ANULcS YLong Beach .. , _._� _ .^ ....~'.. i1V�V1.�_lilV 11�•(/^'� Newport Beam [rt .. •�-(CUtalhla r... Y. «i-r ,-... »_-. ..^.+�.'•�....�... .y i...... ... ... ...«._. y~_�n �I Ocoanaida -`M ;T^'-V'- - ~ .� F-. iAl i.�F� ^- ._.` `� � , trPl y.f ' . .•- _J ..�_. i...-.-�.-� r,i ��---•I1�♦-- _ .-... Y - ._ir1 �'c i7j ...»- '�...-+.1. . ��_._... _ .-..»-_.-�ri{ \ SAN OIEOO LEGEND i -�' , ' . ' ..... ' ! �" , .... iTWO LEASED TRAC[J .. .. .. .._.-...._.->„.,[`w^,_^•-+) ✓: ...:r 1 .^-r r'1_�.... 1.4,44 )POSEO SALE .-. ... _.....__ -.. .. .. _ .. _ i 88 TRACTS I _• t - - _ r .-_ .—�.... ..y .. .._ .. REVISED 1-22-82 BUREAU OF LAND MANAGEMENT Robinson (202) 343-5717 Shone (213) 688-7109 For Release: February 3, 1982 Fergus (213) 688-6740 PROPOSED OIL AND GAS LEASE OFFERING (OCSr#68) CHANGED FROM 174 TRACTS TO 172 TRACTS The Bureau of Land Management announced today that a Proposed Notice of Sale for OCS offering #68 offshore Southern California has been signed by the Secretary of the Interior. The proposed notice is published in the Federal Register of February 3, 1982. The Proposed Notice of Sale was sent January 29 to the Governor• of California to obtain his comments on the size, timing, or location of the sale. The Governor has sixty days to comment under the provisions of the OCS Lands Act. The Bureau of Land Management had previously announced on December 23, 1981, that 174 tracts comprising about 892,000 acres would be offered in the proposed oil and gas lease offering. A change in the number of tracts has been announced by the Bureau of Land Management. One tract has been removed as a result of a combination of military and other considerations, rendering the area unavailable for drilling activity. One tract has been combined with another to increase the acreage of the tract offered. This changes the total from 174 tracts to 172 tracts and decreases the estimated acreage from 892,000 acres to 891,000 acres. In addition, bidders are notified in the proposed sale notice that tract numbers 68-082 and 68-095 may be deleted prior to the actual sale due to potential Congressional action involving these tracts. The lease offering is tentatively scheduled for June 2, 1982. The tracts in the proposal lie in waters up to 4,900 feet deep and as far offshore as 84 miles. Details of the proposed lease offering will be found in the Federal Register notice. A map is attached showing the proposed lease sale area. X X X • • EXHIBIT 3 LOS ANGELES oo I TNR r- \ SANTA MONICA i zs0 `^'l Dune MILE 11 14S,�146i tr147 ',\ } + i MOn.- � rS8 t,152; I ° 123 PROPOSED SALE NO. 68 TRACTS TRACTS ADJACENT TO SANTA MONICA BAY Location of Tracts Adjacent to Santa Monica Bair _. _. z___ra—a=-.ae_---�•w:r""•L�.:'_w=_+::y�T3•nW`eaL�«LSun'.�u1tiait' - -, __�.-n,.+-vwn •� EXHIBIT 4 SANTA BARBARA 81 241'4 "Y 40. 344.. 946' 930 j 70 ✓�,4yaT �— aa4 i`a sa 1 �aa�l e51 j 78 i 79 80 i 81 i 82 83 I 84 87 as 89 90 91 92 93 94 I 95 E:itT t�2-1e. • � i "arid: ` SANTA CRUZ ISLAND ANACAPA ISLAND 109 110 111 1115118i 117118 �1 SANTA BARBARA CHANNEL ECOLOGICAL PRESERVE ja ADJUNCT TO THE ECOLOGICAL PRESERVE (BUFFER ZONE) 141EXISTING LEASED TRACTS 99 PROPOSED SALE NO. 88 TRACTS Location of Tracts in the Adjunct to the Santa Barbara Channel Ecological Preserve 04 i • EXHIBIT 5 ;: o #I F9VcwJTl0fJk Y APEA = IxXK SALE '71 TRACZS VESSEL PRECAUTIONARY AREA ORANGE COUNTY • EXHIBIT 6 Ap, Un.td States Department of the Interior N OFFICE OF THE SECRETARY <" WASHINGTON, D.C. 20240 tar. Michael L. Fischer F E$ 1 dL California Coastal Commission 631 Howard Street, 4th Floor San Francisco, California 94105 Dear Mr / ischer: The Draft Environmental Impact Statement (DEIS) for CCS Sale 68 (Southern California) was sent to the California Coastal Commission (CCC) this past June. Your office responded by providing corments on the DEIS and they were considered in preparation of the FEIS. However, as of this date, which is well beyond the 45 day notification period provided for by 15 CFP. 930.35(•a), we have not received a cequest from the CCC for a consistency determination for the pre -lease activi- ties associated :with this sale. We are, though, enclosing for your information our assessment of Sale 68 which we performed in accordance with the requirements promulgated under Section 307(c)(1) of the Coastal Zone 'management Act (CZMA). (See attachment 1.) In snort, we found no direct effects on the California coastal zone from the pre- laase activities associated with Lease Sale 68. The effects on coastal land and water uses which :fay arise from post -lease activities are not, for Sale 68, direct effects of leasing decisions out ra+:her the effects of subsequent decisions and events. ,:hese effects are subject to a consistency certification under Section 307(c).(3), but not a consistency determination under Section 307(c)(1). Through your authority under Section 307(c)(3), the CCC can, barring the excep- tional case of an override by the Secretary of Commerce, prevent or require the modification of any of the federally permitted CCS operational activities, and their associated facilities, ''which affect any land use or water use in the coastal zone and are found by you to be inconsistent with the Ca4P. Through Cnis stat- utory framework, California is assured that, by exercising its own authority, only consistent activities will occur after lease award. ;Agile we found no direct effects on the California coastal zone, we nevertheless have examined the enforceable provisions of the CGr1P as approved by the Secretary of Commerce and found none that applies to CCS oil and gas pre -leasing activities, CCS lease sales, or lease award. In fact, we found nothing in the CLIP with which CCS Sale 68 is inconsistent. The provisions of the CC:IP which ,may be relevant to CCS oil and gas activities for purposes of consistency are appli- cable only to exploration and development activities, their associated facilities, and their potential effects on the coastal zone. Notwithstanding our finding of no 'direct effects" for activities in preparation for Sale 68, we want to assure that you have an opportunity for an "early compre- hensive review of proposed federal leasing activities" as indicated in your letter of Cctober 28, 1981. We have thus enclosed a copy of the ?roposed notice 0 0 EXHIBIT 6 of sale and an extra copy of the MS for Sale 68 for your review (Attachments 2 and 3). These documents reflect the best information we have on the potential effects of post -lease activities which may follow from the sale, including the best information on potential cumulative effects crhich may occur over the next few decades. Due to the high uncertainty as to if, when, where, how :auch, and what kind of production activity may take place which .may affect the California coast, the enclosed information about Potential effects is based on hypothetical scenarios and must, of course, be viewed as speculative. As indicated in my September 30, 1981, letter to Governor Bronco (attachment 4), we are keenly interested in and would like to understand as fully as Possible your views and any concerns you may nave about potential consistency problems associated with the exploration and development activities projected in the scenarios for Sale 68. Specifically, would you please inform us of any of the exploration and development operational activities, associated facilities (see 15 CM 930.21), and the specific effects of these activities and facilities :which, in your view, may pose future consistency problems under the 7-1=2. if you identify ootential consistency problems, ?lease indicate in detail the subsections of the Ca'IP with which each activity, facility, or effect has the Potential to y inconsistent. Please also explain, with reference to the relevant subsection of the CCMP, the rationale for your :relief that -each potential consistency problem exists and the .canner in which the agglicaole subsection of the CCZ1P is enforced. Your thorough resptonse to these requests aiL a11,-�r us to adequately consider your consistency concerns 'a_fore the Secretary -eves ais decisions on the final notice of sale. :ie belisve t!:at a full exchange of informticn and viaws as outlined s.:Gve :ould be extremely useful in removing obstacles :which in the past .aay have 1=_d to conflicts Letween :ne CCC and the X•cartmEnt oc the Interior. auch early .aunication and consultation is one of the ',8y ,urx-zSs of the C2.1 sot and i e Co' ands Act :zenclments. It is also vital to sound Jecisionroakking at Loth the state and federal levels. sIa lcak forward to yuur response. J. :Robinson ;Test Assistant Secretary - 'olicy, Budget and Administration Enclosure C� EXHIBIT 6 ATEACHMEW 1 Description of assessment of Effects of OCS Lease Sale 68 In accordance with the Section 307(c)(1) federal consistency provisions of the Coastal Zone Managenent Act (CZMA) and Subpart C of 15 CPR 930, we have assessed the possible effects of the Department's pre -lease activities associated with OCS lease Sale 68 and found that none directly affects the California coastal zone. The rationale for this finding is set forth below. We have determined, after a careful review of the Proposed Notice of Sale, that, in itself, a lease award for any of the tracts listed in the Proposed Notice of Sale for OCS Sale 68 will neither permit nor require a lessee to undertake an activity with coastal zone affects. Before the California coastal zone could be affected by any exploration or development activity, the lessee of any of these tracts must seek ar.0 receive the approval of Deputy Conservation 'tanager for such an activity. Therefore we have found, in light of the April 20, 1979 Opinion of the Department of Justice, the October 10, 1979 opinion of our Solicitor regarding the plain meaning of the Section 307(c)(1) requirement, and the facts associated with the proposed lease sale, that none of the terms and conditions of proposed lease Sale 68 nor the subsequent award of leases for any of these tracts will directly affect the California coastal zone. In making this finding, particular attention ;as Paid to the following aspects of the proposed sale: the stipulations, the final configuration of lease tracts and the award of leases. Ln general, lease stipulations impose legal requirements on the lessee. Consequently, the requirements of each proposed stipulation for this sale were examined. The Secretary's decision to issue the Final _btice of Sale will identify exactly which tracts will be offered for sale. The proposed notice provides the best estimates of these tracts. We thus examined the geographical location of the tracts listed in the proposed notice. The subsequent award of leases to successful bidders grants them conditional rights. Therefore, we scrutinized the terms of the potential leases to determine if lessees would be permitted or required to undertake an activity with coastal zone effects. ?Tone of these three aspects or any other aspects of the activities associated with the lease sale were found to directly affect_ the Coastal zone. The effects on the California coastal zone which may arise from exploration, development and production activities associated with Sale 68 are not the direct effects of leasing decisions. Rather, they are the effects of actions resulting from subsequent decisions and events, the details of which are in large part unknown prior to the exploration stage. These post -leasing stage actions are subject to U.S. Geological Survey permits and thus the rigorous consistency requirements of Section 307(c)(3). 0 EXHIBIT 6 Attachment 4 0, �- United States Department of the Interior . �. OFFICE OF THE SECRETARY ` WASHINGTON, D.C. 20240 Honorable Edmurrl G. Browny Jr. SEP 3 0 1981 Governor of California Sacramento, California 95814 Dear Governor Brown. At a Septerber 16, 1981 hearing before the Oceanography Subcorrmittee of the House Merchant Marine and Fisheries Committee, questions were raised by coastal state witnesses about the federal consistency provisions of the Coastal Zone Management Act (a -MA). One of the key concerns expressed was the need for comprehensive review of early phases of federal activities and consideration of state views by federal agencies. The witnesses expressed a desire to 1-Ave such coordination so that potential consistency problems could be- discussed and if possible resolved at the early planning stages. We believe that such an exchange of information and views would tr kane£icial to coastal states and our Department, especially for the Outer Continental Shelf (CCS) oil and gas program. ConsEquently, in the future our Departzent will provide ycur state's ZM agency with a copy of each proposed notice of sale for each OCS sale which affects your state, along with the environmental L.�pact statement and any otne'r pertinent infor.aaticn. We will request that your state CZM agency respond by inhcating the particular potential exploration and develcpment acti'llties and effects that might pose future consistency conflicts with SpEci.fic erLOrceatle provisions of our Cz F y t1 program. We will then consld_r this information in our decisions on the content of the final notice of sale. In essence, we want YOU to ::,xow that under this procedure states will have an even ;.rare active and significant voice in the planning phase of the OCS program. We believe that -many state consistency concerns can be understood more fully and addressed more precisely by such consultation. However, if this coordination isn't fully suocessful, under the CZKk your state still has extensive authority to block the issuance of permits for any inconsistent OCS exploration or developmnt activities. This provides a safeguard to resolve any rerraining problems. We want to be a good neighbor, especially in terms of the OCS oil and gas program. Both the CZM and OCS programs are too important to the nation to allow conflicts to evolve from misunderstanding and unanswered questions. 14e believe this new policy is consistent with the spirit of the CZMA and will go a long way to assuring the cooperation we bath seek. We hope you agree. Sincerely, J. Robinson West Assistant Secretary - policy, Budget and Administration I __-) 0 C 0) �* CALIFORNIA COASTAL COMMISSION J' J 631 Howard Street, San Francisco 94105—(415) 543-8555 October 25, 1978 TO: STATE COMMISSION AND INTERESTED PARTIES RECS� J pcv p �rt.ent �C�C1TY 09��Y t16WP CAu1e�ACH, \ FROM: WILLIAM BOYD, CHIEF STAFF COUNCIL, AND JOHN GRATTAN, SPECIAL CONSULTANT SUBJECT: PROPOSED EMERGENCY REGULATIONS TO PROMULGATE PROCEDURES UNDER WHICH THE COMMISSION WILL CONCUR OR OBJECT TO AN APPLICANT'S "CONSISTENCY" CERTI- FICATION FOR OUTER CONTINENTAL SHELF (OCS) EXPLORATION AND PRODUCTION ACTIVITY WHICH MAY AFFECT THE COASTAL ZONE (For Commission consideration at its meeting of October 31, 1978) Staff Analysis Section 307(c) of the Federal Coastal Zone Management Act (CZMA) provides a mechanism whereby a coastal State which has a Coastal Zone Management Program approved by the Secretary of Commerce can require a consistency certificate from an applicant for a Phderal permit or from a person who submits a plan for exploration of or development or production from the Outer Continental Shelf, if the activities contemplated under any of the above permits or plans may affect the State's coastal zone. This deter- mination of consistency must state that the activities which will be undertaken comply with the State's coastal zone management program and will be conducted -in a manner consistent with such program. The coastal State may then concur or object to the applicant's consistency determination. The applicant's permit or OCS plan activity cannot be approved by a Federal agency if there is an unresolved objection of the coastal State, unless the Secretary of Commerce determines that the activity proposed is either consistent with the objectives and purpose of the CZMA or is necessary in the interest of national security. This statutory procedure provides an essential mechanism by which a State can ensure that activities on the OCS affecting its coastal zone which occur under a Federal permit or,'-OCS plan will not be in conflict with the State's approved Coastal Zone Management Program. Without this protection a State has no control over many activities, such as those which occur on the OCS, which may have a great effect on its coastal land and water uses. On August 31, 1978, Judge Robert J. Kelleher, of the United States District Court for the Central District•of California, (American Petroleum Institute, et al. vs Robert Knecht, et al..), upheld the California Coastal Zone Management Program and approval by the Secretary of Commerce of the Program. In doing so, he lifted an order which had prevented the consistency provisions of Section 307 of the CZMA from going into effect. Thus, as of August 31, 1978, all applicants for Federal permits or persons submitting certain OCS plans which may affect the land or water uses of the California coastal 0 -c -2- zone must attach a consistency certification to the Federal application. In order for the State of California to act on these consistency certifications, regulations which provide for public notice, hearing, and manner of processing consistency deter- minations must be promulgated. Several OCS plan submissions are imminent. Without immediate adoption of such regulations, consistency determinations for these major undertakings cannot be made and the public welfare of the citizens of California will suffer in that its adopted and approved coastal management plan may not be in effect to review actions which affect land and water uses in the California Coastal zone. Regulations will also be needed to set procedures for consistency determinations for Federal grants, Federal development activities, and Federal permits not inv_olbing OCS activities. The staff will, at a later date, prepare such draft regulations for the Commission and the public. Staff Recommendations The staff recommends that the Commission adopt the attached Statement of Emergency and emergency regulation. The Commission may but is not required to hear public testimony in its consideration of the emergency regulation. If the emergency reg- ulation is adopted, a fully noticed public hearing must be held within 120 days or the regulation will expire. The attached regulation is not yet numbered in proper sequence within the Adminis- trative Code; thus, the staff recommends that it be directed to fill in the proper numbers prior to submission to the Secretary of State, and the Rules Committee of each House of the Legislature, as required by State law. ye. 1� a -2- TITLE 14 - DIVISION 5.5 - CAL11ORNIA COASTAL COMMISSION Emergency Regulations to promulgate procedures under which the.California Coastal Commission will concur or object to an applicant's "consistency" certification for an Outer Continental shelf (OCS) exploration or development and production activity which may affect the coastal zone. Statement of Emerqenc Section 307(c) of the Federal Coastal Zone Management Act (CZMA) provides a mechanism whereby a coastal State which has a Coastal Zone Management Program approved by the Secretary of Commerce can require a consistency certificate from an applicant for a Federal permit or from a person who submits a plan for exploration of or development or production from the Outer Continental Shelf, if the activities contemplated under any of the above permits or plans may affect the State's coastal zone. This deter- mination of consistency must state that the activities which will be undertaken comply with the State's Coastal Zone Management Program and will be conducted in a manner consistent with such program. The coastal State may then concur or object to the applicant's consistency determination. The applicant's permit or OCS plan activity cannot be approved by a Federal agency if there is an unresolved objection of the coastal State, unless the Secretary of Commerce determines that the activity proposed is either consistent with the objectives and purposes of the CZMA, or is necessary in the interests of national security. This statutory procedure provides an essential mechanism by,which a State can ensure that activities on the OCS affecting its coastal zone which occur under a Federal permit or OCS plan will not be in conflict with the States -approved Coastal Zone Management Program. Without this protection a State has no control over many activities, such as those which occur on the OCS, which may have a great effect on its coastal land and water uses. On August 31, 1978, Judge Robert J. Kelleher, of the United States District Court for the Central District of California, (American Petroleum Institute, et al. vs Robert Knecht, at al.), upheld the California Coastal Zone Management Program and approval by the Secretary of Commerce df the Program. In doing so, he lifted an order which had prevented the consistency provisions of Section 307 of the CZMA from going into effect. Thus, as of August 31, 1978, all applicants for Federal permits or persons submitting certain OCS plans which May affect the land or water uses of the California coastal zone must attach a consistency certification to the,Federal application. In order for the State of California to act on these consistency certifications, regulations which provide for public notice, hearing, and manner of processing consistency deter- minations must be promulgated. Several OCS plan submissions are imminent. Without immediate adoption of such regulations, consistency determinations for these major undertakings cannot be made and the public welfare of the citizens of California will suffer in that its adopted and approved coastal management plan may not be in effect to review actions which affect land and water uses in the California Coastal Zone. CALIFORNIA COASTAL COMMISSION PROCEDURES FOR CONSISTENCY DETERMINATIONS FOR OCS EXPLORATION AND DEVELOPMENT OR PRODUCTION PLANS AND FOR FEDERAL PERMITS I. OCS Plans 11. Definition The term "applicant" means any individual, corporation, partnership, association, or other entity organized or existing under the laws of any State, the Federal government, any State, regional, or local government, or any entity of such Federal, State, regional or local government, who submits to the Secretary of the Interior, following management program approval, an OCS plan which describes in detail Federal license or permit activities. §2. Preliminary Submissions a. At least 30 days prior to submission to the Pacific Area Oil and Gas Supervisor, United States Geological Survey (USGS - Supervisor), of any plan required to be submitted under the Outer Continental Shelf Lands Act (43 USC 1331 at sec.) for the exploration, development or production of areas leased under that Act, any applicant wishing to undertake such activ- ities in areas adjacent to California waters shall submit to the Executive Director of the Commission a description of all activities required to be described in detail in the OCS plan which- affect coastal land and water uses. This shall include*at minimm% activities requiring the following federal approvals: USGS - Department of the interior - Approval of offshore drilling operations - Approval of design plans for the installation of platforms - Approval of gathering and flow lines The following'OCS,�related Federal license activities are 9ncouraged to be included, if they will be required in connection with the OCS activity, Department of Defense - U.S. Army Corps of Engineers o Permits and licenses required under Sections 9 and 10 of the Rivers Harbors Act of 1899 o Permits and licenses required under Section 103 of the Marine Protection, Research and Sanctuaries Act of 1972 o Permits and licenses required under Section 404 of the Federal Water Pollution Control Act of 1972 and -amendments o Permits for artificial islands and fixed structures located on the Outer Continental Shelf (Rivers and Harbors Act of 1899 as extended by 43 U.S.C. 1333(f)) Department of the Interior -•Bureau of Land Management - USGS o Permits and licenses required for drilling and mining on public lands (BLM) o Permits for pipeline rights -of -way on the Outer Continental Shelf L ir� 0 -3- o Permits and licenses for rights -of -way on public lands Environmental Protection Agency o Permits and licenses required under Sections 402 and 405 of the Federal Water Pollution Control Act of 1972 and amendments o Permits and applications for reclassification of land areas under regulations for the prevention of significant deterioration (PSD) of air quality Department of Transportation - U.S. Coast Guard o Permits for construction of bridges under 33 USC 401, 491-507 and 525-534 o Permits for deepwater ports under the Deepwater Port Act (P.93-627) Federal Energy Regulatory Commission o Certifications required for interstate gas pipelines o Permits or licenses for construction and operation of facilities needed to import, export or transship natural gas or electrical energy b. The Executive Director shall also provide the applicant with a copy of the California Coastal Zone Management Plan. 93. Review of Environmental Report for Sufficiency of Information The Executive Director shall review the advance copy of the environmental report for the subject OCS activity, which is required to be forwarded to the Commission by the Supervisor. If he determines that the environmental report does not contain the information required by 30 CFR 250.34-3(a) for exploration plans or by 30.CFR 250.34-3(b) for production and development plans, he shall inform the Supervisor within 10 days of receipt of the environmental report. 554. Submission of Consistency Certification a. The applicant shall,submit to the Executive Director of the Coastal Commission the OCS plan, with accompanying consistency certification for all major activities required to be described in detail in the plan and identified in section 2(a) of these regulations, and the environmental report as approved by the Supervisor pursuant to 30 CFR 250.34-1(b)(2) for exploration plans or 30 CFR 250.34-2 for development and production plans. b. The consistency certification for all major activities involved in the OCS plan as required by 4(a) above shall be in the following form: The proposed activities described'in detail in this plan comply with California's approved coastal management program and will be conducted in a manner consistent with such program. c. The applicant shall also include (1) a brief assessment relating the probable coastal zone effects of each of the enumerated activities and their associated facilities to the relevant elements of the program policies of the California Coastal Zone Management Plan (CCZMP); and (2) a brief set of findings derived from the assessment indicating that -4- each of the enumerated activities (e.g. drilling, platform placement), and its associated facilities (e.g. onshore support structures, offshore pipe- lines), and its primary effects (e.g. air, water, waste discharges, erosion, wetlands, beach access implants) are consistent with the mandatory provisions of the CCZMP. d. Upon request of the applicant, the California Coastal Commission staff will provide assistance in preparing the assessment and findings required in §4(c) (1) and (2) of these regulations. e. The Executive Director may request additional data as permitted under Department of Interior regulations (30 C�F,Rp 250,36) from the applicant if he deems it necessary for a complete and proper review. The applicant shall comply with such request within 10 days of its receipt or shall in- dicate within 10 days reasons why the request cannot be complied with. 95. Staff Summary and Hearing Notice Upon receipt of the OCS plan, environmental report, consistency determination and the accompanying fundings and assessments and any other information which the Executive Director deems necessary, the Executive Director shall: a. Prepare a staff summary of the applicants' findings and assessments and send the summary to the applicant, the Assistant Administrator for Coastal Zone Management, National Oceanic and Atmospheric Administration (Assistant Administrator), the Department of Commerce, the affected Regional Commission, local governments, state agencies, and other interested parties. b. Schedule a State Coastal Commission public hearing on the applicant's consistency determination findings and assessments and the staff summary, giving appropriate notice to all interested parties, with particular emphasis on informing the coastal area which will be -affected. The notice shall announce the availability for inspection of the applicant's consistency certificate and findings. The state and regional agencies responsible for air and water quality compliance shall be notified and provided the opportunity to present their agencies' positions before the Commission hearing. Such hearing shall be set for a regular Costal Commission meeting not later than the 42nd day after receipt of the documents required by Section 4. All public hearings shall be scheduled with a view toward allowing adequate public distribution of the in- formation contained in the staff's summary and recommendation and toward allowing public participation and attendance at the hearing, while affording the appli- cant expeditious consideration of consistency determinations. 96. Contents of Summa The summary shall: (1) list the major activities listed in the OCS plan, for which a consistency determination, assessments and findings have been required, (2) discuss the effect of these activities and their associated facilities, and their effects on land and water uses in,the coastal zone, (3) discuss the con- sistency of such activities and related effects with the relevant policies of the CCZMP. The summary shall also specifically list all other Federal permits for which consistency findings have not been enclosed and for which future consistency determinations will be required under Section 12 of these regulations. 97. Conduct of Hearing on Staff Recommendations or a Consistency Determination The Commission shall be the final decision maker on consistency determinations and shall conduct de novo hearings on consistency determinations substantially in accordance with the applicable procedures for permit hearings set forth in Sections 13057 through 13096, excluding Sections 13071, 13085, and 13087 of these Regulations. 98. Regional Commission Role The affected Regional Commission(s) may wish to conduct hearings prior to the Commission hearing, and based on those hearings present testimony at the Commission hearing. Upon written request by a Regional Executive Director, the Executive Director may extend for an additional 30 days the 42-day time period for its hearing required by Section S above in order to allow a full hearing at the Regional Commission level. Any Regional Commission hearings shall also be conducted substantially in accordance with Sections 13064- 13096 of these regulations. 99. Final Commission Decision The Commission shall issue a decision on whether the applicant's consistency certification complies with the CCZMP; i.e., whether it "concurs" or "objects" to the applicant's consistency certification, at the earliest practicable time and in no event more than 6 months from the date of receipt of such consis- tency certification and required information" -(see Section 3 of these regulations). If a Commission decision has not been reached within 3 months of such receipt, the Executive Director shall notify the Assistant Administrator of the status of review and the basis for further delay. A Commission decision which objects to an•applicant's consistency certification shall be accom- - panied y a statement indicating: �(1) the effect which the actvity will have 'on coastal land and water uses, (2) how the activity is iY onsistent with a specific CCZMP policy or policies, and (3) alternative ieasures (if they e,asLJ wnicn wouia make the proposed activity consistent with CCZMP policies. If a decision to object is based upon grounds that the applicant has not provided information required under Section (4) above, and requested by the Executive Director under Section 4(e), the nature of the information requested and the necessity of that information for a consistency determination must be described. When the Commission objects to the applicant's consistency deter- mination, the decision shall include a statement indicating the applicant's right of appeal to the Secretary of Commerce. The Commission shall notify the applicant, the Supervisor, and the Assistant Administrator of its decision by sending a copy of its Final Decision to them. 910. Appeals Procedure Any applicant who wishes to appeal to the Secretary of Commerce a Commission objection to a consistency determination shall immediately send a copy of the appeal and accompanying documents to the Executive Director of the Commission. The Executive Director shall prepare detailed comments to the Secretary of Commerce within 30 days of receipt of the appeal. These comments shall be the subject of Commission discussion with opportunity for public comment, and the comments of the Commission may be sent to the Secretary of Commerce in the appeal process or presented orally if the Secretary schedules a hearing. This procedure shall also be followed if the Secretary of Commerce pursues an inde- pendent review of the consistency of an OCS activity. 911. Required Amendments Any amendments to an OCS plan which must be submitted as a result of Commission objection to consistency of an OCS activity shall be processed as if such amendment were a new plan; i.e. Sections 1-9 of these regulations apply, except that the Commission must make its decision within 3 months of receipt. 112. Multiple Permit Review a. Applicants are strongly encouraged to include with OCS plans and with consistency certifications required to be submitted to the Commission in accordance with Section 4 of these regulations, detailed descriptions, consistency determinations, findings and assessments and other supporting data for other permits required in connection with OCS-related activities, but not required to be described in detail in OCS plans by the Secretary of the Interior (e.g. Corps of Engineer or EPA permits, or the other permits listed in Section 2 of these regulations). Where consistency determinations and related rindings and assessments are made for' all required Federal - — permits connected with an OCS plan, the applicant shall so state and con- solidated consistency review for these Federal permits will take place at the same time and under the same procedures as review of major activities required to be described in detail in OCS plans (Sections 1-11 of these Regulations). b. If consistency determinations and related assessments and findings for all OCS related Federal permits are not included with an OCS plan and consistency determination, the applicant shall state which Federal permits have not been included. The Commission will review those permits which are not included separately. The final decision of the Commission for consis- tency determinations of OCS plan activities shall state which Federal permits have not been included and which therefore must be reviewed separately. c. The applicant and the Coastal Commission shall comply with Sections 1-11 of these regulations in processing consistency determination which have not been included with OCS plans, except that: 1) The applicant shall submit his description of permit activities for the Executive Director's review (Section 2) 30 days prior to the application for the Federal permit. 2) An environmental report as described by 30 CFR 250, 34-3(a) and3(b) need not be submitted, if one which covered the subject permit activity was previously submitted under section 3 of these regulations, or if the Executive Director is satisfied that the applicant has provided sufficient information concerning the environmental effects of the permit activity to adequately review the project as if it were a coastal permit under the CCZMP. 3) Wherever there is a requirement to notify the Supervisor, notification shall also be sent to the chief of the Federal permit agency. TO: FROM: CALIFORNIA COASTAL COMMISSION 631 Howard Street, San Francisco 94105 —(415) 543-8555 October 4, 1978 STATE COMMISSIONERS WILLIAM AHERN, PORTS AND ENERGY COORDINATOR SCS o�o �Qo�P��F• SUBJECT: "CONSISTENCY" DETERMINATIONS ON OCS PLANS (Subject of a staff briefing at the October 16-18 meeting.) SYNOPSIS Due to a recent federal court decision, the Coastal Commission can now implement the "consistency" provisions of the federal Coastal Zone Management Act. The Interior Department and other federal agencies cannot grant permits or licenses for oil company.activities on the outer Continental Shelf affecting land and water uses in the coastal zone unless the Commission'concurs that the activities arp "consistent" with the California Coastal Management Program. OCS lease sales may be activities subject to this "consistency" juris- diction. This memo presents general background and procedures for implementing."consistency" with respect to OCS activities. Emergency regulations are being developed by staff for Commission consideration in November. • Federal Legislative Requirements. Section 307(c)(3)(B) of the federal Coastal one Management Act CZMA , which is implemented by the Secretary of Commerce) provides: (B) After the management program of any coastal state has been approved by the Secretary under Section 306, any person who submits to the Secretary of the Interior any plan for exploration or development of, or produc- tion from, any area which has been leased under the Outer Continental Shelf Lands Act (43 U.S.C. 1331, et secs .) and regulations under such Act shall, with respect to any expToration, development, or production described in such plan and affecting any land use or water use in the coastal zone of such state, attach to such plan a certification that each activity which is described in detail in such plan complies with such state's approved management program and will be carried out in a manner consistent with such program. No Federal official or agency shall grant such person any license or permit for any activity described in detail in such plan until such state or its designated agency receives a copy of such certification and plan, together with any other neces- sary data and information, and until --, 0 -2- i (i) such state or its designated agency, in accordance with the procedures required to be established by such state pursuant to subparagraph (A), concurs with such person's certification and notifies the Secretary and the Secretary of the Interior of such concurrence; concurrency by such state with such certification.is conclusively presumed as provided for in subparagraph (A), except if such state fails to concur with or object to such certification within three months after receipt of its copy of such certification and supporting information, such state shall provide the Secretary, the appropriate federal agency, and such person with a written statement describing the status of review and the basis for further delay in issuing a final decision, and if such statement is not so provided, concurrence by such state with such certi- fication shall be conclusively presumed; or (III) the Secretary finds, pursuant to subparagraph (A), that each activity which is described in detail in such plan is consistent with the objectives of this title or is otherwise necessary in the interest of national security This Section of the CZMA relates only to "consistency" determinations for OCS Plans that are under the jurisdiction of the interior Department. Other sections relate to other federal agency activities, licenses, permits and funding assistance which are not discussed in this memo. The above quoted section basically means that the Interior Department cannot grant an approval for petroleum exploration or development activities on the federally owned Outer Continental Shelf (OCS) off- shore the California coastal zone until either the State Coastal Commission concurs with an oil company's determination that the OCS activities proposed are consistent with the California Coastal Management Program (CCMP), or the Secretary of Commerce overrides a Coastal Commission objection to an activity proposed in an OCS Plan because it is not consistent with the CCMP. Secretary of Commerce can override such an abjection and permit Interior to approve the activity by finding that the oil company's proposed activity is consistent with the objectives of the federal Coastal Zone Management Act or is necessary in the interest of national security. U.S. District Court Decision. The Secretary of Commerce approved the California Coastal Management Program CCMP) in November 1977. That approval was challenged in the U.S. District Court, Central District of California, by the American Petroleum Institute, Western Oil and Gas Association and individual oil companies. District Judge Robert.J. Kelleher enjoined the Coastal Commission from implementing the Section 307 "consistency" provisions while he considered the case. His August 30, 1978, decision (No. CV 77-3375-RJK) ruled against the oil companies on all points and affirmed the Secretary of Commerce's approval of the CCMP. Therefore, Section 307 of the CZMA became effective for California after the decision. This memo presents staff's understanding of how the "consistency" determinations are to be made on OCS plans pursuant to the CZMA, federal Section 307 implementing regulations, the CCMP, and Interior Department regulations. Interior Department OCS Licenses and Permits Subiect to "Consistency" Review. The federal regulations governing implementation of Section 307 consistency" reviews are contained in 15 Code of Federal Regulations (CFR) Part 930 (Federal Register W , • -3- - 0 Volume 43, No. 49, March 13, 1978, p. 10517.e� sew ). The regulations specifically exempt sales of OCS leases to oil companies from the types of OCS licenses and permits subject to "consistency" requirements under the CZMA's section-' on OCS plans 15 CFR 930.51). However, at present the Department of Commerce considers OCS leases as federal agency activities subject to a different set of "consisten- cy" procedures. (See Note at ena ofmemo.) Activities subject to "consistency" review are OCS Plans, which are defined as: The term "OCS plan" means any plan for the exploration or development of, or production from, any area which has been leased under the Outer Continental Shelf Lands Act (43 U.S.C. Section 1331..et.se .), and the regulations under that Act, which is submitted to the Secretary of the Interior following management program (CCMP) approval and which describes in detail Federal license or permit activities (Paragraph 930.73(a)). The CCMP lists the specific OCS activities that will be subject to the certification process for "consistency" as follows: "(c) Federal Licenses and Permits Described in Detail in OCS Plans. The following Federal agency licenses and permits will be subject to the certification process for consistency with the management program under Section 307(c)(3)(b) of the CZMA if the activity being licensed or permitted is described in detail in an OCS exploration or development plan and affects land or water uses in the coastal zone: Department of the Interior - U.S. Geological Survey Approval of offshore drilling operations. Approval of design plans for the installation of platform. Approval of gathering and flow lines. Any other OCS-related Federal license or permit activities described in Paragraph (b)(i) (for example, BLM pipeline rights -of -way on the OCS) which USGS determines should be described in detail in OCS Plans." (The California Coastal Management Program, Part II, Chapter II in State of California Coastal Management Proaram and Final Environmental t Statement, U.S. Department of Commerce, National Oceanic a pheri—'c Administration, Washington, D.C. August 1977) For the OCS leased offshore California, federal governmental approvals are given by the Interior Department's U.S. Geological Surveys Conservation Division, Pacific Area Oil and Gas Operations Office in Los Angeles (here called USGS). The Corps of Engineers grants permits for placing OCS structures in navigable waters, and EPA grants National Pollutant Discharge Elimination System (NPDES) permits for water pollutant discharges from OCS activities. The "persons" who submit OCS plans to the USGS for approval and permit applications to the Corps and EPA are the oil companies designated as the operators of OCS tract leases (here called operator). Procedures for "Consistencv" Review of OCS Plans. The procedures for OCS Plan consistency review result from combining the requirements of the Commerce Department's "consistency" regulations (15 CFR Part 930), the Interior Depart- ment's OCS Plan review and approval regulations (30 CFR Part 250.34, being -4- 0 revised), the CCMP, and the Coastal Commission's permit processing regulations (Title 14, Division 5.5, Chapter 5, California Administrative Code). The oil company operator makes the "consistent certification when submitting an OCS Plan for approva . The CCMP as approved by the Secretary of Commerce states that "Consistency certifications for OCS plans will be processed as much as possible as if they were applications for coastal permits under the Coastal Act and its implementing regulations to allow for timely public notice and hearings." (CCMP, p. 93). The CCMP further provides that concurrence or objections to operators' OCS Plan "consistency" certifications will be made by the State Coastal Commis- sion, in close consultation with affected local governments, even after local coastal programs are certified and local governments have the coastal development permit authority in their jurisdictions. Emergency regulations establishing "consistency" review procedures, including provisions for Regional Commission Involvement, are currently being prepared and will be presented to the Commission for review and possible adoption at the first November meeting. Because the procedures for "consistency" review will be different for OCS plans for explo- ratory drilling and for OCS plans for actual petroleum production, processing and transportation, the procedures are described separately below. PROCEDURES* A. OCS Plans o_fEx Exploration. An operator must submit a Plan of Exploration to the USGS for approval before drilling on leased OCS tracts to determine whether producible amounts of oil or gas are present. Such exploratory drilling is rela- tively temporary, involving the anchoring ,of a moveable drillship or semi -sub- mersible drilling structure over an OCS area for a number of months while a well is drilled. With Coastal Commission "consistency" review, the full approval procedures are as folloi4s: 1. The operator should consult with the Coastal Commission to obtain views and assistance regarding means for assuring that activities listed in the explo- ration plan are "consistent" with the CCMP (15 CFR 930.75(a)). 2. The operator works with other federal agencies which must grant OCS explora- tion plan related permits or licenses (e.g. Corps of Engineers, EPA) and de- velops information and "consistency" certifications for all OCS exploration activities which are subject to Coastal Commission "consistency" review. The operator is encouraged to submit the set of "consistency" certifications so the Coastal Commission can conduct a consolidated "consistency" review of all activities for which the operator needs federal approvals. (15 CFR 930.82). 3. The operator submits to the USGS an environmental report which describes the exploration plan activities and how they will affect land and water uses in the coastal zone and makes a "consistency" certification (30 CFR 930.76-7). (i.e. operator says why it believes activities are consistent with the CCMP policies) 4. The USGS sends the environmental report to the Coastal Commission where staff determines, within ten days, if the operator has included the information required under Interior Department regulations. Coastal Commission staff inform the USGS if there are information deficiencies, If the USGS agrees there are deficiencies, the operator must correct them before formally sub- mitting -the exploration plan to the USGS for approval. *"Consistency" review is required only for OCS Plans submitted to Interior after August 31, 1978, (15 CFR 930.73a). -5- 5. The operator then submits the exploration plan environmental report and "consistency" certification at the same time to both the USGS and the State Coastal Commission (30 CFR 250.34). The operator must include the assessment relating the probable coastal zone effects of the activities and a set of findings indicating that the proposed activities, and their effects, are all consistent with the provisions of the California Management Program (15 CFR 930.77). The USGS conducts an environmental assessment of the exploration plan pursuant to the National Environmental Policy Act. 6. Simultaneous with environmental review by USGS, the State Coastal Commission reviews the exploration plan for "consistency" as follows, using "consistency" regulations and some coastal development permit procedures: (a) a staff summary and recommendation are sent to interested parties; (b) a noticed public hearing is held on the staff recommendation at a regular Commission meeting; (c) the Commission may take "consistency" concurrence or objection action after the hearing or defer action to a subsequent meeting within three months of receipt of the "consistency" determination (15 CFR 930.63b); (d) if no decision is made within three months, the Coastal Commission must notify the operator, Secretary of Commerce, and USGS of the basis of further delay (15 CFR 930.63b). Without such notification, concurrence by the Commission is conclusively presumed; (e) if the Commission takes no action within a total six months, concurrence is conclusively,presumed; (f) The Commission may object to the operator's consistency certification for any proposed activity and must notify the operator, USGS and the Commerce Department of the objection. An objection must describe how the activity is inconsistent with specific elements of the CCMP and alternative measures, if possible, that would permit the activity to be consistent with the CCMP. The Commission and operator may agree on conditions that would permit Commission concurrence (15 CFR 930.64),. 7. After Commission action, the following steps may occur: (a) if the Commission concurs with the operator's "consistency" certification for all activities, the USGS and other federal ggencies may issue permits and licenses for the activities; or (b) if the Commission objects to the operator's "consistency" certification for one or more proposed activities, no federal license or permit can be issued for that activity. Appeals. In the event of a continuing Coastal Commission objection, the USGS, anot er federal agency, or the operator may appeal the objection to the Secretary of Commerce. The appeals regulations require time limits, public hearings, exchanges of comments, and findings that the Secretary must make to permit a federal permit or license for an activity to which the Coastal Commission has objected. The required findings for overriding the objection include: the activ- ity objected to furthers a competing.national purpose; its adverse effects are not 0 -6- P substantial enough to outweigh its contribution to the national interest; and there are no reasonable alternatives or conditions which would enable the activity to be "consistent" with the CCMP (15 CFR 930 Subpart H). If the Secretary sustains the Coastal Commission objection, the operator must submit an amended exploration plan to the USGS and Coastal Comnisiion, with modi- fications to ensure it is "consistent" with the CCMP. Before appealing, the federal agencies or operator may request that the Secretary of Commerce mediate a dispute about an objection. B. OCS Plans of Development. OCS development plans include a wide range of activities, including: proauction facilities such as platforms and subsea well completions; oil and gas storage facilities; petroleum transportation facilities such'as gathering pipelines, pipelines to shore and tanker terminals; offshore or onshore oil and gas treatment and processing equipment and facilities; and supporting facilities such as onshore storage and staging areas. Any OCS plan associated with the proposed development of petroleum resources would have to generally follow the same procedures for approval as a plan of exploration. However, in contrast with the review of OCS exploration plans, current USGS approval procedures for OCS developments offshore California do not seem to involve one discrete approval of a full plan for developing an OCS petroleum field. Rather, the process is more like a flow of reviews and approvals. The first step may be conceptual approval of platform location and design, because an operator must place a platform construction' order a few years in advance of needing it on location. Later the operator presents locations and more detailed designs for gathering lines, pipelines, storage and other facilities. The plan of_development submitted to USGS can include a number of processing and trans- portation alternatives. The alternatives can 6e as Broad as' conducting all 'proces- sing and transportation offshore on the OCS or onshore. When an operator proposes developments within the State's jurisdiction, Coastal Commission and local govern- ment and other agency permits are required, along with a certified environmental impact report. Unless an OCS development plan, includes sufficient information to allow Commis- sion review of the entire development program, it appears that an operator will have to obtain a sequence of State Coastal Commission concurrences with "con- sistency" certifications prior to the different major USGS development approvals. The number could be as few as two - one on the location and conceptual design of the production facilities and one on the full development plan submitted to USGS for purposes of NEPA review and final approval, or could involve several "con- sistency reviews for more complex developments. These procedures will be further defined in discussions with the USGS, Office of Coastal Zone Management, OCS operators and other interested parties. Local Government Participation in "Consistency" Reviews. The CCMP provides that local governments that may be affected y OCS developments will have the oppor- tunity to present to the State Commission their determinations of "consistency" with the Commission certified local coastal programs. They can also participate in the Commission deliberations on concurrence or objection to OCS operator's "consistency" certifications. Under the CCMP, the Commission will make the final determination on "consistency" to be sent to the operators, Department of Commerce, and Department of Interior. • -7 requiring a "consistency" review wiii p ration plan involving drilling two expl locations are in the northbound Gulf of the Ports of Los Angeles and Long Beach ronmental report, which was prepared by putting "consistency" into effect. Reviews. The first OCS plan of exploration obably be submitted by Chevron for an explo- ratory wells from a drillship. Both well Catalina vessel traffic lanes leading to (Figure 1). Staff has reviewed the envi- Chevron prior to the District Court ruling The first OCS development plan to be reviewed for "consistency" will probably be a stage of Shell's proposed Beta Unit development, also -in the Gulf of Catalina (Figure 2). The initial stage includes an oil processing platform, Elley, and a production platform, Ellen, connected by a 200 foot bridge about nine miles off Huntington Beach. The proposed platforms location is in the separation zone between the two vessel traffic lanes of the Gulf of Catalina Traffic Separation Scheme. The part of the development under direct California jurisdiction is part of a*pipeline from the processing platform to the Port of Long Beach. The Port and State Lands Commission are co -lead agencies in developing the environmental impact report on the project under AB884 deadlines and CEQA. The USGS has not yet granted any approvals for Shell's Beta Unit development activities. ce o proposed activitiesp only as The OCS operator's in the California coastal zone, must be consistent with the approved caiitornia uoastai management Program CCMP, P. 93). The policies that constitute the standards for deter- mining "consistency" with the CCMP are presented in Chapter 3 of the CCMP. They are essentially the same policies in Chapter 3 of the California Coastal Act of 1976 that govern the permissibility of all proposed coastal developments. Capsules of the major policies that would relate to OCS plan activities and the corresponding sections in the Coastal Act are: Marine and Land Resources rotection: protect the biological productivity of all species in coastal waters Section 30230); protect against the spillage of crude oil and provide effective containment and cleanup facilities and procedures for oil spills (Section 30232); and site and design developments to avoid significantly degrading environmentally sen- sitive areas (Section 30240). Development policies: site and design developments to protect views to and along the ocean and scenic coastal areas (Section 30251); design tanker facilities to minimize oil spills and vessel collisions (Section 30261a); do not site platforms or islands where a substantial hazard to vessel traffic might result (Section 30262); and be consistent with requirements imposed by an air -pollution control district or the State Air Resources Control Board (Section 30252(3)). OCS Lease Sales and "Consistency" Requirements. As mentioned previously, federal actions subject to "consistency" review fall into four categories: federal agency activities; activities requiring a federal license or permit; OCS exploration and development activities; and federal assistance to state and local governments. Interior Department sales of OCS tract leases to oil companies for petroleum exploration and development definitely do not come under the last three categories, but they may be a federal agency activity subject to Commission consistency review under Section 307(c)(1) of the CZMA, which provides: It PORTS -OF IOS ANGELES O �N <.. 14D LONG sEACIi IE .-te •ty• I yi/i ,._ Northbound Vessel Traffic { t 1 Lane }} -�--}- a � 1 t 2Ak O- OF; TWO M.0POh E CI�9FAN . UMMT Y WWELIS _a .p•.y lJ.f1c i � -a- �• � �GRISSOM • WHITE � r��''•o,,��� SEAL BEACH FREE�,\AN CHAFFEE ' LOfIG BEACH HARBOR •,,� MONTERE ESTHER w . r • � w • r r w • w w ` r ` . w ` r - ` w w r 1 247 a , s r w 1 1' i :• • i:•t �+'��'''' 253 \ •'s S0. GAL,: TEX CHAMP.: x UN., SK, GETTY • i� is Ir � � TWO P� �.� � ; •i t SCh \ •° 261 1 P—/J301 v�^nn FIGURE 2 SHELL BETA UNIT DEVELOPMENT li HUNTINGTON HARBOR BUNTING' $EAV 256 1\•'. Eimm -10- Each Federal agency conducting or supporting activities directly affecting the coastal zone shall conduct or support those act v ties in a manner which is, to the maximum extent Rracticable, consistent with approved state management programs. emphas s added) There are some differences in the "consistency" certification and review pro- cedures that apply to these federal agency activities than to oil company OCS lease operators activities (930 CFR 930.50 et sec.). Essentially, it is the federal agency that makes the consistency determination, and the Commission has up to 90 days for review before concurrence is conclusively presumed. Interior Department OCS Lease Sales, with the attached lease stipulations, would require Commission "consistency" concurrence if the sale of an OCS tract for petroleum exploration and development is considered an activity directly affecting the coastal zone. The discussion of comments accompanying the National Oceanic and Atmospheric Administration's (NOAA) final consistency regulations (in FR. Volume 43, No. 49, P. 10512, March 13, 1978) contains the following paragraph: "In the preamble to the proposed regulations, NOAA discussed a disagree- ment between the Commerce and Interior Departments over whether Interior's Outer Continental Shelf lease sale actions, which include tract selection and choice of lease stipulations, constituted a "Federal activity" subject to the requirements of this Subpart. This issue is still under consideration by the Administration and will most likely be addressed during Congressional oversight of the Federal consistency provisions of the Act." This issue has not to date been resolved. In the absence of a Presidental or Congressional resolution of this disagreement, the Commission may decide whether to consider an OCS lease sale such an "activity" and to convey that judgment to the Secretary of Interior. OCS Lease Sale #48, scheduled for June 1979, could be affected by this judgment. Since the Commission must adopt regu1•ations imple- menting consistency reviews and since an OCS lease sale is scheduled for the near future, the Executive Director will write appropriate federal Administration officials requesting resolution of the disagreement as soon as possible. CALIFORNIA COASTAL COMMISSION 631 Howard Street, San Francisco 94105—(415) 543-8555 RECEtV6ll Co •.'nunity 9 Dev wv,ncllF �1•npt. October 4, 1978 ppi 111$7BW- NEWFORTo OP, CAO TO: STATE COMMISSIONERS FROM: WILLIAM AHERN, PORTS AND ENERGY COORDINATOR SUBJECT: NOTES TO "STAFF REPORT ON THE INTERIOR DEPARTMENT'S DRAFT ENVIRONMENTAL STATEMENT ON PROPOSED OCS LEASE SALE #48," SEPTEMBER 14, 1978 (For Commission Consideration at a public hearing at the October 16-18, 1978 meeting.) The staff makes the following additions to the September 14, 1978, Staff Report on OCS Lease Sale #48: 1. The Commission recommends to the Bureau of Land Management that it delete from the Lease Sale that portion of OCS tract 075 presently recommended by the Commission as the most appropriate site for a possible offshore liquefied natural gas terminal (Ventura Flats SE). The Offshore LNG Study states: "Any future oil development would need to be restricted to areas beyond one nautical mile of the terminal to allow for an acceptable buffer zone and safe operations." (p. 43). Because of the increased vessel traffic and navi- gation risks that would occur if OCS activities were carried on immediately adjacent to the LNG terminal site, the Commission recommends that portions of tract 075 Tying within one nautical mile of the proposed offshore LNG site be excluded to leave this area available for possible LNG terminal use. 2. The Commission recommends that leasing conditions be imposed on tracts or portions of tracts lying within the Vessel Traffic Separation Schemes in the Gulf of Catalina. The conditions should prevent fixed structures being placed in the vessel traffic lanes. Seven tracts are affected by this recom- mendation. Interior Department Interior Department Hearings Bureau of Land Management (BLM) will hold six days of hearings on the Draft Environ- mental Statement: October 23-24 in Santa Barbara at the Lobrero Theater 33 E. Canon Perdido October 26-27 in Long Beach at the Long Beach Convention Center California Room, 300 E. Ocean Boulevard October 31-Nov. 1 in San Diego at the Convention and Performing Arts Center Copper Room, 202 C Street • ALIFORNIA COASTAL COMMISSI001 631 Howard Street, San Francisco 94105 - (415) 391-6600 November 3, 1978 CONSISTENCY CERTIFICATION SUMMARY -AND STAFF RECOMMENDATION Consistency Certification No. CC-1-78 (Chevron USA) 3 Month Period Ends: JAN. 20, 1979 6 Month Period Ends: APRIL 20, 1979 APPLICANT FOR FEDERAL PERMITS: Chevron USA, Inc. J FEDERAL PERMITS FOR WHICH COMMISSION U. S. Geological Survey Exploratory CONCURRENCE WITH APPLICANT'S CONSISTENCY Well Drilling Permits; OCS Exploration CERTIFICATION IS REQUIRED: Plan FEDERAL PERMIT ACTIVITY LOCATION: FEDERAL PERMIT ACTIVITY DESCRIPTION: PUBLIC HEARING AND VOTE: SUBSTANTIVE FILE DOCUMENTS: Chevron Environmental Report (Exploration) for proposed exploratory tells P-0306-1 and P-0309-1 Chevron Exploration Plan for proposed exploratory tells P -0306-1 and P-0309-1 Oil Spill Contingency Plan P-0296 as revised 10/15/78 Staff Note: Consistency in the Gulf of Catalina on COS Parcels 306 and 309, about 3.1 and 12 miles south - met of Huntington Beach. Drilling two yells, P-0309-1 and P-0306-11 to explore for oil and gas from a move- able anchored drillship, the Glomar Atlantic Public hearing and possible action scheduled for Commission's November 14-15 meeting in Santa Barbara. Under regulations which implement the Federal Coastal Zone Management Act, the United States Geological 8urvey,Eavironmental Protection Agency, and Corps of Engineers can not grant a permit for any activity described in an Cuter Continental Shelf (OCS) Plan of Exploration until the Coastal Commission concurs with a -2- certification by the oil company applicant that the activity is consistent with the California Coastal Management Program (CMP). The Commission and appli- cant may agree to modifications to the plan as a condition of Commission concurrence with the consistency certification. If the Commission objects to the oil company's consistency certification, it must list each activity of the Plan to which it objects, explain how it conflicts with provisions of the CMP, and describe alternative measures, if they exist, to make the activity consistent with the CMP. A Federal permit for an OCS activity can be granted, despite Commission objection, only if the Secretary of Commerce finds the activity consistent with the purposes and objectives of the Coastal Zone Management Act or necessary in the interests of national security. The consistency provisions of the Coastal Zone Management Act went into effect for California on August 31, 19781 the date on which the approval by the Secretary of Commerce was upheld in Federal District Court. As of August 31, 19782 all applicants for Federal permits for OCS plan activities which are listed in the CMP and which may affect land or water uses of the California coastal zone must certify that the activities in the plan will be carried out in a manner consistent with CMP. Drilling these two exploratory wells on the OCS is the first Federal permit activity for which Commission concurrence with a consistency certification is required. The Commission may review only the well drilling activities because they are subject to U.S. Geological Survey permits. The placement of the drillship itself in the vessel traffic lane is not subject to Commission review because Chevron applied for the required Corps of Engineers permit to place the drillship in navigable waters prior to August 31, 1978. 1. Proiect Description. The proposed project is the drilling of two exploratory wells from the drillship Glomar Atlantic (Exhibit 1) about 11 and 12 miles southwest of Huntington Beach on Outer Continental Shelf Parcels 306 and 309 (Exhibit 2) Wbl]. No. 1 on P-306 will be drilled in 1465 feet deep water to a depth of 7000 feet below the sea floor; Well No. 1 on P-309 will be drilled in 1740 feet deep water to a depth 7400 feet below the sea floor. The drilling sites are located within the northbound vessel traffic lane in the Gulf of Santa Catalina Traffic Separation Scheme. . The drillship will be anchored at each site for about 40 days. Cn the ship is a 35-foot high oil well drilling rig. The well drilling equipment includes blowout prevention equipment, and the drillship carries oil spill containment and cleanup equipment. 2. Applicant's Consistency Certification and Findings Chevron states that "The proposed activities described in detail in this OCS exploration plan do not significantly affect the coastal zone of the State of California. The proposed activities comply with the State of California's Coastal Management Program and will be conducted in a manner consistent with such program." Chevron states that the impact of drilling two exploratory wells is "negligible in magnitude and temporary in nature." Chevron further finds that their Oil Spill and Emergency Contingency Plan protects against the spillage of crude oil, gas petroleum products, and hazardous sub- stances and provides effective containment and cleanup facilities and procedures for any accidental spills which may occur. Chevron states that the Contingency -3- Plan complies with U.S. Geological Survey Pacific Region OCS Order No. 7 (Exhibit 3.) regulating oil spill equipment and procedures for OCS operations. Chevron questions whether Section 30232 of the Coastal Act, cited in Chapter 3 of the CDT,, addressing the spillage of crude oil, gas, petroleum products and hazardous substances, is applicable to exploratory wells drilling, which. Chevron contends, does not have a significant effect on the coastal zone. STAFF RECOMMENDATION The staff recommends that the Commission adopt the following resolution: I. Concurrence The Commission hereby concurs with the Consistency Certification made by Chevron USA, Inc. for the proposed activities, because Chevron USAr.Inc. agrees to the condition below to insure that the activities will be carried out in a manner consistent with the California Coastal Management Program. II. Condition The Commission concurrence with Chevron's Consistency Certification is not effective until Chevron commits, in writing to the U. S. Geological Survey and the Coastal Commission, to provide on the drillsbip a package of oil spill containment and cleanup equipment able to handle spills on the open ocean. This package shall include, at a minimum: a) 1500 feet of open ocean containment boom with a weighted skirt extending at least 23 inches into the water. b) an oil recovery device ("skimmer") suitable for open ocean recovery. Chevron, by letter dated November 11 1975, has agreed to this condition (Exhibit 4)- III. Findings and Declarations The Commission finds and declares as follows: A. Protection Against Spillage of Crude Oil. In the United States only about one in ten exploratory hells finds commercial amounts of petroleum. The proposed wells, however, have a much higher chance of finding petroleum because Shell has already discovered and plans to develop an oil field on the OCS parcels 300 and 301. The tentative boundaries for this Beta Oil Field extend into the two Chevron leased COS parcels on which these two wells are to be drilled (Exhibit 1). Therefore,there is a high probability the hells will discover oil and gas. There will then be a risk of a well blowout and attendant oil spill. Such a spill may reach the California coast and damage marine life, scenic areas, and recreational uses of the coast. Because of this risk, the proposed drilling operations must be consistent with Section 30232 of the Coastal Act, incorporated in Chapter 3 of the Coastal Management Program, which states: Protection against the spillage of crude oil, gas, petroleum products or hazardous substances shall be provided in relation to any development or transportation of such materials. Effective con- tainment and cleanup facilities and procedures shall be provided for accidental spills that do occur. -4- Protection against spillage of oil from well blowouts, leakage, or discharge of materials is regulated by U.S. Geological Survey Pacific RegLon CCS Orders No. 2 and 7. The OCS Orders require different types of blowout prevention equipment, pollution control equipment; and personnel tests, notification procedures and other measures. Implementation of these orders does not necessarily protect against oil spills. If a spill does occur, the first set.of equipment deployed would be on the drillship itself. Chevron submitted a list of spill prevention and control equipment in its oil Spill and Ibergency Contingency Plan (Exhibit 4). This equipment appears outmoded and suitable only for containing oil spills in sheltered harbor waters, not on rougher waters 12 miles from shore. The Slickbar oil boom extends only about 4 inches above and 7 inches below the water surface, making it comparatively easy for wind or current driven oil to splash over and move- under the boom. While precise criteria do not exist, the Commission believes that an oil spill containment boom would need to have a combined draft and freeboard of at least 30 inches to be considered capable of functioning effectively in commonly —occurring open — ocean sea conditions. The Commission finds that Chevron USA must agree to Condition 11 providing for more effective open ocean spill containment and cleanup equipment on the drill — ship in order for the Commission to concur that Chevron provides effective spill containment and cleanup facilities. Chevron has agreed to this condition. For the proposed exploratory drilling activities the Commission has reviewed only the equipment and procedures aboard the drillship. After drilling and testing each well, the well will be shut—in. Oil would not be produced until a development plan has been reviewed, and the Commission would review the additional equipment and procedures available to cope with oil spills at that time. (The oil spill, contingency planning framework for offshore Southern California is discussed in a staff note at the end.) Staff Note: No Commission Review of Navigational Safety Issue. To anchor a drillship in navigable waters, a permit must be obtained from the U. S. Army Corps of Drgineers. The Corps permit activity is on the list of activities in the CMP that may affect the coastal zone, so in the future the Corps can not grant such a permit without Commission consistency concurrence. The Corps reviews the impacts on navigational safety of placing any structure in navigable waters. Because Chevron applied for the Corps permit to place the drillship before August 31, 1978, the Corps permit activity — placing the drillship — does not come under Commission consistency review. The Commission can not review navigational safety in the context of the U.S. Geological Survey permits, because those permits are only for drilling individual wells from the drillship, not for locating the drillship in navigable waters. Be— cause placement of the drillship in the vessel traffic lane is a controversial issue, this note explains the current federal regulatory framework for permitting such placements. The two d3?111 sites proposed by Chevron are located within the northbound lane of the Gulf of Santa Catalina Traffic Separation Scheme (Exhibit 1),(GSC TSS). The Corps has granted Chevron the permit to conduct these drilling operations. The presence of a fixed structure — such as an anchored drillship — within a designated vessel traffic lane poses a significant hazard to navigation, in that it creates the threat of ramminge and vessel collisions within the lanes. -5- If an oil tanker is involved, the resulting oil spill could be substantial. The Draft Environmental Statement for OCS Lease Sale #48 estimates (p. 767) that•2.8 collisions or rammings will occur off Soutbem California in the next 14 years as a cumulative result of Lease Sale #48 and the three previous Southern California OCS Lease Sales. In the Gulf of Mexico, for which more complete recoreds are available, 31 collisions and rammings are known to have tarn place between 1962 and 1975. At least one of these accidents involved a tanker ramming a production platform, which .resulted in six deaths and a large oil spill. Prior to COS Lease Sale *35 in 1975, the U.S. Coast Guard requested that the Corps of Engineers designate the Gulf of Santa Catalina Traffic Separation Scheme (GSC TSS) vessel traffic lanes and a 500-yard strip on both sides of each lane as a Safety Fairway. Within a Safety Fairway, the installation of fixed structures — whether permanent or temporary — is prohibited. Hence, neither exploratory drilling rigs nor production platforms are permitted,within a Safety Fairway. The Corps took no action on the Coast Guard's request at that time, and stated its belief that exploratory drilling within the Gulf of Santa Catalina TSS should be undertaken before the establishment of a Safety Fairway would be considered. In OCS Lease Sale #35, the Department of Interior sold oil and gas leases for seven tracts lying partially or entirely witn the Gulf of Santa Catalina TSS, and for one tract lying in the Precautionary Area at the entrance to Los Angeles and Long Beach harbors. Following OCS Lease Sale #35, the Corps consulted with the Coast Guard, Bureau of Land Management and USGS to devise special regulations to reduce the hazards posed by exploratory drilling within or near the GSC TSS. "Guidelines" were issued as final rules on 20 June 1978. The final rules establish the following conditions for exploratory drilling within the Precautionary Area or within 1/4 mile of the GSC TSS vessel traffic lanes: (i) Exploratory vessels within a traffic lane will,'to the degree practicable, be sited near traffic lane boundaries. (ii) Exploratory vessels within one traffic lane, or in the precautionary area, shall be separated by at least 8 nautical miles in the direction of the lane axis. (iii) Exploratory vessels located within the traffic lanes, or the precautionary area, shall not have their pendant bouys within 3,000 yards, from the pendant bouys of any other vessel. (iv) Exploratory rigs and vessels engaged in offshore development may have no cables, anchors, bouys or other associated equipment within the traffic lanes, 1/4 mile buffer zones, or the precautionary area, at a depth of less than 100 ft. unless such equipment is marked with a Class 1 bouy in accordance with current Federal regulations. To date, 25 exploratory wells have been drilled on the eight tracts overlapping the GSC TSS and the Precautionary Area. One of these wells (Shell) was drilled on the tract within the Precautionary Area, and one was drilled within the north- bound traffic lane (also Shell). _6- on June 30, 1978, the Corps issued a public notice proposing to establish the GSC TSS vessel traffic lanes, together with a 500 meter buffer strip on both sides of each lane, as Safety Fairways, effective 1 March 1981. Until that date, the Corps will issue permits for exploratory drilling within the GSC TSS in accordance with the special "guidelines" described above. The reason for delaying the effective date of the Safety Fairway until 1981 is to provide the existing leases with the same five-year primary term for exploratory drilling as applies to lessees of tracts lying outside of a TSS. By letter dated 8 September 19789 the current Corps Los Angeles District Engineer has stated that the effective date of the Safety Fairway will not be pushed back if additional tracts within the GSC TSS are leased in CCS Lease Sale #48: "Any tracts that are offered in the COS Lease Sale 0+8 that fall within the proposed Safety Fairways will have to complete their explora- tory drilling work prior to March 1981. No drilling rigs will be grandfathered". Staff Note: Oil Spill Protection , Various federal, state, local and private entitles participate in the prevention, containment and cleanup of oil spills. At the federal level, the U.S. Coast Guard has ultimate authority over coastal waters and the high seas and administers the National Oil and Hazardous Materials Pollution Contingency Plan. The Coast Guard investigates all spills and will direct or supervise the efforts of the responsible party to clean up the spill. The Coast Guard may itself respond to the spill or coordinate responses to spills with other federal agencies, state agencies, and private organizations such as Clean Seas, Inc., Clean Coastal Waters, or the Southern California Petroleum Contingency Organization. USGS has developed specific regulations and COS orders regarding oil. spills. OCS Order No. 7 requires the development of procedures for the protection, prevention, and cleanup of oil spills, and inclusion of an Oil Spill Contingency Plan in a Plan of Exploration or Development. OCS Order No. 8 specifies that safety and pollution equipment will be provided and that scheduled procedures be provided to test this equipment. At the state level, an Oil Spill Contingency Plan was established by the Governor which provides for a state procedure to respond to oil spills as well as a communications network with federal, state, and local agencies, and industry to coordinate response to a spill. The Oil Spill Contingency Plan includes an inter- agency State Support Team chaired by the Secretary of the Resources Agency and a State Operation Authority, the Director of Fish and Game. The 13 State agencies that make up the State Support Tema provide manpower for spill cleanup, trailers, communi.cations,and other equipment. The Coastal; Commission is not a member be- cause it has no spill control equipment that could be used to respond to an oil spill. Local government activities are generally limited to monitoring the operations and providing onshore logistical support in the form of traffic control and oil disposal. IV. Related Commission Actions In Permit Appeal No. 181-77 (Atlantic Richfield Company) for modification of existing facilities and installation of new facilities at Ellwood, California, to increase production capacity from 10,000 bbl/day to 26,000 bbl/day, the application found no substantial issue with the South Coast Regional Commission's approving the application with the condition that a qualified representative -7- of the Department of Fish and Game or other unit in the Resources Agency evaluate the inventory of equipment that could be deployed by ARCO, Clean Seas, Inc., or other cleanup organizations and agencies to handle oil spills, and the location of that equipment. The Commission also imposed the condition that the Fish and Game or other representative shall, if available, witness and evaluate the next unscheduled quarterly drill, conducted after the effective date of the permit, to test the effectiveness of the oil spill cleanup and containment equipment and personnel training. In Permit A-185-77 to the Port of Long Beach (Sohio) to construct three oil tanker berths, trestle, breakwater, oil pipelines, and other supporting de— velopment, the Commission granted the permit on the condition that the applicant or terminal operator arrange a physically simulated oil spill test of at least 60,000 barrels in order for all appropriate state and federal agencies, including Fish and Game and the Coast Guard to evaluate the terminal's oil spill contingency plan, recovery equipment, personnel capability, and coordination with industry cooperatives and government agencies responsible for responding to iol spills. u DRILLSHIP USED FOR EXPLORATORY WELLS EXHIBIT 1 .y • E WELL LOCATIONS IN RELATION TO THE BETA OIL FIELD LONG REACN NARROR SEAL REACN 0 0 L Chevron Chevron U.SA. Inc. 575 Market Street, San Francisco, CA 94105 140 Mail Address: P.O. Box 7643, San Francisco, CA 94120 Land Department Western Region Mr. William Ahern California Coastal Commission 631 Howard Street San Francisco, California 94105 Dear Mr. Ahern: November 1, 1978 Re: Consistency Certification Chevron U.S.A. Inc. OCS P-0306 and 0309 Addendum to pit Spill and Emergency Contingency Plan Pursuant to recent discussions with the Commission staff, enclosed please find the following: 1. Vessel and Equipment Description, Glomar Atlantic - 7 copies. 2. On Site Oil Spill Containment and Control Equipment List - 7 copies. It is our understanding that Chevron's submission covering proposed exploratory operations on the above -referenced federal offshore leases is now complete and that the oil spill containment and control equipment referred to in the enclosure meats the requirements for staff recommendation of consistency, certi- fication by the Commission. BLK:and Enclosures Revised List of Equipment Submitted by Chevron, Nov. 1, 1978 Equipment to be available on the Glomar Atlantic ON SITE OIL SPILL CONTAINMENT AND CONTROL EQUIPMENT A. Fifteen Hundred (1500) feet of Floating Barrier with 12" fence and 23" skirt weighted by 3/8" chain; quick connectors; floatable containers for quick assembly. B. Open sea, centrifugal pump, 125 gal. per minute floating skimmer, manu- factured by Skim, Inc.(*) with the following: 1. 1'k HP, 115/230 volt one phase explosion proof electric motor - General Electric. 2. Flotation base - steel, double dipped, galvanized, with poured in place foam filling and fiberglass covered with four 12" adjustable super jumbo outboard floats. 3. 250', 12/3 oil resistant Carrol electric cord connected to motor and generator complete with "speedy leader" safety connectors. 4. Four each, 50' lengths of 2" PVC semi -rigid discharge hose equipped with Andrews quick disconnect couplers and adapters. 5. Five each, 12" Standard hose float assemblies. 6. 2501, 3/8" nylon rope tether. 7. Spare Parts: a. 1'k HP electric motor (same as B.1 above) with motor spacer, volute and mounting bracket. b. Homelite Generator, Model 176A, 3500 watts with spark arrester. C. Storage tanks with 36,000 gallon capacity. (Skimmer rate allows for arrival on -site 'of additional storage capacity, as needed, prior to exhaustion of above.) D. 240' of absorbent Conwed boom, 2 boxes of Conwed preassembled absorbent sweeps and 2 boxes of Conwed sweeps. E. Ten drums of Exxon Corexit concentrated dispersant, 3 drums of Shell "Herder" dispersant, chemical spray pumps, 2 each on drilling vessel and work boat. � (*) Skim, Inc. won a national award for technological achievement in the design of their skimmer. Ship's Service Equipment 1) D.C. Electric Power (for utility service): Three, 125PW, Delco, D.C. generators, 120/21W volt, powered by three . � diesel engines. 2) AC Electric Power (for.desander, mixing pump, etc.): One 250 Y.W, General Electric, AC generator powered by -one Cumin, VT-12-600 diesel engine, and one 175 KW, AC generator powered by one Cummins 6 cylinder diesel engine. 3) Crane: Link Belt TO-108 k) Heliport: Limited to Ball 47 series or equivalent Size: 32' x 32' . 5)' Living Quarters: For.50 men 6) Service Pumps: Fire, bilge, sanitary, circulating water II. • pOLLUTIOI1 pREVE MOI7 AIM COMROL EQUIPI13NT A. One thousand (1,000) feet of 6" diameter x 10" fin Slickbar oil boom. B. Floating Sea Skimmer, supplied by Skim Inc., 1532 S. Dr. skim noseSunol to Los Angeles, CA (213) 263-3629, " " connect -to the vessel storage tanks. l C. 240 feet of a sorbent Conweb boomi 2 boxes of Conweb preassembled absorbent sweeps and 2 boxes of Conweb sweeps. D. Ten (10) drums of Corexit dislersaut with chemical spray. Pump. E. An operations plan for deploying the boom and skimmer -and using chemicals (when approved) will be on board the CUSS #1 and vessel operators will be trained to use this equipment by staging "dry runs" (practice drills) prior to start of drilling operations. F. One 52000 gpd Demco aeration -type biological sewage treatment plant with post -dry chlorination system for processing domestic wastes. G. One - 10,000 gallon capacity surge tank and one-10 gpm gravity - type, oil -water separator for deck drain treatment. H. Vessel is equipped with storage containers for contaminated drill cuttings for ultimate onshore disposal. I. Drilling operations will be monitored by a "Mad Logging" unit which has the capability of detecting any oil contamination in the drilling fluid. J. Vessel is equipped with refuse containers for ultimate onshore disposal. Y CALIFORNIA COASTAL COMMISSION 631 Howard Street, San Francisco 94105—(415) 543.8555 tiyA� November 7, 1978 2 oo,� 01 11j To: State Commission and Interested Parties From: William Boyd, Chief Staff Counsel and John Grattan, Special Consultant Subject: Response to Comments Received on Proposed Emergency Regulations Dealing With Consistency Certification for Cuter Continental Shelf Exploration and Development Plans Staff Analysis Testimony presented during the hearing on the proposed regulations dealing with consistency certification for OCS exploration and development plans, and subsequent written comments focused on two issues: (1) Does the federal Coastal Zone Management Act require a preliminary determination that an OCS activity will have a "significant effect" on land and water uses in a state's coastal zone in order to determine whether consistency review is even applicable to a particular OCS activity? (2) Should con- sistency review be made specifically applicable to air quality resources as well as "land and water uses"? Staff's response to these two questions is set forth below in the order presented. 1. Jurisdiction to Review OCS Activities The question raised regarding whether or not a preliminary determination of "significant effect" must be made can be answered by examining the wording of the federal Coastal Zone Management Act. Section 307(c) (3)(B) of the Coastal Zone Management Act provides as follows: After the management program of arV coastal state has been approved ... under Section 306, any person who submits to the Secretary of the Interior any,plan for the exploration or development of, or production from, any area which has been leased under the Outer Continental Shelf Lands Act (43 U.S.C. 1331, at seq.) and regulations under.such Act shall, with respect to any exploration, development, or production de- scribed in such plan and affecting any land use or water use in the coastal zone of such state, attach to such plan a certification that each activity which is described in detail in such plan complies with such state's approved management program and will be carried out in a manner consistent with such program. (emphasis added) Staff believes that it is essential to distinguish between the question of whether the Commission has jurisdiction to review an COS activity and the question of whether an OCS activity will be given consistency approval. The statute clearly differentiates between the standard used to determine whether a particular activity is snb'a— to consistency review (i.e. activities "affecting any land use or water use in the coastal zone of such state") and the standards to apply in determining whether the activity can be approved ("complies with" the management program and "will be carried out in a manner consistent with such program"). Thus, if an activity affects the state's coastal zone, the activity, is subject to consistency review. The question of how significant the effect is and whether the effect is positive or negative is deter- mined through consistency review. If the Commission were required to make a determination of significant effect in every instance where an activity might be subject. to consistency review, the Commission would be required to provide the equivalent of two complete permit hearings for every OCS activity; the first hearing would determine the "significant effect' issue and the second hearing would determine whether the COS activity is in fact consistent with the California coastal management program. This approach would not only require massive commitments of Commission review time but would also be in conflict with the the statutory standards and the review system set forth in the management program submitted by the State of California to the federal government. The activities described in the regulations are those activities which the State of California stated in its submittal to the federal government would be treated in the following manner: "Federal license and permit activities described in detail within exploration of development plans for COS areas adjacent to California waters that have been leased under the Cuter Continental Shelf Lands Act, will be subject to certification and State review." (see 15 OFR 930.74) In order to expedite the review of OCS activities, it may prove desirable for the Commission to establish categories of OCS activities that may be reviewed adminis- tratively by the Executive Director of the Commission rather than by the Commission itself. Staff requests suggestions by interested parties as to which categories of OCS activities might be reviewed administratively rather than through Commission review. Any categories of OCS activities proposed for administrative review will be presented to the Commission for inclusion in these regulations within the four month time frame required by state law for making these emergency regulations permanent regulations. 2. "Land and Water Uses" During its testimony at the last Commission hearing, the Natural Resources Defense Council suggested that the term "land and water uses" be "broadened" to include air quality impacts. The significance of this comment is that the scope of the phrase "land and water uses" determines the range of OCS activities that will be subject to consistency review and could also be viewed as implying the types of resource concerns that should be addressed in consistency review. Staff believes that the suggestion by NRDC should not be incorporated into the regulations because the Coastal Zone Management Act itself already clearly establishes that a state's air quality program is incorporated by reference into the state's coastal management program. Section 307(f) of the Coastal Zone Management Act provides that "any requirement (1) estab- lished by the Federal Water Pollution Control Act, . . . or the Clean Air Act . . ., or (2) established by the Federal Government or by any state or local government pursuant to such acts . . . shall be incorporated in any program developed pursuant to this title and shall be the water pollution control and air pollution control requirements applicable to such program." (emphasis added). Staff has phrased the standards for Commission jurisdiction and for consistency review in the language of the Coastal Zone Management Act itself because the language of the statute is clear�on its face. When the statute talks about activities affect- ing ".EU land use or water use" (emphasis added), it is obvious that air quality impacts on land and water uses would be included within the scope of OCS impacts that would be considered. A state's air quality program is not an abstract program orient- ed toward protecting air quality itself but is instead designed to protect the quality of air required to maintain natural areas, agricultural activities and, at a basic level, a standard of air quality that will allow for continued human activity in metorpolitan areas, including the use of land resources for industrial production. -3- 0 If the phrase "affecting any land use or water, use in the coastal zone" is not interpreted as including air quality concerns, Section 307(f) of the Coastal Zone Management Act (quoted above) would be meaningless. For the above reasons, staff concludes that air quality concerns are clearly within the purview of consistency review. It is the view of staff that the "broadening" of statutory language is unnecessary where the statute clearly embraces a resource pro- tection concern and where the "broadening" of the statutory language could be construed as implying that the concern in fact is not embraced within the basic meaning of the statute and requires an administrative "broadening". Staff Recommendation: The staff recommends that the Commission adopt the attached proposed emergency regulation. This proposed regulation is essentially the same as that presented to the Commission at the October 24th meeting with some minor changes which are indicated by underlining additions to and striking through deletions from, the new draft. TITLE 14 - DIVISION 5.5 - CALIFORNIA COASTAL COMMISSION Emergency Regulations to promulgate procedures under which the -California Coastal Commission will concur or object to an applicant's "consistency" certification for an Outer Continental Shelf (OCS) exploration or development and production activity which in" affect the coastal zone. Statement of Emergency: Section 307(c) of the Federal Coastal Zone Management Act (CZMA) provides a mechanism whereby a coastal State which has a Coastal Zone Management Program approved by the Secretary of Commerce can require a consistency certificate from an applicant for a Federal permit or from a person who submits a plan for exploration of or development or production from the Outer Continental Shelf, if the activities contemplated under any of the above permits or plans may affect the State's coastal zone. This deter- mination of consistency must state that the activities which will be undertaken comply with the State's Coastal Zone Management Program and will be conducted in a manner consistent with such program. The coastal State may then concur or object to the applicant's consistency determination. The applicant's permit or OCS plan activity cannot be approved by a Federal agency if there is an unresolved objection of the coastal State, unless the Secretary of Commerce determines that the activity proposed is either consistent with the objectives and purposes of the CZMA or is necessary in the interests of national security. This stat•itory procedure provides an essential mechanism by which a State can ensure that activities on the OCS affecting its coastal zone which occur under a Federal permit or OCS plan will not be in conflict with the State's approved Coastal Zone Management Program. Without this protection a State has no control over many activities, such as those which occur on the OCS, which may have a great effect on its coastal land and water uses. On August 31, 1978, Judge Robert J. Kelleher, of the United States District Court for the Central District of California, (American Petroleum Institute, at al. vs Robert Knecht, et al.), upheld the California Coastal Zone Management Program and approval by the Secretary of Commerce of the Program. In doing so, he lifted an order which had prevented the consistency provisions of Section 307 of the CZMA from going into effect. Thus, as of August 31, 1978, all applicants for Federal permits or persons submitting certain OCS plans which mdy affect the land or water uses of the California coastal zone must attach a consistency certification to the Federal application. In order for the State of California to act on these consistency certifications, regulations which provide for public notice, hearing, and manner of processing consistency deter- minations must be promulgated. Several OCS plan submissions are imminent. Without immediate adoption of such regulations, consistency determinations for these major undertakings cannot be made and the public welfare of the citizens of California will suffer in that its adopted and approved coastal management plan may not be in effect to review actions which affect land and water uses in the California Coastal Zone. a _2_ 0 CHAPTER 10 —FEDERAL CONSISTENCY DETERMINATIONS Subchapter 1 eMEF6RN-1A-e6ASt2AB COiU.IISSION PROCEDURES FOR CONSISTENCY DETERMINATIONS FOR OUTER CONTINENTAL SHELF(OCS)EXPLORBTION AND. DEVELOPMENT OR PRODUCTION PLANS, AND FOP OCS RELATED FEDERAL PERMITS 13660 -4k. Definition The term "applicant" means any individual, corporation, partnership, association, or other entity organized or existing under the laws of any State, the Federal government, any State, regional, or local government, or any entity of such Federal, State, regional or local government, who submits to the Secretary of the Interior, following management program approval, an OCS plan which describes in detail Federal license or permit activities. 13660.1 42. Preliminary Submissions a. At least 30 days prior to submission to the Pacific Area Oil and Gas Supervisor, United States Geological Survey (USGS - Supervisor), of any plan required to be submitted under the Outer Continental Shelf Lands Act (43 USC 1331 et se=0 for the exploration, development or production of areas leased under that Act, any applicant wishing to undertake such activ- ities in areas adjacent to Califoania waters shall submit to the Executive Director of the Commission a description of all activities required to be described in detail in the OCS plan which affect coastal land and water uses. This shall include�at minimum,activities requiring the following federal approvals: USGS - Department of the Interior - Approval of offshore drilling operations - Approval of design plans for the installation of platforms - Approval of gathering and flow lines The following'OCS-related Federal license activities are encouraged to be included, if they will be required in connection with the OCS activity. Department of Defense - U.S. Army Corps of Engineers o Permits and licenses required under Sections 9 and 10 of the Rivers Harbors Act of 1899 o Permits and licenses required under Section 103 0£ the Marine Protection, Research and Sanctuaries Act of 1972 o Permits and licenses required under Section 404 of the Federal Water Pollution Control Act of 1972 and amendments o Permits for artificial islands and fixed structures Iodated on the Outer Continental Shelf (Rivers and Harbors Act of 1899 as extended by 43 U.S.C. 1333(f)) Department of the Interior --Bureau of Land Management - USGS o Permits and licenses required for drilling and mining on public lands (BLM) o Permits for pipeline rights -of -way on the Outer Continental Shelf 10 -3- o Permits and licenses for rights -of -way on public lands Environmental Protection Agency o Permits and licenses required under Sections 402 and 405 of the Federal Water Pollution Control Act of 1972 and amendments o Permits and applications for reclassification of land areas under regulations for the prevention of significant deterioration (PSD) of air quality Department of Transportation - U.S. Coast Guard o Permits for construction of bridges under 33 USC 401, 491-507 and 525-534 o Permits for deepwater ports under the Deepwater Port Act (P.93-627) Federal Energy Regulatory Commission o Certifications required for interstate gas pipelines o Permits or licenses for construction and operation of facilities needed to import, export or transship natural gas or electrical energy b. The Executive Director shall also provide the applicant with a copy of the California Coastal Zone Management Plan. 13660.2 -'}r Review of Environmental Report for Sufficiency of Information The Executive Director shall review the advance copy of the environmental report for the subject OCS activity, which is required to be forwarded to the Commission by the supervisor. If he determines that the environmental report does not contain the information required by 30 CFR 250.34-3(a) for exploration plans or by 30.CFR 250.34-3(b) for production and development plans, he shall inform the Supervisor within 10 days of receipt of the environmental report. 13660.3 -44r Submission of Consistency Certification a. The applicant shall,submit to the Executive Director of the Coastal Commission the OCS plan, with accompanying consistency certification for all major activities required to be described in detail in the ntan and identified in section Poe} 13360.1(a) of these regulations, and the environmental report as,soon-as it is- approved-b,., the Supervisor pursuant to 30 CFR 250.34-1(b) (-2 (1)for exploration plans or 30 CFR 250.34-2 (b)(1) for development ana nroducti=—.-fans. - b. The consistency certification -for -all major activities -involved in the OCS plan as required by s 9{n} 13660.4 above shall be in the following form: The proposed activities described•in detail in this plan comply with California's approved coastal management program and will be conducted in a manner consistent with such program. c. The applicant shall also include (1) a brief assessment relating the probable coastal zone effects of each of the enumerated activities and their associated facilities to the relevant elements of the program policies of the California Coastal Zone Management Plan (CCZMP): and (2) a brief set of findings derived from the assessment indicating that each of the enumerated activities (e.g. drilling, platform placement), and its associated facilities (e.g. onshore support structures, offshore pipe- lines), and its primary effects (e.g. air, water, waste discharges, erosion, wetlands, beach access implants) are consistent with the mandatory provisions of the CCZMP. d. Upon request of the applicant, the California Coastal Commission staff will provide assistance in preparing the assessment and findings required in 84(c) (1) and (2) of these regulations. e. The Executive Director may request additional data as permitted under Department of Interior regulations (30 COF.R8 250.36) from the applicant if he deems it necessary for a complete and proper review. The applicant shall comply with such request within 10 days of its receipt or shall in- dicate within 10 days reasons why the request cannot be complied with. 13660.4 ftT. Staff Summary and Hearing Notice Upon receipt of the OCS plan, environmental report, consistency determination and the accompanying fundings and assessments and any other information which the Executive Director deems necessary, the Executive Director shall: a. Prepare a staff suuwary of the dpplicants' findings anti assessments and send the summary to the applicant, the Assistant Administrator for Coastal ."one Management, Natural oceanic and Atmospheric Administration, Department of Commerce, (Assistant Administrator), the Department of Interior and other relevant Federal agencies, the affected Regional Commissions,local governments, state acencies, and other interested Parties. b. Schedule a State Coastal Commission public hearing on the applicant's consistency determination findings and assessments and the staff summary, giving appropriate notice to all interested parties, with particular emphasis on informing the coastal area which will be.affected. The notice shall announce the availability for inspection of the applicant's consistency certificate and findings. The state and regional agencies responsible for air and water quality compliance shall be notified and provided the opportunity to present their agencies' positions before the Commission hearing. Such hearing shall be set for a regular Costal Commission meeting not later than the 42nd day after receipt of the documents required by Section 4. All public hearings shall be scheduled with a view toward allowing adequate public distribution of the in- formation contained in the staff's summary and recommendation and toward allowin< public participation and attendance at the hearing, while affording the appli- cant expeditious consideration of consistency determinations. 13660.5 -94. Contents of Summary The summary shall: (1) list the major activities listed in the OCS plan, for which a consistency determination, assessments and findings have been required, (2) discuss the effect of these activities and their associated facilities, and their effects on land and water uses in.the coastal zone, (3) discuss the con- sistency of such activities and related effects with the relevant policies of the CCZMP. The summary shall also specifically list all other Federal permits for which consistency findings have not been enclosed and for which future consistency determinations will be required under Section 12 of these regulation: 13660.6 97. Conduct of Hearing on Staff Recommendations or a Consistency Determination The Commission shall be the final decision maker on consistency determinations and shall conduct de novo hearings on consistency determinations substantially in accordance with the applicable procedures for permit hearings set forth in Sections 13057 through 13096, excluding Sections 13071, 13085, and 13087 of these Regulations. -5- 13660.7 -Pa,- Regional Commission Role The affected Regional Commission(s) may wish to conduct hearings prior to the Commission hearing, and based on those hearings present testimony at the Commission hearing. Upon written request by a Regional Executive Director, the Executive Director may extend for an additional 30 days the 42-day time period for its hearing required by Section 5 above in order to allow a full hearing at the Regional Commission level. Any Regional Commission hearings shall also be conducted substantially in accordance with Sections 13064- 13096 of these regulations. 13660.8 -97. Final Commission Decision The Commission shall issue a decision on whether the applicant's consistency certification complies with the CCZMP; i.e., whether it "concurs" or "objects" to the applicant's consistency certification, at the earliest practicable time and in no event more than 6 months from the date of receipt of such consis- tency certification and required information'(see Section 3 of these regulations) If a Commission decision has not been reached within 3 months of such receipt, the Executive Director shall notify the Assistant Administrator of the status of review and the basis for further delay. A commission decision which objects to an applicant's consistency certification shall be accom- panied by a statement indicating:) (1) the effect which the actvity will have on coastal land and water uses, (2) how the activity is ironsistent with a specific CCZMP policy or policies, and (3) alternative -easures (if they WV"" waxe the proposes acrivicy consistent with CCZMP policies. If a decision to object is based upon grounds that the applicant has not provided information required under Section (4) above, and requested by the Executive Director under Section 4(e), the nature of the information requested and the necessity of that information for a consistency determination must be described. When the Commission objects to the applicant's consistency deter- mination, the decision shall include a statement indicating the applicant's right of appeal to the Secretary of Commerce. The Commission shall notify the applicant, the Supervisor, and the Assistant Administrator of its decision by sending a copy of its Final Decision to them. 13660.9 -11a- Appeals Procedure Any applicant who wishes to appeal to the Secretary of Commerce a Commission objection to a consistency determination shall immediately send a copy of the appeal and accompanying documents to the Executive Director of the Commission. The Executive Director shall prepare detailed comments to the Secretary of Commerce within 30 days of receipt of the appeal. These comments shall be the subject of Commission discussion with opportunity for public comment, and the comments of the Commission may be sent to the Secretary of Commerce in the appeal process or presented orally if the Secretary schedules a hearing. This procedure shall also be followed if the Secretary of Commerce pursues an inde- pendent review of the consistency of an OCS activity. -6- A 13660.10 11r. Required Amendments Any amendments to an OCS plan which must be submitted as a result of Commission objection to consistency of an OCS activity shall be processed as if such amendment were a new plan; i.e. Sections 1-9 of these regulations apply, except that the Commission must make its decision within 3 months of receipt. 13660.11 �T. Multiple Permit Review a. Applicants are strongly encouraged to include with OCS plans and with consistency certifications required to be submitted to the Commission in accordance with Section 4 of these regulations, detailed descriptions, consistency determinations, findings and assessments and other supporting data for other permits required in connection with OCS-related activities, but not required to be described in detail in OCS plans by the Secretary of the Interior (e.g. Corps of Engineer or EPA permits, or the other permits listed in Section 2 of these regulations). Where consistency determinations and related rindings and assessments are made for all required Federal permits connected with an OCS plan, the applicant shall so state and con- solidated consistency review for these Federal permits will take place at the same time and under the same procedures as review of major activities required to be described in detail in OCS plans (Sections 1-11 of these Regulations). b. If consistency determinations and related assessments and findincs for all OCS related Federal permits are not included with an OCS plan and consistency determination, the applicant shall state which Federal permits have not been included. The Commission will review those permits which are not included separately. The final decision of the Commission for consis- tency determinations of OCS plan activities shall state which Federal permits have not been included and which therefore must be reviewed separately. c. The applicant and the Coastal Commission shall comply W#,h Sections 1-}} 3,3660=343660.10 of these regulations in processing consistency determination which have not been included with OCS plans, except that: 1) The applicant shall submit his description of permit activities for the Executive Director's review (Section 2) 30 days prior to the application for the Federal permit. 2) An environmental report as described by 30 CFR 250, 34-3(a) and3(b) need not,be submitted, if one which covered the subject permit activity was previously submitted under section 3 of these regulations, or if the Executive Director is satisfied that the applicant has provided sufficient information concerning the environmental effects of the permit activity to adequately review the project as if it were a coastal permit under the CCZMP. 3) Wherever there is a requirement to notify the Supervisor, notification shall also be sent to the chief of the Federal permit agency. IN REPLY REFER TO United States Department of the Interior 1792 BUREAU OF LAND MANAGEMENT Pacific OCS Office 300 N. Los Angeles St., Rm. 7127 Los Angeles, California 90012 Bob Lenard City of Newport Beach 3300 Newport Newport Beach, California 92660 Dear Mr. Lenard: r�EIS #48 i" 21 X. MAY 15 1978 As part of our continuing effort to provide local government and other interested groups and agencies an opportunity to be involved in the writing and review of the Draft Environmental Statement (DES) for proposed OCS Sale No. 48, we invite you to participate in a review of Chapter III, Environmental Impact of the Proposed Sale; Chapter IV, Mitigating Measures Included in the Proposed Action; Chapter V, Unavoidable Adverse Impacts; Chapter VI, Relationship Between Local Short -Term Use and Maintenance and Enhancement of Long -Term Productivity; Chapter VII, Irreversible and Irretrievable Commitment of Resources; Chapter VIII, Alternatives to the Proposed Action; from June 19, 1978 to June 28, 1978. Comments received after July 12, 1978 will be considered for the Final ES. The preliminary draft of those chapters will be available at the Orange County Environmental Management Agency, 811 North Broadway, Santa Ana, California. Please contact Mr. Robert Montgomery of the Environmental Management Agency or Herbert Emrich of my staff for any questions or assistance that you may need. Sincerely, Manage , t SCorn Rgc VEd 0evel U�nItj t MAY 171978a. N�WPOOF 4' CAUF NCH, Save Energy and You Serve America! • 9 to • 6 0 • OCS areas are issued as National b. Notices to Lessees and Operators need to supplement or modify with written confirmation, which OCS Orders. In those instances A Notice to Lessees and Opera- certain requirements of OCS in his judgment threatens imme- where requirements are neces- tors is a formal notification to all Orders, Notices to Lessees and diate, serious, or irreparable sarily different to accommodate lessees or operators within a Operators, or Field Drilling harm or damage to aquatic life, special situations peculiar to op- particular OCS Area which (1) Rules to pursue the proper plan property, the leased deposits, erations in each area, these re- provides clarification or interpre- of action. As a means of recog- other valuable mineral deposits, quirements are set forth as ap- tation of an OCS Order, regula- -nizing these special circum- or the environment. Such emer- pendices to the particular Na- tion, or lease stipulation, or (2) stances, approval of a proposed geney suspensions continue until tional Order pertaining to that requires implementation of a spe- plan may be granted pending terminated by action of the Su - subject. These Orders and ap- cial •lease stipulation -contained TT fulfillment of special require- pervisor. pendices are revised to meet new in the -lease contract. These='No- l ments or conditions necessitated 5. Review of Plans and Applications technological discoveries and im- tices to Lessees and Operators by these situations. These condi- All proposed operations are reviewed provements, changes in the regu- are issued by the Area Oil and tions are stated in a letter grant- by Geological Survey personnel in ac- lations, or for other reasons. Gas Supervisor after approval of ing approval of the plan, or are cordance with applicable Geological The five -step procedure followed the Conservation Division Chief, attached to the approved plan re- Survey or Department of the Interior in the development or revision of and apply only to a particular turned to the operator. The con- regulations, rules, and guidelines and an OCS Order is as follows: OCS area or part thereof. Copies ditions of approval may require the provisions of the National En- i. A "Notice of Intention" in are available to Federal, State, additional safety measures, noti- vironmental Policy Act and the the Federal Register states and local agencies, the general fication of the District or Area Coastal Zone Management Act. This that a new Order or a re- public, and other interested par- Supervisor before commence- review procedure ensures that provi- vision of an existing Order ties. ment or upon completion of cer- sions exist for adequate equip - is being considered by the c. Field Drilling Rules tain operations, submission of ad- ment, qualified personnel are used, Geological Survey and solic- When sufficient geologic and en- ditional test data, or the filing of safe working environments exist, its its comments by interested information is ob- reports in a different manner or automatic sensors and detection de - .parties. tained through exploratory and time period. Operators and les- vices are properly deployed, auto - ii. A draft copy of the Order or initial development drilling, op- sees must comply with these con- matte shut-in systems exist, and per - revision is prepared and re- erators may make application, or tons in the same manner as sonnet awareness of the need and ire - viewed by appropriate Geo- the Area Supervisor may require with Orders, regulations, with of safety and pollution -pre - logical Survey personnel and an application, for the establish- and other applicable rules. her vention vention is stressed. Pollution -con - submitted to other Federal ment of Field Drilling Rules to e. Other Directives tingency plans relating to the posi- and State agencies for re- be followed during subsequent In accordance with 30 CFR Part tioning of cleanup equipment must view; it is then published in developmental drilling. Field 250.12, the Supervisor is author- provide an acceptable response time the Federal Register. Drilling Rules are issued by the ized to issue any other orders and in the event of a pollution incident. iii. All comments on this draft Area Supervisor to establish the rules necessary to regulate op- During its review procedure, the are reviewed and the order optimum safety requirements for erations effectively, and to pre- Geological Survey may consult other modified when needed. Ra- all drilling and completion prat- vent damage to, or waste of, any Federal and State agencies. No plan tionales for accepting or tices in an identified field through natural resource or injury to life or application is approved until it rejecting comments are de- specific requirements regarding or property. The Supervisor may ensures that procedures exist for con- veloped and documented. casing, cementing, perforating, prescribe or approve in writing, ducting operations in a manner em- Technical aspects of the drilling mud, and drilling proce- or orally with written confirma- phasizing safety of operations and Order may be discussed with dures. These rules are based on tion departures from the re- p minimizing the risk of environmental persons from industry, ad- engineering, geological, geo- quirements of OCS Orders and damage and ensures consistency with jacent States, or other af- physical, and operational data other orders issued when such the Coastal Zone Management Act fected organizations. gathered during the exploratory departures are necessary for the and amendments. The major plans iv. A final Order or revision is drilling activities. All Field proper control of a well, toner- and applications reviewed in this published in the Federal Drilling Rules are reviewed an- vation of natural resources, pro- manner are as follows: Register, with accompany- nually and may be modified, can- tection of aquatic life, or protec- a. Exploratory Drilling Plan ing explanations of changes celed, or continued as conditions tion of human health and safety, Before starting exploratory drill- made in the draft version. property, or the environment. ing, the lessee must secure ap- v. Geological Survey field offices warrant. r Furthermore, the Supervisor is proval of an exploratory drilling revise present regulatory d. Conditions of Approval i authorized to suspend any opera- plan from the Area Supervisor. procedures to accommodate The evaluation of lessees's pro- tion, including production, with The plan must be comprehensive the new or revised Order. posed plans may indicate the notification in writing, or orally in the details of the proposed op- 12 13 erations, and must include: (1) tifies an inventory of all appli- the development of an OCS stand- plicable to OCS oil and gas opera - the location of the proposed cable equipment, materials, and and for applications in a specific sub- tions. well(s), both at the surface and supplies available on site, locally jest area by the Geological Survey, d. The Geological Survey's OCS stand - at the total depth; (2) a deserip- and regionally, for pollution -pre- the following procedure is utilized ards program for safety and pollu- tion of the proposed drilling ves- vention or cleanup operations. to develop ithe standard in compli- tion-prevention equipment includes sels or platforms specifying the The lessee's plan states the re- ante with the public information a quality assurance component as a tentative locations, vessel design sponse time for the various items and rule -making procedures of the functional element to ensure that and other features related to pol- and provides for varying degrees Administrative Procedures Act: safety and pollution -prevention prod- lution prevention and control, of response activities depending i. A "Notice of Intention" pub- nets meet Geological Survey stand - and the results of an analysis of on the severity of the pollution i lished in the Federal Register ards. A generic quality control sys- the drilling system in accordance incident. comments by interested tem standard is included by refer - with established systems -design fit The contingency plan further (' parties on the content of the pro- ence in each equipment standard procedures; and (3) the subsur- specifies the notification proce- v posed standard and the proce- which manufacturers must meet and face structural interpretation dure used to assure prompt re- dures which may be utilized to provides for evaluation and certifica- based on the best available geo- porting of pollution incidents to develop the standard. tion of manufacturer's quality con - logical and geophysical data, in- the proper regulatory agencies. ii. A determination is made as to troI systems and products. Through eluding contour maps and cross The lessee's actions to be taken j the most effective way to this procedure, Geological Survey sections and anticipated p produc- after an oil spill are defined and � op the standard, taking into ac- to ac- quality assurance personnel estab- ing zones in each proposed well, specified, including the naming count comments received from lish requirements for certifying pro - The Area Supervisor may require of a response coordinator and all sources as a result of the fessional organizations or Govern - other pertinent data as needed. team and the designation of a Federal Register Notice. ment-accredited testing laboratories. b. Development Plan pre -planned response center with Before comeneing each develop- a communication system for di- iii. After a draft copy of the stand- 4. Operational Directives for Lessee ment program, the lessee or op recting the response operations. and has been prepared, it is re- Compliance erator must obtain approval of d. Critical Operations and Curtail - viewed by appropriate Geologi- The Outer Continental Shelf Lands a development plan by the Area ment Plan cal Survey personnel and pub- Act authorizes the Secretary of the Supervisor. This plan includes all In conjunction with an explora- lished in the Federal Register Interior at any time to prescribe and the information requested in an tory or development plan, a les- for comment by interested par- amend such rules and regulations, to exploratory drilling plan, de see must also obtain approval of ties. be applicable to all operations con - tailed platform and/or subsea a critical operations and curtail- iv. All comments on this draft are ducted under a lease issued main - production system design fea- ment plan. This plan lists or de- reviewed and the standard modi- t twined underthe provisions of the Act, tures, and the results of the pro- scribes certain operations which fied when needed. Rationales for as he determines to be necessary and duction equipment systems de- have been judged to be more crit- I accepting or rejecting comments proper for the prevention of waste sign anaylsis. ical than others and which may are developed and documented. and conservation of the natural re - The Governors f the directly need to be ceased, limited, or not ( Technical aspects of the stand- sources of the Outer Continental Shelf, and the protection of correla- fected States areofurnished copies es to be commenced under given cir- and may be discussed with in- five rights therein. These regula- of the pertinent parts of the les- cumstances or conditions. The I terested parties. tions, rules, and Orders are adminis- see's development plans in ae- plan also lists or describes the circumstances or conditions un- ( v. A final standard is published in tered by the Geological Survey and cordance with 30 CFR 250.34 to der which these critical the Federal Register, with ac- provide requirements, specifications, assist the States in considering opera - tions shall be curtailed. The Dis- companying explanations of and standards to promote safety of the onshore impacts of the pro- trict Supervisor must be notified , changes made in the draft ver- operations, protect facilities and posed development. The Governor when such conditions or circum- sion. equipment, and minimize pollution or his appointed representative stances exist and may order the vi. New or revised OCS Orders are of the environment. a is invited to submit comments to critical operation to be curtailed issued to implement the require a. OCS Orders OCS Orders are formally pum- the Supervisor for his consid- as long as the situation warrants. ments set forth in Geological eration in the review of the plan. e. Contingency Plait for Simuitane_ Survey OCS standards. bered directives issued to imple- ment the provisions of Title 30 c. Oil Spill Contingency Plan ous Operations c. The Geological Survey may provide of the Code of Federal Regula- In conjunction with an explora- A problem on production plat- consultants to committees formu- tions governing oil and gas op- tory or development plan, the op- forms may arise when multiple lated by standards -developing or- erations on the Outer Continental erator must submit an oil spill operations are conducted simul- ganizations for the specific purpose Shelf. OCS Orders providing contingency plan. This plan iden- taneously without proper aware- of developing draft standards ap- common requirements for all 14 11 - -- --- - _ - ----- - - -_=---_- _ -- 10 • 0 bility of the sea floor and the type and variety of fauna and flora on the sea floor. Such information may indi- cate that a particular tract should not be offered for leasing because of a poten- tially high risk to the en- vironment or safety of op- erations. A less serious con- dition may allow leasing of the tract with special stipu- lations addressing subjects such as rig or platform size and location, additional safety measures and equip- ment, or special operational procedures. ii. From all available environ- mental information, climatic, biologic, and oceanographic factors are considered in de- termining whether to issue permits for a particular op- eration. Controls are tailored to the specific operation so as to minimize damage to the environment and ensure safe operation. b. Post -lease Geological, geophysical, engineer- ing, and environmental informa- tion obtained in pre -lease opera- tions is continually updated to obtain technical information for reference when considering ap- proval of exploratory and devel- opment drilling plans. Research and development projects may be formulated to investigate gaps in this information. 2. Research and Development The Geological Survey monitors all activities affecting safety and pollu- tion -prevention in marine oil and gas operations, and identifies technologies and operational practices where ad- ditional research and development ef- forts might reduce the likelihood of accidents and pollution. The Geological Survey's research and development program augments in- 10 dustrial and academic programs and concentrates on matters directly re- lated to safety and pollution. The pro- gram continually assesses research being conducted in this field by in- dustry, academia, and other Govern- ment institutions. Subjects requiring further studies may also be indenti- fied through review of Area Systems Review Committee reports on field operations and incidents (reference Section VII.B). Topics which might be improved by specific R&D studies are discussed with industry and scientific advisory groups to solicit interest and partici- pation. If participation by these groups is not forthcoming, the Geo- logical Survey may contract for studies in the area of interest. Improvements resulting from indus- try, academic, or Government efforts, or any combination of efforts by these groups, may be incorporated into the requirements of future OCS Orders or Standards. An annual re- port summarizes R&D programs af- fecting OCS oil and gas operations. 3. OCS Standards The Geological Survey develops or en- sures the development of OCS stand- ards for safety and pollution -control equipment, hazardous operations pro- cedures, and personnel training and qualification. Lessees are required to use only those safety devices, procedures, and personnel which comply with Geo- logical Survey standards as directed by OCS Orders where such standards exist. The procedures followed in the develop- ment of Geological Survey OCS stand- ards are as follows: a. Topics that warrant establishment of standards are identified through evaluation and analysis of marine and onshore oil and gas operational data and procedures, or through studies by industry technical associa- tions, academia, professional organi- zations, or interested parties. b. Upon identification of the need for ness of the effect one may have on the other(s). An operator must obtain approval of a Con- tingency Plan for Simultaneous Operations by the appropriate District Supervisor prior to con- ducting activities such as drilling, workover, wireline, and major construction operations simul- taneously with production opera- tions. The plan must describe the operations, their location on the platform, and procedures to be used to prevent undesirable events. The purpose of requiring such a plan is to assure coordina- tion of the activities and to re- quire that overall responsibility for safe platform operation is placed on one individual. f. Drilling Application Prior to exploratory or develop- ment drilling under an approved plan, the lessee must obtain ap- proval of the District Supervisor of an Application for Permit to Drill. This application states the location and proposed depth of the well, describes the blowout - prevention system, and the cas- ing, cementing, and mud pro- grams to be used in the drilling process. The drilling application is accom- panied by a geophysical data re- port on the nearby surface and near -surface conditions for geo- logic hazards. Cultural resource and biological surveys may also be required. g. Sundry Notice Application The operator must obtain the ap- proval of a Sundry Notice by the District Supervisor before start- ing any work to fracture -treat, acidize, repair, multiple -complete, abandon, change plans, or similar operations which have not been previously approved. h. Secondary Recovery Plan The operator must obtain appro- val of a secondary recovery plan 15 by the Area Supervisor prior to the commencement of any pres- sure maintenance, secondary, or tertiary recovery operations. This plan includes pertinent geological and engineering data describing the reservoir characteristics and performance history, planned in- jection pressures and volumes, projected additional recovery, wells to be utilized, equipment to be used, and other data which may be required by the Supervi- sor to assure that the operation is conducted in a safe manner. The project is monitored by Geo- logical Survey personnel through a review of reports submitted monthly which specify the injec- tion and production volumes, reservoir pressure changes, and other similar data. i. Applications to Abandon Well Before starting operations to abandon a well, the lessee must obtain the approval of the Dis- trict Supervisor. The application submitted by the lessee for ap- proval lists the intervals that are to be plugged with cement and the casing to be recovered. 6. Systems Design Analysis The Geological Survey requires that the lessee conduct a Systems Design Analysis (SDA) and submit the re- sults prior to, his seeking approval of new oil or gas production facilities on the Outer Continental Shelf or ap- proval of certain modifications to existing facilities. This analysis is re- quired to assure that lessees improve total production system equipment reliability by systematically identify- ing potential causes of accidents or pollution incidents and subsequently modifying procedures or equipment to eliminate such events or reduce the probability of their occurrence or re- duce their consequences. The SDA and its results serve as a preventive measure and complement the enforcement and corrective meas- ures set forth elsewhere in this docu- of new offshore structures has been environmental damage. These elements may vey develops or obtains information ment. The SDA is performed by or reviewed at key intervals and com- a be modified at any time by adding or deleting on the technical and environmental for the lessee in accordance with the plies with technical standards and program activities as necessary for an effec- conditions in the area. From this in - provisions of an OCS Standard refer- rules devised to assure safe operation tive lease regulatory program. formation, criteria, guidelines, prac- enced by the appropriate OCS Order. under anticipated, induced, and en- A. Management Principles tices, and standards are established The basic SDA steps consist of (1) vironmental loading forces at the in- to promote equipment and personnel reviewing the design features of stallation site. The environmental i The regulation of OCS oil and gas lease safety and to prevent environmental equipment, the component sizing, and forces include extreme conditions and pre -lease operations by the Geologi- damage. Approval of any proposed set -point specifications and (2) iden- such as storms, earthquakes, tsu- cal Survey is guided by and committed to program is conditional on the opera- tifying those potential failures or namis, hurricanes, unstable sea floor the following major principles: tor's compliance with these estab- combinations of failures which could conditions, and ice -movements in ad- 1. Exploration and development of OCS lished controls. cause an accident or pollution inci- dition to normal wave and wind j minerals are carried out in a manner a. Pre lease dent. The initial analysis precedes the forces. a which emphasizes safety of opera- Before an operator may conduct Geological Survey's approval of the Platform fabricators are required to tions and minimizes the risk of en- any pre -lease non -research geo- installation or modification of the utilize quality control procedures dur- i, vironmental damage. logical or geophysical exploration facility. The analysis must be updated ing fabrication and testing opera- 2. The overall regulation of OCS areas activity, he must obtain Geologi- periodically to reflect any subsequent tions which are in compliance with �, is a cooperative effort among Federal cal Survey approval. This ap- modifications, and additional periodic the Geological Survey generic quality agencies, State and local govern- proval sets forth -the requirements update reports are required to assure control system standard. Evaluation f merits, the scientific community, the for safety and pollution-preven- that the configuration of the facility and certification of the adequacy of general public, and the oil and gas tion in accordance with applicable remains unchanged by minor modifi- fabricators' quality control systems industry to ensure expeditious de- OCS Orders and other rules. Gen - cations made at the field level. These is performed by or for the Geological 4 velopment of national resources eral requirements for these op - update reports, Iike the initial analy- Survey. ! while minimizing adverse impacts erations are stated in formal sis results, must receive Geological On -site inspections of the constructed i upon adjacent areas. geological and geophysical regu- Survey approval. platforms are performed during and I 3. Operations personnel are required to lations (30 CFR, Parts 250 and The expansion of the SDA technique after completion of the installation be appropriately trained and quali- 251). to cover other OCS oil and gas opera- of the structure and, at periodic in- fied. Technology and equipment meet- i. Geological, geophysical, and tions and equipment, including dril- tervals thereafter, to ensure the in- ing current regulations and standards engineering information ling, is being evaluated. tegrity of the structure. are required. from all available sources is 7. Platform Design, Construction Vera- 8. Pipeline Approval and Inspection 4. All rules, regulations, and OCS utilized to determine subsea fication, and Approval The authority to regulate pipelines i Orders governing OCS pre -lease and and subsurface conditions The Geological Survey requires that installed on the continental shelf to operations consider the views of lease op which may affect future lessees submit detailed information transport oil and gas from producing ing ; all affected p(reference See- operations in the re- lease o P on any proposed structure to be wells to onshore facilities has been tion TX.B). Once promulgated, such gions of an OCS area being erected on the Outer Continental delegated to several agencies. To pre- rules, regulations, and Orders are considered for leasing. Hi h g Shelf. This information is submitted vent redundant efforts and insure i strict] enforced through inspection y p resolution seismic techniques as part of the operator's development monitoring of all phases of pipeline and enforcement procedures designed are used to investigate the plan and must be approved prior to design, construction, installation, and to be consistent and impartial (ref- sea floor and the shallow approval of the overall development maintenance, Memoranda of Under- t erence Section IX.B.4). subbottom to indicate the plan. standing have been developed and 5. Because of rapidly changing circum- presence and extent of shal- The review of these proposed strut- agreed to by the responsible agencies stances and technology, all phases of I low faults, slump blocks, or tures on the Outer Continental Shelf as set forth in Section VHl of this OCS management are continually re- shallow hydrocarbon accu- is accomplished through the Geologi- document. Consistent with these viewed and monitored to incorporate accumulated experience. Exchange mulations. Deep multifold cal Survey's platform verification agreements, the Geological Survey: of information among all concerned seismic data is used to indi- program which assures the integrity a. Reviews all applications for pipe- parties is considered essential to cate the potential presence of fixed drillingand production fa- lines to assure that they are in properplanning. of major hydrocarbon ac- cilities for avoidingpollution and accordance with appropriate reg- cumulations at greater protecting personnel from harm due ulations and standards for pipe- B. Functional Elements depths as well as large re - to structural failures. Through this line design, installation, main- 1� 1. Pre- and Post -Lease Information De- gional faults. Sea bottom verification procedure, the lessee tenance, and operation. velopment and Evaluation sampling techniques includ- must provide documentation that the b. Rejects, modifies, or approves ap- Prior to approval of any geological, ing dart cores, dredge sam design, fabrication, and installation plications for pipelines to be con- geophysical, drilling or related opera- ples, and stratigraphic core tion on OCS lands, the Geological Sur- holes help determine the sta- 16 9 Wildlife Service's assessment of po- tential environmental impact of fu- ture oil and gas operations will be provided to Bureau of Land Manage- ment and the Geological Survey to assist in regulation of OCS mineral operations. 3. Memorandum of Understanding Be- tween the Bureau of Land Manage- ment and the Geological Survey for Outer Continental Shelf Pipelines. This MOU provides an efficient mechanism for approving pipeline routes through the submerged lands of the Outer Continental Shelf for the following purposes: (1) to in- itiate measures to provide safety and to minimize or eliminate environ- mental damage which may arise from installation and operation of OCS pipelines; (2) to ensure that the two Agencies are responsive to the needs of the oil and gas industry, other users of the Outer Continental Shelf, and the general public with respect to pipelines; and (3) to streamline implementation of the regulations and procedures wtih respect to OCS pipelines. The Geological Survey re- views the technical aspects of OCS pipeline design, installation, main- tenance, and operation in accordance with appropriate regulations and standards designed for safety and en- vironmental protection to avoid un- due interference with other uses of the Outer Continental Shelf and its superjacent waters. 4. Memorandum of Understanding Be- tween the Department of Transpor- tation (DOT) and the Department of the Interior (DOI) Regarding Off- shore Pipelines. This MOU states the individual and joint responsibilities of DOT and DOI regarding offshore pipelines so as to avoid duplication of regulatory efforts and to maximize the exchange of rele- vant information. DOT is to estab- lish and enforce design, construction, operation, and maintenance regula- tions for those pipelines extending to the shore from the outlet flange of the 12 offshore production facility where strutted under the authority of a hydrocarbons are produced or first lease instrument or a right -of - separated. DOI will establish and en- use -and -easement, and notifies force design, construction, operation, BLM in writing as to the accep- and maintenance regulations for off- ability of the technical aspects of shore pipelines extending upstream pipelines to be constructed on a from the outlet flange described above BLM-approved right-of-way. into each production well on the c. Inspects the installation of all Outer Continental Shelf. The DOI new pipelines under Geological will also (1) require compliance with Survey jurisdiction for compli- DOT regulations in issuing rights -of- ante with appropriate OCS way, rights -of -use -and -easement, and Orders and outstanding pipeline provide DOT with copies of operator regulations. The installation of applications and DOI assessments, these pipelines is monitored on (2) provide copies of approved plans a spot-check basis at least once of development to DOT, and (3) per- during installation. form pipeline management studies as d. Reviews the designand proposed necessary in newly developing areas repair operations to be conducted of the Outer Continental Shelf where on all pipelines under Geological pipeline systems do not exist, and Survey jurisdiction scheduled for provide copies of such studies to major repairs. Actual repair op - DOT. The agencies exchange draft erations are spot-checked and regulations for comment and coordin- subsequent pressure tests are ate pipeline -oriented research and witnessed by Geological Survey development projects. A cooperative personnel. plan is presented for inspecting off- shore pipelines and the reporting of 9. Drilling and Production Compliance enforcement actions. Inspection Drilling and production compliance C. Other Agreements g inspection is intended to assure that Field -level coordination agreements are the lessee and any third parties per - made by Regional Conservation Man- forming functions for the lessee agers, Area Supervisors, or District Sup- comply with safety and pollution- ervisors with other agencies and concern prevention requirements before, Jur- a specific situation or a general, continu- ing, and after drilling and production ing situation, such as coordination of operation in accordance with out - surveillance related to a pollution inci- standing regulations, rules, and OCS dent, which would involve the District Orders and as described in plans and Supervisor, a member from EPA, the applications approved by the Geologi- Coast Guard, and perhaps State agengies. cal Survey. (Ref. Section IX.B.5.) Such agreements, though considered in- This procedure includes the inspec- tion of lessee facilities and operations formal, are in writing and executed by on the Outer Continental Shelf and the appropriate Geological Survey official. at key onshore locations from which OCS activities are managed or sup- IX. Management Principles and Functional ported. Elements Lessees and operators are required Management principles and functional ele- to conduct inspection and testing of ments expressed herein describe the major certain equipment and facilities at activities of the Geological Survey designed to periodic intervals and certify that assure that all OCS operations are conducted such inspections were carried out in a manner which emphasizes safety of op- and appropriate corrective measures erations and prevention of pollution to protect taken. Compliance inspections carried life and property and to minimize the risk of 17 out by Geological Survey personnel are supplemental to these required inspections and are performed by one Geological Survey representative or by a team of personnel, depending upon the nature and complexity of the facilities or operations to be in- spected. Checklists containing pertinent re- quirements of OCS Orders and regu- lation are developed prior to com- mencement of compliance inspections and serve as the basic inspection guide. Inspections are specifically designed for each facility and opera- tion; therefore, accompanying the checklist is information on the speci- fic facilities and operations to be in- spected, such as the safety systems design analysis chart, system schema- tics, and lessee inspection reports. The applicable questions on the check- list are then answered by inspection personnel during the inspection, and the prescribed enforcement action is (Ref. Section IX.B.13.) taken if non- compliance conditions are discovered. Inasmuch as the checklist defines Po- tential Incidents of Noncompliance (PINC), any observed violation is termed an Incident of Noncompliance (INC). Compliance inspections are initially made during installation and prior to beginning operations on any new drilling, production, or processing fa- cility. The primary objectives of these initial inspections are (1)' to assure proper installation of structures or mobile units and the industrial equip- ment thereon, including processing equipment and appropriate safety and pollution -prevention devices, and (2) to assure that the proper opera- tional procedures and personnel have been provided. After operations begin, additional in- spections are conducted as described below to assure that operations are conducted in accordance with ap- proved plans and that the lessee satis- • • factorily performs the required as- surance functions: 1. Inspection of drilling operations includes a functional check of drilling control and monitoring devices and a review of proced- ures, personnel -qualifications, and records of all safety and pollu- tion -prevention aspects of drill- ing activities. During routine drilling opera- tions, compliance inspections are conducted prior to the commence- ment of actual drilling opera- tions, and at least once during the drilling period. The drilling op- erations for stratigraphic core wells and other nonroutine opera- tions are inspected more fre- quently. 2. Inspection of production facili- ties includes a functional check of the production or process equip- ment and safety devices, and a review of other safety equip- ment, procedures, personnel qualifications, and records of all safety and pollution -prevention aspects of production activities. For compliance inspection pur- poses during routine operations, production facilities are classified as "major" or "minor" in accord- ance with the following defini- tion: A "major" platform is defined as a production platform which in- cludes (1) six or more producible well completions with or without process equipment, or (2) five or less producible well completions with two or more production process equipment components which are operational, such as pressure vessels, fired vessels, at- mospheric vessels or tanks, com- pressors, treaters, and pipeline pumps. All other platforms are classified as "minor" platforms. In those highly developed areas such as the Gulf of Mexico, ma- Yr i • • 4P • • jor facilities are inspected by Committee also arranges for cooperation Departments. Each MOU is reviewed an- GeoIogical Survey personnel at and support in the operational conduct of nually and revised or terminated as nee - least semiannually, and minor fa- related programs, and provides for the essary. The existing MOU's related to cilities are inspected at least exchange of data, information, and find- OCS safety, pollution -prevention, and once each 15 months. These in- ings of mutual concern. The Committee pollution -control activities are described spections are performed more established working groups to consider below. Other agreements are being nego- frequently in less developed specific proposals or problem areas and tiated with Agencies having responsibili- areas. makes decisions within its area of re- ties on the Outer Continental Shelf. 3. Final inspections prior to termi- sponsibility, wherein there is agreement. 1. Memorandum of Understanding Be - nation or relinquishment of a Disagreements are resolved by Agency tween the Departments of the In - lease include well abandonment heads. The Committee is jointly chaired terlor and Transportation Concern - and platform removal operations. ( by the Associate Director, NOAA, and ing Respective Responsibilities Un- The results of unannounced inspec- the Associate Director, USGS. There is der the National Oil and Hazardous tions of randomly selected drilling equal membership from both Agencies. Substances Pollution Contingency and production facilities determine Meetings are held as often as necessary Plan. the degree of general compliance by to resolve immediate problems and at By this MOU, the -Coast Guard agrees in a specific area. The com- least once eve every quarter. to provide for an On -Scene Coordina- randolessees zFacility Inspection System randomll y selects facilities to be in- VIII. Other Coordination Mechanisms for (OSC) with respect to oil spills •related to operations conducted under spected and maintains complete sta- A. Secretarial Order No. 2974 the Outer Continental Shelf Lands tistical INC/PINC information. Secretarial Order No. 2974 was issued on Act. The representative of the Geo- Other inspections evaluate particular April 30, 1975, to improve and formalize logical Survey is given the exclusive problem areas discovered during pol- the planning and operating functions of authority to coordinate and direct lution-surveillance flights, regular the OCS minerals program within the measures to abate the source of pollu- lessee inspections, reports of mal- Department of the Interior by coordinat- tion. The Geological Survey repre- functions, or other lease regulatory ing Geological Survey, Bureau of Land sentative may temporarily suspend activities. Management (BLM), Fish and Wildlife regular pollution -control activities 10. Equipment Failure Reporting, An- Service (FWS) and National Park Serv- within 500 meters of the source in alysis, and Information Exchange t ice (NPS) activities concerning the order to facilitate abatement of the The Geological Survey maintains an monitoring of environmental research � immediate source of pollution. extensive information system for and operational activities on the Outer 2. Memorandum of Understanding Be- gathering, analyzing, and reporting Shelf. The Order specifies i tween taveen the Geological Survey, Bureau data on equipment used in OCS oil certain circumstances where the Area of Land Management, and Fish and and gas operations. This data serves Supervisor of the Conservation Division Wildlife Service Regarding Exchange as important basis for several will consult with BLM, NPS, and FWS of Information Affecting OCS Op - activities pertaining to pollution pre- � and receive recommendations prior to erations, vention and safety of operations. acting on pending applications or opera- This MOU formalizes cooperation P a. Failure Reporting and Corrective tions. These interbureau activities are coordinated by the Assistant Secretary among the three Departmental Bu- Action Program ram P for Program Development and Budget. reaus having primary responsibilities An equipment failure reporting in the Areas. The states and corrective action program de- B. Memoranda of Understanding that the G and Bu- a Geological Surveeyt' fines the reliability of OCS Safety To avoid problems arising from overlap- reau of Land Management are to pro - Systems, uncovers actual and po- ping jurisdiction or differing interpreta- vide Fish and Wildlife Service with tential problem areas, and estab- tions of legislation, regulations, and information regarding marine geo- lishes direction for upgrading policy, a formal agreement --termed physical exploration activities as equipment and system reliability a Memorandum of Understanding well as the opportunity to observe through testing and failure re- (MOU)—may be drawn up between the such operations. Fish and Wildlife porting. The primary purpose of Division Chief of the respective Geologi- Service is given the opportunity to this program is the maintenance cal Survey Divisions, the Director of the provide recommendations in the geo- of accurate industry -wide infor- Geological Survey, or the Secretary of logical and geophysical permit pro- mation on the reliability of safety the Interior with their respective coun- cedures and in future OCS lease equipment used under various terparts of other Divisions, Bureaus, or nomination procedures. Fish and 18 7 • • ! • • • Act, including all aspects of exploration and development of OCS resources. The Secretary of the Interior, or his designee, serves as Chairman of the Board. Mem- bers are a State Government representa- tive from each coastal State and six rep- resentatives of the general public. Ex- officio, non -voting members are appointed from the Environmental Protection Agency, Council on Environmental Qual- ity, Federal Energy Administration, and the Departments of State, Defense, Com- merce, and Transportation. The entire Board meets at least twice a year, and regional boards representing the five principal coastal regions meet at least three times a year. Geological Survey personnel participate in the meetings as requested and provide technical consultation as required. Pub- lically available reports are prepared on all meetings. I. Outer Continental Shelf Environmental Studies Advisory Committee This committee advises the Assistant Secretary for Land and Water Resources, the Director of the Bureau of Land Man- agement, the Outer Continental Shelf Advisory Board, and other offices of the Department concerning the design and implementation of environmental studies related to OCS oil and gas exploration and development, including baseline data collection, monitoring, and special stud- ies. The committee meets quarterly and additionally as called by the Chairman. The committee consists of representatives of the Governors of coastal States, mem- bers of the general public, and involved Federal Agencies. The Chairman is a De- partmental scientist appointed by the Secretary. The Geological Survey has a member on the committee and the Chief, Branch of Marine Oil and Gas Opera- tions, serves as an alternate. Minutes of the meetings are available to the public. J. Interagency Committee for Program Co- ordination, Bureau of Land Manage- ment —Geological Survey The Bureau of Land Management (BLM) and the U.S. Geological Survey 6 (USGS) have related responsibilities in a number of programs and closely co- ordinate activities in these subject areas through an interagency committee for Program Coordination so that Agency ac- tions are mutually supportive. The Com- mittee coordinates related programs in- volving the following activities in the public domain, including the Outer Con- tinental Shelf: leasing and lease manage- ment, environmental and baseline studies, land and resource classification, mapping and geodetic/cadastral surveys, and water resource investigations. The Com- mittee also arranges for cooperation and support in the operational conduct of re- lated programs, provides for the ex- change of data, information, and find- ings, and exchanges budget information during the preparation stage. The Com- mittee establishes working groups to consider specific proposals or problem areas and makes decisions within its area of responsibility, wherein there is agree- ment. Disagreements are resolved by Agency heads. The Committee is jointly chaired by the Associate Director, BLM, and the Associate Director, Geological Survey. There is equal membership from both Agencies. Meetings are held once a month or as often as necessary to resolve immediate problems. K. Interagency Committee for Program Co- ordination, National Oceanic and Atmos- pheric Administration —Geological Sur- vey The National Oceanic and Atmospheric Administration (NOAA) and the Geo- logical Survey have related responsibili- ties in a number of programs, and close- ly coordinate activities in these subject areas through an interagency committee for Program Coordination so that Agency actions are mutually supportive. The Committee coordinates related pro- grams within the full range of interface between the two agencies involving the following activities: seismology and earthquake studies; marine geology and geophysics; hydrology; mapping, chart- ing, and geodetic surveys; and earth re- source investigations from space. The i conditions in offshore operations. Basic to this program is a com- puterized inventory of all produc- tion safety equipment in use in offshore oil and gas operations to which equipment failure and maintenance data provided by all offshore operators is continually added. (This system does not in- corporate failures on items such as fire pumps, fire extinguishers, life boats, or similar items not re- lated to the production opera- tion.) The result is a historical record of the performance of the safety equipment and other sta- tistical data. This information is utilized in the following manner: 1. Continuous review of incom- ing failure information iden- tifies suspected problem areas and allows prompt, ap- propriate, corrective meas- ures to be undertaken. Any problem areas so identified are referred to the field ac- tivity which is responsible for correction. ii. Quarterly reports reflect a thorough analysis and evalu- ation of the failure exper- iences and trends. iii. Annual Reports, summarized Quarterly Reports, and se- lected parts of these reports are directed specifically to operators and manufactur- ers identifying failure trends and problem areas for their specific operation. iv. Other reports are developed as needed for special circum- stances or topics, such as (a) data to support accident investigations, (b) evalua- tion of specific problem areas and associated corrective measures, and (c) data and assessments requested by Ge- ological Survey personnel, lease operators, equipment manufacturers, other Fed- 19 eral or State agencies, and the general public. v. All finished reports a r e available, upon request, to all interested parties except where the information is proprietary. b. Safety Alert Program The Safety Alert Program noti- fies lease operators of operating practices and conditions which have resulted in accidents. Op- erators are advised to review their own operations to ensure that similar situations do not oc- cur. The OCS regulations require a lease operator to supply the Geo- logical Survey district offices with details of all serious accidents and fires on the lease. Such acci- dents are further investigated and reported upon by Geological Survey field personnel. From these reports and other pertinent data, Safety Alert Notices are written and disseminated to all lessees and operators and other interested parties and organiza- tions. Operator personnel closely associated with field operations receive copies. Depending on the findings, OCS' Orders are revised as a means of preventing similar situations in the future. c. Events File The Events File is a computer- ized historical listing of fires, ex- plosions, fatalities, blowouts, pol- luting spills, and other accidents associated with oil and gas opera- tions which have occurred on the Outer Continental Shelf. This file not only aids Geological Survey personnel associated with the re- view and improvement of OCS operations, but also is utilized in preparing Environmental Impact Statements and informing in- terested parties of OCS incidents. Lease operators are required to submit the details of accidents to the appropriate Geological Sur- of information also provides fin- D. National Offshore Operations Industry has headquarters in Washington, D.C. vey district office for review and portant statistical data from field Advisory Committee (NOOIAC), U.S. and 11 field offices. Its five members are appropriate followup action. De- inspections and reports on prog- Coast Guard, Department of Transporta- appointed by the President and approved tails of these events are for- ress of ongoing programs or spe- tion by the Senate. Geological Survey person - warded to the Area Supervisor cial projects. Field offices also re- This Committee provides advice to the nel provide expert testimony and advice for incorporation in the Events ceive copies of pertinent corres- I Coast Guard on matters relating to off- upon request. The Geological Survey is File. This information is then pondence, reports, and decisions i shore activities and the coastal environ- kept informed of investigations which in - available to the public upon re- by Department of the Interior or ment, particularly the exploration, pro- volve OCS operations, participates as re- quest and accessible in whole or Geological Survey officials. duction, transportation, and service op- quired, and receives copies of the Board's in part through Geological Sur- 11. Pollution Surveillance and Cleanup erations relating to offshore minerals and reports for internal review and action. vey Area, Regional, and Head- Close surveillance, by means of daily petroleum products. The Committee con - quarters remote computer termi- helicopter and aircraft flights s an sists of approximately 25 members, sev- G. Coastal Zone Management Liaison Group nals. general observation from platforms, eral of which are key Y personnel of tor- The Geological Survey interfaces with d. Records for Public Information is maintained by Geological Survey porations conducting oil and gas opera- the coastal States in two areas. One The Geological Survey prepares and lessee personnel to locate the tions on the Outer Continental Shelf. evolves from the Survey's statutory re- news releases on major events source of any pollution in order that Committee activity at times concerns sponsibilities related to exploration for concerning OCS oil and gas op- corrective action can be taken. The subjects directly related to mutual Coast and extraction of minerals from Federal erations to inform the general feasibility of remote sensing devices, Guard —Geological Survey responsibili- lands, including the OCS, and the other public of important OCS aetivi- including satellite observations, con- ties pertaining to offshore oil and gas op- relates to the Survey's traditional role in ties. The Geological Survey's area tinue to be considered for future use. erations. The full Committee normally the investigation and assessment of earth field offices maintain Public Rec- Operators are required by regular meets semiannually; subcomittees to con- resources and preparation of topographic ords Centers containing routine tions and OCS Orders to maintain an sider special subjects meet as necessary, and special purpose maps. Passage of the records and reports on offshore inventory of equipment that can be usually more frequently. The Chief, Coastal Zone Management Act in 1972 operations in that area available promptly mobilized to contain and Branch of Marine Oil and Gas Opera- and of Amendments to the Act in 1976 for review and copying by the clean up an oil spill. bons acts as liaison and provides for has increased the need for effective liai- general public. Also available for These conditions are set forth in an Geological Survey participation as appro- son with the coastal States in both areas public inspection are all accident p P Oil Spill Contingency Plan described priate. A report of each meeting attended and has placed on the Survey the addi- investigation reports, pollution in subparagraph I% B.5 (c). is furnished to appropriate Geological tional responsibility of involvement in and incident reports, facilities in- In the event of an accident which Survey personnel. preparation re the oration and review of the States' spection data, and records of en- forcement actions. Excluded from may result in pollution, the Geologi- E. Technical Pipeline Safety Standards proposed Coastal Zone Management Pro - grams and the accompanying p ying Environ- the information available for eal Surrey has the primary ction Committee Office of Pipeline Safety mental Impact Statements. R P esponsibil- public inspection are certain pro- lion to require corrective action to o Materials of Transporta- , ta- erattion ity for liaison with the States at field data in accordance with abate the source of pollution in ac- u au, De lion Bureau, Department of Transporta- Department level has been given to the Re gional As - Section Section of Title 5, U.S. Code, cordance with OCS Orders and Mem- tion sistant Directors. At headquarters level, as amended by Public Law 90-23. amended oranda of Understanding with other ( This committee reports on the reason- overall responsibility for liaison with the Further guidelines on the avail- Federal agencies. (ref. Section VII. I ableness, practicality, and feasibility of Department and with NOAA's Office of ability of records for public in- B)' proposed OPSO Standards. It is com- Coastal Zone Management and for coor- spection are provided in OCS 12. Accident Investigation and Reporting posed of 15 members: 4 from the natural dination of reviews of the States' pro - Order No. 12, Public Inspection Findings of the Geological Survey's gas industry, 5 from Government Agen- Posed Coastal Zone Management Pro- of Records. accident investigations are used to ties, and 6 from the general public. The grams has been given to a Coastal Zone e. Information Exchange Among develop corrective procedures for Chief, Branch of Marine Oil and Gas Op- Management Act Coordinator in the Area Offices avoiding similar accidents in the fu- erations, acts as liaison and provides for Land Information and Analysis Office. An Exchange of information amongture. The provisions of 30 CFR E c Geological Survey participation as ap ad hoc liaison group, composed of rep - resentatives of the operating Divisions area offices alerts other Geologi- 250.45 require lessees to immediately proriate. P provides the interface with the Divisions. cal Survey offices to problems, unique situations, new develop- notify the Supervisor of serious ac- cidents and all fires on the lease and F. National Trans e Sa Transportation p Safety Board H. Outer Continental Shelf Advisory Board ments, and other matters of com- submit a full written report on the } (NTSB) This Board advises the Secretary of the mon interest to assist in develop- incident within 10 days. Lessees must This independent pendent Federal Agency inves- Interior and other offices of the Depart- ing consistent policies and coor- notify the Supervisor within 24 sr tigates accidents and oversees the safety ment on policy issues related to the per- dinating activities within the hours of other accidents or unusual of civil aviation, rail, highway, marine, formance of discretionary functions un- Geological Survey. This exchange y g conditions. and pipeline transportation. The Board der the Outer Continental Shelf Lands 20 5 • • W LL The Geological Survey independently W o F investigates accidents but cooperates 3 w W with other agencies having interfac- o ing jurisdiction. Accident investiga- W2a .W-i aw w z W 8, S F 0 „„ F tion procedures provide for investi- gation of those accidents which oc- W „ > P < ; W o o y a 2 o cur during, or are directly related o, H W a M P$ `� pp� w w w W o w 'd s W d oil and gas lease operations. The o G£ p p S W .. N U -� W U U 4 U 02 H ON> .C4w w'w'UwH N 2XNW4 2 4 w 0 4 o a Coast Guard enforces regulations re- O � 4N wNW 0 quiring investigation of all accidents E O .y Cj U N C O W W F w N F W C O W W W W w a � W a >. E o 'involving fatalities or meeting eer- W O Z W¢¢ N W.ZiwNEK WH 4 W N.ZwF ,Z,U C n 4 41 W 4 W Z O Z E 0 H Z> " tain minimum injury or damage cri- es fE/-J p `1 w" w w w w O N Iu 3 4 ry Vl w W N X i ; a z , o " " z F F ( teria. In the event of an accident dur- f �r H W H W d z� a a w W O " p W u Y w w a W U U u N w w h z U ZZC 4g W " wQ " g H a Q W wa WQ 4 w o " " 4 ing oil or gas operations involving 4 U U M ri M L] 7 4 6' W w' 6' W W O Z N v 3 C 0 I ]]] 8 W W F 0 w" 4 F fatalities or an explosion, fire, or ma- o�..£ia �a'w3''�n �w oo rzi �w �w a a .z. ♦ jor pollution, procedures allow simul- ' 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 taneous investigation by the Geologi- cal Survey and the Coast Guard. The Geological Survey forms a field investigation team upon notification of an accident. The team's makeup d w g depends on the accident classification U M.8 b _ as outlined in the Accident Notifies- 2= W a g Q F S N o ' W 4, E tion and Investigation Procedures C C FEW O Z ,Uy2 4 0 o o �z o H o Plan. The team leader makes all 8 c W 0 O W W " y necessary plans or arrangements, as - .a, a > 0 W W F' o w 8 y I o F 8 sembles the investigation team, ar- w ( rives at the accident site as soon as aU U .2 c.,0 i a wow possible, and directs the on -site in- vestigation. 0 0 0 0 0 0 I Upon completing the investigation of the accident, the team prepares an ♦ + OCS Accident Investigation and An- W alysis Report. The report summarizes jI the conclusions of the Geological Sur- a w vey, evaluates the lease operator's re- ' w � M a � W port of the accident, and recommends o corrective measures to minimize the p H > = Wi Hwz N tt W w H 8 � 2 V F chances of recurrence. N W M u w o i o H 04. The completed reports are distrib- 6 o O= o a 3 W r 2 g= 8 b uted to appropriate Geological Sur- 0 a y �.�i w z�" .+z USE 4 o P. 0 M d F 8 d$ 3 2< W Z w vey personnel and the non-proprie o _ g p i a o 8 i C W `a a w es testy information made available in W wO q uFfZ+] W z a�i a.0-izmwUiw £ S HHW 62. w z N 3 E 2 g o the Public Records Offices. The Area 44 " 4 S goo w w" 4 o Z j_ o Supervisor and the Area Systems Re- O 0 W"Z W i.a O a q W u w 2 W w > z o na 2 ,F� H$ 4 view Committee (ASRC) then deter- 8 o„ z a <$ a H a„ o mine whether a Safety Alert Notice o z Ow o o 0 3 8 W o should be issued, and whether rec- ce z=aarv£iH W m �d Uw W'a v: W 2 0 0 a 8 w 8 4_ W W a ommended preventive measures 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 should be incorporated into OCS Orders. 4 21 13. Enforcement Actions Enforcement actions ensure that any incident of noncompliance (INC) with safety and pollution -prevention requirements observed during inspec- tion activities is corrected by the op- erator (ref. Section IX.B.9). To provide objectivity, the appropri- ate notification and mandatory en- forcement action for each INC ob- served is indicated on the Potential Incident of Noncompliance (PING) checklist. Enforcement actions con- sist of (1) written warnings or (2) platform, zone (well), equipment, or pipeline shut-in, depending upon the enforcement action specified. In the case of a written warning, the company representative must certify to the District Supervisor within 7 days that the INC has been corrected and must report on the action taken to preclude recurrence. If an enforce- ment action requires a shut-in, the inspector immediately informs the District Supervisor and describes the situation and the consequences of the shut-in. The District Supervisor then authorizes the prescribed enforce- ment action. If, because of communi- cation problems, the District Super- visor cannot be contacted, the inspec- tor is authorized to take the appro- priate action and to notify the Dis- trict Supervisor as soon as possible. The inspection team leader provides the company representative with a written order to shut-in the zone(s), platform, or other facility after ex- plaining orally the reason for the shubin. When the inspector reports a facility shut-in, the District Super- visor notifies the company of the action, in writing, instructing them not to resume operations until the field site has been reinspected. The well, item of equipment, or facility cannot resume operation until the INC is corrected and the company has received clearance from the Dis- trict Supervisor to resume opera- tions. In the event an inspector must halt drilling operations on a well, the Dis- trict Supervisor notifies the company in writing. However, in order to minimize the dangers of maintaining an open hole, the inspector remains at the drilling site or returns to it as soon as the INC has been corrected to reinspect and obtain the certifica- tion of compliance from the company. All enforcement actions taken during a, specified month and the cumulative actions taken during the current cal- endar year are summarized in a monthly field report. Enforcement actions which are out of the ordinary, have wide impact, or result from a suspected knowing and willful violation of rules or regula- tions, are reported to the Director upon accumulation of accurate infor- mation in accordance with estab- lished procedures. 14. Training and Qualification of Lessee Personnel An important factor in ensuring that offshore oil and gas operations are carried out in a manner which em- phasizes safety of operations and minimizes the risk of environmental damage is the lessee's employment of qualified personnel to perform such operations. Lessees are required by OCS Orders to provide documenta- tion verifying that key operational personnel have completed instruc- tional programs in critical elements related to job performance and peri- odically attend refresher courses in these subject areas. The procedure for assuring that key operational personnel of lessees or contractors employed by the lessee are properly trained consists of the following steps: a. Identification of those critical op- erations requiring specially train- ed and qualified personnel in order to assure use of safe and pollution -preventive procedures. b. Publication of Geological Survey Standards detailing the positions 22 requiring specially trained or qualified personnel, and detailing the criteria to be met by lessee personnel in satisfying these re- quirements. c. Geological Survey approval on a recurrent basis of courses offered by educational or training insti- tutions which are to be used by the lessee or contractor personnel to meet the Geological Survey training and qualification re- quirements. Courses conducted by industry trade groups for the purpose of qualifying personnel under Geological Survey stand- ards must also be approved be- fore such training is recognized as acceptable. d. Lessee submittal of the methods for assuring that personnel per- forming key drilling and produc- tion operations are qualified in accordance with applicable Geo- logical Survey Standards as a part of operational plans. The documentation of individual qual- ification is to be available at the work site for review by Geologi- cal Survey inspection personnel. Adequate personnel qualification programs are prerequisite for ap- proval of certain operational plans. 15. Training of Geological Survey Per- sonnel Those Geological Survey personnel involved in the OCS lease regulatory program receive needed training through utilization of Government, public, and private institutions as well as short courses designed speci- fically for Geological Survey person- nel by private technical educators. Those personnel involved in field in- spection activities also receive ex- tensive training in the operational concepts of new equipment used in offshore oil and gas operations from in-house instructors and manufac- turers' field representatives. Em- ployee training within the Geologi- i The Branch of Marine Oil and Gas Op- personnel meets monthly to review and erations develops policy proposals for the make recommendations on matters per - Chief, Conservation Division, through taining to safety and pollution preven- the Assistant Division Chief, Operations, tion on OCS oil and gas leases, such as on matters related to OCS oil and gas ac- accidents, unusual conditions, equipment tivities. The Branch also provides techni- failures, inspection results, the adequacy cal guidance to OCS field offices, coordi- of OCS Orders, and research and develop- nates activities related to OCS programs, ment needs. Reports of each meeting are and provides direction and review of pro- prepared. t gram activities. (See Figure 1 entitled C. Response Teams Under National Oil and "OCS Lease Regulatory Program Organi- Hazardous Substance Pollution Contin- zational Responsibilities.") gency Plan (Title .40 CPR 1510) VII. Committees, Boards, and Teams 1. National Response Team (NRT) The National Response Team con - Several key committees, boards, and teams, representatives from Federal both w 'within and outside the Geological Sur- gencies serving as a national body agencies a C vey, have major roles affecting the OCS lease for planning and preparedness ac- regulatory program. The composition and tions prior to a pollution emergency. y. t functions of these groups are described Except for periods of activation be - herein. cause of a pollution incident, the A. Marine Board of the Assembly of Engi- NRT meets quarterly with the rep- neering, National Research Council resentative of the Environmental The Marine Board is concerned, in an en- Protection Agency (EPA) serving as gineering sense, with the utilization of chairman and the representative of ocean resources in accordance with the the Department of Transportation statutory responsibilities of the Govern- (DOT) serving as. Vice -Chairman. ment, and advises the Government as to When the NRT is activated in re - the technology employed to accomplish sponse to a pollution incident, the this goal. Chairman is the representative of The Marine Board, either upon request EPA or DOT, depending upon the of the Geological Survey or upon its own area in which the response is taking initiative, reviews Geological Survey pro- Place. Geological Survey personnel grams and makes recommendations on In - serve as Department the In - new proposals concerning safety and poI- terimay representatives when v lution prevention. ed by- appointed by the Secretary upon rec- appointed The Marine Board meets three times each ommendation of the Director, Geo- year. In conjunction with the regular logical Survey. meetings, a special session may discuss 2. Regional Response Team (RRT) or review the OCS lease regulatory pro- As set forth in regional contingency gram administered by the Geological Sur- plans, the RRT consists of regional vey. The Marine Board may convene a representatives from Federal Agen- subcommittee to study particular prob- ties to act within a regionas an emer- lems or programs. The Chief, Branch of gency response team performing ! Marine Oil and Gas Operations, serves as functions similar to those described liaison with the Marine Board. Q for the national level. The RRT de- termines the duration and extent of B. Area Systems Review Committees Federal response. Geological Survey In each Area office involved in OCS field personnel may be appointed as De - operations, an Area Systems Review partment of the Interior representa- Committee (ASRC) composed of key field tives on the RRT. 3 0 • • • • • • • bility under 30 CFR 250.12 to "prevent dam- ploration and production in the marine cal Survey is founded upon determin- ity, complementing other such audits age to, or waste of, any natural resource or environment. ing the skills needed by Geological by departmental, congressional, or injury to life or property." Lessees have a like E. Encourage and support safety and pol- Survey personnel to perform their other authorized organizations. responsibility as set forth in the regulations lution-prevention programs for maintain- duties most effectively and scheduling Internal program audits have several at 30 CFR 250.30. ing among all personnel involved in OCS employee attendance in any training goals: Following several accidents involving OCS on on and gas operations an awareness of the (Government, public, or private) a. to aid personnel in improving and gas operations which resulted in loss of need for safety and pollution prevention. which best meets the mutual needs of program effectiveness and to life and property and pollution, the Geological the individual and the Geological Sur- provide training to personnel Survey's OCS lease regulatory program was VI. Organizational Responsibilities, Geological vey. If no existing training courses being audited as well as those extensively reviewed. Initial studies by Geo- Survey fully meet these needs owing to ad- conducting the audit; logical Survey systems analysts and by the A. Office of the Director vanes in OCS technology and b. to ensure that assigned program NatNational Aeronautics and Space Administra- 1. The Director is responsible for estab- L changes in program activities, efforts activity is in accordance with NASA (NASA) produced several recommenda- lishing the overall safety, pollution- are made develop the needed train- written procedures and guide- tions for program improvement. Additional Prevention and pollution -control pol- n ing utilizing internal expertise or by lines; recommendations came from studies by the icy, and for providing management contracting for services. c. to ensure that committed man - National Academy of Engineering, the Uni- direction and interdivision support The Geological Survey's training pro - power and other resources are versity of Oklahoma, the President's Council of the lease regulatory program. gram continually uses on-the-job sufficient to accomplish program on Environmental Quality (CEQ) and the 2. The Director's Work Group on OCS training techniques. Through this a q P- objectives, and National Research Council Review Committee Safety and Pollution Control , of proach, employees are instructed by d. to ensure that administrative on Safety of Outer Continental Shelf Petro- which the Associate Director is Geological Survey specialists and are s procedures are appropriate. leum Operations. All recommendations were is responsible for: exchanged among area, regional, and Audit teams are composed of person - P P carefully carefully considered and incorporated into the a. Reviewing safety and pollution- headquarters offices for temporary nel from headquarters and from field q Geological Surveylease regulatory g ry program prevention policy. details or assignment to special audit offices other than the one being as appropriate. b. Participating in the determina- the These activities provide teams. p audited. Personnel from other divi- tion of the need for assistance in employee with a broad knowledge of sions and the Director's office may V. Objectives safety and pollution -prevention the functions of the Geological Sur- artici ate as team members. also participate In working toward safety and environmental matters from non -Geological Sur- vey. Audits may encompass all, or selected protection in oil and gas exploration and de- vey sources. 16. Safety and Pollution -Prevention portions of, the activities of the or- velopment on the Outer Continental Shelf, the e. Evaluating recommendations re- Awareness ganizational element being audited. Geological Survey's objectives are: ceived from external agencies, Lessees and operators are encouraged Scheduling is arranged so each facet A. Prevent loss of life and property, injury organizations, or individuals. by the Geological Survey to conduct of the nationwide program is audited of personnel, damage to the environment, d. Reviewing annually Geological internal motivation programs to as- at least every 3 years. Upon comple- and waste of resources by means of an Survey actions and progress to- sure that employees performing op- tion of an audit, the team reviews its organized and systematic approach to the wards pre -established goals. erations on the Outer Continental preliminary findings with personnel regulation of oil and gas lease and pre- e. Providing reports and recommen- Shelf are continually aware of the of the field office being audited prior lease activities. dations on the OCS lease regula- need for, and dedicated to the to compiling and presenting its final tory program to the Director. achievement of, safety and preven- report and recommendations to the B. Coordinate and cooperate with other Fed- 3. An Assistant Director in each of the tion of pollution. Division Chief for concurrence and eral and State Agencies; technical, pro- regional areas defined for Geological The Safety Officer in each area office initiation of any corrective and pre- fessional, standards -setting, and other Survey administrative purposes pro- is designated as the Safety and Pol- ventive action. organizations; and the general public in vides coordination for interdivision lution-Prevention Awareness coor- Overall audit status and results are establishing requirements for conducting Geological Survey activities within dinator for that area office and co- incorporated into the Conservation safe drilling and production operations. the Region, and provides liaison with ordinates both internal awareness Division Management Information C. Ensure industry compliance with regula- other Federal, State, and local agen- activities and industry or other Gov- System (MIS) for use by Division tions, safe practices, and environmental ties. ernment organizations' programs. management and, as appropriate, the protection through the development and B. Conservation Division 17. Program Audit Director's office in the program de- enforcement of stringent requirements. The Conservation Division, through Re- _ The internal audit of the functions cision-making process. D. Maintain a research and development gional Conservation Managers, Area Su- described in this document is per -X. Management Information and Review R&D capability for improving the ( ) P tY P g pervisors, and District Supervisors, is the formed at the field level to verify op - safety and pollution -prevention equip- primary Division responsible for the Geo- erational status and effectiveness. A management information and review sys- ment and for improving operational logical Survey's lease regulatory program This audit is part of the overall Geo- tem provides appropriate Geological Survey techniques involved in on and gas ex- in accordance with this document. logical Survey internal audit activ- management with reliable, current informa- 1 23 i • 0 • 19 tion on OCS field level activities so as to avoid crisis -response management. The proper utili- zation of this information by the various levels of Geological Survey management in the decisionmaking process is the key element in the program for increased safety and pol- lution -prevention activities on the OCS. The procedures for data gathering and analysis described below are a part of the overall Con- servation Division Management Information System, and the review procedure allows the addition or deletion of data based upon later evaluation of usefulness. A. Responsibilities for Data Reporting The Geological Survey personnel respon- sible for the proper development and analysis of the information related to this review procedure and their respective data -gathering responsibilities are as fol- lows: 1. District Supervisors are responsible for gathering, maintaining, and re- porting statistics and narratives on problems related to inspection proce- dures and results and field activities including incidents of noncompliance (INC's), incidents of pollution, well shut-ins, helicopter operations, and similar operational incidents. 2. Area Supervisors are responsible for reviewing and analyzing District re- ports and statistics as well as man- agerial information such as workload analyses, training, and personnel safety. Area Supervisors are also re- sponsible for identifying trends and problem areas by analyzing data ac- cumulated through the inspection and plan approval actions. 3. Regional Managers are responsible for summarizing, analyzing, and re- porting statistics and narratives con- cerning all activities reported on by Area and District offices within the Region. In addition, overall opera- tional problems are identified as well as specialized problems related to in- dustry safety and pollution -preven- tion activities. 4. The Office of the Chief, Conservation Division, gathers and analyzes re- 24 ports of all District, Area, and Re- gional offices and identifies national trends in offshore safety and pollu- tion prevention. In addition, the office coordinates overall programs for the development of information and gen- eral problem solving as well as man- agerial programs such as the train- ing of personnel. B. Frequency of Reports and Review 1. District Supervisors report statistics and narratives monthly to Area Su- pervisors. 2. Area Supervisors summarize statis- tics and report them along with nar- ratives bimonthly to Regional Man- agers (with copy to headquarters). 3. Regional Managers review Area and District activities and write semian- nual summaries of activities. These reviews may be held either by per- sonal contact or by teleconference. 4. The Chief, Conservation Division, reviews the Regional Managers' re- ports at quarterly Division Manage- ment Conferences. Additional Divi- sion level reviews are made of the re- ports submitted by the Area offices to the appropriate Regional offices and discussion via teleconference with Regional Conservation Man- agers of any immediate concern or actions necessary. 5. The Director and Work Group are briefed annually by the Chief, Con- servation Division, on significant trends related to the safety or pollu- tion aspect of offshore operations as well as other major events. C. Facilities There are data display centers in Head- quarters and Regional offices to present pertinent data on oil and gas activities on the Outer Continental Shelf. ICI. Program Review This program description document is up- dated through periodic reviews of the lease regulatory program by a System Review Com- UNITED STATES GEOLOGICAL, SURVEY POLICIES, PRACTICES, AND RESPONSIBILITIES FOR SAFETY l AND ENVIRONMENTAL PROTECTION IN OIL AND GAS OPERATIONS ON THE OUTER CONTINENTAL SHELF 1 y 1 r> INTRODUCTION The Outer Continental Shelf Lands Act of 1953 designated the United States Department of the In- terior to administer the mineral leasing of the off- shore areas of the United States under Federal juris- diction. Within the Department, the United States Geological Survey was delegated the authority to regulate mineral operations on the Outer Continental Shelf (OCS). This document sets forth the overall policies, practices, and responsibilities of the Geological Sur- vey to ensure oil and gas operations on the Outer Continental Shelf are conducted safely. The prac- tices and concepts stated herein are the basis for developing, revising, and carrying out detailed pro- cedures, plans, and other actions required for an effective regulatory program on the Outer Continen- tal Shelf. The functional elements described in this docu- ment contain provisions which are carried out on a nationwide basis or area basis in accordance with the requirements of the particular functional ele- ment. Those provisions requiring execution on an area -by -area basis are carried out in accordance with the stage of evolvement of each OCS Area. Thus, some elements may be completely functional in the Gulf of Mexico Area but may not be applicable in the OCS areas recently leased. Periodic reviews of this program, as set forth in Section %I of this docu- ment, provide for implementing the provisions of the functional elements in each area as the opera- tional activities warrant. L Purpose The purpose of this document is to set forth the policies, practices, and organizational re- sponsibilities of the Geological Survey to as- sure that operations under Federal oil and gas leases and permits on the Outer Continental Shelf emphasize safety of operations, preven- 1 tion of pollution, protection of life and prop- erty, and minimize the risk of environmental damage. H. Authority Basic authority for carrying out regulatory functions on Outer Continental Shelf leases is provided by: A. "Outer Continental Shelf Lands Act" of August 7, 1953 (67 Stat. 462; 43 U.S.C. 1331-1343). B. The National Environmental Policy Act of 1969, as amended (Pub. L. 91 190, 42 U.S.C., 4321-4347, January 1, 1970, as amended by Pub. L. 94-83, August 9, 1975). C. The Coastal Zone Management Act of 1972, as amended (Pub. L. 89-454, 16 U.S.C., 1451-1464 as amended by Pub. L. 94-370, July 26, 1976). D. Title 30 CFR 250, "Oil and Gas and Sul- phur Operations_ in the Outer Continental Shelf." ILL Scope The provisions of this program encompass all Geological Survey personnel and operations concerned with the safety and pollution -pre- vention aspects of oil and gas operations on the Outer Continental Shelf. IV. Background The Geological Survey is the Bureau within the Department of the Interior to which the Secretary delegated authority to administer the provisions of the Federal regulations per- taining to oil and gas operations on the Outer Continental Shelf (30 CFR Part 250). In- cluded in these regulations is the responsi- i 0 • • • • pace pace mittee (SRC) concerned with safety and pol- 11. Pollution Surveillance and Cleanup .. 20 16. Safety and Pollution -Prevention Aware- lution-prevention on the Outer Continental 12. Accident Investigation and Reporting. 20 ness ................................. 17. Program Audit ...................... 23 23 Shelf. The SRC for Conservation Division 13. Enforcement Actions ................. 21 X. Management Information and Review ....... 23 programs comprises the Associate Division 14. Training and Qualification of Lessee A. Responsibilityor Data Reporting fDtRp g """ 24 Chief as chairman; Assistant Division Chief, Personnel """""""""""""' 22 B. Frequency of Reports and Review ........ 24 Operations; Chief, Branch Marine Oil and 15. Training of Geological Survey Person- C. Facilities ................................ 24 e Gas Operations; and representatives each nel .................................. 22 %I. Program Review ........................... . 24 Region having OCS responsibilities. The SRC for the Conservation Division meets annually or more frequently as requested by the Com- mittee Chairman, or Division or Bureau Man- agement. The SRC reviews reports of the V Area System Review Committees and Internal 25 u Audit Teams as well as any other internal or external factors which may affect the OCS Operations Safety Program. After each meeting, the SRC makes recom- mendations concerning modifications of the lease regulatory program and this document. The Chief, Conservation Division, and the Di- rector's Work Group on Safety and Pollution - Control review these recommendations and refer recommendations to the Director as nec- essary. Following the Director's approval, program documents are modified and any nec- essary implementing action is begun. I CONTENTS Pose Page Introduction ........................................ I and the Geological Survey for Outer I. Purpose ..................................... 1 Continental Shelf Pipelines .......... 8 H. Authority ................................... 1 4. Memorandum of Understanding Be. III. Scope ....................................... 1 tween the Department of Transporta- IV. Background I tion (DOT) and the Department of the V. Objectives „ ............. ..................... 2 Interior (DOI) Regarding Offshore VI. Organizational Responsibilities, Geological Pipelines 8 Survey ................ 2 C. Other Agreements ....................... 8 VIL Committees, Boards, and Teams .............. 3 I%. Management Principles and Functional Ele- A. Marine Board of the Assembly of Engi- meats ....................................... 8 neering, National Research Council ...... 3 A. Management Principles .................. 9 B. Area Systems Review Committees ....... 3 B. Functional Elements ..................... 9 C. Response Teams Under National Oil and 1. Pre- and Post -Lease Information De - Hazardous Substance Pollution Contin- velopment and Evaluation ............ 9 gency Plan Title 40 CFR 1510-........ ( ) 3 a Pre -lease ......................... 9 1. National Response Team (NRT) ..... 3 b. Post -lease ....................... 10 2. Regional Response Team (RRT) ..... 3 2. Research and Development .......... 10 D. National Offshore Operations Industry Ad- 3. OCS Standards ...................... 10 visory Committee (NOOIAC), U.S. Coast 4. Operational Directives for Lessee Com- j Guard, Department of Transportation. .. 6 plisnce .............................. 11 E. Technical Pipeline Safety Standards, a. OCS Orders ............. 11 Committee, Office of Pipeline Safety Op- b. Notices to Lessees and Operators 12 erations (OPSO), Materials Transporta- c. Field Drilling Rules............. 12 tion Bureau, Department of Transporta- d. Conditions of Approval .......... 12 lion..................................... b e. Other Directives ................. 13 F. National Transportation Safety Board 6. Review of Plans and Applications .... 13 (NTSB)............................... 6 xP ry � g a Exploratory Drilling Plan 13 G. CoastaI Zone Management Liaison Group 6 b. Development Plan ............... 14 H_ Outer Continental Shelf Advisory Board .. 6 c. Oil Spill Contingency Plan ....... 14 I, Outer Continental Shelf Environmental d. Critical Operations and Curtail - Studies Advisory Committee meat Plan 14 J. Interagency Committee for Program Program Co-6 Plan for S ulta e. Contingency Plan for Simultaneous ordination, Bureau of Land Management- Operations ..... 14 Geological Survey ....................... 6 L Drilling Application ............. 16 K- Interagency Committee for Program Co- g- Sundry Notice Application -...... 15 ordination, -oa, National Oceanic and Atmos- h. Secondary Recovery Plan ...... I. is pheric Administration -Geological Survey .. 6 i. Applications to Abandon Well .... 16 VIH. Other Coordination Mechanisms ............. 7 6. Systems Design Analysis ............. 16 A. Secretarial Order No. 2974 ............. B. Memoranda of Understanding ............ 7 7 7, Platform Design, Construction Verifi- I. Memorandum of Understanding Be- cation, and Approval ................. 16 i. tween the Departments of the Interior g, pipeline Approval and Inspection ..... 16 and Transportation Concerning Respec- 9. Drilling and Production Compliance In- tive Responsibilities Under the Nation- spection............................. 17 al Oil and Hazardous Substances Pollu- 10. Equipment Failure Reporting, Anal. tion Contingency Plan ............... 7 ysis and Information Exchange ,..... 18 2- Memorandum of Understanding Be- a. Failure Reporting and Corrective iF tween the Geological Survey, Bureau of Action Program .................. 18 Land Management, and Fish and Wild- b. Safety Alert Program ............ 19 life Service Regarding Exchange of In- c. Events File ...................... 19 « formation Affecting OCS Operations . _ 7 d. Records for Public Information .. 20 3. Memorandum of Understanding Be- e. Information Exchange Among Area tween the Bureau of Land Management Offices ........................... 20 0 • 0 0 0 0 0 it V POLICIES, PRACTICES, AND RESPONSIBILITIES FOR SAFETY AND ENVIRONMENTAL PROTECTION IN OIL AND GAS OPERATIONS ON THE OUTER CONTINENTAL SHELF United States Department of the Interior Geological Survey June , 77 �x f .. 0 W- rwiAh"U09 and. .." �a SEP_- and Environmental Protection 11, Oil and Gas Operations Continental Shelf United States Department of the Interior Geological Survey June 1977 L on the