1998 Year of the Ocean Ocean Energy and Minerals 



The development of OCS oil and gas resources is a part of the Administration's 

 commitment to encourage the economically beneficial and environmentally sound expansion of 

 diverse domestic energy resources. The National Energy Policy Plan promotes the production of 

 oil and natural gas resources in deep water in the Gulf of Mexico as one of the nation's best 

 opportunities for adding large new oil reserves, providing new energy supplies for the future, 

 spurring the development of new technologies, and supporting thousands of jobs in the oil and 

 gas and affiliated industries. 



Minerals Issues 



Sand and gravel will continue to be the most sought after mineral commodities from the 

 OCS. As previously mentioned, sand has been obtained from well beyond the 3-mile limit of 

 state jurisdiction for beach renourishment, and demands for offshore sand and gravel will likely 

 increase. Sand and gravel reserves on the OCS are immense, with estimates of over 2 trillion 

 cubic meters on the Atlantic shelf alone. In spite of this large resource base, the higher costs and 

 risks of marine dredges are impediments to offshore mining, and conflicts over access still occur. 

 Because transportation cost is the largest factor in sand and gravel extraction and distribution, 

 there could be competition for high quality deposits closest to the coast. Conflicts are also likely 

 to arise with other ocean users, such as fishermen and clammers. However, the use of digital 

 maps in geographic information systems promises to aid in managing both seafloor and water 

 column utilization and minimize multiple-use conflicts. 



THE NEW PARADIGM: MOVING BEYOND CONFLICT TO CONSENSUS 



OCS oil and gas development has been a contentious issue since its inception. Prior to the 

 Submerged Lands Act of 1953, states and the federal government argued over who had authority 

 over the seabed and its resources. After passage of the Act, states and other stakeholders believed 

 that the federal government functioned too independently and was insensitive to state concerns 

 when it came to holding offshore lease sales and approving oil and gas development and 

 production activities off their coasts. Passage of the National Environmental Policy Act, the 

 Coastal Zone Management Act, and the Outer Continental Shelf Lands Act Amendments gave 

 states and other constituents a greater voice in offshore oil and gas development. However, the 

 level of discord escalated in the mid-1970s, when concern over foreign oil embargoes and rapid 

 rises in the price of gasoline and heating oil led the federal government to accelerate efforts to 

 develop and produce offshore oil and gas. 



Areawide leasing, leasing in frontier areas, as well as several large and highly publicized 

 oil spills gave rise to the idea that human safety, environmental protection, and the 

 socioeconomic well-being of coastal communities were being seriously jeopardized in favor of 

 maximizing oil and gas production. States and others therefore turned to the political arena for 

 relief in the form of Congressionally and Presidentially mandated moratoria. This situation 

 continues today. In order to address public concerns, begirming in the late 1980s and expanding 

 in the early 1990s, the federal government implemented a policy of involving the various 



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