Outer Continental Shelf Leases

1. Outer Continental Shelf Leases Recent Issues That Could Affect New Jersey’s Coast Linda J. Brennen April 2009

2. Opportunities to Comment Current federal initiatives that could affect NJ’s coast: • Off-shore Leases for Oil & Gas • Federal Register Announcement of Feb 17, 2009 • MORE Act of 2009 • Introduced to the House of Representatives on Feb 3, 2009 • Currently in Committee

3. OCS Timeline • 1945 – Pres. Truman issued a proclamation asserting US jurisdiction over the natural resources of the seabed of the Continental Shelf adjacent to the US coasts • 1950’s – Geologists identified Mid-Atlantic Outer Continental Shelf (MA-OCS) as potential source of oil & gas • 1953 –Submerged Lands Act & Outer Continental Shelf Lands Act passed • Late 1960’s – Energy experts see US demand outpacing production expected from existing Gulf state leases • 1971 – Interior Dept. examined accelerated leases, including new areas, such as MA-OCS • 1973 – Oil embargo led feds to make MA-OCS leases a high priority. Atlantic Coastal states object & NJ passes CAFRA (on-shore regulations)

4. OCS Timeline • 1974 – USGS survey: Major reserves of oil & gas in MA-OCS • 1976 – Over a 7 year period, Atlantic leases were sold and 40 wells were drilled, but no commercial discoveries were made • 1978 – The OCS Lands Act was amended: leases must address environmental concerns and be offered through 5-year leasing programs • 1980 – 2nd Oil Crisis led Pres. Carter to approve the first 5yr plan. 50 leases granted in Atlantic waters by 1982 • 1990 – Pres. Bush withdrew 610 million acres from lease potential, including Atlantic OCS waters • 2005 – Energy & Nat. Res. Com. renewed interest in OCS resources; NJ reps make bi-partisan plea to keep moratorium • 2008 – Congress lifted the lease moratorium and 5 companies expressed interest in new leases. Gov. Corzine opposed OCS oil & gas leases • 2009 – Interior Secretary Salazar announced new strategy

5. 2010-2015 OCS Lease Program • Leases now available in most areas previously under Pres. Bush’s 1990 withdrawal (including Atlantic OCS) • But, leases can only be granted as proposed in the 5-year cycle • North Atlantic OCS – Plan calls for 1 lease sale in 2013 • 2010-2015 Plan recognizes renewable energy options • But, wind leases are not part of the plan: can be offered separately by MMS • MMS is planning to offer a lease in 2011 to Garden State Off-shore Energy • NJ initiated a program to accelerate off-shore wind leases & MMS expects additional leases will be issued in response • The 2010-2015 OCS program recognizes NJ’s position

6. 2010-2015 Program Comments • Program Comment Process • 4 Public Hearings Scheduled • Written comment deadline September 21, 2009 • Salazar requesting input on 4 topics • Size, timing and location of proposed lease sales • Exclusions due to conflicts • Buffer zones? • Revenue sharing • MORE Act of 2009

7. MORE Act of 2009 • HR 797: Maximize Offshore Resource Exploration (MORE) Act • Amends the OCS Lands Act by requiring State approval for oil and gas leases within 25 miles of the coastline • State approval is permanent • Create the Renewable Energy Reserve fund • Royalties extended to states

8. Summary of Comments • 2010-2015 Lease Program • No oil & gas leases off the NJ coast in keeping with state’s long-standing position • No leases due to the potential impacts and conflicts • Add buffers to protect state’s sensitive environments & economy • Allow fair revenue sharing • MORE Act (HR 797) • Extend the State’s approval to at least 50 miles • Allow states the right to revoke approval • Extend the 90% royalty boundary

9. Additional comments? • Presentations to MCPB Advisory boards: • MCEC on April 2nd • GHGRAC on April 14th • Planning Board presentation on April 20th Send additional thoughts to lbrennen@monmouthplanning.com