1998 Year of the Ocean Ocean Energy and Minerals 



II. FEDERAL AUTHORITIES RELATING TO ENERGY RESOURCES 



The United States claims one of the world's largest and richest continental shelves. The outer 

 continental shelf (OCS) accounts for 15 percent of U.S. crude oil production and 25 percent of 

 U.S. natural gas output. The United States collected $3.0 billion in royalties and other revenues 

 in 1994 ($2.8 billion in 1995; $4.3 billion in 1996 (preliminary)). Since 1954, the federal 

 government has received more than $110 billion from the leasing and production of OCS oil and 

 gas. The OCS has served as a source of about 12 percent of domestic oil production and more 

 than 20 percent of domestic gas production. The Secretary of the Interior has designated the 

 Minerals Management Service (MMS) as the agency responsible for the mineral leasing of 

 submerged OCS lands and for the supervision of offshore operations after lease issuance. The 

 principal federal legal authorities for the development of ocean energy resources are the Outer 

 Continental Shelf Lands Act and the Deep Water Royalty Relief Act." 



Outer Continental Shelf Lands Act (OCSLA) . 43 U.S.C. § 1331 et sea 



The Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. § 1331 et seg., established federal 

 jurisdiction over submerged lands on the OCS seaward of state boundaries. Under the OCSLA, 

 the Secretary is responsible for the administration of mineral exploration and development of the 

 OCS. The OCSLA empowers the Secretary to grant leases to the highest qualified responsible 

 bidder(s) on the basis of sealed competitive bids and to formulate such regulations as necessary 

 to carry out the provisions of the OCSLA. The OCSLA provides guidelines for implementing an 

 OCS oil and gas exploration and development program, and authorities for ensuring that such 

 activities are safe and environmentally sound. The basic goals of the OCSLA include the 

 following: 



to establish policies and procedures for managing the oil and natural gas resources of the 

 OCS that are intended to result in expedited exploration and development of the OCS in 

 order to achieve national economic and energy policy goals, assure national security, 

 reduce dependence on foreign sources, and maintain a favorable balance of payments in 

 world trade; 



to preserve, protect, and develop oil and natural gas resources of the OCS in a manner 

 that is consistent with the need (a) to make such resources available to meet the nation's 

 energy needs as rapidly as possible; (b) to balance orderly resource development with 

 protection of the human, marine, and coastal environments; (c) to ensure the public a fair 

 and equitable return on the resources of the OCS; and (d) to preserve and maintain free 

 enterprise competition; 



'Itie deTilopnint dI ocoai enir^ isd miieral risourcss Is subjiit to i lunbtt ot tniiiomntal \ni: ii addition to tht onviiDiuMDtil pottcdoD [tqgirintnts contiintd in tlii OtSU. Otliei siction: of till 

 it|il ms piptt will iddriss tho li^al ro^t to piotict tii ennionintntil qoalit; o! thi onus. Tor ssainple, sti tht Hiriit EnnronneBtal Bualit; stcdon lot t dtscription a( the Fediral Wittr Follution Coatnl 

 Act (ilso ollad tho Cloio Watot Act).. 



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