[Federal Register: January 30, 2004 (Volume 69, Number 20)]
[Notices]
[Page 4536-4540]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ja04-88]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Outer Continental Shelf (OCS), Alaska Region, Norton Basin
AGENCY: Minerals Management Service (MMS), Interior.
ACTION: Call for information and nominations.
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SUMMARY: The Secretary's decision to consider offering the Norton Basin
planning area in the OCS Oil and Gas Leasing Program for 2002-2007
provides for an 18-month ``special-interest'' process beginning with
publication of this Call. Based on the information and specific
nominations received as a result of this Call, a decision will be made
whether to proceed with a sale.
DATES: Nominations and comments on the Call must be received no later
than 90 days after publication of this document in the Federal
Register.
FOR FURTHER INFORMATION CONTACT: Please call Tom Warren at (907) 271-
6691 in MMS's Alaska OCS Region regarding questions on the Call.
SUPPLEMENTARY INFORMATION: The objective of this ``special-interest''
leasing option is to foster exploration in a high-cost frontier OCS
area remote from oil and gas infrastructure without investment of the
considerable time and effort required for holding a typical lease sale.
The general approach is to query industry regarding the level of
interest in proceeding with a sale in the Norton Basin that would offer
only very small, very focused areas of specific interest for
exploration and to request nominations of such areas. Norton Basin may
contain quantities of natural gas, which might be used for western
Alaska communities if economically feasible. We also request comments
from the general public on this special-interest leasing process,
including the terms and conditions of a sale. The MMS will consider all
comments and nominations in the decision on whether and where within
the Norton Basin to proceed with leasing and on the terms and
conditions of a lease sale proposal. A decision to offer a nominated
area for leasing will depend on a commitment from industry to explore
the area leased within a specific time period.
This is the third Call issued for the Norton Basin for this 5-year
program. The first two Calls were published in the Federal Register on
January 22, 2002, and March 25, 2003, respectively. No interest was
expressed for either Call; therefore, the process was stopped and
deferred to this year. If no interest is expressed in response to this
third Call, the MMS will defer the sale for one year and reissue the
Call the following year. This process will continue throughout the 5-
year program until there is sufficient interest to proceed with the
planning steps toward a sale. Only one round of lease issuance in
Norton Basin would occur during this 5-year program.
This Call does not indicate a preliminary decision to lease in the
area described below. If the MMS decides to proceed with the sale
process, the MMS will make the final decision on the specific areas for
possible leasing at a later date in the presale process and in
compliance with the 5-year program and with applicable laws including
all requirements of the National Environmental Policy Act (NEPA) and
the OCS Lands Act. The MMS may adjust the dimensions of a nominated
area after discussions with the nominating company.
Call for Information and Nominations
1. Authority
This Call is published pursuant to the OCS Lands Act, as amended
(43 U.S.C. 1331-1356, [1994]), and the regulations issued thereunder
(30 CFR part 256 and 30 CFR part 260); and in accordance with the OCS
Oil and Gas Leasing Program 2002 to 2007, approved June 27, 2002.
2. Purpose of Call
The purpose of the Call is to gather preliminary information, to
request nomination of specific areas of interest to industry, and to
request comments on the terms and conditions of offering these special-
interest lands. The Call also serves to initiate public outreach to
assist in preparation of the NEPA analysis for this proposal. This
proposal is in keeping with Sec. 102(9) of the OCS Lands Act Amendments
of 1978, which states as a purpose of the statute, ``* * * to insure
that the extent of oil and natural gas resources of the OCS is assessed
at the earliest practicable time.'' The objective of the ``special-
interest'' leasing process is to encourage exploration in a frontier
OCS area that might contain natural gas for potential use in local
communities. The sale would offer for lease both oil and gas.
We seek comments, information, and nominations on oil and gas
leasing, exploration, and development and production within the Norton
Basin from all interested parties. We also seek comments on the terms,
conditions, and economic incentives of a sale in the Norton Basin. We
strongly encourage industry and other interested parties to contact the
MMS, Alaska OCS Region, Mr. Tom Warren at (907) 271-6691, with
questions or to discuss interest in the area. This early planning and
consultation step is particularly important to this special-interest
lands process. The MMS will base its decision on whether to proceed
with the presale process and the terms and conditions of a sale on the
nominations and other information received in response to this Call.
This process will ensure a decision that considers the concerns of all
respondents in future decisions in this leasing process pursuant to the
OCSLA and regulations at 30 CFR part 256 and 30 CFR part 260. We
encourage commenters to submit comments and suggestions on the
``special-interest'' leasing process in general.
This Call is being issued in accordance with the OCS Oil and Gas
Leasing Program 2002 to 2007, approved June 27, 2002. The program
offers one sale in the Norton Basin during the 5-year program. This is
the third Call issued for the Norton Basin Program Area. The first two
Calls were published in the Federal Register on January 22, 2002, and
March 25, 2003, respectively. No interest was expressed for either
Call. If no interest is expressed in response to this third Call, the
MMS will defer the sale for one year and reissue the Call the following
year. This process will continue throughout the 5-year program until
there is sufficient interest to proceed with the planning steps toward
a sale. Only one round of lease issuance in Norton Basin would occur
during this 5-year program.
3. Description of Area
The area subject to this Call is located offshore the State of
Alaska in the northern Bering Sea, west and south off the coast of the
Seward Peninsula. It consists of approximately 4,742 whole and partial
blocks (about 25 million acres). It extends offshore from about 3 to
approximately 320 miles in water depths from about 25 feet to
approximately 650 feet.
A page-size map of the area accompanies this Notice. A large scale
Call map showing the boundaries of the area on a block-by-block basis
is available without charge from the Public Information Office at the
address given below, or by telephone request at (907) 271-6438 or 1-
800-764-2627. Copies of Official Protraction Diagrams (OPDs) are also
available for $2 each.
Alaska OCS Region, Minerals Management Service, 949 East 36th
[[Page 4537]]
Avenue, Room 308, Anchorage, Alaska, 99508-4302, akwebmaster@mms.gov.
4. Instructions on Call
The Call for Information Map and indications of interest and/or
comments must be submitted to the Regional Supervisor, Leasing and
Environment, at the above address.
The Call map delineates the area that is the subject of this Call.
Respondents are requested to indicate very specific areas of interest
in and comment on the Federal acreage within the boundaries of the Call
area that they wish to have included in a proposed sale in the Norton
Basin.
If you wish to comment, you may submit your comments by any one of
the following methods:
You may mail comments to the Alaska OCS Region,
Minerals Management Service, 949 East 36th Avenue, Room 308, Anchorage,
Alaska 99508-4302.
You may also comment via e-mail to
callforinformation@mms.gov. Please submit Internet comments as an ASCII
file avoiding the use of special characters and any form of encryption.
Please also include ``Attn: Comments on Call for Information and
Nominations for Proposed 2005 Lease Sale in Norton Basin'' and your
name and return address in your Internet message.
Finally, you may hand deliver comments to the
Alaska OCS Region, Minerals Management Service, 949 East 36th Avenue,
Room 308, Anchorage, Alaska 99508-4302.
Our practice is to make comments, including names and addresses of
respondents, available for public review during regular business hours.
Individual respondents may request that we withhold their address from
the rulemaking record, which we will honor to the extent allowable by
law. Under certain circumstances we can withhold a respondent's
identity, as allowable by law. If you wish us to withhold your name
and/or address, you must state this prominently at the beginning of
your comment. However, we will not consider anonymous comments. We will
make all submissions from organizations or businesses, and from
individuals identifying themselves as representatives or officials of
organizations or businesses, available for public inspection in their
entirety.
A. Areas of Interest to the Oil and Gas Industry. Industry must be
candid and very specific regarding the areas they nominate if this
process is to succeed. The purpose of this process is to identify and
offer only small-focused areas where industry has a significant
interest in exploration. Nominations covering large-scale areas will
not be helpful in defining these areas.
Nominations must be depicted on the Call map by outlining the
area(s) of interest along block lines. Nominators are asked to submit a
list of whole and partial blocks nominated (by OPD and block number) to
facilitate correct interpretation of their nominations on the Call map.
Although the identities of those submitting nominations become a matter
of public record, the individual nominations are proprietary
information. The telephone number and name of a person to contact in
the nominator's organization for additional information should be
included in the response. This person will be contacted to set up a
mutually agreeable time and place for a meeting with the Alaska OCS
Regional Office to present their views regarding the company's
nominations.
B. Terms, Conditions, and Economic Incentives Pertaining to Lease
Issuance. We request respondents to comment on the terms, conditions,
and economic incentives pertaining to lease issuance for any leases
that may be issued as a result of a sale in the Norton Basin. The MMS
is aware of the lack of infrastructure and distance from shore to some
of the blocks in this area and will consider these factors in designing
any incentives. The following are being considered for use in this
sale:
--Lease term of 10 years
--Submission of an exploration plan within 8 years of lease issuance
--Economic incentives similar in form to those contained in the Notice
of Sale for Beaufort Sea Sale 186 (68 FR 50549). Incentives for
Beaufort Sea Sale 186 were:
--Royalty suspension volumes for oil production (with possible
consideration for gas)
--Reduced rental rates
--Lower minimum bid requirements
C. Relation to Coastal Management Plans (CMPs). We also seek
comments on potential conflicts with approved local CMPs that may
result from the proposed sale and future OCS oil and gas activities.
These comments should identify specific CMP policies of concern, the
nature of the conflicts foreseen, and steps that MMS could take to
avoid or mitigate the potential conflicts. Comments may be in terms of
broad areas or restricted to particular blocks of concern. We request
commenters to list block numbers or outline the subject area on the
large-scale Call map.
5. Use of Information From Call
Information submitted in response to this Call will be used for
several purposes. We will use responses to:
--Determine whether to proceed with a competitive oil and gas lease
sale in Norton Basin
--Identify specific areas of interest for oil and/or gas exploration
and development
--Identify environmental effects and potential use conflicts
--Assist in the public outreach for the environmental analysis
--Develop possible alternatives to the proposed action
--Develop lease terms and conditions/mitigating measures
--Identify potential conflicts between oil and gas activities and the
Alaska CMP
6. Existing Information
An extensive environmental, social, and economic studies program
has been underway in the Alaska OCS Region since 1976, including
studies in this area. The emphasis has been on geologic mapping,
environmental characterization of biologically sensitive habitats,
endangered whales and marine mammals, physical oceanography, ocean-
circulation modeling, and ecological and socio-cultural effects of oil
and gas activities.
The MMS has had one past sale in the Norton Basin area. In March
1983, Sale 57 was held and resulted in 59 leases being issued. There
were six exploratory wells drilled, but all have been permanently
plugged and abandoned. All 59 leases have been relinquished or expired.
The Alaska OCS Region document ``Undiscovered Oil and Gas Resources,
Alaska Federal Offshore, December 2000 Update'' (http://www.mms.gov/alaska/re/
uogr/uogr.pdf), estimates the undiscovered conventionally
recoverable resources at:
[[Page 4538]]
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Oil and NGL (BBO) GAS (TCFG) BOE (BBO)
Area ------------------------------------------------------------------------------------------------------------ MPhc
F95 Mean F05 F95 Mean F05 F95 Mean F05
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NORTON BASIN..................... 0.00 0.05 (NGL)........ 0.15 0.00 2.71 8.74 0.00 0.53 1.70 0.72
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BBO, billions of barrels of oil and natural gas liquids; TCFG, trillions of cubic feet; BOE, total oil and gas in billions of energy-equivalent barrels
(5,620 cubic feet of gas=1 energy-equivalent barrel of oil); reported MEAN, resource quantities at the mean in cumulative probability distributions;
F95, the resource quantity having a 95-percent probability of being met or exceeded; F05, the resource quantity having a 5-percent probability of
being met or exceeded; MPhc, marginal probability for hydrocarbons for basin, i.e., chance for the existence of at least one pool of undiscovered,
conventionally recoverable hydrocarbons somewhere in the basin. Resource quantities shown are risked, that is, they are the product of multiplication
of conditional resources and Mphc. All liquid resources in Norton basin are natural gas liquids that would only be recovered by natural gas
production.
Information on the studies program, completed studies, and a
program status report for continuing studies in this area may be
obtained from the Chief, Environmental Studies Section, Alaska OCS
Region, by telephone request at (907) 271-6577, or by written request
at the address stated under Description of Area. A request may also be
made via the Alaska OCS Region Web site at http://www.mms.gov/alaska/ref/
pubindex/pubsindex.htm.
7. Tentative Schedule
If MMS receives specific nominations from industry in response to
this Call and decides to proceed with the pre-sale process, the
following is a list of tentative milestone dates applicable to a Norton
Basin sale in 2005:
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Tentative process milestones
for proposed 2005 Norton Basin
Sale
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Call published/public outreach January 2004.
initiated.
Comments due on Call................... April 2004.
Decision whether to proceed/Area May 2004.
Identification.
NEPA analysis.......................... February 2005.
Consistency Determination/Proposed April 2005.
Notice of Sale.
Governor's Comments due................ June 2005.
Final Notice of Sale published......... August 2005.
Sale................................... September 2005.
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Approved:
Dated: January 20, 2004.
R.M. ``Johnnie'' Burton,
Director, Minerals Management Service.
BILLING CODE 4310-MR-P
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[FR Doc. 04-2011 Filed 1-29-04; 8:45 am]