1998 Year of the Ocean Ocean Energy and Minerals 



Section 8(k) of the OCSLA Amendments authorizes the Secretary of the Interior to lease 

 minerals, other than oil. gas. and sulfur, on the OCS on the basis of competitive bidding and 

 under such terms and conditions as may be prescribed at the time of the lease offering. Included 

 within this authority is the Secretary's responsibility to design, implement, and manage the OCS 

 minerals policy and development. The basic goals of the MMS marine minerals program are to: 



evaluate and achieve the potential of the OCS as a domestic supply source for strategic 

 and other non-energy mineral resources; 



safeguard the ocean and coastal environments by ensuring that all OCS mineral activity is 

 environmentally sound and acceptable; 



ensure that OCS mineral activities are fully coordinated and compatible with other uses 

 of the ocean; and 



provide an effective consultation process for coastal states and the federal government 

 regarding offshore minerals. 



The MMS established a three-tiered regulatory regime for offshore minerals. These regulations 

 govern prospecting activities, leasing activities, and operations on offshore mineral leases. 

 Together, these rules outline the requirements for data and information gathering ventures 

 associated with prospecting and scientific research. These regulations also establish leasing 

 procedures, basic mineral lease conditions, and general procedures to govern discovery, 

 development, and production activities on a lease. 



With the cooperation of adjacent coastal states, joint federal-state task forces assess leasing 

 potential of an offshore area. If leasing is determined to be economically feasible, resource and 

 environmental studies follow. The task forces recommend appropriate action to the Secretary and 

 the State Governor(s). Federal decisions to proceed to lease sales are made by the Secretary of 

 the Interior, with review and comment from the Governor(s). 



In addition, in 1994, Pub. L. 103-426 (Negotiated Agreements for OCS Sand, Gravel, and Shell 

 Resources), which amends OCSLA sections 8(k) and 20(a), was signed into law. 43 U.S.C. § 

 1337 (2)(A). This law authorizes the Secretary of the Interior, through the MMS, to negotiate 

 agreements for use of OCS sand, gravel and shell resources in projects undertaken by federal, 

 state, or local governments for shore protection, beach or coastal wetlands restoration, or certain 

 other construction projects. Once the MMS receives a request for OCS sand, gravel, or shell 

 resources and the necessary supporting information, it determines the project's eligibility under 

 Pub. L. 103-426. Once eligibility is established, the conditions of the negotiated agreement are 

 developed. 



Coastal states and local communities have been generally supportive of the MMS sand and 

 gravel program and. in light of diminishing coastal and nearshore resources, recognize the need 



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