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This page last updated:
February 15, 2006


Manteo Exploration Unit
OCS Leases Offshore North Carolina

Issue

At present, no active OCS oil and gas leases exist in any of the four Atlantic OCS Planning Areas.  While more leases were originally issued offshore North Carolina, the primary focus had always been on the 21 leases comprising the Manteo Exploration Unit;  $296 million was paid for these original 21 Manteo Unit leases.  A joint effort by Mobil Oil and Marathon Oil paid $234,768,000 for five blocks.

The Manteo Exploration Unit was approved on May 25, 1990.  The Manteo Unit had been subjected to three Suspensions of Operations (SOO) via several instruments including an MOU effective September 1, 1989; the Oil Pollution Act of 1990 (OPA 90)legislation; and OPA 90 and Environmental Sciences Review Panel recommendations of June 8, 1992.

Two of the 21 Manteo Unit leases had proceeded through the review and examination process to the point where exploration plans were "approved. In July 1982, the MMS approved a Chevron plan to explore Manteo Block 510.  This block had an approved Coastal Zone Management Act (CZMA) consistency concurrence from the State of North Carolina and an approved Application for Permit to Drill from the MMS since 1984.  A new CZMA approval would be needed only if a proposed revision could result in a significant change in the previously identified impacts.

In September 1990, the MMS conditionally approved Mobil's exploration plan to explore Manteo Block 467.  The State of North Carolina denied consistency on Mobil's Exploration Plan and discharge permit in November 1990.  Mobil appealed the decision in 1990 and in September 1994, the U.S. Department of Commerce upheld the State's decision.  Mobil appealed that decision in January 1995.  In June 2000, the U.S. Supreme Court ruled in favor of Mobil/Marathon that a "taking" occurred.  In July 2000, a District Court Judge dismissed Mobil's litigation against Commerce Department and North Carolina, the Unit SOO was terminated, and the primary term clock commenced on the (then) eight remaining leases, all of which were relinquished in November 2000.

No active leases exist off the Atlantic seaboard.


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