Overview:

The Minerals Management Service (MMS) is seeking comments on its next five-year plan for access to oil and gas resources on the Outer Continental Shelf (OCS). This plan will determine where federal OCS oil and gas lease sales will occur over the five-year period of 2007-2012. If an area is not made available in the plan, leasing will not be considered again for the area until beyond 2012. An initial comment period on the 5-year plan concluded in October 2005. The MMS is now accepting comments on the Draft Proposed Plan (DPP) through April 11, 2006. The DPP calls for consideration of 21 lease sales in only 7 of 26 planning areas in federal offshore waters. In Alaska, MMS is proposing nine lease sales, two in the Beaufort Sea, three in the Chukchi Sea, two in Cook Inlet and two in the North Aleutian Basin. Another comment period will occur in late summer when the Proposed Plan and Draft Environmental Impact Statement are made available for public review.

In the last comment period, proponents of expanded leasing outweighed opponents, but those opposed to new leasing are likely to mobilize for this comment period. It is absolutely essential RDC members comment in favor of expanded access to Alaska federal waters during this comment period. In order for new areas to be made available for leasing, public support must be demonstrated. Otherwise, industry will be forced to produce in existing mature areas where production is peaking and where supplies are declining.

According to MMS, Alaska’s offshore waters contain reserves estimated at 27 billion barrels of oil and 132 trillion cubic feet of natural gas. The MMS believes the Chukchi Sea is the most promising offshore petroleum basin in the U.S. Improved access to Alaska offshore waters in a thoughtful and environmentally-sensitive way could significantly improve the nation’s domestic energy situation and provide economic stimulus to coastal communities and the state.

Action requested:

RDC encourages its members to submit comments supporting increased access to the Alaska OCS within a strong regulatory framework that protects the environment, other resource users and traditional ways of life for local residents. Specifically, RDC recommends that members comment favorably on allowing leasing in the Chukchi and Beaufort seas, Cook Inlet and the Aleutian Basin. Deadline for comments is Tuesday, April 11.

Comments may be submitted electronically at: www.mms.gov/5-year/2007-2012main.htm

Comments may also be mailed to:

Points to consider for your comments:

• This letter is in support of expanded leasing on the U.S. Outer Continental Shelf (OCS) during the 5-year period 2007 – 2012. Given America’s heavy reliance on foreign oil and today’s price and supply situation, I find it appalling that 85 percent of the U.S. offshore is currently off-limits to oil and gas production. Current estimates indicate these areas contain 86 billion barrels of oil and 419 trillion cubic feet of natural gas that are technically recoverable. Allowing access would significantly reduce U.S. reliance on imports, improve domestic energy security, diversify supply, stimulate economic development and generate local, state and federal revenues.
• It is important that the government move diligently to increase and encourage domestic oil and gas production. America needs secure domestically-produced oil and natural gas resources to sustain its economy and the living standards of its citizens.
• It is equally important that the U.S. diversify its oil and gas production to other Federal waters outside the Gulf of Mexico. After the hurricanes of 2005, 92 percent of the gulf’s oil output and 83 percent of its natural gas production was shutdown, resulting in sharply higher energy prices and an economic slowdown.
• While I strongly support leasing in the 21 lease sale areas considered in the MMS Draft Proposed Plan, I particularly encourage expanded access to Alaska offshore waters in portions of the Beaufort Sea, the Chukchi Sea, Cook Inlet and the North Aleutian Basin – Bristol Bay. The Chukchi Sea is considered the most promising offshore undeveloped petroleum basin in the U.S.
• New leasing in these areas should move forward only after proper local stakeholder consultation, planning and environmental analysis is undertaken. Exploration and development should be based on a strong regulatory system with stringent discharge requirements. Any leasing plan should consider conflict avoidance with other resource industries and subsistence harvesters, seasonal operating restrictions, and impact mitigation.
• I also encourage MMS to include revenue sharing with states and local communities in its leasing plan. Areas most directly affected by oil and gas development should be allocated a share of the government revenues it generates.
• I support exploration and production activities in Alaska offshore waters because of its many potential benefits, including many new jobs in rural and urban areas, additional tax and royalty income to the state, federal revenue sharing with local communities, new local sources of fuel and energy, and improved search and rescue operations.
• The oil and gas industry in Alaska and elsewhere has proven its ability to extract resources in an environmentally safe and efficient manner. OCS development has an outstanding safety and environmental record spanning decades. Development has coexisted with other industries, including fishing, in the North Sea, the Gulf of Mexico and Cook Inlet. The National Academy of Sciences recently determined that less than 1 percent of all oil entering the seas is from drilling and extraction activities.
• It is important that future OCS activities adhere to strong environmental standards in accordance with the law.  Any final decisions from MMS should ensure that industry's footprint is minimized and that biological resources, traditional lifestyles and the environment are protected.
• Given long lead times for development, which can exceed ten years, MMS must proceed expeditiously with key lease sales in the 2007-2012 OCS plan. Otherwise, production from new areas could be pushed back to 2020 and beyond.

Deadline for comments: Tuesday, April 11, 2006