478 



Second, separate exploration from development, either specifical- 

 ly without giving lease rights to develop when you lease for explo- 

 ration, or administratively by having a really firm decision point 

 before any production can occur, a very strong reconsideration of 

 whether it is worth proceeding and the capacity to stop if you 

 choose to make the balance different. 



Third, I think Congress should seriously consider withdrawing 

 certain areas from leasing altogether — when Congress identifies 

 they are extremely valuable and vulnerable, and Georges Bank 

 would be a class example. 



Mr. D' Amours. On that score, you are probably aware just a 

 week ago today the Appropriations Committee did just that. 



Mr. FoY. I understand that. 



Mr. D' Amours. For fiscal year 1984, on Georges Bank. 



Mr. FoY. I understand that. And I commend the Congress and 

 the committee for that. 



I know Interior has been complaining loudly about that, and I 

 think in fact that is precisely what Congress should be contemplat- 

 ing. 



Fourth, I would have some limit — maybe it goes back to the 

 notion of separating production from explanation — a firm require- 

 ment for really extensive information on the size of the resource, 

 that that information be in hand before any production can begin, 

 because remember the way things happen now, you can have 200 

 leases going on Georges Bank and, as the exploratory plans are 

 done and as they get results, they can start producing before the 

 other results are in. And it seems to me to make a rational deci- 

 sion you have to have most of those results in hand before you 

 should make a decision to proceed with production. 



Fifth, emphasize again the importance and the priority of the 

 natural resources in the oil and gas program. The oil and gas pro- 

 gram views its role in life as being mineral extraction. Its role in 

 life should be protection of natural resources and get the minerals 

 out if you can do it without harm, more time between sales. 



In an area as vulnerable as Georges Bank, we should stretch the 

 sales out. We should not allow them to hold a sale and then before 

 any of the scientific information is in or the resource information 

 is in, they have another sale, and another one again. There was 

 going to be another one next year. 



Seven, don't allow economic cornercutting. Mandate from the 

 start that even if it is a small field, if it is in a vulnerable area, 

 they are going to have to spend top dollar to develop it. In other 

 words, they are going to have to use pipelines, barges, they are 

 going to have to take all the steps that would have to be done if it 

 is a very valuable field. 



That will make them more rationally approach whether they 

 even want to go out to that field. 



Eight, limit the size of sales. 



Mr. D' Amours. Thank you very much. 



Mr. Colgan? 



Mr. Colgan. Some of the things Doug mentioned I would concur 

 with. On some I have problems. The one thing I would suggest as 

 an addition to all that has been suggested is to require that the 

 lease sales be focused on areas of geologic potential, and not be al- 



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