# Marine Transportation of Federal Outer Continental Shelf (OCS) Crude Oil Produced Offshore California

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URL: https://www.frixlaw.com/law-library/documents/fr%3A97-31944

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** December 5, 1997
- **Citation:** 62 FR 64399

## Text

DEPARTMENT OF THE INTERIOR

Minerals Management Service

Marine Transportation of Federal Outer Continental Shelf (OCS)
Crude Oil Produced Offshore California

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Proposed Notice to Lessees and Operators (NTL).

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SUMMARY: MMS proposes to issue an NTL concerning information
requirements on marine transportation of OCS crude oil produced
offshore California. MMS recognizes that the State of California and
its localities have concerns about potential impacts on the environment
from the transportation of such oil. The proposed NTL would assist
Federal lessees and operators and State and local governments in
meeting their responsibilities and addressing their concerns in this
area.

DATES: MMS will consider all comments received by February 3, 1997.

ADDRESSES: Mail or hand-carry comments to MMS Pacific Region; 770 Paseo
Camarillo; Camarillo, CA 93010; Attention: E. Aronson. E-mail comments
to [email protected].

FOR FURTHER INFORMATION CONTACT:
Ellen Aronson at 805-389-7511 or e-mail to [email protected].

SUPPLEMENTARY INFORMATION: On June 17, 1996, Deputy Secretary of the
Interior John Garamendi issued a Policy Directive to MMS, which
provides in pertinent part that:
The policies of the State of California and the county of Santa
Barbara prefer that oil and gas production, including offshore
resources, be transported by onshore pipeline, rather than by offshore
tanker, whenever pipelines are economically and technically feasible.
The Minerals Management Service (MMS) regulates activities which
occur within OCS lease boundaries, and generally up to the point of
landfall.
The MMS policies should particularly attempt to ensure that new
and, where appropriate, amended Development and Production Plans
adequately reflect the principle that transportation of OCS crude be
consistent with State and local policies.

Statutory Authority

The Outer Continental Shelf Lands Act (OCSLA), as amended, 43
U.S.C. 1331 et seq., provides the Secretary of the Interior with broad
authority relating to the development and production of mineral
resources of the OCS. The Secretary is required to provide for the
suspension or temporary prohibition of activities if a threat of
serious, irreparable, or immediate harm or damage to the marine,
coastal, or human environment exists. The Secretary may also take
action to cancel a lease if continued activity under it would probably
cause serious harm to such environments and the threat of such harm
will not decrease to an acceptable level in a reasonable period of
time. 43 U.S.C. 1334(a). The Secretary may also disapprove or require
modification of a new Development and Production Plan (DPP) if he
determines that the lessee has failed to make adequate provision in
such plan for safe operations on the lease area or for protection of
the marine, coastal or human environment. 43 U.S.C. 1351(h)(1). To
carry out these responsibilities, MMS must monitor those activities
proximately related to the development and production of oil and gas
resources on the OCS and safeguard against activities that may threaten
the environment.
Through the OCSLA, the Congress has also recognized the OCS
activities may have significant impacts on the States. The OCSLA
emphasizes that State and local governments whose interests are
affected by activities on the OCS are entitled to participate, to the
extent consistent with the national interest, in the policy and
planning decisions made by the Federal Government relating to
exploration for, and development and production of, minerals located in
the OCS. 43 U.S.C. 1332(4)(C). Furthermore, the rights and
responsibilities of all States and, where appropriate, local
governments, to preserve and protect their marine, human, and coastal
environments through such means as regulation of land, air, and water
uses, of safety, and of related development and activity should be
considered and recognized. 43 U.S.C. 1332(5).
MMS performs its statutory responsibilities with respect to
development activities principally through the approval and periodic
review of DPP's. 43 U.S.C. 1351; 30 CFR 250.34. The lessee or operator
must

[[Page 64400]]

provide a wide range of information that enables the MMS Regional
Supervisor to take action on the plan. This includes assessing the
effects on the environment expected as a result of implementing the
plan, identifying specific and cumulative impacts that may occur both
onshore and offshore, and the measures proposed to mitigate these
impacts.\1\
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\1\ 30 CFR 250.34(b)(11).
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States that have coastal management programs approved by the
Secretary of Commerce under the Coastal Zone Management Act of 1972
(CZMA), 16 U.S.C. 1451 et seq., as well as their local governments,
play a critical role in the review of both new and revised DPP's,
primarily through the Federal consistency section of the CZMA. 16
U.S.C. 1456. The part of the consistency section dealing with OCS
exploration plans and DPP's specifies the authorities and
responsibilities of Federal lessees, the Secretary of the Interior, and
the coastal States affected by OCS operations. 16 U.S.C. 1456(c)(3)(B).
This OCS-specific provision of the CZMA requires that any person
who submits a DPP to the Secretary of the Interior under the OCSLA
shall attach to the plan a certification that each activity described
in the plan which affects the land, water, or natural resources of the
State's coastal zone complies with the enforceable policies of the
State's management program, and will be carried out in a manner
consistent with that program. Generally, under this provision and under
section 25(d) of the OCSLA (43 U.S.C. 1351(d)), the Secretary of the
Interior may not grant a license or permit for any such activity unless
the State concurs with the consistency certification attached to the
DPP. Further, under section 25(h)(1)(B) of the OCSLA (43 U.S.C.
1351(h)(1)(B)), the Secretary shall disapprove the entire DPP if the
State does not concur with the certification. Section 25(h)(1) of the
OCSLA also provides that any modification to a DPP required by the
Secretary, involving activities for which a Federal license or permit
is required and that affect coastal zone resources, must receive
concurrence of the certification by the affected State.\2\
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\2\ Procedures to implement the CZMA consistency certification
section are set forth generally in 15 CFR part 930. The OCS-specific
provisions regarding new or amended DPP's are processed in
accordance with Subpart E of those regulations (15 CFR 930.70 et
seq.).
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Conclusion

MMS strongly supports the right of California to exercise its
Federal consistency authorities under the CZMA and believes that
consistency is an important tool for the State and its local
governments to address, among other factors, the marine transportation
component of DDP's. MMS encourages California to review the enforceable
marine transportation policies in its coastal management program. The
State should determine whether such policies: (1) Meet the definition
of ``enforceable policy'' in section 304(6a) of the CZMA; (2) are of
sufficient clarity and specificity to make consistency determinations
understandable; and (3) incorporate, to the extent consistent with
State law and the CZMA, the marine transportation policies of local
governments.
The MMS Pacific OCS Region recognizes that the marine
transportation of OCS crude oil may cause significant impacts on the
marine, coastal, and human environments and contribute to the
cumulative environmental risks of an OCS development project. To
respond to the level of concern regarding marine transportation of OCS
crude in California, to reaffirm the agency's commitment to strong
coastal State and local involvement in OCS decisions, and to implement
Deputy Secretary Garamendi's Policy Directive regarding Federal support
of State and local policies with respect to the transportation of
Pacific OCS crude oil, the MMS Pacific OCS Region adopts the following
procedures for addressing new DPP's and proposed changes in the marine
transportation component of existing DPP's for leases offshore
California.

COMMENTS INVITED: The proposed NTL is designed to assist Federal
lessees and operators and State and local governments in meeting their
responsibilities and concerns regarding marine transportation of
Federal OCS crude oil produced offshore California. Comments on the
proposed NTL are invited.

Dated: December 1, 1997.
J. Lisle Reed,
Regional Director, Pacific OCS Region, Minerals Management Service.

United States Department of the Interior, Minerals Management Service,
Pacific OCS Region

Proposed Notice to Lessees and Operators of Federal Oil and Gas Leases,
Pacific OCS Region

NTL 97-----------------------------------------------------------------

Effective Date:--------------------------------------------------------

Lessee Responsibilities for Information on the marine
Transportation of Federal Outer Continental Shelf (OCS) Crude Oil
Produced Offshore California

In General: The Marine transportation of OCS minerals is an
activity that the Secretary of the Interior has determined must be
described in detail in a Development and Production Plan (DPP). As
such, it is an activity that requires the approval of the Secretary
and the concurrence of the State with the certification of federal
consistency. Proposed changes in the marine transportation component
of a DPP may require a revision to an approved DPP, and such
revision is also subject to Secretarial approval (delegated to the
Regional Supervisor). This revision would need the concurrence of
the State with the required certification of Federal consistency
unless it is overridden on appeal to the Secretary of Commerce as
authorized by section 307(c)(3)(B)(iii) of the Coastal Zone
Management Act (CZMA).
New DPP's: To address the concerns of California State and local
governments about potential significant effects of oil spills,
particularly those from tankering activity, in the State's sensitive
marine ecosystem, lessees or operators preparing new DPP's should
pay special attention to the marine transportation component of
their plans. Such lessees and operators are advised to develop plans
to transport the OCS minerals in a manner that is consistent with
the enforceable marine transportation policies of the State's CZM
program.
Specifically, the procedures of 30 CFR 250.34 shall be followed
in the preparation and submission of a new DPP, including the
requirement for certification of coastal zone consistency as
provided in 15 CFR part 930. Concurrence by California with the
certification is a necessary condition for approval of the new DPP
by the Regional Supervisor unless the Secretary of Commerce makes
the finding authorized by section 307(c)(3)(B)(iii) of the CZMA.
Revised DPP's: The conditions and procedures under which
revisions to existing DPP's are required are generally provided for
in sections 25(h)(3) and 25(i) of the OCSLA and implemented in MMS'
regulations at 30 CFR 250.34(q). Based on those authorities, the
Regional Supervisor will conduct periodic reviews of existing DPP's
based on changes in information and onshore or offshore conditions
affecting or affected by the DPP activities. The Regional Supervisor
will pay particular attention to any change in the marine
transportation component of the DPP and, specifically, to tankering
activity. If a lessee or operator acting under an approved DPP
anticipates any change in the mode, manner, or degree of marine
transportation of OCS crude activity described in the plan, the
lessee or operator shall provide information related to such changes
to the Regional Supervisor.
Based on the Regional Supervisor's periodic review or the lessee
or operator's notification, the Regional Supervisor will notify
appropriate State and local officials about such changes and provide
to the State and local officials copies of the information submitted
by the lessee or operator. If the Regional Supervisor determines
that the proposed change in activity requires a revision to the DPP,
the Regional Supervisor will order a revision to the DPP. If the
Regional Supervisor determines that a proposed revision either
ordered by the

[[Page 64401]]

Regional Supervisor or initiated by the operator could result in
significant change to previously identified and evaluated impacts or
to one not previously identified or evaluated, the proposed revision
shall be subject to all of the procedures contained in 30 CFR
250.34, including the requirement, under 250.34(b)(13), that a
certification of coastal zone consistency be submitted with the
revision. The Regional Supervisor may not approve the revision
unless the State concurs with the certification, or the Secretary of
Commerce makes the finding authorized by section 307(c)(3)(B)(iii)
of the CZMA. The Regional Supervisor shall prepare the appropriate
environmental documentation under the National Environmental Policy
Act for the decision to approve, require further modifications to,
or disapprove revisions to DPP's.
This notice is provided to assist lessees and operators in
planning the development of the Pacific OCS leases. Questions
concerning this information should be directed to the Regional
Supervisor for Development, Operations, and Safety at (805) 389-
7560.
The collection of information referred to in this notice
provides clarification, description, or interpretation of
requirements contained in 30 CFR Part 250, Subpart B. The Office of
Management and Budget has approved the collection of information
required by these regulations and assigned OMB Control Number 1010-
0049. This notice does not impose additional information collection
requirements subject to the Paperwork Reduction Act of 1995.

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Regional Supervisor, Office of Development, Operations, and Safety,
Pacific OCS Region, Minerals Management Service.

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Date

[FR Doc. 97-31944 Filed 12-4-97; 8:45 am]
BILLING CODE 4310-MR-M

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A97-31944. Public record. Not legal advice.
