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Alaska OCS Region

National Oceanic and Atmospheric Administration Bureau of Ocean Energy Management

Bureau of Safety and Environmental Enforcement

Workshop February 23-24, 2012 Anchorage, Alaska

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The Bureau of Ocean Energy Management manages the exploration and development of the nation's offshore resources - balances economic development, energy independence, and environmental protection. • Assesses the oil, gas, and other minerals potential

of the OCS; inventories oil and gas reserves; develops development projections; conducts economic evaluations to ensure the receipt of fair market value for OCS leases.

• Conducts oil and gas lease sales • Reviews and permits offshore exploration/

development plans and seismic surveys • Develops environmental reviews, including National

Environmental Policy Act (NEPA) analyses and consultations.

• Conducts and/or funds environmental studies to inform environmental reviews and bureau decisions.

• Manages offshore renewable energy programs. • Maintains three regional offices: New Orleans, LA.;

Camarillo, CA.; and Anchorage, AK.

The Bureau of Safety and Environmental Enforcement works to promote safety, protect the environment, and conserve resources offshore - regulatory oversight and enforcement. • Develops standards and regulations for OCS exploration

and development activities. • Develops standards and guidelines for Oil Spill

Response Plans. • Provides sustained regulatory oversight focused on

operators’ compliance with applicable safety and environmental regulations.

• Reviews and approves Applications for Permit to Drill. • Conducts inspections of OCS drilling rigs and

production platforms. • Conducts oil spill response drills with operators. • Operates the National Training Center for inspectors. • Operates Ohmsett, the National Oil Spill Response

Research and Renewable Energy Test Facility.

Two Independent Agencies

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Organization Investigations & Review Unit

Michael Farber

Office of Budget & Program Coordination

James Anderson

Office of Policy, Regulation and Analysis

*Charles Norfleet

Office of Congressional Affairs Lyn Herdt

Office of Public Affairs Caren Madsen

Deputy Director, CFO Walter Cruickshank

Office of the Director Tommy Beaudreau

Environmental Assessment

James F. Bennett

Environmental Sciences

Rodney Cluck

Environment Branch

Michelle Morin

Project & Coordination Darryl Francois

Environment Joseph Christopher

Leasing & Plans Robert Sebastian

Resource Evaluation David Cooke

Office of Environmental Programs

Alan Thornhill

Office of Renewable Energy Programs Maureen Bornholdt

Environment Sharon Warren

Leasing & Plans David Johnston

Resource Evaluation Rance Wall

Alaska OCS Regional Director

Jim Kendall

Environment Vacant

Strategic Resources Joan Barminski

Pacific OCS Regional Director

Ellen Aronson

Office of Strategic Resources Renee Orr

Mapping & Boundary Br.

Doug Vandegraft

Sales Coordination Br. *Terry Scholten

Leasing Division *Steve Textoris

Economics Division Marshall Rose

Resource Evaluation Division

Harold Syms

Gulf of Mexico OCS Regional Director

John Rodi

* Acting

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Responsibilities of Alaska Region

• Regional Directorate

• Office of Environment

• Office of Leasing and Plans

• Office of Resource Evaluation

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Responsibilities of Alaska Region

Office of Environment

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Office of Environment

• Office of Environment Developing and disseminating environmental science through procurement and

coordination of Environmental Studies.

Performing National Environmental Policy Act (NEPA) assessment for proposed OCS activities.

Consulting with affected Tribes on proposed actions.

Consulting with Federal and State agencies pursuant to Endangered Species Act, National Historic Preservation Act, Magnuson-Stevens Fishery Conservation and Management Act, etc.

Cooperating agency and collaborating with other Federal Agencies for evaluation and mitigation of environmental effects on resources.

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National Environmental Policy Act

Environmental Laws

Federal Water Pollution Control Act (Clean Water Act)

Clean Air Act

Coastal Zone Management Act

Endangered Species Act

Marine Mammal Protection Act

Magnuson-Stevens Fishery Conservation & Management Act

National Historic Preservation Act

Environmental analysis and protection in project planning

Regulates discharges from oil & gas activities into marine waters

Regulates air emissions from industrial activities

Assures compliance with state coastal area protection plans (Alaska does not have CMP) Protects threatened & endangered Species and related critical habitats

Protects marine mammals

Protects essential fish habitat

Protects historic sites and cultural/ archaeological resources, including those on the ocean floor

OCS Lands Act/Oil Pollution Act Regulates prelease & post-lease oil and gas activities on the OCS

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Applied Science for Informed Decisions

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Environmental Studies Program

• Alaska Region: $375M and more than 500 reports since 1973

• Long-term monitoring of marine mammals, benthos, sediments

• Integration of physical, biological, and subsistence use studies

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Using Science in NEPA Assessments and

Consultations Pursuant to Federal Laws

Using Science

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NEPA and Consultations Our obligations under NEPA are accomplished through Environmental Assessments (EA) or Environmental Impact Statements (EIS) that consider the best available scientific information to inform the decision maker of the potential environmental and socioeconomic risks and benefits of proposed OCS activities in support of offshore energy development.

• Agency Actions – lease sales (the 5-Year OCS Leasing Program EIS is managed at the Headquarters Environmental Division level of BOEM with regional participation) and programmatic evaluations.

• Industry Actions –

- Off-lease Activities. Applications to the Office of Resource Evaluation for Geological and Geophysical permits to conduct prelease and postlease exploration seismic surveys or geologic investigations.

- On-lease Activities. Lessees/operators requesting Office of Leasing and Plans approval to explore or develop OCS resources (ancillary activities, exploration plans, development and production plans). (Applications for Permit to Drill and Oil Spill Response Plans are under BSEE’s jurisdiction.)

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NEPA and Consultations • Consultation with potentially affected Tribes on proposed agency actions or

actions proposed by applicants. Consultations may be in person in the villages or by teleconference.

• The Region consults with resource agencies pursuant to Federal laws: – Endangered Species Act evaluation and consultation with the National Marine Fisheries

Service and U.S. Fish and Wildlife Service;

– Essential Fish Habitat assessment and consultation with National Marine Fisheries Service;

– National Historic Preservation Act consultation with Alaska State Historic Preservation Officer; and

– Other consultation documents, as appropriate.

• The Region serves as a cooperating agency with the following agencies: – Bureau of Land Management: National Petroleum Reserve-Alaska EIS

– National Marine Fisheries Service: EIS on the Effects of Oil and Gas Activities in the Arctic Ocean (seismic surveys and exploratory drilling activities)

• The Region has had cooperating agency agreements with: – U.S. Army Corps of Engineers, State of Alaska, North Slope Borough, Aleutians East

Borough, and others.

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Responsibilities of Alaska Region

Office of Leasing and Plans

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Leasing and Plans • Leasing Section

– Implements the 5-Year OCS Leasing Programs within the Alaska OCS Region.

– Ensures that OCSLA requirements and procedures are followed in the preparation and conduct of sales.

– Works closely with Office of Environment and Office of Resource Evaluation to develop appropriate lease stipulations and terms of sale to help ensure expeditious and orderly development, subject to environmental safeguards.

– Adjudicates bids and issues leases to the highest responsible qualified bidder(s) after completion of fair market value review.

• Plans Section

– Manages Ancillary Activities, Exploration Plans, and Development and Production Plans within the Alaska OCS Region.

– Ensures that compliance with lease mitigation and terms of the sale are incorporated by industry in proposals to explore for or develop oil and gas resources offshore of Alaska.

– Fosters collaboration and effective communication with other Federal, State, and local agencies to ensure environmentally sound and safe OCS activities.

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OCS Oil and Gas Development Process

Exploration

Lease Sale

Production

Decommissioning

Five Year Program

Geographic Scope

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Solicit Comments

45-day Comment Period

Draft Proposed Program Published

60-Day Comment Period

Proposed Program Draft EIS Published

90-Day Comment Period

Proposed Final Program Final EIS

60-Day Period with Congress

5-Year Program Announced

The OCS Leasing, Exploration, & Development Process

Call for Information Published

45-day Comment Period

Define Sale Area

Draft EIS Distributed

60 to 90-Day Comment Period

Final EIS Published Proposed NOS to Governors

30-Day Comment Period

90-Day Comment Period

Final Notice of Sale

30-Day Period

Leases Issued

Sale

Prelease Develop 5-Year Program

Planning for Specific Sale

Exploration Plan (deemed submitted)

Environmental Assessment

Exploration Plan Decision

Permits From Other Agencies

Exploration Drilling

Delineation Drilling

Post Lease – Alaska* Exploration Plan

Development and Production Plan

Environmental Review

Draft EIS Published

90-Day Comment Period

Final EIS Published

Development and Production Plan Decision

Production Well Application

First Oil/Gas Production

Abbreviations: APD, Application for Permit to Drill; EIS, Environmental Impact Statement. *CZM review N/A in Alaska

Development & Production Plan

APD Approved

10-Day comment Period

OCSLA within 30-days

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Alaska OCS Leases

Liberty

Northstar

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Ancillary Activities are authorized to ensure operational safety and protection of natural resources. Types of investigations conducted as an ancillary activity:

• Faults & fault scarps • Shallow gas pockets • Gas hydrates • Buried channels • Current & strudel scour • Migrating bedforms • Ice gouging • Permafrost

• Unstable soil conditions • Steep-walled canyons • Archaeological assessment • Biological assessment • Pipelines • Man-made debris • Shipwrecks

Ancillary Activities

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Exploration Plans – Chukchi Sea

Burger Prospect - Shell Gulf of Mexico • Multi-year program • Six exploration wells planned using the drillship Discoverer. • Drill sites located ~ 78 miles northwest of Wainwright. • Water depths ~ 140-150 feet. • BOEM approved, with conditions, Shell’s Exploration Plan on Dec. 16, 2011. • Two Petitions filed (Feb. 10, and Feb. 13, 2012) with the U.S. Court of

Appeals for the Ninth Circuit. Oral arguments are scheduled for Apr. 2, 2012 in Pasadena, CA.

Devils Paw Prospect – ConocoPhillips • BOEM has not yet received the Exploration Plan to take action. • Two exploration wells proposed using a jack-up rig. • Drill sites ~ 120 miles west of Wainwright. • Water depths ~ 140 feet.

Burger

Devils Paw

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Exploration Plan- Beaufort Sea

Camden Bay - Shell Offshore Inc. • Four exploration wells planned using the conical

drilling unit (CDU) Kulluk – 2 wells to test the Sivulliq prospect – 2 wells to test the Torpedo prospect

• Drill sites located ~ 16-23 miles north of Point Thomson, near Camden Bay .

• Water depths ~ 110-125 feet.

• BOEM approved, with conditions, Shell’s Exploration Plan on Aug. 4, 2011.

• Two petitions were filed (Sept. 29, 2011 and Oct. 3, 2011) with the U.S. Court of Appeals for the 9th Circuit. Arguments before the court are to be heard Apr. 2, 2012, in Pasadena, CA.

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Five-Year Outer Continental Shelf (OCS) Oil and Gas Leasing Program

2012-2017

DRAFT Programmatic Environmental Impact

Statement (PEIS)

Five-Year OCS Oil and Gas Leasing Program

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2012-2017 OCS Oil and Gas Program Proposed Sales

Gulf of Mexico: Twelve Sales Five annual sales in Central Gulf Five annual sales in Western Gulf Two sales in small area of Eastern Gulf

Offshore Alaska: Up to Three Sales One sale in Beaufort Sea in 2015 One sale in Chukchi Sea in 2016 One special interest sale in Cook Inlet

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2012-2017 OCS Proposed Program

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2012-2017 OCS Proposed Program Cook Inlet Planning Area

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Responsibility of Alaska Region

Office of Resource Evaluation

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Resource Evaluation

Overview of Resource Evaluation Activities • Pre-Sale

– Geological and Geophysical (G&G) permits and data – Oil & Gas resource assessments – Exploration and development scenarios for EISs

• Sale – Tract Specific Evaluations

• Post Sale – Analyses for Future Sales

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Resource Evaluation

Pre-Sale RE Activities • Geophysical & Geological Permitting and Data Acquisition

(including coordination between operators and environmental compliance components of both BOEM, BSEE, NMFS & USFWS)

• Geologic/Engineering/Economic Assessments

• Environmental Impact Statement Scenarios

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Resource Evaluation

Lease Sale Activities •Geologic Prospect Mapping

•Fair Market Value Determinations

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Resource Evaluation

Post Sale Analyses • Analyses of new wells and other data

• Use new information to revise areas of potential and assessments

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Seismic Survey Activities • Activities peaked

in early 1980’s • 15 Arctic permits

since 1998 • Bering Sea

seismic virtually ended 20 years ago

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Seismic Data example

Seismic Survey Activities

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Questions?

Alaska OCS Region