Non-Living Resources 



3. The Bureau of Land Management prepares leasing maps, recom- 

 mends and holds lease sales, issues leases, and approves assignments of lease 

 interests. The Bureau also issues rights-of-way for pipelines and other needed 

 facilities and furnishes technical information for securing final determina- 

 tions of boundaries between Federal and State jurisdictions. Also, a new 

 mineral economics group has been established to assist in development of 

 land and OCS leasing and management policies. In 1968, 197 leases were 

 issued and leasing activity in FY 1969 will include three drainage sales and a 

 sulfur sale. In addition, calls for sale nominations have been issued in the 

 Gulf of Alaska and off western Louisiana. 



The Geological Survey is responsible for basic geological determinations 

 and for administration of exploration and production activities, including 

 surveillance of drilling and production to assure conformance to regulations, 

 metering of production and collection of royalties, and determination of 

 the efficiency of utilization. In 1968, approximately 420 geophysical permits 

 and 25 core hole twinning permits were issued by the Geological Survey 

 for exploration of the continental margins. Due to overlapping of permit 

 areas, it is extremely difficult to quantify the area actually explored. It can 

 be reasonably assumed, however, that the Gulf of Alaska, Bristol Bay, and 

 lower Cook Inlet, off Alaska, were extensively explored, as were broad areas 

 off all of the Gulf Coastal States and California, south of the Santa Barbara 

 Channel. Portions of the remainder of the Pacific and the Atlantic con- 

 tinental margins were explored; however, they received less attention. 



Three Areas of Increasing Emphasis 



In FY 1970, 1,400 active leases are projected for the Outer Continental 

 Shelf, an increase of 30 percent over FY 1969 and 52 percent over 1968. 

 Industry estimates approximately 1,100 wells will be drilled and 700 new 

 wells tested for production in FY 1970. In recognition of this increasing 

 activity on the Continental Shelf, three areas of our marine science pro- 

 gram deserve particular emphasis : 



1. A reevaluation of the legal-financial-administrative framework for 

 managing offshore oil and gas resources has been undertaken by the Depart- 

 ment of the Interior. Under review are both the objectives of OCS leasing 

 policy— the fundamental purposes to be achieved by leasing regulations— 

 as well as the regulations and procedures themselves. The effectiveness of the 

 latter is being evaluated through every stage in the leasing process — from 

 initial exploration activities to the closing of a well — and alternative pro- 

 cedures are being considered in an effort to find those that will yield the 



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