Opinion ID: 6346804
Heading Depth: 4
Heading Rank: 1

Heading: Offshore drilling

Text: Declaring that the oil and natural gas reserves beneath the Outer Continental Shelf are a “vital national resource,” Congress enacted the Outer Continental Shelf Lands Act (“OCSLA”) to govern the development of offshore oil and EDC V. BOEM 23 gas resources in this region, while recognizing the crucial need to balance resource development with the protection of the human, marine, and coastal environments. Id. § 1332(3). The OCSLA provides for the right of coastal states to participate in decisions concerning the Outer Continental Shelf “to the extent consistent with the national interest.” Id. § 1332(4)(C). Congress created four phases for offshore oil and gas production. First, the Department of the Interior creates a leasing program to meet national energy needs for a fiveyear period. See id. § 1344. Second, the Department of the Interior holds lease sales. See id. § 1337. Third, the winning bidders obtain leases and submit exploration plans to the Department of the Interior, and these plans, if approved, authorize exploratory drilling. See id. § 1340. Fourth, if lessees discover commercially viable oil and gas deposits through their exploratory drilling, they then file development and production plans that would authorize them to construct a platform, install equipment, lay pipeline, and conduct other development activities. See id. § 1351. Before commercial drilling, lessees must submit an Application for Permit to Drill or an Application for Permit to Modify. The Department of the Interior can then approve the drilling operations, approve with modification, or deny the application. See generally 30 C.F.R. §§ 250.410–465; id. § 550.281. Lessees are required to revise an approved development and production plan if they make certain operational changes, like changing the type or volume of production or increasing the amount of emissions or waste, or if they propose to conduct activities that require approval of a license or permit that is not described in their approved plan. Id. § 550.283. Id. BOEM and BSEE, two agencies within the Department of the Interior, manage the oil and gas activities described in OSCLA. 24 EDC V. BOEM There are 23 oil and gas platforms in the federal waters on the Pacific Outer Continental Shelf off the coast of California. Oil companies installed these platforms between 1967 and 1989 and continue to rely on development and production plans approved in that time period for their drilling activities.