and Performance Information 

Fiscal Year 2012 

BUDGET 

JUSTIFICATIONS 

The United States 

Department of the Interior 

 

 

 

NOTICE: These budget 

justifications are prepared 

for the Interior, Environment 

and Related Agencies 

Appropriations Subcommittees. 

Approval for release of the 

justifications prior to their 

printing in the public record of 

the Subcommittee hearings 

may be obtained through 

the Office of Budget of the 

Department of the Interior. 

BUREAU OF 

OCEAN ENERGy 

MANAGEMENT, 

REGULATION AND 

ENFORCEMENT 

BUREAU OF OCEAN ENERGY MANAGEMENT, 

REGULATION AND ENFORCEMENT 

FY 2012 PERFORMANCE BUDGET 

Table of Contents 

Director’s Preface ......................................................................................................................... 1 

General Statement ........................................................................................................................ 7

 Summary of BOEMRE Budget Request ........................................................................................ 7 

FY 2012 Performance Budget Request......................................................................................... 8 

Reorganization and Reform .......................................................................................................... 9 

FY 2012 Budget Highlights......................................................................................................... 12 

 FY 2012 Analysis of Budgetary Changes.................................................................................... 13 

Performance Summary................................................................................................................ 20 

BOEMRE Organization Chart.................................................................................................... 23 

Goal Performance Table ............................................................................................................ 25 

Bureau Level Budget Tables...................................................................................................... 37

 Budget at a Glance...................................................................................................................... 37 

Summary of Requirements – Ocean Energy Management ......................................................... 38 

Renewable Energy ...................................................................................................................... 41

 Summary of FY 2012 Program Changes .................................................................................... 41 

Justification of FY 2012 Program Changes................................................................................ 41 

Program Overview...................................................................................................................... 45 

Performance Overview ............................................................................................................... 45 

Leasing and Environmental....................................................................................................... 53

 Summary of FY 2012 Program Changes .................................................................................... 53 

Justification of FY 2012 Program Changes................................................................................ 53 

Program Overview...................................................................................................................... 61 

Performance Overview ............................................................................................................... 61 

Resource Evaluation ................................................................................................................... 71

 Summary of FY 2012 Program Changes .................................................................................... 71 

Justification of FY 2012 Program Changes................................................................................ 71 

Program Overview...................................................................................................................... 74 

Performance Overview ............................................................................................................... 74 

Regulatory ................................................................................................................................... 89

 Summary of FY 2012 Program Changes .................................................................................... 89 

Justification of FY 2012 Program Changes................................................................................ 89 

Program Overview...................................................................................................................... 96 

Performance Overview ............................................................................................................... 98 

Information Management.......................................................................................................... 111 
 

 Program Overview.................................................................................................................... 111 

Performance Overview ............................................................................................................. 112 

Oil Spill Research...................................................................................................................... 115

 Summary of FY 2012 Program Changes .................................................................................. 115 

Justification of FY 2012 Program Changes.............................................................................. 115 

Program Overview.................................................................................................................... 116 

Performance Overview ............................................................................................................. 117 

General Administration............................................................................................................ 123

 Summary of Budget Request .................................................................................................... 123 

Budget Overview ...................................................................................................................... 123 

 Program Overview.................................................................................................................... 125 

Executive Direction................................................................................................................... 127 

Policy and Management Improvement................................................................................... 129 

Administrative Operations....................................................................................................... 133 

General Support Services......................................................................................................... 137 

Appendices................................................................................................................................. 139

 Appendix A - Fixed Costs and Related Changes ................................................................. 139

 Appendix B - 2012 Appropriations Language ..................................................................... 143

 Appendix C - Authorizing Statutes ....................................................................................... 147

 Appendix D – MAX Tables .................................................................................................... 153

 Appendix E - Employee Count by Grade ............................................................................. 157

 Appendix F - Mandatory Accounts and Offsetting Collections.......................................... 159 

 Appendix G – 2012 Working Capital Fund Centralized Bill.............................................. 161 
Table of Figures 

Figure 1: BOEMRE Organization Chart....................................................................................... 23 

Figure 2: Estimated FY 2010 Renewable Energy Spending Profile............................................. 47 

Figure 3: Estimated FY 2010 Leasing and Environmental Spending Profile............................... 64 

Figure 4: Estimated FY 2010 Resource Evaluation Spending Profile.......................................... 75 

Figure 5: Existing BOEMRE 3-D Seismic Data Inventory, Gulf of Mexico (2010) ................... 77 

Figure 6: Estimated FY 2010 Regulatory Spending Profile ......................................................... 99 

Figure 7: Estimated FY 2010 Information Management Spending Profile................................ 114 

Figure 8: Estimated FY 2010 Oil Spill Research Spending Profile............................................ 117 

Figure 9: Ohmsett Facility in New Jersey................................................................................... 120 

Table of Tables 

Table 1: Summary of BOEMRE Budget Request .......................................................................... 7 

Table 2: FY 2012 Analysis of Budgetary Changes ...................................................................... 13 

Table 3: Goal Performance ........................................................................................................... 25 

Table 4: Budget at a Glance.......................................................................................................... 37 

Table 5: Summary of Requirements –Ocean Energy Management.............................................. 38 

Table 6: OEMM Renewable Energy Subactivity Budget Summary ............................................ 41 

Table 7: OEMM Performance Overview – Renewable Energy ................................................... 51 

Table 8: OEMM Leasing and Environmental Subactivity Budget Summary .............................. 53 

Table 9: OEMM Performance Overview – Leasing and Environmental ..................................... 68 

Table 10: OEMM Resource Evaluation Subactivity Budget Summary ....................................... 71 

Table 11: OEMM Resource Evaluation Program Performance Change ...................................... 80 

Table 12: OEMM Performance Overview – Resource Evaluation .............................................. 85 

Table 13: OEMM Regulatory Subactivity Budget Summary....................................................... 89 

Table 14: OEMM Performance Overview – Regulatory Program ............................................. 108 

Table 15: OEMM Information Management Program Subactivity Budget Summary............... 111 

Table 16: OEMM Oil Spill Research Budget Summary ............................................................ 115 

Table 17: General Administration Summary of Budget Request ............................................... 123 

Table 18: General Administration Program Request Compared to FY 2010............................. 124 

Table 19: Executive Direction Subactivity Budget Request....................................................... 127 

Table 20: Policy and Management Improvement Subactivity Budget Request ......................... 129 

Table 21: Administrative Operations Subactivity Budget Request ............................................ 133 

Table 22: General Support Services Subactivity Budget Request.............................................. 137 
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Director’s Preface 

FY 2012 BOEMRE PERFORMANCE BUDGET JUSTIFICATIONS 

Director’s Preface 

“...we need better regulations, better safety standards, and better enforcement 

when it comes to offshore drilling.” 

-President Barack Obama 

The Deepwater Horizon blowout and oil spill brought to light serious deficiencies in the 

regulatory framework for offshore drilling. Over the past several months, we at the Bureau of 

Ocean Energy Management, Regulation and Enforcement (BOEMRE) have worked hard to 

address these deficiencies and to restore public confidence in oil and gas drilling on the Outer 

Continental Shelf (OCS). Together with Secretary of the Interior Ken Salazar, we are 

undertaking the most aggressive and comprehensive reforms of offshore oil and gas regulation 

and oversight in U.S. history. 

Through our reforms, we are creating a new culture of safety and a vastly improved 

regulatory regime. But our success ultimately depends on receiving adequate resources to 

implement these reforms internally and conducting aggressive oversight to ensure that regulatory 

requirements – old and new – are being met by operators. As the Secretary and I have 

emphasized on numerous occasions, additional resources are absolutely critical if we are to 

accomplish meaningful and lasting change in the way in which the Department manages the 

nation’s offshore energy resources and provides effective oversight. 

Some of they key reforms we intend to implement in FY 2012 are highlighted below. 

First, we will continue our work to build out three strong, independent entities to carry 

out the missions of promoting energy development, regulating offshore drilling, and collecting 

revenues. In the past, these three functions all resided within the former Minerals Management 

Service (MMS), creating the potential for internal conflict and an increased risk of a prodevelopment bias. This will no longer be the case. 

On May 19, 2010, Secretary Salazar signed Executive Order 3299, which dissolved the 

Minerals Management Service (MMS) and called for the establishment of three new entities in 

its place: the Bureau of Ocean Energy Management (BOEM), the Bureau of Safety and 

Environmental Enforcement (BSEE), and the Office of Natural Resources Revenue (ONRR). 

The revenue collection arm of the former MMS has already become the Office of Natural 

Resources Revenue, a separate entity within the Office of the Secretary. In the next year, the 

offshore leasing and regulation programs will also become separate, independent organizations: 

The new Bureau of Ocean Energy Management (BOEM) will be responsible for 

managing development of the nation’s offshore resources in an environmentally and 

economically responsible way. Functions will include: Leasing, Plan Administration, 

Environmental Studies, National Environmental Policy Act (NEPA) Analysis, Resource 

Evaluation, Economic Analysis and the Renewable Energy Program. 

Bureau of Ocean Energy Management, Regulation and Enforcement 1 
 

Director’s Preface 

The new Bureau of Safety and Environmental Enforcement (BSEE) will enforce safety 

and environmental regulations. Functions will include: Offshore Regulatory Programs, 

Research, Oil Spill Response, all field operations including Permitting and Inspections, and 

newly formed Training and Environmental Compliance functions. 

As part of our broad and continuing reform efforts, we have created 11 Implementation 

Teams that have been hard at work for several months. They are the central focus of our efforts 

to analyze critical aspects of BOEMRE’s structures, functions and processes, and implement our 

reform agenda. 

We have also established an Investigations and Review Unit (IRU) within BOEMRE to 

provide the internal capability to investigate allegations of misconduct or unethical behavior; 

provide the capability for conducting investigations into allegations that operators have violated 

laws and regulations relating to offshore drilling; and respond swiftly to emerging issues. The 

IRU’s functions and capabilities will continue in the new organizations. 

In addition to our ongoing organizational reforms, we have put in place major new safety 

requirements and programs to enhance enforcement and inspection activity. To date, we have: 

	 Launched a full review of our use of categorical exclusions. 

	 Issued a Notice to Lessees (NTL 2010-N06) that requires exploration plans to meet new 

requirements to show the operator is prepared to deal with potential blowout and 

potential worst-case discharge scenarios. 

	 Issued a drilling safety rule requiring permit applications for drilling projects to meet 

new standards for well-design, casing, and cementing, and be independently certified 

by a professional engineer. We are strengthening standards in the drilling and 

production stages, for equipment, safety practices, environmental safeguards, and 

oversight. 

	 Issued a new workplace safety rule imposing, for the first time, performance based 

standards for offshore drilling and production operations, including for equipment, 

safety practices, environmental safeguards, and management oversight of operations 

and contractors. 

	 Issued NTL 2010-N10 requiring corporate compliance statements and information 

about subsea blowout containment resources. 

	 Issued new guidance for “Idle Iron” which requires oil and gas companies operating in 

the Gulf of Mexico to set permanent plugs in nearly 3,500 nonproducing wells and 

dismantle about 650 oil and gas production platforms if they are no longer being used. 

In order to ensure compliance with these new rules and make sure that we remain on par 

with industry regarding developments in drilling technology, BOEMRE will need to hire more 

2 Bureau of Ocean Energy Management, Regulation and Enforcement 
Director’s Preface 

engineers, inspectors, and staff for environmental reviews. We have already taken steps to 

increase the number of inspectors and petroleum engineers in the agency. Last fall, BOEMRE 

engaged in a recruitment initiative with universities around the Gulf of Mexico. As a result of 

that recruitment tour, we received more than 500 applications within two weeks, and we are in 

the process of interviewing qualified candidates. Because the success of the reform agenda for 

offshore oil and gas exploration and development is largely dependent on bringing talent, 

expertise, and more personnel into the government, we are very gratified that our aggressive 

recruitment efforts are showing such positive results. 

While we have accomplished a great deal, and our reform agenda is moving rapidly, our 

work is far from complete. In the near future, we plan to continue our efforts on the following 

initiatives: 

	 Developing a risk-based program for inspections, a program for safety monitoring from 

onshore locations, new inspections and monitoring policies and procedures, and 

instituting new training programs. 

	 Establishing an Ocean Energy Safety Advisory Committee to facilitate coordination 

and collaboration on offshore energy safety among industry, the academic community 

and federal agencies, including BOEMRE, the Department of Energy, the National 

Oceanic and Atmospheric Administration, and the United States Coast Guard. 

	 Improving offshore drilling safety, containment and response by issuing the next 

generation of regulations regarding (1) performance-based safety rules, including 

Safety and Environmental Management Systems; (2) additional safety measures, 

including blowout preventer enhancements; and (3) well containment and spill 

response. 

	 Enhancing our OCS Renewable Energy program and implementing the Secretary’s 

“Smart from the Start” initiative, continuing Task Force activities regarding renewable 

energy development, identifying Wind Energy Areas and initiating regional 

environmental assessments and consultations for Mid Atlantic Wind Energy Areas to 

address lease issuance and site assessment activities. These efforts alone are being 

conducted in keeping with the President’s Ocean Policy Task Force recommendations 

regarding Coastal and Marine Spatial Planning efforts. We are also working toward 

issuing guidelines for key stages of renewable energy project development and 

facilitating action on existing projects, including Cape Wind and interim policy leases. 

	 Working aggressively – but responsibly – to conduct the remaining Gulf of Mexico 

(GOM) lease sales pursuant to the 2007-2012 OCS Five Year Oil and Gas Leasing 

Program. This includes completing required environmental analysis in the Western and 

Central GOM. We are also conducting scoping meetings and environmental analysis in 

the Arctic and GOM in preparation for potential leasing activity under the 

2012-2017 OCS Five Year Oil and Gas Leasing Program. 

Bureau of Ocean Energy Management, Regulation and Enforcement 3 
 

Director’s Preface 

	 Developing the first Geological and Geophysical (G&G) Programmatic Environmental 

Impact Statement (PEIS) for areas in the mid and south Atlantic. The PEIS will 

evaluate potential environmental effects of multiple G&G activities, such as seismic 

surveys, that will be conducted to inform future decisions regarding oil, natural gas, 

and renewable energy development on the OCS in the mid- and south Atlantic planning 

areas. 

We will spend most of FY 2011 implementing the reorganization of BOEMRE and will 

formally establish BOEM and BSEE in October 2011. This request represents an interim step in 

the reorganization process and consolidates requested funding for BOEM and BSEE using the 

pre-existing budget structure. Funds for ONRR are being requested separately as part of the 

Office of the Secretary’s request. Additional delineation of the division of base program 

resources will occur in the coming months, and we will continue consulting Congress throughout 

the next phase of the reorganization. 

BOEMRE’s FY 2012 request is $358.4 million. The request is offset by $151.6 million 

in eligible OCS rental receipts, $8.6 million in cost recovery fees, and $65.0 million in inspection 

fees, resulting in a net request of $133.2 million in appropriated dollars. 

This request is composed of funding increases for resource management functions; safety 

and enforcement functions; and administration, savings, and other budget adjustments. The 

request also contains funding for an independent advisory board and an investigations and 

review unit. 

The request includes a program increase of $92.1 million for safety and enforcement 

functions over the FY 2010 enacted level and $81.9 million over the FY 2011 continuing 

resolution (P.L. 111-322). This request includes program increases over the FY 2010 enacted 

level of $54.7 million to increase OCS operations inspection and monitoring capabilities, $11.4 

million for engineering studies, $8.6 million for oil spill research, $6.9 million for permitting, 

$5.1 million for environmental and operational oversight compliance, $2.9 million for 

management operations, $2.9 million for management operations, $1.2 million for general 

support, and $1.2 million for oil spill response compliance. 

The safety and enforcement request proposes to increase inspection fees by $55.0 million 

from the 2010 level of $10.0 million to $65.0 million. The President’s National Commission on 

the BP Deepwater Horizon Oil Spill and Offshore Drilling report recommended the use of 

industry fees to “provide adequate leasing capabilities and regulatory oversight for the 

increasingly complex energy-related activities being undertaken on the OCS”. It also argued that 

the oil and gas industry “should do significantly more and provide the funds necessary for 

regulation [which] would no longer be funded by taxpayers, but instead by the industry that is 

being permitted to have access to publicly owned resources.” This funding will be used to hire 

new inspectors, improve the tools and systems necessary to implement the risk-based inspection 

program, and expand offshore transportation resources. As a result of the revenue derived from 

increasing the inspection fee, the net cost of the safety and enforcement improvements requested 

in this budget is $37.1 million over the FY 2010 enacted level and $26.9 million over the FY 

2011 continuing resolution (P.L. 111-322). 

4 Bureau of Ocean Energy Management, Regulation and Enforcement 
Director’s Preface 

 An additional $19.5 million over the FY 2010 enacted level and FY 2011 continuing 

resolution (P.L. 111-322) is requested for resource management functions. This request includes 

$8.1 million to fund NEPA and environmental studies staff, $6.5 million for environmental 

studies, $2.5 million for general support, $2.1 million for renewable energy, $1.9 million to 

ensure fair market value, $1.0 million for marine spatial planning, $310,000 for bid evaluation, a 

reduction of $900,000 to remove the Center for Marine Resources and Environmental 

Technology earmark, and a $2.0 million reduction in marine minerals funding. 

Other significant changes include a request for $1.2 million to fund an independent 

advisory board and $5.8 million for an Investigations and Review Unit. 

As indicated by this overview, the reorganization is intended to effect a great deal more 

than merely separating the functions into new organizations – it is about laying the foundation 

for lasting change in the way BOEMRE does business. Investing in this foundation is a critical 

aspect of reform and is an essential step toward creating a sustainable and environmentally 

responsible domestic offshore energy industry. 

Bureau of Ocean Energy Management, Regulation and Enforcement 5 
 

Director’s Preface 

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6 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

General Statement 

FY 2012 PERFORMANCE BUDGET 

Bureau of Ocean Management, Regulation and Enforcement 

General Statement 

Table 1 : Summary of BOEMRE Budget Request 

Budget Authority ($000) 

MMS BOEMRE 

2010 

Enacted /6 2011 CR 7/ 2012 Request 7/ 

Change from 

2010 Enacted 

Total, former Minerals Management Service (MMS) 348,250 371,303 506,252 +158,002 

Less ONRR Funding (Program Transferred to OS) -109,244 -122,101 -147,901 -38,657 

Rescission of Prior Balances 0 -25,000 0 0 

Total - BOEMRE Only 239,006 224,202 358,351 +119,345 

ROMM/OEM Direct Appropriation 1/ 175,217 78,009 118,265 -56,952 

Rescission of Prior Year Balances 2/ 0 -25,000 0 0 

Oil Spill Research Appropriation 6,303 6,303 14,923 +8,620 

Direct Appropriations 181,520 59,312 133,188 -48,332 

Offsetting Rental Receipts 143,730 143,390 151,580 +7,850 

Cost Recovery Fees 13,000 11,500 8,583 -4,417 

Inspection Fees 10,000 10,000 65,000 +55,000 

Total Offsetting Collections 166,730 164,890 225,163 +58,433 

Total Discretionary Budget Authority 348,250 224,202 358,351 +10,101 

Mandatory Budget Authority 

Payments to States 3/ 1,662,244 n/a n/a n/a 

Geothermal Payments to Counties 6,857 n/a n/a n/a

 Coastal Impact Assistance Program 4/ 250,000 0 n/a n/a 

Total Mandatory Budget Authority 1,919,101 0 0 -1,919,101 

Grand Total - Budget Authority - BOEMRE 2,267,351 224,202 358,351 -1,909,000 

FTE 

Former MMS (ROMM/OEM FTE) 1,666 1,672 2,035 +369 

Less ONRR FTE (Transferred to OS) -588 -599 -640 -52 

BOEMRE Only (OEM FTE) 1,078 1,073 1,395 +317 

Reimbursable ROMM/OEM FTE 5/ [130] [64] [64] [0] 

Oil Spill Research Appropriation 18 18 22 +4

 Coastal Impact Assistance Program 4/ 24 24 n/a n/a 

Total FTEs 1,120 1,115 1,417 321 

1/ The Royalty and Offshore Minerals Management (ROMM) appropriation, which formerly funded MMS will be renamed the Ocean Energy Management 

(OEM) appropriation under BOEMRE starting in FY 2012. 

2/ The first FY 2011 Continuing Resolution (P.L. 11-242) rescinded $25 million in prior year balances. 

3/ Includes Mineral Leasing and Associated Payments; National Forest Fund Payments to States; Leases of Lands Acquired for Flood Control, Navigation and 

Allied Purposes; Qualified OCS revenues to Gulf producing states (GOMESA); and National Petroleum Reserve – Alaska state payments. Estimated FY 2011 

payments are shown during this transition year. As of October, 1, 2011 the transition of this account to the Office of Natural Resources Revenue (ONRR) within 

the Assistant Secretary, Policy Management, and Budget will be complete and reflected in the appropriate section of their budget document. 

4/ The Coastal Impact Assistance Program (CIAP) is being moved to the U.S. Fish and Wildlife Service beginning in FY 2012. 

5/ Estimated FTE - ROMM/OEM dedicated to reimbursable activities. 

6/ ONRR is now under the Department of the Interior's Assistant Secretary, Policy, Management, and Budget. 

7/ At completion of this FY 2012 Budget Request a FY 2011 appropriation had not been enacted and BOEMRE was opperating under P.L. 111-322 

(Continuing Resolution through March 4, 2011). The amounts shown here are provided for comparison with the BOEMRE FY 2012 request. 

Because ONRR is funded through the ROMM appropriation in 2011 and has access to offsetting collections, the 2011 budget for ONRR reflects higher 

direct appropriations and lower offsetting collections. In FY 2012, BOEMRE will retain authority for all offsetting collections and ONRR will be funded 

through direct appropriations in the Office of the Secretary. 

Bureau of Ocean Energy Management, Regulation and Enforcement 7 
 

General Statement 

Per Secretarial Order 3329, issued on May 19, 2010, the former Minerals Management Service 

(MMS) is being reorganized into three strong, independent entities with clearly defined roles and 

missions. MMS – with its conflicting missions of promoting resource development, enforcing 

safety regulations, and maximizing revenues from offshore operations combined with a lack of 

resources – could not keep pace with the challenges of overseeing the oil and gas industry 

operating in Outer Continental Shelf waters. 

The reorganization of the former MMS is designed to remove those conflicts by clarifying and 

separating missions across three entities and providing each of the new entities with clear 

missions and additional resources necessary to fulfill those missions. 

On October 1, 2010, the revenue collection arm of the former MMS became the Office of 

Natural Resources Revenue (ONRR) and now reports to the Department of the Interior’s 

Assistant Secretary for Policy, Management and Budget. By October 1, 2011, the offshore 

resource management and safety and enforcement functions will also become separate and 

independent bureaus. 

This request for the Bureau of Ocean Energy Management, Regulation and Enforcement 

(BOEMRE), a temporary organization created for this transition period, will fund the 

reorganization of the former MMS and effectively reform offshore energy development. 

FY 2012 PERFORMANCE BUDGET REQUEST 

BOEMRE 

Bureau of Ocean Energy Management, Regulation and Enforcement 

(BOEMRE) has undertaken an aggressive overhaul of the offshore oil and 

natural gas regulatory process, increasing safety in an effort to ensure that 

oil and gas development is conducted responsibly. BOEMRE has 

implemented enhanced safety standards through new regulations and 

guidance, and is working with and closely monitoring industry to ensure 

compliance. 

BOEMRE is requesting funding through the newly established Ocean Energy Management 

(OEM) appropriation, formerly the Royalty and Offshore Minerals Management (ROMM) 

appropriation, along with the existing Oil Spill Research (OSR) appropriation. The OEM 

appropriation, like the former ROMM appropriation, is partially offset by a portion of Outer 

Continental Shelf (OCS) rental collections, cost recovery fees, and inspection fees. 

In FY 2012, BOEMRE is requesting a discretionary operating account level of $358.4 million, 

which includes $151.6 million from offsetting rental collections, $8.6 million from cost recovery 

fees, $65.0 million from inspection fees, $118.3 million from direct OEM appropriations, and 

$14.9 million from the OSR appropriation. This request excludes funds requested for the newly 

8 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

General Statement 

established Office of Natural Resources Revenue (ONRR) which are being requested separately 

within the Office of the Secretary appropriation. 

REORGANIZATION AND REFORM 

On April 20, 2010, a loss of well control occurred and resulted in an explosion, fire, and the 

eventual sinking of the Deepwater Horizon drilling rig, a disaster that killed 11 workers, 

seriously injured many others, and ultimately resulted in the release of nearly five million barrels 

of oil into the Gulf of Mexico over a period of almost three months, creating the largest oil spill 

ever in American waters. 

In response, the Department of the Interior has launched the most aggressive and comprehensive 

reforms in U.S. history to strengthen oversight and regulation of offshore oil and gas operations 

in order to reduce the risk of a similar disaster in the future. Multiple investigations and analyses 

were set in motion, including those conducted by the DOI Safety Oversight Board, the National 

Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, and the National 

Academy of Engineering. The results of these investigations will continue to inform DOI’s 

reorganization and reform efforts. 

The Need for Reform 

On January 11, 2011, the National Commission on the BP Deepwater Horizon Oil Spill and 

Offshore Drilling released its full report, containing key findings from its extensive investigation 

into the causes of the blowout of BP’s Macondo well. 

“...the Macondo blowout was the product of several individual missteps and oversights 

by BP, Halliburton, and Transocean, which government regulators lacked the authority, 

the necessary resources, and the technical expertise to prevent.” 

“The blowout was not the product of a series of aberrational decisions made by rogue 

industry or government officials that could not have been anticipated or expected to occur 

again. Rather, the root causes are systemic, and absent significant reform in both 

industry practices and government policies, might well recur.” 

The Commission report goes on to say that the responsibilities for these shortfalls are not those 

of MMS alone: “But even if MMS had the resources and political support needed to promulgate 

the kinds of regulations necessary to reduce the risk, it would still have lacked personnel with the 

kinds of expertise and training needed to enforce those regulations effectively.” The 

reorganization and related reforms that would be funded by this request are intended to address 

these shortfalls while at the same time allowing for the continuity of operations and ongoing 

production activity. 

Organizational Reforms 

Three strong, independent entities are being created to carry out the missions of promoting 

energy development, regulating offshore drilling, and collecting revenues. In the past, these 

Bureau of Ocean Energy Management, Regulation and Enforcement 9 
 

General Statement 

three conflicting functions resided within the same bureau, creating the potential for internal 

conflict and a strong risk of a pro-development bias. 

The reorganization will specifically separate resource management from safety and oversight 

to allow permitting engineers and inspectors greater independence, more budgetary autonomy, 

and clearer senior leadership focus. The goal is to create tough-minded, but fair, regulators who 

can effectively evaluate and keep pace with the risks of offshore drilling and will promote the 

development of safety cultures in offshore operators. 

In addition, this new structure will ensure that robust environmental analyses are conducted so 

that the potential environmental effects of proposed operations are given appropriate weight 

during decision-making related to resource management and that leasing and plan approval 

activities are properly balanced. These processes must be both rigorous and efficient so that 

operations can go forward in a timely manner with a complete understanding of their potential 

environmental impacts and appropriate mitigation against those potential environmental effects 

in place. 

The Bureau of Ocean Energy Management (BOEM) will be responsible for managing 

development of the nation’s offshore energy resources in an environmentally and economically 

responsible way. Functions will include: Leasing, Plan Administration, Environmental Studies, 

National Environmental Policy Act (NEPA) Analysis, Resource Evaluation, Economic Analysis 

and the Renewable Energy Program. 

The Bureau of Safety and Environmental Enforcement (BSEE) will enforce safety and 

environmental regulations. Functions will include: Offshore Regulatory Programs, Research, 

Oil Spill Response, all field operations including Permitting and Inspections, and newly formed 

Training and Environmental Compliance functions. 

The Office of Natural Resources Revenue (ONRR) was transferred to the Department of the 

Interior’s Office of the Assistant Secretary for Policy, Management and Budget (PMB) on 

October 1, 2010. ONRR collects and disburses on average approximately $10 billion in annual 

revenues for the Nation, states, and American Indians. The office performs a variety of critical 

functions in pursuit of its mission to ensure the transparent and robust collections of royalties, 

rents, fees, and other revenues, including auditing of industry to determine compliance with the 

terms of each lease; enforcement against violators; development of regulations with respect to 

revenue valuation and collection and enforcement activities; assessment of civil and criminal 

penalties related to royalty and revenue collection; and cooperation with related criminal 

investigations and prosecutions. 

Finally, an Investigations and Review Unit (IRU) has been established for the purpose of 

providing the internal capability within BOEMRE to promptly and credibly respond to 

allegations or evidence of misconduct and unethical behavior by employees as well as by 

industry; to oversee and coordinate BOEMRE’s internal auditing, regulatory oversight and 

enforcement systems and programs; and to assure BOEMRE’s ability to respond swiftly to 

emerging issues and crises, including significant incidents such as spills, accidents and other 

crises. 

10 Bureau of Ocean Energy Management, Regulation and Enforcement 
General Statement 

As appropriate, the IRU’s functions and capabilities will continue in the new organizations and 

adjustments will be made as needed to incorporate recommendations and findings from ongoing 

investigations and reorganization studies. 

Offshore Drilling Safety and Management Reforms 

In September 2010, BOEMRE announced two new rules that raise the bar for the oil and gas 

industry’s safety and environmental practices on the Outer Continental Shelf: one that 

strengthens requirements for equipment, well control systems, and blowout prevention practices 

and another that improves workplace safety by reducing the risk of human error on drilling rigs 

and platforms. 

The first rule, the Drilling Safety Rule, immediately put in place tough new standards for well 

design, casing and cementing, and well control equipment, such as blowout preventers (BOPs). 

Operators are now required to obtain independent third-party inspections and certification of 

each stage of the proposed drilling process. An engineer must also certify that blowout 

preventers meet new standards for testing and maintenance and are capable of severing the drill 

pipe under the pressures anticipated for the well. 

The second rule is the Workplace Safety Rule, which aims to reduce the human and 

organizational errors that lie at the heart of many accidents and oil spills. Operators on the OCS 

now must develop a comprehensive safety and environmental management program that 

identifies the potential hazards and risk-reduction strategies for all phases of activity, from well 

design and construction, to operation and maintenance, and finally to the decommissioning of 

platforms. 

BOEMRE has also imposed more stringent requirements that companies must meet in applying 

for permits to drill: 

	 Operators must also provide additional information regarding their ability to respond to a 

blowout and to a worst-case oil spill scenario when they request new drilling permits; and 

	 Responsibility will flow directly from the individuals responsible for making decisions 

on behalf of these companies. From now on, energy company officials must certify that 

their operations comply with all safety regulations. 

BOEMRE launched a full review of our NEPA categorical exclusions, which are no longer being 

used to approve proposed deepwater drilling projects. These new policies substantially raise the 

standards for all offshore operators. 

BOEMRE, in collaboration with other federal agencies, is conducting comprehensive new 

environmental analyses of the Gulf of Mexico and the Arctic. These analyses will help inform 

future leasing and development decisions. 

Bureau of Ocean Energy Management, Regulation and Enforcement 11 
 

General Statement 

Coastal Impact Assistance Program 

The Energy Policy Act of 2005 (Public Law 109-58) 

was signed into law on August 8, 2005. Section 384 

of the Act establishes the Coastal Impact Assistance 

Program (CIAP) which authorizes funds to be 

distributed to Outer Continental Shelf (OCS) oil and 

gas producing states for the conservation, protection 

and preservation of coastal areas, including wetlands. 

Under the CIAP, the Secretary of the Interior is 

authorized to distribute to producing States and coastal 

political subdivisions (CPSs) $250 million for each of 

the fiscal years 2007 through 2010. This money will 

be shared among Alabama, Alaska, California, 

Louisiana, Mississippi, and Texas; and will be allocated to each producing State and eligible 

CPS based upon allocation formulas prescribed b y the Act. 

From the inception of the program, the Bureau of Ocean Energy Management Regulation and 

Enforcement (BOEMRE), formally the Minerals Management Service (MMS), was designated 

to implement and oversee the program. However, in FY 2012, the Coastal Impact Assistance 

Program will be transferred to the Fish & Wildlife Service (FWS) since the purpose of the CIAP 

aligns more directly with the mission of FWS. The transfer will allow BOEMRE to focus on 

programs directly aligned with its mission. 

FY 2012 BUDGET HIGHLIGHTS 

As part of the Department of the Interior’s New Energy Frontier Initiative, BOEMRE’s FY 2012 

request is $358.4 million. The request is offset by $151.6 million in eligible OCS rental receipts, 

$8.6 million in cost recovery fees, and $65.0 million in inspection fees, resulting in a net request 

of $133.2 million. 

This request is composed of funding increases for resource management functions; safety and 

enforcement functions; and administration, savings, and other budget adjustments. The request 

also contains funding for an independent advisory board and an investigations and review unit as 

detailed below. 

12 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

 

General Statement 

Table 2: FY 2012 Analysis of Budgetary Changes 

Organization Item FTE ($000) 

FY 2010 BOEMRE - Direct Appropriation 1,684 181,520 

Baseline 

Adjustment Reorganization: Transfer to ONRR/PMB -588 -109,244 

FY 2010 BOEMRE - Revised Baseline - Direct Appropriation* 1,096 72,276 

FY 2011 Continuing Resolution (P.L. 111-322)** 0 +12,036 

FY 2012 BOEMRE Changes 

Administration, 

Savings, and 

Adjustments 

Fixed Costs 

Reorganization Efficiencies and Budget Changes 

Administrative Savings 

Offsetting Collections (rental receipts and cost recovery fees) 

0 

+1 

0 

0 

+1,192 

+1,058 

-1,432 

-5,273 

Subtotal: +1 -4,455 

Resource 

Management 

NEPA and Environmental Studies Staff 

Environmental Studies 

General Support 

Renewable Energy 

Fair Market Value 

Marine Spatial Planning 

Bid Evaluation 

Center for Marine Resources and Environmental Technology 

Marine Minerals 

+52 

0 

0 

+11 

+1 

+4 

+2 

0 

0 

+8,063 

+6,500 

+2,527 

+2,050 

+1,930 

+1,000 

+310 

-900 

-2,000 

Subtotal: +70 +19,480 

Safety and 

Environmental 

Enforcement 

Inspection/Monitoring Capability*** 

Engineering Studies - TA&R 

Oil Spill Research 

Permitting 

Environmental & Operational Oversight Compliance 

Management Operations Support 

General Support 

Oil Spill Response Compliance 

Inspection Fees 

+116 

+12 

+4 

+41 

+33 

+12 

0 

+8 

0 

+44,483 

+11,360 

+8,620 

+6,945 

+5,115 

+2,860 

+1,246 

+1,240 

-55,000 

Subtotal: +226 +26,869 

Other Investigations and Review Unit 

Independent Advisory Board 

+20 

+4 

+5,782 

+1,200 

Subtotal: +24 +6,982 

BOEMRE FY 2012 Request - Direct Appropriation 1,417 133,188 

*The direct appropriation funding shown here is provided for comparison with the BOEMRE FY 2012 request. Because 

ONRR is funded through the ROMM appropriation in 2010 and 2011 and has access to offsetting collections, the actual 

budget reflects higher direct appropriations and lower offsetting collections. 

**P.L. 111-322 provided a total of $24.9 million in direct appropriations over FY 2010. Of this amount, $12.9 million 

was designated for ONRR. P.L. 111-242 (a previous CR) included a $25 million rescission of prior year unobligated 

balances for the OCS Connect Project for which budget authority is restored in FY 2012. FTE hired with funding from 

Bureau of Ocean Energy Management, Regulation and Enforcement 13 
 

General Statement 

The Budget proposes the following discretionary funding increases and decreases relative to the 

2010 enacted level. Limited funding for the inspection capability/monitoring initiative was 

received under P.L. 111-322 and is discussed in that initiative and in the regulatory section. 

Fixed Costs (+$1,192,000; 0 FTE): Fixed costs of $1.2 million are fully funded within this 

request. 

Reorganization Efficiencies and Budget Changes (+$1,058,000; + 1 FTE): An increase of 

$3,502,000 is required to maintain existing administrative staff and meet non-variable costs as 

funding from revenue management sources will no longer be available. An amount of $150,000 

and one FTE is requested to meet increased administrative workload resulting from the 

expansion of the BOEMRE workforce. These adjustments are offset by anticipated 

reorganization efficiencies totaling $2.6 million that will be achieved through more efficient use 

of existing facilities and consolidation during the reorganization. 

Administrative Cost Savings: (-$1,432,000; +0 FTE): In support of the President’s 

commitment to fiscal discipline and spending constraints, BOEMRE is participating in an 

aggressive Department-wide effort to curb non-essential administrative spending. In accordance 

with this initiative, BOEMRE’s justification assumes $447,000 in savings in FY 2012 against 

actual FY 2010 expenditures. A specific implementation plan will be completed in the near 

future; however, the activities where savings will be realized include: advisory contracts; travel 

and transportation of people and things, including employee relations; printing; and supplies. 

There will be no programmatic impact of implementing these savings initiatives, as functions 

will be performed in a more efficient and more effective manner. Actions to address the 

Accountable Government Initiative and reduce these expenses builds upon the management 

efficiency efforts in travel, relocation, and strategic sourcing proposed in the FY 2011 budget 

request resulting in total savings of $1.4 million. 

Offsetting Collections (-$5,273,000; 0 FTE): In FY 2012, BOEMRE requests to retain $160.2 

million from eligible offsetting rental receipts and cost recovery fees to defray the costs of 

bureau operations. This is a $5.3 million increase (because offsetting collections reduce required 

direct appropriations from the Treasury they are often presented as a negative number) compared 

to the FY 2011 level. This increase is composed of an $8.2 million increase in offsetting rental 

collections and a $2.9 million reduction in revenue from cost recovery fees. 

NEPA and Environmental Studies Staff (+$8,063,000; +52 FTE): The need for additional 

environmental studies also requires staff to manage the studies, both scientific staff and 

coordination staff, including Contracting Officer’s Representatives (CORs) for the 

Environmental Studies Program (ESP). As planned in FY 2011, BOEM will continue to expand 

its environmental review requirements and capability in FY 2012, at both the pre-lease and postlease stages. At the pre-lease review stage, environmental specialists will begin their 

coordination efforts with the environmental compliance activity in the Bureau of Safety and 

Environmental Enforcement (BSEE). Coordination with BSEE will continue at the post-lease 

stage. 

The staff will consist of marine archaeologists; social scientists and economists; benthic/fisheries 

biologists; avian and marine mammal biologists; protected species biologists, air-quality experts 

14 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

General Statement 

and/or meteorologists; physical, biological and chemical oceanographers; water-quality/pollution 

specialists, and other disciplines. Scientific staff will conduct environmental and socioeconomic 

resource impact analyses required for the preparation of environmental impact statements and for 

an increased number of site-specific environmental assessments. These staff will also serve the 

ESP as CORs for all phases of studies procurement and monitoring. 

The coordination staff will consist mainly of environmental and technical professionals leading 

NEPA efforts related to the review and the analysis required for effective pre- and post-lease 

environmental assessment and compliance. Coordination staff would be utilized to assist BSEE 

personnel with environmental investigations and/or compliance assessments. 

Environmental Studies (+$6,500,000; +0 FTE): In FY 2011, the Environmental Studies 

Program (ESP) began studies needed to support high priority information needs related to the 

Deepwater Horizon Oil Spill. Also, renewable energy requirements are increasing and 

will include establishment of baselines and monitoring. Many of these studies will be ongoing 

for several years, and the additional funds in FY 2012 are needed to continue these studies and to 

initiate additional studies. This information will be critical in order to comply with NEPA 

regulations and an extensive suite of environmental laws (including Marine Mammal Protection 

Act (MMPA), Endangered Species Act (ESA), National Historic Preservation Act (NHPA), 

Coastal Zone Management Act (CZMA), Magnuson-Stevens Fishery Conservation and 

Management Act (MSFCMA), and Migratory Bird Treaty Act (MBTA). As it has in the past, 

the ESP will leverage its funds with other interested Federal and private stakeholders, while 

ensuring that it fulfills its mission to acquire applied research specific to the oil and gas, marine 

minerals, and renewable energy programs. 

General Support – Resource Management (+$2,527,000; +0 FTE): The ongoing 

reorganization and enhancement of BOEMRE activities includes efforts to attract environmental 

scientists, engineers, and support personnel needed to support the thorough review of offshore 

energy development activities. These funds will provide for general support needs such as rent, 

information technology (IT) and general equipment, communications, utilities, supplies, 

materials, and travel for the additional personnel. 

Renewable Energy (+2,050,000; +11 FTE): The requested funds will set the stage for 

BOEMRE to work with applicants for offshore renewable energy/alternative use projects, with a 

focus on specific needs in the Atlantic and Pacific OCS. A significant increase in workload is 

expected in both the Atlantic and Pacific OCS for conducting environmental reviews, processing 

commercial leases, coordinating with stakeholders, and conducting inspection and enforcement 

activities. 

The Secretary has announced an offshore wind initiative called “Smart from the Start” to 

facilitate the rapid and responsible development of renewable energy on the OCS. One of the 

main components of this initiative is identifying priority areas up and down the Atlantic Coast 

for appropriate wind development. BOEMRE and the department, in close partnership with 

states, stakeholders, and tribes have been working to identify what are called Wind Energy Areas 

off the Atlantic coast. These Wind Energy Areas use coordinated environmental studies, largescale planning and expedited approval processes to speed offshore wind energy development. 

Based on stakeholder and public participation, BOEMRE will prepare regional environmental 

Bureau of Ocean Energy Management, Regulation and Enforcement 15 
 

 

 

General Statement 

assessments in the Wind Energy Areas to evaluate the effects of leasing and site assessment 

activities in the areas to be leased. If no significant impacts are identified, BOEMRE could offer 

leases in these mid-Atlantic areas as early as the end of 2011 or early 2012. Comprehensive sitespecific NEPA review will still need to be conducted for the construction of any individual wind 

power facility, and BOEMRE will work directly with project managers to ensure that those 

reviews take place on aggressive schedules. 

Fair Market Value (+$1,930,000; +1 FTE): This initiative will support activities to thoroughly 

assess the oil and gas potential and fair market value of OCS tracts offered for lease through 

purchase of critical software, hardware, data, and the hiring of an additional analysis staff 

member. This funding will contribute to ensuring the Nation receives a fair return for publicly 

owned energy resources. 

Marine Spatial Planning (+$1,000,000; +4 FTE): The requested funds will enable BOEMRE to 

coordinate Coastal and Marine Spatial Planning (CMSP) efforts with other Federal and State 

agencies, determine information and data needs, make sure these needs are met to effectively 

implement CMSP policy, and fulfill the requirement under Executive Order 13547 Stewardship 

of the Ocean, Our Coasts, and the Great Lakes. BOEMRE has been designated as the lead 

bureau in DOI for CMSP and will significantly participate in its implementation. BOEMRE may 

be named the lead federal agency for some of the regional CMSP teams and tasked with 

developing comprehensive plans over the next several years. Coordination of CMSP with other 

OCS users and regulators is becoming more important as new uses and potential conflicts grow. 

With oil and natural gas, renewable energy, shipping/navigation, military uses, recreational and 

commercial fishing, and others activities competing for space on the OCS, it is becoming more 

important to coordinate the growing demand for multiple uses. This function is critical to the 

integrity of the 5-Year Oil and Gas Leasing Program that inherently balances these various 

competing interests and contributes to determining the size, timing, and location of leasing 

activity on the OCS. This initiative will complement the FY 2010 Multipurpose Marine 

Cadastre initiative, a marine information system that brings together data layers about 

environmental, physical, political, and social aspects of the OCS. In a single, interactively 

generated map, users can see all official boundaries, rights, restrictions, and responsibilities in 

State and Federal waters. BOEMRE is coordinating and collaborating with many agencies and 

groups in the development and implementation of this cadastre. In FY 2012, support for Gulf of 

Mexico, Atlantic, and Arctic CMSP activities will be a significant focus of this initiative. 

Bid Evaluation (+$310,000; +2 FTE): Additional staff are needed to interpret new data and 

information in order to complete bid adequacy determinations, estimate discovered volumes for 

potential energy legislation and policy analysis, develop lease sale analogs for new discoveries, 

and revise assessments of undiscovered resource potential. These activities contribute to 

ensuring that fair market value is received for public resources. 

Center for Marine Resources and Environmental Technology (CMRET) (-$900,000; -0 FTE): 

BOEMRE proposes to eliminate the earmarked funding for the CMRET in order to redirect the 

funding to higher priorities. 

Marine Minerals (-$2,000,000; 0 FTE): This reduction is being offered to offset priority budget 

increases and will eliminate funding for BOEMRE’s marine minerals program. Under this 

16 Bureau of Ocean Energy Management, Regulation and Enforcement 
General Statement 

program, BOEMRE works with Federal, State and local entities to issue leases for sand and 

gravel in the OCS. BOEMRE receives eight to 10 requests per year. BOEMRE retains the 

authority to process individual lease requests for sand and gravel on a case-by-case basis, funds 

permitting. 

Inspection/Monitoring Capability (+$44,483,000; +116 FTE): Additional staff are needed to 

accelerate implementation of the new inspection and oversight regime currently under 

development. This will require additional personnel with diverse backgrounds to conduct varied 

types of inspections and oversee high risk activities, including critical drilling activities such as 

BOP testing and cement/casing activities as they approach production zones, and emergency shut 

down tests on production platforms. BOEMRE is actively evaluating significant process 

reforms, such as inspecting in teams rather than solo, implementing a stronger risk-based 

inspection strategy that will require additional oversight on higher risk activities, redesigning 

training protocols, and incorporating new technologies such as real-time monitoring of key 

drilling activities. The request includes funding for increased offshore transportation costs. P.L. 

111-322, provided a net amount of $10.2 million for this purpose, which BOEMRE is using to 

begin implementation. 

Engineering Studies – TA&R (+$11,360,000; +12 FTE): The Deepwater Horizon oil spill 

brought to the forefront the need to raise the level of resources dedicated to the evaluation of 

current and proposed oil and gas exploration and development technology. Since its inception 

over three decades ago, the TA&R Program budget has not kept pace with the increased cost of 

research and demands for TA&R managed research. In its January 2011 report to the President, 

the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling 

identified the need for increased safety and containment research both within industry and the 

federal government in order to maintain the capability to address emergencies as drilling 

technology moved operations into deeper waters and further from shore. The Commission’s 

findings were substantiated by testimony by industry and academia experts who identified the 

lack of research for the offshore oil and gas sector. The Commission determined that that neither 

government nor industry had invested sufficiently in research, development, and demonstration 

to improve containment or response technologies. The Commission found funding to be 

inadequate and stated that “Congress needs to make funding the agencies responsible for 

regulating the oil and gas development a priority in order to ensure a safer and more 

environmentally responsible industry in the future” and that the “desire to tap resources in deeper 

waters should be accompanied by equivalent investments in subsea equipment, operator training, 

research and development for containment and response technologies.” 

In addition to further deepwater research, the Commission recommended “an immediate, 

comprehensive federal research effort to provide a foundation of scientific information on the 

Arctic” and that “a comprehensive interagency research program to address oil-spill containment 

and response issues in the Arctic should be developed, funded, and implemented within the 

federal government.” Although industry has a significant role and responsibility to conduct this 

research to ensure its operations are safe, as the safety regulator, BOEMRE (and the future 

BSEE) need to have sufficient technical capabilities to conduct its own research and verify that 

the information and research provided by industry is accurate. 

Bureau of Ocean Energy Management, Regulation and Enforcement 17 
 

 

General Statement 

Examples of near-term deepwater safety and containment research by the TA&R Program 

include assessment of subsurface blow-out preventer design, performance, maintenance, and 

inspection; cementing, barrier, and containment practices and procedures; remotely operated 

vehicle intervention and capabilities; and wild well control technology. The TA&R Program 

will continue to transfer research results to rule writers, investigators, plan reviewers, and others 

that need this information to improve the safety of offshore operations. 

Oil Spill Research (+$8,620,000; +4 FTE): Increased funding for the Oil Spill Research 

Program is needed to address several key knowledge gaps brought to light by the Deepwater 

Horizon oil spill. The program leverages its ocean research funding, often providing funds to 

address needed data gathering through support to academics and university partners. Agencies 

including NOAA, the Navy, and the National Science Foundation often contribute funds or ship 

time to these efforts as they have ancillary needs for information to support their own missions. 

The program will continue to play a leadership role in both technology assessment and spill 

simulation. 

Permitting (+$6,945,000; +41 FTE): Additional staff are needed to review and process lease 

management, qualification, bonding and unitization requests and issues, as well as requests for 

development activities, such as plan and permit processing and approval. A recently published 

report by the Department of the Interior OCS Oversight Safety Board to the Secretary of the 

Interior states that the “Gulf of Mexico (GOM) district offices are challenged by the volume and 

complexity of permit applications and the lack of a standardized engineering review protocol. In 

addition, the Pacific Region’s permitting staff is facing significant succession issues.” It goes on 

to state that the workforce associated with regulating day-to-day activities has not increased 

proportionately to work demands, creating challenges in the need to balance an adequate analysis 

of permit requests with the need to be responsive to industry. For instance, Applications for 

Permits to Modify (APMs) have increased by 71 percent from 1,246 in 2005 to 2,136 in 2009 in 

the New Orleans District. In the Pacific, 80 percent of current permitting employees will be 

retirement eligible in the next 2.5 years. The requested funds will enable BOEMRE to ensure 

that staffing levels are commensurate with increasing workloads. 

Environmental & Operational Oversight Compliance (+$5,115,000; +33 FTE): In FY 2012, 

BSEE will continue to build its compliance capabilities, both environmental and operational, and 

will work closely with BOEM to: 

 participate in NEPA activities throughout the process, specifically in developing postlease mitigation measures; 

 issue safety and environmental protection related rules and regulations; and 

 provide independent safety, engineering and technical authorization before any 

exploration, development or production plans are implemented. 

Establishing a new environmental enforcement arm and expanding operational safety capabilities 

of BSEE is imperative. Development of robust regulations and policies, and subsequent industry 

and stakeholder outreach, is necessary to ensure the right mix of safety and environmental 

protection to minimize the risk of safety and environmental accidents. BSEE must coordinate 

closely with BOEM to capitalize on efficiencies related to bureau inter-dependencies, while 

recognizing and avoiding conflicts that may otherwise result in bureaucratic delays to safe 

exploration and development. Frequent independent, technical reviews will ensure regulations, 

18 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

 

General Statement 

policy, and guidance keep pace with the complexities of OCS activities, including the use of new 

exploration and development technologies in frontier areas. Environmental mitigation and safety 

measures will need to be tested, verified, and improved in an adaptive management framework. 

Information systems may need to be enhanced to better track compliance with new safety and 

environmental requirements. A substantial effort will be required in explaining the new 

requirements to industry and interested stakeholders. 

Management Operations Support (+$2,860,000; +12 FTE): Funds are requested to staff 

leadership and support positions for the new Bureau of Safety and Environmental Enforcement 

(BSEE) bureau directorate. As the bureau becomes further established, funds will be needed to 

support the increased operating activities of this office. While BOEMRE is developing 

reorganization plans with the goal of minimizing administrative redundancy, existing leadership 

funding will be allocated to BOEM. Therefore, funding to support the leadership of BSEE is 

required. 

General Support – Safety and Environmental Enforcement (+$1,246,000; +0 FTE): The 

ongoing reorganization and enhancement of BOEMRE activities includes efforts to attract 

additional engineers, scientists, and support personnel needed to support the thorough review of 

offshore energy development activities. These funds will provide for general support needs such 

as rent, information technology (IT) and general equipment, communications, utilities, supplies, 

materials, and travel for the additional personnel. 

Oil Spill Response Compliance (+$1,240,000; +8 FTE): Additional staff are needed to ensure 

an adequate level of oil spill response oversight, including review and approval of oil spill 

response plans (OSRP) and industry compliance inspections. OSRP reviews are conducted for 

new plans, biennial updates, amendments and plan revisions, and confirm that an operator has 

proper equipment, people, and structures in place to respond to an oil spill. Compliance 

inspections, such as unannounced oil spill exercises and unannounced response equipment 

inspections, test and evaluate an operator’s preparedness level. Staff also verify response 

personnel classroom and hands-on training and participate in table top exercises in which 

response team members simulate response actions using their OSRP. The experience with the 

Deepwater Horizon oil spill highlighted the need for increased oversight of company OSRPs. 

Inspection Fee (-$55,000,000; 0 FTE): The funding increases requested in this budget would 

be partially offset by $65 million in collections from OCS inspection fees, a $55 million increase 

in revenue relative to the 2010 enacted level. New fees would be charged on drilling rigs (+$17 

million) and the existing fees on fixed OCS structures subject to inspection would be increased 

(+$48 million). This proposal will transfer the cost of offshore inspections from the taxpayers 

to the offshore oil and gas industry. The proposal is consistent with the recommendations of the 

President’s National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling. 

In its report, the Commission specifically notes that regulation of the oil and gas industry should 

“no longer be funded by taxpayers but instead by the industry that is being permitted to have 

access to a publicly-owned resource.” 

Investigations and Review Unit (+$5,782,000; +20 FTE): Funding is requested to staff and 

equip an Investigations and Review Unit (IRU), a team of professionals with law enforcement 

backgrounds or technical expertise whose mission is to: promptly and credibly respond to 

Bureau of Ocean Energy Management, Regulation and Enforcement 19 
 

 

General Statement 

allegations or evidence of misconduct and unethical behavior by bureau employees; pursue 

allegations of misconduct by oil and gas companies involved in offshore energy projects; and 

assure the bureau's ability to respond swiftly to emerging issues and crises, including significant 

incidents such as spills and accidents. The IRU will evaluate all information submitted and will, 

where appropriate, conduct further investigation. The IRU will be sharing allegations of 

misconduct with the Department of the Interior’s Office of Inspector General (OIG), and they 

will jointly determine which office conducts any investigation of those allegations. 

Independent Advisory Board (+$1,200,000; +4 FTE): The Board was conceived by the 

Reorganization Team and would be charged with reviewing BOEM internal policies, procedures, 

rules, and regulations. It would also provide peer review through participation of BSEE staff 

who would serve as informal advisors. Requested funds would also cover operating costs such 

as travel and space. 

Mandatory Proposals and Other Reforms in the FY 2012 Budget: 

Fee on Nonproducing Oil and Gas Leases: The budget includes a proposal for a $4/acre fee 

(indexed annually for inflation) on all new nonproducing Federal oil and gas leases (onshore and 

offshore). This fee provides a financial incentive for oil and gas companies to either get leases 

into production or relinquish them so that the tracts can be re-leased and developed by new 

parties. The fee is expected to generate revenues of $25.0 million in 2012 and $874.0 million 

over 10 years. 

Repeal of Deep Gas Royalty Incentives: The budget proposes to repeal Section 344 of the 

Energy Policy Act of 2005, which extended and expanded existing deep gas royalty relief. 

Based on current natural gas price projections, the Budget does not assume savings from this 

change; however, the proposal could generate savings to the Treasury if future natural gas prices 

end up below current projections. 

PERFORMANCE SUMMARY 

The FY 2012 budget request of $358.4 million provides the resources needed to conduct 

BOEMRE’s leasing, resource evaluation, environmental studies, and regulatory activities. The 

proposal also supports BOEMRE’s Renewable Energy/Alternate Use program and its efforts to 

develop the Nation’s offshore renewable energy resources in an environmentally responsible and 

safe manner that directly supports the Secretary’s High Priority Performance Goal (HPPG) for 

Renewable Energy. 

Performance Management 

In accordance with the Government Performance and Results Act of 1993, the DOI Strategic 

Plan has been reviewed and updated in compliance with the three-year update requirement. The 

Department, in consultation with the bureaus, reviewed the organization and construct of the 

Strategic Plan in light of the Administration’s priorities, goals, and objectives; recent innovations 

and efficiencies in delivering mission objectives; and the goal to provide a more integrated and 

focused approach to track performance across a wide range of DOI programs. Although many of 

the outcome goals and performance measures remain consistent from the previous Strategic Plan, 

20 Bureau of Ocean Energy Management, Regulation and Enforcement 
General Statement 

the organizing principles for those goals and measures reflect the new approach to meeting the 

Department’s mission responsibilities. The DOI Strategic Plan for FY 2011 - FY 2016 is the 

foundational structure for the description of program performance measurement and planning for 

the FY 2012 President’s Budget. Budget and program plans for FY 2012 are fully consistent 

with the goals, outcomes, and measures described in the new version of the DOI Strategic Plan. 

Renewable Energy High Priority Performance Goal 

BOEMRE supports the Renewable Energy High Priority Performance Goal (HPPG). The HPPG 

is as follows: Increase approved capacity for production of renewable (solar, wind, and 

geothermal) energy resources on Department of Interior managed lands, while ensuring full 

environmental review, to at least 10,000 megawatts by the end of 2012. 

As with all programs, BOEMRE management closely monitors the renewable energy program. 

One of the mechanisms used to monitor the renewable energy initiative and BOEMRE’s 

contribution toward the renewable energy HPPG is via performance metrics, bureau level 

metrics are included within the Goal Performance Table. The Department is presently 

employing a set of internal measures and milestones to monitor and track achievement of the 

HPPG. Progress in these areas will be reported and reviewed throughout the year by the Deputy 

Secretary’s Principals Operations Group to identify and address any need for enhanced 

coordination or policy measures to address barriers to the achievement of the HPPG. 

The first step in the leasing process is to identify a proposed lease area and determine whether or 

not there is competition for that area. If BOEMRE determines that there is competition, it will 

undertake a public consultation and decision process including environmental analyses such as 

those required by NEPA. The BOEMRE tracks the number of formal actions it publishes in the 

Federal Register to initiate the leasing process for renewable energy (i.e., Requests for Interest 

(RFI)). In April 2010, BOEMRE issued the first RFI for offshore renewable energy 

development off the coast of Delaware and has since issued RFIs for Maryland and 

Massachusetts. BOEMRE anticipates initiating five leasing processes in FY 2011 and another 

five in FY 2012. 

The BOEMRE will issue two types of leases for renewable energy activities - commercial leases 

for development and power generation or transmission; and limited leases for resource 

assessment and technology testing. BOEMRE tracks the number of leases issued (both limited 

and commercial) for renewable energy activities. To issue commercial leases, BOEMRE must 

conduct a multi-step process entailing information gathering, consultation with interested and 

affected parties, NEPA review and compliance, and analysis in light of other applicable Federal 

requirements for each affected state. 

The number of leases issued is highly dependent on the amount of interest and demand for the 

leases. The BOEMRE issued four limited leases (3 in New Jersey, 1 in Delaware) for testing and 

data collection on the OCS during FY 2010. If other interested developers submit applications 

for limited leases in the near future, there may be the potential to complete the required NEPA 

analysis and issue additional limited leases in FY 2012; however, BOEMRE does not currently 

have any active applications in process. Furthermore, buoy technology is gaining acceptance 

and could greatly reduce the need for meteorological towers (sodar and lidar technology). 

Bureau of Ocean Energy Management, Regulation and Enforcement 21 
 

General Statement 

On April 28, 2010, Secretary Salazar issued a Record of Decision approving the Cape Wind 

renewable energy project off the coast of Massachusetts. Secretary Salazar and Cape Wind 

Associates President Jim Gordon signed the nation’s first non-competitive lease for commercial 

wind energy development on the OCS on October 6, 2010. The project area offered in the lease 

is comprised of approximately 46 square miles on the OCS in Nantucket Sound. 

In addition, in FY 2012, there may be the potential for a Right-of-Way grant to be issued for a 

renewable energy transmission project off the Atlantic Coast. BOEMRE anticipates being able 

to issue additional commercial leases for the offshore development of renewable energy in FY 

2012 after the required public consultation and environmental analyses are completed. 

On November 23, 2010, Secretary Salazar announced an initiative called “Smart from the Start,” 

to facilitate the siting, leasing and construction of new projects. The initiative included several 

elements, including (1) a plan to identify “Wind Energy Areas” offshore Atlantic states and to 

study those areas to attract development; (2) a plan to prepare regional environmental 

assessments for those areas to support the issuance of a lease and foreseeable site 

characterization activities; and (3) a proposed rule change to eliminate a duplicative public notice 

from the non-competitive leasing process. The initiative is expected to significantly reduce the 

time required for developers to obtain a commercial lease, while meeting all of the Department’s 

legal and environmental responsibilities. 

The BOEMRE recognizes the importance of coordinating and consulting with local and Federal 

stakeholders to develop a comprehensive renewable energy program for the OCS. BOEMRE 

tracks coordination and consultation activities. During FY 2010, BOEMRE noted seven 

cooperative planning and leasing efforts undertaken with relevant Federal agencies and affected 

state, local, and tribal governments. During FY 2010, BOEMRE established and held initial 

Federal/State Task Force meetings with seven states (i.e., Delaware, Rhode Island, 

Massachusetts, New Jersey, Virginia, Maryland, and Maine). In 2011 BOEMRE held initial 

stakeholder meetings with New York and North Carolina. BOEMRE has responded to requests 

from multiple other states (including Oregon, Florida, and South Carolina) to establish task 

forces. In FY 2011 and FY 2012, BOEMRE will continue to support these existing state 

taskforces as well as establish new ones and participate in other stakeholder collaboratives such 

as the West Coast Governors’ Agreement on Ocean Health (WCGA), the California Working 

Group on Renewable Energy, and the Hawaii Clean Energy Initiative. A total of 

15 collaboratives are planned for FY 2011 and another 12 are planned for FY 2012. 

22 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

General Statement 

Figure 1: BOEMRE Organizational Chart 

Bureau of Ocean Energy Management, Regulation and Enforcement 23 
 

General Statement 

Bureau of Ocean Energy Management (BOEM) senior management 

organization structure 

Strategic 

Resources 

Chief 

GOM 

Regional 

Director 

Pacific 

Regional 

Director 

AK 

Regional 

Director 

Chief 

Environmental 

Officer 

Renewables 

Chief 

BOEM Deputy 

Director 

BOEM Director 

Bureau of Safety and Environmental Enforcement (BSEE) senior 

management organization structure 

GOM 

Regional 

Director 

Regulatory 

Programs 

Chief 

Pacific 

Regional 

Supervisor 

AK 

Regional 

Supervisor 

Oil Spill 

Response 

Supervisor 

Environmental 

Compliance 

Supervisor 

BSEE Deputy 

Director 

BSEE Director 

24 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

Bureau Level Performance Information 

Table 3: Goal Performance Table Goal Performance Table Note: Performance and Cost data may be attributable to multiple activities and subactivities. Therefore, measure costs may not equal totals shown in subactivity tables. n/a - Data not available Target Codes: SP- Strategic Plan measures HPG- High Performance Goal BUR - Bureau specific measure UNK- Prior year data unavailable TBD- Targets have not yet been developed NA- Long-term targets are inappropriate to determine at this time Type Codes:

C - Cumulative Measures 

A - Annual Measures F - Future Measures 

Mission Area 2: Sustainably Manage Energy, Water, and Natural Resources

Goal 1: Secure America's Energy Resources 

Supporting Performance Measures Type 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 

Strategy 1: Ensure environmental compliance and safety of energy development to protect people, wildlife, and the environment. 

Amount (in barrels) of operational offshore oil spilled per million barrels produced (excluding Hurricane-related spills) (SP) 

C/F 

2.7

(1,359/ 503.3 

million ) 

0.52

(243.8/469 

million) 

3.9 (est.)

(2060/531 

million) 

<4.5 

7,600 (est.) 

(4,590369/ 604 

million ) 

<4.5 <4.5 0 <4.5 

Total amount (in barrels) of offshore oil spilled per million barrels produced (including Hurricane-related spills)(BUR) 

C/F 

2.7

(1,359/ 503.3 

million ) 

12.8

(6007/ 469.1

million) 

3.9 (est.)

(2060/531 

million) 

--

7,600 (est.) 

(4,590369/ 604 

million ) 

-- -- -- --

Total Actual/Projected Cost ($M) 64 69.8 70.4 76.6 78.3 78.9 Baseline Year* 0 --

Contributing Programs OEMM-Regulatory

Comments 

NOTE: Oil spill data are constantly updated as additional information becomes available through the completion of investigations and/or recovery operations; occasionally, a spill may be deleted or added a year or more later and result in historical data revisions. A final spill volume for the Deepwater Horizon accidenthas not been determined. Therefore the numerator for the FY2010 Operational Oil Spill ratio and the rate itself are both estimates. 

*FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major changesIn FY 2010, the largest recorded oil spill on the OCS occurred following the explosion and sinking of the Deepwater Horizon dranticipated for program operations. 

illing rig off the coast of

Louisiana. Government scientists estimate that 4.9 million barrels of oil were spilled. The National Incident Command Report states that — "it is estimated that 

burning, skimming and direct recovery from the wellhead removed one quarter (25%) of the oil released from the wellhead. One quarter (25%) of the total oil naturally evaporated or dissolved, and just less than one quarter (24%) was dispersed (either naturally or as a result of operations) as microscopic droplets into

Gulf waters." Efforts are still underway to clean up the environmental impacts and recover as much oil as possible. FY 2010 estimated results for the oil spill 

ratio greatly exceed the planned target; however, FY 2011 and FY 2012 targets will remain at the annual target of less than 4.5 barrels spilled per million barrels produced. 

Bureau of Ocean Energy Management, Regulation and Enforcement 25 
 

Bureau Level Performance Information Goal Performance Table (continued) Supporting Performance Measures Type 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 Number of Recordable Injuries per 200,000 Offshore Man Hours Worked (SP) N/A N/A N/A N/A N/A Baseline Year TBD -- TBD 

Total Actual/Projected Cost ($M) 0 0 0 0 0 TBD TBD -- --

Contributing Programs OEMM-RegulatoryComments

This new strategic plan measure is an incident rate of all Recordable Injuries that occur in the fiscal year for every 200,000 man hours worked (which is the 

approximate equivalent of 100 man years or full-time equivalents). Recordable injuries are injuries that require medical treatment beyond first aid and

fatalities. 

Composite accident severity ratio (BUR) C/F 

0.050

(5,208/ 

104,071) (revd) 

0.122

(12,440/

101,806) (revd) 

0.097

(9,532/ 

98,719) (revd) 

<.093 

0.184 (est.)

(17,872/ 

97,184) 

<.093 <0.93 0% TBD 

Contributing Programs OEMM-Regulatory Comments 

For the composite accident severity ratio, BOEMRE assigns a point value to each operator safety incident reported based on its severity, then divides total 

annual points by the number of components in service for all operators. This metric provides a reflection of the incident severity. In FY 2007, the point matrixused to assign accident severity values was updated to provide a better indication of the relative severity of the incidents (i.e., there is now a larger differential

between the points assigned for major versus minor incidents).Due to severity and magnitude of the Deepwater Horizon explosion, the ratio results for FY 2010 far exceeded the target. In addition to the fatalities, oil 

spilled, and facility damage, BOEMRE received a report of 46 injuries related to the Deepwater Horizon accident that resulted in > 3 days lost time, restricted work, or job transfer. Severity points were assessed for these injuries and included in the severity point total (numerator) for 2010; however, the operator has

not provided the details necessary to determine which injuries were serious enough to be assessed additional severity points. For this reason, the numerator

for the Composite Accident Severity Ratio and the resultant ratio are estimates only.

Maintain an annual composite operator performance index of X or less (BUR) C/F 0.13 (revd) 0.19 (revd) 0.17 (revd) <.20 0.24 <0.20 <.20 0 TBD 

Total Actual/Projected Cost ($M) 42.4 45.9 46.2 50.3 51.7 TBD Baseline Year* 0 --

Contributing Programs OEMM-RegulatoryComments 

This metric is a consolidated measure of overall operator performance that combines incident severity with operator compliance to existing regulations. The 

operator performance index sums two ratios that are normalized for OCS operator activity. The first ratio measures operator compliance using a weighted INC (incident of non-compliance) value. The second ratio measures operator safety by assigning values for accidents (i.e., the composite accident severity 

ratio). As with the composite accident severity ratio, FY 2010 results are higher than other years because of the Deepwater Horizon event. The FY 2011 and 

FY 2012 targets are based on maintaining the FY 2010 goal.*FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major changes

anticipated for program operations. 

 Bureau of Ocean Energy Management, Regulation and Enforcement 26 
 

Bureau Level Performance Information 

Goal Performance Table (continued) 

Supporting Performance Measures Type 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 

Number of fatalities among workers in DOI

permitted activities (BUR) C/F 3 2 2 4 11 4 4 0 TBD 

Contributing Programs OEMM-Regulatory Number of serious injuries among workers in DOI permitted activities (BUR) C/F 32 31 25 29 29 29 29 0 TBD 

Contributing Program OEMM-Regulatory Comments

In FY 2010, the explosion and sinking of the Deepwater Horizon drilling rig off the coast of Louisiana resulted in eleven deaths. Forty-six lost-time injurieswere also reported and BOEMRE is still trying to obtain the detailed information necessary to determine the seriousness of these injuries. Targets for the fatalities and serious injury metrics are typically developed based on reducing a rolling multi-year average calculated after actual data for the current yearbecomes available. Given the unprecedented magnitude of the Deepwater Horizon incident, and the negative skewing impact that including 2010 results would 

have on the rolling average, FY 2011 and FY 2012 targets are being maintained at the plan for FY 2010. 

Less than X% of total gas produced isapproved to be flared offshore (BUR) (Calendar Yr) 

A 

0.30% 

(8,492,684/ 

2,810,979,902

MCF) 

0.51%

(11,998,145/ 

2,368,336,009

MCF) 

0.28% (est.)

(5,771,545/ 

1,985,369,034 

MCF) 

0.70% 

0.57% (est.)

(9,900,316/ 

1,726,885,112 

MCF) 

0.70% 0.70% 0.00% TBD 

Contributing Program OEMM-Regulatory Comments

The Offshore program has by far one of the best records in the world when it comes to minimizing flaring and venting. Recent industry statistics showworldwide rates ranging from 0.2% to 100%. In FY 2008, there was a slight increase due to pipeline repair activities that resulted from damage incurred 

during Hurricanes Gustav and Ike. FY 2010 results are higher than normal due to recovery operations related to the Deepwater Horizon spill. When oil fromthe spill was siphoned up to tanker vessels, the natural gas that was produced with it had to be flared because there was no means of transmission to shore (e.g., a pipeline). If the flaring/venting associated with that one lease were removed, the percent of gas flared would drop to 0.45%. Also in April 2010, 

BOEMRE published revised flaring and venting regulations. The new regulations require operators to install flare/vent meters on all OCS facilities that process more than 2,000 bbl of oil per day. Previously operators were allowed to estimate these flare/vent volumes. These revised regulations will improve 

the accuracy of flaring data but may increase reported volumes. 

Conduct Technology Assessment and Research studies on X% of high-prioritytopics (BUR) 

C/F 74% (25/ 34) 93% (14/15) 100% (18/18) 85% 89% (16/18) 94% 94% 0% TBD 

Total Actual/Projected Cost ($M) 0.9 1.5 1.5 1.5 1.5 1.5 Baseline Year* 0 --

Contributing Programs OEMM-RegulatoryComments 

The Technology Assessment and Research (TA&R) Program is a research element encompassed within the BOEMRE Regulatory Program. The TA&R

Program supports research associated with operational safety and pollution prevention as well as oil spill response and cleanup capabilities. This metric looks at the percent of TA&R studies conducted on high-priority topics. BOEMRE anticipates a major expansion of the TA&R program following the Deepwater Horizon event.*FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major changesanticipated for program operations. 

Bureau of Ocean Energy Management, Regulation and Enforcement 27 
 

Bureau Level Performance Information Goal Performance Table (continued) Supporting Performance Measures Type 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 Achieve a utilization rate of X% at Ohmsett, the national oil spill response test facility (BUR) A 62% (162/ 260) 90% (217/240) 86.2% (207/240) 80.0% 91% (218/240) 85.0% 85.0% 0.0% TBD Contributing Programs OEMM-Oil Spill Research Comments Ohmsett is the National Oil Spill Response Test Facility located in New Jersey. At Ohmsett, clients can test oil spill response equipment in realistic conditions and have training in the use of the equipment. This measure evaluates the utilization level of the facility. Expanded uses for the facility (e.g., dispersant training, and renewable energy wave tests) have been identified to sustain overall utilization rates at around 85%. Total Number of Compliance Inspections Completed (BUR) A 20,567 25,650 26,978 22,000 23,619 22000 TBD -- TBD Total Actual/Projected Cost ($M) 40.3 44.1 44.5 48.5 50 TBD Baseline Year* 0 -- Contributing Programs OEMM-Regulatory

Comments 

On April 30, 2010, the President directed the Secretary to conduct a 30-day review of the Deepwater Horizon event and to report*FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major changes anticipated for program operations. 

 what additional precautions 

and technologies should be required to improve the safety of oil and gas exploration and production operations on the outer continental shelf. One of the key recommendations included in that report, as well as other subsequent reports, is that the BOEMRE needs to evaluate and revise the manner in which it conducts its drilling inspections. The current inspection program has only 62 inspectors which is not sufficient to provide the level of oversight that is needed 

on federal offshore oil and gas activities. Over the next few years, the inspection program and workforce is expected to change dramatically. Although finaldecisions have not been made, the new inspection strategy is expected to involve more on-site witnessing of high risk activities (e.g., BOP testing and

cement/casing activities) that will take more time to complete, but will not necessarily increase the number of inspections. For this reason, it is difficult todetermine how many inspections will be completed in FY2012 and beyond. 

Conduct full Coast Guard inspections on X%of manned offshore facilities annually (BUR) A 20% (224/ 1,121) 14.7% (164/1112) 13.6% (141/1035) (revd) 10.0% 16.5% (169/1021) 10.0% 10.0% 0.0% TBD 

Contributing Programs OEMM- RegulatoryComments 

Inspection of U.S. Coast Guard regulated items is a function that was provided for by regulation but one for which BOEMRE is not reimbursed. Assumption of limited responsibilities by BOEMRE was pursued following a report by the Inspector General that the U.S. Coast Guard was not conducting inspections of safety items on fixed facilities, as required by law. At this time, BOEMRE inspectors conduct a limited FPSIP (fixed platform self inspection program)inspection on every platform that they visit and have an annual target of conducting full FPSIP inspections on 10 percent of manned facilities. Although more is done when the resources are available, the targeted percentage of full FPSIP inspections performed by BOEMRE inspectors has not increased because itwould detract from performing inspections of equipment and operations under BOEMRE jurisdiction.It is not known what impact that current ongoing program reviews and the pending reorganization of BOEMRE will have on this process and this metric. 

 Bureau of Ocean Energy Management, Regulation and Enforcement 28 
 

Bureau Level Performance Information 

Goal Performance Table (continued) 

Supporting Performance Measures Type 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 

Strategy 2: Develop renewable energy potential including wind, solar, geothermal, and hydropowerNumber of megawatts of approved capacityauthorized on public land and the Outer Continental Shelf (OCS) for renewable energydevelopment while ensuring fullenvironmental review (Cumulative) (SP) 

N/A N/A N/A N/A N/A N/A 0 N/A 2750 

Total Actual/Projected Cost ($M) 0 0 0 0 0 0 Baseline Year* 0 0 

Contributing Programs OEMM- Renewable EnergyComments

The number of megawatts approved capacity for renewable energy development is one the Department's High Priority Goals. This metric tracks thecummulative number of approved megawatts based on the total capacity of the equipment to be installed, as specified in an approved Construction and Operations Plan (COP). On November 1, 2010, BOEMRE issued its first commercial lease for the existing Cape Wind project off the coast of Massaschusetts 

and is currently reviewing the Construction and Operations Plan for the project. BOEMRE has initiated three other commercial leasing processes in Deleware, Maryland and Massachusetts. Once the required public consultation and environmental analyses are completed, Site Assessment Plans (SAPs)along with Construction and Operation Plans (COPs) can be submitted for review and approval. *FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major changes anticipated for program operations. 

Number of renewable energy leasingprocesses initiated (e.g., Requests for Interest) (BUR) 

C/F N/A N/A 1 3 1 6 6 0 TBD 

Total Actual/Projected Cost ($M) -- -- 9 25.1 25 25.1 Baseline Year 0 --

Contributing Programs OEMM-Renewable Energy Comments 

NOTE: The Renewable Energy metrics presented are subject to revision as the Program matures. Projected costs for this performance measure include all funding associated with renewable energy performance. FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRETo enable renewable energy development on the OCS, BOEMRE must conduct a multi-step process entailing information gathering, cointo two separate bureaus and the major changes anticipated for program operations. 

nsultation with 

interested and affected parties, NEPA review and compliance, and analysis in light of other applicable federal requirements for each affected state. The first step in each decision process will identify a proposed lease area and determine whether there is competition for that area. If BOEMRE determines there iscompetitive interest, it will undertake a public consultation and decision process. This metric counts the number of formal actions BOEMRE publishes in the

Federal Register to initiate the leasing process for renewable energy. In April 2010, BOEMRE issued the first Request For Interest (RFI) for offshore renewable energy development off the coast of Delaware and during the first quarter of FY 2011, two more RFIs were published for potential development offthe coasts of Maryland and Massachusetts. BOEMRE anticipates initiating a total of 5 leasing processes in FY 2011, and another 5 in FY 2012. 

Bureau of Ocean Energy Management, Regulation and Enforcement 29 
 

Bureau Level Performance Information Goal Performance Table (continued) Supporting Performance Measures Type 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 Number of BOEMRE-supported stakeholder collaboratives for renewable energy (BUR) C/F 3 5 2 8 11 15 15 0 TBD Contributing Programs OEMM-Renewable Energy Comments During FY 2010, BOEMRE noted seven cooperative planning and leasing efforts undertaken with relevant Federal agencies and affected state, local, and tribal governments. During FY 2010 BOEMRE established and held initial Federal/State Task Force meetings with seven states (i.e., Delaware, Rhode Island, Massachusetts, New Jersey, Virginia, Maryland, and Maine). In 2011 BOEMRE held initial stakeholder meetings with New York and North Carolina. BOEMRE is responding to requests from multiple other states (including Oregon, Florida, and South Carolina) to establish task forces. In FY 2011 and FY 2012, BOEMRE will continue to support these existing state taskforces as well as establish new ones and participate in other stakeholder collaboratives such as the West Coast Governors’ Agreement on Ocean Health (WCGA), the California Working Group on Renewable Energy, and the Hawaii Clean Energy Initiative. A total of 15 collaboratives are planned for FY 2011 and 12 for FY 2012.

NOTE: The Renewable Energy metrics presented are subject to revision as the Program matures. BOEMRE recognizes the importance of coordinating and consulting with local and federal stakeholders to develop a comprehensive renewable energy 

program for the OCS. This metric quantifies the number of cooperative planning and leasing efforts undertaken with relevant federal agencies and affectedstate, local, and tribal governments. BOEMRE has actively sought and will continue to solicit stakeholder input through collaborative partnerships with federal agencies, state governments and other affected stakeholders.

Total number of renewable energy leases orgrants issued (competitive or noncompetitive; limited or commercial) (BUR) 

C/F N/A N/A 0 5 4 2 12 10 TBD 

Number of limited leases for renewable energy testing and data collection (BUR) C/F N/A N/A 0 4 4 0 2 2 TBD 

Number of commercial leases for the development of renewable energy (BUR) C/F N/A N/A 0 1 0 2 8 6 TBD 

Number of right-of-way/ right-of-use and easement grants issued (BUR) C/F N/A N/A N/A 0 0 0 2 2 TBD 

Contributing Programs OEMM-Renewable EnergyComments 

In the first quarter of FY 2011, BOEMRE issued its first commercial renewable energy lease for the existing Cape Wind project off the coast of Massachusetts. 

BOEMRE has also issued four limited leases (3 in New Jersey, 1 in Delaware) for testing and data collection and initiated three other commercial leasing 

processes in Delaware, Maryland, and Massachussets. To facilitate the siting, leasing and construction of new renewable energy projects Secretary Salazar recently announced an initiative called “Smart from the Start.” This initiative is expected to significantly reduce the time required for developers to obtain a commercial lease, without sacrificing the departments legal and environmental responsibilities. In FY 2012, BOEMRE anticipates there will be the potential to

issue two additional limited leases for research, eight or more commercial leases for energy development, and two Right-of-Way grants for a renewable energytransmission projects.NOTE: The Renewable Energy metrics presented are subject to revision as the Program matures. 

 Bureau of Ocean Energy Management, Regulation and Enforcement 30 
 

Bureau Level Performance Information 

Goal Performance Table (continued)Supporting Performance Measures Type 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 

Number of Ongoing EA/EISs for Renewable 

Energy Development (BUR) C/F N/A N/A 0 1 0 2 4 0 TBD 

Number of Completed EA/EISs for 

Renewable Energy Development (BUR) C/F N/A N/A 3 0 1 2 4 0 TBD 

Contributing Programs OEMM-Renewable EnergyComments

Comprehensive environmental analyses are an essential but lengthy part of the overall OCS lease planning process. The number of ongoing Environmental Impact Statements (EISs) or Environmental Assessments (EAs) will be highly dependent on the level of interest in potential leasing areas and whether the leaseissuance process will be competitive or non-competitive. For a non-competitive process, the financial burden of conducting the environmental assessment is 

borne by the applicant. In a competitive process, BOEMRE will fund the EA or EIS. In April 2010, the BOEMRE completed a supplemental Environmental Assessment on the Cape Wind Energy Project after receiving additional information following the publication of its Final EIS in 2009. NOTE: The Renewable Energy metrics presented are subject to revision as the Program matures. 

Strategy 3: Manage conventional energy development including coal, oil, and natural gas

Number of offshore lease sales held consistent with the Secretary’s Five-Year Oil and Gas Program (SP) 

C/F 2 5 2 4 1 0 2* 2 TBD 

Total Actual/Projected Cost ($M) 33.2 39.4 40.9 44.6 42.7 43 Baseline Year** 0 --

Contributing Programs OEMM-Leasing and Environment, Resource Evaluation Comments 

In December of 2010, the Secretary announced his final Revised Program (RP) for the Outer Continental Shelf Oil and Gas Leasing Program 2007-2012. Once the RP has been approved by the Court and the supplemental environmental analyses in the Gulf of Mexico are complete, BOEMRE will take the necessary steps to ensure its successful implementation within statutory requirements. *It is anticipated that lease sales will resume early in FY2012 and based on the proposed December 2010 proposed Revised Program, two lease sales will be held (one in the Central Gulf of Mexico and one in the Western Gulf of Mexico).***FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major changes Additionally in May 2010, the Secretary cancelled the Western Gulf of Mexico Sale 215 to determine whether the baseline enviroanticipated for program operations. 

nmental information utilized

in the multi-sale Environmental Impact Statement (EIS) conducted for this lease sale needed to change as a result of the Deepwater Horizon oil spill. Collectively, these decisions resulted in the removal of five Alaska lease sales from the 5-Year Program (two in 2010 and three in 2011) and the cancellation ofThis measure counts lease sales conducted under the OCS Oil and Gas Leasing Program as defined in the Secretary's Five-Year Proone Gulf of Mexico sale in 2010. For these reasons, only one of the four planned sales was held in FY 2010. 

gram. In April 2009, the 

DC Circuit Court remanded the 2007-2012 OCS oil and gas leasing program and required the Interior Department to "conduct a more complete comparative analysis of the environmental sensitivity of different areas.” Based on a revised environmental sensitivity analysis, the Secretary announced a Preliminary Revised Program (PRP) in March of 2010 that did not allow for additional lease sales to be held in the Beaufort Sea and Chukchi Sea planning areas under the 2007-2012 OCS Program and the President removed Bristol Bay from leasing consideration through 2017. 

Bureau of Ocean Energy Management, Regulation and Enforcement 31 
 

Bureau Level Performance Information Goal Performance Table (continued) Supporting Performance Measures Type 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Chan 201 ge from 1 Plan to 2012 Long-term Target 2016 Percent of available offshore oil and gas resources offered for leasing compared to what was planned in the Secretary's Five-Year Plan (BUR) C/F 84.2% (228.5/ 271.3) 2007-2012 (Proposed) Revised Leasing Program Target: TBD Percent of available OCS acres offered for leasing during the 5 Year Program compared to what was planned for leasing (BUR) C/F 67.3% (386.1/ 573.8) 2007-2012 (Proposed) Revised Leasing Program Target: TBD Contributing Programs OEMM-Leasing and Environment, Resource Evaluation Comments For each 5-Year Program, BOEMRE (formerly MMS) identifies OCS program areas that will be considered for future leasing throu Acreage with few estimated technically recoverable resources is excluded from the acreage that is planned to be offered under t targets assume that only the most prospective acreage will be offered. For the Revised 2007-2012 OCS Oil and Gas Leasing Progr be offered is projected to contain 98% of Undiscovered Technically Recoverable Resources available and encompass 91% of the tot leasing. This means that approximately 9% of the acreage available for leasing was determined to contain insufficient technically the sales scheduled in the Revised 5-year program for a specific year were held, meaning no major deferrals of acreage planned to resources offered would be 100%. 

The current 5-Year plan includes “special interest sales,” a process designed for the remote areas of Alaska that contain prospectscurrently considered to have high risk, high costs, and lower industry interest. If industry does not express an interest in the Call fo

Sales, presale work does not continue and the sale is not held.*Note: The targets for these metrics will have to be recalculated once the Court has approved the Revised Program for 2007-2012. 

gh individual sales.

he 5-Year Program and the 

am, the acreage planned to

al acreage available for 

recoverable resources. If all 

 be offered, the available 

 for oil and gas, but are 

r Information for Special 

Percent of available OCS acres offered in each

year's lease sales (BUR) C/F 35% (44.6/ 127.3) 88% (175.2/ 198.5) 99.9% (91.35/91.42) 72% 69% (62.57/90.91) 0 99% 99% TBD 

Contributing Programs OEMM-Leasing and Environmental and Resource EvaluationPercent of available OCS oil and gas resources 

offered in each year's lease sales (BUR) C/F 35.6%* (19.5/ 54.7) 98.9% (161.2/ 162.9) 100% (77.99/77.99) 98.0% 71% (55.55/78.04) 0 99% 99% TBD 

Total Actual/Projected Cost ($M) 33.2 39.4 40.9 44.6 42.7 43 Baseline Year** 0 --

Contributing Program OEMM-Leasing and Environment, Resource EvaluationComments 

These measures count the acreage and resources offered (in BBOE - billion barrels of oil equivalent) through lease sales scheduleYear OCS Oil and Gas Leasing Program. Targets for the 2007-2012 OCS Oil and Gas Leasing Program assume that the most prospoffered and are based on Secretary's Revised Program that was released on December 1, 2010. Since it is anticipated that no lea 

d under the Secretary's 5-

ective acreage will be

se sales will be held in FY

2011, the percentage of available acres and resources offered are 0. In FY2012, two leases sales are anticipated to be held 

─the 218 Sale in the Western Gulf

of Mexico and a combined sale in the Central Gulf of Mexico for scheduled Sales 216 and 222. *As a result of a settlement of litigation brought by the State of Louisiana, BOEMRE postponed Central Gulf of Mexico Sale 201 scheduled for March 2007, which decreased the quantity of resources offered in that year. **FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major changes 

anticipated for program operations. 

 Bureau of Ocean Energy Management, Regulation and Enforcement 32 
 

Bureau Level Performance Information 

Goal Performance Table (continued) Supporting Performance Measures Type 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 

Percent of Environmental Studies Program(ESP) projects rated "Moderately Effective" or better by BOEMRE internal customers (BUR) 

A 100% (12/12) 85% (29/34) 91% (20/22) 85% 91% (10/11) 85% 85% 0% TBD 

Percent of ESP Projects delivered on time (BUR) A 54% (7/13) 74% (25/34) 91% (20/22) 60% 56% (6/11) 60% 60% 0% TBD 

Contributing Programs OEMM-Leasing and EnvironmentComments

These measures evaluate the effectiveness and timeliness of the ESP's projects. Starting in FY 2011 and continuing into FY 2012, BOEMRE anticipatesconducting a number of high priority oceanographic, environmental, and social science studies to assess the impacts of the Deepwater Horizon spill that are not addressed through other efforts. Because oil released into the environment immediately undergoes a process of weathering and dispersal as it comes into 

contact with water or air, assessment must begin as quickly as possible to provide long-term tracking in terms of location, condition of the oil (chemical composition), and impact to natural resources and habitats. Multiple studies are also planned to inform the offshore Renewable Energy program. 

Percent of leases drilled annually for the firsttime - 5 Year Leases (BUR) (calendar year) A 4.8% (86/1,778) 4.7% (71/1,526) 2.5% (38/ 1,547) 2.5% 1.3% (15/1155) 2.0% 2.5% 0.5% TBD 

Contributing Program OEMM-Resource Evaluation 

Comments 

The number of drilling rigs currently in use on shallow water leases (typically 5-year leases) in the Gulf of Mexico has decreased in recent years andsignificantly dropped from FY 2008 when oil prices were at record high levels (e.g., from 50 to 9 in FY 2009). This decrease hAs operators adjust to the new requirements, drilling rates should recover to recent levels in FY 2012; however, it is unlikely that rates will return to pre-2009 levels unless the economics of oil and gas exploration in the Gulf of Mexico change significantly.

elps explain why the percent of

5-year leases drilled for the first time in FY 2009 was greatly reduced from the results achieved over the prior few years. In FY 2010 and 2011, BOEMREanticipates a further reduced percentage because the approval times for shallow water exploration plans increased significantly after additional environmentaland safety reviews and requirements that were added following the Deepwater Horizon explosion The increased approval times can impact drilling schedules because rig contracts are often put in place years in advance. Scheduled rigs may be diverted to other projects outside the Gulf if plans have not been approved. In addition, some projects that were deemed economically feasible, based on the original schedule and prior to the additional requirements, may become uneconomical and therefore not be initiated. 

Percent of leases drilled annually for the firsttime - 8/10 Year Leases (BUR)(calendar year) A 1.2% (42/3,536) 1.2% (38/3,277) 0.8% (36/4,652) 1.2% 0.3% (14/4501) 0.9% 1.1% 0.2% TBD 

Contributing Program OEMM-Resource Evaluation Comments 

NOTE: Beginning with Sale 213 held in 2010, the primary term for leases in water depths of 400 meters to 1,600 meters changed. The primary term for

leases in 400 meters to less than 800 meters changed from an initial 8-year term that would be revised to 5 years unless exploratory drilling was commenced, to an initial 5-year term which would be extended to 8 years only if exploratory drilling was commenced. The primary term for leases in 800 meters to less than 1,600 meters changed from a 10-year (unconditional) primary lease term to a 7-year primary lease term that would be extended to 10 years, again only if

Following the Deepwater Horizon explosion and spill, Secretary Salazar directed BOEMRE to suspend of the drilling of wells usinexploratory drilling commenced. 

g subsea blowout preventers 

(BOPs) or surface BOPs on a floating facility. He also suspended approval of pending and future applications for permits to drill wells using subsea BOPs or

surface BOPs on a floating facility. These suspensions, were in place until October 12, 2010 and were primarily applicable to deepwater operations with 7/8/10 year lease terms. As a result, BOEMRE expects that the percentage of 7/8/10 year leases drilled for the first time to be significantly reduced in FY 2010 and still lower than originally planned in FY 2011. Assuming that the majority of operators are able to comply with new safety requirements as they are developed, BOEMRE anticipates returning to recent levels in FY 2012. 

Bureau of Ocean Energy Management, Regulation and Enforcement 33 
 

Bureau Level Performance Information Goal Performance Table (continued) Supporting Performance Measures Type 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 Percent of high bids on leases accepted or rejected within 60 days (BUR) A 69% (259/374) 41.2% (898/2181) 65.3% (431/660) 50.0% 56% (264/472) N/A* 55% N/A TBD Total Actual/Projected Cost ($M) 13.3 14 12.5 13.7 13.6 N/A Baseline Year** 0 -- Contributing Programs OEMM-Resource Evaluation Comments *The FY 2011 target for this metric is N/A because no lease sales will be held during the fiscal year. **FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major changes The 60-day target was originally set for lease sales with fewer than 600 tracts receiving bids in the Gulf of Mexico Region or 

anticipated for program operations. 

90 tracts in the Alaska Region.

The original 2007-2012 5-year Program included a 500 percent expansion of acreage for Alaska and a 10 percent increase in the Gulf of Mexico, which 

increased the number of tracts receiving bids. Additionally, in the Gulf of Mexico deep water, many of currently leased tracts with 10-year lease terms are being relinquished, then made available. This additional acreage can result in some sales being above the baselines of 600 and 90 tracts receiving bids. In FY 

2008, GOMR Sales 205 and 206 had 723 and 615 tracts receiving bids respectively, and Alaska Sale 193 resulted in 488 tracts receiving bids. The higher number of tracts being bid upon, coupled with the increased amount of geological and geophysical data that must be incorporated into current FMVevaluations, lowered the percentage of bids BOEMRE was be able to evaluate within 60 days in FY 2008. FY 2009 results include evaluations that BOEMREperformed for BLM's National Petroleum Reserve lease sale in Alaska. 

Percent of tracts with high bids rejected in the previous lease sale receiving acceptable high bids the next time the tracts are made available (BUR) (FY) 

A 33% (1/3) 51.9% (14/27) 17.1% (6/35) 35.0% 42% (8/19) N/A* 35.0% N/A TBD 

Contributing Programs OEMM-Resource EvaluationComments 

This metric compares the success of rejected tracts from a previous sale the first time these tracts are made available again. High bids for tracts are rejected as inadequate if they do not meet BOEMRE’s threshold of an acceptable bid based on our economic evaluation. Between FY 2007 and 2010, approximately 35percent of the rejected tracts received acceptable bids in subsequent sales. The reduced percentage in FY 2009 most likely reflects the economic downturn and the decrease in oil and gas prices. The number of variables that affect this measure (i.e., predicted oil and gas and associated price paths, predicted costs associated with exploring and developing the leases, changes in royalty rates, royalty relief or other incentives, etc.) makes the percentage that will be rejecteddifficult to predict.*NOTE: The FY 2011 target for this metric is N/A because no lease sales will be held during the fiscal year. 

 Bureau of Ocean Energy Management, Regulation and Enforcement 34 
 

Bureau Level Performance Information 

Goal Performance Table (continued) 

Supporting Performance Measures Type 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 

Maintain the ratio of 1.8 to 1 (+/-0.4) of accepted high bids to BOEMRE’s estimatedvalue (BUR) 

C/F 2.1 to 1 2.49 to 1 1.7 to 1 1.8 to 1 (+/- 0.4) 1.8 to 1 N/A 1.8 to 1 (+/- 0.4) N/A TBD 

Contributing Programs OEMM-Resource EvaluationComments

BOEMRE’s current tract evaluation procedure is designed to assure that the government receives fair value for leased tracts. This measure compares the 

accepted high bid on each tract to the government’s estimated value for that tract. Industry corporate strategy with respect to acquiring specific acreage could lead to a company raising its bid above this analytical value to improve their chances of winning the lease. BOEMRE estimates are based on a discounted cash flow analysis of a tract and are not designed to predict the high bid. Therefore, the value of this indicator should always be greater than one to achieve fair value for OCS leases. The annual target ratio of 1.8 to 1 means that on average, the industry bids received are expected to be $1.80 (+/- 0.4) for every dollar of the estimated value for each tract. This target was set using several years of historical bid data and is reviewed annually to confirm its validity. 

*The FY 2011 target for this metric is N/A because no lease sales will be held during the fiscal year.

Reserves recovered per dollar of funding for the conservation management component of the program (BUR) 

A 62.7 BOE 

28.9 BOE

(85,811,266/ 

2,972,207) 

27.08

(60,923,024/ 

2,249,708) 

5.2 BOE 

24.3

(55,943,067/ 

2,299,660) 

5.2 BOE 5.2 BOE 0 TBD 

Contributing Programs OEMM-RegulatoryComments

A Conservation Information Document (CID) details the operator’s initial development plan and proposed depletion scenario for a deepwater project.

Operators have the tendency to propose a field depletion scenario where marginally economic reservoirs will be bypassed in favor of more prolific reservoirs.

BOEMRE conducts an independent evaluation to determine if any additional economically producible reservoirs not proposed for development by the operator 

should be developed. A final CID may require operators to produce reservoirs that they might otherwise bypass, which results in reserves recovered. This 

metric estimates the return on investment for BOEMRE conservation activities. The fixed annual target reflects the fact that as the price of oil and gas

fluctuates, it is difficult to predict the number of reservoirs operators will propose to bypass in their CIDs or how much those reservoirs will produce. Ifoperators committed to producing every zone in every CID during the year, the result would be 0, however; if they proposed to bypass many reservoirs with

reserves that BOEMRE determines are economically producible, the results would be much higher.

Blocks/Tracts Evaluated (BUR) A 18,645** 8,341 11,287 9,300 8,233 9,300 9,300 0 TBD 

Total Actual/Projected Cost ($M) 44.8 43.1 43.8 47.7 49 48.0 Baseline Year* 0 --

Contributing Programs OEMM-Resource Evaluation Comments 

To determine the potential resources on the OCS and the fair market value of those resources, BOEMRE must conduct detailed evaluations of the blocks and

tracts offered for lease each year as well as conduct regular resource assessment activities. On average BOEMRE currently evaluates approximately 9,300

individual blocks/tracts annually; however, special evaluations (e.g., regional evaluations for hydrates) may increase that number significantly in some years.

In FY 2009, a special 3-D seismic interpretation was conducted over six large protraction areas in the deep water Gulf of Mexico and additional blocks were 

made available in the Central Gulf of Mexico sale. These additional assessments covered over 3,000 blocks and contributed to the increased number ofblocks/tracts evaluated during the fiscal year.*FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major changesanticipated for program operations.**Results for FY 2007 are increased due to a special evaluation in the Atlantic Region for hydrates. 

Bureau of Ocean Energy Management, Regulation and Enforcement 35 
 

Bureau Level Performance Information 

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 Bureau of Ocean Energy Management, Regulation and Enforcement 36 
 

 

Bureau Level Budget Tables 

Table 4. Budget At A Glance ($000) 

Offshore Energy and Minerals

Management

Renewable Energy 

Leasing & Environmental Resource Evaluation 

Regulatory Program Information Management Total OEMM 

BOEMRE Reorganization and Baseline FY 2012 

FY 2010 

Enacted 

Reorganization

Transfers to 

ONRR/PMB 

BOEMRE FY 2010 

Baseline*

(Excludes ONRR) 

Adjustment for FY

2011 CR 2011 CR* 

Administration, 

Savings, and 

Adjustments 

Resource

Management 

Safety and 

Environmental 

Enforcement 

Investigations and 

Review Unit 

Independent 

Advisory Board 

BOEMRE 

Request 

Change from

2010 BOEMRE 

Baseline 

21,413 

59,461 

35,285 

60,261 

20,454 

21,413 

59,461 

35,285 

60,261 

20,454 

-205 

-568 

-329 

+11,343 

21,208 

58,893 

34,956 71,604 

20,454 

-185 

-822 

-713 

-1,135 

+14 

+2,050 

+15,906 

+490 

+1,034 

0 

0

+1,433 

0

+71,816 

0 

23,073 

75,410 34,733 

143,319 

20,468 

+1,660 

+15,949 

-552 

+83,058 

+14 

196,874 0 196,874 +10,241 207,115 -2,841 +19,480 +73,249 0 0 297,003 +100,129 

Office of Natural Resources 

Revenue

Compliance and Asset Mgmt Revenue and Operations 

50,940 

38,434 

-50,940 

-38,434 

0

0 

Total ONRR/PMB 89,374 -89,374 0 0 0 0 0 0 0 0 0 

General Administration

Executive Direction Policy & Mgmt Improvement 

Administrative Operations 

General Support Services 

Total GA 

2,818 

4,328 

20,029 

28,524 

-361 

-1,341 

-8,808 

-9,360 

2,457 

2,987 

11,221 

19,164 

-2 

-3 

-7

-33 

2,455 

2,984 

11,214 19,131 

+585 

+73 

+1,110 

+1,891 

+5,782 +1,200 

3,040 

10,039 

12,324 

21,022 

+583 

+7,052 

+1,103 

+1,858 

55,699 -19,870 35,829 -45 35,784 +3,659 0 0 +5,782 +1,200 46,425 +10,596 

ROMM/OEM 

Offsetting Collections Oil Spill Research 

Net Appropriation 

341,947 

-166,730 

6,303 

-109,244 

0 

232,703 

-166,730 

6,303 

+10,196 

+1,840 

242,899 

-164,890 

6,303 

+818 

-5,273 

+19,480 +73,249 

-55,000 

+8,620 

+5,782 +1,200 343,428 

-225,163 

14,923 

+110,725 

-58,433 

+8,620 

181,520 -109,244 72,276 +12,036 84,312 -4,455 +19,480 +26,869 +5,782 +1,200 133,188 +60,912 

OCS Connect Rescission -25,000 -25,000 0 0 

Total (w/rescission) 181,520 -109,244 72,276 -12,964 59,312 133,188 +60,912 

*Provided for illustrative purposes only. Actual transfers occur in FY 2012.**P.L. 111-322 provided a total of $24.9 million in direct appropriations over FY 2010. Of this amount, $12.9 million was designated for ONRR. ***Provided for comparison with the BOEMRE FY 2012 request. Because ONRR is funded through the ROMM appropriation in 2011 and has access to offsetting collections, the actual budget reflects higher direct appropriations and lower offsetting collections. P.L. 111-322 

included a $25 million rescission of prior year unobligated balances for the OCS Connect Project.

Bureau of Ocean Energy Management, Regulation and Enforcement 37 
 

 

Bureau Level Budget Tables Table 5: Summary of Requirements - Ocean Energy Management (OEM) FTE ($000) FTE ($000) FTE ($000) FTE ($000) FTE ($000) FTE ($000) FTE ($000) Renewable Energy Direct Appropriation 40 7,413 0 -2,110 0 +9 0 -93 +11 +1,949 0 0 51 7,168 Offsetting Rental Collections 0 14,000 0 +2,110 0 0 0 0 0 0 0 -205 0 15,905 Subtotal 40 21,413 0 0 0 +9 0 -93 +11 +1,949 0 -205 51 23,073 Leasing & Environmental Direct Appropriation 227 24,955 0 -28,172 0 +50 0 -300 +65 +16,767 0 0 292 13,300 

Offsetting Rental Collections 0 34,506 0 +28,172 0 0 0 0 0 0 0 -568 0 62,110 

Subtotal 227 59,461 0 0 0 +50 0 -300 +65 +16,767 0 -568 292 75,410 

Resource Evaluation

Direct Appropriation 218 21,159 0 -5,000 0 +48 0 -211 +3 -60 0 0 221 15,936 

Offsetting Rental Collections 0 14,126 0 5,000 0 0 0 0 0 0 0 -329 0 18,797 

Subtotal 218 35,285 0 0 0 +48 0 -211 +3 -60 0 -329 221 34,733 

Regulatory

Direct Appropriation 324 29,212 0 0 0 +71 0 -354 +213 +83,917 0 -60,273 537 52,573 

Offsetting Rental Collections 0 8,049 0 0 0 0 0 0 0 0 0 +9,114 0 17,163 

Cost Recovery Fees 0 13,000 0 0 0 0 0 0 0 0 0 -4,417 0 8,583 

Inspection Fees 0 10,000 0 0 0 0 0 0 0 0 0 55,000 0 65,000 

Subtotal 324 60,261 0 0 0 +71 0 -354 +213 +83,917 0 -576 537 143,319 

Information Management

Direct Appropriation 64 9,205 0 -9,205 0 +14 0 0 0 0 0 0 64 14 

Offsetting Rental Collections 0 11,249 0 +9,205 0 0 0 0 0 0 0 0 0 20,454 

Subtotal 64 20,454 0 0 0 +14 0 0 0 0 0 0 64 20,468 

Total OEMM 

Direct Appropriation 873 91,944 0 -44,487 0 +192 0 -958 +292 +102,573 0 -60,273 1,165 88,991 

Offsetting Collections 0 104,930 0 44,487 0 0 0 0 0 0 0 +58,595 0 208,012 

Total 873 196,874 0 0 0 +192 0 -958 +292 +102,573 0 -1,678 1,165 297,003 

2012 Budget Request 

Fixed Costs & Administrative Program 

Internal Transfers

(+/-) 

Reorganization 

Collections Changes

(+/-) 

Offshore Energy and Minerals

Management (OEMM) 

2010

Enacted 

Cost Savings

(-) 

Related Changes

(+/-) 

Changes

(+/-) 

Offsetting 

 Bureau of Ocean Energy Management Regulation and Enforcement 38 
Bureau Level Budget Tables 

Table 5: Summary of Requirements - OEM (continued)

FTE ($000) FTE ($000) FTE ($000) FTE ($000) FTE ($000) FTE ($000) FTE ($000) 

Executive Direction

Direct Appropriation 27 1,818 -2 -361 0 0 0 -25 0 +610 0 0 25 2,042 

Offsetting Rental Collections 0 1,000 0 0 0 0 0 0 0 0 0 -2 0 998 

Subtotal 27 2,818 -2 -361 0 0 0 -25 0 +610 0 -2 25 3,040 

Policy & Mgmt Improvement

Direct Appropriation 31 3,328 -11 -1,341 0 +1 0 -29 +24 +7,083 0 0 44 9,042 

Offsetting Rental Collections 0 1,000 0 0 0 0 0 0 0 0 0 -3 0 997 

Subtotal 31 4,328 -11 -1,341 0 +1 0 -29 +24 +7,083 0 -3 44 10,039 

Admin Operations

Direct Appropriation 160 17,474 0 -8,808 0 +3 0 -398 +1 +1,505 0 0 161 9,776 

Offsetting Rental Collections 0 2,555 0 0 0 0 0 0 0 0 0 -7 0 2,548 

Subtotal 160 20,029 0 -8,808 0 +3 0 -398 +1 +1,505 0 -7 161 12,324 

Gen Support Services

Direct Appropriation 0 15,883 0 -9,360 0 +996 0 -22 0 +917 0 0 0 8,414 

Offsetting Rental Collections 0 12,641 0 0 0 0 0 0 0 0 0 -33 0 12,608 

Subtotal 0 28,524 0 -9,360 0 +996 0 -22 0 +917 0 -33 0 21,022 

Total General Administration

Direct Appropriation 218 38,503 -13 -19,870 0 +1,000 0 -474 +25 +10,115 0 0 230 29,274 

Offsetting Rental Collections 0 17,196 0 0 0 0 0 0 0 0 0 -45 0 17,151 

Total 218 55,699 -13 -19,870 0 +1,000 0 -474 +25 +10,115 0 -45 230 46,425 

General Administration 

Collections Changes 

(+/-) 

Administrative Program 

2010

Enacted 

Related Changes 

(+/-) 

Changes 

(+/-) 

Reorganization

Internal Transfers

(+/-) 2012 Budget Request 

Cost Savings 

(-) 

Fixed Costs & Offsetting 

Table 5: Summary of Requirements - OEM (continued)

Total 

2010

Enacted 

Internal Transfers

(+/-) 

Reorganization

Related Changes 

(+/-) 

Fixed Costs & Administrative

Cost Savings 

(-) 

Program

Changes 

(+/-) 

Offsetting 

Collections Changes 

(+/-) 2012 Budget Request 

FTE ($000) FTE ($000) FTE ($000) FTE ($000) FTE ($000) FTE ($000) FTE ($000) 

Direct Appropriation* 

Offsetting Collections** 

(All Sources) 

1,091 

0 

130,447 122,126 

-13

0 

-64,357 

+44,487 

00 

+1,192 

0 

0

0 

-1,432 

0 

+317 

0 

+112,688 

0 

0

0 

-60,273 

+58,550 

1,395 

0 

118,265 

225,163 

Total OEM* 1,091 252,573 -13 -19,870 0 +1,192 0 -1,432 +317 +112,688 0 -1,723 1,395 343,428 

Total ONRR*** 575 89,374 n/a 

Total OSR 18 6,303 0 0 0 0 0 0 +4 +8,620 0 0 22 14,923 

Total BOEMRE 1,684 348,250 -13 -19,870 0 +1,192 0 -1,432 +321 +121,308 0 -1,723 1,417 358,351 

*FY 2010 levels reflect actual budget allocations. This total differs from that presented in the FY 2010 BOEMRE baseline because it has not been adjusted for the reorganization.

**Excludes allocation of $44.6 million in offsetting collections to ONRR in FY 2010.***ONRR's FY 2012 request is contained in the Office of the Secretary's Budget Justification. ONRR's FY 2010 level reflects actual budget allocations. This total excludes General 

Administration funding that will be transferred to ONRR in FY 2012. 

Bureau of Ocean Energy Management, Regulation and Enforcement 39 
 

Bureau Level Budget Tables 

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 Bureau of Ocean Energy Management Regulation and Enforcement 40 
 

 

OEMM-Renewable Energy 

FY 2012 PERFORMANCE BUDGET REQUEST 

Offshore Energy and Minerals Management 

Renewable Energy Subactivity 

Table 6: OEMM Renewable Energy Subactivity Budget Summary 

2010 

Enacted

Reorganization 

Transfers 

 (+/-) 

Fixed 

Costs 

(+/-) 

Administrative 

Cost Savings 

(-) 

Program 

Changes 

(+/-) 

Offsetting 

Collections 

Changes 

(+/-) 

Budget 

Request 

Change 

from 

2010 

(+/-) 

Renewable Energy ($000) 

FTE 

21,413 

40 

0 

0 

+9 

0 

-93 

0 

+1,949 

+11 

-205 

0 

23,073 

51 

+1,660 

+11 

SUMMARY OF FY 2012 PROGRAM CHANGES 

Request Component Amount 

($000) FTE 

Renewable Energy +2,050 +11 

Fixed Costs +9 0 

Administrative Savings -93 0 

Reorganization Efficiences and Changes -101 0 

Offsetting Collections -205 0 

Total: +1,660 +11 

JUSTIFICATION OF FY 2012 PROGRAM CHANGES 

The FY 2012 budget request for the Renewable Energy Subactivity is $23.1 million and 

51 FTE, a net increase of $1.7 million and 11 FTE over the FY 2010 enacted budget and $1.9 

million over the FY 2011 CR level. 

Consolidated information regarding fixed costs can be found in the General Administration 

subactivity. Information regarding BOEMRE’s efforts to reduce administrative costs and 

achieve reorganization efficiencies can be found in the General Statement. 

Renewable Energy (+$2,050,000; +11 FTE) 

On January 19, 2011, Department of Interior Secretary Ken Salazar and BOEMRE Director 

Michael Bromwich announced the details on the reorganization of BOEMRE into two separate 

bureaus – the Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and 

Environmental Enforcement (BSEE). With this announcement, the Secretary and the Director 

specified that BOEMRE’s offshore renewable energy program will be centralized in BOEM 

Headquarters (HQ) after the reorganization has been completed on October 1, 2011. In the 

future, as renewable energy technology and economics progress, BOEMRE may transition to a 

more integrated regional model. 

First included in the FY 2011 President’s Budget Request, BOEMRE is requesting additional 

funds needed to shift its attention towards region-specific needs. The FY 2012 request will 

Bureau of Ocean Energy Management, Regulation and Enforcement 41 
 

 

OEMM-Renewable Energy 

provide for the implementation of Secretary Salazar’s “Smart from the Start” Atlantic Wind 

Initiative; the development of regional expertise and coordination for frontier areas; knowledge 

of local resources; local stakeholder consultation and collaboration; and development of 

substantial and expansive region-specific environmental analysis. The request will focus on 

funding Atlantic and Pacific Outer Continental Shelf (OCS) specific needs, including efforts to 

grow the early stages of BOEMRE’s National Renewable Energy Program. As described in the 

announcement of January 19, 2011, the National Renewable Energy Program would lead leasing 

and environmental activities associated with developing the Nation’s exceptional OCS renewable 

energy resources, driven in part by the incentives provided by the Secretary’s Atlantic Wind 

Initiative and the demands of coastal states’ aggressive endeavors to meet their renewable 

portfolio standards (RPS). An RPS is a policy that requires the increased production of energy 

from renewable energy sources, such as wind, solar, biomass, and geothermal. The RPS 

mechanism generally places an obligation on electricity supply companies to produce a specified 

fraction of their electricity from renewable energy sources. As a number of Atlantic coastal 

states have relatively limited onshore renewable energy resource development potential, they are 

aggressively pursuing offshore renewable energy development to meet the requirements of their 

RPSs. Likewise, funding is needed for renewable energy leasing and environmental activities 

proposed for the Pacific OCS, where funding is needed to support processing of rights-of-way 

and renewable energy research leases, and also new BOEMRE intergovernmental task force 

efforts with the states of Oregon and Hawaii. 

Resource needs to support BOEMRE’s National Renewable Energy Program are captured in 

terms of Atlantic and Pacific OCS areas. The level of leasing and environmental review activity 

in these areas will influence the actual composition and distribution of FTEs and fiscal resources. 

Resource Needs 

Atlantic OCS (+$1,550,000; + 9 FTE) 

More than half of the country’s identified offshore wind potential is located off the New England 

and Mid-Atlantic coasts, where water depths generally deepen gradually with distance from the 

shore. On November 23, 2010, Secretary Salazar announced his “Smart from the Start” Atlantic 

Wind Initiative. Building off the BOEMRE intergovernmental task force efforts, the goal of the 

Secretary’s initiative is to facilitate efficient and environmentally responsible siting, leasing, and 

construction of new wind energy projects. As of January 2011, BOEMRE sponsors active 

intergovernmental task forces in nine of the thirteen Atlantic coast states. In two of the 

remaining four states, BOEMRE anticipates receiving Interim Policy limited lease applications, 

which will launch new task force efforts. Of the remaining states, one has yet to express interest 

in initiating a task force and the other has decided to defer implementation of an 

intergovernmental task force. 

Given the extent and magnitude of activity that will be spurred by the this initiative, and ongoing 

BOEMRE and state efforts along the Atlantic coast, additional resources are needed to provide 

states with an easily accessible point of contact that is familiar with the state and local 

governments and sensitive to the issues and efforts underway in the region. The requested 

resources would enable BOEMRE to continue to facilitate efficient, consistent, and 

Bureau of Ocean Energy Management, Regulation and Enforcement 42 
 

 

OEMM-Renewable Energy 

environmentally sound renewable energy leasing and development activities while being 

responsive to the states and developers. 

BOEMRE anticipates the need for staff representing some or all of the following disciplines: 

data management and analysis, ocean engineering, environmental studies management, program 

analysis, project management, FOIA, and budget. BOEMRE anticipates there will be a modest 

need for inspection activity associated with Atlantic OCS renewable energy projects by 2012. 

Resources requested include: 

	 Workforce ($1,350,000; 9 FTE). FTE to support leasing in nine states where task force 

meetings are ongoing and where possible additional task force requests may be received. 

Resources will also support review of interim policy lease applications that have been or are 

likely to be submitted. Expertise is needed in disciplines including geophysics, geotechnical 

specialists, economics, biology, marine archaeology, sociology, and renewable energy. 

	 Renewable Energy Support ($200,000). Funds are required to support the Secretary’s Smart 

from the Start initiative, task forces, and additional interim policy lease applications. 

Pacific OCS (+$500,000; + 2 FTE) 

In FY 2012, BOEMRE anticipates a significant increase in work required to implement the 

Renewable Energy Program on the West Coast and Hawaii. Since the area for each of these 

activities is considered to be the frontier for OCS renewable energy, extensive stakeholder 

involvement will be necessary, including sponsoring intergovernmental task forces in Oregon 

and Hawaii, along with substantial and expansive analyses to fulfill BOEMRE’s responsibilities 

under the OCS Lands Act (OCSLA), as amended by the Energy Policy Act of 2005 and various 

environmental laws and regulations. Resources requested include: 

	 Workforce ($300,000; 2 FTE). FTE to support increased workload. This includes disciplines 

such as leasing and electrical engineering. 

	 Task Force Support ($200,000). An Offshore Renewable Energy Task Force is needed for 

the Pacific states (California, Oregon and Washington), including tribal governments, to 

ensure that the full spectrum of agencies are involved in advising BOEMRE about the 

interests and issues, and to define a “way forward” for providing access to OCS renewable 

energy resources. 

Environmental Studies: In addition to the above, BOEMRE is requesting $1,000,000 in the 

Leasing and Environmental subactivity for studies needed to prepare for lease issuance and/or 

post lease environmental monitoring in the Atlantic and/or the Pacific. 

Performance Change Statement: 

The need to diversify and identify viable additional energy resources is a top priority for the 

American public and the Administration. This initiative will help BOEMRE accelerate the use 

of the OCS to develop renewable energy sources while enabling BOEMRE to maximize its 

Bureau of Ocean Energy Management, Regulation and Enforcement 43 
 

OEMM-Renewable Energy 

responsiveness and efficiency to state, industry and stakeholder requests concerning renewable 

energy development on the OCS. 

The requested funding will enable BOEMRE to initiate commercial lease sales and 

noncompetitive lease issuances in the Atlantic where development is anticipated to occur and in 

the Pacific where BOEMRE has committed to work with the west coast states and Hawaii to 

establish intergovernmental task forces and initiate leasing. 

BOEMRE issued its first renewable energy Request for Interest (RFI) to initiate the commercial 

wind leasing process offshore Delaware in FY 2010. Additionally, BOEMRE has published 

RFIs offshore Maryland and Massachusetts. BOEMRE anticipates issuing RFIs or Calls for 

Information and Nominations (Call) to initiate the commercial wind leasing process for areas 

offshore New Jersey, Virginia, and Rhode Island. 

Funding will enable BOEMRE to continue to establish and operate BOEMRE intergovernmental 

task forces to work closely with Federal and state agencies and elected leaders of local and tribal 

governments to address OCS renewable energy issues at a high level. These activities will 

include development of coastal and marine spatial planning efforts. Task force efforts are active 

in the following states: Maine, Massachusetts, Rhode Island, New York, New Jersey, Delaware, 

Maryland, Virginia, and North Carolina. Recently the Secretary accepted the Governor of 

Oregon’s request to establish a task force. The governors of South Carolina and Florida have 

formally requested that BOEMRE establish task forces. Finally, it is anticipated that the State of 

Hawaii will submit a similar request in light of the opportunities for OCS renewable energy 

research activities offshore that state. 

BOEMRE will also be able to address its legislative mandate to ensure safe and sound operations 

by conducting inspections and enforcement activities of renewable energy technology testing and 

resource data collection facilities (such as meteorological towers) that are anticipated to be 

installed in spring 2011 as a result of Interim Policy limited leases issued in FY 2010 offshore 

New Jersey and Delaware. Renewable energy facilities/structures are new to the United States 

and it is imperative that thorough inspections are conducted from the beginning and a 

comprehensive approach to inspecting commercial facilities is developed. 

The areal extent for renewable energy technology continues to expand as technological 

improvements allow for renewable energy development to be sited in deeper water and new 

technologies, such as OCS compressed air energy storage, come-on-line. Funding would allow 

BOEMRE to continue to conduct needed baseline studies, monitoring studies and issue-specific 

studies, ensuring leasing decisions are based on sound science and best engineering practices. 

If BOEMRE does not address the needs for renewable energy projects, the government will not 

be responsive to OCSLA and the Energy Policy Act of 2005. Requests from industry for leases 

will not be processed in an orderly manner and revenues anticipated from associated activities 

could be lost. Moreover, BOEMRE would hinder greatly the ability for states to meet their 

RPSs, particularly those with prime renewable energy resources located offshore their coasts. 

Bureau of Ocean Energy Management, Regulation and Enforcement 44 
 

 

OEMM-Renewable Energy 

PROGRAM OVERVIEW 

The OCS has significant potential as a source of new domestic energy generation from 

renewable energy resources. Section 388 of the Energy Policy Act of 2005 gave the Secretary of 

the Interior the lead over regulating offshore renewable energy activities and alternate uses of the 

OCS. These renewable energy and alternate use projects may include wind, wave, current, solar 

energy, and hydrogen generation projects, as well as projects that make alternative use of 

existing oil and natural gas platforms in Federal waters. 

On April 22, 2009, President Barack Obama announced that BOEMRE had finalized the 

regulatory framework for renewable energy generation on the OCS. This framework establishes 

a BOEMRE program to issue leases, easements, and rights-of-way for orderly, safe, and 

environmentally responsible renewable energy development activities, such as the siting and 

construction of offshore wind facilities on the OCS. 

BOEMRE activities include: 

 Program implementation; 

 Environmental analysis, assessment, and compliance for both competitive and noncompetitive lease sales; 

 Conducting environmental studies to establish baseline information and determine the 

environmental effects from renewable energy development activities; 

 Engaging in Technology Assessment & Research (TA&R) projects related to renewable 

energy; 

 Consultation with state and local and tribal governments, Federal agencies, and other 

stakeholders; and 

 Processing applications submitted for renewable energy development, and reviewing plans 

for proposed facilities. 

PERFORMANCE OVERVIEW 

Alternative Energy/Alternate Use Program: BOEMRE authority for the Outer Continental 

Shelf (OCS) Alternative Energy and Alternate Use program under Section 388 of the Energy 

Policy Act of 2005 (PL 109-58) is important for the future of domestic energy supplies, national 

security, and the environment. Under this authority, BOEMRE will regulate renewable energy 

projects and alternate uses of facilities currently or previously used for activities authorized 

under the OCSLA (e.g., existing oil and gas platforms). Renewable energy includes wind, wave, 

solar, ocean current, and generation of hydrogen. Alternate uses of existing facilities may 

include, but are not limited to, research, education, recreation, and support for offshore 

operations and facilities. Section 388 of the Energy Policy Act authorizes BOEMRE to: 

 Ensure consultation with state and local governments, Federal agencies, and other 

stakeholders; 

 Ensure protection of the environment; 

Bureau of Ocean Energy Management, Regulation and Enforcement 45 
 

OEMM-Renewable Energy 

 Grant easements, leases, or rights-of-way for alternate energy related uses of the Federal 

OCS; 

 Pursue appropriate enforcement actions in the event violations occur; 

 Require appropriate financial assurances to ensure that facilities constructed are properly 

removed at the end of their useful life; 

 Regulate, monitor, and determine fair return to the Nation; and 

 Ensure that appropriate revenue is shared with adjacent coastal states, as required by law. 

BOEMRE completed a Programmatic Environmental Impact Statement (EIS) in November 2007 

that examined the interface between the marine and human environment and the technologies 

and activities that generate energy from ocean alternative energy resources. The final Renewable 

Energy regulatory framework was published in the Federal Register on April 29, 2009. 

BOEMRE also announced in November 2007 the establishment of an interim policy for Offshore 

Alternative Energy Resource Assessment and Technology Testing Activities. The interim policy 

invited the public to nominate areas of the OCS in which BOEMRE would consider awarding 

limited leases that authorize data collection and technology testing. The interim policy was 

developed as a measure to jumpstart resource data collection and technology testing activities on 

the OCS in advance of the final regulations. 

The Energy Policy Act of 2005 also directs the Secretary of the Interior, together with other 

agencies, to establish an OCS Mapping Initiative to assist in decision making related to 

renewable energy uses on the OCS. This initiative, also called the Multipurpose Marine 

Cadastre, is a multiyear endeavor that requires joint planning, interaction and commitment by 

Federal, state, local, territorial, and tribal entities working through public and private 

partnerships. BOEMRE has been working cooperatively with other Federal agencies to develop 

this information system, which is a repository of data such as the legal extents of authorities, and 

physical and cultural information in a common reference framework. This work is being 

facilitated through the efforts of the Federal Geographic Data Committee (FGDC)-Marine 

Boundary Working Group. This tool is providing the geospatial framework needed for the 

broader coastal and marine spatial planning initiative called for in President Obama’s ocean 

agenda. 

BOEMRE, through the Energy Policy Act of 2005, also assumed responsibility for two existing 

offshore wind energy projects: the Cape Wind Energy project in the Nantucket Sound offshore 

Massachusetts, and the Long Island Offshore Wind Park offshore New York. The latter project 

was withdrawn by the applicant in 2007. There is currently renewed interest in proposing 

development offshore New York by the New York Power Authority. However, at the time of 

publication (February 18, 2011) BOEMRE had not yet received a proposal. 

BOEMRE published a Notice of Intent to prepare an EIS for the Cape Wind Energy project in 

May 2006. The Draft EIS was published in the Federal Register on January 17, 2008, and public 

hearings were held in March 2008. The final EIS was published on January 16, 2009, and the 

Record of Decision, issued on April 28, 2010, documents the bureau’s decision to select the 

Preferred Alternative at Horseshoe Shoal in Nantucket Sound described in the final EIS. In 

October 2010, the Secretary signed the Cape Wind lease, making it the Nation’s first OCS 

Bureau of Ocean Energy Management, Regulation and Enforcement 46 
 

 

 

OEMM-Renewable Energy 

renewable energy commercial lease. 

Within its Activity-Based Costing (ABC) system, BOEMRE is able to allocate expenses to the 

Renewable Energy activities and operations they support. Through FY 2010, the majority of 

spending for Renewable Energy has been focused on program development and environmental 

analysis. As the program matures, more funding will be directed to providing access to the OCS 

for renewable energy activities as well as regulatory and compliance efforts. The following chart 

shows the estimated spending profile for FY 2010. 

Federal/State 

Taskforces and 

Stakeholder 

Outreach 

3% 

Program 

Management 

41% 

Leasing and 

Permitting 

2% 

Environmental 

Studies and 

NEPA 

54% 

Figure 2. Estimated FY 2010 Renewable Energy Spending Profile1 

FY 2012 PROGRAM PERFORMANCE – RENEWABLE ENERGY 

Activities in FY 2012 will continue the momentum and projects begun in FY 2011 and prior 

years. A substantial increase in work is expected to support leasing of OCS sites for the 

commercial generation of renewable energy, which can be categorized as follows. 

	 Issuing Commercial Leases. The “Smart from the Start” initiative will enable the 

bureau to issue leases more efficiently than was possible previously. As a result, 

previous assumptions regarding the pace of lease issuance are no longer valid. The 

amount of renewable energy development will depend necessarily on the amount of 

commercial interest from developers; however, early indications are that commercial 

interest in offshore wind development, particularly off the Atlantic coast, is robust. 

BOEMRE expects to issue leases in 2011 and 2012 through both competitive and non1

 The funding for these activities was included in the Leasing and Environmental, Regulatory, and Resource 

Evaluation subactivities. 

Bureau of Ocean Energy Management, Regulation and Enforcement 47 
 

OEMM-Renewable Energy 

competitive processes offshore Atlantic states from Maine to North Carolina. As the 

Secretary’s “Smart from the Start” initiative has focused attention on Atlantic wind 

resources and streamlined the leasing process, at this time, it is difficult to determine the 

number of competitive lease sales and noncompetitive lease issuances. However, the 

bureau anticipates conducting leasing processes offshore most of the Atlantic coastal 

states. 

	 Review of Renewable Energy Lease Proposals and Applications. While BOEMRE 

cannot predict the exact number and locations of lease and Right-of-Way applications, it 

is likely that early interest in accessing OCS renewable energy resources will focus on the 

Atlantic and Pacific OCS areas and will result in the BOEMRE initiating competitive and 

noncompetitive leasing processes. Several companies have approached BOEMRE with 

wind, ocean wave and current energy and subsea power cable project proposals, and 

several states on both coasts have initiated efforts to accommodate offshore renewable 

energy development (e.g., Maine, Massachusetts, Rhode Island, New York, New Jersey, 

Delaware, Maryland, Virginia, North Carolina, and Oregon). The Commonwealths of 

Massachusetts and Virginia and the State of Hawaii have requested renewable energy 

research leases. Substantial regulatory, technical, and environmental review associated 

with these lease applications and individual noncompetitive proposals will be necessary. 

This will also require extensive consultation with affected coastal states, and local and 

tribal governments and regulatory agencies. 

	 Preparation for Renewable Energy lease sales in FY 2011 - 2014. BOEMRE will 

continue to identify areas of competitive interest, contract environmental studies, 

interpret study results, prepare environmental compliance documents, reach out to 

stakeholders and interested parties, provide support for BOEMRE intergovernmental task 

forces, and begin the formal lease issuance process. 

	 Post Lease Monitoring. BOEMRE will need to plan and conduct post lease monitoring, 

inspection, and enforcement activities for the Interim Policy limited leases issued in FY 

2011. For example, with respect to the Cape Wind project, assuming a Construction and 

Operations Plan is approved, BOEMRE would need to review the Facility Design Report 

and Fabrication and Installation Report prior to construction of the commercial wind 

facility. 

In implementing an Alternative Energy/Alternate Use Program, BOEMRE is committed to: 

	 Protecting the environment and providing for safety of personnel and operations; 

	 Cooperating, coordinating, and collaborating with others to manage the OCS resources; 

	 Providing regulatory certainty and consistency; 

	 Establishing a comprehensive framework for planning, permitting, and inspecting; 

	 Providing for a fair return to the Nation for use of its resources; 

	 Basing management decisions on detailed science and engineering reviews; and 

	 Improving our understanding of ocean ecosystems to make sound OCS resource management 

decisions. 

Bureau of Ocean Energy Management, Regulation and Enforcement 48 
 

OEMM-Renewable Energy 

In FY 2012, BOEMRE will continue its efforts to establish a strong BOEMRE presence in the 

Atlantic to be responsive to expected rapid development in the Mid and North Atlantic; to 

increase capacity and capabilities of BOEMRE offices in the Pacific to respond to renewable 

energy development; and to continue its work on the MMC. 

BOEMRE has made significant progress towards achieving the goals it established in the 

FY 2010 President’s Budget Request. As of January 2011, the following major activities have 

taken place: 

	 Program Development and Implementation 

o	 Nine intergovernmental task forces have been established on the Atlantic coast 

(Maine, Massachusetts, Rhode Island, New York, New Jersey, Delaware, 

Maryland, Virginia, and North Carolina) and one, Oregon, on the Pacific coast. 

o	 Requests have been received from two other states (Florida and South Carolina) to 

establish task forces and initiate discussions related to offshore renewable energy. 

o	 Requests for renewable energy research leases have been received from three states 

(Virginia, Massachusetts, and Hawaii). 

	 Environmental Studies – Of the 40 studies supporting renewable energy information 

needs slated for procurement in FY 2010, 36 were awarded. The remaining four studies 

were deferred in FY 2011 to ensure optimum project development. Of the four deferred 

studies, two have been deferred indefinitely and the other two have already been awarded 

this year. FY 2011 projects address socioeconomic effects, lighting schemes, air quality, 

and a need for information about bats. New studies for FY 2012 will focus on identifying 

areas with the potential for space-use conflicts, especially in areas with ports and airports. 

Additional work will provide estimates of pollutant emissions. 

	 Technology Assessment and Research Studies – Recently awarded projects continue to 

build on the lessons learned in Europe while focusing on the unique operating 

environment of the U.S. OCS. The international structural design standards have been 

reviewed and research gaps have been identified that include the anticipated effects of 

hurricanes and open-ocean breaking waves, as well as the structural integrity of floating 

wind turbines under reasonably-foreseeable ocean conditions. Much is known about the 

meteorological and oceanographic conditions in the Gulf of Mexico, but this data needs 

to be obtained for the Atlantic and Pacific regions to ensure that these new structures are 

designed to the appropriate parameters. FY 2012 studies will delve deeper into these 

issues, as well as explore the recent electrical cable and structural grouting failures in 

Europe. 

	 Multipurpose Marine Cadastre – New web presence – www.marinecadastre.gov. The 

MMC has a new server structure and new data. BOEMRE is continuing work on special 

tools and data sets as prescribed in its 2010 work plan. A User Needs Workshop 

occurred on February 1, 2011, after which the 2011/2012 work plan will be developed. 

 The FY 2011 funds will be allocated to NOAA based on costs of updates, new tools, 

data, and partnership developments. 

	 Fair Return Estimation Support – In FY 2011, BOEMRE is acquiring modeling 

capabilities and external expert advice on four areas in support of its mission to obtain a 

fair return on areas leased in support of renewable energy projects: 1) financial modeling 

Bureau of Ocean Energy Management, Regulation and Enforcement 49 
 

OEMM-Renewable Energy 

to enable estimation of appropriate project-specific operating fees; 2) an auction format 

study to obtain expert advice on structuring initial auctions to advance program 

objectives; 3) a wind resource assessment study to quantify the characteristics of the wind 

resource for purposes of setting an initial capacity factor for projects in the Delaware 

wind energy area; and 4) probabilistic renewable energy project simulation modeling 

capability to translate wind and hydrokinetic energy resource estimates into estimated 

capacity factors. 

	 Development of Environmental Protocols and Monitoring – BOEMRE, under the 

auspices of the National Ocean Partnership Program and in collaboration with the 

Department of Energy and the National Oceanographic and Atmospheric Administration, 

solicited proposals through the Broad Agency Announcement: Developing 

Environmental Protocols and Monitoring to Support Ocean Renewable Energy and 

Stewardship. In FY 2010, the partners awarded $4.7 million to eight proposals 

addressing noise characterization; monitoring technologies; protocols for baseline 

environmental studies; coastal and marine spatial planning; sub-seabed carbon 

sequestration; and visual evaluations. 

Other milestone events include the execution of four Interim Policy leases in November 2009, 

three offshore New Jersey and one offshore Delaware, and the receipt of seven unsolicited 

applications for renewable energy commercial leases (Rhode Island – 2, New Jersey – 2, 

Virginia – 2, and North Carolina -1). In addition, three states are currently applying for 

renewable energy research leases (Hawaii, Massachusetts, and Virginia). 

The Renewable Energy Subactivity Performance Overview Table is shown on the following 

pages. 

Bureau of Ocean Energy Management, Regulation and Enforcement 50 
 

OEMM-Renewable Energy 

Table 7: OEMM Performance Overview – Renewable Energy Performance Overview - Renewable Energy Note: Performance and Cost data may be attributable to multiple activities and subactivities. Therefore, measure costs may not equal totals shown in subactivity tables. Mission Area 2: Sustainably Manage Energy, Water, and Natural Resources Goal 1: Secure America's Energy Resources Supporting Performance Measures 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 Strategy 2: Develop renewable energy potential including wind, solar, geothermal, and hydropower Number of megawatts of approved capacity authorized on public land and the Outer Continental Shelf (OCS) for renewable energy development while ensuring full environmental review (Cumulative) (SP) N/A N/A N/A N/A N/A N/A Baseline Year 0 N/A 2750 Total Actual/Projected Cost ($M) 0 0 0 0 0 25.1 Baseline Year* 0 0 Comments The number of megawatts approved capacity for renewable energy development is one the Department's High Priority Goals. This metric tracks the cummulative number of approved megawatts based on the total capacity of the equipment to be installed, as specified in an approved Construction and Operations Plan (COP). On November 1, 2010, BOEMRE issued its first commercial lease for the existing Cape Wind project off the coast of Massaschusetts and is currently reviewing the Construction and Operations Plan for the project. BOEMRE has initiated three other commercial leasing processes in Deleware, Maryland and Massachusetts. Once the required public consultation and environmental analyses are completed, Site Assessment Plans (SAPs) along with Construction and Operation Plans (COPs) can be submitted for review and approval. *FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major changes anticipated for program operations. Number of renewable energy leasing processes initiated (e.g., Requests for Interest) (BUR) 

N/A N/A 1 3 1 6 6 0 TBD 

Total Actual/Projected Cost ($M) -- -- 9.0 25.1 25 25.1 Baseline Year 0 --

Comments 

To enable renewable energy development on the OCS, BOEMRE must conduct a multi-step process entailing information gathering, consultation with interested and affected parties, NEPA review and compliance, and analysis in light of other applicable federal 

requirements for each affected state. The first step in each decision process will identify a proposed lease area and determine whether there 

is competition for that area. If BOEMRE determines there is competitive interest, it will undertake a public consultation and decisionprocess. This metric counts the number of formal actions BOEMRE publishes in the Federal Register to initiate the leasing process for renewable energy. In April 2010, BOEMRE issued the first Request For Interest (RFI) for offshore renewable energy development off the 

coast of Delaware and during the first quarter of FY 2011, two more RFIs were published for potential development off the coasts of Maryland and Massachusetts. BOEMRE anticipates initiating a total of 5 leasing processes in FY 2011, and another 5 in FY 2012.NOTE: The Renewable Energy metrics presented are subject to revision as the Program matures. Projected costs for this performance

measure include all funding associated with renewable energy performance. FY2012 will be a baseline year for performance costs due tothe planned reorganization of BOEMRE into two separate bureaus and the major changes anticipated for program operations. 

Bureau of Ocean Energy Management, Regulation and Enforcement 51 
 

OEMM-Renewable Energy Performance Overview - Renewable Energy (continued) Supporting Performance Measures 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 Number of BOEMRE-supported stakeholder collaboratives for renewable energy (BUR) 3 5 2 8 11 15 15 0 TBD Comments BOEMRE recognizes the importance of coordinating and consulting with local and federal stakeholders to develop a comprehensive renewable energy program for the OCS. This metric quantifies the number of cooperative planning and leasing efforts undertaken with relevant federal agencies and affected state, local, and tribal governments. BOEMRE has actively sought and will continue to solicit stakeholder input through collaborative partnerships with federal agencies, state governments and other affected stakeholders. During FY 2010, BOEMRE noted seven cooperative planning and leasing efforts undertaken with relevant Federal agencies and affected state, local, and tribal governments. During FY 2010 BOEMRE established and held initial Federal/State Task Force meetings with seven states (i.e., Delaware, Rhode Island, Massachusetts, New Jersey, Virginia, Maryland, and Maine). In 2011 BOEMRE held initial stakeholder meetings with New York and North Carolina. BOEMRE is responding to requests from multiple other states (including Oregon

Florida, and South Carolina) to establish task forces. In FY 2011 and FY 2012, BOEMRE will continue to support these existing statetaskforces as well as establish new ones and participate in other stakeholder collaboratives such as the West Coast Governors’ Agreement on Ocean Health (WCGA), the California Working Group on Renewable Energy, and the Hawaii Clean Energy Initiative. A total of 15 collaboratives are planned for FY 2011 and 12 for FY 2012.NOTE: The Renewable Energy metrics presented are subject to revision as the Program matures. 

, 

Total number of renewable energy leases orgrants issued (competitive or noncompetitive;limited or commercial) (BUR) 

N/A N/A 0 5 4 2 12 10 TBD

Number of limited leases for renewable energy testing and data collection (BUR) N/A N/A 0 4 4 0 2 2 TBD

Number of commercial leases for the development of renewable energy (BUR) N/A N/A 0 1 0 2 8 6 TBD

Number of right-of-way/ right-of-use and easement grants issued (BUR) N/A N/A N/A 0 0 0 2 2 TBD

Comments

In the first quarter of FY 2011, BOEMRE issued its first commercial renewable energy lease for the existing Cape Wind project off the coasof Massachusetts. BOEMRE has also issued four limited leases (3 in New Jersey, 1 in Delaware) for testing and data collection andinitiated three other commercial leasing processes in Delaware, Maryland, and Massachussets. To facilitate the siting, leasing and construction of new renewable energy projects Secretary Salazar recently announced an initiative called “Smart from the Start. ” This initiative is expected to significantly reduce the time required for developers to obtain a commercial lease, without sacrificing the departments legal and environmental responsibilities. In FY 2012, BOEMRE anticipates there will be the potential to issue two additionallimited leases for research, eight or more commercial leases for energy development, and two Right-of-Way grants for a renewable energy transmission projects.NOTE: The Renewable Energy metrics presented are subject to revision as the Program matures. 

t 

Number of OngoingEA/EISs for Renewable 

Energy Development (BUR) N/A N/A 0 1 0 2 4 0 TBD

Number of CompletedEA/EISs for 

Renewable Energy Development (BUR) N/A N/A 3 0 1 2 4 0 TBD 

Comments 

Comprehensive environmental analyses are an essential but lengthy part of the overall OCS lease planning process. The number of ongoing Environmental Impact Statements (EISs) or Environmental Assessments (EAs) will be highly dependent on the level of interest inpotential leasing areas and whether the lease issuance process will be competitive or non-competitive. For a non-competitive process, the financial burden of conducting the environmental assessment is borne by the applicant. In a competitive process, BOEMRE will fund the EA or EIS. In April 2010, the BOEMRE completed a supplemental Environmental Assessment on the Cape Wind Energy Project after receiving additional information following the publication of its Final EIS in 2009. NOTE: The Renewable Energy metrics presented are subject to revision as the Program matures. 

Bureau of Ocean Energy Management, Regulation and Enforcement 52 
 

 

OEMM-Leasing and Environmental Subactivity 

FY 2012 PERFORMANCE BUDGET REQUEST 

Offshore Energy and Minerals Management 

Leasing and Environmental Subactivity 

Table 8: OEMM Leasing and Environmental Subactivity Budget Summary 

2010 

Enacted

Reorganization 

Transfers 

 (+/-) 

Fixed 

Costs 

(+/-) 

Administrative 

Cost Savings 

(-) 

Program 

Changes 

(+/-) 

Offsetting 

Collections 

Changes 

(+/-) 

Budget 

Request 

Change 

from 

2010 

(+/-) 

Leasing and Environmental 

Assessment Program 

($000) 

FTE 

29,958 

227 

0 

0 

+50 

0 

-300 

0 

+10,267 

+65 

-568 

0 

39,407 

292 

+9,449 

+65 

Environmental Studies 

Program 

($000) 

FTE 

29,503 

0 

0 

0 

0 

0 

0 

0 

+6,500 

0 

0 

0 

36,003 

0 

+6,500 

0 

Leasing and Environmental 

Subactivity 

($000) 

FTE 

59,461 

227 

0 

0 

+50 

0 

-300 

0 

+16,767 

+65 

-568 

0 

75,410 

292 

+15,949 

+65 

SUMMARY OF FY 2012 PROGRAM CHANGES 

Request Component Amount FTE 

NEPA and Environmental Studies Staff +8,063 +52 

Environmental Studies +6,500 0 

General Support +1,531 0 

Environmental & Operational Oversight Compliance +1,395 +9 

Marine Spatial Planning +1,000 +4 

Fair Market Value and Safe Operations +850 0 

Fixed Costs +50 0 

Administrative Savings -300 0 

Offsetting Collections -568 0 

Reorganization Efficiences and Changes -572 0 

Marine Minerals -2,000 0 

Total: +15,949 +65 

JUSTIFICATION OF FY 2012 PROGRAM CHANGES 

The FY 2012 budget request for the Leasing and Environmental Subactivity is $75.4 million and 

292 FTE, a net increase of $15.9 million and 65 FTE over the FY 2010 enacted budget and $16.5 

million over the FY 2011 CR level. 

Consolidated information regarding fixed costs can be found in the General Administration 

subactivity. Information regarding BOEMRE’s efforts to reduce administrative costs and 

achieve reorganization efficiencies can be found in the General Statement. 

NEPA and Environmental Studies Staff (+$8,063,000; +52 FTE)

 Additional environmental science expertise is needed to address the ramifications of the recent 

Gulf of Mexico Deepwater Horizon oil spill and the impact to potential activities in frontier areas 

in the Atlantic and Pacific. The additional personnel will support the timely and thorough review 

of exploration and development plans as well as a variety of permit requests. BOEMRE will 

Bureau of Ocean Energy Management, Regulation, and Enforcement 53 
 

OEMM-Leasing and Environmental Subactivity 

need additional staff to serve as environmental analysts and coordinators during environmental 

reviews and to serve as subject matter experts and Contracting Officer’s Representatives (COR) 

supporting and strengthening the existing capability of the Environmental Studies Program. The 

scientific staff will consist of marine archaeologists; social scientists and economists; 

benthic/fisheries biologists; avian and marine mammal biologists; protected species biologists, 

air-quality experts and/or meteorologists; physical, biological and chemical oceanographers; 

water-quality/pollution specialists, and other disciplines. 

NEPA environmental staff will help prepare environmental documents, coordinate inter-agency 

consultations to evaluate the potential effects of proposed OCS activities, and facilitate interbureau and Departmental reviews. Scientific staff will conduct environmental and 

socioeconomic resource impact analyses required for the preparation of environmental impact 

statements and for an increased number of site-specific environmental assessments evaluating 

industry-proposed plans. At the pre-lease review stage, environmental specialists will develop 

and implement procedures to coordinate with their counterparts undertaking environmental 

compliance activities. 

This request will specifically support additional post-lease coordination and protected-resource 

staff required to address the forthcoming policy changes in the Gulf of Mexico OCS Region’s 

postlease NEPA program. Improved consultation with local communities, public input into the 

NEPA process, and Government-to-Government meetings are critical to successful 

implementation of the OCS Program. These efforts will help meet the Secretary’s mandates, as 

well as advance efforts to increase opportunities for communication and coordination among the 

public, industry, government, academia, and the scientific community. 

The ESP environmental staff will help develop statements of work and coordinate and monitor 

the progress of the studies. An increase in the number of longer-term baseline and monitoring 

studies is anticipated. Scientific staff with COR duties are urgently needed to manage 

increasingly complex studies involving partnerships with other Federal partners, academia and 

others. The ESP seeks these partnerships wherever possible to obtain the science needed to 

support the bureau’s decisions while maximizing the utility of the results and extending limited 

budgets even further. Studies frequently span several years and often involve ship-based 

fieldwork with extensive analysis and reporting. The coordination of study design with multiple 

partners and monitoring of study progress requires extensive and frequent involvement all the 

way from the development of concepts and statements of work, through the procurement, award, 

and conduct phases of the work, to the delivery and dissemination of the results. 

Impacts of Not Funding: Without the requested staff, pre- and post-lease assessments will be 

delayed and environmental compliance and safety could suffer. There would be delays in 

obtaining necessary environmental information through the ESP, which would jeopardize 

timelines and completeness of the processes, documents, and actions relying on the results. 

Risks to completing consultations successfully under other environmental laws also would 

increase. The frequency and scope of litigation based on insufficient environmental information 

may increase, which could result in delays to the entire leasing process. 

54 Bureau of Ocean Energy Management, Regulation, and Enforcement 
 

 

OEMM-Leasing and Environmental Subactivity 

Environmental Studies (+$6,500,000; 0 FTE) 

The Budget requests an increase of $6.5 million to begin studies needed to support high priority 

information needs related to the Deepwater Horizon Oil Spill and renewable energy. Studies 

addressing social and economic impacts would fill a gap in information that BOEMRE needs to 

fill in order to inform leasing decisions and complete the necessary NEPA documentation. Other 

issues to study include air quality effects, the impacts to avian communities and interactions 

between sediments and oil. Many of these studies will be ongoing for several years. This 

information will be critical in order for BOEMRE to comply with NEPA regulations and an 

extensive suite of environmental laws, including Marine Mammal Protection Act (MMPA), 

Endangered Species Act (ESA), National Historic Preservation Act (NHPA), Coastal Zone 

Management Act (CZMA), Magnuson-Stevens Fishery Conservation and Management Act 

(MSFCMA), and Migratory Bird Treaty Act (MBTA). 

In light of the spill and the continuing expansion of renewable energy information needs, 

reassessments of baseline information in areas of ongoing activity and establishment of initial 

baselines in areas of anticipated activity are needed. As recovery and activities progress, 

monitoring of conditions is necessary. Current information across all disciplines will be 

required. BOEMRE will, as it has in the past, leverage its funds with other interested Federal 

and private stakeholders, while ensuring that it fulfills its mission to acquire applied research 

specific to the oil and gas-leasing program. 

The socioeconomic discipline provides a good example of the depth of the proposed work. In 

the Gulf, these studies include examinations of the effects of the spill on families and 

communities, recreation, tourism and commercial and recreational fisheries. Additional work 

may include archaeological impact analyses, air quality, and the interactions between oil and 

sediments. While work in these areas is valuable and of interest to other parties, is not being 

conducted under current programs. Methods to generate the information in these efforts include 

literature reviews, data collection from public sources, collection of information through contact 

with members of the affected communities and modeling. 

This request also includes a $1.0 million increase for environmental research in support of 

offshore renewable energy activities. Through its day-to-day-activities, the Office of Alternative 

Energy Programs continually identifies informational needs for the assessment, prediction, and 

management of environmental impacts on the OCS. These information needs have become even 

more apparent with the recent launching of the Secretary’s “Smart from the Start” wind energy 

initiative for the Atlantic OCS aimed at facilitating the prioritization, rapid siting, and leasing of 

new projects. 

As these and other events unfold, it will be necessary to gather additional scientific information 

to examine the potential biological, environmental, socioeconomic, and cultural effects of 

renewable energy projects. Several research studies for FY 2011 have been identified to satisfy 

BOEMRE’s information needs. These proposed studies are designed to fill critical information 

gaps to meet the immediate information needs associated with the Smart from the Start Initiative 

and for future environmental assessments. To support renewable information needs, work is 

proposed to investigate space-use conflicts, particularly around airports and commercial 

Bureau of Ocean Energy Management, Regulation, and Enforcement 55 
 

 

 

OEMM-Leasing and Environmental Subactivity 

shipping. The impacts of wind development on fishing also will be investigated. Methods to 

generate the information in these efforts include literature reviews and data collection from 

public sources. 

Funding is needed to initiate the proposed studies to prepare for lease issuances and for post 

lease environmental monitoring in the Atlantic and Pacific and will address physical, biological 

and social resource issues in the Wind Energy Areas defined under the Smart from the Start 

Initiative. The timely acquisition of environmental information is crucial to issuing leases. 

Without sound science for decision-making, opportunities for renewable energy development 

could be hindered or delayed. Full funding for the proposed environmental studies is critical for 

the success of the Renewable Energy Program. 

General Support (+1,531,000; 0 FTE) 

BOEMRE will need to provide space and other essential needs for dozens of new employees. 

Funds will be needed for planning, renovating, infrastructure such as cabling and electrical, 

moving, and furniture. 

Environmental & Operational Oversight Compliance (+$1,395,000; +9 FTE) 

Enhanced environmental oversight over all OCS activities is a logical and necessary outcome of 

the experience with the Deepwater Horizon oil spill (National Commission on the BP Deepwater 

Horizon Oil Spill and Offshore Drilling, January 2011; CEQ, August 2010). Robust 

environmental reviews and procedures will set the stage for following through and tracking lease 

sale planning and site-specific permit decisions. This level of effort will be matched by more 

systematic and inclusive monitoring of project implementation/operational phases, including 

final decommissioning. These collective efforts will facilitate a culture focused on safety and the 

environment consistent with the Secretary’s mandates, as well as advance efforts to improve 

awareness of the importance of environmental compliance on the OCS. 

BOEM will be responsible for environmental compliance and analyses for all activities 

associated with leasing, authorization of on- and off-lease geological and geophysical surveys 

and approvals of exploration and development plans. BOEM will also develop and adaptively 

manage environmental protection measures specific to these activities. BSEE will be responsible 

for environmental compliance related to issuing permits associated with plans (i.e., Applications 

for Permits to Drill), inspections of environmental measures and enforcement of incidences of 

non-compliance. BSEE will also review industry reporting and work with BOEM to adaptively 

manage environmental mitigation measures to ensure their effectiveness and enforceability. 

In FY 2011-2012, BOEMRE and its successor bureaus (BOEM and BSEE) plan to strengthen 

existing and develop additional environmental compliance capabilities by: 

 Additional resources for the Environmental & Operational Oversight Compliance initiative are 

requested in the Regulatory subactivity ($3.7 million; 24 FTE). 

56 Bureau of Ocean Energy Management, Regulation, and Enforcement 
 

 

 

OEMM-Leasing and Environmental Subactivity 

 conducting NEPA and other environmental reviews on a broader range of project specific 

exploration and development activities; 

 establishing lease stipulations and permit/plan mitigations based on environmental study 

outcomes, environmental reviews and regulatory requirements; 

	 developing a rigorous methodology for evaluating the effectiveness of required 

mitigation and monitoring measures and coordinating with BSEE environmental 

compliance staff to adaptively manage these measures; 

 establishing policies and procedures to foster communication and collaboration between 

bureaus; 

 conducting oversight reviews to ensure appropriate and consistent application of OCS 

environmental requirements; 

 performing accountability assessments for OCS environmental issues; 

 coordinating, at a national level, with task forces, workgroups, other agencies, states, 

lessees, and other interested parties on environmental issues; and 

	 collaborating with safety personnel, legal advisors, resource managers, and others 

involved with environmental implementation; and collaborating with offices and groups 

performing a variety of functions to gather data for environmental performance 

accountability measures. 

BOEMRE will need to hire additional environmental protection specialists, inspectors, 

engineers, and scientists to assist BOEM and BSEE in the joint implementation and coordination 

of environmental compliance efforts. This request will support the additional personnel that are 

needed to facilitate and manage the expanded environmental oversight role brought about 

through bureau reorganization and enhancement. 

Impacts of Not Funding: Diminished ability to properly oversee environmental compliance 

related to leasing, authorization of on- and off-lease geological and geophysical surveys and 

approvals of exploration and development plans. A lack of funding would also lead to 

diminished coordination (i.e., lack of personnel, insufficient training) of environmental 

compliance across the two bureaus—a key component to ensuring efficient, timely and effective 

environmental compliance of offshore activities. 

Marine Spatial Planning (+$1,000,000; +4 FTE) 

Executive Order 13547 calls for all executive agencies, to the fullest extent consistent with 

applicable law, to participate in the process for Coastal and Marine Spatial Planning (CMSP). 

The Final Recommendations of the Interagency Ocean Policy Task Force (Task Force), as 

adopted by this Executive Order, require the establishment of nine regional planning bodies 

(RPB) for the development of regional coastal and marine spatial plans. CMSP is, as defined by 

the Task Force, “a comprehensive, adaptive, integrated, ecosystem-based, and transparent spatial 

planning process, based on sound science, for analyzing current and anticipated uses of ocean, 

coastal, and Great Lakes areas.” As the only agency authorized to grant renewable energy, 

marine mineral, and oil and gas leases on the OCS, BOEMRE plays an integral role in the CMSP 

process and has been assigned the lead for DOI for coordinating CMSP efforts within and 

outside the bureau. Coordination of CMSP with other OCS users and regulators is important as 

new uses and potential conflicts grow. With oil and natural gas, renewable energy, marine 

Bureau of Ocean Energy Management, Regulation, and Enforcement 57 
 

 

OEMM-Leasing and Environmental Subactivity 

minerals, shipping/navigation, military uses, fishing, and others competing for space on the OCS, 

it is becoming more important to coordinate the growing demand for multiple uses of the OCS. 

This function is critical to the integrity of the 5-Year Oil and Gas Leasing Program that 

inherently balances these various competing interests and determines the size, timing, and 

location of oil and gas leasing activity on the OCS. CMSP affects the programs mandated by 

OCSLA and NEPA that are key components of the BOEMRE mission. BOEMRE is committed 

to communicating, consulting, and cooperating with many diverse stakeholders in order to build 

consensus while balancing national, regional, and local interests. 

The National Ocean Council (NOC) has identified the nine RPBs that will be responsible for the 

development of the actual plans and directed that the membership of each will “consist of 

Federal, State, and tribal authorities relevant to Coastal and Marine Spatial Planning for that 

region (e.g., resource management, including coastal zone management and fisheries 

management; science; homeland and national security; transportation; and public health.)”1 The 

DOI can provide a single official RPB representative to speak on its behalf, or ask individuals 

from BOEMRE, FWS or USGS to attend and contribute to the meetings. BOEMRE will 

participate as a member of six of the RPBs--North Atlantic, Mid-Atlantic, South Atlantic, Gulf 

of Mexico, West Coast, and Alaska--and may perform the Federal Co-Lead role, which is 

particularly significant and resource intensive, for two of the six RPBs. 

CMSP Coordinators: (2 FTE): As lead for CMSP for DOI, staff will also coordinate CMSP 

activity related to oil and gas activity marine minerals, and renewable energy. Specific examples 

of duties include: 

	 Serve as representative for inter-agency collaboration with other Federal agencies to try 

and accommodate other federal concerns and national policy, while actively protecting 

the mission of BOEMRE and other DOI bureaus as appropriate. 

	 Facilitate issues affecting CMSP regional planning entities and state concerns, while 

maintaining national goals. 

	 Work closely with OEMM counterparts in other divisions and regional offices to 

establish communication, engage in data sharing and products, determine data 

information and needs, and explore regulatory efficiencies. 

CMSP Environmental Scientist (1 FTE): Staff will incorporate CMSP principles and 

regulatory requirements in environmental assessments and impact analyses. Specific duties 

include: 

 Identify data and information needs required for CMSP; 

 Coordinate and implement CMSP-related environmental requirements into 

 BOEMRE rules, regulations and environmental review procedures; and 

 Coordinate and develop regional guidance for implementing CMSP requirements and 

processes in environmental analyses and review, including the Five-Year EIS. 

CMSP Geospatial Scientist (1 FTE): Staff will address basic information and data 

requirements necessary to effectively implement CMSP. Specific examples include: 

 Organize, maintain, and develop geospatial data relevant to marine spatial planning; 

1

 Final Recommendations of the Ocean Policy Task Force 

58 Bureau of Ocean Energy Management, Regulation, and Enforcement 
 

 

OEMM-Leasing and Environmental Subactivity 

 Coordinate with subject matter experts such as biologists, oceanographers, and social 

scientists within BOEMRE to determine the data needs, suitability, and relevance; 

 Conduct data quality control and assurance for BOEMRE environmental data as well as 

the suitability of third party data for CMSP; and 

 Identify data and information requirements for CMSP and develop scientific studies to 

address these needs. 

Cost Share and Data Information Needs ($400,000): BOEMRE will participate on six of the 

nine RPBs and may be functioning as Federal Co-Lead on two of the six. The Federal Co-Lead 

function involves coordinating overall RPB responsibility for timely progress on regional CMSP, 

calling meetings, establishing working groups as needed to facilitate regional CMSP, serving as 

designated Federal official in managing Federal Advisory Committee Act (FACA) bodies as 

needed, executing the regional CMSP Development Agreement for regional CMS plans, and 

providing administrative/financial support for RPB activities. The development of plans under 

the NOC framework and participating substantively on the RPBs ensures a cooperative approach 

for organizing and supporting state, regional and Federal management efforts including funding 

and identifying studies and resource evaluation projects of mutual benefit. As part of the 

planning process and beyond, data information plans, improved data accessibility, research of 

new technologies, governance process and outreach efforts will be identified and require funds 

and personnel. Additionally, it is anticipated that data will need to be acquired, organized, 

quality checked, archived, and distributed. Support costs, such as workshops, travel, training, 

and education, will also be incurred. 

The CMSP process will improve coordination and collaboration among stakeholders in the 

ocean, facilitate the dissemination of scientific information for decision-making, and allow a 

more comprehensive approach to management. Substantial ecological, economic, and social 

benefits will result from these efforts including: 

	 Ecosystem Based Management - The CMSP process is regional in scope and allows 

greater incorporation of ecosystem based management into the decision making process. 

	 Climate Change - Flexible CMSP planning allows consideration and adaptation of 

management to climate change by considering large-scale cumulative effects such as the 

changing distribution of species and habitats. 

 Efficient use of Ocean Space – The ability to optimally site ocean use for economic 

benefit. 

 Cost Savings - Increased coordination will increase sharing information and reduce 

redundancy in efforts such as environmental assessments. 

 Greater Transparency – Greater inclusion of stakeholders in the decision process will 

encourage investment in new ocean uses such as renewable energy. 

Impacts of Not Funding: The energy and mineral resources on the OCS are significant for the 

Nation. Determining the optimal relationship of these resources relative to other ocean uses is 

critical to resource decisions. The dedication of BOEMRE funds and staff to participate 

substantively in the development of the CMSP by RPBs will help to encourage appropriate 

energy (including renewable energy) development, reduce conflict among ocean uses, effectively 

use ocean space, and meet the environmental and economic challenges posed by climate change. 

Failing to fund this initiative could result in escalated conflict and litigation as the nation pursues 

Bureau of Ocean Energy Management, Regulation, and Enforcement 59 
 

 

OEMM-Leasing and Environmental Subactivity 

energy and mineral resource needs. 

Ensure Fair Market Value and Safe Operations (+$850,000; +0 FTE) 

Assuring receipt of fair market value (FMV) on OCS lands is mandated by the OCS Lands Act 

and its amendments and remains a critical responsibility of the Leasing and Environmental 

Program. A key aspect of ensuring fair market value involves the process BOEMRE applies to 

analyze a bid from industry for an OCS lease to determine, based on the estimated recoverable 

oil and gas resources, if the value of the bid provides a reasonable return for publicly owned 

energy resources. 

	 Block and Boundary Support: $850,000; 0 FTE. This increase will fund technological 

upgrades to existing lease management systems that will improve the accuracy and 

efficiency of lease boundary calculations. Accurate offshore lease boundary lines are a 

foundational requirement for all BOEMRE offshore leasing activities. Our current 

software for computing these boundaries and recording the results in the Technical 

Information Management System (TIMS) was originally written over 20 years ago for a 

punch card system – long before the availability of modern Geographic Information 

System (GIS) software. Some new computational requirements were never fully 

supported by our old system. Even those that are supported require months of work using 

our current system. Some of those computations could be done in just days or hours 

when BOEMRE converts to modern GIS software. The major costs for the conversion 

are to add some unique BOEMRE functional requirements that are not available in the 

commercial off-the-shelf GIS program, and to integrate the GIS software with our TIMS 

database, so that existing TIMS’ programs used by other BOEMRE units will continue to 

be supported. 

Impacts of Not Funding: The difficulties with the current software will affect BOEMRE’s 

efforts to determine FMV on lease bids and may also impact revenue sharing calculations for 

leases under Section 8(g) of the OCS Lands Act and the Gulf of Mexico Energy Security Act 

(GOMESA). Use of an antiquated system will continue to thwart the efforts of BOEMRE 

cartographers to produce products in an efficient and timely fashion. With the impending 

retirement of Mapping and Boundary Branch employees with expert knowledge of the old 

software, a complete halt to production of Official Protraction Diagrams (OPD) and 

Supplemental Official Block Diagrams (SOBD) is possible. OPD and Leasing Map (LM) 

boundaries cover areas of the OCS within Federal jurisdiction. LMs are irregularly shaped areas, 

developed early in BOEMRE offshore minerals management program, for near-shore areas in 

the Gulf of Mexico. OPDs cover the remainder of the area included in the BOEMRE offshore 

minerals management program. 

A SOBD is prepared for each block intersected by an offshore boundary (Submerged Lands Act 

Boundary, Limit of "8(g) Zone", National Marine Sanctuaries, etc.); a diagram of a specific OCS 

Block showing official boundaries and areas, also known as a “split block.” 

A failure to have the capacity to update the offshore boundaries on these diagrams would have a 

direct impact on BOEMRE’s ability to legally describe the areas potentially available for lease, 

60 Bureau of Ocean Energy Management, Regulation, and Enforcement 
 

 

 

OEMM-Leasing and Environmental Subactivity 

determine the fair market value for these leases, and determine the level and distribution of 

subsequent Federal revenues owed from such leases. 

Marine Minerals (-$2,000,000; 0 FTE) 

This reduction is being offered to offset priority budget increases and will eliminate funding for 

BOEMRE’s marine minerals program. Under this program, BOEMRE works with Federal, State 

and local entities to issue leases for sand and gravel on the OCS. BOEMRE receives eight to 10 

requests per year. The elimination of funding for the marine minerals program is proposed in 

order to enhance other critical mission activities. BOEMRE retains the authority to process 

individual lease requests for sand and gravel on a case-by-case basis; funds permitting. 

PROGRAM OVERVIEW 

BOEMRE plays a key role in securing ocean energy for the Nation. BOEMRE is a leader in 

facilitating energy development to meet the Nation’s domestic energy needs. It manages access 

to the energy and mineral resources of the OCS to help meet the energy demands and other needs 

of the Nation while balancing such access with the protection of the human, marine, and coastal 

environments. As of January 3, 2011, BOEMRE administers about 7,109 active mineral leases 

on approximately 38 million OCS acres. Production from these leases will generate billions of 

dollars in revenue for the Federal Treasury and state governments while supporting thousands of 

jobs. BOEMRE oversees production from the OCS that represents a significant portion of total 

domestic oil and natural gas production. In calendar year 2009, OCS leases offshore California, 

Alaska, and in the Gulf of Mexico provided 593.8 million barrels of oil and 2,506 billion cubic 

feet of natural gas, accounting for about 30 percent of the Nation’s oil production and 11 percent 

of domestic natural gas production. 

PERFORMANCE OVERVIEW 

The Leasing and Environmental (LE) subactivity funds the Leasing and Environmental 

Assessment Program and the Environmental Studies Program. A key indicator of performance is 

the ability to hold offshore lease sales as scheduled in the Secretary’s 5-Year Oil and Gas 

Leasing Program. The 5-Year Program for 2007-2012 was developed through an extensive 

consultation process prescribed by the OCS Lands Act, and is effective from July 1, 2007, 

through June 30, 2012. The Program as approved on June 29, 2007, included 21 sales in eight of 

the 26 OCS planning areas – three areas in the Gulf of Mexico, one area in the Mid-Atlantic, and 

four areas offshore Alaska. BOEMRE estimated that 10 billion barrels of oil and 45 trillion 

cubic feet of natural gas could be produced over 40 years as a result of sales under consideration 

in the Program. The 2007-2012 lease sale schedule can be found at: http://www.boemre.gov/5-

year/2007-2012LeaseSaleSchedule.htm 

Following the July 1, 2007, effective date, the Government was sued by environmental 

organizations and a native village in Alaska, alleging violations of the OCSLA and NEPA. In 

2009, the U. S. Court of Appeals for the District of Columbia (Court) remanded the program, 

finding that the DOI had failed to sufficiently analyze the environmental sensitivity of OCS areas 

as required under OCSLA section 18. The Court later limited its mandate to three areas offshore 

Bureau of Ocean Energy Management, Regulation, and Enforcement 61 
 

OEMM-Leasing and Environmental Subactivity 

Alaska—Beaufort, Chukchi, and Bering Seas. The bureau conducted an expanded 

environmental sensitivity analysis that the Secretary used, along with the other section 18 and 

NEPA analyses that had either been upheld or not challenged, in making his Preliminary Revised 

Program (PRP) decision that was submitted to the President and Congress and subject to a 

30-day comment period that ended May 3, 2010. The PRP retained 16 of the 21 lease sales in 

the 2007 Program, removing five sales from the three areas in Alaska subject to the Court 

mandate. Only one sale, Chukchi Sea Sale 193, held in 2008, remained in those areas. 

On December 1, 2010, the Secretary announced his final decisions for 2007-2012 and the 

Revised Program (RP) was filed with the Court on December 23, 2010. The RP retains the 16 

sales as in the PRP. However, in light of the April 2010 Deepwater Horizon event, Western Gulf 

Sale 215, scheduled for 2011, was cancelled to allow time to assess the environmental analysis 

used for the sale. The Secretary also cancelled Mid-Atlantic Sale 220, offshore Virginia, to 

allow more time to gather information and to coordinate with the Department of Defense. The 

bureau is currently preparing a Supplemental Environmental Impact Statement for Sale 193 in 

the Chukchi Sea and Sale 218 in the Western Planning Area of the Gulf of Mexico. The bureau 

is conducting the environmental analysis to support potential seismic activity in the Mid- and 

South Atlantic. Special interest sales in Cook Inlet, Alaska, will not be held due to lack of 

industry interest. 

Offshore oil and gas leases are awarded following the completion of an extensive, two-phase bid 

evaluation process to ensure that the Federal government receives a fair monetary return for the 

public mineral resources it makes available. Results of scheduled 2007-2012 offshore lease sales 

currently include a return of over $10.8 billion dollars: 

	 Sale 204, Western Gulf of Mexico, was held on August 22, 2007, and BOEMRE 

accepted high bids valued at $287,081,023 and awarded 274 leases to the successful high 

bidders. 

	 Sale 205, Central Gulf of Mexico, was held on October 3, 2007, and BOEMRE accepted 

high bids valued at $2,812,953,879 and awarded 682 leases to the successful high 

bidders. 

	 Sale 193, Alaska Chukchi Sea, was held on February 7, 2008, and BOEMRE accepted 

high bids valued at $2,662,059,563 and awarded 487 leases to the successful high 

bidders. 

	 Sale 206, Central Gulf of Mexico, was held on March 19, 2008, and BOEMRE accepted 

high bids valued at $3,671,052,702 and awarded 603 leases to the successful high 

bidders. 

	 Sale 224, Eastern Gulf of Mexico, was held on March 19, 2008, and BOEMRE accepted 

high bids valued at $64,713,213 and awarded 36 leases to the successful high bidders. 

	 Sale 207, Western Gulf of Mexico, was held on August 20, 2008, and BOEMRE 

accepted high bids valued at $483,959,404 and awarded 313 leases to the successful high 

62 Bureau of Ocean Energy Management, Regulation, and Enforcement 
 

 

 

OEMM-Leasing and Environmental Subactivity 

bidders. 

	 Sale 208, Central Gulf of Mexico, was held on March 18, 2009, and BOEMRE accepted 

high bids valued at $690,163,194 and awarded 328 leases to the successful high bidders. 

	 Sale 210, Western Gulf of Mexico, was held on August 19, 2009 and BOEMRE accepted 

high bids valued at $111,385,124 and awarded 155 leases to successful high bidders. 

	 Sale 213, Central Gulf of Mexico, was held on March 17, 2010. Forty million acres were 

offered for bid, receiving nearly $950M in high bids on 2.4 million acres. 

Leasing activities include planning for the 5-Year Oil and Gas Leasing Program, mapping and 

surveying OCS boundaries, implementing the lease sale process, and administering leases. 

These activities enable the bureau to meet its performance goals for the number of lease sales 

held, the timeliness of these sales, and the acreage offered through these sales. 

Effective management of the energy resources on the OCS for efficient access and development 

is supported by Environmental Assessment and Environmental Studies activities. The work 

provides information necessary to ensure operations are conducted in an environmentally sound 

manner and decisions are supported by good science. In addition, the Marine Minerals Program 

is responsible for all other minerals on the OCS, including sand and gravel. The bureau is 

currently processing over 20 requests in Virginia, North Carolina, South Carolina, Florida, and 

Louisiana. 

	 Environmental Assessment (EA) activities ensure that appropriate environmental 

information is available for planning and decision-making at all phases of OCS activities, 

from 5-Year Program planning through platform removal. This is accomplished by 

consultation with interested and affected parties, and preparation of environmental impact 

statements, environmental assessments, and related program-level reports. BOEMRE 

currently prepares hundreds of EAs each year; the number of EAs is expected to increase 

in the aftermath of the Deepwater Horizon oil spill and bureau policy changes regarding 

the use of categorical exclusions. 

	 The Environmental Studies Program (ESP) funds and manages scientific research to 

better understand the OCS environment and the effects of energy and mineral resource 

exploration and development activities, and the socioeconomic impacts on the human 

environment. Environmental Studies scientific information is used in the environmental 

assessment activity and in the development of measures to mitigate predicted impacts. 

Within its Activity-Based Costing (ABC) system, BOEMRE is able to allocate both EA and ESP 

expenses to the activities and operations they support. Further, BOEMRE tracks the number of 

leases issued and the number of lease administrative changes as end outputs, providing the 

ability to assign the full cost of leasing and lease adjudication activities, as well as proportional 

shares of program support and general administrative costs. Similarly, direct and indirect costs 

to non-energy minerals are allocated to the number of sand and gravel leases conveyed. 

Bureau of Ocean Energy Management, Regulation, and Enforcement 63 
 

 

OEMM-Leasing and Environmental Subactivity 

Environmental for 

Oil and Gas Plans 

and Permits 

30% 

Leasing 

12% 

Renewable Energy 

10% 

Lease 

Administration 

7% 

Non-Energy 

Minerals 

2% 

Environmental for 

Oil and Gas Leasing 

39% 

Figure 3. Estimated FY 2010 Leasing and Environmental Spending Profile 

2012 PROGRAM PERFORMANCE – LEASING & ENVIRONMENTAL ASSESSMENT 

Leasing Program: On December 1, 2010, the Secretary announced his revised OCS strategy, 

including the areas to be scoped for the 2012-2017 program. Scoping meetings have begun in 

covering the Gulf of Mexico and three areas offshore Alaska, the Beaufort and Chukchi Seas and 

Cook Inlet. No areas in the Atlantic or Pacific are being considered for scoping, nor is any area 

currently under moratorium in the Gulf of Mexico. The scoping meetings will be followed by 

preparation and publication of a Proposed Program and Draft EIS, and public comment period. 

This will be followed by preparation and publication of a Proposed Final Program and Final EIS, 

submitted to the President and Congress for a minimum 60 days before the Secretary may 

approve a new program. 

The 5-Year Program is a pivotal element of managing the Nation’s offshore mineral assets. The 

OCS Lands Act (OCSLA) requires the Department to prepare a long-range program that 

specifies the size, timing, and location of areas to be considered for Federal offshore natural gas 

and oil leasing. A lease sale cannot be scheduled unless it has been analyzed under the OCSLAprescribed process or has been mandated by Congress. BOEMRE works in consultation with 

stakeholders (including Federal and state agencies, local communities, federally recognized 

tribes, private industry, and the public) to develop a program that not only offers access to those 

areas of the OCS with the most promising potential for development of oil and natural gas 

resources, but also does so in an environmentally responsible manner. Under the 2007-2012 

Program, OCS oil and gas lease sales are scheduled on an area-wide basis with annual sales in 

the Central and Western Gulf of Mexico, and less frequent sales are scheduled in the Eastern 

Gulf of Mexico and offshore Alaska. 

64 Bureau of Ocean Energy Management, Regulation, and Enforcement 
 

 

OEMM-Leasing and Environmental Subactivity 

Environmental Assessment Program: As manager of energy and non-energy mineral resources, 

renewable energy resources, and alternate and related uses of existing facilities on the OCS, 

BOEMRE has the responsibility to ensure that exploration, development, and production 

activities on the OCS are safe and environmentally sound. OCS operations are managed for 

continued compliance with key Federal statutes including, but not limited to: 

 National Environmental Policy Act (NEPA) 

 Coastal Zone Management Act (CZMA) 

 Endangered Species Act (ESA) 

 Magnuson-Stevenson Fishery Conservation and Management Act (MSA) 

 Marine Mammal Protection Act (MMPA) 

 Sustainable Fisheries Act (SFA) 

 Clean Air Act (CAA) 

 Clean Water Act (CWA) 

 National Historic Preservation Act (NHPA) 

In keeping with the principles espoused by these guiding statutes, BOEMRE provides 

opportunity for public comment and consults with the National Oceanic and Atmospheric 

Administration (NOAA), the Fish and Wildlife Service (FWS), the Environmental Protection 

Agency (EPA), and others to develop a balanced leasing program and to promulgate regulations 

and permit requirements that protect natural and historical resources. 

OEMM assesses potential environmental impacts of proposed actions in accordance with NEPA 

and related regulations. The NEPA process is intended to help public officials make decisions 

based on an understanding of environmental consequences and take actions that protect, restore, 

and enhance the environment. Public involvement is an integral part of preparing environmental 

impact statements (EIS) and environmental assessments (EA). The OEMM solicits external 

input to help identify relevant issues, alternatives, mitigation measures, and analytical tools. 

NEPA and related regulations are followed at each stage in the leasing process, starting with the 

preparation of the final programmatic EIS for consideration prior to approval of the 5-Year 

Program. The final programmatic EIS addresses public comments in a responsive and 

responsible fashion. OEMM then prepares an EIS or a more focused EA prior to each lease sale 

and for other OCS oil and gas activities on a selective basis, including operators’ plans for 

exploration and development, pipeline permit applications, seismic survey permit applications, 

decommissioning permit applications, and other related industry activities. Each environmental 

review documents the potential environmental impacts and identifies mitigation measures that 

may be necessary to avoid or minimize adverse effects of a proposal. Many plans and permit 

applications will undergo more intensive environmental reviews in the aftermath of the 

Deepwater Horizon incident. The bureau’s use of categorical exclusions is in the process of 

being evaluated; new policies and procedures may be implemented as a result of this review 

process. 

Environmental review and compliance activities are expected to have renewed focus and 

importance following the proposed reorganization, although specific functions and capabilities 

may be replicated or focused in different bureaus. New policies and procedures will need to be 

developed to successfully implement the proposed reorganization and ensure open and effective 

Bureau of Ocean Energy Management, Regulation, and Enforcement 65 
 

OEMM-Leasing and Environmental Subactivity 

communication and coordination between bureaus and bureau staff. 

In FY 2012, major EIS documents that will be prepared include the 5-year Programmatic EIS, 

Gulf of Mexico Multisale EIS, and Atlantic G&G EIS. In addition, BOEMRE expects to prepare 

several hundred EAs in support of geophysical and geological permit decisions and plan 

approvals in the Gulf of Mexico and Alaska Regions. The number of EAs is expected to 

increase over historical levels given current restrictions on the use of categorical exclusions. The 

number and scope of environmental documents being prepared in support of Renewable Energy 

activities is detailed in the Renewable Energy subactivity. A substantial effort is anticipated in 

order to comply with the requirements of other environmental statues, such as ESA Section 7 and 

MSA Section 305 consultations. The level of effort required for consultation and coordination 

regarding other statues is uncertain and depends in part on the outcomes of ongoing litigation 

and consultations. 

Marine Minerals Program: BOEMRE’s Marine Minerals Program is responsible for managing 

all minerals on the OCS, not just oil and gas. Key workload data monitored in the ABC and 

GPRA systems include the number of sand and gravel agreements and cubic yards conveyed. 

Performance measures include the timeliness with which BOEMRE processes these agreements. 

Since 1995, the program has fulfilled every request for resources, conveying rights to nearly 55 

million cubic yards of OCS sand for shore protection and coastal restoration projects. 

2012 PROGRAM PERFORMANCE – ENVIRONMENTAL STUDIES PROGRAM 

The Environmental Studies Program (ESP) provides much of the scientific information needed 

for critical program decisions that must, as required by the OCS Lands Act, accommodate the 

delicate balance between the protection of the human, marine, and coastal environments and the 

Nation’s exploration, development, and production of petroleum and renewable energy resources 

and other marine minerals and energy-related alternate uses of OCS structures. The ESP 

provides the information needed for developing scientifically sound mitigating measures. 

Environmental studies are designed to address specific information needs concerning the 

environmental and socioeconomic state of a region, both before and after OCS activity. Our 

comprehensive approach to studies planning and development integrates science needs from 

multiple energy resources and mineral uses of the OCS to create cost-effective and efficient 

research efforts to meet the needs of resource managers across all program areas. A major 

program component of the ESP is focused on improving scientific understanding of the fate, 

transport and effects of discharges, and spilled materials such as oil, in the marine environment. 

The ESP research strategy supports gathering of baseline or reconnaissance information in areas 

before activities occur, along with ecosystem research and monitoring studies to meet the needs 

for an ecosystem-based approach to management decisions. 

Moving into 2012, the ESP will continue its focus on identifying and filling data gaps to provide 

the best possible scientific information for the program. Several areas of study proposed for 

2012 and beyond cut across geographic regions and disciplines. 

	 Renewable energy and alternate use issues remain a high priority for study. Of 

immediate concern are issues related to wind development in the Atlantic and 

66 Bureau of Ocean Energy Management, Regulation, and Enforcement 
 

 

 

OEMM-Leasing and Environmental Subactivity 

hydrokinetic facilities in the Pacific. 

	 Decommissioning of aging infrastructures is an ongoing topic in the Pacific and Gulf of 

Mexico regions, but is also a future concern for the Atlantic renewable industry. 

Considering the potential impacts to the environment when structures are removed an 

important studies component that feeds NEPA documents and consultations. 

	 In all areas, collection and updating of ecological and oceanographic baselines and efforts 

to monitor changes and effects will be expanded. Both natural variation and humaninduced events contribute to shifts in the balance of ecosystems. Understanding the 

causes and magnitude of these changes requires extensive effort in field work. 

	 As always, the ESP constantly seeks to improve its modeling capabilities, especially for 

OSRA and air quality. Physical oceanography and meteorological studies provide data 

and explore methodologies to enhance the accuracy of model outputs. 

External Contributions: The planning process emphasizes communication within BOEMRE as 

well as with Federal, state, and local governments, academia, industry, and non-government 

organizations. Additionally, program oversight is provided by the OCS Scientific Committee, 

chartered under the auspices of the Federal Advisory Committee Act, which advises BOEMRE 

on the feasibility, appropriateness, and scientific value of the ESP. Study recommendations are 

evaluated for program relevance, programmatic timeliness, and scientific merit. ESP research 

plans are developed in coordination with the Technology Assessment and Research program and 

the Oil Spill Research program to provide a multi-faceted, interdisciplinary bureau response to 

meet the environmental and safety needs of the offshore program. This process of coordination 

ensures the acceptability of program products in the broader community and the applicability of 

the results to BOEMRE information needs as well as those of our contributors and partners. 

Partnerships: The Environmental Studies Program effectively develops mission oriented 

scientific research while simultaneously successfully leveraging funds through partnerships such 

as the National Oceanographic Partnership Program (NOPP) , a collaborative community of 

Federal agencies working to improve knowledge of the ocean environment. Examples of recent 

studies developed and cosponsored through NOPP address topics of shared federal interest 

including an investigation of deepwater hard bottom canyon habitats in the Atlantic and a study 

to improve marine mammal data loggers. A larger multi-topic effort addresses renewable energy 

information needs, such as noise and visual impacts. Participation in NOPP and with other 

partners will continue in FY 2012. 

Program-wide, the ESP will continue to seek opportunities to learn from global offshore energy 

activities and seek international research partnerships that enhance ecosystem knowledge and 

protection. 

Bureau of Ocean Energy Management, Regulation, and Enforcement 67 
 

OEMM-Leasing and Environmental Subactivity 

Table 9: OEMM Performance Overview – Leasing and Environmental Performance Overview - Leasing and Environmental Note: Performance and Cost data may be attributable to multiple activities and subactivities. Therefore, measure costs may not equal totals shown in subactivity tables. Mission Area 2: Sustainably Manage Energy, Water, and Natural Resources Goal 1: Secure America's Energy Resources Supporting Performance Measures 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 Strategy 3: Manage conventional energy development including coal, oil, and natural gas Number of offshore lease sales held consistent with the Secretary’s Five-Year Oil and Gas Program (SP) 2 5 2 4 1 0 2* 2 TBD Total Actual/Projected Cost ($M) 33.2 39.4 40.9 44.6 42.7 43 Baseline Year** 0 -- Comments In December of 2010, the Secretary announced his final Revised Program (RP) for the Outer Continental Shelf Oil and Gas Leasing Program 2007- 2012. Once the RP has been approved by the Court and the supplemental environmental analyses in the Gulf of Mexico are complete, BOEMRE will take the necessary steps to ensure its successful implementation within statutory requirements. *It is anticipated that lease sales will resume early in FY2012 and based on the proposed December 2010 proposed Revised Program, two lease sales will be held (one in the Central Gulf of Mexico and one in the Western Gulf of Mexico).

***FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major 

This measure counts lease sales conducted under the OCS Oil and Gas Leasing Program as defined in the Secretary's Five-Year Prochanges anticipated for program operations. 

gram. In April 

2009, the DC Circuit Court remanded the 2007-2012 OCS oil and gas leasing program and required the Interior Department to "conduct a morecomplete comparative analysis of the environmental sensitivity of different areas.” Based on a revised environmental sensitivity analysis, the Secretary announced a Preliminary Revised Program (PRP) in March of 2010 that did not allow for additional lease sales to be held in the Beaufort Sea and 

Chukchi Sea planning areas under the 2007-2012 OCS Program and the President removed Bristol Bay from leasing consideration through 2017. 

Additionally in May 2010, the Secretary cancelled the Western Gulf of Mexico Sale 215 to determine whether the baseline environmental information

utilized in the multi-sale Environmental Impact Statement (EIS) conducted for this lease sale needed to change as a result of the Deepwater Horizon oil

spill. Collectively, these decisions resulted in the removal of five Alaska lease sales from the 5-Year Program (two in 2010 and three in 2011) and the 

cancellation of one Gulf of Mexico sale in 2010. For these reasons, only one of the four planned sales was held in FY 2010. 

68 Bureau of Ocean Energy Management, Regulation, and Enforcement 
 

 

OEMM-Leasing and Environmental Subactivity 

Supporting Performance Measures 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 

Percent of available OCS acres offered in each

year's lease sales (BUR) 

35%

(44.6/ 127.3) 

88%

(175.2/ 198.5) 

99.9%

(91.35/91.42) 72% 69% (62.57/90.91) 0% 99% 99% TBD 

Percent of available OCS oil and gas resources 

offered in each year's lease-sales (BUR) 

35.6%*

(19.5/ 54.7) 

98.9%

(161.2/ 162.9) 

100%

(77.99/77.99) 98% 71% (55.55/78.04) 0% 99% 99% TBD 

Total Actual/Projected Cost ($M) 33.2 39.4 40.9 44.6 42.7 43 Baseline Year** 0 --

CommentsPercent of Environmental Studies Program

projects rated "Moderately Effective" or better 

by BOEMRE internal customers (BUR) 

100% (12/12) 85% (29/34) 91% (20/22) 85% 91% (10/11) 85% 85% 0% TBD 

Percent of ESP Projects delivered on time(BUR) 

54%

(7/13) 

74%

(25/34) 

91%

(20/22) 60% 56% (6/11) 60% 60% 0% TBD

Performance results for these metrics are sensitive to the number and types of projects evaluated. The proposed targets for FY 2011 and 2012 considerthe impact of recent events on the studies program as well as the nature of planned studies. The field work required to complete these studies is in

general subject to unpredictable changes that affect planned timing, e.g., weather conditions or equipment availability. Furthermore, BOEMRE 

anticipates a significant expansion of the ESP program under the reorganization and division of the bureau into two separate organizations. 

Performance Overview - Leasing and Environmental (continued)Comments 

These measures count the acreage and resources offered (in BBOE - billion barrels of oil equivalent) through lease sales scheduled under the

Secretary's 5-Year OCS Oil and Gas Leasing Program. Targets for the 2007-2012 OCS Oil and Gas Leasing Program assume that the most prospective

acreage will be offered and are based on Secretary's Revised Program that was released on December 1, 2010. Since it is anticipated that no lease 

sales will be held in FY 2011, the percentage of available acres and resources offered are 0. In FY2012, two leases sales are anticipated to be held 

─the 218 Sale in the Western Gulf of Mexico and a combined sale in the Central Gulf of Mexico for scheduled Sales 216 and 222. *As a result of a settlement of litigation brought by the State of Louisiana, BOEMRE postponed Central Gulf of Mexico Sale 201 scheduled for March

2007, which decreased the quantity of resources offered in that year. **FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major

changes anticipated for program operations.These measures evaluate the effectiveness and timeliness of the ESP's projects. Starting in FY 2011 and continuing into FY 2012, BOEMRE anticipates conducting a number of high priority oceanographic, environmental, and social science studies to assess the impacts of the Deepwater Horizon spill that are not addressed through other efforts. Because oil released into the environment immediately undergoes a process of weathering and dispersalas it comes into contact with water or air, assessment must begin as quickly as possible to provide long-term tracking in terms of location, condition of the oil (chemical composition), and impact to natural resources and habitats. Multiple studies are also planned to inform the offshore Renewable Energy program. 

Bureau of Ocean Energy Management, Regulation, and Enforcement 69 
 

OEMM-Leasing and Environmental Subactivity 

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70 Bureau of Ocean Energy Management, Regulation, and Enforcement 
 

 

OEMM – Resource Evaluation 

FY 2012 PERFORMANCE BUDGET REQUEST 

Offshore Energy and Minerals Management 

Resource Evaluation Subactivity 

Table 10: OEMM Resource Evaluation Subactivity Budget Summary 

2010 

Enacted

Reorganization 

Transfers 

 (+/-) 

Fixed 

Costs 

(+/-) 

Administrative 

Cost Savings 

(-) 

Program 

Changes 

(+/-) 

Offsetting 

Collections 

Changes 

(+/-) 

Budget 

Request 

Change 

from 

2010 

(+/-) 

Resource Evaluation 

Subactivity 

($000) 

FTE 

35,285 

218 

0 

0 

+48 

0 

-211 

0 

-60 

+3 

-329 

0 

34,733 

221 

-552 

+3 

SUMMARY OF FY 2012 PROGRAM CHANGES 

Request Component Amount FTE 

Fair Market Value +1,080 +1 

Bid Evaluation +310 +2 

Fixed Costs +48 0 

Administrative Savings -211 0 

Offsetting Collections -329 0 

Reorganization Efficiences and Changes -550 0 

Center for Marine Resources and Environmental Technology -900 0 

Total: -552 +3 

JUSTIFICATION OF 2012 PROGRAM CHANGES 

The FY 2012 budget request for the Resource Evaluation Subactivity is $34.7 million and 

221 FTE, a net program decrease of $0.5 million and a net increase of 3 FTE from the FY 2010 

enacted budget and a decrease of $0.2 million from the FY 2011 CR level. 

Consolidated information regarding fixed costs can be found in the General Administration 

subactivity. Information regarding BOEMRE’s efforts to reduce administrative costs and 

achieve reorganization efficiencies can be found in the General Statement. 

Ensure Fair Market Value and Safe Operations (+$1,080,000; +1 FTE) 

Assuring receipt of fair market value on OCS lands is mandated by the OCS Lands Act and its 

amendments and remains a critical responsibility of the Resource Evaluation (RE) program. 

Regional offices, in conjunction with headquarters oversight, perform the functions necessary to 

thoroughly assess the oil and gas potential and fair market value of OCS tracts offered for lease. 

In FY 2011, BOEMRE originally requested $2.3 million in the Fair Market Value and Safe 

Operations initiative for both data studies and database development for the RE program in the 

Gulf of Mexico Region (GOMR) and critical workforce needs for the Alaska Region. Due to 

Bureau of Ocean Energy Management, Regulation and Enforcement 71 
 

OEMM – Resource Evaluation 

changing priorities in FY 2012, some of these resources are being redirected to provide 

additional funding for permitting activities in the Regulatory subactivity. Also, the GOMR will 

prioritize and implement its database development efforts over a longer period than originally 

planned. These changes enable BOEMRE to reduce this request in FY 2012 to $1.1 million. 

Fair Market Value Development (+$1,080,000; +1 FTE) 

The program requires database enhancements and leading edge data studies necessary to 

maintain pace with industry advances and continue to provide the existing high standards and 

quality of fair market value (FMV) determinations. BOEMRE is requesting $650,000 and 1 FTE 

for database development, which includes design and maintenance of both the petrophysical 

database and FMV database. 

The petrophysical database was designed as a basis of workflow improvements identified in the 

Technical Information Management System (TIMS) Web Portal process and is meant to store 

petrophysical analyses (sand counts, pay, porosity, etc.) for all wells. The analyses are to be done 

as the well data is received by the Region and are designed to support all regional organizations 

that use petrophysical analyses ranging from lease sale evaluations to reserves estimates. 

Currently, BOEMRE does not have a petrophysical database, and data from multiple hundreds of 

well evaluations are stored in individual MS Excel spreadsheets in a file folder type system. This 

data cannot be queried which limits the effectiveness of this information and reduces efficiency. 

The longer it takes to complete this database, the more data there will be to migrate into a new 

database, placing more strain on limited information technology resources. Although the 

petrophysical database does not exist, detailed system requirements were completed as part of 

the original OCS Connect Project. 

The FMV database was designed to capture the results of prospect analyses done for lease sales. 

This data is valuable for a wide variety of uses ranging from wide-area resource assessments to 

field reserves studies. The current FMV database was developed in MS Access. This data is at 

risk and is not accessible to anyone outside of the Geological and Geophysical Section of the RE 

program and is not easily searchable. Detailed requirements for the development of an FMV 

database were completed during the TIMS Web Portal process. This effort will be contracted 

out. 

Once the database development is complete, leading-edge, complex data studies and resulting 

data sets will be needed in order to analyze deep shelf plays and ultra-deepwater plays, like the 

Lower Tertiary, and associated reservoirs. BOEMRE will need to contract with industry experts 

to perform studies that will ultimately provide such analysis as rock properties of reservoirs and 

seismic data inversion, and then train BOEMRE employees to integrate this new data into the 

current workflow process and newly developed databases. Industry is currently using these 

analyses in determining their bids, and in decisions related to drilling, developing, and producing 

certain fields. 

In addition, BOEMRE is requesting $430,000 for Geological Interpretive Tools (GIT) computer 

capability to ensure that the public continues to receive fair market value for OCS oil and gas 

resources. Additional staff will require technical tools and GIT software licenses, as well as 

72 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

OEMM – Resource Evaluation 

traditional workstation tools such as personal computers and related software licensing. 

Additional data storage capacity is also required. 

Impacts of Not Funding: 

o	 Reliance on antiquated systems and databases for information and data analysis 

jeopardizes and compromises our ability to perform the functions necessary to thoroughly 

assess the oil and gas potential and fair market value of OCS tracts offered for lease. 

o	 Inability to maintain technological and subject matter expertise parity with a rapidly 

advancing industry and provide adequate training to critical positions. 

Bid Evaluation (+$310,000; +2 FTE) 

Additional staff are needed to interpret new data and information in order to complete bid 

adequacy determinations, estimate discovered volumes for potential energy legislation and 

policy analysis, develop lease sale analogs for new discoveries, and revise assessments of 

undiscovered resource potential. These activities contribute to ensuring fair market value is 

received for public resources. 

The requested funding will allow BOEMRE to prepare for and more effectively conduct a 

determination of whether the public has received a fair value for the public resource (e.g. a 

formal evaluation involving a review of geologic, economic and technical parameters). 

Assuring receipt of fair market value on OCS lands is mandated by the OCS Land Act and its 

amendments and remains a critical responsibility of the RE program. Regional offices, in 

conjunction with headquarters oversight, perform the functions necessary to thoroughly assess 

the oil and gas potential and fair market value of OCS tracts offered for lease. 

Impacts of Not Funding: The receipt of lease sale bonuses would be delayed in a large sale 

due to the evaluation period being extended to ensure receipt of fair market value for the tracts 

bid upon. The potential is not completing timely, having to extend the sales, pulling resources 

from other areas, and not getting reserve estimates or assessment work done timely as a result of 

inadequate staff. Fair market value might not be as detailed a scientific analysis as expected, 

lacking critical analog information (from reserves or assessment) needed for decision makers. 

Bids not evaluated during the required time are returned if extending the sale is not approved, 

and rejection or delayed acceptance of tracts potentially results in loss of bonus and other future 

revenues. 

Center for Marine Resources and Environmental Technology (-$900,000; 0 FTE) 

The Center for Marine Resources and Environmental Technology (CMRET) was reauthorized 

under the Marine Minerals Resources Research Act of 1996 and placed under oversight of the 

Department of the Interior. BOEMRE manages the program. The mission of the CMRET at the 

University of Mississippi is to conduct research on the exploration and extraction of minerals 

Bureau of Ocean Energy Management, Regulation and Enforcement 73 
 

OEMM – Resource Evaluation 

from the seabeds of the Gulf of Mexico. The CMRET in Mississippi was funded in the amount 

of $900,000 in FY 2010. 

BOEMRE recognizes the importance of the investigations and technological development that 

this center pursues, particularly the longer-term research. However, BOEMRE must focus on 

core objectives. Therefore, BOEMRE is proposing to eliminate the Congressionally earmarked 

CMRET funding in FY 2012. 

PROGRAM OVERVIEW 

Resource Evaluation activities support all Offshore Energy and Minerals Management (OEMM) 

program areas, both energy and non-energy, by conducting critical technical and economic 

analyses needed to support program decision making. The program identify areas of the OCS 

that are most promising for oil and gas development (including methane hydrates) through the 

acquisition and analysis of geological and geophysical data; estimate the quantities of 

undiscovered technically and economically recoverable resources that may exist and the volume 

of reserves discovered and likely to be produced; forecast future industry activity levels; and 

determine the adequacy of high bids received for individual tracts offered for lease. Economic 

and statistical analyses are performed that incorporate RE program data and information into 

overall BOEMRE and DOI leasing policies and program decisions, such as the design of 

financial terms for lease sales. International activities provide BOEMRE the opportunity to 

become involved in initiatives that promote better integration of safety and environmental 

concerns into offshore development decision-making. 

PERFORMANCE OVERVIEW 

Principal indicators of performance for RE include the fair market value (FMV) ratio, which 

serves as a measure of the effectiveness of OEMM tract valuation and bid adequacy procedures. 

BOEMRE evaluates the high bid received on each tract in relation to estimated hydrocarbon 

potential and related economic, cost, and engineering factors to determine if the bid is adequate. 

The evaluation of a high bid is based on a two-phase process. Phase 1 is conducted on a tractby-tract basis and is normally completed within a short time following the opening of bids. This 

analysis is designed to accept those high bids where competitive market forces can be relied 

upon to assure receipt of FMV. 

High bids not accepted in Phase 1 receive further evaluation in Phase 2. BOEMRE geoscientists, 

engineers, and economists conduct detailed analyses and develop possible scenarios for oil and 

gas exploration and production from these tracts. RE program staff integrate geological & 

geophysical, engineering, and economic data in a complex computer model called MONTCAR 

to derive estimates of tract values. The MONTCAR model provides a means of handling a series 

of results for such variables as the timing of development and production activities, lease terms 

and conditions, project costs, reservoir performance, price forecasts and other subjective factors 

such as geologic risk. The model performs a discounted cash flow analysis, resulting in a 

resource economic value that is the mean of the range of values from more than 10,000 trials. 

Industry bids are primarily compared to BOEMRE estimates of net present value in conjunction 

with market criteria to determine if they are acceptable. If the bid does not meet BOEMRE FMV 

74 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

OEMM – Resource Evaluation 

requirements, the bid is rejected and the tract is returned to the inventory for possible leasing in 

the area’s subsequent lease sale. Performance data indicate that, over the 4-year period from 

2005 to 2008, more than half of the tracts with bids rejected through these procedures did receive 

acceptable high bids when re-offered in a subsequent sale. The number of tracts evaluated is 

recorded on a quarterly basis in the bureau’s ABC system. Data indicate that over the period 

from 1997 through 2009, tracts with high bids initially rejected, when re-offered in a subsequent 

sale, received high bids representing a net gain of $506 million, an increase of 414 percent over 

the original bids. The success of these efforts is also a testament to the program’s continued 

success at achieving its annual GPRA FMV ratio target. For each program year, BOEMRE 

expects competitive factors to sustain a premium ratio of about 1.8 to 1 (+/- 0.4) when comparing 

industry high bids to the BOEMRE estimate. The last sale BOEMRE evaluated was held on 

March 17, 2010. There have been no sales since then, so BOEMRE is unable to report a ratio for 

2011. However, BOEMRE has maintained a premium ratio of 1.8 (+/- 0.4) to 1 when comparing 

industry high bids to BOEMRE values. 

Bid Procedures Lead to Higher Returns 

BOEMRE bid adequacy procedures have consistently resulted in higher returns in subsequent 

sales for tracts that have had bids rejected on fair market value grounds in previous sales. Since 

1984, BOEMRE has rejected total high bids of $597.1 million in the Gulf of Mexico. 

Subsequently, the same blocks were re-offered and drew high bids of $1.565 billion, for a total 

net gain of $967.9 million. 

Within its Activity-Based Costing (ABC) system, OEMM tracks the number of tracts assessed or 

evaluated as an end output, providing the ability to assign the full cost of resource evaluation 

activities, as well as proportional shares of program support and general administrative costs. 

Renewable 

En ergy 

1% 

Reserves 

In ventory 

25 % 

Tract Evaluation 

20% 

Ass essm ent & 

Modelling 

16% 

Conservation of 

Resources 

5% 

G&G Data 

Acquisition 

33% 

Figure 4. Estimated FY 2010 Resource Evaluation Spending Profile 

Bureau of Ocean Energy Management, Regulation and Enforcement 75 
 

 

OEMM – Resource Evaluation 

Geological & Geophysical Data Acquisition: BOEMRE develops regulations governing the 

collection of geological & geophysical data related to mineral exploration on the OCS. Permits 

are issued to industry for the acquisition of data that include stipulations that ensure exploration 

and research activities are conducted in an environmentally safe manner and will not interfere 

with other activities occurring in the area. BOEMRE inspects the data collected by industry and 

others and selectively acquires portions, as needed, to support the Bureau’s resource modeling 

and evaluation efforts. Interpretations of geological & geophysical data are used to prepare 

updated resource assessments, to determine the adequacy of bids submitted for leases, and to 

support decisions related to operator plans and activities, as well as a variety of studies related to 

the OCS. 

The use of three-dimensional (3-D) seismic data has become standard in the Gulf of Mexico and 

elsewhere for exploration as well as development activities. The use of 3-D reflection 

techniques not only portrays subsurface structure and stratigraphy but also reveals information 

about fluids within the subsurface. A sophisticated computer processing technique, called prestack depth migration, has revolutionized hydrocarbon exploration in the Gulf of Mexico. This 

reprocessing technique allows geoscientists to properly image salt bodies and the sediment strata 

beneath the salt, opening these areas to lower risk exploration. BOEMRE has in its inventory 

over 2.5 million line-miles of 2-D seismic information covering all portions of the OCS. Since 

1993, BOEMRE has acquired, primarily in the Gulf of Mexico, about 1.2 million square-miles of 

3-D seismic data. 

76 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

OEMM – Resource Evaluation 

Figure 5: Existing BOEMRE 3-D Seismic Data Inventory, Gulf of Mexico (2010) 

Resource Modeling and Assessment: Another component of the RE subactivity is Resource 

Modeling and Assessment, which addresses resource assessment, tract evaluation, field reserves 

inventories, and various economic and policy analysis needs. Since the mid-1980s, BOEMRE 

has conducted assessments of the hydrocarbon resources throughout the OCS for the purpose of 

developing knowledge concerning the potential occurrence of mineral resources and their 

characteristics, i.e., location, type, accumulation sizes, and potential for commercial recovery. 

BOEMRE assesses the hydrocarbon potential and estimates the value of OCS lands through the 

use of complex computer models and methodologies that incorporate specific geological & 

geophysical information, stochastic mathematical and statistical concepts, risk analysis, 

geoscientific models, and a variety of assumptions pertaining to economic, exploration, and 

development scenarios and costs. These resource assessments provide valuable information for 

policy decision makers throughout the leasing process. Information acquired through BOEMRE 

resource assessment activities has been instrumental in the development of the 5-Year Program 

(the determination of what planning areas to offer, and creation of exploration and development 

scenarios); oil spill analyses; the formulation and analysis of numerous legislative proposals and 

policy alternatives; NEPA analyses; and conservation-related decisions. Further, the oil and gas 

Bureau of Ocean Energy Management, Regulation and Enforcement 77 
 

OEMM – Resource Evaluation 

industry and the investment community often use BOEMRE reports and data in their own 

assessments. 

The number of OCS blocks assessed is tracked on a quarterly basis in the bureau’s ABC system. 

Comparing the data for acreage and resources offered illustrates that the RE program identifies, 

and the leasing program offers access to, geologic areas on the OCS that offer the highest 

potential for development of oil and natural gas. Non-energy mineral resources, such as sand 

and gravel, are also evaluated through regional geologic studies. BOEMRE also estimates the 

amounts of oil and natural gas likely to be discovered and produced as a result of leasing, and 

generates potential scenarios of the future industrial activities associated with exploration, 

development, and production. Resource estimates, and exploration and development scenarios, 

provide an important basis for the Bureau’s environmental impact statements and other technical 

studies and policy analyses. 

Field Reserves Inventories: BOEMRE develops independent estimates of economically 

recoverable amounts of oil and natural gas contained within discovered fields by conducting 

field reserve studies. The reserve estimates are revised periodically to reflect new information 

obtained from development and production activities. Reserve studies are critical inputs to 

resource assessments, the review and approval of royalty relief applications, as analogs for bid 

adequacy determinations, and in the review of industry plans and requests. The geologic and 

engineering information also support other program activities within the Department of the 

Interior and cooperative efforts with the Department of Energy and the Energy Information 

Administration. 

Economic Analysis: The economic analysis expertise within the program is often called upon to 

analyze and implement regulatory and legislative actions affecting OCS leasing, exploration, 

development, and production activities. Further, ad hoc studies are undertaken to address 

specific policies and compilations of data needed to analyze overall OCS program 

responsibilities. Specific examples include: 

 Conducting economic analysis to evaluate proposed legislation, to support 

development of regulations, and to evaluate and recommend policies for lease terms, 

conditions, and bidding systems for individual lease sales and the 5-Year Program 

and for similar activities for the renewable energy program; 

 Developing, updating, and reviewing procedures to ensure receipt of fair market 

value for oil and gas sales and to design auction formats and fiscal terms for leases 

issued under the renewable energy program; 

78 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

OEMM – Resource Evaluation 

	 Reviewing and designing policies and methods affecting programmatic 

responsibilities in the areas of forecasting receipts from the offshore energy programs, 

assessing the government’s share of receipts from its offshore oil and gas energy 

program in comparison to shares obtained by other countries, designing and 

implementing revenue sharing programs with coastal states and their political 

subdivisions under the Energy Policy Act and the Gulf of Mexico Energy Security 

Act, proposing operator drilling and development diligence requirements, developing 

policies to ensure the timely and economically efficient decommissioning of wells 

and structures, assessing options for reducing greenhouse gas emissions on offshore 

facilities, evaluating appropriate size of civil penalties, and reviewing requests by 

bidders for reconsideration of their rejected high bids and by operators for revisions 

in the fiscal terms of their leases; 

 Developing and maintaining economic models/databases in support of sale design, 

resource evaluation, and post-sale operational activities; 

 Designing policies and conducting economic analysis in support of myriad 

rulemaking initiatives following the Deepwater Horizon event; and 

	 Providing economic analyses and fiscal forecasts on minerals leasing policies, legal 

and legislative alternatives, and national energy strategies in response to requests 

from the BOEMRE Director, the Secretary of the Interior, the Office of Management 

and Budget, the Department of Justice, the Council of Economic Advisors, the 

Government Accountability Office, and the Congress. 

The Performance Overview Tables for the Resource Evaluation Subactivity are shown on the 

following pages. 

Bureau of Ocean Energy Management, Regulation and Enforcement 79 
 

 

 

OEMM – Resource Evaluation 

Table 11: OEMM Resource Evaluation Program Performance Change 

2008 

Actual 

2009 

Actual 

2010 

Actual 2011 Plan 2012 

Plan 

Program 

Change 

Accruing 

in 2012 

Program 

Change 

Accruing 

in Outyears 

A B=A+C C 

Percent of high 

bids accepted or 

rejected within 60 

days (PART) 

41% 65%1 56% N/A2 55% N/A TBD 

Maintain the ratio 

of 1.8 to 1 (+/-0.4) 

of accepted high 

bids to BOEMRE’ 

estimated value 

(BUR) 

2.49 to 1 1.7 to 1 1.81 to 1 N/A2 1.8 to 1 

(+/- 0.4) N/A TBD 

Total 

Actual/Projected 

Cost of All 

Metrics ($000) 

$14,100 $12,500 13,500 N/A2 Baseline 

Year3 N/A TBD 

Comments 

To ensure that the American public receives fair market value for the OCS resources, 

BOEMRE must utilize similar methods and stay technologically close to industry capability. 

The data sets, tools, and technologies currently being used to identify and evaluate 

mineral resources have advanced in recent years and continue to evolve. This initiative 

will allow BOEMRE to upgrade its resource evaluation tools to stay technologically 

relevant with industry and maintain its resource assessment and bid evaluation capacity. 

Notes: 

1 FY 2009 results include bid evaluations that BOEMRE conducted for BLM’s lease sale in 

the National Petroleum Reserve-Alaska. 

2 The FY 2011 target and cost for these metrics are N/A because no lease sales will be 

held during the fiscal year. 

3 FY2012 will be a baseline year for performance costs due to the planned reorganization 

of BOEMRE into two separate bureaus. 

2012 PROGRAM PERFORMANCE – RESOURCE EVALUATION 

Program Performance – Resource Evaluation Program 

Resource Assessment: The program, through its assessment procedures, identifies geologic 

plays on the OCS that offer the highest potential for the occurrence of oil and natural gas 

development and production. Following the identification of hydrocarbon plays, BOEMRE 

carries out thorough analysis of the play’s hydrocarbon potential and its economic viability with 

the help of complex computer models and methodologies. The assessment process incorporates 

specific geologic information, mathematical and statistical analyses, risk and probability 

theories, economic scenarios, petroleum engineering data, and a variety of additional technical 

assumptions. Besides the estimation of the undiscovered hydrocarbon resources, these studies 

help identify environmental and operational constraints as well as assist in making leasing 

decisions. Resource estimates must also be developed to support critical analyses of potential 

impacts of policy options, legislative proposals, EISs, and industry activities affecting OCS 

natural gas and oil activities — both current and future. 

The geosciences aspect of the resource assessment work involves the study of the geology of an 

area; its geologic history, regional stratigraphy and geologic trends; major structural features; 

80 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

 

OEMM – Resource Evaluation 

exploration history; study of source rocks, reservoir rocks, seals and trapping mechanisms; and, 

the identification of the most prospective portions of a planning area in terms of hydrocarbon 

potential. Long lead times are often required to determine whether a basin may be oil- or gasprone, to identify the presence of reservoir rocks, source rocks, and traps necessary for natural 

gas and oil accumulation. The results of this work are updated as new data and information are 

generated and acquired. The program is beginning work on a new National OCS assessment to 

support the next 5-Year Oil and Gas Leasing Program and expects to complete the assessment in 

mid-2011. 

The scale of the assessment activities range from large (i.e. regional or OCS-wide) to salespecific, (i.e., individual prospects). In the early stages, the focus is on regional areas, but as 

more data and information are acquired, the focus shifts to lease sales and prospect-specific areas 

to be offered for lease, or which are related to a specific issue (i.e., moratoria, marine sanctuaries, 

quantitative analysis of legislative proposals, etc.). Once a sale area has been identified, the 

program produces more detailed mapping and analyses needed to estimate the resource potential 

of individual prospects within that area. These prospect-specific data, maps, and analyses are 

also used to determine parameters for post-sale bid analyses. 

Reserves Inventory: The DOI is required under the OCS Lands Act to “...conduct a continuing 

investigation... for the purpose of determining the availability of all oil and natural gas produced 

or located on the Outer Continental Shelf.” BOEMRE’s Reserves Inventory Program represents 

a significant part of the RE scope and further contributes to: 

Energy supply forecasting; 

Public policy decisions; 

Independent assessment/verification; and, 

Assuring fair value in public/private transactions. 

The reserves inventory component of the RE program assigns new producible leases to fields and 

establishes field limits. The RE program also develops independent estimates of original 

amounts of natural gas and oil in discovered fields by conducting field reserve studies and 

reviews of fields, sands and reservoirs on the OCS. The RE program periodically revises the 

estimates of remaining natural gas and oil to reflect new discoveries, development information 

and annual production. 

A field is an area consisting of a single reservoir or multiple reservoirs all grouped on, or related 

to, the same general geological structural feature and/or stratigraphic trapping condition. There 

may be two or more reservoirs in a field that are separated vertically by impervious strata, 

laterally by geologic barriers, or by both. Hydrocarbons (gas and oil) estimated on the basis of 

geologic knowledge to exist outside of known accumulations are undiscovered resources. 

Hydrocarbons whose location and quantity are known or estimated from specific geologic 

evidence are discovered resources. 

Fair Market Value Determination: Assuring receipt of Fair Market Value on OCS lands was 

mandated by the OCS Lands Act and its amendments and remains a critical responsibility of the 

RE Program. Regional RE offices, in conjunction with headquarters oversight, perform the 

Bureau of Ocean Energy Management, Regulation and Enforcement 81 
 

 

OEMM – Resource Evaluation 

functions necessary to thoroughly assess the oil and gas potential and fair market value of OCS 

tracts offered for lease. These tracts are offered through sales that are conducted in accordance 

with the OCS 5-Year Oil and Gas Leasing Program. As a result of this program, BOEMRE has 

become one of the largest providers of non-tax revenue for the U.S. Federal Government. 

Once a lease sale is completed and the high bidders for each tract are publicly announced, 

BOEMRE follows specific bid adequacy procedures to ensure that the government receives fair 

market value for the tracts receiving bids. This process is carried out in several phases and 

incorporates geological and geophysical data along with reserve, resource, engineering and 

economic information into a sophisticated discounted cash flow computer model. The goal of 

that model is to achieve estimates of fair market value on tracts receiving bids. In general, the 

tract evaluation process consists of Phase 1 and Phase 2 described below. 

Phase 1 of the process is conducted on a tract-by-tract basis and is normally completed fairly 

early following the bid opening. It is designed to accept those high bids where the competitive 

market can be relied upon to assure receipt of FMV or where Government data indicate the tract 

does not contain a viable prospect. 

Those high bids not accepted in Phase 1 receive further evaluation in Phase 2. For those high 

bids, BOEMRE geologists, geophysicists, petroleum engineers, economists, and computer 

scientists prepare detailed estimates of the economic value of oil and gas resources on each tract 

in Phase 2. The high bids are then compared to program estimates of economic value of the 

corresponding tract. That value is determined by calculating the amount of economically 

recoverable resources, estimating recovery factors, production profiles, exploration and 

development costs, operating costs, revenue streams, and performing a discounted cash-flow 

analysis. The computer simulation model performing that task also incorporates geologic and 

economic risking. The prospect-specific analyses are incorporated into the regional maps. Most 

analyses are undertaken based upon data available at the time of the sale; however, additional 

geophysical and geological data may be obtained after the sale at the discretion of the Regional 

Director. Generally, the Regional Director must accept or reject all bids within 90 days after the 

date on which they are opened. Any bid not accepted within 90 days is rejected. The time 

period for acceptance or rejection of a bid may be extended if conditions warrant (30 CFR 

256.47 (2)). Companies have 15 days to appeal any rejection. 

Regulation of Prelease Geological and Geophysical (G&G) Exploration: The general 

purpose of the regulations is to ensure that prelease exploration, prospecting, and scientific 

research operations in Federal waters do not interfere with each other, with lease operations, or 

with other uses of the area. The regulations also encourage G&G data acquisition while 

adequately protecting the investment of data gathered and still assuring equal access and 

competitive balance. Industry adherence to these regulations is intended to ensure that G&G 

exploration and research activities are conducted in an environmentally safe manner. 

The permits, issued by program Regional Supervisors, set forth the specific details for each datagathering activity, which include the area where the data are collected, the timing of the datagathering activity, approved equipment and methods, and other similar detailed information 

relevant to each specific permit. 

82 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

OEMM – Resource Evaluation 

After data have been collected by permittees, BOEMRE selectively acquires data that are needed 

to update the existing database. Industry uses these G&G data to determine the areas having 

potential for oil and gas production. Oil companies also use these data for preparing bids for 

lease sales. BOEMRE also acquires data that have been collected for scientific research 

activities, for which an approved permit or filing of notice is required. 

For each approved application, the operator receives a signed copy of the permit that outlines 

policies regarding reporting, submission, inspection, and selection of data, reimbursement, 

disclosure of information, possible sharing of data with affected states, and policies regarding 

permit modifications. 

Each Region has unique environmental concerns and these are addressed through mitigating 

measures at the regional level. Such stipulations are available on each BOEMRE regional 

office’s webpage. 

BOEMRE tracks G&G permits by calendar year. Total permits demonstrate that most OCS oil 

and gas activity has been in the Gulf of Mexico. The Gulf of Mexico has issued 83 percent of all 

permits and is followed by the Alaska Region with nine percent. The Pacific Region has issued 

six percent of the permits, followed by the former Atlantic Region with about two percent. 

However, since 1994 the limited activities that have taken place in the Atlantic have been 

managed from and assigned to the Gulf of Mexico Region. With the addition of these 

responsibilities, the percentage of total permits for the Gulf of Mexico Region increases to 85 

percent. These statistics correlate extremely well with the dominant position of the Central and 

Western Gulf of Mexico planning areas in OCS oil and gas activities. 

It should be noted that since 1969, approximately 95 percent of the permits issued were for 

geophysical exploration and that geological exploration permits accounted for only five percent. 

While the total number of 3-D permits compared to all permits issued is rather small (eight 

percent) when compared with the total geophysical permits issued, over the past 10 years, 3-D 

permits have averaged over one-third of all geophysical permits. Permits for deep stratigraphic 

test wells or Continental Offshore Stratigraphic Test (COST) wells account for about two percent 

of the geological permits. 

The overall trends in permitting for all the Regions (i.e. Gulf of Mexico, Alaska and the Pacific) 

are similar and reflect fluctuations in the price and supply of petroleum. Some regional 

differences can be detected that are related to leasing moratoria, operating conditions, and 

hydrocarbon discoveries. 

G&G Data Acquisition and Analysis: The main objective of the acquisition and analysis of 

G&G data is the development of maps identifying areas favorable for the accumulation of 

hydrocarbons. This is done by incorporating the data acquired through G&G surveys plus 

analyzing technical information to develop a basic knowledge of the geologic history of an area 

and its effects on hydrocarbon or strategic/critical minerals generation, distribution, and 

accumulation within the planning area. 

Bureau of Ocean Energy Management, Regulation and Enforcement 83 
 

OEMM – Resource Evaluation 

The primary source of the G&G data and information used by the RE program is the oil and gas 

industry, which conducts exploration, development, and production activities on OCS lands. The 

BOEMRE issues permits to industry for collecting pre-lease as well as post-lease G&G data. 

The RE program approves the permits of pre-lease data acquisition, while other BOEMRE 

programs (e.g. Offshore Regulatory Program) issue permits for post-lease data collection. 

Permittees, as well as lessees and operators, are required by regulations to provide certain G&G 

data and information to BOEMRE. BOEMRE selectively obtains copies of data acquired in 

these pre-lease activities. Permittees and lessees are normally reimbursed by BOEMRE for only 

the cost of data reproduction. However, if industry has collected data in areas not under 

BOEMRE jurisdiction, e.g., state waters or adjacent foreign waters, and BOEMRE selects such 

data, BOEMRE pays the significantly higher "market price" for obtaining copies of such data. 

The extensive amount of data and information acquired by BOEMRE is used by resource 

evaluation geologists, geophysicists, petroleum engineers, modelers and IT specialists to 

perform a variety of analyses leading to resource evaluation, reserve inventory as well as 

determining fair market value of the auctioned tracts. 

84 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

OEMM – Resource Evaluation 

Table 12: OEMM Performance Overview – Resource Evaluation Performance Overview - Resource Evaluation Note: Performance and Cost data may be attributable to multiple activities and subactivities. Therefore, measure costs may not equal totals shown in subactivity tables. Mission Area 2: Sustainably Manage Energy, Water, and Natural Resources

Goal 1: Secure America's Energy Resources

Supporting Performance Measures 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 Presiden Budget t's Change from 2011 Plan to 2012 Long-term Target 2016 

Strategy 3: Manage conventional energy development including coal, oil, and natural gas 

Percent of leases drilled annually for the firsttime - 5 Year Leases (BUR)(CY measure) 

4.8%

(86/1,778) 

4.7%

(71/1,526) 

2.5%

(38/ 1,547) 2.5% 1.3% (15/1155) 2.0% 2.5% 0.5% TBD 

Comments 

The number of drilling rigs currently in use on shallow water leases (typically 5-year leases) in the Gulf of Mexicosignificantly dropped from FY 2008 when oil prices were at record high levels (e.g., from 50 to 9 in FY 2009). Thpercent of 5-year leases drilled for the first time in FY 2009 was greatly reduced from the results achieved over th2011, BOEMRE anticpates a further reduced percentage because the approval times for shallow water exploratioadditional environmental and safety reviews and requirements that were added following the Deepwater Horizon extimes can impact drilling schedules because rig contracts are often put in place years in advance. Scheduled rigsoutside the Gulf if plans have not been approved. In addition, some projects that were deemed economically feasible, based on the original schedule and prior to thbecome uneconomical and therefore not be initiated. As operators adjust to the new requirements, drilling rates s2012; however, it is unlikely that rates will return to pre-2009 levels unless the economics of oil and gas expl

significantly. 

has decreased in recent years and 

is decrease helps explain why the 

e prior few years. In FY 2010 and 

n plans increased significantly after 

plosion The increased approval

 may be diverted to other projects

e addtional requirements, may 

hould recover to recent levels in FY

oration in the Gulf of Mexico change

Percent of leases drilled annually for the firsttime - 8/10 Year Leases (BUR)(CY measure) 

1.2%

(42/3,536) 

1.2%

(38/3,277) 

0.8%

(36/4,652) 1.2% 0.3% (14/4501) 0.9% 1.1% 0.2% TBD 

Comments 

Following the Deepwater Horizon explosion and spill, Secretary Salazar directed BOEMRE to suspend of the drilpreventers (BOPs) or surface BOPs on a floating facility. He also suspended approval of pending and future ap 

NOTE: Beginning with Sale 213 held in 2010, the primary term for leases in water depths of 400 meters to 1,600 meters changed. The primary term for leases in 400 meters to less than 800 meters changed from an initial 8-year term that would be revised to 5 years unless exploratory drilling was 

commenced, to an initial 5-year term which would be extended to 8 years only if exploratory drilling was commenced. The primary term for leases in

800 meters to less than 1,600 meters changed from a 10-year (unconditional) primary lease term to a 7-year primary lease term that would beextended to 10 years, again only if exploratory drilling commenced. 

ling of wells using subsea blowout

plications for permits to drill wells

using subsea BOPs or surface BOPs on a floating facility. These suspensions, were in place until October 12, 2010 and were primarily applicable to

deepwater operations with 7/8/10 year lease terms. As a result, BOEMRE expects that the percentage of 7/8/10 year leases drilled for the first time to

be significantly reduced in FY 2010 and still lower than originally planned in FY 2011. Assuming that the majority of operators are able to comply

with new safety requirements as they are developed, BOEMRE anticipates returning to recent levels in FY 2012. 

Bureau of Ocean Energy Management, Regulation and Enforcement 85 
 

OEMM – Resource Evaluation Performance Overview - Resource Evaluation (continued) Supporting Performance Measures 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 12 ident's 20udget Pres

B

Change from 

2011 Plan to

2012 

Long-term

Target

2016 

Percentreject 

 of high bids on leases accepted or

ed within 60 days (BUR) 

69%

(259/374) 

41.2%

(898/2181) 

65.3%

(431/660) 50% 56% (264/472) N/A* 55% N/A TBD 

TotalActual/Projected Cost ($M) 13.3 14.0 12.5 13.7 13.6 N/A seline ** BaYear 0 --

Comm ents 

wo separate bureaus and the major 

xico Region or 90 tracts in the Alaska 

a and a 10 percent increase in the Gulf of

many of currently leased tracts with 10-

es being above the baselines of 600 and 

ctively, and Alaska Sale 193 resulted in

 geological and geophysical data that must

uate within 60 days in FY 2008. FY 2009 

ska. 

The 60-day target was originally set for lease sales with fewer than 600 tracts receiving bids in the Gulf of MeRegion. The original 2007-2012 5-year Program included a 500 percent expansion of acreage for AlaskMexico, which increased the number of tracts receiving bids. Additionally, in the Gulf of Mexico deep water, year lease terms are being relinquished, then made available. This additional acreage can result in some sal90 tracts receiving bids. In FY 2008, GOMR Sales 205 and 206 had 723 and 615 tracts receiving bids respe488 tracts receiving bids. The higher number of tracts being bid upon, coupled with the increased amount ofbe incorporated into current FMV evaluations, lowered the percentage of bids BOEMRE was be able to evalresults include evaluations that BOEMRE performed for BLM's National Petroleum Reserve lease sale in Ala *The FY 2011 target for this metric is N/A because no lease sales will be held during the fiscal year.**FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into tchanges anticipated for program operations. 

Percent of tracts with high bids rejected in the previous lease sale receiving acceptable highbids the next time the tracts are made available (BUR) (FY) 

33%

(1/3) 

51.9%

(14/27) 

17.1%

(6/35) 35% 42% (8/19) N/A* 35% N/A TBD 

Comments 

This metric compares the success of rejected tracts from a previous sale the first time these tracts are made available again. High bids for tracts are 

rejected as inadequate if they do not meet BOEMRE’s threshold of an acceptable bid based on our economic evaluation. Between FY 2007 and 2010, approximately 35 percent of the rejected tracts received acceptable bids in subsequent sales. The reduced percentage in FY 2009 most likely reflects the economic downturn and the decrease in oil and gas prices. The number of variables that affect this measure (i.e., predicted oil and gas and associated price paths, predicted costs associated with exploring and developing the leases, changes in royalty rates, royalty relief or other incentives, 

etc.) makes the percentage that will be rejected difficult to predict.*NOTE: The FY 2011 target for this metric is N/A because no lease sales will be held during the fiscal year. 

86 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

OEMM – Resource Evaluation 

Performance Overview - Resource Evaluation (continued) 

Supporting Performance Measures 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 

Blocks/Tracts Evaluated (BUR) 18,645** 8,341 11,287 9,300 8,233 9,300 9,300 0 TBD 

Total Actual/Projected Cost ($M) 45 43 44 48 49 48 Baseline Year* 0 --Comments

To determine the potential resources on the OCS and the fair market value of those resources, BOEMRE must conduct detailed evaluations of the 

blocks and tracts offered for lease each year as well as conduct regular resource assessment activities. On average BOEMRE currently evaluatesapproximately 9,300 individual blocks/tracts annually; however, special evaluations (e.g., regional evaluations for hydrates) may increase that number 

significantly in some years. In FY 2009, a special 3-D seismic interpretation was conducted over six large protraction areas in the deep water Gulf of

Mexico and additional blocks were made available in the Central Gulf of Mexico sale. These additional assessments covered over 3,000 blocks and 

contributed to the increased number of blocks/tracts evaluated during the fiscal year.*FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major

changes anticipated for program operations. **Results for FY 2007 are increased due to a special evaluation in the Atlantic Region for hydrates. 

Maintain the ratio of 1.8 to 1 (+/-0.4) of accepted high bids to BOEMRE’s estimated value (BUR) 

2.1 to 1 2.49 to 1 1.7 to 1 1.8 to 1 (+/- 0.4) 1.8 to 1 N/A 1.8 to 1 (+/- 0.4) N/A TBD 

Comments 

BOEMRE’s current tract evaluation procedure is designed to assure that the government receives fair value for leased tracts. This measure compares the accepted high bid on each tract to the government’s estimated value for that tract. Industry corporate strategy with respect to acquiring specificacreage could lead to a company raising its bid above this analytical value to improve their chances of winning the lease. BOEMRE estimates arebased on a discounted cash flow analysis of a tract and are not designed to predict the high bid. Therefore, the value of this indicator should always be

greater than one to achieve fair value for OCS leases. The annual target ratio of 1.8 to 1 means that on average, the industry bids received are 

expected to be $1.80 (+/- 0.4) for every dollar of the estimated value for each tract. This target was set using several years of historical bid data and isreviewed annually to confirm its validity. *The FY 2011 target for this metric is N/A because no lease sales will be held during the fiscal year. 

Bureau of Ocean Energy Management, Regulation and Enforcement 87 
 

OEMM – Resource Evaluation 

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88 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

OEMM - Regulatory 

FY 2012 PERFORMANCE BUDGET REQUEST 

Offshore Energy and Minerals Management 

Regulatory Subactivity 

Table 13: OEMM Regulatory Subactivity Budget Summary 

2010 

Enacted

Reorganization 

Transfers 

 (+/-) 

Fixed 

Costs 

(+/-) 

Administrative 

Cost Savings 

(-) 

Program 

Changes 

(+/-) 

Offsetting 

Collections 

Changes 

(+/-) 

Budget 

Request 

Change 

from 

2010 

(+/-) 

Regulation of Operations ($000) 

FTE 

58,761 

324 

0 

0 

+71 

0 

-354 

0 

+72,557 

+201 

-576 

0 

130,459 

525 

+71,698 

+201 

Technical Assessment and 

Research 

($000) 

FTE 

1,500 

0 

0 

0 

0 

0 

0 

0 

+11,360 

12 

0 

0 

12,860 

12 

+11,360 

+12 

Regulatory Subactivity 

($000) 

FTE 

60,261 

324 

0 

0 

+71 

0 

-354 

0 

+83,917 

+213 

-576 

0 

143,319 

537 

+83,058 

+213 

SUMMARY OF FY 2012 PROGRAM CHANGES 

Request Component Amount FTE 

Inspection/Monitoring Capability +56,402 +116 

Engineering Studies - TA&R +11,360 +12 

Permitting - Development +6,945 +41 

Environmental & Operational Oversight Compliance +3,720 +24 

Management Support +2,860 +12 

General Support +2,242 0 

Oil Spill Response Plan Review +1,240 +8 

Fixed Costs +71 0 

Administrative Savings -354 0 

Offsetting Collections -576 0 

Reorganization Efficiences and Changes -852 0 

Total: +83,058 +213 

JUSTIFICATION OF FY 2012 PROGRAM CHANGES 

The FY 2012 budget request for the Regulatory Subactivity is $143.3 million and 537 FTE, a net 

increase of $83.1 million and 213 FTE over the FY 2010 enacted budget and $71.7 million over 

the FY 2011 CR level. 

Consolidated information regarding fixed costs can be found in the General Administration 

subactivity. Information regarding BOEMRE’s efforts to reduce administrative costs and 

achieve reorganization efficiencies can be found in the General Statement. 

Bureau of Ocean Energy Management, Regulation and Enforcement 89 
 

 

 

OEMM - Regulatory 

Inspection/Monitoring Capability (+$56,402,000; +116 FTE)1 

In FY 2011, BOEMRE began concerted efforts to recruit additional inspection team members, 

such as inspectors and engineers, as funding has permitted. There are many challenges 

associated with hiring these types of positions, including the ability of applicants to meet conflict 

of interest requirements and obtain security and medical clearances. Incremental funding 

increases provided to date are also being used to procure additional helicopters to support 

enhanced inspection activities. In 2012, these funds will be used to continue the recruitment 

effort, provide training and equipment, and explore alternative monitoring techniques. 

Staffing will consist of personnel with diverse backgrounds to conduct varied types of 

inspections and oversee high-risk activities. This includes critical drilling activities such as 

blowout preventer (BOP) testing and cement/casing activities as they approach production zones. 

BSEE will also increase/establish oversight of other activities, including but not limited to, the 

witnessing of pipeline testing, emergency shut down tests on production platforms, construction 

operations, real-time monitoring of certain operations from a remote location onshore, and meter 

inspections. As this function is redesigned, BOEMRE is crafting plans to address specific 

criticisms regarding the training of inspectors, inspecting in teams rather than solo, and 

implementing a stronger risk-based inspection strategy that will require additional oversight on 

higher risk activities and poor performers. 

Additionally, new policies have already been put in place that reduce the likelihood of an 

inspector being subject to improper influence by industry. BSEE will continue its efforts to 

redesign current training protocols and investigate new technology and its possible application 

for inspection oversight. We will also need to resolve the problem of “permit shopping” by 

providing better training, guidance, and operating procedures so that our engineers are working 

permits and handling issues on a consistent basis. 

Operators will also be audited by multi-disciplinary teams to audit compliance with the new 

SEMS rule, including a new focus on environmental requirements and safeguard measures, in 

addition to more traditional safety and operational requirements. A team of engineers and 

inspectors will audit operators’ SEMS plans to ensure they are following their plans. The audit 

could be a random audit or it could be initiated as a result of poor performance or an incident. 

The audit would take place at the operator’s main office or field office and offshore. While the 

SEMS rule is not a technical rule with respect to facility design, maintenance, or innovative 

approaches, it will require the operator to adopt a comprehensive safety management program. 

The new safety management requirements cover the identification of hazards, management of 

change, mechanical integrity, operating procedures, and various administrative requirements 

surrounding the implementation, communication, recordkeeping, and auditing of safety 

management principles and policies. This is intended to ensure that the safety management 

program is a dynamic program. Continuously improving oversight both internal to the company 

1

 The $10.2 million provided for Regulatory activities in the FY 2011 continuing resolution (P.L. 111-322) has 

enabled BOEMRE to initiate, on a limited basis, some of the efforts planned in FY 2011. This includes hiring of 

inspection team members, and the acquisition of additional helicopter support, vehicles, and space needs required to 

support the additional inspection team staff. 

Bureau of Ocean Energy Management, Regulation and Enforcement 90 
 

OEMM - Regulatory 

and by the regulating agency will improve everyone’s understanding of their unique roles and 

responsibilities and help to ensure the success of the program. 

Impacts of Not Funding: Would delay the ability to effectively enforce and inspect for 

compliance with the regulatory requirements, resulting in the potential for reduced safety and a 

greater number of accidents offshore. 

Engineering Studies – TA&R (+$11,360,000; +12 FTE) 

The Technology Assessment and Research (TA&R) Program was established in the 1970s to 

advance the use of Best Available and Safest Technologies (BAST) during OCS energy 

development and resource management operations. The Operational Safety and Engineering 

Research (OSER) component of the TA&R Program supports research towards personnel and 

environmental safety, improved operations and equipment development, system-integrity control 

programs, and pollution prevention. The April 20, 2010, Macondo well blowout and the 

resulting disaster brought to the forefront the need to raise the level of resources dedicated to the 

evaluation of current and proposed energy exploration and development technologies. 

In its January 2011 report to the President, the National Commission on the BP Deepwater 

Horizon Oil Spill and Offshore Drilling identified the need for increased safety and containment 

research both within industry and the federal government in order to maintain the capability to 

address emergencies as drilling technology moved operations into deeper waters and further 

from shore. The Commission’s findings were substantiated by testimony by industry and 

academia experts who identified the lack of research for the offshore oil and gas sector. The 

Commission determined that that neither government nor industry had invested sufficiently in 

research, development, and demonstration to improve containment or response technologies. 

The Commission found funding to be inadequate and stated that “Congress needs to make 

funding the agencies responsible for regulating the oil and gas development a priority in order to 

ensure a safer and more environmentally responsible industry in the future” and that the “desire 

to tap resources in deeper waters should be accompanied by equivalent investments in subsea 

equipment, operator training, research and development for containment and response 

technologies.” 

Although industry has a significant role and responsibility to conduct this research to ensure its 

operations are safe, as the safety regulator, BOEMRE (and the future BSEE) needs to have 

sufficient technical capabilities to conduct its own research and verify that the information and 

research provided by industry is accurate. 

Staff will focus on developing and managing additional technical and more complex engineering 

studies focused on regulatory and safety requirements including field studies. Examples of nearterm deepwater safety and containment research by the TA&R program include assessment of 

subsurface blow-out preventer design, performance, maintenance, and inspection; cementing, 

barrier, and containment practices and procedures; remotely operated vehicle intervention and 

capabilities; and wild well control technology. The TA&R Program will continue to transfer 

research results to rule writers, investigators, plan reviewers, and others that need this 

information to improve safe offshore operations. 

Bureau of Ocean Energy Management, Regulation and Enforcement 91 
 

 

OEMM - Regulatory 

Impacts of Not Funding: 

	 Delays identifying, assessing, developing, and incorporating new technologies and safety 

enhancements into our agency regulations and operations oversight; 

	 Lowers the bureau’s ability to coordinate with other national and international researchers, 

regulators, standards-writing organizations, and other decision-making bodies towards 

development, distribution, incorporation, and use of new technology findings and 

recommendations; 

	 Potentially increases the level and frequency of incidents/accidents; possibly resulting in 

injury/loss of life and environmental damage due to loss of containment and hydrocarbon 

release; 

	 Delays or prevents resource development due to technological limitations that prohibit the 

identification and safe development of resources under more challenging conditions (e.g., 

deepwater, high-temperature high-pressure (HTHP), hydrates); 

	 Increases dependency on industry to provide the research, expertise, and solutions to the spill 

prevention and containment challenges. BOEMRE’s understanding of new technology will 

fall behind that of the industry and the products developed will not sufficiently address 

identified challenges; 

Permitting – Development (+6,945,000; +41 FTE) 

In FY 2012, a total of $6.9 million and 41 FTE are requested to implement BOEMRE reforms 

and reorganization plans. Resources will address the development of comprehensive, 

standardized policies, practices and protocols which includes the plan and permit application 

review processes. By direction of the Secretary, BOEMRE has already begun recruitment and 

additional funds are needed in FY 2012 to continue recruitment efforts. 

The staff is needed to review and process lease management, qualification, bonding and 

unitization requests and issues, as well as requests for development activities, such as plan and 

permit processing and approval. With the new regulations that have been implemented (Interim 

Final Rule, NTLs 2010-N06 and N10) additional personnel will be needed for reviewing permits. 

A recently published report by the Department of the Interior OCS Safety Oversight Board to the 

Secretary states that the “Gulf of Mexico (GOM) district offices are challenged by the volume 

and complexity of permit applications and the lack of a standardized engineering review 

protocol. In addition, the Pacific Region’s permitting staff is facing significant succession 

issues.” It goes on to state that the workforce associated with regulating day-to-day activities has 

not increased proportionately to work demands, creating challenges in the need to balance an 

adequate analysis of permit requests with the need to be responsive to industry. For instance, 

Applications for Permits to Modify (APM’s) have increased by 71 percent from 1,246 in 2005 to 

2,136 in 2009 in the New Orleans District with no additional FTEs dedicated to this activity. In 

the Pacific, 80 percent of current permitting employees will be retirement eligible in the next 2.5 

years. In BOEMRE’s September 4, 2010, Implementation Plan in response to the OCS Safety 

Oversight Board’s Report to the Secretary, BOEMRE outlined actions needed to address the 

issues discussed in that report. The requested funds will enable BOEMRE to: 

Bureau of Ocean Energy Management, Regulation and Enforcement 92 
 

 

OEMM - Regulatory 

 Ensure that staffing levels are commensurate with increasing workloads. 

 Review and revise the permit review protocols to ensure that: (a) permit requests 

from operators and district responses are documented promptly and properly; 

(b) BOEMRE engineers have appropriate access to permit databases after hours; and 

(c) procedures are established that prevent “engineer shopping by operators”. 

	 Reexamine after-hours permit review services; the means by which any such services 

should be provided (e.g., on-call or in-office staffing); and the feasibility of limiting 

its use by requiring operators to submit non-emergency requests and requests that 

could be reasonably anticipated during normal business hours. 

The issues relating to the permitting process implicated by these recommendations are being 

actively studied and evaluated during the reorganization effort with the goal of implementation 

in FY 2012. 

Impacts of Not Funding: The reform of the bureau, which includes the enhancement to the 

permitting function, will require the infusion of substantial resources in the form of funding, 

personnel, equipment, and information systems. Without these additional resources these reform 

efforts including the implementation of the permitting recommendations as outlined above will 

not be possible. The permit review process will likely take longer, and the quality of safety 

reviews may suffer. 

Environmental & Operational Oversight Compliance (+$3,720,000; +24 FTE) 

Funds for this activity were originally requested as part of an FY 2011 Budget amendment. Due 

to the uncertainty of funding increases requested in FY 2011, the Secretary directed BOEMRE to 

begin recruitment of 11 of these positions using funds from the FY 2010 oil spill supplemental 

funding. These funds are not part of BOEMRE’s base funding and without additional funds in 

FY 2012 BOEMRE will not be able to sustain these positions or continue recruitment of needed 

positions previously identified in the FY 2011 request. No additional funding is being requested 

in FY 2012. 

Enhanced environmental oversight over all OCS activities is a logical and necessary outcome of 

the experience with the Deepwater Horizon oil spill (National Commission on the BP Deepwater 

Horizon Oil Spill and Offshore Drilling, January 2011; CEQ, August 2010). Robust 

environmental reviews and procedures will set the stage for following through and tracking lease 

sale planning and site-specific permit decisions. This level of effort will be matched by more 

systematic and inclusive monitoring of project implementation/operational phases, including 

final decommissioning. These collective efforts will facilitate a culture focused on safety and the 

environment consistent with the Secretary’s mandates, as well as advance efforts to improve the 

awareness of environmental compliance on the OCS. 

 Additional resources for the Environmental & Operational Oversight Compliance are requested in the 

Leasing and Environmental subactivity ($1.4 million; 9 FTE). 

Bureau of Ocean Energy Management, Regulation and Enforcement 93 
 

OEMM - Regulatory 

BOEM will be responsible for environmental compliance and analyses for all activities 

associated with leasing, authorization of on- and off-lease geological and geophysical surveys 

and approvals of exploration and development plans. BOEM will also develop and adaptively 

manage environmental protection measures specific to these activities. BSEE will be responsible 

for environmental compliance related to issuing permits associated with plans (i.e., Applications 

for Permits to Drill), inspections of environmental measures and enforcement of incidences of 

non-compliance. BSEE will also review industry reporting and work with BOEM to adaptively 

manage environmental mitigation measures to ensure their effectiveness and enforceability. 

With these funds, BSEE will begin to build its environmental compliance capabilities 

(i.e. inspections and enforcement), both environmental and operational by: 

	 Developing and implementing enhanced environmental inspection and enforcement 

procedures relating to environmental compliance, including developing plans for staffing, 

analyzing aviation and technological support requirements, and systems for obtaining 

information necessary to support environmental enforcement; 

 Conducting field visits and reviews of industry self-reporting; 

 Tracking, verifying and enforcing mitigation compliance; 

 Implementing methods and approaches to enforce compliance regulations; 

 Working with BOEM to adaptively manage BOEM-required mitigation in leases, permits 

and plan approvals based on results of enforcement effectiveness and industry 

compliance; 

 Conducting auditing requirements and site reviews to ensure compliance with the new 

Safety and Environmental Management Systems (SEMS)rule; 

	 Conducting oversight reviews to ensure appropriate and consistent applications and 

industry compliance on OCS environmental requirements in relation to various 

environmental laws, regulations, executive orders, etc. to include but not limited to OCS 

Lands Act, Code of Federal Regulations (e.g. 30 CFR § 250, 30 CFR 251, 30 CFR § 

280), lease stipulations, Notices to Lessees, National Environmental Policy Act, 

Endangered Species Act, Marine Mammal Protection Act, Coastal Zone Management 

Act, Clean Air Act, Clean Water Act, and the National Historic Preservation Act; 

	 Coordinating, at a national level, with task forces, workgroups, other agencies, states, 

lessees, and other interested parties on environmental issues; and, 

	 Collaborating with safety personnel, legal advisors, resource managers, and others 

involved with environmental implementation, especially BOEM environmental scientists; 

and collaborating with offices and groups performing a variety of functions to gather data 

for environmental performance accountability measures. 

This request will support the additional personnel that are needed to manage the expanded postauthorization environmental oversight role brought about by the efforts to reform offshore 

operations and regulations, beginning with planning and implementing an environmental 

inspection and enforcement program that will ensure compliance through active monitoring of 

project implementation/operational phases until final decommissioning or project completion. 

These efforts will contribute to achieving the goals of the reform and reorganization efforts, as 

well as significantly advance progress towards ensuring appropriate implementation of 

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environmental requirements while improving the awareness of the importance of environmental 

compliance on the OCS. 

Impacts of Not Funding: BOEMRE will have reduced ability to develop and implement a 

proper environmental inspection and enforcement program. Environmental requirements would 

still be required for activities associated with leasing, on- and off- geological and geophysical 

surveys, or plan approval phases (within BOEM) and the permit phase for all approvals needed 

post-plan approval (within BSEE), but there would be a lack of personnel, funding and training 

for BSEE to ensure environmental requirements are appropriately implemented and meet their 

intended purposes. This could result in delayed reviews of industry permits applications and 

plans which will delay production of oil and gas as well as the associated royalty payments. 

Management Support (+$2,860,000; +12 FTE) 

Providing the Bureau of Safety and Environmental Enforcement (BSEE) an effective and fully 

supported cadre of leaders is essential to ensure the accomplishment of this organization’s 

critical mission. The reorganization study is well underway, and BOEMRE anticipates it will be 

able to begin staffing the headquarters bureau directorate office as soon as funds are made 

available. Funding will also be needed to address anticipated and yet-unknown implementation 

issues and needs, including the impacts on budget, business processes and functions, systems and 

information technology, physical location and administrative functions. 

Impacts of Not Funding: Underfunding needs of the new bureau leadership team will hinder 

the ability to provide adequate oversight of BSEE operations. 

General Support (+2,242,000; 0 FTE) 

BOEMRE will need to providing space and other essential needs for dozens of new employees. 

All District Offices will require additional space. The Houma District Office has already reached 

maximum capacity. Funds will be needed for planning, renovating, and infrastructure such as 

cabling and electrical, moving, and furniture. 

Oil Spill Response Compliance (+$1,240; +8 FTE) 

Funding is requested to meet requirements of the BOEMRE oil spill planning and preparedness 

compliance program for operators on the OCS. In prior years, for all three BOEMRE Regions, 

the program had only four full-time staff allocated to review and approve oil spill response plans 

(OSRP) and industry compliance inspections. Previously there were 192 plan holders subject to 

BOEMRE oversight. In the absence of FY 2011 funding for this need, the Secretary directed 

BOEMRE to begin recruitment of four of these positions using FY 2010 supplemental oil spill 

funds. The total requested increase of eight FTE and $1.2 million is needed to sustain these 

positions as well as the four additional positions needed to manage compliance oversight 

activities and requirements in FY 2012, and to allow for preparation and publication of reports 

on benchmarking of best practices and lessons learned. 

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OSRP reviews are conducted for new plans, biennial updates, amendments and plan revisions, 

and confirm that an operator has proper equipment, people, and structures in place at all times to 

respond to an oil spill. Requirements for BOEMRE review of OSRPs have been significantly 

increased to address lessons learned from the Deepwater Horizon event. Compliance 

inspections, such as unannounced oil spill exercises and unannounced response equipment 

inspections test and evaluate an operator’s preparedness level. Annually, BOEMRE conducts 

approximately 20 unannounced exercises that may require deployment of major response 

equipment and involve the U.S. Coast Guard and State emergency response offices. Staff 

conduct inspections of response equipment staged at bases throughout the Gulf of Mexico, along 

the California coast, and in Alaska. Staff also review and verify response personnel training 

(classroom and hands-on), and participate in table top exercises - classroom activities in which 

response team members simulate response actions using their OSRP. 

An additional four FTE are requested in FY 2012 to complete the increased staffing necessary to 

ensure an adequate level of oversight. This will bring the total number of full time, dedicated 

staff available to ensure oil spill response compliance to 12, and allow for preparation and 

publication of reports on benchmarking of best practices and lessons learned. 

Impact of Not Funding: 

	 Staff will be unable to thoroughly review and verify data contained in OSRPs and will 

need to establish procedures for only spot-checking certain sections of plans. 

	 Improvements necessary to provide enhanced oversight of offshore oil spill planning and 

preparedness will not be made leaving environmental and economic resources at risk to 

impacts from oil spills. 

	 BOEMRE will not be able to correct deficiencies cited in the Outer Continental Shelf 

Safety Oversight Board report related to OSRP content and review, and which were 

approved by the Secretary for action. 

PROGRAM OVERVIEW 

On behalf of the Nation, BOEMRE regulates about 3,800 offshore production platforms and 

manages over 8,000 active oil and gas leases on approximately 43 million acres of the OCS. 

 Recent noteworthy events concerning oil and gas production in the Gulf of Mexico include: 

	 2010 Production: 

o	 Shell’s Perdido Regional Host facility (AC 857) commenced production in 

March, 2010. As of February, 2011, production was 34,000 BOPD and 

40 MMSCFD gas. 

o	 Phoenix FPU (GC 237) commenced production October 19, 2010. As of 

February, 2011, production was 15,500 BOPD and 24 MMSCFD. 

o ATP’s Mirage MinDoc (MC 941) commenced production in March 2010. As of 

February, 2011, production was 11,600 BOPD and 11.4 MMSCFD from two 

wells (one platform well and one subsea well). 

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	 Future Production 2011: 

o	 Cascade/Chinook FPSO (WR 249) is expected to commence production in 

March, 2011. Expected production rates from two wells will be approximately 

40,000 BOPD with little or no gas. 

o	 In August/September, 2011, LLOG’s MC 547 a semi-submersible facility (Who 

Dat Prospect) is expected to begin production of both oil and natural gas. 

Anticipated production from this facility will be 30,000 BOPD and 30 MMSCFD. 

o	 Jack St. Milo, Chevron, WR 718, deep draft submersible, expect first oil in 2014 

o	 Bigfoot, Chevron, WR 29, TLP, expected first oil in 2014. 

BOEMRE works to assure that energy and mineral development activities are conducted in a 

safe and environmentally sound manner, with safety being a prerequisite of all activity on the 

OCS. BOEMRE continually seeks operational improvements that will reduce the risks to 

offshore personnel and to the environment, and continually evaluates procedures and regulations 

to stay abreast of technological advances that will ensure safe and clean operations and conserve 

the Nation’s natural resources. 

The Regulatory subactivity funds two program elements that work to assure safe and clean 

operations on the OCS: 1) Regulation of Operations and 2) Technology Assessment and 

Research (TA&R). The Regulation of Operations program oversees all aspects of offshore 

activities, from exploration and development to production and decommissioning. Key activities 

include the review of industry plans and permit requests; completion of compliance inspections 

and incident investigations; monitoring of operator safety and environmental performance; 

management of reservoirs to maximize ultimate recovery of mineral resources; and verification 

of oil and gas production levels to help ensure the public receives a fair return. The TA&R 

program supports research associated with operational safety and pollution prevention, working 

with academia, private firms, and government agencies to assess safety-related technologies and 

to perform applied research specific to operations in the OCS environment. 

In preparation for the reorganization of BOEMRE and the larger demands anticipated for and 

currently impacting the TA&R Program, TA&R is retooling itself to more effectively identify, 

manage and disseminate research. Examples include: 

	 The introduction of a post-findings tracking form to better highlight and assign 

responsibility to BOEMRE personnel to assess the recommendations resulting from 

TA&R research and follow the progress of those recommendations towards incorporation 

in our agency program and operations. 

	 Funding of more detailed studies, consistent with TA&R’s sister research branch (the 

Environmental Studies Program) and other Federal government agencies responsible for 

energy management. Due to TA&R’s historically small budget, we have been limited to 

small, low- cost, low-impact studies. Additional funding will allow us the means to fund 

multi-year studies that can provide the higher-impact safety, pollution prevention, and 

renewable energy research long needed by our agency. 

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	 Increased coordination with other research and research related organizations. The need 

for increased coordination with internal and external entities directly or indirectly 

involved with offshore energy research both nationally and internationally will come with 

additional resources and responsibilities for TA&R research. This will be further 

impacted due to the many topical research areas that span both BOEM and BSEE areas of 

responsibility. While the program's research focus is not expected to dramatically change 

after the reorganization, the means of communication between the two agencies will, thus 

extra effort will need to be made to ensure that coordination of research topics and 

dissemination of results continues. 

In addition to safety and pollution prevention, the OCS Lands Act (OCSLA) charges the 

Secretary of the Interior with the authority to require that OCS operators prevent waste and 

conserve the natural resources of the OCS, as well as protect the correlative rights therein. 

For fiscal years 2008-2010, BOEMRE conservation management 

efforts are estimated to have increased ultimate recovery by 

200.0 million barrels of oil (or equivalent volumes of natural gas). 

To promote these conservation objectives, BOEMRE uses its regulatory authorities to require 

certain actions by operators to accelerate or increase production while protecting the ultimate 

recovery of minerals from a lease, and has developed a performance measure to reflect the rate 

of return for key conservation management activities. 

PERFORMANCE OVERVIEW 

The Regulatory subactivity primarily supports the approval of OCS plans and permits, regulatory 

compliance and conservation of resources. The following graph displays the approximate 

spending distribution as derived from the Bureau’s Activity Based Costing (ABC) system. 

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Reservoir Tech Assessment 

Management/ 

Conservation 

13% 

Renewable Energy 

1% 

Plans & Permits 

22% 

6% 

Inspections/ 

Investigations 

58% 

Figure 6. Estimated FY 2010 Regulatory Spending Profile 

Among the many Bureau changes emanating from the Deepwater Horizon event, BOEMRE has 

established 11 teams to conduct in-depth examinations of existing processes and recommend 

changes or additions to processes to strengthen the overall regulatory process for the bureau and 

the oversight of the regulated community. Many of these teams are directly related to the 

Regulatory subactivity group. 

 One of the first acts by the BOEMRE Director was to establish an Investigations and 

Review Unit that is charged with examining problems within the regulatory agency and 

targeting companies that seek to game the system. This unit is comprised of 

professionals who have a law enforcement background or technical expertise whose 

mission is to promptly and credibly respond to allegations or evidence of misconduct and 

unethical behavior. 

 Many of the teams were directly related to the many facets of the Inspection Program. 

o	 The inspection functions team mapped the existing functions from the districts to 

headquarters and identified new functions as new regulatory requirements were 

established following the Deepwater Horizon event. 

o	 The inspection strategies team is responsible for defining near- and long-term 

strategies for inspection industry compliance with safety and environmental 

regulatory requirements. This includes new responsibilities for witnessing 

offshore testing of BOPs and work associated with well-workover activities. 

o	 The inspection training team is charged with developing an overall training 

program and curricula for inspectors and engineers. This effort has resulted in the 

establishment of a National Offshore Training Center staffed with dedicated 

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technical education professionals to ensure that BOEMRE compliance personnel 

are fully trained to conduct their responsibilities. 

o	 The inspection tools team is examining the available inspection tools; considering 

new strategies for inspections; and looking for technological solutions to meeting 

these needs. They are evaluating appropriate technology for offshore laptop 

computers to facilitate our oversight role. Additionally, BOEMRE is looking at 

ways to have real time monitoring of certain offshore activities from on shore 

locations. Specifically, BOEMRE may be able to use this technology to witness 

BOP tests and monitor drilling operations. 

o	 The enforcement team is taking a comprehensive look at all compliance, 

monitoring, and bureau enforcement actions to ensure they are complete, fair, and 

appropriate and have an overall comprehensive strategy. 

o	 The incident investigations team is evaluating and developing investigative 

procedures relating to specific categories of accidents and incidents and 

identifying types of expertise necessary to support BOEMRE’s investigations 

program. 

o	 The oil spill response team is conducting a comprehensive review of spill 

response and the adequacy of oil spill response plans. They are working closely 

with the U.S. Coast Guard on developing guidance regarding the enhancements of 

oil spill response plans based upon lessons learned from the Deepwater Horizon 

oil spill response. 

o	 The safety and environmental systems management team is working to develop 

compliance guidance and a process for implementing the SEMS rule that was 

published in October 2010. 

 Additionally, the BOEMRE is very active in recruitment efforts to augment the bureau’s 

inspection and engineering staff. The bureau has been understaffed for several years and 

new and aggressive comprehensive regulations require even more expertise to 

successfully implement a stronger program. 

Recent regulatory-related initiatives include: 

	 Establish Ocean Energy Safety Advisory Committee. In order to facilitate 

collaboration among government, industry, and academia on issues related to 

offshore energy safety, blowout containment and spill response, the Department 

of Interior has established an Ocean Energy Safety Advisory Committee. The 

Committee will be comprised of representatives from federal agencies – including 

BOEMRE, the Department of Energy, the National Oceanic and Atmospheric 

Administration, the Coast Guard, the Environmental Protection Agency, and the 

United States Geological Survey – as well as the offshore oil and gas industry, 

academic institutions, and other non-governmental organizations. The primary 

function of the Committee will be to advise the Secretary of the Interior and the 

Director of BOEMRE on matters and actions relating to offshore energy safety, 

including, but not limited to drilling and workplace safety, well intervention and 

containment, and oil spill response. 

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	 Review BOEMRE Programs to Assure Safe and Environmentally Sound 

Operations in the OCS Ultra-Deepwater. Industry’s push into ultra-deepwater 

(greater than 5,000 feet deep) in search of oil and gas means new, constantly 

evolving technologies. BOEMRE will evaluate the adequacy of funding, 

standards, and the environmental and technological information base for reviews 

of industry plans in ultra-deepwater, and propose solutions to fill any information 

or other gaps. 

	 Identify and Implement Lessons Learned from Post-Hurricane Studies and 

Assessments. BOEMRE is studying the impact of hurricanes on the oil and gas 

infrastructure. Studies will analyze and assess consequential damage to structures 

and pipelines; determine the effectiveness of current design standards, metocean 

criteria, pollution prevention systems, and Mobile Offshore Drilling Unit mooring 

standards; and develop recommendations for changes to industry standards and 

BOEMRE regulations, if needed. 

	 Develop and Implement an Aging Infrastructure Plan. To ensure offshore 

infrastructure components (wells, platforms, and pipelines) remain in safe and 

useful condition, BOEMRE will establish mechanisms for assessing and 

maintaining DOI-regulated infrastructure on the OCS. 

	 Establish a Comprehensive and Efficient Pipeline Safety Program. BOEMRE manages 

over 33,000 miles of undersea pipelines that provide the means to service and transport 

approximately 25 percent of the Nation’s domestically produced oil and 12 percent of 

our natural gas from offshore wells to onshore refineries. The oil and gas pipelines on 

the OCS have not experienced catastrophic accidents or failures; however, BOEMRE has 

concerns about the integrity of some older offshore pipeline systems and about ocean 

pollution from third party-related pipeline accidents. Additionally, as industry moves 

into deeper water and, potentially, into Arctic areas, there is a continued need to focus on 

the technology and management practices needed to design, build, and maintain safe and 

reliable pipelines suitable to these extreme environments and conditions. BOEMRE will 

review and update pipeline safety requirements under Subpart J of the regulations, 

continue to promote safety research, encourage cooperation between government 

agencies that share jurisdiction, and investigate possible new program initiatives toward 

the establishment of a comprehensive Pipeline Safety Program. The long-term goal is to 

develop and implement a proactive and comprehensive regulatory program that promotes 

the continued integrity of offshore pipelines; further reduces the potential for pipeline 

leaks and failures; and further protects sensitive environmental resources. 

2012 PROGRAM PERFORMANCE – REGULATION OF OPERATIONS 

The goal of BOEMRE’s comprehensive management program of energy and mineral operations 

on the OCS is too ensure that these operations are conducted in a safe and environmentally sound 

manner. The foundation of this program is a set of regulations that govern all aspects of offshore 

energy and mineral activities, from engineering specifications for offshore facilities to training 

requirements for OCS workers. BOEMRE will continually review these regulations to update 

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and revise them as necessary so that they include the most effective requirements for safety and 

environmental protection on the OCS. BOEMRE is presently reviewing comments received on 

the interim final drilling safety rule that was put in place following the Deepwater Horizon 

disaster. 

Review of OCS Plans and Permits: Reviews of plans and permits help to ensure that all OCS 

operators comply with regulatory standards and specific lease stipulations. BOEMRE performs 

detailed technical and environmental reviews of plans and permits for exploration, development, 

and production on OCS lands, as well as permits for other activities such as the installation of 

pipelines. The ongoing effort by BOEMRE to develop performance-based operating regulations 

is expected to generate an increasing number of operator requests for approval of alternative 

compliance programs. Prior to making approval decisions on alternative compliance, BOEMRE 

must assess the alternatives to ensure they provide equal or greater protection than the regulatory 

requirements they would replace. BOEMRE will be required to commit a substantial and 

increasing amount of resources to these assessments in order to evaluate an operator’s proposed 

alternative, verify adherence to approved plans, and determine effectiveness of technologies and 

procedures employed. 

Inspections and Investigations: The OCSLA amendments mandate that annual inspections be 

performed on each permanent structure and drilling rig that conducts drilling, completion, or 

workover operations. Safety is a priority for both BOEMRE staff and for the operations that 

occur under BOEMRE jurisdiction, and onsite facility inspections and enforcement actions are 

important components of BOEMRE’s safety program. The Bureau has established ambitious 

performance targets for the conduct of thousands of inspections of OCS facilities and operations, 

including coverage of tens of thousands of safety and pollution prevention components each year 

to prevent offshore accidents and spills, and to ensure a safe working environment. Inspections 

of all oil and gas operations on the OCS are performed annually to examine safety equipment 

designed to prevent blowouts, fires, spills, and other major accidents. Although BOEMRE was 

fully engaged in the response to the Deepwater Horizon event for much of 2010, we still 

managed to conduct over 23,000 compliance inspections throughout the year. Additionally, 

BOEMRE plans to conduct more onsite witnessing of critical device testing, such as BOP tests. 

The proposed increase in the inspection/oversight workforce will allow BOEMRE to focus more 

resources on higher risk activities, increase the rigor of inspections, and expand oversight of the 

entire industry to ensure safe and environmentally responsible operations. 

BOEMRE inspects drilling and production facilities on the OCS using both scheduled and 

unannounced inspections. Currently, annual inspections are conducted on all platforms, with 

monthly inspections for active drilling rigs. More frequent inspections may be conducted to 

focus on operators with a poor performance record, follow up on previous inspection findings, in 

environmentally sensitive areas, and to foster a climate of safe and pollution free operations. 

When incidents do occur, BOEMRE conducts investigations and analyzes incident-related data 

to understand the causes of incidents. Prior to the Deepwater Horizon event, examination of 

long-term trends indicated that the safety and environmental record of the offshore industry had 

dramatically improved over the last 50 years. In 2006, BOEMRE, formerly MMS, revised the 

regulatory requirements for incident reporting to clarify the reporting requirements and provide 

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more precise definitions and reporting timeframes. These changes have resulted in a more 

consistent incident reporting program and the collection of more reliable incident information. 

The revisions also included requirements for reporting additional categories of incidents such as 

gas releases, incidents associated with lifting equipment, and incidents that result in less severe 

injuries than were previously reported. This additional information is helping BOEMRE better 

identify safety concerns and trends. BOEMRE and other agencies, such as the U.S. Coast Guard, 

investigate accidents that result in loss of life, serious injuries, major fires, damage to facilities, 

and major spillages in order to identify causes and prevent future similar incidents. A BOEMRE 

- USCG interagency Memorandum of Agreement (MOA) for incident investigation was signed 

March 27, 2009. This MOA is intended to provide for the effective use and coordination of our 

respective resources. In FY 2009, BOEMRE investigated 78 incidents to determine causes and 

analyze regulatory performance. Though ABC data indicate that these investigations account for 

less than three percent of Regulatory spending, they provide important information for 

BOEMRE and industry. Incident investigation reports are published on BOEMRE in the reports 

through the publication of Safety Alerts. Incident data are an important part of evaluating the 

performance of individual companies and the industry as a whole and contribute to the 

development of new regulatory requirements. Where appropriate, Federal agencies, including 

BOEMRE, pursue civil and criminal penalty actions against those in violation of Federal 

regulations, especially when such violations result in or have the potential to result in injuries, 

loss of life, or damage to environmental resources. 

Safety and Environmental Management: Most offshore oil and gas incidents can be traced to 

human error or poorly organized operations. BOEMRE now requires OCS operators to use a 

companywide SEMS to organize their activities to minimize risks to workers and the 

environment. 

The SEMS is a performance-oriented approach for integrating and managing OCS operations to 

effectively address such important safety factors as: 

 conducting safety and environmental reviews; 

 assuring the quality and integrity of critical equipment; 

 establishing safe work practices; 

 training workers; and 

 responding to emergencies. 

Performance data indicate that more than half of OCS facilities are covered under voluntary 

SEMS programs, with some indications that the safety and environmental performance outcomes 

of SEMS participants are better than industry performance as a whole. Additionally, in response 

to the 2005 PART assessment, BOEMRE issued proposed regulations for SEMS on June 17, 

2009, in the Federal Register. The comment period closed September 15, 2009, yielding 

62 separate comments. These comments were weighed and analyzed, and BOEMRE published a 

final rule on October 15, 2010; this rule will go into effect in October 2011. The new SEMS rule 

requires offshore oil and gas operators develop and maintain a comprehensive, 13-element 

SEMS program for identifying, addressing, and managing operational safety hazards and 

impacts. 

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Operator Performance Reviews: BOEMRE conducts Annual Performance Reviews (APR) of 

each operator. The APR process captures compliance and accident information gathered through 

the OCS Inspection Program and weighs that information to arrive at a final Operator 

Performance Index, as well as composite indices that are used as performance indicators for the 

OCS Regulatory and Compliance program. The bureau meets with those operators performing at 

the highest levels to solicit ideas for best operating practices. With the operator’s concurrence, 

BOEMRE shares these success stories with others through workshops, conferences, and other 

safety-related meetings. Additionally, BOEMRE focuses compliance efforts on those operators 

whose performance does not meet certain targets. 

Civil and Criminal Penalties and Operator Disqualification: BOEMRE, where appropriate, 

will pursue civil and criminal penalty actions against those in violation of Federal regulations, 

especially when such violations result in, or have the potential to result in, injuries, loss of life, or 

damage to environmental resources. If an operator exhibits excessively poor, dangerous, or 

threatening performance, BOEMRE can assess a civil penalty. In FY 2010, 26 civil penalty 

assessment were paid for a total of $2.1 million. BOEMRE OCS Civil Penalties Program 

encourages compliance with OCS statutes and regulations through the pursuit, assessment, and 

collection of civil penalties (and referrals for the consideration of criminal penalties where 

warranted). BOEMRE is committed to strengthening its enforcement programs; this may mean 

higher civil penalty assessments for poor operators in the future. 

The cost of administering the Civil Penalties Program is monitored in the bureau’s ABC system. 

Though less than one percent of Regulatory spending, the Civil Penalties Program is an 

important tool for enforcing compliance on the OCS. However, should the operator continue to 

perform poorly, BOEMRE may place an operator on probation or disqualify a company from 

operating a specific facility, or all facilities, on the OCS. The disqualification process provides a 

structured means to remove operators that pose a threat to the safety of life and the OCS 

environment. 

Conservation Management: As steward of the Nation’s OCS mineral resources, BOEMRE 

must provide for conservation of natural resources by preventing waste and ensuring ultimate 

recovery of the resources, as well as protecting the correlative rights of OCS lessees and the 

government. Conservation of oil and gas resources is an integral part of the Nation’s energy 

policy and a primary objective for the BOEMRE Regulatory program. To promote conservation, 

BOEMRE monitors development and production activities on the OCS and uses its regulatory 

authority to require certain actions by operators to maximize the ultimate recovery of OCS 

minerals once access has been granted. Information gained from these activities also supports 

other BOEMRE requirements, such as reserves estimations and assessments of undiscovered 

resources. 

2012 PROGRAM PERFORMANCE – TECHNOLOGY ASSESSMENT & RESEARCH 

The Technology and Assessment Research (TA&R) program addresses technological issues 

associated with energy and mineral operations, ranging from the drilling of oil and gas 

exploration wells in search of new reserves to the removal of platforms and related infrastructure 

once production operations have ceased. Although BOEMRE research efforts may involve any 

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aspect of energy and mineral operations, particular attention is given to oil and gas drilling, 

workover, production, completions, structures, pipelines, decommissioning, human factors/risk 

assessment, and measurement operations. Under the TA&R Program, BOEMRE performs 

applied research in regulatory technologies to ensure safe, pollution-free operations and conducts 

applied research in the prevention of oil pollution and the improvement of oil spill response and 

clean-up (see Oil Spill Research budget). Examples of how TA&R studies impact our regulatory 

program include: 

In early 2010, during the investigation of a leaking well, it became apparent the existing 

regulation 30 CFR 250.1715(b) required re-evaluation to better serve our mission. This 

regulation allows operators the option to either pressure test or weight test cement plugs in 

permanently or temporarily abandoned wells. The question became, which option is better, or 

whether BOEMRE should require both to be performed. To conduct this evaluation, a TA&R 

study titled “Cement Plug Testing: Weight vs. Pressure to Assess the Viability of a Wellbore 

Seal Between Zones” was initiated. During the BP/Deepwater Horizon investigation, the 

minimum requirements of the procedures described in 30 CFR 250.1715(b) were again 

questioned and the TA&R study was expanded slightly to not only compare the options, but 

examine the procedures to identify possible shortcomings and possibly develop new procedures. 

This TA&R study will include field data collection during abandonment operations on the OCS 

which will be compared with results found during laboratory tests. 

Also prior to the Deepwater Horizon event in 2010, TA&R identified a need to improve our 

understanding and oversight of the types of deepwater drilling rig BOPs operating in the GOM. 

BOEMRE funded a study titled “Deepwater Blowout Preventer (BOP) Reliability & Well Kicks” 

to assess the performance of deepwater BOPs in use between 2006 and 2010 in order to 

determine their reliability during testing and actual well kicks. The study is expected to provide 

BOEMRE with information to aid our current and future inspection workforce and regional 

engineers with the tools to improve the way we assess and approve the use of BOPs; devices 

considered to be the last line of defense for well containment. 

We expect the aforementioned studies, and other 2011 and 2012 studies, to provide lasting 

impacts on BOEMRE regulations, Notices to Lessees (NTLs), and industry standards. The 

following illustrates that point. 

Analysis of Catastrophic Events: During the past decade, the GOM endured an unusual volume 

of Category 4+ hurricanes, including hurricanes Lili (2002), Ivan (2004), Katrina & Rita (2005) 

and Gustav & Ike (2008) that caused extensive disruptions and damage to offshore energy 

operations. Beginning with research on Hurricane Andrew (1992), the TA&R has launched over 

fifty studies on major hurricane events to better understand and prepare the offshore energy 

infrastructure for future occurrences. The findings and recommendations from these studies 

branched into BOEMRE regulations and industry standards. For example changes to drilling 

standards (API RP 2SK, 2SM, and 2I) for floating and jack-up rigs resulted from TA&R studies. 

Additionally, TA&R hurricane studies led to the development of ten API Standards on such 

topics as “Guidance for Foundation Assessments” and “Guidance on Securing Rigs and Other 

Equipment.” 

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Revisions to BOEMRE Regulations and Industry Standards: The results of TA&R Studies 

have also contributed to the development of a number of BOEMRE regulations, BOEMRE 

Notice to Lessees (NTLs), Industry Standards (American Petroleum Institute (API), American 

Society for Testing and Materials (ASTM), and International Standards. The below offers one 

example of each: 

	 BOEMRE Regulations: Results from an initial shear ram capability study/information led to 

the requirement for shear ram capabilities found in 30 CFR 250.416(e) 

 BOEMRE issued NTL No. 2009-G03: Synthetic Mooring System Materials for Floating 

Facilities intended to demonstrate that synthetic moorings meet or exceed the safety level 

necessary for chain/wire-rope mooring systems. 

 Industry Standards: 

o	 API - Development of the draft API RP 2RD, Dynamic Risers for Floating 

Production Installations. In addition to providing the study’s work to the API, 

these same results have been presented to the International Organizations for 

Standardizations (ISO) for possible incorporation in the equivalent international 

standard, ISO 13628-12. 

o	 ASTM Standards in Association with BOEMRE Ohmsett Test Facility: F1607-95 

(2008) Standard for Oil Spill Response Pumps 

	 International Standards: A TA&R study laid the groundwork for reviewing the International 

Electrotechnical Commission Standards for Offshore Wind Farms design standards for 

applicability on the U.S. OCS. Since then, an American Wind Energy Association (AWEA) 

effort has been established to ‘roadmap’ the use of this international standard by 

supplementing it with the appropriate U.S. standards where there is a variance, and 

identifying gaps that could potentially be augmented with other standards, and/or gaps that 

require that additional standards be drafted. Two subsequent TA&R studies will be valuable 

contributions to this effort. 

Participation in joint projects is one of the most effective and efficient means to leverage 

available funds and disseminate research findings. Therefore, participation in jointly funded 

projects with industry, other Federal and state agencies, academia, and international regulatory 

organizations has become an important mechanism for TA&R. In 2010, the TA&R program cofunded five projects with other organizations. In 2011, the TA&R program expects to co-fund 

6 projects with other organizations. Due to the many benefits that BOEMRE has experienced 

through co-funded research, the TA&R program will continue to seek opportunities to leverage 

research dollars through joint projects for new engineering studies and conservation research. 

The expansion of industry operations into the deepwater areas of the GOM presents significant 

technological challenges to industry and BOEMRE. Industry is focused upon the development 

of new concepts, operational procedures, production facilities, and transportation facilities to 

meet the physical and economic challenges created by the operating environments of water 

depths between 3,000 to 10,000 feet. In many cases, custom designs are being developed that 

employ new materials and unique operating characteristics, all of which need to be 

independently verified by BOEMRE to ensure safety of operations and protection of the 

environment. The first commercial development of oil discoveries on the Federal portions of the 

Beaufort Sea offshore Alaska also presents special challenges to the TA&R program – 

Bureau of Ocean Energy Management, Regulation and Enforcement 106 
 

 

OEMM - Regulatory 

particularly the forces that sea ice applies to surface structures (i.e., drilling or production 

facilities) and pipelines. 

Meanwhile, existing platforms and pipelines continue to age, and BOEMRE is increasingly 

concerned with ensuring the integrity of these older facilities. If not properly maintained, 

offshore facilities and components will age at an accelerated rate both externally, due to the 

corrosive salt-water environment, and internally, due to the acidic/caustic nature of some 

produced well fluids. In order to manage offshore infrastructure in a safe and fully functional 

condition, it is important to properly protect and maintain wells, platforms, and pipelines through 

sound engineering standards and rigorous inspection. BOEMRE sponsors research to identify 

and correct specific problems associated with aging infrastructure and is working closely with 

industry to ensure the continued safety of OCS facilities, workers, and the environment. 

As platforms and associated production facilities reach the end of their useful lives – as is 

currently happening in the GOM and offshore Southern California – decommissioning and 

removal are required. BOEMRE is planning to fund several projects to ensure that 

decommissioned wells will not leak production fluids. 

Bureau of Ocean Energy Management, Regulation and Enforcement 107 
 

OEMM - Regulatory 

Table 14: OEMM Performance Overview – Regulatory Program Performance Overview - Regulatory Note: Performance and Cost data may be attributable to multiple activities and subactivities. Therefore, measure costs may not equal totals shown in subactivity tables. Mission Area 2: Sustainably Manage Energy, Water, and Natural Resources Goal 1: Secure America's Energy Resources Supporting Performance Measures 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 Strategy 1: Ensure environmental compliance and safety of energy development to protect people, wildlife, and the environment. Amount (in barrels) of operational offshore oil spilled per million barrels produced (excluding Hurricane-related spills) (SP) 2.7 (1,359/ 503.3 million ) 0.52 (243.8/469 million) 3.9 (est.) (2060/531 million) <4.5 7,600 (est.) (4,590369/ 604 million ) <4.5 <4.5 0 <4.5 Total amount (in barrels) of offshore oil spilled per million barrels produced (including Hurricane-related spills) (BUR) 2.7 (1,359/ 503.3 million ) 12.8 (6007/ 469.1 million) 3.9 (est.) (2060/531 million) 

--

7,600 (est.)

(4,590369/ 604 

million ) 

-- -- -- --

Actual/Projected Cost per Unit ($) 64 69.8 70.4 76.6 78.3 78.9 Baseline Year* 0 --

Comments 

In FY 2010, the largest recorded oil spill on the OCS occurred following the explosion and sinking of the Deepwater Horizon drilling rig off the coastof Louisiana. Government scientists estimate that 4.9 million barrels of oil were spilled. The National Incident Command Report states that — "it is estimated that burning, skimming and direct recovery from the wellhead removed one quarter (25%) of the oil released from the wellhead. One quarter(25%) of the total oil naturally evaporated or dissolved, and just less than one quarter (24%) was dispersed (either naturally or as a result of 

operations) as microscopic droplets into Gulf waters." Efforts are still underway to clean up the environmental impacts and recover as much oil as possible. FY 2010 estimated results for the oil spill ratio greatly exceed the planned target; however, FY 2011 and FY 2012 targets will remain at theannual target of less than 4.5 barrels spilled per million barrels produced. NOTE: Oil spill data are constantly updated as additional information becomes available through the completion of investigations and/or recovery operations; occasionally, a spill may be deleted or added a year or more later and result in historical data revisions. A final spill volume for theDeepwater Horizon accident has not been determined. Therefore the numerator for the FY2010 Operational Oil Spill ratio and the rate itself are both estimates. *FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major changes anticipated for program operations. 

Number of Recordable Injuries per 200,000 Offshore Man Hours Worked (SP) N/A N/A N/A N/A N/A Baseline Year TBD -- TBD 

Total Actual/Projected Cost ($M) 0 0 0 0 0 TBD TBD -- --

Comments 

This new strategic plan measure is an incident rate of all Recordable Injuries that occur in the fiscal year for every 200,000 man hours worked (which is the approximate equivalent of 100 man years or full-time equivalents). Recordable injuries are injuries that require medical treatment beyond firstaid and fatalities. 

Bureau of Ocean Energy Management, Regulation and Enforcement 108 
 

OEMM - Regulatory 

Performance Overview - Regulatory (continued)

Supporting Performance Measures 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change fro 2011 Plan to 2012 m Long-term Target 2016

Total Number of Compliance Inspections Completed (BUR) 20,567 25,650 26,978 22,000 23,619 22,000 TBD -- TBD

Total Actual/Projected Cost ($M) 40 44 45 49 50 TBD Baseline Year* 0 --

Comments 

*FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and

On April 30, 2010, the President directed 

anticipated for program operations. 

the Secretary to conduct a 30-day review of the Deepwater Horizon event and to report what

precautions and technologies should be required to improve the safety of oil and gas exploration and production operations on the outshelf. One of the key recommendations included in that report, as well as other subsequent reports, is that the BOEMRE needs to ev

the manner in which it conducts its drilling inspections. The current inspection program has only 62 inspectors which is not sufficien

level of oversight that is needed on federal offshore oil and gas activities. Over the next few years, the inspection program and work

change dramatically. Although final decisions have not been made, the new inspection strategy is expected to involve more on-site wrisk activities (e.g., BOP testing and cement/casing activities) that will take more time to complete, but will not necessarily increase

inspections. For this reason, it is difficult to determine how many inspections will be completed in FY2012 and beyond. 

 the major changes 

additional

er continental 

aluate and revise 

t to provide the

force is expected to 

itnessing of high

 the number of 

Composite accident severity ratio (BUR) 

0.050

(5,208/

104,071) (revd) 

0.122

(12,440/

101,806) (revd) 

0.097

(9,532/

98,719) (revd) 

<.093 

0.184 (est.)

(17,872/

97,184) 

<.093 <0.93 0 TBD

Comments Due to severity and magnitude of the Deepwater Horizon explosion, the ratio results for FY 2010 far exceeded the target. In addition

spilled, and facility damage, BOEMRE received a report of 46 injuries related to the Deepwater Horizon accident that resulted i

restricted work, or job transfer. Severity points were assessed for these injuries and included in the severity point total (numerator) f

the operator has not provided the details necessary to determine which injuries were serious enough to be assessed additional severit

reason, the numerator for the Composite Accident Severity Ratio and the resultant ratio are estimates only. 

For the composite accident severity ratio, BOEMRE assigns a point value to each operator safety incident reported based on its seve

total annual points by the number of components in service for all operators. This metric provides a reflection of the incident severitpoint matrix used to assign accident severity values was updated to provide a better indication of the relative severity of the incidents (

a larger differential between the points assigned for major versus minor incidents). 

 to the fatalities, oil

n > 3 days lost time, 

rity, then divides 

y. In FY 2007, the

or 2010; however, 

y points. For this 

i.e., there is now 

Maintain an annual composite operator performance index of X or less (BUR) 0.13 (revd) 0.19 (revd) 0.17 (revd) <.20 0.24 <0.20 <.20 0 TBD

Total Actual/Projected Cost ($M) 42.4 45.9 46.2 50.3 51.7 TBD Baseline Year* 0 --

Comments

This metric is a consolidated measure of overall operator performance that combines incident severity with operator compliance to e

The operator performance index sums two ratios that are normalized for OCS operator activity. The first ratio measures operator co

weighted INC (incident of non-compliance) value. The second ratio measures operator safety by assigning values for accidents (i.e., 

xisting regulations. 

mpliance using a 

 the composite

accident severity ratio). As with the composite accident severity ratio, FY 2010 results are higher than other years because of the Deepwater Horizon 

event. The FY 2011 and FY 2012 targets are based on maintaining the FY 2010 goal.*FY2012 will be a baseline year for performance costs due to the planned reorganization of BOEMRE into two separate bureaus and the major changes 

anticipated for program operations. 

Bureau of Ocean Energy Management, Regulation and Enforcement 109 
 

OEMM - Regulatory Performance Overview - Regulatory (continued) Supporting Performance Measures 2007 Actual 2008 Actual 2009 Actual 2010 Plan 2010 Actual 2011 Plan 2012 President's Budget Change from 2011 Plan to 2012 Long-term Target 2016 Number of fatalities among workers in DOI permitted activities (BUR) 3 2 2 4 11 4 4 0 T

BD 

Number of serious injuries among workers in DOI permitted activities (BUR) 32 31 25 29 29 29 29 0 TBD 

Comments

In FY 2010, the explosion and sinking of the Deepwater Horizon drilling rig off the coast of Louisiana resulted in eleven deaths. Forty-six lost-time 

injuries were also reported and BOEMRE is still trying to obtain the detailed information necessary to determine the seriousness of these injuries. 

Targets for the fatalities and serious injury metrics are typically developed based on reducing a rolling multi-year average calculated after actual data 

for the current year becomes available. Given the unprecedented magnitude of the Deepwater Horizon incident, and the negative skewing impact that

including 2010 results would have on the rolling average, FY 2011 and FY 2012 targets are being maintained at the plan for FY 2010.

Strategy 3: Manage conventional energy development including coal, oil, and natural gas Reserves recovered per dollar of funding forthe conservation management component of the program (BUR) 

62.7 BOE 

28.9 BOE

(85,811,266/

2,972,207) 

27.08

(60,923,024/

2,249,708) 

5.2 BOE 

24.3

(55,943,067/ 

2,299,660) 

5.2 BOE 5.2 BOE 0 TBD 

Comments 

A Conservation Information Document (CID) details the operator’s initial development plan and proposed depletion scenario for a deepwater project. 

Operators have the tendency to propose a field depletion scenario where marginally economic reservoirs will be bypassed in favor of more prolificreservoirs. BOEMRE conducts an independent evaluation to determine if any additional economically producible reservoirs not proposed for 

development by the operator should be developed. A final CID may require operators to produce reservoirs that they might otherwise bypass, which results in reserves recovered. This metric estimates the return on investment for BOEMRE conservation activities. The fixed annual target reflects the 

fact that as the price of oil and gas fluctuates, it is difficult to predict the number of reservoirs operators will propose to bypass in their CIDs or how much those reservoirs will produce. If operators committed to producing every zone in every CID during the year, the result would be 0, however; ifthey proposed to bypass many reservoirs with reserves that BOEMRE determines are economically producible, the results would be much higher. 

Bureau of Ocean Energy Manageme nt, Regulation and Enforcement 110 
 

OEMM – Information Management Program 

FY 2012 PERFORMANCE BUDGET REQUEST 

Offshore Energy and Minerals Management 

Information Management Program Subactivity 

Table 15: OEMM Information Management Program Subactivity Budget Summary 

2010 

Enacted

Reorganization 

Transfers 

 (+/-) 

Fixed 

Costs 

(+/-) 

Administrative 

Cost Savings 

(-) 

Program 

Changes 

(+/-) 

Offsetting 

Collections 

Changes 

(+/-) 

Budget 

Request 

Change 

from 

2010 

(+/-) 

Information Management 

Subactivity 

($000) 

FTE 

20,454 

64 

0 

0 

+14 

0 

0 

0 

0 

0 

0 

0 

20,468 

64 

+14 

0 

The FY 2012 budget request for the Information Management Program (IMP) Subactivity is 

$20.5 million and 64 FTE, level with the FY 2010 enacted budget and the FY 2011 CR level. 

PROGRAM OVERVIEW 

The Information Management Program (IMP) provides a central foundation to manage the large 

volume of information and data used in the scientific, engineering, and management activities of 

BOEMRE’s OEMM program. The OEMM has a sophisticated and valuable Information 

Technology (IT) infrastructure that supports data management and internal and external 

communications. At the core of OEMM’s IT capabilities is the Technical Information 

Management System (TIMS). TIMS automates the business and regulatory functions of the 

OEMM and brings diverse information into a central database. This enables BOEMRE's 

Regions and Headquarters (HQ) to share and combine data; to standardize processes, forms, 

reports, and maps; to promote the electronic submission of data; to reduce the costs of 

establishing and maintaining duplicate databases and information storage and retrieval systems; 

to enforce data integrity through relational database technology; and to release accurate, 

consistent information to the public. 

The Geological Interpretive Tools (GIT) system represents the basis of essentially all OEMM 

determinations requiring critical geoscience analysis. GIT allows OEMM to improve 

productivity by quantifying analyses, analyzing digital data in three‐dimensions (3‐D), fully 

integrating geophysical and geological data analysis, and reducing risks and uncertainty in 

decision making processes. In addition, OEMM has developed an extensive Geographic 

Information System (GIS) capability for nearly all BOEMRE offshore maps and leasing 

processes, providing BOEMRE the means to define, describe, analyze, and account for every 

acre of Federal offshore-submerged lands. 

The OEMM IT program supports 900 government and contractor staff in four major locations. 

The technical environment is comprised of approximately 215 servers, over 150 GIT 

workstations, and approximately 350 terabytes of electronic data storage. It manages a complex 

network infrastructure, data backup and recovery solutions, and specialized printing and plotting 

capabilities. In addition, OEMM manages a comprehensive IT security program that monitors, 

identifies, and seeks to prevent malicious or unauthorized activity and has developed a proactive 

vulnerability and risk assessment capability. 

Bureau of Ocean Energy Management, Regulation and Enforcement 111 
 

OEMM – Information Management Program 

Headquarters IT staff (located in Herndon, Virginia, and New Orleans, Louisiana) provide 

single-point management, coordination, and standardization of OEMM IT activities, resulting in 

an efficient centralized operation. The Gulf of Mexico Region IT operations are centralized into 

the HQ structure to provide consolidated integration and operations. Some of the many 

responsibilities of this staff include: 

	 Coordination with the Department’s and BOEMRE’s IT Managers, and adherence to 

Departmental Enterprise Architecture, Departmental Capital Planning and Investment 

Control process, and Departmental IT Security; 

 Leadership in the design, development, implementation, and support of OEMM corporate 

database and application systems; 

 Coordination of OEMM information security activities and coordination with BOEMRE 

and Department-wide security functions; 

 Leadership in design, development, integration, implementation, and support of OEMM 

and BOEMRE architecture infrastructure; 

 Coordination of OEMM-wide area network activities and bureau-wide technology 

integration; 

	 Acquisition management of all service contracts in OEMM in support of software 

development, help desk support, IT consulting, and Geoscientific Interpretive Tools to 

assist the geoscientists with the evaluation of OEMM leases and management of 

operations and environmental concerns on the OCS; and 

	 Leadership in the evaluation and integration of new IT solutions. 

The IT units in the other two BOEMRE OCS Regions (Alaska and Pacific) provide onsite IT 

support to program staff in those localities. 

	 Within the IMP, OEMM is responsible for maintaining its fiscal share of the bureau-wide 

IT shared services. Currently this portion of the budget (approximately 34 percent) 

supports the Exchange (e-mail) infrastructure, the master domain infrastructure, the 

Systems Management Server (SMS), enterprise desktop licenses, enterprise contract 

support, and other enterprise-wide systems. 

2012 PERFORMANCE OVERVIEW 

The OEMM IT program is operating in an environment of unprecedented new and changing 

mission needs as a result of changing BOEMRE program responsibilities. These include: 

 New BOEMRE responsibilities for Federal offshore alternative energy and alternate uses 

of America’s offshore public lands under the 2005 Energy Policy Act. 

 Implementation of revenue sharing requirements under the Gulf of Mexico Energy 

Security Act of 2006 (Pub. Law 109‐432). 

 Ongoing changes to improve revenue collections and management processes. 

In addition to responding to conditions that affect the nature of its business, OEMM is under 

increasing pressure to address changes that affect how it will deliver IT. While the OEMM IT 

program operates in an environment of changing mission needs, new technologies and resource 

Bureau of Ocean Energy Management, Regulation and Enforcement 112 
 

OEMM – Information Management Program 

constraints, it remains committed to enhance mission support with the best technology and 

service possible. 

To this end, BOEMRE has established an OEMM IT Program Strategic Plan that serves as highlevel direction for the program. The following provides a broad outline of that plan: 

Framework Goal Principle(s) 

External 1. Align IT solutions with the OEMM business 

environment, policy, goals and statutory 

requirements. 

Collaboration 

Agility 

Value 

Stewardship 

Transparency 

Governance 

Internal 2. Deliver and maintain a secure, reliable, cost 

effective, responsive technology architecture. 

Control 3. Enhance the overall management of the 

information technology program and service 

delivery. 

The following key activities will continue in FY 2012: 

	 First completed in May 2004, certification and accreditation (C&A) of all OEMM 

systems, required by the Federal Security Management Act (FISMA) every three years. 

OEMM continues to be on schedule, with the latest reaccreditation completed in 

FY 2010. 

	 Internal Control Reviews for all OEMM systems: 

o	 To date, no material security weaknesses have been found and OEMM continues 

to be compliant with the Federal Information Security Management Act (FISMA). 

 Annual training for general users and expanded training for systems administrators, 

security managers, and OEMM managers. 

	 Convening governance committees that regularly examine offshore IT needs, recommend 

reprioritization of needs based on new circumstances, and collectively recommend the 

most effective distribution of limited IMP resources. 

Also, BOEMRE continues work to upgrade and maintain TIMS to meet the changing mission 

needs. The Development, Modernization, and Enhancement (DME) phase is estimated to 

continue through FY 2012. The new approach is iterative, builds increments of functionality, 

employs process adaptability, and promotes useful assets that provide desired business outcomes 

using a realistic schedule 

TIMS narrows existing agency performance gaps by: 

 providing better access to the public and industry for a host of BOEMRE services and 

information products; 

 decreasing cycle time to receive and process stakeholder requests; 

Bureau of Ocean Energy Management, Regulation and Enforcement 113 
 

 

 

OEMM – Information Management Program 

 increasing collaboration and information sharing among BOEMRE and external 

stakeholders; 

 increasing the quantity and quality of value-added analysis of BOEMRE data and 

resources; and 

 improving data and information access for the public and industry. 

The four high priorities identified for development and implementation are: 

1. Electronic Document Management System (EDMS) foundational capabilities 

2. Geographic Information System (GIS) 

3. Infrastructure foundational capabilities 

4. Electronic Information Collection/Integration (company and bonding) 

The IMP subactivity funds IT personnel, systems, hardware, software, training, shared services, 

security activities, maintenance, and technical support. Within the Activity-Based Costing 

system, BOEMRE generally assigns IM activities to specified DOI common work activities, 

recognizing that program-specific IT systems are developed and maintained to support mission 

processes. IT security costs are separately identified as program support. 

Regulatory 

9% 

Leasing and 

Environment 

4% 

IT Security 

6% 

Resource 

Evaluation 

3% IT Application 

Development and 

Maintenance 

10% 

IT Management 

68% 

Figure 7. Estimated FY 2010 Information Management Spending Profile 

Bureau of Ocean Energy Management, Regulation and Enforcement 114 
 

 

 

 

 

OEMM – Oil Spill Research Appropriation 

FY 2012 PERFORMANCE BUDGET REQUEST 

Offshore Energy and Minerals Management 

Oil Spill Research Appropriation 

Table 16: OEMM Oil Spill Research Budget Summary 

2010 

Enacted

Reorganization 

Transfers 

 (+/-) 

Fixed 

Costs 

(+/-) 

Administrative 

Cost Savings 

(-) 

Program 

Changes 

(+/-) 

Offsetting 

Collections 

Changes 

(+/-) 

Budget 

Request 

Change 

from 

2010 

(+/-) 

Oil Spill Research ($000) 

FTE 

6,303 

18 

0 

0 

0 

0 

0 

0 

+8,620 

+4 

0 

0 

14,923 

22 

+8,620 

+4 

SUMMARY OF FY 2012 PROGRAM CHANGES 

Request Components 

Amount FTE 

Oil Spill Research +8,620 +4 

JUSTIFICATION OF FY 2012 PROGRAM CHANGES 

The FY 2012 budget request for the Oil Spill Research Appropriation is $14.9 million and 

22 FTE, a net increase of $8.6 million and 4 FTE over the FY 2010 enacted level and the 

FY 2011 CR level. 

Oil Spill Research: ($+8,620,000; +4 FTE) 

Originally requested in the FY 2011 Budget Amendment, additional funding is needed for the 

BOEMRE Oil Spill Research Program to address several key knowledge gaps brought to light by 

the Deepwater Horizon (DWH) oil spill and its troubled and lengthy spill containment and 

response efforts. This request will provide an additional $8.6 million for contract research and 

four FTEs needed to manage the development and monitoring of studies. 

Large research efforts in deep water are very expensive and require multiple partners. BOEMRE 

has a long history of leveraged ocean research, often providing funds to address needed data 

gathering through support to academics and university partners. Agencies including NOAA, the 

Navy, and the USCG National Strike Force often contribute funds or ship time to these efforts, as 

they have ancillary needs for information to support their own missions. 

However, BOEMRE plays a key role in initiating applied research to support decision making 

pertaining to offshore energy development. BOEMRE has long conducted research in oil spill 

containment and response and provides response training at its large test tank facility 

(OHMSETT, Oil and Hazardous Materials Simulated Environmental Test Tank) in Leonardo, 

New Jersey. BOEMRE will continue to play a leadership role in both technology assessment 

and stimulation of innovation on a larger scale than its usual study efforts. Deep spill 

containment needs to be greatly improved, along with deep spill tracking and recovery. In order 

to work at these depths, both surface platforms (e.g., ships) and subsea remotely operated 

vehicles (ROVs) are needed. A typical cost for a single study is on the order of $2-3 million. In 

addition to spills at depth, oil in the water column must also be able to be detected and tracked to 

Bureau of Ocean Energy Management, Regulation, and Enforcement 115 
OEMM – Oil Spill Research Appropriation 

a far greater extent than existing capabilities allow. This includes chemical sampling in the 

water column, and much needed new techniques to estimate the fate of submerged oil and 

dispersant plumes. This information will in turn support oil spill tracking models which can be 

directly applied to spill cleanup requirements and spill response planning. 

When oil reaches the surface, we need to greatly improve our capacity to separate it from the 

water and remove it. The DWH spill response effort demonstrated that existing skimmer 

capacities, which were developed more than two decades ago following the Exxon Valdez 

incident, need to be improved. In addition, better skimming strategies need to be researched and 

employed. 

The use of in-situ burning during the DWH event provided valuable, real-time information that 

has greatly improved our understanding of this promising technique. Research is now needed to 

enhance designs, address decisions pertaining to the stockpiling of fire-proof materials, and 

develop onsite protocols for safety and air quality issues. 

On January 13, 2011, BOEMRE entered into an agreement with the USCG to address sub-sea 

containment design/operating standards and to reassess surface containment/recovery 

performance standards. Research funds need to be available to facilitate evaluation and testing 

for these two efforts. Also effective oil spill response in cold, icy waters is a critical component 

in moving forward with exploration activities on the Alaska OCS. Continued focus on fostering 

the development of new technology for this environment and evaluating response options is 

critical to help ensure the best response assets are available for arctic oil spill response. 

PROGRAM OVERVIEW 

The Oil Spill Research (OSR) appropriation funds oil spill response research, Ohmsett – 

the National Oil Spill Response & Renewable Energy Test Facility, oil spill prevention and 

response planning, and regulation of oil spill financial responsibility. These activities support 

the DOI strategy of enhancing responsible use management practices in the energy sector. 

Funding for OSR activities is appropriated from the Oil Spill Liability Trust Fund (OSLTF). The 

OSLTF was initially funded through a tax of five cents per barrel of oil, collected from industry. 

Subsequent funding for the OSLTF is derived from: 

	 Barrel Tax. The largest source of revenue for oil spill research has been a 5-cent-perbarrel tax, collected from the oil industry on petroleum produced in or imported to the 

United States. The tax was suspended in July 1993 because the Fund reached its 

statutory limit. It was reinstated in July 1994 when the balance declined below $1 

billion, but expired at the end of 1994 because of the sunset provision in the law. The 

2005 Energy Policy Act again reinstated the tax, effective April 2006. 

	 Transfers. A second major source of revenue has been transfers from other existing 

pollution funds. Total transfers into the OSLTF since 1990 have exceeded $550 million. 

No additional funds remain to be transferred to the OSLTF. 

	 Interest. Interest on the OSLTF principal from U.S. Treasury investments generates 

additional revenue. 

116 Bureau of Ocean Energy Management, Regulation, and Enforcement 
 

 

OEMM – Oil Spill Research Appropriation 

	 Cost Recoveries. Another source is cost recoveries from responsible parties; those 

responsible for oil incidents are liable for costs and damages. The National Pollution 

Funds Center bills responsible parties to recover costs expended by the OSLTF. 

	 Penalties. In addition to paying for clean-up costs, responsible parties may incur fines 

and civil penalties under the Oil Pollution Act, the Federal Water Pollution Control Act, 

the Deepwater Port Act, and the Trans-Alaska Pipeline Authorization Act. 

Oil Spill Financial 

Oil Spill Research 

29% 

Responsibility 

5% 

Ohmsett 

50% 

Oil Spill Planning 

and Compliance 

16% 

Figure 8. Estimated FY 2010 Oil Spill Research Spending Profile 

As intended by the Oil Pollution Act of 1990, the companies that produce and transport oil are 

supporting research to improve oil spill response capabilities. 

PERFORMANCE OVERVIEW 

BOEMRE administers many programs and activities aimed at the prevention and mitigation of 

oil spills: 

Oil Spill Response Research (OSRR): BOEMRE is the principal Federal agency funding 

offshore oil spill response research and for more than twenty-five years has maintained a 

comprehensive, long-term research program to improve oil spill response technologies. 

Managed in conjunction with the bureau’s Technology Assessment and Research Program (see 

OEMM - Regulatory Subactivity section), the OSRR program provides research leadership to 

improve the knowledge and capability for the detection, containment, and cleanup of oil spills 

that may occur on the U.S. Outer Continental Shelf. 

The OSRR program is responsive to the information and technological needs of the bureau’s 

regional and district offices. Information derived from the OSRR program is directly integrated 

into BOEMRE’s operations and is used in making regulatory decisions pertaining to permit and 

plan approvals, safety and pollution prevention inspections, enforcement actions, and training 

Bureau of Ocean Energy Management, Regulation, and Enforcement 117 
OEMM – Oil Spill Research Appropriation 

requirements. Research results are also transferred to rule writers, investigators, plan reviewers, 

and others that need this information to ensure safe operations and will assist BOEMRE in its 

efforts to independently keep pace with industry’s technological advancements. Response 

technologies identified by the OSRR program focus on preventing offshore operational spills 

from reaching sensitive coastal environments and habitats. 

The OSRR program is cooperative in nature, bringing together funding and expertise from 

research partners in government agencies, the oil industry, and the international community 

through cooperative research arrangements and participation in concurrent research and 

development projects. Many OSRR projects are Joint Industry Projects, where BOEMRE 

partners with other stakeholders to maximize research dollars. 

A bigger effort must be made to disseminate the results of research and development projects as 

widely as possible in publications through appropriate scientific and technical journals, technical 

reports, and public information documents. The intent is to make this information widely 

available to oil spill response personnel and organizations worldwide. Since its inception, this 

program has expanded capabilities to respond to an oil spill in the marine environment. 

BOEMRE must get these results into the hands of response planners, equipment manufacturers, 

and other agencies. 

The current OSRR projects cover a wide spectrum of oil spill response issues and include 

laboratory, meso-scale and full-scale field experiments. Recent examples of oil spill response 

research include an assessment of the physical and chemical properties of various biofuels 

(biodiesels and gasoline/ethanol blends) to determine their suitability for testing at Ohmsett - The 

National Oil Spill Response Research and Renewable Energy Test Facility; an evaluation of the 

window of opportunity (or time-window) for using various oil spill response technologies for the 

removal of spilled dielectric fluids in the marine environment; examination of the feasibility of a 

cold water and Arctic marine oil spill countermeasure strategy based on the stimulation of oilmineral-aggregate formation in the presence of a chemical dispersant; and validation of models 

that were developed to predict the window of opportunity for successful chemical dispersant use 

in the Gulf of Mexico (GOM). 

In 2011, BOEMRE will continue research to: 

 Develop, test, and evaluate aerial systems to detect and map the thickness of oil spills; 

 Significantly expand the practical operating window for oil detection on and under sea 

ice with Ground Penetrating Radar to cover a wider range of sea ice and climate 

conditions; 

 Assess subsurface dispersant injection as a response option for deepwater blowout oil 

spills by conducting a series of experiments designed to evaluate the dispersant 

effectiveness and monitoring of in situ dispersed oil droplet size distributions in 

subsurface conditions and to develop a general mathematical formulation that can be 

used to predict the droplet size distribution and the influence of both natural and 

chemical dispersion under a wide range of deepwater blowout conditions. 

 Further evaluate the feasibility of using herders to enable in situ burning as an open 

water oil spill response countermeasure. 

118 Bureau of Ocean Energy Management, Regulation, and Enforcement 
 

 

 

OEMM – Oil Spill Research Appropriation 

Ohmsett - The National Oil Spill Response and Renewable Energy Test Facility: Ohmsett is 

one of the world’s largest tow/wave tanks, designed to test and evaluate full scale equipment for 

the detection, containment, and cleanup of oil spills. Ohmsett is also developing the capability to 

test renewable energy systems such as wave generating systems. No other agency operates a 

facility like Ohmsett; in fact, major Federal clients such as the United States Coast Guard and the 

United States Navy rely on Ohmsett for their training needs. The diverse private client base of 

Ohmsett varies from major oil industry firms such as Exxon Corporation and Marine Spill 

Response Corporation to academic research institutions like the University of New Hampshire, 

University of Rhode Island, and the University of Miami. Private sector clients reimburse 

BOEMRE for the cost of using the Ohmsett facility. 

Ohmsett is the only facility where full scale oil spill response testing, training, and research can 

be conducted with a variety of crude oils and refined products in varying wave conditions. 

Ohmsett is located at Naval Weapons Station Earle in Leonardo, New Jersey, about one hour 

drive south of New York City. The heart of Ohmsett is a large outdoor, above ground concrete 

test tank that is 667 feet long, 65 feet wide, 11 feet deep and filled with 2.6 million gallons of 

crystal clear saltwater. Ohmsett plays an important role in developing the most effective 

response technologies, as well as preparing responders with the most realistic training available. 

The facility provides testing and research capabilities to help the government fulfill its regulatory 

requirements and meet its goal of clean and safe operations. 

Many of today’s commercially available oil spill cleanup products have been tested at Ohmsett 

and a considerable body of performance data and information on mechanical response equipment 

has been obtained there. This information can be used by response planners in reviewing and 

approving facility contingency plans. Ohmsett is also the premier training site for oil spill 

response personnel. Government agencies including the USCG and USN as well as private 

industry and oil spill response organizations train their emergency response personnel with real 

oil and their own full-scale equipment. Some of the testing activities for 2010 included three 

remote sensing tests, an alternative energy test, skimmer and boom tests, dispersant tests, 

dielectric fluid recovery tests, evaluation of the Tesoro-Crucial Skimmer, remote sensing tests, 

and industry oil spill response training classes. 

For 2011, there will be several alternative energy system tests, oil dispersant tests, a USCG 

sunken oil test, contestant competition for the Wendy Schmidt Oil Cleanup X Challenge finals 

($1 million first prize), remote sensing tests, and several USCG and industry oil spill response 

training classes. Information on Ohmsett can be found at www.ohmsett.com. Information on the 

X PRIZE Foundation can be found at www.xprize.org.http:/// 

Bureau of Ocean Energy Management, Regulation, and Enforcement 119 
 

 

OEMM – Oil Spill Research Appropriation 

Figure 9: Ohmsett Facility in New Jersey 

Oil Spill Response and Planning: BOEMRE is responsible for oil spill planning, preparedness, 

and response for facilities engaged in oil and gas exploration, development, and production 

seaward of the coastline, as well as those facilities that handle, store, or transport oil. Several 

functions associated with this OPA-derived authority include review and approval of oil spill 

response plans that cover over 3,700 fixed and floating platforms and 37,000 miles of subsea 

pipelines, ensuring preparedness of spill management teams and viability of oil spill response 

plans through conduct of unannounced oil spill drills that often require deployment of major 

pieces of oil spill response equipment, on-site inspection covering maintenance, operability, and 

distribution of all oil spill response equipment listed in oil spill response plans, and assisting the 

designated federal on-scene coordinator during responses to offshore spills. 

Following the Deepwater Horizon event, BOEMRE has taken steps to identify weaknesses in 

response to offshore oil spills and gaps with applicable area contingency plans, provide guidance 

to offshore operators in areas where plan improvements are necessary, and significantly 

increased coordination with the U.S. Coast Guard. Examples of several of the initiatives 

undertaken include the November 8, 2010, publication of NTL 2010-N10, which addressed 

operator information requirements for demonstrating adequate spill response and well 

containment resources; another example is the January 13, 2011, Response Work Group Charter 

that established BOEMRE and USCG team of experts to work collaboratively on subjects 

including response planning standards, activity coordination, and a national database of spill 

response equipment. BOEMRE staff are currently working with the USCG to develop a Job Aid 

that will be used by USCG staff to review adequacy of worst case discharge scenario response 

strategies and to identify gaps with area and regional contingency plans. When the revision 

process of the subject plans begins, BOEMRE staff will, for the first time, be dedicated to the 

U.S. Coast Guard led effort, to ensure that appropriate response strategies are incorporated in the 

plans based upon worst case discharge scenarios from offshore facilities. 

As part of our efforts to implement the recommendations of the Offshore Safety Oversight 

Board, BOEMRE has convened a team dedicated to addressing, among other items, validation of 

120 Bureau of Ocean Energy Management, Regulation, and Enforcement 
 

OEMM – Oil Spill Research Appropriation 

worst case discharge modeling through a peer review process with the U.S. Geological Survey, 

development of oil spill response plan review standards, revisions to the Memoranda of 

Agreement with the U.S. Coast Guard on oil spill planning, preparedness, and response, and 

improved coordination with Federal and state agencies with oil spill response authorities or 

interests. This effort continues with oversight from senior BOEMRE management and will 

result in improvements that are intended to provide for greater spill recovery efficiencies and 

thus a high level of environmental protection. 

Recognizing the need for greater coordination of BOEMRE functions associated with offshore 

oil discharges, the Director announced the creation of the Oil Spill Response Division – a move 

that would bring under one roof staff and functions needed to provide clear program direction 

and ensure consistent implementation throughout the bureau. The organization will provide for 

dedicated staff to concentrate on highly technical and scientific issues as primary rather than 

collateral duties as in the past and to more actively engage in committees and activities attendant 

to the National Response System, National Contingency Plan, and the National Response 

Framework. Increased staffing is essential to the success of this new enterprise. While many 

functions will involve transfer of existing staff into the Division, there is a need to hire new staff 

to meet the demands of the post-Deepwater Horizon oil spill response posture for offshore U.S. 

waters. 

Oil Spill Financial Responsibility: BOEMRE is responsible for implementing the financial 

responsibility provisions of OCSLA and OPA, which require companies responsible for certain 

offshore oil and gas facilities, in both Federal and state waters, to demonstrate their ability to pay 

the costs of facility oil spill discharge removal and damages. Several methods may be used to 

demonstrate oil spill financial responsibility (OSFR), including insurance, bonds, self-insurance, 

and guarantee. The amount of OSFR needed is based on facility location and the volume of the 

worst-case oil spill discharge that could occur. Extensive coordination and exchange of lease 

data takes place with affected states to ensure that the public is insulated from fiscal risk by 

ensuring that each offshore operator maintains the ability to pay for damages resulting from 

worst-case oil spill scenarios. 

Bureau of Ocean Energy Management, Regulation, and Enforcement 121 
OEMM – Oil Spill Research Appropriation 

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122 Bureau of Ocean Energy Management, Regulation, and Enforcement 
 

 

 General Administration 

FY 2012 PERFORMANCE BUDGET REQUEST 

General Administration 

Table 17: General Administration Summary of Budget Request 

General Administration 

2010 

Enacted

Reorganization 

Transfers 

 (+/-)

Fixed

Costs 

 (+/-) 

 Administrative 

Cost Savings 

(-)

Program 

Changes 

 (+/-) 

Offsetting 

Collections 

Changes 

(+/-) 

Budget 

Request

Change 

from 

2010 

 (+/-) 

Executive Direction ($000) 

FTE 

2,818 

27 

-361 

-2 

0 

0 

-25 

0 

+610 

0 

-2 

0 

3,040 

25 

+222 

-2 

Policy and Management 

Improvement 

($000) 

FTE 

4,328 

31 

-1,341 

-11 

+1 

0 

-29 

0 

+7,083 

+24 

-3 

0 

10,039 

44 

+5,711 

13 

Administrative Operations ($000) 

FTE 

20,029 

160 

-8,808 

0 

+3 

0 

-398 

0 

+1,505 

+1 

-7 

0 

12,324 

161 

-7,705 

+1 

General Support Services ($000) 

FTE 

28,524 

0 

-9,360 

0 

+996 

0 

-22 

0 

+917 

0 

-33 

0 

21,022 

0 

-7,502 

0 

Total ($000) 

FTE 

55,699 

218 

-19,870 

-13 

+1,000 

0 

-474 

0 

+10,115 

+25 

-45 

0 

46,425 

230 

-9,274 

+12 

The General Administration function provides the administrative, management and policy support 

and services that the entire organization needs to carry out its primary missions. An ongoing 

assessment is occurring to identify the most appropriate administrative and support structure 

details for the two new organizations to be created from BOEMRE at the start of FY 2012. 

BOEMRE is assessing the best ways to provide high levels of service to both organizations 

(BOEM and BSEE), while meeting objectives for efficiency and timeliness. 

FY 2012 BUDGET OVERVIEW 

The BOEMRE General Administration function currently consists of four subactivities: 

 Executive Direction, which provides bureau-wide leadership, direction, management, 

coordination, communications strategies, and outreach; 

 Policy and Management Improvement, which coordinates the bureau’s policy 

management and strategic planning efforts; 

 Administrative Operations, which includes budget, finance, human resources, 

procurement, facilities, information management, and equal employment services; and 

 General Support Services, which ensures bureau-wide infrastructure support, such as 

office space, security, utilities, and voice/data communications. 

FY 2012 BUDGET REQUEST 

The FY 2012 budget request for the General Administration Subactivity is $46.4 million and 230 

FTE, a net increase of $10.6 million and 25 FTE compared with the FY 2010 enacted level and the 

FY 2011 CR level, after adjusting for the transfer of $19.9 million in administrative support 

resources associated with the Office of Natural Resources Revenue (ONRR). ONRR was 

transferred to the Office of the Secretary on October 1, 2010 as part of the ongoing reorganization 

of the former Minerals Management Service. See the following table for General Administration’s 

programmatic budgetary changes. 

Bureau of Ocean Energy Management, Regulation and Enforcement 123 
 

General Administration 

Table 18: General Administration Request Compared to FY 2010 

Request Component Subactivity Amount FTE 

Fixed Costs 

General Support Services 

Administrative Operations 

Policy and Management Improvement 

Subtotal: 

+996,000 

+3,000 

+1,000 

0 

0 

0 

+1,000,000 0 

Administrative Savings 

Executive Direction 

Policy and Management Improvement 

General Support Services 

Administrative Operations 

Subtotal: 

-25,000 

-29,000 

-22,000 

-398,000 

0 

0 

0 

0 

-474,000 0 

Reorganization Efficiences and Changes 

Administrative Operations 

General Support Services 

Executive Direction 

Policy and Management Improvement 

Subtotal: 

+1,505,000 

+917,000 

+610,000 

+101,000 

+1 

0 

0 

0 

+3,133,000 +1 

Investigations and Review Unit (IRU) Policy and Management Improvement 

Subtotal: 

+5,782,000 +20 

+5,782,000 +20 

Independent Advisory Board Policy and Management Improvement 

Subtotal: 

+1,200,000 +4 

+1,200,000 +4 

Offsetting Collections 

Executive Direction 

Policy and Management Improvement 

Administrative Operations 

General Support Services 

Subtotal: 

-2,000 

-3,000 

-7,000 

-33,000 

0 

0 

0 

0 

-45,000 0 

Transfer to ONRR/PMB 

Executive Direction 

Policy and Management Improvement 

Administrative Operations 

General Support Services 

Subtotal: 

-361,000 

-1,341,000 

-8,808,000 

-9,360,000 

-2 

-11 

0 

0 

-19,870,000 -13 

Total: -9,274,000 +12 

124 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 General Administration 

Fixed Costs and Related Changes 

BOEMRE’s fixed costs are expected to increase by $1,192,000 in FY 2012 over FY 2011, net of 

reorganization adjustment for ONRR. 

BOEMRE’s fixed cost increase is composed of the following: 

Change in Pay Days FY 2011 to FY 2012 -$456,000 

FY 2011 Pay Adjustment (0% - reflects pay freeze) +$0 

FY 2012 Pay Adjustment (0% - reflects pay freeze) +$0 

Non-Foreign Area COLA/Locality Pay Adjustment +$180,000 

Employer Share of Federal Health Benefits +$472,000 

Department Working Capital Fund -$181,000 

Workers’ Compensation Payments +$323,000 

Unemployment Compensation +$0 

GSA/Non-GSA Space Rental +$854,000 

Total Projected Fixed Cost Increase +$1,192,000 

PROGRAM AND PERFORMANCE OVERVIEW 

The General Administration function provides the administrative, management and policy support, 

and other services that the entire organization needs to carry out its primary missions. The 

administrative arm of BOEMRE provides leadership and direction in overall management of the 

organization, planning and performance, budget, finance, human resources, information 

technology, and other services. Centralization of these administrative functions leverages 

resources and contributes to efficient and effective operations across the organization. During this 

reorganization transition period, BOEMRE continues to provide certain support services to ONRR 

through reimbursable agreements. 

PERFORMANCE 

General Administration does not have performance measures specifically for its activities; rather, 

the efforts within General Administration feed into the performance measures for the functional 

programs. 

Bureau of Ocean Energy Management, Regulation and Enforcement 125 
 

General Administration 

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126 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

 General Administration 

FY 2012 PERFORMANCE BUDGET REQUEST 

General Administration 

Executive Direction 

Table 19: Executive Direction Subactivity Budget Request 

2010 

Enacted

Reorganization 

Transfers 

 (+/-)

Fixed

Costs 

 (+/-) 

 Administrative 

Cost Savings 

(-)

Program 

Changes 

 (+/-) 

Offsetting 

Collections 

Changes 

(+/-) 

Budget 

Request 

Change 

from 

2010 

(+/-) 

Executive Direction ($000) 

FTE 

2,818 

27 

-361 

-2 

0 

0 

-25 

0 

610 

0 

-2 

0 

3,040 

25 

+222 

-2 

SUMMARY OF FY 2012 PROGRAM CHANGES 

Request Component Amount FTE 

Reorganization Efficiences and Changes +610,000 0 

Offsetting Collections -2000 0 

Administrative Savings -25,000 0 

Transfer to ONRR/PMB -361,000 -2 

Total: +222,000 -2 

JUSTIFICATION OF FY 2012 PROGRAM CHANGES 

Information regarding BOEMRE’s efforts to reduce administrative costs and achieve 

reorganization efficiencies can be found in the General Statement. 

Reorganization Efficiencies and Changes ($610,000; 0 FTE): Successful reorganization and 

OCS reform will require development of effective leadership teams in each of the new 

organizations and maintenance of existing capacity. 

Transfer to ONRR/PMB(-$361,000; -2 FTE): Two staff members have been transferred to 

ONRR/PMB to support Congressional and Public Affairs activities. 

PROGRAM OVERVIEW 

The Executive Direction Subactivity comprises the Office of the Director, the Office of Public 

Affairs, and the Office of Congressional Affairs. 

Office of the Director (OD) 

The Office of the Director includes the Director, the Deputy Directors, and their immediate staff. 

This office is responsible for providing general policy guidance and overall leadership within the 

BOEMRE organization, as well as managing all of the official documents of the Office of the 

Director. 

Bureau of Ocean Energy Management, Regulation and Enforcement 127 
 

General Administration 

Office of Public Affairs (OPA) 

The OPA is responsible for BOEMRE’s communication strategies and outreach. The goal of OPA 

is to inform the public, ensure coordinated communication, consistent messages, and the effective 

exchange of information with all customers and stakeholders. The OPA coordinates the 

implementation of an effective and inclusive outreach program to numerous target audiences, 

including state and local governments, the energy industry, related trade associations, the 

environmental community, Indian tribes, energy consumer groups, and the public. 

Office of Congressional Affairs (OCA) 

The OCA serves as the primary point of contact with Congress, and is responsible for the 

coordination of all communication and outreach with Congressional offices, as well as ensuring a 

consistent message and the effective exchange of information. The OCA serves as the liaison for 

BOEMRE on all Congressional and legislative matters that affect BOEMRE with Congress, the 

Department of the Interior, and other Federal executive agencies. 

128 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

 General Administration 

 FY 2012 PERFORMANCE BUDGET REQUEST 

General Administration 

Policy and Management Improvement Subactivity 

Table 20: Policy and Management Improvement Subactivity Budget Request 

2010 

Enacted

Reorganization 

Transfers 

 (+/-)

Fixed

Costs 

 (+/-) 

 Administrative 

Cost Savings 

(-)

Program 

Changes 

 (+/-) 

Offsetting 

Collections 

Changes 

(+/-) 

Budget 

Request 

Change 

from 

2010 

(+/-) 

Policy and Management 

Improvement 

($000) 

FTE 

4,328 

31 

-1,341 

-11 

+1 

0 

-29 

0 

+7,083 

+24 

-3 

0 

10,039 

44 

+5,711 

+13 

SUMMARY OF FY 2012 PROGRAM CHANGES 

Request Component Amount FTE 

Investigations and Review Unit (IRU) +5,782,000 +20 

Independent Advisory Board +1,200,000 +4 

Reorganization Efficiences and Changes +101,000 0 

Fixed Costs +1,000 0 

Offsetting Collections -3,000 0 

Administrative Savings -29,000 0 

Transfer to ONRR/PMB - Appeals Office -1,341,000 -11 

Total: +5,711,000 +13 

JUSTIFICATION OF FY 2012 PROGRAM CHANGES 

Information regarding BOEMRE’s efforts to reduce administrative costs and achieve 

reorganization efficiencies can be found in the General Statement. 

Investigations and Review Unit (+$5,782,000; +20 FTE): Funding is requested to staff and equip 

an Investigations and Review Unit (IRU), a team of professionals with law enforcement 

backgrounds or technical expertise whose mission is to: promptly and credibly respond to 

allegations or evidence of misconduct and unethical behavior by Bureau employees; pursue 

allegations of misconduct by oil and gas companies involved in offshore energy projects; and 

assure the Bureau's ability to respond swiftly to emerging issues and crises, including significant 

incidents such as spills and accidents. The IRU will evaluate all information submitted and will, 

where appropriate, conduct further investigation. The IRU will be sharing allegations of 

misconduct with the Department of the Interior’s Office of Inspector General (OIG), and they will 

jointly determine which office conducts any investigation of those allegations. 

Independent Advisory Board (+$1,200,000; +4 FTE): The Board was conceived by the 

Reorganization Team and would be charged with reviewing BOEM internal policies, procedures, 

rules, and regulations. It would also provide peer review through participation of BSEE staff who 

would serve as informal advisors. The board will ensure the continued coordination among the 

emerging bureaus. Requested funds would also cover operating costs such as travel and space. 

Bureau of Ocean Energy Management, Regulation and Enforcement 129 
 

General Administration 

Reorganization Transfers – Appeals Office (-$1,341,000; - 11 FTE): As part of the 

reorganization, the Administrative Appeals office was moved to ONRR on October 1, 2010. 

PROGRAM OVERVIEW 

The Policy and Management Improvement Subactivity (PMI) serves as the principle office to 

provide the Director with independent review and analysis of programmatic and management 

issues. Additionally, PMI leads, coordinates and monitors many cross-program initiatives, 

assuring a consistent, BOEMRE-wide implementation that directly supports Congressional, 

Presidential and Departmental directives, laws, mandates and guidance. 

PMI fulfills the Director’s responsibilities in several critical areas including strategic and 

performance planning, policy and program evaluation and regulatory responsibilities. PMI is also 

responsible for ensuring that programmatic plans and policies are consistent with and integrated 

into the overall bureau mission and responsibilities, as well as with Department and 

Administration policy frameworks. In addition, PMI administers and coordinates internal reviews, 

and oversees and assures implementation of recommendations made by oversight groups such as 

the Government Accountability Office and the Office of Inspector General. Evaluations of 

BOEMRE’s existing and proposed policies and programs are conducted through economic and 

programmatic analyses. 

POLICY AND REGULATION PROGRAMS 

Policy Analysis 

At the request of the Director and in support of Secretarial initiatives, PMI provides policy reviews 

and analysis on a broad range of complex and controversial matters. In addition, PMI reviews 

legislation, regulations, and other documents for their policy content and provides analysis of 

proposals from outside BOEMRE that affect BOEMRE programs. 

Open and Nondiscriminatory Access Hotline 

Implementation of the Open and Nondiscriminatory Access Hotline began in August 2008. This 

initiative invites shippers and others to call with concerns, if they believe they have been, or are 

being, denied open or nondiscriminatory access to oil or gas pipelines operating on the OCS under 

a Right-of-Way or other authority granted by the Department of the Interior. The Hotline gives 

callers an informal way to report problems obtaining access to OCS pipelines not under the Federal 

Energy Regulatory Commission jurisdiction, without litigation or lengthy complaint proceedings. 

Regulatory Direction 

PMI manages BOEMRE’s regulatory program and serves as liaison to the Department’s regulatory 

office, the Federal Register and the Office of Management and Budget. PMI manages and 

organizes the rulemaking process to enable the Director to assure that rules are consistent with 

policy and legislation and meet all administrative requirements. PMI, working with BOEMRE 

leadership, prioritizes all rulemakings, tracks status, and assures that OMB, Departmental and 

Congressional requirements are met. 

130 Bureau of Ocean Energy Management, Regulation and Enforcement 
 General Administration 

PLANNING AND PERFORMANCE PROGRAMS 

Strategic Planning and Performance Management 

PMI is the organization responsible for strategic planning and ensuring a culture of accountability 

for results at BOEMRE. PMI coordinates and guides the bureau in developing and implementing 

strategic and annual implementation plans, developing performance metrics, and ensuring that 

metrics are comprehensive and consistent with BOEMRE policy. 

PMI works with the programs to integrate performance and activity based costing (ABC). The 

office leads efforts to strengthen decision-making and improve results through corporate-level 

analysis and review of ABC costs of program outputs, performance and financial management 

metrics, and the results of internal and external assessments. PMI leads BOEMRE’s initiative to 

apply activity-based costing/management (ABC/M) methods to its operations. 

Program Evaluation and Review of Internal Management Controls 

PMI leads an integrated evaluation process to ensure that BOEMRE programs operate as designed 

and that recommendations resulting from internal and external reviews are adequately addressed. 

All evaluations of BOEMRE programs and activities are tracked, analyzed, and the status is 

provided quarterly to management. The evaluations include both internal and external reviews 

such as GAO and OIG audits, management control reviews, risk assessments, performance 

assessments, ABC data reviews, administrative reviews, financial management metrics, and other 

special ad hoc reviews of BOEMRE programs and initiatives. 

Bureau of Ocean Energy Management, Regulation and Enforcement 131 
 

General Administration 

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132 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

 

 General Administration 

FY 2012 PERFORMANCE BUDGET REQUEST 

General Administration 

Administrative Operations Subactivity 

Table 21: Administrative Operations Subactivity Budget Request 

2010 

Enacted

Reorganization 

Transfers 

 (+/-)

Fixed

Costs 

 (+/-) 

 Administrative 

Cost Savings 

(-)

Program 

Changes 

 (+/-) 

Offsetting 

Collections 

Changes 

(+/-) 

Budget 

Request 

Change 

from 

2010 

(+/-) 

Administrative Operations ($000) 

FTE 

20,029 

160 

-8,808 

0 

+3 

0 

-398 

0 

+1,505 

+1 

-7 

0 

12,324 

161 

-7,705 

+1 

SUMMARY OF FY 2012 PROGRAM CHANGES 

Request Component Amount FTE 

Reorganization Efficiences and Changes +1,505,000 +1 

Fixed Costs +3,000 0 

Offsetting Collections -7,000 0 

Administrative Savings -398,000 0 

Transfer to ONRR/PMB -8,808,000 0 

Total: -7,705,000 +1 

JUSTIFICATION OF FY 2012 PROGRAM CHANGES 

Information regarding BOEMRE’s efforts to reduce administrative costs and achieve 

reorganization efficiencies can be found in the General Statement. 

Reorganization Efficiencies and Changes (+$1,505,000; +1 FTE): Successful reorganization 

and OCS reform will require an effective organizational infrastructure, including human resources, 

procurement, support services and administrative direction and coordination to support core 

mission operations. 

Transfer to ONRR/PMB (-$8,808,000; 0 FTE): Funding for the administrative support of ONRR 

is being transferred to the Office of the Secretary as part of the BOEMRE reorganization. 

PROGRAM OVERVIEW 

The Administrative Operations Subactivity consists of the following functions: Administrative 

Direction and Coordination, Emergency Management, Budget, Finance, Equal Employment 

Opportunity, Human Resources, Procurement, and Information Management. 

Administrative Direction and Coordination: Administrative direction and coordination provides 

for oversight of all administrative activities within BOEMRE. This oversight ensures compliance 

with laws relating to administrative activities; provides for the review, interpretation, and 

implementation of Federal executive branch administrative policies and procedures; and develops 

appropriate guidance to ensure compliance with DOI, OMB, GSA, and other executive branch 

Bureau of Ocean Energy Management, Regulation and Enforcement 133 
 

 

 

General Administration 

administrative policies and regulations. This function also includes responsibility for management 

analysis functions, such as management studies and reviews, organizational reviews, delegations 

of authority and related activities, and special projects. 

Emergency Management: The Emergency Management program is responsible for providing 

emergency management services and preparing continuity of operations plans. An Emergency 

Coordinator and associated staff oversee the operations of this program. BOEMRE has a process 

in place for reporting critical emergency incidents to the appropriate officials in a timely manner. 

Our Continuity of Operations Program (COOP) includes training and exercises, providing for 

alternate relocation facilities, alternate interoperable communications, and alternate 

database/records access. Our goal is to have appropriate emergency management plans, and 

continuity of operations plans, in place for any unplanned event or unforeseen circumstance that 

can cause significant disruption of mission functions. 

BOEMRE continues to comply with the Office of Homeland Security’s National Incident 

Management System and Incident Command System, working closely with designated lead 

agencies such as the U.S. Coast Guard to safeguard our Nation’s energy supply. 

Budget Division: The Budget Division provides budget analysis and guidance for the formulation, 

Congressional and execution phases of the budget cycle. During the budget formulation cycle, the 

Budget Division develops and maintains all budgetary data to support BOEMRE’s budget requests 

to the Department with submission of the Budget Proposal, to the Office of Management & Budget 

with submission of the Budget Estimates and to the Congress with submission of the Budget 

Justifications. During the Congressional phase, the Budget Division prepares capability and effect 

statements, provides answers to House and Senate questions and drafts testimony and oral 

statements for Congressional hearings. Throughout the execution phase, the Budget Division 

tracks spending against line item budgets, analyzes budgetary and expense data, and provides 

regular updates to BOEMRE executives on the status of funds. The Budget Division works 

closely with the Planning & Management Division of the Policy and Management Improvement 

Subactivity and program level performance staff to integrate performance data and information 

into all aspects of budget formulation and execution. 

Finance Division: The Finance Division is responsible for the planning and effective utilization of 

financial system resources in support of the varied operating and support programs. The Finance 

Division serves as the focal point for the implementation of the provisions of the Chief Financial 

Officer’s Act of 1990 including liaison responsibilities for the annual audit of the combined 

financial statements contained in the Annual Financial Report. 

This Division is responsible for the administrative accounting operations. Finance manages the 

administrative accounting system; audits and schedules bills for payments; collects debts; develops 

financial data; prepares financial reports; provides advice and guidance on financial matters; and 

maintains liaison with departmental offices and other federal agencies. It is a long-term goal of 

BOEMRE to ensure that timely and accurate financial data is readily available to assist BOEMRE 

management in making sound and justified management decisions. 

Equal Employment Opportunity Division (EEOD): The EEOD develops, monitors, and operates 

the BOEMRE Equal Employment Opportunity (EEO) program in compliance with the Civil 

134 Bureau of Ocean Energy Management, Regulation and Enforcement 
 General Administration 

Rights Act of 1964, the Equal Employment Opportunity Act of 1972, Executive Order 11478, 

departmental directives, and other related statutes and orders. Specifically, the responsibilities of 

BOEMRE-EEOD include: 

 Provide advice and guidance to managers, supervisors, and employees; 

 Maintenance and operation of the discrimination complaint system; 

 Implementation of Equal Employment Opportunity and Affirmative Employment Plans; 

 Implementation of programs for diversity, higher education, and related partnerships; 

 Administration of the Employee Assistance Program; 

 Administration of programs for dispute resolution alternatives; 

 Monitor, evaluate, and adjudicate civil rights compliance, enforcement functions covering 

EEO, and federally funded/assisted education and training programs with state and local 

governments. (Titles VI & IX to include Sections 504 & 508 of the Rehabilitation Act); 

 Oversight of special initiative programs designed to involve more women, minorities and 

people with disabilities in the program areas and throughout all levels of management; 

 Coordination of responses to Solicitors Office EEO issue requests; and 

 Compliance with the Departmental Office for Equal Opportunity and EEO Commission 

directives. 

Human Resources Division: The Human Resources (HR) Division develops and implements 

policies, procedures, guidelines, and standards relating to general personnel management, 

recruitment and employment, position management and classification, and employee development. 

Work includes preparing appropriate reports, performing all operational personnel services for 

Headquarters and client organizations, and providing assistance and guidance related to personnel 

matters for all regional and field installations. The Division focuses on employee relations and 

services, including personnel program evaluation, labor/management relations, advising employees 

about conflict of financial interest and standards of conduct, and administering incentive awards 

programs, family friendly programs, the Federal Equal Opportunity Recruitment Program, and 

Senior Executive Service program. In addition, the Division is responsible for the development of 

training policy and oversight of a bureau-wide Learning Management System that will serve as a 

valuable workforce planning and management tool. The HR Division also coordinates all 

Departmental mandated employee development initiatives for implementation in BOEMRE. 

The Human Resources Division also leads all BOEMRE workforce-planning initiatives, which 

include analyzing the current workforce, identifying future workforce needs and preparing plans 

for building the workforce needed in the future. The long-term benefits of workforce-planning 

initiatives include the ability of BOEMRE to meet its mission and performance goals. 

Procurement Division: The Procurement Division is responsible for the execution and 

administration of BOEMRE contracts and financial assistance agreements. The Division provides 

acquisition and financial assistance policy guidance, cost and price analysis, and advice to 

procurement and program personnel. They conduct acquisition management and other internal 

control reviews of procurement activities. They also administer the purchase line of the BOEMRE 

charge card program and manage the agency’s competitive sourcing program. In addition, they 

manage the Business and Economic Development Program to maximize opportunities for small, 

disadvantaged, and women-owned businesses, as well as historically black colleges and 

Bureau of Ocean Energy Management, Regulation and Enforcement 135 
 

General Administration 

universities as both prime contractors and subcontractors. They also oversee all acquisition career 

management programs. 

Support Services: Support Services includes facilities management for BOEMRE locations 

throughout the country, space management, mail and courier activities, bureau-wide physical 

security, the Safety and Health Management Program, voice and data communications, printing 

and publication activity, and property management and issuance of policy on these functions. The 

property management program maintains accountability records of all system-controlled property 

in the possession and control of custodial property officers and contractors and manages the 

vehicle fleet and the museum property, including an Arts and Artifacts program. 

Information Management Division: The Information Management Division (IMD) supports the 

Chief Information Officer (CIO) in his duties and responsibilities for ensuring the efficient and 

effective planning, management and acquisition of information technology and information 

resources within BOEMRE and ensuring compliance with all DOI and federal information 

resources management policies and guidelines. 

The IMD is engaged in an ongoing effort to establish, maintain, and support an IT investment 

analysis and decision-making environment to ensure that all bureau IT investments are well 

planned, implemented, cost effective, and aligned with the BOEMRE and DOI enterprise 

architecture. This includes managing the capital asset planning program by performing IT 

investment portfolio analysis; managing the review and submission to OMB of BOEMRE’s 

Business Cases (Exhibit 300s); developing the Exhibit 53 (IT portfolio); and maintaining liaisons 

with the DOI regarding BOEMRE information technology investments. 

The IMD also implements and supports the Bureau’s IT security program. The IT Security 

Manager works collaboratively with the BOEMRE program areas IT Security Managers as well as 

with the DOI’s Office of the CIO to review and improve security plans, policies, procedures, and 

standards to reflect technological changes. The IT security efforts also include participating in risk 

assessments and management reviews of systems and networks, identifying security issues, and 

recommending mitigation. 

Field Administrative Service Centers: The Field Administrative Service Centers provide direct 

administrative support to various BOEMRE program managers through two locations: 

	 The Southern Administrative Service Center (SASC): The SASC, located in New 

Orleans, Louisiana, provides direct administrative support, direction, and coordination to 

programs in the Gulf of Mexico Region (GOMR), and the Information Technology 

Division. The SASC also provides full support to five outlying District GOMR offices. 

	 The Western Administrative Service Center (WASC): The WASC, located in Denver, 

Colorado, provides direct administrative support, direction, and coordination to the Office 

of Natural Resources Revenue offices in Denver and its field entities, the Office of Policy 

and Management Improvement, and the Alaska and Pacific OCS Regions. 

136 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

 

 

 General Administration 

FY 2012 PERFORMANCE BUDGET REQUEST 

General Administration 

General Support Services Subactivity 

Table 22: General Support Services Subactivity Budget Request 

2010 

Enacted

Reorganization 

Transfers 

 (+/-)

Fixed

Costs 

 (+/-) 

 Administrative 

Cost Savings 

(-)

Program 

Changes 

 (+/-) 

Offsetting 

Collections 

Changes 

(+/-) 

Budget 

Request

Change 

from 

2010 

 (+/-) 

General Support Services ($000) 

FTE 

28,524 

0 

-9,360 

0 

+996 

0 

-22 

0 

+917 

0 

-33 

0 

21,022 

0 

-7,502 

0 

SUMMARY OF FY 2012 PROGRAM CHANGES 

Request Component Amount FTE 

Fixed Costs +996,000 0 

Reorganization Efficiences and Changes +917,000 0 

Offsetting Collections -33,000 0 

Administrative Savings -22,000 0 

Transfer to ONRR/PMB -9,360,000 0 

Total: -7,502,000 0 

JUSTIFICATION OF 2012 PROGRAM CHANGES 

Information regarding BOEMRE’s efforts to reduce administrative costs and achieve 

reorganization efficiencies can be found in the General Statement. 

Reorganization Efficiencies and Changes (+$917,000; 0 FTE): Funds are requested to meet nonvariable costs as funding from revenue management sources will no longer be available to the 

emerging bureaus. 

Transfer to ONRR/PMB (-$9,360,000; 0 FTE): Funding for ONRR’s general support services 

are being transferred to support revenue management. 

PROGRAM OVERVIEW 

The General Support Services subactivity includes funding for shared activities and related support 

services for the entire Bureau. These include expenses such as: 

 Rental and security of office space 

 Workers’ compensation and unemployment compensation 

 Voice and Data Communications 

 The Department’s Working Capital Fund (WCF) 

 Annual building maintenance contracts 

 Mail services 

 Printing costs 

Bureau of Ocean Energy Management, Regulation and Enforcement 137 
 

General Administration 

The two major program objectives are to provide safe and secure facilities that will contribute to 

the productivity and efficiency of the employees in achieving goals and objectives, and to provide 

appropriate services in support of BOEMRE operating programs. 

138 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

Appendix A 

Appendix A: Justification of Fixed Costs and Related Changes ($000s) 

Additional Operational Costs from 2011 and 2012 January Pay Raises: 

2010 

Enacted 

2010 

Enacted/ 

2011 CR 

2012 

Change 

1. 2010 Pay Raise, 3 Qtrs. in FY2010 Budget (2.0%) +2,459 n/a n/a 

2. 2009 Pay Raise, 1 Qtr. (3.9%) +1,598 n/a n/a 

3. 2010 Pay Raise, 1 Qtr (2.0%) n/a n/a 

[+836] 

n/a 

4. 2011 Pay Raise, 3 Qtrs. in FY2011 Budget (0%) n/a 0 n/a 

5. 2011 Pay Raise, 1 Qtr (0%) n/a 0 0 

6. 2012 Pay Raise (0%) n/a n/a 0 

7. Non-Foreign Area COLA Adjustment n/a +180 +180 

These adjustments are for an additional amount needed to fund estimated pay raises for Federal 

employees. 

Lines 1 and 2, 2010 pay raise estimates provided as a point of reference. 

Line 3 Is the amount absorbed in 2011 to fund the enacted 2.0% January 2010 pay raise from 

October through December 2010. 

Lines 4 and 5, 2011 pay raise is shown as “0” to reflect the first year of the Administrationdirected 2-year pay freeze at the 2010 level. 

Line 6 is shown as “0” to reflect the second year of the Administration-directed 2-year pay freeze 

at the 2010 level. 

Other Fixed Cost Changes: 

The FY 2010 Enacted column includes the estimates of each cost for 2010, a total of $6,520,000, 

all of which was budgeted for in FY 2010. This column provides a point of reference for the 

subcommittees for the order of magnitude of typical fixed cost items. The Administrationdirected 2-year pay freeze significantly reduces the fixed cost estimate for FY 2012. 

Bureau of Ocean Energy Management, Regulation and Enforcement 139 
 

 

Appendix A 

FY 2010 

Budget 

FY 2010 

Enacted/ 

2011 CR 

FY 2012 

Change 

More or Less Pay Days Than Previous Year 

Amount Absorbed 

n/a n/a -456 

[0] 

This adjustment reflects the decreased costs resulting from the fact that there is one less pay day 

in calendar year 2012 than 2011. 

FY 2010 

Budget 

FY 2010 

Enacted/ 

2011 CR 

FY 2012 

Change 

Employer Share of Federal Health Benefit Plans 

Amount Absorbed 

+628 

[0] 

0 

[+685] 

+472 

[0] 

The adjustment is for changes in the Federal Government’s share of the cost of health insurance 

coverage for Federal employees. For 2010, the increase was estimated at 6.5%. For 2012, the 

increase is estimated at 6.8%. 

FY 2010 

Budget 

FY 2010 

Enacted/ 

2011 CR 

FY 2012 

Change 

Workers Compensation Payments 

Amount Absorbed 

-61 

[0] 

0 

[+21] 

+323 

[0] 

Reflects changes in the costs of compensating injured employees and dependents of employees 

who suffer accidental deaths while on duty. Costs for 2012 will reimburse the Department of 

Labor, Federal Employees Compensation Fund, pursuant to 5 U.S.C. 8147(b) as amended by 

Public Law 94-273. 

FY 2010 

Budget 

FY 2010 

Enacted/ 

2011 CR 

FY 2012 

Change 

Unemployment Compensation Payments 

Amount Absorbed 

+12 

[0] 

0 

[+12] 

0 

[0] 

The adjustment is for estimated changes in the costs of unemployment compensation claims to 

be paid to the Department of Labor, Federal Employees Compensation Account, in the 

Unemployment Trust Fund, pursuant to Public Law 96-499. 

140 Bureau of Ocean Energy Management, Regulation and Enforcement 
Appendix A 

FY 2010 

Budget 

FY 2010 

Enacted/ 

2011 CR 

FY 2012 

Change 

Working Capital Fund 

Amount Absorbed 

+$438 

[0] 

[-16] -165 

[0] 

The change reflects expected changes in the charges for centrally billed Department services and 

other services through the Working Capital Fund. These charges are displayed in the Budget 

Justification for Department Management. 

FY 2010 

Budget 

FY 2010 

Enacted/ 

2011 CR 

FY 2012 

Change 

Rental Payments to GSA and Others 

Amount Absorbed 

+1,446 

[0] 

0 

[+706] 

+854 

[0] 

This adjustment is for changes in costs payable to General Services Administration and others 

resulting from changes in rates for office and non-office space as estimated by GSA, as well as 

the rental costs of other currently occupied space. These costs include building security; in the 

case of GSA space, these are paid to DHS. Costs of mandatory office relocations, i.e., 

relocations in cases where due to external events there is no alternative but to vacate the 

currently occupied space, are also included. 

Total, Fixed Costs and Related Changes – Budgeted in FY 2012 $1,192 

Total, Fixed Costs and Related Changes – Absorbed in FY 2012 [0] 

Bureau of Ocean Energy Management, Regulation and Enforcement 141 
 

Appendix A 

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142 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

Appendix B 

FY 2012 Appropriations Language 

Bureau of Ocean Energy Management, Regulation and Enforcement 

[formerly Minerals Management Service] 

Note: Brackets indicate the language will be deleted; italics represent new language. 

Ocean Energy Management (OEM) 

Formerly Royalty and Offshore Minerals Management (ROMM) 

For expenses necessary for minerals leasing and environmental studies and regulation of 

industry operations, as authorized by law; for enforcing laws and regulations applicable to oil, 

gas, and other minerals leases, permits, licenses and operating contracts; for energy-related or 

other authorized marine-related purposes on the Outer Continental Shelf; and for matching 

grants or cooperative agreements, $118,265,000, to remain available until September 30, 2013; 

and an amount not to exceed $160,163,000, to be credited to this appropriation and to remain 

available until expended, from additions to receipts resulting from increases to rates in effect on 

August 5, 1993, and from cost recovery fees: Provided, That notwithstanding 31 U.S.C. 3302, in 

fiscal year 2012, such amounts as are assessed under 31 U.S.C. 9701 shall be collected and 

credited to this account and shall be available until expended for necessary expenses: 

Provided further, That to the extent $160,163,000 in addition to receipts are not realized from 

the sources of receipts stated above, the amount needed to reach $160,163,000 shall be credited 

to this appropriation from receipts resulting from rental rates for Outer Continental Shelf leases 

in effect before August 5, 1993: Provided further, That for fiscal year 2012 and each fiscal year 

thereafter, the term "qualified Outer Continental Shelf revenues'', as defined in section 102(9)(A) 

of the Gulf of Mexico Energy Security Act, division C of Public Law 109–432, shall include only 

the portion of rental revenues that would have been collected at the rental rates in effect before 

August 5, 1993: Provided further, That not to exceed $3,000 shall be available for reasonable 

expenses related to promoting volunteer beach and marine cleanup activities. 

 For an additional amount, $65,000,000, to remain available until expended, which shall be 

derived from non-refundable inspection fees collected in fiscal year 2012, as provided in this 

Act: Provided, That to the extent that such amounts are not realized from such fees, the amount 

needed to reach $65,000,000 shall be credited to this appropriation from receipts resulting from 

rental rates for Outer Continental Shelf leases in effect before August 5, 1993. 

Note: A full year appropriation for this account was not enacted at the time the budget was 

prepared; therefore, this account is operating under a continuing resolution (P.L. 111-242, as 

amended). The amounts included for 2011 reflect the annualized level provided by the 

continuing resolution. 

Oil Spill Research 

For necessary expenses to carry out title I, section 1016, title IV, sections 4202 and 4303, title 

VII, and title VIII, section 8201 of the Oil Pollution Act of 1990, $14,923,000, which shall be 

derived from the Oil Spill Liability Trust Fund, to remain available until expended. 

Bureau of Ocean Energy Management, Regulation and Enforcement 143 
 

Appendix B 

Note: A full year appropriation for this account was not enacted at the time the budget was 

prepared; therefore, this account is operating under a continuing resolution (P.L. 111-242, as 

amended). The amounts included for 2011 reflect the annualized level provided by the 

continuing resolution. 

Justification of Proposed FY 2012 Appropriation Language Changes 

Outer Continental Shelf Inspection Fees 

The FY 2012 budget includes an extension of existing fees on fixed above-water oil and gas 

facilities and a new fee on drilling rigs. The text of these provisions is contained in the 

Department of the Interior’s General Provisions and reproduced below: 

SEC. 109. (a) In fiscal year 2012, the Secretary shall collect non-refundable inspection fees, 

which shall be deposited in the "Ocean Energy Management" account, from the designated 

operator for facilities subject to inspection under 43 U.S.C. 1348(c). 

(b) Annual fees shall be collected for facilities that are above the waterline, 

excluding drilling rigs, and are in place at the start of the fiscal 

year. Fees for fiscal year 2012 shall be: 

(1) $10,500 for facilities with no wells, but with processing equipment 

or gathering lines; 

(2) $17,000 for facilities with one to ten wells, with any combination 

of active or inactive wells; and 

(3) $31,500 for facilities with more than ten wells, with any combination 

of active or inactive wells. 

(c) Fees for drilling rigs shall be assessed for all inspections completed 

in fiscal year 2012. Fees for fiscal year 2012 shall be: 

(1) $30,500 per inspection for rigs operating in water depths of 500 

feet or more; and 

(2) $16,700 per inspection for rigs operating in water depths of less 

than 500 feet. 

(d) The Secretary shall bill designated operators under subsection (b) 

within 60 days, with payment required within 30 days of billing. The 

Secretary shall bill designated operators under subsection (c) within 30 

days of the end of the month in which the inspection occurred, with 

payment required within 30 days of billing. 

Reorganization 

Per Secretarial Order 3329, issued on May 19, 2010, the Minerals Management Service (MMS) 

is being reorganized into three strong, independent entities with clearly defined roles and 

missions. The Office of Natural Resources Revenue (ONRR), formerly the Minerals Revenue 

Management (MRM) program within MMS was transferred to the Assistant Secretary, Policy, 

Management, and Budget on October 1, 2010. The proposed FY 2012 appropriations language 

deletes sections pertaining to ONRR. 

144 Bureau of Ocean Energy Management, Regulation and Enforcement 
Appendix B 

Making Permanent the Technical Correction of Gulf of Mexico Energy Security Act 

Revenue Sharing. 

The technical correction, first enacted in FY 2009, allows MMS to continue to utilize eligible 

rental receipts as offsetting collections which have provided a key portion of the Bureau’s 

operating budget since FY 1995. The intent of the proposed change is to make this correction 

permanent rather than require that it be included in the appropriation each year. 

Bureau of Ocean Energy Management, Regulation and Enforcement 145 
 

Appendix B 

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146 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

 

Appendix C 

Appendix C: BOEMRE Authorizing Statutes 

Outer Continental Shelf (OCS) Lands Program 

43 U.S.C. 1331, et seq.

P.L. 109-432 

P.L. 109-58 

43 U.S.C. 4321, 4331-4335, 

4341-4347 

16 U.S.C. 1451, et seq. 

16 U.S.C. 1531-1543 

42 U.S.C. 7401, et seq. 

The Outer Continental Shelf (OCS) Lands Act of 1953, as 

amended, extended the jurisdiction of the United States to 

the OCS and provided for granting of leases to develop 

offshore energy and minerals. 

The Gulf of Mexico Energy Security Act of 2006 required 

leasing certain areas in the Central and Eastern Gulf of 

Mexico Planning Areas within one year of enactment 

(December 20, 2006); and established a moratoria on 

leasing in remaining areas in the eastern planning area and 

a portion of the central planning area until 2022. 

The Energy Policy Act of 2005 amended the OCS Lands 

Act to give authority to the Department of the Interior to 

coordinate the development of an alternative energy 

program on the OCS and also to coordinate the energy and 

non-energy related uses in areas of the OCS where 

traditional oil and natural gas development already occur. 

The National Environmental Policy Act of 1969 required 

that federal agencies consider in their decisions the 

environmental effects of proposed activities and that 

Agencies prepare environmental impact statements for 

Federal actions having a significant effect on the 

environment. 

The Coastal Zone Management Act of 1972, as amended, 

established goals for ensuring that Federal and industry 

activity in the coastal zone be consistent with coastal zone 

plans set by the States. 

The Endangered Species Act of 1973 established 

procedures to ensure interagency cooperation and 

consultations to protect endangered and threatened species. 

The Clean Air Act, as amended, was applied to all areas of 

the OCS except the central and western Gulf of Mexico. 

OCS activities in those non-excepted areas will require 

pollutant emission permits administered by the EPA or the 

States. 

Bureau of Ocean Energy Management, Regulation and Enforcement 147 
 

 

 

 

 

 

 

Appendix C 

16 U.S.C. 470-470W6 

30 U.S.C. 21(a) 

30 U.S.C. 1601 

33 U.S.C. 2701, et seq. 

43 U.S.C. 1301 

16 U.S.C. 1361-1362, 

1371-1384, 1401-1407 

P.L. 104-58 

General Administration 

31 U.S.C. 65 

31 U.S.C. 3901-3906 

31 U.S.C. 3512 

The National Historic Preservation Act established 

procedures to ensure protection of significant 

archaeological resources. 

The Mining and Minerals Policy Act of 1970 set forth the 

continuing policy of the Federal Government to foster and 

encourage private enterprise in the orderly and economic 

development of domestic mineral resources and reserves. 

The Policy, Research and Development Act of 1970 set 

forth the continuing policy et seq. of the Federal 

Government to foster and encourage private enterprise in 

the orderly and economic development of domestic mineral 

resources and reserves. 

The Oil Pollution Act of 1990 established a fund for 

compensation of damages resulting from oil pollution and 

provided for interagency coordination and for the 

performance of oil spill prevention and response research. 

It also expanded coverage of Federal requirements for oil 

spill response planning to include State waters and the 

transportation of oil. The Act also addressed other related 

regulatory issues. 

The Marine Protection, Research, and Sanctuaries Act of 

1972 provided that the Secretary of Commerce must 

consult with the Secretary of the Interior prior to 

designating marine sanctuaries. BOEMRE provides 

information and comments regarding the mineral resource 

potential in areas being considered for designation as 

marine sanctuaries. 

The Marine Mammal Protection Act of 1972 provides for 

the protection and welfare of marine mammals. 

The Deepwater Royalty Relief Act provides royalty rate 

relief for offshore drilling in deepwater of the Gulf of 

Mexico (GOM). 

Budget and Accounting Procedures Act of 1950 

Prompt Payment Act of 1982 

Federal Managers Financial Integrity Act of 1982 

 148 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix C 

5 U.S.C. 552 

31 U.S.C. 7501-7507 

41 U.S.C. 35045 

41 U.S.C. 351-357 

41 U.S.C. 601-613 

44 U.S.C. 35 

44 U.S.C. 2101 

40 U.S.C. 4868 

31 U.S.C. 3501 

31 U.S.C. 3501 

31 U.S.C. 3711, 3716-19 

31 U.S.C. 1501-1557 

5 U.S.C. 1104 et seq. 

31 U.S.C. 665-665(a) 

41 U.S.C. 252 

18 U.S.C. 1001 

18 U.S.C. 287 

41 U.S.C. 501-509 

41 U.S.C. 253 

41 U.S.C. 401 

15 U.S.C. 631 

15 U.S.C. 637 

Freedom of Information Act of 1966, as amended 

Single Audit Act of 1984 

Walsh Healy Public Contracts Act of 1936 

Service Contract Act of 1965 

Contract Disputes Act of 1978 

Paperwork Reduction Act of 1980 

Federal Records Act 1950 

Federal Acquisition Regulation of 1984 

Privacy Act of 1974 

Accounting and Collection 

Claims 

Appropriation Accounting 

Delegation of Personnel Management Authority 

Anti-Deficiency Act of 1905, as amended 

Competition in Contracting Act of 1984 

False Claims Act of 1982 

False Statements Act of 1962 

Federal Grant and Cooperative Agreement Act of 1977 

Federal Property and Administrative Services Act of 1949 

Office of Federal Procurement Policy Act of 1974, as 

amended 

Small Business Act of 1953, as amended 

Small Business Act Amendments of 1978 

Bureau of Ocean Energy Management, Regulation and Enforcement 149 
 

 

Appendix C 

10 U.S.C. 137 

15 U.S.C. 638 

10 U.S.C. 2306(f) 

Secretarial Order No. 3071 

Secretarial Order No. 3299, 

Amendment No. 1 

Secretarial Order No. 3304 

Oil Spill Research 

33 U.S.C. 2701, et seq. 

33 U.S.C. 2701, et seq. 

43 U.S.C. 1331, et seq. 

Executive Order 12777 

Small Business and Federal Competition Enhancement Act 

of 1984 

Small Business Innovation Research Program of 1983 

Truth in Negotiations Act of 1962 Authorization 

Established the Minerals Management Service in January 

1982, under authority provided by Section 2 of 

Reorganization Plan No. 3 of 1950 (64 Stat. 1262). 

Establishment of the Bureau of Ocean Energy 

Management (BOEM), the Bureau of Safety and 

Environmental Enforcement (BSEE), and the Office of 

Natural Resources Revenue (ONRR) in accordance with 

the authority provided by Section 2 of the Reorganization 

Plan No. 3 of 1950 (64 Stat. 1262). 

Establishment of the Investigations and Review Unit (IRU) 

within the Bureau of Ocean Energy Management, 

Regulation and Enforcement in accordance with the 

authority provided by Section 2 of the Reorganization Plan 

No. 3 of 1950 (64 Stat. 1262), as amended. 

Title VII of the Oil Pollution Act of 1990 authorizes the use 

of the Oil Spill Liability Trust fund, established by Section 

9505 of the Internal Revenue Code of 1986, for oil spill 

research. 

Title I, Section 1016, of the Oil Pollution Act of 1990 

requires a certification process which ensures that each 

responsible company, with respect to an offshore facility, 

has established, and maintains, evidence of financial 

responsibility in the amount of at least $150,000,000 to 

meet potential pollution liability. 

Section 21(b) of the Outer Continental Shelf Lands Act, as 

amended, requires the use of the best available and safety 

technologies (BAST) and assurance that the use of up-todate technology is incorporated into the regulatory process. 

Signed October 18, 1991, assigned the responsibility to 

ensure oil spill financial responsibility for OCS facilities to 

 150 Bureau of Ocean Energy Management, Regulation and Enforcement 
Appendix C 

the Secretary of the Interior (Bureau of Ocean Energy 

Management, Regulation and Enforcement). 

Bureau of Ocean Energy Management, Regulation and Enforcement 151 
 

Appendix C 

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 152 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MAX Tables - Appendix D 

Bureau of Ocean Energy Management, Regulation and Enforcement 

Ocean Energy Management (OEM) 

Program and Financing 

(dollars in millions) 

Treasury Account ID: 14-1917 

FY 2010 FY 2011 FY 2012 

Obligations by program activity 

Direct program 

0001 OCS Lands 92 105 78 

0002 Minerals Revenue Management (ONRR in 2012) 45 56 0 

0003 General Administration 38 40 40 

0091 Total direct program 175 201 118 

Obligations by program activity 

Reimbursable program 

0801 OCS Revenue Receipts 180 232 259 

0802 Reimbursable (RIK) (ONRR in 2012) 20 20 0 

0803 Reimbursable (from other agencies) 8 8 8 

0899 Total reimbursable program 208 260 267 

0900 Total new obligations 383 461 385 

Budgetary resources available for obligation 

1000 Unobligated balance brought forward 63 75 50 

1021 Resources available from recoveries 15 14 14 

1900 Budget Authority 380 422 366 

1930 Total budgetary resources available 458 511 430 

3030 Obligations incurred, unexpired accounts -383 -461 -385 

1941 Unobligated balance carried forward, end of year 75 50 45 

New budget authority (gross), Discretionary 

1100 Appropriation 175 200 118 

1121 Appropriations transferred from other accounts 9 0 0 

1131 Appropriations permanently reduced 0 -25 0 

1160 Appropriation, discretionary (total) 184 175 118 

Net budget authority and outlays 

4180 Budget authority, net (total) 184 175 118 

4190 Outlays, net (total) 161 249 107 

Bureau of Ocean Energy Management, Regulation and Enforcement 153 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

MAX Tables - Appendix D 

Bureau of Ocean Energy Management, Regulation and Enforcement 

Ocean Energy Management (OEM) 

Object Classification 

(dollars in millions) 

Treasury Account ID: 14-1917 

FY 2010 FY 2011 FY 2012 

OEM (Annual Appropriation & Offsetting Collections) 

11.1 Personnel Compensation: Full-time permanent 134 138 121 

12.1 Civilian personnel benefits 33 33 20 

21.0 Travel and transportation of persons 4 4 4 

23.1 Rental Payments to GSA 18 18 18 

23.3 Communications, utilities, and misc. charges 1 1 1 

25.2 Other services 150 169 186 

26.0 Supplies and materials 2 2 2 

31.0 Equipment 6 6 6 

99.0 Total OEM * 348 371 358 

*Note: The total on Line 99.0 matches the Total Appropriation and Offsetting Collections on the table below, 

both of which roughly project in which categories funds may be allocated, obligated, and expended (outlay). 

Numbers for FY 2012 exclude what was formerly the MRM Program that was transferred from BOEMRE. 

Bureau of Ocean Energy Management, Regulation and Enforcement 

Ocean Energy Management (OEM) 

Account Object Class Information 

 (dollars in millions) 

Treasury Account ID: 14-1917 

FY 2010 Enacted/ 

FY 2011 CR 

Fixed Costs 

Changes 

Programmatic & 

Reorganization 

Changes 

FY 2012 

Object Class FTE AMT FTE AMT FTE AMT FTE AMT 

Total Appropriation 

And Offsetting Collections 

*1,703 *$371 --- 0 -302 -$13 *1,412 *$358 

Total personnel compensation 

and personnel benefits 

--- $171 --- 0 --- -$30 --- $141 

Travel and transportation of 

persons 

--- $4 --- 0 --- 0 --- $4 

Rents --- $18 --- 0 --- 0 --- $18 

Communications utilities, and 

misc. charges 

--- $1 --- 0 --- 0 --- $1 

Other services --- $169 --- 0 --- +$17 --- $186 

Supplies and materials --- $2 --- 0 --- 0 --- $2 

Equipment --- $6 --- 0 --- 0 --- $6 

*FY 2010 Total FTE is 1703 (1661 for OEM + 18 for Oil Spill +24 for CIAP) 

*FY 2012 Total FTE is 1412 (1390 for OEM + 22 for Oil Spill) 

Royalty Offshore Minerals Management (ROMM) renamed Ocean Energy Management (OEM) in FY 2012 

 Bureau of Ocean Energy Management, Regulation and Enforcement 154 
 

 

 

 

 

 

 

 

 

MAX Tables - Appendix D 

Bureau of Ocean Energy Management, Regulation and Enforcement 

Oil Spill Research (OSR) 

Program and Financing 

(dollars in millions) 

Treasury Account ID: 14-8370 

FY 2010 FY 2011 FY 2012 

Obligations by program activity 

0001 Direct program activity 6 6 15 

0900 Total new obligations 6 6 15 

Budgetary resources available for obligation 

1900 Budget Authority 6 6 15 

Net budget authority and outlays 

4180 Budget authority, net (total) 6 6 15 

4190 Outlays, net (total) 6 6 15 

Treasury Account ID: 14-8370 

Minerals Management Service 

Oil Spill Research (OCS) 

Object Classification 

(dollars in millions) 

FY 2010 FY 2011 FY 2012 

Direct obligations 

11.1 Full-time permanent 2 2 2 

25.2 Other services 4 4 13 

99.9 Total new obligations 6 6 15 

Minerals Management Service 

Oil Spill Research (OSR) 

Account Object Class Information 

 (dollars in millions) 

Treasury Account ID: 14-8370 

FY 2010 Enacted/ 

FY 2011 CR 

Uncontrollable & 

Related Changes 

Programmatic 

Changes 

FY 2012 

Budget Request 

Object Class FTE AMT FTE AMT FTE AMT FTE AMT 

Total Appropriation 18 $6 --- 0 --- 0 18 $15 

Total personnel 

compensation 

--- $2 --- 0 --- 0 --- $2 

Other services --- $4 --- 0 --- $9 --- $13 

Bureau of Ocean Energy Management, Regulation and Enforcement 155 
 

MAX Tables - Appendix D 

This section is currently under development. 

 Bureau of Ocean Energy Management, Regulation and Enforcement 156 
 

 

Appendix E 

Bureau of Ocean Energy Management, Regulation and Enforcement 

Appendix E: Employee Count by Grade 

FY 2010 FY 2011 FY 2012 

Executive Level 16 16 15 

GS-15 74 74 59 

GS-14 248 248 210 

GS-13 477 481 410 

GS-12 417 421 354 

GS-11 162 165 133 

GS-10 8 8 3 

GS-9 100 100 89 

GS-8 56 56 44 

GS-7 92 92 74 

GS-6 48 48 44 

GS-5 39 39 30 

GS-4 10 10 10 

GS-3 2 2 2 

GS-2 0 0 0 

GS-1 0 0 0 

Subtotal 1,749 1,744 1,477 

Less ONRR -588 

Total BOEMRE 1,749 1,156 1,477 

Note: The numbers in this table represent the actual number of employees by grade 

level as of the end of the prior fiscal year and projected for the current and budget 

fiscal years. ONRR (formerly the Minerals Revenue Management program) was 

transferred to the Office of the Secretary on October 1, 2010. These numbers differ 

from FTE calculations, because by definition, FTE numbers represent Full-Time 

Equivalent employees. FTE calculations are based on hours worked. . 

Bureau of Ocean Energy Management, Regulation and Enforcement 157 
 

Appendix E 

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158 Bureau of Ocean Energy Management, Regulation and Enforcement 
 

 

Appendix F 

Appendix F 

Bureau of Ocean Energy Management, Regulation and Enforcement 

FY 2012 Mandatory Accounts and Offsetting Collections 

Appropriation Proposals 

GOMESA Technical Correction on 

Revenue Sharing 

First enacted in FY 2009, this technical 

correction of the Gulf of Mexico Energy 

Security Act allows BOEMRE to continue 

to utilize eligible rental receipts as 

offsetting collections. The FY 2012 

President’s Budget proposes language to 

make this correction permanent, rather than 

requiring the change be made annually. 

Authorizing 

Fee on Non-producing Leases The Budget assumes a proposal that is part 

of an Administration initiative to encourage 

energy development on lands and waters 

leased for development. A $4.00 per acre 

fee on non-producing Federal leases on 

lands and waters would provide a financial 

incentive for oil and gas companies to 

either get their leases into production or 

relinquish them so that the tracts can be 

released to and developed by new parties. 

The proposed $4.00 per acre fee would 

apply to all new leases and would be 

indexed annually to inflation. In October 

2008, the Government Accountability 

Office issued a report critical of past efforts 

by the Department of the Interior to ensure 

that companies diligently develop their 

Federal leases. Although the GAO Report 

focused on administrative actions that the 

Department could undertake, this proposal 

requires legislative action. This proposal is 

similar to other non-producing fee 

proposals considered by the Congress in 

the last several years. This fee is estimated 

to generate revenues to the Treasury of 

$25.0 million in 2012 and $874.0 million 

over ten years. 

Repeal Deep Gas Royalty Incentives The Budget proposes to repeal Section 344 

of the Energy Policy Act of 2005. Section 

344 extended existing deep gas royalty 

Bureau of Ocean Energy Management, Regulation and Enforcement 159 
 

relief. Based upon current natural gas price 

projections, the budget does not assume 

savings from this change; however, the 

proposal could generate savings to the 

Treasury if future natural gas prices fall 

below current projections to levels at or 

under the applicable gas price thresholds. 

160 Bureau of Ocean Energy Management, Regulation and Enforcement 
Appendix G 

Bureau of Ocean Energy Management, Regulation & Enforcement 

2012 Working Capital Fund Centralized Bill 

(Dollars in thousands) 

2011 

2010 Pres 2011 2012 

Account Actual Budget Estimate Estimate 

Document Management Unit 0.0 0.0 0.0 5.1 

Alaska Field Office 12.4 12.4 12.4 12.5 

Alaska Resources Library and Information Services 73.1 73.1 73.1 73.1 

Departmental News and Information 19.7 19.7 19.7 21.1 

Departmental Museum 44.5 44.5 44.5 47.0 

FedCenter 2.7 2.7 2.7 2.7 

Invasive Species Coordinator 6.4 6.4 6.4 6.4 

Invasive Species Council 37.8 37.8 37.8 35.7 

CPIC 4.6 4.6 4.6 4.3 

Activity based Costing/Management 24.6 24.6 24.6 26.4 

Travel Management Center 2.0 2.0 2.0 2.0 

e-Gov Travel 8.6 8.6 8.6 8.6 

Interior Collections Management System 2.5 2.5 2.5 2.2 

Space Management Initiative 8.1 8.1 8.1 8.4 

SBA Certifications 11.2 11.2 11.2 0.0 

Planning and Performance Management 30.3 30.3 30.3 28.3 

DOI Access 4.9 4.9 14.6 31.6 

Department-wide OWCP Coordination 7.6 7.6 7.6 7.5 

Accountability Team 12.0 12.0 12.0 12.4 

Employee and Labor Relations Tracking System 0.7 0.7 0.7 0.7 

DOI Learn 22.0 41.8 41.8 37.7 

OPM Federal Employment Services 11.9 11.9 11.9 10.3 

EEO Complaints Tracking System 0.8 0.8 0.8 1.5 

Special Emphasis Program 1.2 1.2 1.2 1.3 

Accessible Technology Center 7.6 7.6 7.6 8.2 

Occupational Health and Safety 36.3 37.0 35.2 41.4 

Health and Safety Training Initiatives 4.2 3.5 3.5 0.0 

Safety Management Information System 0.0 0.0 30.5 32.7 

DOIU Management 0.0 29.3 14.2 

DOI Executive Forums 2.9 2.9 2.9 3.1 

Online Learning 12.8 12.8 11.7 12.5 

Learning and Performance Center Management 16.4 16.4 14.0 10.4 

Albuquerque Learning & Performance Center 3.6 3.6 3.3 2.8 

Anchorage Learning & Performance Center 15.6 15.6 13.8 8.6 

Denver Learning & Performance Center 70.8 70.8 60.3 53.3 

Washington Learning & Performance Center 54.8 54.8 47.8 29.7 

Financial Management Training 33.9 33.9 28.5 0.0 

SESCDP & Other Leadership Programs 4.7 4.7 4.0 4.3 

Security (Classified Information Facility) 10.9 10.9 10.9 11.7 

Law Enforcement Coordination and Training 20.9 20.9 20.9 22.4 

Victim Witness 0.0 3.9 3.9 4.1 

Security (MIB/SIB Complex) 288.5 288.5 283.3 355.9 

Interior Operations Center (Watch Office) 46.7 48.6 48.6 54.4 

Bureau of Ocean Energy Management, Regulation and Enforcement 161 
 

Appendix G 

Bureau of Ocean Energy Management, Regulation & Enforcement 

2012 Working Capital Fund Centralized Bill 

(Dollars in thousands) 

2011 

2010 Pres 2011 2012 

Account Actual Budget Estimate Estimate 

Emergency Preparedness 16.7 18.7 18.7 20.5 

Emergency Response 20.9 26.7 26.7 28.6 

MIB Health and Safety 0.0 5.1 5.8 

Enterprise Services Network 478.9 525.6 525.6 457.9 

Federal Relay Service 0.0 0.9 0.9 

Web & Internal/External Comm 10.9 10.9 10.9 11.7 

Unified Messaging 0.0 0.0 47.6 

Enterprise Architecture 106.5 112.2 112.2 91.4 

FOIA Tracking & Reporting System 45.4 51.9 51.9 39.6 

Threat Management 18.2 18.2 18.2 22.2 

IT Security 65.1 73.6 73.6 59.6 

Capital Planning 54.2 54.2 54.2 44.1 

Privacy (Information Management Support) 6.8 18.9 18.9 17.7 

Data Resource management Program 5.6 0.0 0.0 0.0 

IT Security Certification & Accreditation 125.3 125.3 125.3 125.3 

Electronic Records Management 27.7 27.7 27.7 20.2 

Active Directory 35.9 49.1 49.1 82.3 

Enterprise Resource management 12.5 12.5 12.5 11.7 

e-Authentication 8.5 0.0 0.0 0.0 

IOS Collaboration 24.3 24.3 24.3 22.8 

Networx 34.6 0.0 0.0 0.0 

Trusted Internet Connection 28.4 0.0 0.0 0.0 

Data at Rest 1.0 1.0 1.0 1.6 

Logging Extracts 9.0 9.0 0.0 0.0 

OCIO Project Management Office 25.9 25.9 25.9 20.1 

IT Asset Management 8.9 8.9 8.9 8.3 

Two-Factor Authentication 1.8 0.0 0.0 0.0 

Active Directory Optimization 19.0 0.0 0.0 0.0 

Alternative Dispute Resolution Training 1.2 1.2 1.2 1.3 

Conservation and Education Partnerships 6.3 6.3 6.3 6.8 

Contingency Reserve 3.7 3.7 3.7 3.9 

Cooperative Ecosystem Study Units 0.0 0.0 10.0 

CFO Financial Statement Audit 1,325.7 1,325.7 1,325.7 1,325.7 

Enterprise Geospatial Information Management 15.7 15.7 15.7 0.0 

e-Government Initiatives (WCF Contributions Only) 107.1 107.1 107.1 89.5 

Ethics 14.4 14.4 14.4 15.5 

ALLEX Database 3.6 3.6 3.6 0.0 

FOIA Appeals 33.9 33.9 33.9 28.5 

NBC IT Security Improvement Plan 21.7 21.7 21.7 18.5 

Information Mgmt - FOIA and Records 

Management 12.2 12.3 12.3 12.2 

Safety Management Information System 37.8 38.0 0.0 0.0 

Telecommunication Services 94.7 95.0 95.0 95.0 

Integrated Digital Voice Communications System 79.9 80.2 80.2 45.8 

Desktop Services 11.7 11.7 11.7 11.7 

162 Bureau of Ocean Energy Management, Regulation and Enforcement 
Appendix G 

Bureau of Ocean Energy Management, Regulation & Enforcement 

2012 Working Capital Fund Centralized Bill 

(Dollars in thousands) 

Account 

Audio Visual Services 

SIB Cabling O&M 

Voice/Data Switching 

FPPS/Employee Express - O&M 

HRMS (HR LOB W-2 Surcharge 

Interior Complex Management & Services 

Family Support Room 

Property Accountability Services 

Vehicle Fleet 

Moving Services 

Shipping and Receiving 

Safety and Environmental Services 

Space Management 

Federal Executive Board 

Health Unit 

Passport & Visa Services 

Mail & Messenger Services 

Mail Policy 

Special Events Services 

Cultural Resources & Events Management 

Partnership Schools & Commemorative Programs 

Departmental Library 

FBMS Hosting / Applications Management 

FBMS Master Data Management 

Transportation Services (Household Goods) 

Consolidated Financial Statement System 

Financial Systems 

IDEAS 

FBMS Redirect - IDEAS 

NBC FBMS Conversion 

Aviation Management System - O&M 

Aviation Management 

TOTAL 1/ 

2010 

Actual 

15.3 

2.7 

21.6 

361.9 

14.9 

53.5 

1.4 

30.4 

4.8 

11.4 

15.7 

23.0 

13.3 

6.9 

13.6 

22.1 

79.9 

8.5 

2.9 

8.9 

3.9 

77.3 

477.0 

1.6 

4.2 

0.0 

18.8 

88.6 

0.0 

9.6 

0.0 

489.4 

5,824.8 

2011 

Pres 

Budget 

15.4 

2.7 

21.7 

368.8 

14.9 

45.3 

1.4 

30.5 

4.8 

11.5 

15.8 

23.1 

13.4 

6.9 

13.7 

22.2 

80.2 

8.6 

2.9 

7.5 

3.9 

80.3 

477.0 

1.6 

4.2 

18.9 

89.0 

9.6 

484.0 

5,850.3 

2011 2012 

Estimate Estimate 

15.4 17.4 

2.7 3.1 

21.7 24.5 

368.8 344.4 

14.9 0.0 

45.3 44.9 

1.4 1.6 

30.5 33.6 

4.8 4.8 

11.5 12.7 

15.8 17.8 

23.1 25.4 

13.4 16.9 

6.9 7.2 

13.7 15.4 

22.2 21.4 

80.2 69.4 

8.6 9.0 

2.9 2.8 

7.5 -0.2 

3.9 0.0 

80.3 72.1 

477.0 454.1 

1.6 2.2 

4.2 4.0 

18.9 20.7 

0.0 0.0 

24.1 20.6 

64.9 68.0 

9.6 8.3 

0.0 23.2 

484.0 431.9 

5,842.5 5,637.9 

1/ The Department’s Working Capital Fund billing estimates for the Bureau of Ocean Energy 

Management, Regulation and Enforcement (BOEMRE) include assessments for the Office of 

Natural Resources Revenue (ONRR). The Department will coordinate with BOEMRE to 

segregate these assessments for the 2013 President’s Budget. 

Bureau of Ocean Energy Management, Regulation and Enforcement 163 
 

Appendix G 

Bureau of Ocean Energy Management, Regulation & Enforcement 

2012 Working Capital Fund Direct Bill 

(Dollars in thousands) 

2011 

2010 Pres 2011 2012 

Account Actual Budget Estimate Estimate 

Ocean Coastal Great lakes Activities 9.6 15.4 52.5 52.5 

FBMS Change Orders 25.0 35.4 25.0 

Federal Assistance Award Data System 2.5 2.6 2.7 

DOI Access 66.0 48.2 80.1 

e-OPF 396.7 0.0 34.0 

EEO Training 0.0 0.6 0.6 

Albuquerque Learning & Performance Center 0.0 0.0 2.2 

Anchorage Learning & Performance Center 0.8 1.5 0.3 

Denver Learning & Performance Center 33.1 3.7 15.3 

Washington Leadership & Performance Center 30.9 5.1 15.4 

Online Learning 34.5 30.1 14.8 

Government-Wide Forums 3.8 8.7 8.1 

Unified Messaging 0.0 383.9 383.9 

Enterprise Architecture Services 0.0 0.9 0.0 0.0 

Oracle Licenses and Support 228.1 202.1 208.2 214.4 

Microsoft Enterprise Licenses 3.6 547.8 547.8 547.8 

Anti-Virus Software Licenses 0.4 31.3 31.3 

Enterprise Services Network 349.0 289.6 289.6 

Federal Relay Service 1.2 0.0 0.0 

Data-at-Rest Initiative 6.0 6.0 6.0 

Live e-Mail Capture (Cobell Litigation) 0.0 2.5 0.0 0.0 

Historical Tape Storage (Cobell Litigation) 0.0 6.4 0.0 0.0 

e-Mail Archiving (Cobell Litigation) 297.7 434.7 382.0 439.3 

FY 2011 CFO Audit 0.0 50.5 0.0 

FY 2012 CFO Audit 0.0 0.0 420.3 

Federal FSA Program 0.0 86.4 68.3 73.9 

ESRI Enterprise Licenses 117.1 117.1 117.1 

Creative Communications 25.7 19.1 19.1 

Facilities Reimbursable Services 26.6 15.8 15.7 

Reimbursable Mail Services 2.4 1.6 1.7 

Client Liaison and Product Development Division 5.9 3.0 3.0 

Personnel & Payroll Systems Division 1.2 1.4 1.1 

HR Management Systems Division 93.8 152.3 157.7 

Quicktime Services 69.4 72.3 77.2 

TOTAL 1/ 1,830.8 1,296.2 2,538.6 3,050.3 

1/ The Department’s Working Capital Fund billing estimates for the Bureau of Ocean Energy 

Management, Regulation and Enforcement (BOEMRE) include assessments for the Office of 

Natural Resources Revenue (ONRR). The Department will coordinate with BOEMRE to 

segregate these assessments for the 2013 President’s Budget. 

164 Bureau of Ocean Energy Management, Regulation and Enforcement