915 



29 



decision-making process from the beginning and did not want to 

 see all of the revenues from OCS operations go to the federal treasury 

 when they might reasonably expect to face expenses in exoess of the 

 revenues which might be generated. The states also said that they 

 needed to be sure that they had time to prepare for onshore impacts 

 through their coastal zone management efforts. 



With these and other changes in the system by which federal offshore 

 lands are leased, the state testimony was to the effect that they were 

 willing to see an expanded offshore leasing program proceed. 



For example, the director of the Massachusetts Energy Policy Office 

 told the Oceanography Subcommittee : 



We realize the decline in domestic oil production must 

 be slowed, but I must also advocate that in the public interest, 

 offshore oil and gas development must proceed in a more 

 orderly and equitable manner than has been exhibited in 

 the past. 



The Coastal States Organization (CSO), an alliance formed under 

 the auspices of the National Governors' Conference, submitted a 

 statement which said in part : 



CSO supports expedient development of oil and gas 

 resources on the Outer Continental Shelf by private industry. 

 The coastal states insist that they be involved in a substantive 

 way early in development of leasing plans and in environ- 

 mental and coastal management studies which would preceed 

 leasing. The states should also receive a portion of the 

 revenues of OCS development to offset the costs of providing 

 services needed to support offshore activity. 



(The organization subsequently has come to support the Com- 

 mittee's approach of using general revenues rather than OCS proceeds 

 as the source of financial assistance to the states.) 



The National Governors' Conference in a policy statement adopted 

 on February 20, 1975, by an almost unanimous vote, states the 

 following : 



The Governors believe it is in the public interest to promptly 

 explore the OCS to determine the extent of energy resources 

 that exist. 



Development, production, transportation and onshore fa- 

 cility plans should be submitted for approval to the Depart- 

 ment of the Interior, but only after the potentially impacted 

 states have reviewed such plans in order to ensure consistency 

 with state coastal zone management plans and other applica- 

 ble state statutes and regulations. 



The Governors believe than any OCS program will have 

 substantial financial impact on affected states. Anticipated 

 onshore development will require States to plan for and even- 

 tually finance public facilities to cope with the impact of that 

 development. Since the OCS program is a national one, we 

 believe there is a clear federal responsibility to assume the 

 necessary related costs of that development. Adequate federal 

 funds should be made available now to States to enable them 

 to stay ahead of the program and plan for onshore impact. 



