Opinion ID: 187344
Heading Depth: 2
Heading Rank: 2

Heading: Outer Continental Shelf Lands Act

Text: OCSLA establishes a procedural framework under which Interior may lease areas of the OCS for purposes of exploring and developing the oil and gas deposits of the OCS's submerged lands. See 43 U.S.C. §§ 1334, 1337; see also California v. Watt (Watt I), 668 F.2d 1290, 1295-1300 (D.C.Cir.1981). In order to ensure the expeditious but orderly development of OCS resources, Watt I, 668 F.2d at 1297, OCSLA provides that Interior undertake a four-stage process in order to develop an offshore oil well. See Sec'y of the Interior v. California, 464 U.S. 312, 337, 104 S.Ct. 656, 78 L.Ed.2d 496 (1984). As we noted in Watt I, the leasing program's four-stage process is pyramidic in structure, proceeding from broad-based planning to an increasingly narrower focus as actual development grows more imminent. Watt I, 668 F.2d at 1297. This multi-tiered approach was designed to forestall premature litigation regarding adverse environmental effects that ... will flow, if at all, only from the latter stages of OCS exploration and production. Sec'y of Interior, 464 U.S. at 341, 104 S.Ct. 656. First, during the preparation stage, Interior creates a leasing program by preparing a five-year schedule of proposed lease sales. 43 U.S.C. § 1344. At this stage, prospective lease purchasers acquire no rights to explore, produce, or develop any of the areas listed in the leasing program. Sec'y of Interior, 464 U.S. at 338, 104 S.Ct. 656. Second, during the lease-sale stage, Interior solicits bids and issues leases for particular offshore leasing areas. 43 U.S.C. § 1337(a). Third, during the exploration stage, Interior reviews and determines whether to approve the lessees' more extensive exploration plans. 43 U.S.C. § 1340. Interior allows this exploration stage to proceed only if it finds that the lessees' exploration plan will not be unduly harmful to aquatic life in the area, result in pollution, create hazardous or unsafe conditions, unreasonably interfere with other uses of the area, or disturb any site, structure, or object of historical or archeological significance. 43 U.S.C. § 1340(g)(3). Fourth and final is the development and production stage. During this stage, Interior and those affected state and local governments review an additional and more detailed plan from the lessee. 43 U.S.C. § 1351. If Interior finds that the plan would probably cause serious harm or damage ... to the marine, coastal or human environments, then the plan, and consequently the leasing program, may be terminated. 43 U.S.C. § 1351(h)(1)(D)(i). The Leasing Program at issue has only completed its first stagepreparation of the five-year program under Section 18 of OCSLA, 43 U.S.C. § 1344. Under Section 18, the Secretary is required to prepare, periodically revise, and maintain an oil and gas leasing program that consists of a schedule of proposed lease 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. 43 U.S.C. § 1344(a). The Secretary must prepare and maintain a leasing program consistent with several principles. First, the Secretary must ensure that a leasing program is conducted in a manner which considers economic, social, and environmental values of the renewable and nonrenewable resources contained in the [OCS], and the potential impact of oil and gas exploration on other resource values of the [OCS] and the marine, coastal, and human environments. 43 U.S.C. § 1344(a)(1). Second, the Secretary must consider additional factors with respect to the timing and location of exploration, development, and production of oil and gas in particular OCS areas. These factors include, inter alia: a region's existing information concerning the geographical, geological, and ecological characteristics; an equitable sharing of developmental benefits and environmental risks among the various regions; the interest of potential oil and gas producers in the development of oil and gas resources; the relative environmental sensitivity and marine productivity of different areas of the [OCS]; and relevant environmental and predictive information for different areas of the [OCS]. 43 U.S.C. §§ 1344(a)(2)(A), (B), (E), (G), (H). Next, Interior must ensure, to the maximum extent practicable, that the timing and location of leasing occurs 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. 43 U.S.C. § 1344(a)(3). Finally Interior's leasing activities must ensure that winning lessees receive fair market value for the lands leased and the rights conveyed by the Federal Government. 43 U.S.C. § 1344(a)(4). Other provisions of OCSLA that are relevant to the leasing process are Sections 18(b) and 20. See 43 U.S.C. §§ 1344(b), 1346. Section 18(b) of OCSLA calls for Interior to include estimates of the appropriations and staff required to conduct and prepare the leasing program, including appropriations and staff estimates needed to conduct environmental studies and prepare an Environmental Impact Statement (EIS). 43 U.S.C. § 1344(b)(3). Section 20 of OCSLA also provides that, subsequent to a first lease in a given area, the Secretary shall conduct such additional studies to establish environmental information as he deems necessary and shall monitor the human, marine, and coastal environments of such area or region in a manner designed to provide time-series and data trend information. 43 U.S.C. § 1346(b).