940 

 54 



(B) The proportion of the number of exploration and devel- 

 opment wells drilled adjacent to each state versus the total of 

 such wells drilled on the outer continental shelf in each year. 



( C ) The proportion of the volume of oil and gas produced ad- 

 jacent to each state versus the total volume of oil and gas pro- 

 duced on the outer continental shelf in each year, 



(D) The proportion of the volume of oil and gas produced and 

 first landed in each state versus the total OCS oil and gas pro- 

 duced and first landed in the United States in each year. 



(E) The proportion of the number of persons residing in each 

 state who are employed directly in outer continental shelf activi- 

 ties versus the total of such persons employed in each year. 



(F) The proportion of onshore capital investment made in 

 each state and which is required to directly support OCS energy 

 activities versus the total of such capital investment made in all 

 coastal states in each year. 



Strictly speaking, these criteria are not intended to be descriptions 

 of "impacts" but rather levels of OCS activity adjacent to or occur- 

 ring within the coastal states. They are based on the assumption that 

 these levels of activity will correspond to impacts which result from 

 outer continental shelf exploration and development activity. 



It should be noted that the specific activity in each criteria is that 

 which occurs in a given fiscal year. For example, criterion (A) means 

 the acreage leased in the fiscal year for which the calculations are 

 made and does not include acreage already under lease, (B) refers to 

 exploration and development wells being drilled in the year under con- 

 sideration — as well as new wells which are begun in that year. A well 

 which is being drilled and which is shut down during the year should 

 be counted during that year provided that the Secretary determines 

 that such wells were shut down for normal reasons of production or 

 maintenance and not to enhance the adjacent state's future proportion 

 of this particular category. Criterion (C) means the volume of oil 

 and gas produced adjacent to each coastal state in the fiscal year under 

 consideration — past production levels are not to enter into the calcu- 

 lations. The same general premise applies to the volume of OCS oil or 

 gas landed in each state in a particular year provided in criterion 

 (D). Criterion (E) is a proportion of those residing in each coastal 

 state who are directly employed in OCS activities. The number of 

 such employees should be calculated for each fiscal year and should 

 reflect those who are directly employed by the lessee or those persons 

 who are either contractors or subcontractors of lessees. The final cri- 

 terion, (F), refers to the amount of capital investment made in each 

 fiscal year. Again, past investment required to support OCS activity 

 should not be counted. The Committee is aware that this criterion 

 will be the most difficult to calculate. The Secretary of Commerce 

 should develop regulations which are designed to standardize these 

 data as much as possible. l*recise methods of determining OCS capital 

 investment as well as deliiiitive ways of acquiring accurate data must 

 be established by the Secretary. 



In promulgating the regulations for the administration of this 

 OCS payment program, the Secretary is advised that it is the intent 

 of the Committee that the listed criteria are to be measurements of 

 activity levels resulting from outer continental shelf energy activity. 



