432 



Mr. D'Amours. But the whole bias, the whole prejudice seems 

 again to be cavalier — let's go ahead and drill, we don't really know 

 what is out there, we cannot assess the relative risk. We are talk- 

 ing about the most productive fishing grounds in the world, on a 

 per-area basis. 



We are also talking iS ^at the likelihood, possibility at least, of a 

 very minimal discovery in that area, and some significant risk of 

 an accident, of a blowout, of permanent destruction to this re- 

 source. You are saying go ahead anyvvay, we have no idea what is 

 out there, we don't really know if it is worth it, but let's drill and 

 find out. 



Given the fact that the OCSLA section 18 requires a balancing of 

 risk, do you think that perhaps we should rewrite the OCSLA to 

 give you some other judgment or provide some other standard to 

 make a judgment of risk? 



Mr. Danenberger. If you can tell us how much oil and gas is out 

 there, it might be a good idea to rewrite it. 



Mr. D'Amours. You told us. Your first estimate is it was well 

 worth the risk because there were billions of barrels of oil and bil- 

 lions of metric cubic feet of natural gas. Then you reduced that es- 

 timate at the last second. That is one of the reasons you are under 

 court injunction blocking sale 52. The reduced estimate didn't 

 make any difference in the decision as to whether we should go for- 

 ward. 



I am saying if the only standard you have can be so cavalierly 

 discarded, then perhaps we will have to give you some other stand- 

 ard, and perhaps it will have to be a more heavy-handed approach 

 by the Congress, which I would like to avoid. 



I would like to get from the Interior Department the level of po- 

 tential discovery at which you are unwilling to tamper cavalierly 

 with an extremely fragile ecosystem. 



Mr. Danenberger. I think the risks during exploration are so 

 low that there would be an opportunity to evaluate the pros and 

 cons of development and production which would be a somewhat 

 higher risk without in fact putting the fishery in jeopardy. I think 

 this has been proven out on Georges Bank, and proven out in other 

 areas where oil and gas exploration have been conducted. 



Mr. D'Amours. If we separated the leasing process — separate ex- 

 ploration leasing, and an entirely different process for production, 

 would you go along with that, would that simplify your quandary? 



Mr. Danenberger. I think that is largely in effect with present 

 language in the CCS Lands Act amendments, requiring an environ- 

 mental impact statement between the exploration and the develop- 

 ment stage. So I think 



Mr. D'Amours. But entirely separate leasing process? 



Mr. Danenberger. Then it would be hard to get somebody I 

 guess to take the risk initially to do the work. It would help in that 

 way. But there are other concerns: would you be able to lease any? 



Mr. D'Amours. Why don't we try. 



Would you be willing to give it a shot? 



Mr. Danenberger. You might end up with the Federal Govern- 

 ment doing the drilling. 



Mr. D'Amours. We have a situation here where the oil compa- 

 nies are doing the environmental testing. Maybe we should have 



