OUTER CONTINENTAL SHELF (OCS) SCIENTIFIC COMMITTEE (SC)

November 16-18, 1999

Summary

**A. [OCEAN Activities Update]{.underline}**

Dr. Ken Turgeon, MMS Chief Scientist, briefed the Committee on the
recently released Federal Ocean Report, *Turning to the Sea: America's
Ocean Future.* This report stemmed from President Clinton's June 12,
1999, directive to his cabinet at the National Ocean Conference to
report back to him within one year with recommendations for a
coordinated, disciplined, long-term federal ocean policy. The report was
prepared as part of an interagency effort in which the Department of the
Interior (DOI) participated as one of the key Federal agencies with
ocean resource responsibilities. In addition to Dr. Turgeon, Dr. Tom
Kitsos, Deputy Director of MMS and Mr. Bob LaBelle, Chief of MMS's
Environmental Division, served as DOI principals in the formulation and
preparation of the report. Vice President Gore released the report at a
press conference in Boston, Massachusetts, on September 2, 1999.

At that time, the Vice President announced the formation of an Under
Secretary level Federal Ocean Task Force to implement the
recommendations in the report. Dr. Turgeon presented the salient points
of the ocean report and gave an update on the status and direction of
the Ocean Task Force.

**B. [Physical/Biological Integration Workshop for Desoto Canyon and
]{.underline}**

**[Adjacent Shelf Report]{.underline}**

Dr. Jim Kendall, Chief, Environmental Studies Section, Gulf of Mexico
Region, briefed the Committee on results of recently completed and
ongoing MMS studies in the Northeastern Gulf of Mexico and suggested
that more integration was needed between the biological and physical
oceanographic disciplines. As such, the University of Alabama and the
Dauphin Island Sea Lab co-hosted a workshop for the MMS on October
19-21, 1999, in Mobile, Alabama. The purpose of this workshop was to: 1)
bring experts together to summarize what is known about the area;

2\) determine critical issues; and 3) provide input to the design of an
integrated physical and biological study to complete the "Northeastern
Gulf of Mexico Physical Oceanography Program" and the "Northeastern Gulf
of Mexico Coastal and Marine Ecosystem Program. "

C.  **[Director's Presentation]{.underline}**

    Director Walt Rosenbusch has been with the MMS for the past six
    months as its Director and gave background information on his
    credentials. He cited the goal of the MMS is to be the unquestioned
    leader in both the domestic and international area of resource
    management and, in order to accomplish this goal, the MMS needs to
    reach out to groups such as the OCS SC and rely upon the science and
    the guidance that is given the MMS to better manage the OCS
    resources.

    Director Rosenbush presented plaques to outgoing members' Drs.
    Biliana Cicin-Sain, Joanna Endter-Wada, and Lee Huskey. Outgoing
    members not in attendance to accept their plaques were Drs. Mary
    Altalo, Bill Merrell, and Jim O'Reilly. Dr. Endter-Wada was also
    presented a plaque in appreciation for her serving as the Chair for
    the past two years.

    Dr. William Schroeder, Vice Chair of the Committee, presented the
    Director with *Gulf of Mexico Science,* a regional journal citing
    the results of years of research between the National Oceanographic
    and Atmospheric Administration and the MMS.

    **D. [Associate Director's Presentation]{.underline}**

    Ms. Carolita Kallaur, Associate Director for Offshore Minerals
    Management, informed the Committee of the major offshore activities
    occurring in the MMS regional and headquarters offices.

    One particular area of interest that she addressed was a recent MMS
    publication that presents the role of the OCS oil and natural gas
    program in meeting this Nation's sustainable development goals. She
    specifically addressed the three pillars of sustainable development:
    environment, economics, and society. The report is posted on the MMS
    website at http://www.mms.gov/sd/.

    Another topic Ms. Kallaur discussed was the role of natural gas as
    the preferred fossil fuel for the future because of its cleaner
    burning qualities. A key concern in this regard is meeting this
    Nation's natural gas needs which are projected to increase to 33
    trillion cubic feet per year. Because it is not economical to import
    natural gas from foreign nations, the United States must look to
    developing its domestic supplies, including those on the outer
    continental shelf. Therefore, it's important that the MMS has a
    dialogue with industry and other stakeholders about what role the
    OCS may play in the future.

    Associate Director Kallaur discussed the international aspect of the
    offshore oil and gas program. To date, much of the focus has been on
    safety issues; however, there is also an environmental component to
    a lot of what's going on internationally. It is felt there should be
    standardized training requirements for people working on rigs
    recognizing that these rigs are all often regionally different in
    terms of climate. It's believed that in terms of sustainable
    development, by having discussions with other regulators and
    industry, a basis can be set where the MMS will be able to help some
    of the countries who are new to offshore oil and gas activity. Over
    time, it can increase both environmental and safety performance.

    Associate Director Kallaur touched upon some of the activities
    taking place in the regions:

    [Gulf of Mexico Region.]{.underline} Due to deepwater drilling, a
    279 percent increase in production over the past five years has been
    reported; natural gas from deepwater gas production has risen 250
    percent during the same period. There are over 3,000 leases in water
    depths greater than 800 meters compared to last November's 29
    deepwater rigs drilling in water depths greater than 300 meters.

    Since there has been an increase in deepwater activity, the MMS has
    prepared an environmental assessment report identifying certain
    deepwater drilling issues and these issues may require the MMS to do
    extensive environmental analyses. The report was expected to be
    released late in 1999.

    The use of floating production, storage and offloading (FPSO)
    facilities is being considered for the Gulf of Mexico OCS. Although
    FPSOs are in use around the world for production and storage, the
    MMS has decided an Environmental Impact Statement (EIS) needs to be
    performed regarding using these vessels in U.S. waters. There are
    FPSOs being used in Norway and in other parts of the world, and the
    MMS is exchanging dialogue with these countries to learn from their
    experiences before they can be permitted in the Gulf. Industry is
    also studying FPSOs and their uses and the MMS will use their
    findings to determine the use of FPSOs in the Gulf.

    An environmental assessment is also being conducted on seismic
    exploration to determine whether or not further work is warranted on
    this subject.

    Ms. Kallaur announced that the draft EIS has been completed on
    Destin Dome 56 which is a natural gas project, and a sale in the
    Eastern Gulf of Mexico, which is significant because it will be the
    first sale in 12 years, is scheduled for 2001.

    [Pacific Region]{.underline}. Associate Director Kallaur addressed
    the COOGER study which as been ongoing since 1995 to look at the
    onshore effects of offshore oil and gas activity. This project was
    completed and a meeting is going to be held the end of October 2000
    to conclude this project.

    Exxon recently has set a record for extended reach drilling in
    California. Since California wants to avoid erecting a new facility,
    Exxon determined it would be easier to drill at a long distance. The
    well is more than 18,600 feet in length and is being drilled at a
    depth of 6,000 feet. This has allowed Exxon to tap into 71 million
    barrels of oil and 207 million cubic feet of natural gas.

    The MMS announced recently that there has been a suspension of
    operation and production for 36 leases in the Pacific Ocean. All of
    the facilities will undergo an EIS that are planning to use mobile
    offshore drilling rigs and two of those facilities will undergo
    environmental assessments. The plan is to bring one rig in to
    California and it would move from facility to facility.

    The MMS Pacific Region is also initiating an endangered species
    consultation and essential fish habitat consultation.

    [Alaska Region.]{.underline} The environmental work has been
    completed on the Northstar proposal which is a state project but a
    portion of the land is in Federal waters. It is expected that there
    could be activity next year, although a lawsuit has been filed by
    Greenpeace.

    One issue in regards to the Northstar project is the question of
    laying pipeline in subsea permafrost. This has not been done
    previously, and it is hoped that what is learned from this process
    can be shared with others.

    The Liberty project is a development and production plan being done
    in the Beaufort Sea with BP/Amoco being the operator. A facilitator
    has been hired by BP/Amoco to try to work through any issues which
    may arise with the different stakeholders.

    A lease sale, Sale 176, is scheduled for 2002 in the Beaufort Sea in
    an area that will be covered in the environmental impact statement.

    A workshop was recently held in Alaska to identify monitoring needs
    in the areas around Northstar and Liberty, as well as the areas that
    which may be leased in Sale 176.

    Ms. Kallaur thanked the Artic Nearshore Impact Monitoring in
    Development Areas subcommittee members and has appreciated the help
    that has been received in looking at some of the monitoring needs in
    the areas around Northstar and Liberty, as well as areas that may be
    included in Sale 176.

    [Headquarters.]{.underline} An Environmental Forum was held in
    association with the Policy Committee. The purpose of the forum was
    to reach out and have more dialogue with the environmental
    community. The main topic was sustainable development; OCS sand for
    coastal protection and the potential for methane hydrates was also
    discussed.

    **E. [Technology Assessment and Research Report]{.underline}**

Ms. Amy White, a Petroleum Engineer for the Technology Assessment and
Research Program (TAR), presented a brief overview of the TAR Program
objectives: identified key ongoing projects in both the Operations
Safety & Engineering Research and Oil Spill Research components;
discussed the roles of OTRC and OHMSETT in the TAR Program activities;
and discussed the focus of the FY 2000 TAR Program funding priorities.

**F. [National Oceanographic Partnership Program
Presentation]{.underline}**

Dr. Steve Ramberg, Chair of the National Oceanographic Partnership
Program (NOPP) Interagency Working Group, gave an update on NOPP
activities. The NOPP was established by Congress in 1997 to foster
interagency cooperation in ocean research by supporting programs that
emphasize partnering by academia, industry and government. Since then,
its programs have grown to about \$66M invested in basic and early
applied research on topics that are well-suited to collective agency
attention and multi-partnering at performance. Over 110 partners from
industry (33), academia (53), government (25) and non-profit
institutions (14) are involved in the funded programs to date, bringing
approximately \$50M in cost-shared resources. Examples include
instrumentation developments, natural laboratories, community-based
modeling and data assimilation efforts, education, and more recently a
framework for a US integrated ocean observation and prediction system
serving the full range of US ocean research and application interests.
More information can be found starting at the website
http://www.nopp.org.

**G. [Ocean Studies Board Presentation]{.underline}**

Dr. Ken Brink, Chair of the Ocean Studies Board (OSB) gave a status
report on OSB ongoing and planned activities. The OSB was established by
the National Research Council to advise the federal government on issues
of ocean science and policy. In addition to exercising leadership within
the ocean science community, the Board undertakes studies at the request
of Federal agencies, Congress or other sponsors, or upon its own
initiative. The Board explores the science, technology, policies and
infrastructure needed to understand and protect coastal and marine
environments and resources. The Board normally meets about three times
per year, but much of the activity takes place in the form of committees
appointed especially to deal with particular studies. There are at least
two informal subgroups of the Board that normally have additional
meetings: a group dealing with fisheries and a newer group dealing with
ocean engineering and technology.

With the redefinition of the former Marine Board, the Ocean Studies
Board has taken a much more active interest in more practical problems
involving marine technology, the petroleum industry, and coastal
engineering, for example. One reflection of this will be an increased
membership on the Board of people from the marine engineering and
technology community.

Further, the Board will, of course, be taking on more studies along this
line. Currently, the Board is beginning a study on inputs of oil in the
sea, and this effort will likely be extended to include fates and
effects. The Board is, in addition, actively developing other
technologically oriented studies that will likely be announced over the
coming months.

**H. [Sand and Gravel Program: Status Update]{.underline}**

Mr. Khaled Bassim, an oceanographer in MMS\'s International Activities
and Marine Minerals Division, talked about MMS\'s sand and gravel
program. Since 1991, the MMS has been conducting studies to evaluate the
environmental impacts of offshore dredging for sand for beach
nourishment activities and for construction aggregate material. The
early studies took an overview approach by focussing on collecting
available information and literature and on the general nature of
available technologies and mitigation. More recently, site-specific
studies have been ongoing to examine the biological and physical effects
associated with dredging in particular areas. Studies offshore Virginia
and Alabama have been completed and studies are ongoing offshore New
Jersey, Maryland/Delaware, and North Carolina; a study to take place
offshore the east coast of Florida is currently in procurement.

Public Law 103-426 enacted October 1994, authorizes the Secretary of the
Interior to negotiate agreements for the use of OCS sand, gravel, and
shell resources for programs undertaken by Federal, State, or local
governments which involve certain public works projects, i.e., for shore
protection, beach restoration, or coastal wetlands restoration. To date,
negotiated agreements have been completed with the Navy, the Park
Service, the City of Virginia Beach, Duval County, Florida, and Myrtle
Beach. The MMS is currently negotiating with the States of Maryland and
Alabama and with Brevard County, Florida.

The MMS is also investigating the possibility of conducting a
competitive sale for offshore sand and gravel for construction aggregate
offshore northern New Jersey. The MMS continues to conduct research in
the United Kingdom to provide relevant information on the biological and
physical effects of offshore aggregate dredging.

I.  **[OCS Resource Management and Sustainable
    Development]{.underline}**

    Dr. Bob LaBelle, Chief, Environmental Division, stated that the MMS
    has recently posted a 'living document' on its homepage
    (http://www.mms.gov/sd/) that explores the concept of sustainable
    development and OCS resource management. In June of this year, the
    Associate Director commissioned an internal team to assess what the
    Offshore Minerals Management program is presently doing and should
    be doing to better incorporate aspects of sustainability. The
    resulting report was discussed, stressing the contribution of
    economics, social aspects and environmental protection to true
    sustainable development.

    **J. [Policy Committee Presentation and Discussion]{.underline}**

Mr. Don Oltz, Vice chair of the OCS Policy Committee, briefed the OCS SC
on current activities of the Policy Committee (please see the OCS Policy
Committee homepage for what transpired at its October, 1999 meeting).

**K. [Social and Economic Planning Conference Findings
and]{.underline}**

**[Recommendations]{.underline}**

Dr. Rodney Cluck, Sociologist, Environmental Studies Branch, reported
that from August 24 through August 26, 1999, 60 social scientists and
personnel of the MMS gathered in Park City, Utah, to discuss the
Environmental Studies Program agenda for socioeconomic research. The
task was to review past and ongoing research and identify the issues
that were most pressing. The conference proceedings will be used to
guide MMS social science in research, mitigation and decision making for
Outer Continental Shelf oil and gas development. The conference
supported the national and regional studies planning by defining
linkages among study efforts conducted by MMS and developing logical
long-term planning strategies at the regional and national levels.

Three members of the social science subcommittee (Lee Huskey of
University of Alaska,

Joanna Endter-Wada of Utah State University, and Stan Albrecht of Utah
State University) offered their observations on the MMS socioeconomic
studies program and the conference proceedings. Having served on the
committee since the early nineties, they noted that higher-level agency
support for socioeconomic research had increased considerably during the
decade. They also commended the socioeconomic studies program for its
responsiveness to changes in the oil industry, to the 1992
recommendations of the National Research Council, to political
circumstances in the regions, and to the SC's own recommendations.

This session considered the Social and Economic Planning Conference
findings and recommendations as well as specific regional issues raised
and what was learned as a result of the conference.

L.  **[ANIMIDA - Artic Nearshore Impact Monitoring In Development
    Area]{.underline}**

**[Session: MMS's Beaufort Sea Monitoring Program]{.underline}**

Dr. Cleve Cowles, Chief, Environmental Studies Section, Alaska,
explained that ANIMIDA is a multi-year, multidisciplinary study to
monitor impacts associated with development activities and initial
production of oil from the Northstar and Liberty Units in the nearshore
portion of the Alaska OCS in the Beaufort Sea. Phase I is a 1.5-year
program and will include a focused literature review, monitoring for
physical environmental parameters (sediment quality, resuspension of
sediments, underwater noise and vibration), a workshop, and developing
and ranking Phase II studies. Phase II is anticipated as an expanded
additional four-year monitoring program, which will provide a basis of
continuity and consistency in evaluation of potential impacts of
upcoming development and production in the Beaufort Sea. The project
will be closely coordinated with related ongoing MMS-managed studies and
studies being conducted under the MMS/University of Alaska Fairbanks
cooperative Coastal Marine Institute. A contract was awarded to Arthur
D. Little, Inc. June 30, 1999, to perform Phase I tasks and to serve as
Program Manager for the duration of the study. Total estimated cost of
the ANIMIDA multi-year monitoring project is estimated to be \$3,067,000
through Fiscal Year 2003.

M.  **[Coastal Marine Institutes Session]{.underline}**

    Mr. Jim Cimato, Oceanographer, Environmental Studies Branch, stated
    that the MMS Coastal Marine Institute (CMI) initiative was proposed
    in 1991 as an MMS-State partnership to strengthen relationships with
    coastal states where OCS oil and gas activities take place, and to
    improve the information flow to the affected States and the public.
    It accomplishes this by using State institutions of higher education
    to conduct research on issues of mutual concern to both the State
    and MMS. This research is focused on environmental and socioeconomic
    aspects of OCS oil and gas and marine mineral development
    activities. Through the CMI\'s, increasing numbers of students and
    faculty are engaging in OCS related research, developing new skills,
    and developing new information and approaches to solving management
    issues.

In recognition of the mutual need for critical scientific information
for resource management decisions, the CMI program leverages MMS funds
with State funds (one-to-one matching is required) so that more research
can be done than if MMS funded all the work itself. The first
cooperative agreement under the CMI program was signed in 1992 with the
*State of Louisiana* and *Louisiana State University* (LSU). A second
cooperative agreement was signed with the *State of Alaska* and the
*University of Alaska* in 1993. A third agreement was signed with the
*University of California at Santa Barbara* (UCSB) in 1994. The
cooperative agreements with LSU and the University of Alaska have
recently been renewed for another 5 years. Renewal of the cooperative
agreement with UCSB is up for consideration in FY 2000. Approximately
20% of the Environmental Studies Program budget is allocated to research
conducted through the CMI\'s.

## Deepwater Gulf of Mexico Session

# Discussion Leader \-- Dr. Jim Kendall, Chief, Environmental Studies Section, Gulf of Mexico

[Background]{.underline}: The oil and gas industry is showing great
interest in the deepwater portions of the Gulf of Mexico. Advancements
in deepwater drilling technology over the past few years have enabled
the industry to move out into water depths exceeding 7,500 feet,
something unheard of only 5-6 years ago. As a result, the number and
percentage of deepwater tracts leased in the Gulf of Mexico has grown
exponentially during the past few years and there are now more than
1,800 existing oil and gas leases in water depths of 1,000 ft or greater
in the Central and Western Gulf of Mexico planning areas. This new
frontier brings with it new issues that the MMS must consider in its
ocean resources management role.

The MMS, along with Louisiana State University, sponsored a Deepwater
Drilling Workshop on July 30, 1997. The purpose of this workshop was to
promote dialogue among academic, scientists, industry, and MMS
representatives concerning the potential development of new technology
for drilling in ultra-deep water. This workshop focused both on defining
the environmental and socioeconomic problems that will be unique to
deepwater operations and on potential problem solutions.

The OCS SC Deepwater Subcommittee convened October 1-2, 1997, in New
Orleans, Louisiana. The purpose of this meeting was to initiate in-depth
subcommittee activity on providing advice and guidance to MMS on
deepwater information needs using the recent deepwater workshop
sponsored by MMS and LSU. Focus was on identifying issues and
information needs with direct reference/application to MMS decision
making and management responsibilities.

The arrival of the deepwater era in the Gulf of Mexico brings new, and
often unique, environmental, socioeconomic and technological concerns
and issues to all the stakeholders, and especially to MMS in terms of
its management responsibility and decision making information
requirements.

**O.** **[Environmental Studies Program Session: Overview
of]{.underline}**

**[FY 2001-2002 Annual Study Plans]{.underline}**

Mr. Jim Cimato, Environmental Studies Branch, stated that the Annual
Study Plans have been developed by the Regions and Headquarters to
describe proposed studies which will support ongoing and planned OCS
Program activities. Annual Study Plans briefly describe regional OCS
Program activities, environmental issues and information needs, and
available information and ongoing research as the basis for identifying
research proposed for the future. Study plans are for planning purposes
only and do not imply commitment by the Agency as many factors are
subject to change. The current annual study plans are developed based on
the Environmental Studies Program National Strategic Plan (1998-2002)
which analyzed and summarized a wide variety of environmental concerns
and issues on a national scale by identifying emerging and ongoing
program areas.