Offshore Oil and Gas

Question 1

History and Overview

Answer 1

1) Volume is still going up, but the portion of energy production is down because fracking is going up.

Question 2

Statutory Frameworks

Answer 2

Almost exclusive federal control

A. OCSLA (Outer Continental Shelf Lands Act) - OCS is defined as submerged waters beyond state jurisdiction, federal jurisdiction over the OCS.

• Established process for leasing and developing OG in OCS

B. CZMA - states have additional oversight authority for offshore OG drilling in OCS
C. OPA (Oil Pollution Act) - streamlined oil and gas spill cleanup. A trust fund financed by a tax on oil is available to clean up spills when the responsible party is incapable or unwilling to do so.
D. NEPA & ESA -

Question 3

Secretary of the Interior v. California

Answer 3

CZMA
Step 1 if states complete a coastal zone management plan, states will get funding and the right to review federal actions for consistency with that plan
Step 2 Sec of commerce may veto the state. Otherwise, CZMA gives significant power to states to check federal power

Question 4

Center for Biological Diversity v. U.S. Dep’t of Interior

Answer 4

Rule: OCSLA does not require DOI to consider the global environmental impact of oil & gas consumption before approving a leasing program.

Question 5

California v. Norton

Answer 5

Rule: A state has the right to review lease suspensions under the Coastal Zone Management Act (CZMA).

Question 6

Decommissioning of Offshore Facilities

Answer 6

Very, very difficult to do across the board

• Expensive (even more) with offshore – easier to say that the market conditions may change that may make profits possible (to avoid the decommissioning costs)
• Really difficult to track and enforce closing wells bc they are not well-capitalized
• Negative value property issue