Opinion ID: 398884
Heading Depth: 2
Heading Rank: 1

Heading: An overview of section 18.

Text: 21 As is apparent from the foregoing brief summary, the procedures embodied in the 1978 Amendments are pyramidic in structure, proceeding from broad-based planning to an increasingly narrower focus as actual development grows more imminent. The first important step in this process is the one with which we are primarily concerned today-preparation of the five-year leasing program pursuant to section 18. 22 Section 18 establishes a process which will permit the Secretary of Interior to weigh energy potential, and other benefits against environmental and other risks in determining how, when and where oil and gas should be made available from the various Outer Continental Shelf areas to meet national energy needs. 35 It requires the Secretary to prepare, maintain and periodically revise a leasing program consisting of a schedule of proposed sales, indicating, as precisely as possible, the size, timing and location of leasing activity which he determines will best meet national energy needs for the five-year period following its approval or reapproval. 36 The Secretary must prepare and maintain the program consistent with four basic principles:(1) Management of the outer Continental Shelf shall be conducted in a manner which considers economic, social, and environmental values of the renewable and nonrenewable resources contained in the outer Continental Shelf, and the potential impact of oil and gas exploration on other resource values of the outer Continental Shelf and the marine, coastal, and human environments. 23 (2) Timing and location of exploration, development, and production of oil and gas among the oil- and gas-bearing physiographic regions of the outer Continental Shelf shall be based on a consideration of- 24 (A) existing information concerning the geographical, geological, and ecological characteristics of such regions; 25 (B) an equitable sharing of developmental benefits and environmental risks among the various regions; 26 (C) the location of such regions with respect to, and the relative needs of, regional and national energy markets; 27 (D) the location of such regions with respect to other uses of the sea and seabed, including fisheries, navigation, existing or proposed sealanes, potential sites of deepwater ports, and other anticipated uses of the resources and space of the outer Continental Shelf; 28 (E) the interest of potential oil and gas producers in the development of oil and gas resources as indicated by exploration or nomination; 29 (F) laws, goals, and policies of affected States which have been specifically identified by the Governors of such States as relevant matters for the Secretary's consideration; 30 (G) the relative environmental sensitivity and marine productivity of different areas of the outer Continental Shelf; and 31 (H) relevant environmental and predictive information for different areas of the outer Continental Shelf. 32 (3) The Secretary shall select the timing and location of leasing, to the maximum extent practicable, so as to obtain a proper balance between the potential for environmental damage, the potential for the discovery of oil and gas, and the potential for adverse impact on the coastal zone. 33 (4) Leasing activities shall be conducted to assure receipt of fair market value for the lands leased and the rights conveyed by the Federal Government. 37 34 Section 18 also establishes a mechanism whereby state governments, among others, are authorized to offer suggestions and comments on the development of the leasing program. Under section 18(c), the Secretary is required, when preparing a proposed leasing program, to invite and consider suggestions for such program from the Governors of any state which might be affected thereby. 38 The Secretary is also obliged, after he has drawn up the proposed program and at least sixty days before he publishes it in the Federal Register, to submit it to the Governor of each affected state for review and comment. 39 If any such Governor submits timely comments requesting modification of the proposed program, the Secretary must reply in writing, granting or denying the request in whole or in part, and stating his reasons therefor. 40 Under section 18(d), states may also submit comments and recommendations as to any aspect of the proposed program within ninety days after it is published in the Federal Register. 41 The Secretary must then submit the proposed program and any comments received thereon to the Congress and the President at least sixty days before he approves it, indicating why any specific recommendation of a state government was not accepted. 42 35 Once the Secretary approves the leasing program, it achieves important practical and legal significance. No lease may be issued for any area unless the area is included in the approved leasing program and unless the lease contains provisions consistent with the approved program. 43 The approved program also becomes the basis for future planning by all affected entities, from federal, state and local governments to the oil industry itself. Compliance with the mandates of section 18, therefore, is extremely important to the expeditious but orderly exploitation of OCS resources. 36