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The lads re z bien dis vis a ver fang on the part of Congres that there has got to be for greater operation between the buttz. braai gemers, and de Federal Government in the finure than there has been the past. as i rites to OCS leasing

I think that is an important sit clement to the point Senator Sterers was making with respect to the findings and the policy direcLots of the bill that did pass last week

Mr. Sumry. Thank you very math. SenMOC.
Scar Tox. Thank you very ma

The report referred to follows:

BACKROUND

On April 9, 1974, the Assembly Select Committee on Coastal Zone Resources hed a nearing in the Santa Monica Civic Auditorium dealing with the subject A fune ( Drilling Twenty witnesses presented testimony. Questions, prepared by Committee staff, had been sent to most witnesses (see Appendix C) and wred as a point of departure for the bearing. The session was well * and received media coverage.

The Commited's principal areas of concern that emerged from the hearing

The status of both state and federal offshore oil and gas development activities on the California Coast.

The quite offshore areas along Southern California's coastline being considered for oil and gas development.

The need for accelerated offshore oil and gas development at this time. The impacts of offshore oil and gas development on onshore land uses for rešneries, tanker terminals, storage tanks and pipelines, on the environment, and on California's coastal zone resources planning and management program. The Matus of subsurface production technology that could minimize visual imparts of offshore oil and gas development activities.

The status of technology to prevent oil spills, and, in the event of a spill, for Containment and clean-up.

The context (Le, energy policy) in which offshore oil development activities are being considered.

The offshore oil and gas development practices of state and federal agencies me they relate to maximizing the public's economic return and assuring reliability and safety,

The degree to which meaningful public participation in the decision making process is being encouraged and provided.

The Committee's hearing stemmed from a request in December 1973 by the Bureau of Land Management (BLM), U.S. Interior Department, for nominations by the oil industry of areas off the Southern California coast that should be offered for lease, The BLM's request resulted from a policy decision made by President Nixon in April, 1973, that 10,000,000 acres of outer continental shelf (00) in 1975 and again in 1976 should be leased to private industry for oil and gs development. The BLM's request for nominations of Southern California offshore lease areas covered approximately 7.7 million acres beyond the 3 mile limit of State jurisdiction. Not all of this OCS area will be leased. Testimony indicated that after the nominations have been made, the BLM, in

nominating aren should be leased. As of mid-April, 1974. no decision with other fedencies, will decide which specific tracts within

with regard to specific tracts had been made. When specific tracts have been selected, the BLM issues leases pursuant to federal regulations and procedures. At that point the United States Geological Survey (USGS) takes over and grants development permits and monitors construction and production operations. The USGS has responsibility for collecting revenues from OCS production. A number of other federal agencies, such as the Army Corps of Engineers and the U.S. Coast Guard, share responsibilities for various aspects of offshore oil and gas development activities.

Environmental impact statements are required at both the lease issuing and development permit stages of the process.

In early 1969, the State Lands Commission imposed a moratorium on the drilling of new wells or the issuance of new leases on state-owned submerged lands pending the revision of its procedures regulating offshore oil and gas development. On December 11, 1973 this moratorium was lifted by the State Lands Commission. Permit applications for the drilling of new wells from existing platforms are currently being received and processed.

Witnesses representing governmental agencies, conservation and civic groups, and various other segments of the public presented testimony on a wide range of issues. This report deals only with those issues which were of principal concern to the Committee at the hearing and with respect to which sufficient evidence was presented to allow findings and recommendations to be made. The complete hearing transcript is available from the committee. Copies have been distributed to California libraries in order to maximize their availability to the public at minimum expense.

SUMMARY OF FINDINGS
I

The Interior Department's accelerated OCS oil and gas development program is based on an unrealistic policy of self-sufficiency ("Project Independence") by 1980 to 1985 and does not appear to result from a comprehensive balanced energy policy of conservation and development.

II

President Nixon's decision that 10 million acres of OCS per year (1975 and 1976) should be leased by the Federal Government for oil and gas development does not appear to have been based on a thorough analysis of the total availability, from all sources, of oil and gas resources.

III

In view of the anticipated inflow into California of Alaskan north slope oil and the apparent reduction in the rate of demand increase, the need for offshore oil and gas development along Southern California's coastline, at this time, has not been established.

IV

It has not been demonstrated that the development of any OCS lands adjacent to California's coast is necessary to meet future energy needs that cannot be met by development of other sources of oil and gas, by development of alternative energy resources, and by the institution of energy demand reducing conservation policies.

V

Governmental agencies, at all levels, responsible for the management of the public's offshore oil and gas resources do not have independent information as to the location, quantity, and quality of offshore oil resources necessary to promulgate wise long range conservation and development policies, and to make rational management decisions.

VI

Although there is evidence that some industry-generated information regarding the location, quantity, and quality of some offshore oil resources exists, it is most often the secret information of the oil industry or is held as confidential information in government files and is therefore not available for public analysis and comment. Under these circumstances, governmental agencies are often not able to make informed short or long-term management decisions, and the public is

effectively precluded from meaningful participation in the decision making process. As a result, the public has no way of knowing whether new OCS oil and gas development is in the public's best interest when weighed against, among other things, the environmental impacts of such development the consequences of which the public must bear.

VII

It is likely that in the early 1980's the inflow of oil to California from sources other than new OCS oil production will exceed this State's refinery capacities.

VIII

There is great public concern over the possible development of offshore oil and gas resources. The following factors were most often expressed as the basis for this concern:

The risk of oil spills and, if they occur, their adverse impacts on the marine environment, recreational opportunities, and on recreation and tourist-dependent businesses.

The adverse aesthetic, visual impact of offshore drilling platforms.

The onshore impacts of offshore oil and gas development such as pipelines, storage tanks, transportation terminals, expanded refinery capacities, and other support facilities and services.

The development of offshore oil and gas in the absence of an overall energy policy that includes energy conservation and development of alternative energy

sources,

The compatibility or incompatibility, and cooordination, or lack thereof, of offshore development activities with státe, regional, and local coastal zone planning currently being carried out pursuant to Proposition 20, the California Coastal Zone Conservation Act of 1972.

The adequacy of current technology to guarantee against oil spills or to contain spills, if they occur, under most weather conditions.

The adequacy of existing regulations to protect environmental quality, public and private property, and the health and safety of workers and the public.

The adequacy of existing financial responsibility laws to make good any damages sustained by the public or private sector as a result of environmental pollution resulting from offshore activities.

IX

There appears to have been very little effort made by responsible federal agencies to obtain input from the general public, or from State and local governmental bodies,

X

There is little or no awareness on the part of the BLM or the USGS of the federal Coastal Zone Management Act of 1972 and their responsibilities thereunder,

XI

There is no effective coordination between the federal agencies responsible for leasing OCS lands and the California Coastal Zone Conservation Commission which is under a mandate from California voters to prepare a comprehensive coastal zone plan for the balanced conservation and use of California's coastal resources, including oil and gas.

XII

It appears the "energy crisis" is being used to justify an accelerated OCS development program which to date has not, and, unless the program is subjected to a major reorientation, will not give adequate consideration to impacts on the environment, land use planning, long-term economic and energy resource development, and on nonquantifiable social variables such as attitudes toward energy consumption. These considerations were rarely mentioned as having a role in the process of deciding whether OCS oil and gas development offshore Southern California should be pursued.

XIII

In the absence of an adequate buffer zone there exists the posibility that federal OCS oil and gas production adjacent to State offshore sanctuaries will result in State reserves being drained and the State opening up these sanctuarles to avoid loss of State oil and gas resources.

XIV

Present state and federaloffshore oil and gas development practices are not designed to maximize economic returns to the public and do not provide adequate protection of the public interest.

XV

Currently there is insufficient environmental baseline data to permit an accurate assessment and measurement of any changes that may occur in the environment as a result of OCS oil and gas development activities.

XVI

The status of subsurface completion technology for oil and gas development is such that in the near future such systems can be used wherever offshore oil and gas production is permitted within sight of coastal areas.

SUMMARY OF RECOMMENDATIONS

I

Offshore oil and gas development in Southern California should not proceed until a comprehensive national energy policy has been promulgated which includes research and development of alternative sources of energy, methods for the conservation of energy, and programs to reduce the growth rate of energy demand.

II

The Interior Department should submit its proposed OCS oil and gas development program to the California Coastal Zone Conservation Commission and other appropriate state agencies for their review and approval before any new leases are issued. This review by the California Coastal Zone Conservation Commission is consistent with the spirit of the federal Coastal Zone Management Act of 1972 and if not provided it should be required by appropriated amendment of the federal Act.

III

Federal OCS leasing and management practices should be reviewed and revised to assure, among other things:

(1) That OCS oil and gas development is carried out as an integral part of an overall, balanced energy conservation and development program.

(2) That opportunities for extensive and effective input is assured the general public, interested units of state, regional, and local government, and other segments of the communities most immediately effected by OCS development activities.

(3) That stringent regulations are developed that require use of the latest, adequately tested technology for oil and gas production to protect against environmental pollution and visual degradation and which include the power to set high performance standards which the industry must meet. For example, subsurface production systems that meet rigid safety and reliability standards should be required wherever offshore oil and gas development is permitted within sight of any adjacent shoreline area. These regulations must also provide protection for the safety of the workers and the general public, by, among other things, requiring the industry to meet certain personnel training standards and by establishing effective inspection procedures.

(4) That fully adequately funding support and independent expertise be provided the responsible federal agencies so that they can maximize effective management of OCS oil and gas development activities.

(5) That federal OCS activities are compatible with and provide maximum consideration of the adjacent state's interests as manifested by its policies and programs for the management of its coastal zone recources.

IV

Federal OCS development activities adjacent to State marine sanctuaries should be prohibited unless an adequately large buffer zone is set aside to prevent drainage of State oil and gas reserves. The size of the buffer zone must be

based on accurate information as to the location and extent of offshore oil deposits. If this information is not available to the government it should be provided by the industry as a pre-condition to the consideration of lease bids in order to permit an informed decision on the adequacy of buffer zones.

V

The state and federal governments should cooperate in the conduct of environmental baseline studies in any offshore area for which development leases are being sought before such leases are issued. Such studies must be based on a systematic approach that recognizes and takes into consideration the variability of environmental factors. The studies must be adequately funded and ongoing in order to maximize data validity in measuring and protecting environmental quality. The studies should be conducted by a governmental agency with expertise in marine sciences, such as the National Oceanic and Atmospheric Administration, and should be subjected to independent review. And finally, such studies should be carried out on a continuing basis after oil and gas development proceeds in order to enhance the accuracy and usefulness of the information for application in future offshore and gas management decisions.

VI

The State of California should undertake an indepth analysis and review of the role of the private and public sectors in the development of state and national offshore natural resources. The Rand Study on energy currently being conducted for the Assembly's Committee on Planning, Land Use, and Energy should be expanded to encompass a public policy analysis that would explore governmental policies bearing on the development of publicly owned mineral resources on public lands. The study should take account of both public needs and potential economic returns to the State. In this respect the expanded study should suggest and analyze alternative approaches for governmental action.

VII

Before new offshore oil and gas development is permitted to proceed a comprehensive analysis should be conducted to determine the need for offshore California oil production in light of the anticipated inflow to California of oil and other forms of energy from all other sources, including onshore oil production, Alaskan north slope oil and gas production, and foreign oil and gas imports, and in view of California's projected capacities to refine and store the anticipated inflow of oil from sources other than new offshore production. There exists the possibility that California may become an "exporter" of oil given current projections regarding reductions in the rate of demand increases, the large quantities of anticipated north slope oil coming to California, and in view of the fact some foreign imports will most likely continue. It may be in the best interest of the State and nation to measure California's offshore oil and gas resources and hold them as reserves. In any event, it would appear contrary to wise, long-range energy planning and management policies. to rush into offshore oil production in the absence of this information..

VIII

No new federal OCS oil and gas development leases should be issued by the Interior Department until one, five, and ten year plans for such oil and gas production and its impact on California's coastal zone have been prepared and made available to the public (e.g. how many platforms will be built, and where; where would the oil be refined and would additional refinery capacity be required; where would the pipelines, if any, be located; what other onshore support facilities would be required and where would they be located; etc.).

IX

A portion of the Federal revenues from OCS oil and gas production should be made available to California to assist it and local governments in insuring that measures are taken to mitigate against any environmental damage, and to assist in planning for the impact of this production on the State (e.g. planning for needed transportation terminals, additional refineries, pipelines and storage areas, and other support facilities).

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