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[Federal Register Volume 80, Number 19 (Thursday, January 29, 2015)]
[Notices]
[Pages 4941-4945]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-01757]

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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2014-0096; MAA104000]

Notice of Availability (NOA) of and Request for Comments on the 
Draft Proposed Outer Continental Shelf (OCS) Oil and Gas Leasing 
Program for 2017-2022 (DPP)

AGENCY: Bureau of Ocean Energy Management (BOEM), Interior.

ACTION: Notice of availability and request for comments.

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SUMMARY: BOEM is announcing the availability of and requests comments 
on the Draft Proposed Outer Continental Shelf (OCS) Oil and Gas Leasing 
Program for 2017-2022 (DPP). This draft proposal is for the 2017-2022 
OCS Oil and Gas Leasing Program that will succeed the current 2012-2017 
Program. The DPP provides the basis for gathering information and 
conducting analyses to inform the Secretary of the Interior (Secretary) 
on which areas to include for further leasing consideration in the 
2017-2022 Program.
    Section 18 of the OCS Lands Act (43 U.S.C. 1344) specifies a multi-
step process of consultation and analysis that must be completed before 
the Secretary may approve a new Five-Year Program. The required steps 
following this notice include the development of a Proposed Program 
(PP), Proposed Final Program (PFP), and Secretarial approval. In 
conjunction with this notice, BOEM is publishing a Notice of Intent 
(NOI) to prepare a Programmatic Environmental Impact Statement (PEIS) 
for the 2017-2022 Program, pursuant to the National Environmental 
Policy Act (NEPA).

DATES: Please submit comments and information to BOEM no later than 
March 30, 2015.

FOR FURTHER INFORMATION CONTACT: Ms. Kelly Hammerle, Five-Year Program 
Manager, at (703) 787-1613.

Public Comment Procedure

    BOEM will accept comments in one of two formats: Federal internet 
commenting system or regular mail. BOEM's preference is to receive 
comments via the internet commenting system. Comments should be 
submitted using only one of these formats, and include full names and 
addresses of the individual submitting the comment(s). Comments 
submitted by other means may not be considered. BOEM will not consider 
anonymous comments. BOEM will make available for public inspection all 
comments submitted by organizations and businesses, or by individuals 
identifying themselves as representatives of organizations or 
businesses, subject to the limitations described in this Notice with 
respect to personal information and proprietary/privileged/confidential 
information.
    BOEM's practice is to make comments, including the names and 
addresses of individuals, available for public review. An individual 
commenter may ask that BOEM withhold from the public record his or her 
name, home address, or both, and BOEM will honor such a request to the 
extent allowable by law. If individuals submit comments and desire 
withholding of such information, they must so state prominently at the 
beginning of their submission.
    In order to ensure security and confidentiality of proprietary 
information to the maximum extent possible, BOEM requests that 
proprietary information only be sent by mail. In addition to 
prominently stating that proprietary information is contained in a 
comment at the beginning of the submission, comments should be sent in 
a plain outer envelope with an inner envelope stating that proprietary 
information is contained within.

Commenting via Internet

    Internet comments should be submitted via the Federal eRulemaking 
Portal at http://www.regulations.gov. BOEM requests that commenters 
follow these instructions to submit their comments via this Web site:
    (1) In the search tab on the main page, search for BOEM-2014-0096.
    (2) Locate the document, then click the ``Submit a Comment'' link 
either on the Search Results page or the Document Details page. This 
will display the Web comment form.
    (3) Enter the submitter information and type the comment on the Web 
form. Attach any additional files (up to 10MB). (Please do not provide 
proprietary or confidential comments via the Internet.)
    (4) After typing the comment, click the ``Preview Comment'' link to 
review. Once satisfied with the comment, click the ``Submit'' button to 
send the comment.

[[Page 4942]]

    Information on using regulations.gov, including instructions for 
accessing documents, submitting comments, and viewing the docket after 
the close of the comment period, is available through the site's ``User 
Tips'' link.

Commenting via Regular Mail

    Mail comments and information on the 2017-2022 Program to Ms. Kelly 
Hammerle, Five-Year Program Manager, BOEM (HM-3120), 381 Elden Street, 
Herndon, Virginia 20170. As stated above, if commenters submit any 
privileged or proprietary information to be treated as confidential, in 
addition to prominently stating proprietary information is contained in 
a comment at the beginning of the submission, comments should be sent 
in a plain outer envelope with an inner envelope stating that 
proprietary information is contained within. BOEM will post all 
comments on regulations.gov for public viewing, subject to the 
limitations described in this Notice with respect to personal 
information and proprietary/privileged/confidential information.

SUPPLEMENTARY INFORMATION: BOEM requests comments from states, local 
governments, Federal agencies, Native groups, tribes, the oil and gas 
industry, environmental and other public interest organizations, non-
energy industries, all other interested parties, and the public to 
assist in the continued preparation of the 2017-2022 Program and PEIS. 
The DPP and supplemental information may be viewed on and downloaded 
from the BOEM Web site at www.BOEM.gov/Five-Year-Program-2017-2022. 
Additionally, BOEM has created a Web site for the development of the 
PEIS, which can be found at www.boemoceaninfo.com.

Background

    Section 18 of the OCS Lands Act requires the Secretary to prepare 
and maintain a schedule of proposed OCS oil and gas lease sales 
determined to ``best meet national energy needs for the 5-year period 
following its approval or reapproval.'' This DPP is the first of three 
proposed leasing schedules for OCS lease sales under the 2017-2022 
Program. The areas identified in the DPP were chosen after careful 
consideration of the factors specified in Section 18 of the OCS Lands 
Act and the comments received in response to the Request for 
Information and Comments (RFI) published in the Federal Register on 
June 16, 2014 (79 FR 34349). Inclusion of areas in the DPP lease sale 
schedule provides a basis for gathering information and conducting 
analyses to inform policy makers on whether to include these areas for 
further leasing consideration in the 2017-2022 Program. Only those 
areas and options that the Secretary decides are appropriate to include 
in the DPP will be further analyzed for the PP and the associated Draft 
PEIS. Before the new Program is approved and implemented, BOEM will 
accept and consider comments on the DPP and issue for public review a 
PP, accompanied by a Draft PEIS. After the opportunity for public 
comment on those documents, BOEM will conduct additional analyses and 
subsequently issue a PFP decision document, accompanied by a Final 
PEIS. The PFP and Final PEIS will be submitted to the President and 
Congress at least 60 days prior to Secretarial approval of the 2017-
2022 Program.

Summary of the Draft Proposed Program

    The lease sale options chosen in the DPP consist of 14 potential 
lease sales in eight OCS planning areas: Ten sales in the three Gulf of 
Mexico (GOM) planning areas for the areas not subject to Congressional 
moratorium; one sale each in the Chukchi Sea, Beaufort Sea, and Cook 
Inlet Planning Areas, offshore Alaska; and one sale in a portion of the 
combined Mid-Atlantic and South Atlantic Planning Areas (see Table 1).
    This DPP reflects a continuation of the leasing strategy set forth 
in the current 2012-2017 Program, with additional proposed flexibility 
in the Gulf of Mexico. The schedule is tailored so the dual goals of 
promoting prompt development of the Nation's oil and gas resources with 
the necessary protections for the marine, coastal, and human 
environments can be best achieved for each specific OCS region. This 
region-specific strategy is reflected in the DPP's approach to offshore 
areas across the Nation's OCS, including the current knowledge of 
resource potential, accommodation of regional interests and concerns, 
and the need for a balanced approach to our use of natural resources. 
The options in the DPP involve sales in offshore areas that have the 
highest oil and gas resource values, highest industry interest, or are 
off the coasts of states that expressed interest in learning more about 
the potential for energy exploration off their coasts, while 
recognizing potential environmental impacts, concerns, and competing 
uses of ocean and coastal areas.

                          Table 1--2017-2022 Draft Proposed Program Lease Sale Schedule
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                     Year                                         Planning area                     Sale number
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 1. 2017......................................  Gulf of Mexico Region...........................             249
 2. 2018......................................  Gulf of Mexico Region...........................             250
 3. 2018......................................  Gulf of Mexico Region...........................             251
 4. 2019......................................  Gulf of Mexico Region...........................             252
 5. 2019......................................  Gulf of Mexico Region...........................             253
 6. 2020......................................  Gulf of Mexico Region...........................             254
 7. 2020......................................  Beaufort Sea....................................             255
 8. 2020......................................  Gulf of Mexico Region...........................             256
 9. 2021......................................  Gulf of Mexico Region...........................             257
10. 2021......................................  Cook Inlet......................................             258
11. 2021......................................  Gulf of Mexico Region...........................             259
12. 2021......................................  Mid-Atlantic and South Atlantic.................             260
13. 2022......................................  Gulf of Mexico Region...........................             261
14. 2022......................................  Chukchi Sea.....................................             262
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Gulf of Mexico Region

    The DPP's Gulf of Mexico options identified for further detailed 
analysis in the PP and Draft PEIS include ten region-wide sales: one 
sale each in 2017 and 2022; and two sales each in 2018, 2019, 2020, and 
2021; offering all available unleased acreage not subject to 
Congressional moratorium in the combined Western, Central, and Eastern 
Gulf of Mexico Planning Areas in each sale. See Figure 1. BOEM is 
proposing this change from the traditional separate planning area-wide 
sales to a region-

[[Page 4943]]

wide approach to balance agency workload and provide greater 
flexibility to industry, including the ability to respond to the 
significant recent energy reforms in Mexico that have the potential to 
meaningfully change how exploration and development decisions are made 
in the GOM.

Alaska Region

    In Alaska, the DPP continues to take a balanced approach to 
development by utilizing the targeted leasing strategy set forth in the 
current Program by identifying one sale each in the Beaufort Sea 
(2020), Cook Inlet (2021), and Chukchi Sea (2022) Planning Areas (see 
Figure 2). Potential sales in the three Alaska program areas are 
scheduled late in the five-year period to provide additional 
opportunity to evaluate and obtain information regarding environmental 
issues, subsistence use needs, infrastructure capabilities, and results 
from any exploration activity associated with existing leases.
    A potential Beaufort Sea sale is scheduled in 2020 in a program 
area that excludes the Barrow and Kaktovik whaling deferral areas that 
were excluded in the current Program as well as the 2007-2012 Program. 
The DPP schedules a potential Chukchi Sea sale in 2022 that excludes 
the 25-mile coastal buffer and subsistence deferral areas that were 
also excluded in the current Program. A potential Cook Inlet sale is 
scheduled for 2021 in a program area that includes only the northern 
portion of the Cook Inlet OCS Planning Area. This option balances the 
protection of endangered species, as identified in 2013 in the 2013 
Cook Inlet Lease Sale 244 Area Identification, with the availability 
for leasing of the areas with significant resource potential and 
industry interest.
    On December 16, 2014, the President withdrew, for a time period 
without a specific expiration, the North Aleutian Basin Planning Area 
from further consideration of leasing of oil and gas for the purposes 
of exploration, development, and production. There also will be no 
further leasing consideration in the other 11 Alaska OCS planning areas 
with either negligible resources or negligible resource development 
value. See Figure 2.

Atlantic Region

    In the Atlantic Region, the DPP schedules one lease sale in a 
portion of the Mid-Atlantic and South Atlantic Planning Areas in 2021. 
The DPP proposes one sale late in the Program at least 50 miles 
offshore the coasts of Virginia, North Carolina, South Carolina, and 
Georgia in the Mid-Atlantic and South Atlantic Planning Areas. This 
option allows for consideration of a targeted area with significant 
resource potential, while limiting potential impacts to the environment 
and other uses of the ocean. Scheduling the potential sale late in the 
Program allows time for additional analyses, including the collection 
of additional seismic and environmental information. See Figure 1.

Pacific Region

    No lease sale options have been identified in the Pacific Region 
for additional analysis. The exclusion of the Pacific Region is 
consistent with the long-standing interests of Pacific coast states, as 
framed in the 2006 West Coast Governors Agreement on Ocean Health. This 
agreement expressed the governors' opposition to oil and gas 
development off their coasts, and these states have continued to voice 
concerns, including in formal comments on the RFI.

Assurance of Fair Market Value

    Section 18 of the OCS Lands Act requires receipt of fair market 
value from OCS oil and gas leases. BOEM plans to continue to use the 
two-phase post-sale bid evaluation process that it has used since 1983 
to meet the fair market value requirement. However, BOEM is considering 
a change to the post-sale bid evaluation process [see Federal Register 
Notice, October 17, 2014, (79 FR 62461)]. Further, the DPP provides 
that BOEM may set minimum bid levels, rental rates, and royalty rates 
by individual lease sale based on its assessment of market and resource 
conditions closer to the date of the sale.

Information Requested for the Draft Proposed Program

    We request comments on the size, timing, and location of leasing. 
Respondents who submitted information in response to the June 16, 2014, 
Federal Register Notice, which requested comments on preparing the Five 
Year Program, may wish to refer to that previously submitted 
information, as appropriate, rather than repeat it in their comments on 
the DPP. We also invite comments and suggestions on how to proceed with 
the Section 18 analysis in the Proposed Program.

Next Steps in the Process

    BOEM currently plans to issue the Proposed Program and Draft PEIS 
in 2016, followed by a public comment period.

    Dated: January 7, 2015.
Abigail Ross Hopper,
Director, Bureau of Ocean Energy Management.

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[FR Doc. 2015-01757 Filed 1-28-15; 8:45 am]
BILLING CODE 4310-MR-P
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