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Minerals Management Service
MMS Announces Preliminary Nominations for Limited Alternative Energy Leases on Outer Continental Shelf
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MMS is requesting comments on an interim policy that permits it to authorize offshore alternate energy assessment and technology testing on the Outer Continental Shelf.

The Minerals Management Service has received 43 nominations for offshore alternative energy resource assessment and technology testing activities on the Outer Continental Shelf. The agency received the nominations based on its announcement in the Federal Register on Nov. 6, 2007.

“We are excited about the level of response and the number of areas nominated for potential development,” MMS Director Randall B. Luthi said. “This confirms there is tremendous interest in tapping the wealth of renewable energy resources offshore.”

Under the interim policy, MMS may issue limited-term leases authorizing the installation of meteorological or marine data collection facilities. These facilities will assess alternative energy resources on the Outer Continental Shelf (for example, wind, wave, tidal, and ocean current) or test alternative energy technology. Because wind turbine technology is reasonably well established, MMS will not authorize turbine technologies for testing through the interim policy.

Most of the nominations MMS received on the Atlantic Coast are for meteorological and oceanographic data collection facilities. These facilities would support wind generation projects off Massachusetts, New York, New Jersey, Delaware, Maryland, Virginia, South Carolina and Georgia. Nominations for areas off Florida focused on ocean current information collection and technology. On the Pacific Coast, the main interest is in wave energy, and MMS received nominations for areas off California, Oregon and Washington. Regarding Alaska, the single nomination MMS received is for Cook Inlet and relates to tidal power.

“We look forward to enabling the interested companies to gather information that will lay the groundwork for generating power for regional and national use in a safe, clean, and environmentally responsible manner,” Luthi said.

In addition to the nominations, MMS received and is reviewing comments on the interim policy from individual companies, interest groups, and federal, state, and local governments. Individual comments are available for public review on the MMS internet Web site at https://ocsconnect.mms.gov/pcs-public/do/ProjectDetailView?objectId=0b011f808028166f.

MMS is charged with managing energy resources of the OCS, including traditional forms such as oil and gas.

MMS will review the comments and determine the next steps under the interim policy. This will include communicating with the nominators to refine and clarify their nominations and to verify their qualifications to acquire a limited lease. MMS will then publish a Federal Register notice to announce the nominations. In the notice, it will also identify those nominations on which it will proceed and request information to determine whether competing interest exists in any of the nomination areas.

The interim policy would be in effect until MMS issues final rules for the OCS Alternative Energy and Alternate Use Program. It expects to issue those by the end of 2008. Parties wishing to obtain limited leases under the policy may continue to submit nominations until then.

Relevant Web Site:
MMS Main Website

Media Contact:
Nicolette Nye (703) 787-1011

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UPDATED: January 23, 2008
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