anteo 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.