BOEM s Offshore Energy Leasing Programs

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1 Bureau of Ocean Energy Management BOEM s Offshore Energy Leasing Programs North Carolina Beach Inlet & Waterway Association Annual Conference November 13, 2017

2 BOEM s Mission The Mission of the Bureau of Ocean Energy Management is to manage development of U.S. Outer Continental Shelf energy and mineral resources in an environmentally and economically responsible way. 2

3 3 BOEM s Program Areas

4 4 OCS Oil and Gas Planning Areas

5 OCS Oil and Gas Leases Companies bid to lease the rights to explore, develop, and produce oil and gas in individual blocks within a Program Area. Block areas are up to 3x3 miles (5760 acres) 5

6 Outer Continental Shelf Lands Act OCSLA s Congressional Declaration of Policy provides: the outer Continental Shelf is a vital national resource reserve held by the Federal Government for the public, which should be made available for expeditious and orderly development, subject to environmental safeguards, in a manner which is consistent with the maintenance of competition and other national needs Section 18 of OCSLA includes the factors the Secretary must consider when deciding on the timing and location of leasing: Existing information concerning the geographical, geological, and ecological characteristics; An equitable sharing of developmental benefits and environmental risks; Regional and national energy markets; Other uses of the sea and seabed; Interest of potential oil and gas producers; Laws, goals, and policies of affected States; Environmental sensitivity and marine productivity; and Environmental and predictive information 6

7 Pre-lease National OCS Oil and Gas Leasing Program Joint BOEM/BSEE Responsibility BOEM Responsibility Request For Information Call for Information Published Post-Lease Exploration Plan Submitted Development & Production Plan Submitted 45-day Comment 30-Day Comment NEPA Analysis (EA) Company Submits CZM Consistency Certification Planning for Specific Oil and Gas Lease Sale Define Sale Area 45-Day Comment Exploration Plan Review CD Sent to States 60-Day Comment 90-Day Review APD Decision Permits Granted Final Notice of Sale Published Oil and Gas Exploration Plan Approval BOEM Prepares NEPA Analysis Proposed Notice NEPA Review, CZMA and Other Environmental Consultations, and Government-to-Government Consultations G2G Consultations Draft Proposed Program and NOI for PEIS Published State CZM Review 60-Day Comment Exploration Drilling Starts Oil and Gas Development and Production Plan Approval G2G Consultations Proposed Program and Draft PEIS Published 90-Day Comment Proposed Final Program and Final PEIS Published CZM Consistency Concurrence from State Then Development and Production Plan Decision 60-Day for the President and Congress 30-Day Sale Held First Exploration Well(s) Completed Production Well Application Program Approved and ROD Published Fair Market Value Analysis Leases Issued Delineation Well Drilling First Oil/Gas Production Key: APD = Application for Permit to Drill; BOEM = Bureau of Ocean Energy Management; BSEE = Bureau of Safety and Environmental Enforcement; CD = Consistency Determination; CZM = Coastal Zone Management; EA = environmental assessment; EIS = environmental impact statement; G2G = government to government; NEPA = National Environmental Policy Act; NOI = Notice of Intent; OCS = Outer Continental Shelf; PEIS = programmatic environmental impact statement; ROD = Record of Decision.

8 Example of Activities and Timeline for a Deepwater Offshore Project Year 1 Years 2-5 Years 6-10 Years Year 16 onwards Lease Sale Geophysical and Data Acquisition and Analysis Exploratory and Development Drilling Design, fabrication and installation First Oil Production The lifecycle of OCS oil and gas activities is a lengthy process consisting of various phases BOEM coordinates closely with our state partners throughout this process (e.g., CZMA consultations) Once production begins, it may continue for several decades The timing of the activities varies by region 8

9 Resource Atlantic Conventional Energy Resource Potential Oil and gas resource assessments are a critical component of energy policy analysis o Provide Secretary with information on the geological characteristics of OCS regions, a required consideration under OCSLA Uncertainty in frontier areas necessitates risked analysis 9

10 BOEM regulates OCS renewable energy development activities Primary industry interest has been in pursuing offshore wind development Activities ongoing in the Atlantic and Pacific Mandates include: Ensuring activities are conducted in a safe and environmentally-responsible manner Receipt of fair return to the Nation Coordination with intergovernmental partners Consideration of other ocean users Equitable sharing of revenues 10 BOEM s Renewable Energy Leasing Program

11 Commercial Wind Lease OCS-A 0508 NC Slide 11

12 BOEM s Marine Minerals Program BOEM partners with communities to address erosion along the Nation s coastal beaches, dunes, barrier islands, and wetlands through its Marine Minerals Program BOEM s MMP leases sand, gravel and shell resources on the OCS for shore protection, beach nourishment, and wetlands restoration, and ensures activities take place in a safe and environmentally-responsible manner and in consideration of other ocean uses 12

13 Questions? Thank you! 13