Coastal Zone Management: Federal Consistency Appeals by Mobile Exploration & Producing Southeast, Inc., From Objections by the State of North Carolina

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

Coastal Zone Management: Federal Consistency Appeals by Mobile

Exploration & Producing Southeast, Inc., From Objections by the State

of North Carolina

AGENCY: National Oceanic and Atmospheric Administration, Department of

Commerce.

ACTION: Notice of decisions.

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SUMMARY: On September 2, 1994, the Secretary of Commerce (Secretary)

issued decisions in two consistency appeals of Mobile Exploration &

Producing Southeast, Inc. (Mobil). Mobil is the operator of Outer

Continental Lease OCS A-0236, an oil and gas lease in federal waters

approximately 39 miles off North Carolina's (State) coast, known as

Manteo Area Block 467 (Block 467). In one decision, the Secretary

declined to override the State's objection to Mobil's proposed drilling

discharges. In a second decision, the Secretary declined to override

the State's objection to Mobil's overall Plan of Exploration (POE).

Mobil submitted its proposed POE for Block 467 to the Minerals

Management Service of the Department of the Interior on August 20,

1990. Mobil proposed drilling one exploratory well to assess

hydrocarbon reserves in an area near ``the Point,'' a biologically

unique area defined by the convergence of the Gulf Stream, slope, and

shelf waters, and containing significant natural resources. The Point

is a prime fishing area for North Carolina fishermen.

Mobil also applied for a National Pollutant Discharge Elimination

System (NPDES) permit required by section 402(a) of the Federal Water

Pollution Control Act, as amended (Clean Water Act), for its drilling

discharge activity. In conjunction with the exploratory drilling, Mobil

proposed the discharge of drilling wastes in accordance with its NPDES

permit application.

Mobil has certified that the POE and drilling discharge activities

are consistent with the State's Coastal Management Program (CMP). The

State objected to Mobil's POE and drilling discharges based upon a lack

of necessary information to assess the consistency of Mobil's

activities. Under sections 307(c)(3) (A) and (B) of the Coastal Zone

Management Act, as amended (CZMA), and 15 CFR 930.121 and 930.122, the

State's objections preclude any Federal agency from issuing any permit

or license for Mobil's proposed activities, unless the Secretary finds

that the activities are either consistent with the objectives or

purposes of the CZMA (Ground I) or necessary in the interest of

national security (Ground II). If the requirements of either Ground I

or Ground II are met, the Secretary must override the State's

objections. In accordance with sections 307(c)(3) (A) and (B) of the

CZMA, Mobil filed with the Secretary two separate appeals: (1) from the

State's objections to Mobil's proposed POE and (2) from the State's

objections to Mobil's proposed drilling discharges. Mobil argued both

Grounds I and II for a Secretarial override in each appeal.

Several threshold issues were raised by Mobil and the State during

the course of both appeals. The decisions determined, in part, that the

State's objections were properly lodged, and that the Secretary will

necessarily determine the adequacy of information for an override

rather than summarily dismiss these appeals.

Upon consideration of the information submitted by Mobil, the State

and interested Federal agencies, the Secretary made the findings

discussed below.

The decisions find that Mobil's proposed activities satisfy the

first element of Ground I because its POE furthers, and its NPDES

permit discharges indirectly further, one of the objectives or purposes

of the CZMA. The CZMA recognizes a national objective in achieving a

greater degree of energy self-sufficiency.

Regarding the second element of Ground I, however, the decisions

find that the proposed exploration and drilling discharge activities

will adversely affect the State's coastal resources and uses. Moreover,

the information in the record of each appeal is insufficient to

adequately identify the extent of the individual and cumulative adverse

effects. Consequently, the decisions conclude that the information in

the record of each appeal is inadequate to determine that the national

interest benefits of Mobil's proposed POE and drilling discharges

outweigh the proposed activities' adverse effects on the State's

coastal resources and uses. Therefore, Mobil's proposed activities do

not satisfy the second element of Ground I.

The decisions find that Mobil's proposed activities satisfy the

third element of Ground I because the proposed exploration and drilling

discharge activities will not violate the Clean Air Act or the Clean

Water Act. The decisions also find that Mobil's proposed activities

satisfy the fourth element of Ground I because there is no reasonable

alternative available to Mobil that would allow the proposed

exploration and drilling discharge activities to be carried out in a

manner consistent with the State's CMP.

Finally, the decisions find that neither Mobil nor any Federal

agency commenting on Ground II specifically identified or explained how

Mobil's inability to proceed with its proposed activities would

significantly impair a national defense or other national security

interest.

Because Mobil's proposed POE and drilling discharge activities fail

to satisfy all four of the requirements of Ground I and do not meet the

requirements of Ground II, the Secretary did not override the State's

objections to Mobil's proposed exploration and drilling discharges.

Consequently, the proposed exploration and drilling discharge

activities may not be permitted by Federal agencies. Copies of the two

decisions may be obtained from the office listed below.

for additional information contact: Roger B. Eckert, Attorney-Adviser,

Office of the Assistant General Counsel for Ocean Services, National

Oceanic and Atmospheric Administration, U.S. Department of Commerce,

1305 East-West Highway, room 6111, Silver Spring, Maryland 20910; 301-

713-2967.

(Federal Domestic Assistance Catalog No. 11.419 Coastal Zone

Management Program Assistance)

Dated: September 16, 1994.

James W. Brennan,

Acting General Counsel.

[FR Doc. 94-23541 Filed 9-22-94; 8:45 am]

BILLING CODE 3510-08-M