516 



Unfortunately, the Department seems to be moving away from 

 this idea. The Draft EIS for the next North Atlantic Offering 

 lists the entire area as the preferred alternative. This 

 attention on areas which Interior's own data shows to be of no 

 geologic potential is most wasteful. 



If Congress were to modify the leasing standards as I have 

 suggested with regard to special areas, and in addition to limit 

 attention to areas of geologic potential, there would be a 

 significant improvement over the current system. Of course, the 

 deletion of some areas such as that within 50 miles of shore 

 would continue to be a necessity in some instances. 



Such a system, combined with the kind of sound science which 

 has been conducted so far, should allow leasing on approximately 

 the schedule contained in the current Five Year Program. The New 

 England states have consistenly supported lease sales in the 

 North Atlantic on a two year basis, and there is no evidence to 

 date to indicate that recommendation is flawed. 



It should be noted in this context, that the Department is 

 currently planning to hold a lease sale in February, 1984, which 

 could be within months of Sale 52, if the First Circuit Court of 

 Appeals overturns the injunction against that sale. The 

 Department has also allowed less than a year to plan this sale. . 

 Maine has deep concerns should the Department stick to its 

 current plans to hold a sale in February, 1984. 



In sum, the Committee should consider the following 

 modifications to the OCS leasing system: 



Require the Secretary of the Interior to assure best use 

 of all marine resources in making oil and gas leasing and 

 permitting decisions. 



Limit leasing to areas with geologic potential for 

 hydrocarbon potential. 



- Designate areas where there would be a presumption against 

 oil and gas development until an absence of harm could be 

 demonstrated. Allow limited and closely watched leasing in these 

 areas if necessary to establish the possibility of harm. 



I hope these thoughts are useful to you and the Committee. 

 I would be happy to provide additional information or assistance 

 should you desire. 



Once again, I would like to express my appreciation for your 

 attention to these important issues. 



Siacerely , 



Charles S. Colgan 

 Senior Economist 



Rep. John McKernan 

 Douglas Foy 

 Pat Hughes 

 Jim Costakes 



