Oil and Gas Operations & Research in the U.S. Arctic OCS

Dr. James (Jim) KendallRegional Director, Alaska

Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE)

Transportation Research Board National Academies

Marine Board Fall MeetingAnchorage, Alaska September 7, 2011

Oil and gas leasing, regulation, monitoring, inspection and enforcement

Environmental studies and technical research

Sand, gravel, gold and other minerals

Renewable energy

BOEMRE: What We Do

• US OCS: 1.76 billion acres• Alaska OCS: Oover 1 billion acres

Alaska OCS

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

Fishery Conservation & Management Act

National Historic Preservation Act

Includes environmental analysis & 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

Protects threatened & endangered species

Protects marine mammals

Protects essential fish habitat

Protects archaeological resources, including those on the ocean floor

OCS Lands Act/Oil Pollution Act Regulates pre- and post-lease oiland gas activities on the OCS

Multiple Agencies Involved U.S. Coast Guard

Oil-spill response, port and vessel security and inspections Environmental Protection Agency

Air and water quality US Fish and Wildlife Service

Marine mammals/endangered species National Oceanic & Atmospheric Administration

Coastal zone programs/Research Marine mammals/endangered species MOU on OCS Energy and Environmental Stewardship

US Army Corps of Engineers Navigation, dredge and fill

US Geological Survey Research

SolicitComments

45-day CommentPeriod

Draft Proposed Program

Published

60-DayCommentPeriod

Proposed ProgramDraft EISPublished

90-DayComment Period

Proposed Final

ProgramFinal EIS Published

60-DayPeriodfor Congress

Final 5-YearProgram

Announced

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 Sale

Published

30-DayPeriod Sale Leases

Issued

Pre-lease Develop 5-Year Program

Planning for Specific Sale

ExplorationPlan

Submitted

EnvironmentalAssessment

ExplorationPlan

Review

90-Day CZMReview

APDDecisionPermitsGranted

ExplorationDrillingStarts

FirstExploration

Well(s)Completed

DelineationWell

Drilling

Post-lease Exploration Plan Approval

Development& Production

Plan Submitted

CompanySubmits CZMConsistencyCertification

BOEMRE Prepares

NEPA Analysis

CZM ConsistencyConcurrence from State

Then Development andProduction Plan Decision

Production WellApplication

FirstOil/Gas

Production

Abbreviations: APD - Application for Permit to Drill CD - Consistency Determination CZM - Coastal Zone Management EIS - Environmental Impact Statement NEPA - National Environmental Policy Act

Development and Production Plan Approval

Arctic OCS Activities

Liberty

Northstar

Maritime ActivitiesSeismic: Activities peaked in

early 1980s 15 Arctic permits

since 1998 Bering Sea seismic

ended 20 years ago

Drilling: 35 exploration wells since 1981 3 between 1993-2001 None in 10 years

Development and Production: BP’s Northstar Field

Potential or Planned Activities Production from BP’s

Liberty Field Industry remains interested

in exploratory drilling in both the Beaufort and Chukchi Seas in 2012 and beyond.

Litigation, permitting requirements, and other administrative actions will affect the level and timing of any future near-term exploration activities.

Environmental and Socioeconomic Research $350M, 425 reports since

1973 $50M for Chukchi since

2007 Long-term whale

monitoring, sediment chemistry and bethos

Multiple partnerships and coordination

Scope includes Physical Oceanography, Biology, Protected Species, Subsistence Activities, Social Indicators, and Economic Modeling

Marine Mammal/Physical Oceanography Synthesis

Understanding relationships of oceanographic conditions, lower trophic prey species and marine mammals

Help predict changes in oceanographic features and changes in the behavior of marine mammals and their prey

Oil Spill Prevention Preparedness and Response

Research Rules Monitoring and

Inspection Enforcement

OHMSETT

Effectiveness of dispersants in cold water Testing use of oil herders in ice Detection of oil under sea ice

Research demonstrates that dispersants work on North Slope crudes in cold-water and broken-ice conditions

http://www.boemre.gov/tarprojectcategories/ArcticOilSpillResponseResearch.htm

Field-scale tests conducted by Sintef under Oil in Ice - Joint Industry Project in the Barents Sea confirm dispersants can be effective in cold-water and broken-ice conditions

http://www.sintef.no/Projectweb/JIP-Oil-In-Ice/Publications

Dispersants

NOAA Photo

Advancements in Regulatory Enforcement (Safety & Environment)

Implement BOEMRE reorganization Recruit and train new employees Continue to review and update safety

regulations Work with newly established Ocean Energy

Safety Advisory Committee

Research Priority Recommendations for the Arctic OCS

National Academy of Sciences Reportsrelated to the OCS Oil and Gas Program Environmental Information for Outer Continental

Shelf Oil and Gas Decisions in Alaska (1994) Assessment of the U.S. Outer Continental Shelf

Environmental Studies Program: I. Physical Oceanography (1990); II. Ecology (1992); III. Social and Economic Studies (1992)

Alternatives for Inspecting Outer Continental Shelf Operations (1990)

Improving the Safety of Marine Pipelines (1994) Ocean Noise and Marine Mammals (2003) Oil Spill Dispersants: Efficacy and Effects (2005) Managing Troubled Waters: The Role of Marine

Environmental Monitoring (1990)

Research Priority Recommendations for the Arctic OCS

National Academy of Sciences Reportsrelated to the OCS Oil and Gas Program Science, Policy, and the Coast: Improving

Decisionmaking (1995) Oil in the Sea III: Inputs, Fates, and Effects (2003) Bridging Boundaries through Regional Marine

Research (2000) Environmental Science in the Coastal Zone: Issues

for Further Research (1994) Environmental Impacts of Wind-Energy Projects

(2007) Science and the Endangered Species Act (1995)

Research Priority Recommendations for the Arctic OCS

Environmental Studies Plan Priority Areas USGS Circular 1370 Recommendations for the Beaufort

and Chukchi Seas Presidential Commission on the Deepwater Horizon Oil

Spill US-Canada Northern Oil and Gas Research Forum

Research Priorities for the Beaufort and Chukchi Seas Arctic Council Oil and Gas Effects Assessment National Ocean Policy Strategic Action Plan for Action #8

Changing Conditions in the Arctic IARPC 5-Year Research Plan CMTS Arctic Integrated Action Team Recommendations Canadian National Energy Board Arctic Research Needs

report

Questionshttp://www.boemre.gov