Environmental Quality, working with the Environmental Protection 

 Agency and in consultation with the National Academy of Sciences 

 and appropriate Federal agencies, is initiating a study of the environ- 

 mental impact of oil and gas production on the Atlantic OCS and in 

 the Gulf of Alaska. 



The President has asked the Secretary of the Interior to develop a 

 long-term leasing program for all energy resources on public lands, 

 based on a thorough analysis of the nation's energy, environmental, 

 and economic objectives. An outline follows of steps being taken by 

 Interior and other Federal agencies as a part of the Federal Ocean 

 Program applicable to offshore oil and gas development, in 

 cooperation or consultation with State and local governments, 

 industry, and other organizations. 



Federal lease tracts in the Gulf of Mexico and off southern 

 California lie adjacent to regions of land and nearshore production. 

 Here the knowledge and experience gained through exploration and 

 development of the onshore and nearshore fields, and the avail- 

 ability of pipeline systems leading to nearby refineries, permit 

 significant production from newly discovered OCS fields within two 

 or three years from the time of leasing. Elsewhere on the shelves, 

 extensive exploratory drilling may be required to confirm the 

 presence of commercially producible reserves. If these efforts are 

 successful, production, pipeline, and other facilities must be 

 constructed. For these regions, industry estimates a time lapse of up 

 to five years from the time of leasing and first discoveries to the 

 attainment of significant production. For remote parts of the 

 continental shelf off northern and western Alaska, where environ- 

 mental conditions are critical factors, and leasing rules must await 

 completion of CEQ and other studies, the estimated times are 

 somewhat longer. However, the industry's world-wide experience 

 with hostile marine environments, from North Sea storms to Gulf of 

 Mexico hurricanes, will provide much of the engineering design and 

 operating know-how for the Alaskan coastal environment. To these 

 industry estimates, one must add the time required by the govern- 

 ment, including the courts, to collect and evaluate independently 

 data that will make promising areas available for leasing to industry 

 and provide sufficient knowledge to assure safety of operations and 

 protection of the environment. 



In mid-September and early December, 1972, the Department of 

 the Interior implemented the first two sales of an accelerated lease 

 schedule that was prepared in response to President Nixon's June 

 1971 Energy Message to Congress. The two sales realized more than 

 $2.2 billion in bonus bid revenues to the Federal Government, 

 reflecting the petroleum industry's great need for new domestic 

 production. Successful exploratory wells were announced within 

 three or four months of each sale. 



The 1972 lease sales and those planned for 1973 are limited to 

 offerings on the Gulf of Mexico shelf, where the promise of early 

 production to meet critical needs is greatest. In anticipation of 



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