background north aleutian basin energy- fisheries workshop
TRANSCRIPT
Outer Continental ShelfOuter Continental Shelf BackgroundBackground
North Aleutian Basin EnergyNorth Aleutian Basin Energy-- Fisheries WorkshopFisheries Workshop
John GollJohn GollMMS Alaska Regional DirectorMMS Alaska Regional Director
March 18March 18--19, 200819, 2008
The Outer Continental ShelfThe Outer Continental Shelfoff the coast beyond 3 milesoff the coast beyond 3 miles
Oil and Gas Leasing, Oil and Gas Leasing, Regulation, Monitoring, Regulation, Monitoring, InspectionsInspectionsSand, gravel, gold, and other Sand, gravel, gold, and other minerals, minerals, New New >> Energy from wind, >> Energy from wind, currents, waves, tidescurrents, waves, tidesRoyalty Collection and Royalty Collection and DisbursementDisbursement
MMS: An Ocean, Energy,MMS: An Ocean, Energy,& Mineral Agency& Mineral Agency
••EnvironmentalEnvironmental& Technical& TechnicalResearchResearch
The People of MMSThe People of MMS A diverse group A diverse group
for Energy Issuesfor Energy Issues
Marine BiologistsMarine BiologistsOceanographersOceanographersEconomistsEconomistsSociologistsSociologistsInformation ManagersInformation ManagersAuditorsAuditorsGeographersGeographersNumerical modelersNumerical modelersComputer SpecialistsComputer Specialists
EngineersEngineerspetroleumpetroleummechanicalmechanical
GeologistsGeologistsArchaeologistsArchaeologistsGeophysicistsGeophysicistsMeteorologistsMeteorologists
Inspections
Marine Monitoring
What is the OCS?What is the OCS?The Outer Continental Shelf or The Outer Continental Shelf or ““OCSOCS”” consists of consists of submerged lands lying beyond the coastal state waters submerged lands lying beyond the coastal state waters offshore the U.S.offshore the U.S.In 1953, Congress designated the Secretary of the Interior In 1953, Congress designated the Secretary of the Interior to administer mineral exploration and development of the to administer mineral exploration and development of the entire OCS through the OCS Lands Act.entire OCS through the OCS Lands Act.
Regulates air emissions from industrial activities
National Environmental Policy Act
Federal Water Pollution Control Act (Clean Water Act)
Clean Air Act
Coastal Zone Management Act
Endangered Species Act
Marine Mammal Protection Act
Fishery Conservation & Management Act
National Historic Preservation Act
Includes environmental analysis & protection in project planning
Regulates discharges from oil & gas activities into marine waters
Assures compliance with State coastal area protection plans
Protects threatened & endangered species
Protects marine mammals
Protects essential fish habitat
Protects archaeological resources including those on the ocean floor
Environmental Laws Affect ProgramEnvironmental Laws Affect Program
Oil Pollution Act Oil Spill Financial Responsibility
Mu l t i pl e Agenci es I nvol vedMu l t i pl e Agenci es I nvol vedU.S. Coast GuardU.S. Coast Guard
OilOil--spill response, port and vessel security and inspectionsspill response, port and vessel security and inspections
Environmental Protection AgencyEnvironmental Protection Agency
Air and water qualityAir and water quality
National Oceanic and Atmospheric AdministrationNational Oceanic and Atmospheric Administration
Coastal programsCoastal programs
Marine mammals/endangered speciesMarine mammals/endangered species
FisheriesFisheries
Fish and Wildlife ServiceFish and Wildlife Service
Marine mammals/endangered speciesMarine mammals/endangered species
State & Local LevelState & Local LevelDepartment of Natural Resources (leasing, Department of Natural Resources (leasing, CZM)CZM)Departments of Environmental Conservation Departments of Environmental Conservation (air, water, spill response)(air, water, spill response)Department of Fish & GameDepartment of Fish & GameAlaska Oil and Gas Conservation CommissionAlaska Oil and Gas Conservation CommissionState Historic Preservation OfficerState Historic Preservation OfficerBoroughsBoroughsTribal GovernmentsTribal Governments
5-Year Program
Lease Sale
Exploration Plan
Development and Production Plan
The OCS Decision Making PyramidThe OCS Decision Making Pyramid
Government-proposed
Lessee-proposed
MMS ProcessesMMS ProcessesEstimate Oil and Gas ResourcesEstimate Oil and Gas Resources
Set a 5 Year ScheduleSet a 5 Year ScheduleLease AreasLease Areas
Review ExplorationReview ExplorationReview Development ProjectsReview Development Projects
Overview and Inspect ActivitiesOverview and Inspect ActivitiesEnvironmental EvaluationsEnvironmental EvaluationsConsultation with Tribal GovernmentsConsultation with Tribal GovernmentsUnderpinned by Environmental andUnderpinned by Environmental and
Technical ResearchTechnical Research
Resource Resource AssessmentAssessment
Geologic AnalysisGeologic AnalysisPlay IdentificationPlay Identification------Numbers of mapped & Numbers of mapped &
speculative prospectsspeculative prospectsArea (acres)Area (acres)Net Pay (thickness)Net Pay (thickness)Porosity, % water satPorosity, % water sat’’nnFormation Vol FactorFormation Vol FactorRecovery EfficiencyRecovery EfficiencyProportion oil/gas/mixProportion oil/gas/mixPlay and prospect riskPlay and prospect risk
SolicitComments 45-day
CommentPeriod
Draft Proposed ProgramPublished
60-DayCommentPeriod
Proposed ProgramDraft EISPublished
90-DayComment Period
Proposed FinalProgramFinal EIS Published
60-DayPeriodfor Congress
Final 5-YearProgramAnnounced
The OCS Leasing, Exploration, and Development Process The OCS Leasing, Exploration, and Development Process -- generalizedgeneralized
Call forInformationPublished
45-Day CommentPeriod
DefineSaleArea
Draft EISPublished
45- to 90-DayCommentPeriod
Final EISPublished, Proposed Notice and CD sent to States
30-Day CommentPeriod
60-Day Comment Period
90-Day Review
Final Noticeof SalePublished
30-DayPeriod Sale Leases
Issued
Prelease Develop 5-Year Program
Planning for Specific Sale - general
ExplorationPlanSubmitted
EnvironmentalAssessment
ExplorationPlan
Review
90-Day CZMReview
APDDecision
PermitsGranted
ExplorationDrillingStarts
FirstExplorationWell (s)Completed
DelineationWellDrilling
Post Lease Exploration Plan Approval
Development& ProductionPlan Submitted
CompanySubmits CZMConsistencyCertification
MMSPrepares NEPA Analysis
CZM ConsistencyConcurrence from State
Then Development andProduction Plan Decision
Production WellApplication
FirstOil/GasProduction
Abbreviations: ADP, Application for Permit to Drill; CD, Consistency Determination; CZM, Coastal Zone Management; EIS, Environmental Impact StatementNEPA, National Environmental Policy Act
Development and Production Plan Approval
30-days
60+60 days
Le as ing ProcessLe as ing ProcessIssue Call for Information and NominationsIssue Call for Information and NominationsIdentify Area for ConsiderationIdentify Area for ConsiderationPrepare Draft Environmental DocumentPrepare Draft Environmental DocumentEndangered Species and other ConsultationsEndangered Species and other ConsultationsPrepare Final Environmental DocumentPrepare Final Environmental DocumentProposed Notice of Sale/Consistency DeterminationProposed Notice of Sale/Consistency DeterminationSeek GovernorSeek Governor’’s Comment on Size, Timing, and s Comment on Size, Timing, and LocationLocationDecision on Final Sale Area/Mitigating Measures/Other Decision on Final Sale Area/Mitigating Measures/Other Terms and ConditionsTerms and ConditionsPublish Final Notice of SalePublish Final Notice of SaleConduct SaleConduct SaleComplete Fair Market Value ReviewComplete Fair Market Value ReviewIssue Accepted LeasesIssue Accepted Leases
Terms of Mine r al Le asesTerms of Mine r al Le ases
Length of lease (5 Length of lease (5 -- 10 years)10 years)Minimum & Production Royalty RatesMinimum & Production Royalty RatesRental RatesRental RatesStipulations/Mitigating MeasuresStipulations/Mitigating Measures
What is Bei ng Conv eyed?What is Bei ng Conv eyed?
Exclusive Right and Privilege to:Exclusive Right and Privilege to:exploreexploredevelopdevelopproduceproduce((if requirements are metif requirements are met))
minerals specified in the lease agreementminerals specified in the lease agreement
Environmental ProtectionEnvironmental Protection
Ensure that all activities on Federal Ensure that all activities on Federal
Offshore lands are conducted with Offshore lands are conducted with
appropriate environmental appropriate environmental
safeguards.safeguards.
Safety & Environmental Protection Safety & Environmental Protection Two Core ObjectivesTwo Core Objectives
Safe Offshore OperationsSafe Offshore Operations
Promote incident free operations Promote incident free operations
during exploration and development on during exploration and development on
Federal Offshore Lands.Federal Offshore Lands.
SolicitComments 45-day
CommentPeriod
Draft Proposed ProgramPublished
60-DayCommentPeriod
Proposed ProgramDraft EISPublished
90-DayComment Period
Proposed FinalProgramFinal EIS Published
60-DayPeriodfor Congress
Final 5-YearProgramAnnounced
The OCS Leasing, Exploration, and Development Process The OCS Leasing, Exploration, and Development Process -- generalizedgeneralized
Call forInformationPublished
45-Day CommentPeriod
DefineSaleArea
Draft EISPublished
45- to 90-DayCommentPeriod
Final EISPublished, Proposed Notice and CD sent to States
30-Day CommentPeriod
60-Day Comment Period
90-Day Review
Final Noticeof SalePublished
30-DayPeriod Sale Leases
Issued
Prelease Develop 5-Year Program
Planning for Specific Sale - general
ExplorationPlanSubmitted
EnvironmentalAssessment
ExplorationPlan
Review
90-Day CZMReview
APDDecision
PermitsGranted
ExplorationDrillingStarts
FirstExplorationWell (s)Completed
DelineationWellDrilling
Post Lease Exploration Plan Approval
Development& ProductionPlan Submitted
CompanySubmits CZMConsistencyCertification
MMSPrepares NEPA Analysis
CZM ConsistencyConcurrence from State
Then Development andProduction Plan Decision
Production WellApplication
FirstOil/GasProduction
Abbreviations: ADP, Application for Permit to Drill; CD, Consistency Determination; CZM, Coastal Zone Management; EIS, Environmental Impact StatementNEPA, National Environmental Policy Act
Development and Production Plan Approval
30-days
60+60 days
Ensure Safe and Ensure Safe and Environmentally Sound OCS Environmentally Sound OCS
Energy DevelopmentEnergy Development
Environmental and operational Environmental and operational oversightoversightRules and regulationsRules and regulationsInspectionsInspectionsTechnological and environmental Technological and environmental researchresearch
Pollution Prevention ProgramPollution Prevention Program 30 CFR 250 Regulations30 CFR 250 Regulations
Shallow hazards surveyShallow hazards surveyDrilling unit review (fit Drilling unit review (fit for use)for use)Well design/constructionWell design/constructionRedundant well control Redundant well control equipmentequipmentWell control training and Well control training and exercisesexercisesEmergency plansEmergency plans
adverse weather/ice adverse weather/ice conditionsconditionsrelief wellsrelief wellsH2SH2Soil spill responseoil spill responseWelding and hotWelding and hot--tappingtapping
Pollution Prevention Pollution Prevention ProgramProgram
30 CFR 250 Regulations30 CFR 250 Regulations ContinuedContinued……
Platform verificationPlatform verificationthird party review of third party review of bottom founded facility bottom founded facility design, construction and design, construction and installationinstallation
Production safety system Production safety system approval and approval and management of changemanagement of changeMandatory subsurface Mandatory subsurface safety valvessafety valvesProduction safety Production safety equipment trainingequipment trainingRecords and reportingRecords and reportingOnOn--site inspectionsite inspection
Oil Pollution Act of 1990Oil Pollution Act of 1990 MMS ResponsibilitiesMMS Responsibilities
Federal Oversight Federal Oversight for all State and for all State and federal offshore oil federal offshore oil and gas facilitiesand gas facilities
Oil Spill Oil Spill Contingency PlansContingency PlansOil Spill Financial Oil Spill Financial ResponsibilityResponsibilityDrillsDrills
MMS ResearchMMS ResearchTechnology and Assessment Technology and Assessment ProgramProgram
engineering and oil spill responseengineering and oil spill response
Environmental Studies Environmental Studies ProgramProgram
University of AlaskaUniversity of AlaskaCMICMI
Walrus haulout
Monitoring
Resear ch Pl anni ngResear ch Pl anni ngEnvironmental Studies FYEnvironmental Studies FY--07 Plan07 Plan
North Aleutian Basin WorkshopNorth Aleutian Basin Workshop•• Held November 28 Held November 28 –– 30, 200630, 2006
Physical OceanographyPhysical OceanographySubsistenceSubsistenceSociologySociologyEconomicsEconomicsMarine MammalsMarine MammalsFishFishBirdsBirdsFate and Effects of DischargesFate and Effects of Discharges
PendingPending
•• Subsistence Study, Phase ISubsistence Study, Phase I
•• Juvenile and Maturing Juvenile and Maturing Salmon Salmon
•• Spatial and Temporal Spatial and Temporal Mapping of Nearshore Mapping of Nearshore Juvenile Fish and Settling Juvenile Fish and Settling CrabCrab
OngoingOngoing
•• Information Status and Information Status and Research Planning Meeting Research Planning Meeting (Complete) (Complete)
•• North Pacific Right Whales North Pacific Right Whales in the Southeastern Bering in the Southeastern Bering SeaSea
•• Circulation ModelingCirculation Modeling
North Aleutian BasinEnvironmental Studies
**Additional Studies will be proposed for FY 09.
North Aleutian Basin North Aleutian Basin BackgroundBackground
A North Aleutian Basin sale was included in the 5A North Aleutian Basin sale was included in the 5--Year Program for 1982Year Program for 1982--19871987Sale 92 was held in January 1986, but bid opening was enjoined bSale 92 was held in January 1986, but bid opening was enjoined by the courty the courtBids were opened in October 1988 and 23 leases were issued in NoBids were opened in October 1988 and 23 leases were issued in November 1988vember 1988FY 1990 DOI Appropriations Acts placed moratoria on postlease acFY 1990 DOI Appropriations Acts placed moratoria on postlease activity, with tivity, with yearly suspensions on leases. No postlease activity ever occurryearly suspensions on leases. No postlease activity ever occurred. ed. Leaseholders filed suit on breach of contract; settled in 1995.FY 1990-2003 - DOI Appropriations Act placed preleasing and leasing moratoria on area 1998 - NAB withdrawn from preleasing and leasing activity under section 12 of OCS Lands Act through 2012 by Presidential direction.FY 2004 Congress removed moratoria language from DOI AppropriationsJanuary 2007 – Presidential withdrawal modified to allow Secretary to considerleasing in this area.
22--D Seismic Data: 64,700 LineD Seismic Data: 64,700 Line-- MilesMiles
CDP SEISMIC DATA GRID (TWO-DIMENSIONAL)
Sherwood\....\Fig03-NorthAleutianSeismicGrid.cdr
Bristol Bay
Alaska Peninsula
NORTH ALEUTIAN SHELFCOST 1 WELL
0 25 50 75 100 miles
Sale 92 (1988)
Gas-Prone (73% Gas) Plays(Tertiary Source)Oil-Prone (77% Oil) Plays
(Mesozoic Source)
Becharof Lake
Ugash
ik Lak
es
Iliamna Lake
Kuka L.
LakeBrooks
Naknek Lake
BearLake
BRUIN BAY FAULT
Magmatic Mesozoic Basement
Sedimentary Mesozoic Basement
164°
162°
160°
158°156°
58°
56°
ALASKA PENINSULA
ST. GEORGEBASIN
NORTH ALEUTIAN BASIN
AMAK BASIN
BLACK HILLS UPLIFT
Bristol Bay
Pacific Ocean
ALASKA
NO
RTH
ALE
UTIA
N B
ASI
N O
CS
PLA
NN
ING
AR
EA
Sherwood\....\NAB-Oil Prone vs Gas Prone.cdr
0 50
MILES
Leased Blocks (1988, Sale 92, $95.4 MM, 23 Leases)
Leased Blocks (2005, AK State, $1.3 MM, 37 Leases)
Well, Plugged and Abandoned
Gas-Prone Plays with Tertiary-Age Sources. Plays 1, 2, & 6, 8.293 Tcf Gas, 559 Mmb Oil, Gas/Oil = 73/27 Energy-Equivalent
Oil-Prone Plays with Possible Mesozoic-Age Sources. Plays 3 & 5, 0.329 Tcf Gas, 193 Mmb Oil, Gas/Oil = 23/77 Energy-Equivalent
Uplift or Structural Arch
EXPLANATION
GreatBasins 2
GreatBasins 1
Becharof Lake 1
BearCreek 1
Wide Bay 1
Grammar 1
Finnegan 1
Alaska 1Lee 1
Koniag 1
PainterCreek 1
Ugashik 1
PortHeiden 1
SandyRiver 1
North AleutianShelf COST 1
Big River 1
DavidRiver 1, 1A
HoodooLake 1
HoodooLake 2
CanoeBay 1
CathedralRiver 1
Bertha 1Monkshood 1
St. GeorgeCOST 2
Oil and Gas EstimatesOil and Gas Estimates Risked Technically RecoverableRisked Technically Recoverable
CommodityCommodity >95 % >95 % chancechance
MEANMEAN > 5 % > 5 % chancechance
Gas (Trillion Gas (Trillion Cubic Feet)Cubic Feet)
0.40.4 8.68.6 23.223.2
Oil (billion Oil (billion barrels)barrels)
0.020.02 0.750.75 2.52.5
We see the basin as Natural Gas Prone.We see the basin as Natural Gas Prone.
North Aleutian Basin: What Might Be ThereNorth Aleutian Basin: What Might Be There
Key Milestones (Key Milestones (TentativeTentative)) PrePre--lease and Environmental Review lease and Environmental Review
ProcessesProcesses
Sale 214 Sale 214 Call for Information and NOI Call for Information and NOI –– Spring 2008Spring 2008Public Scoping and meetings Public Scoping and meetings –– SpringSpring--SummerSummer--on 2008on 2008Draft EIS Draft EIS –– Early 2010 Early 2010 Public Hearings Public Hearings –– Spring/Summer 2010Spring/Summer 2010Final EIS Final EIS –– Early 2011Early 2011Sale Sale –– Fall 2011Fall 2011