During the June 1994 Gore-Chernomyrdin Science &Technology Committee meeting in Washington D.C., Interior Secretary Babbitt, on behalf of the Minerals Management Service (MMS), signed an Memorandum of Understanding (MOU) on Geology and Use of Mineral Resources. The Russian Committee has since reorganized and is now the Russian Federation Ministry of Natural Resources (MNR).

The MMS-MNR MOU provides a framework for the sharing of scientific and technical information with Russia as they continue to move towards a market economy in the development of their offshore oil and gas resources. The MOU will allow closer and more regular contacts and engages the Russians in cooperation related to the technical aspects of regulating offshore exploration and development of oil, gas, and mineral resources.

In August 1994, MMS and Russia agreed to consider holding a simultaneous natural gas and oil lease sale/tender in the Chukchi Sea area. The proposed initiative would allow each party to cooperate and develop their respective sale/tender proposals, sharing environmental, cultural, and technical information, but final decisions on the terms and conditions of the offering would be made on an individual basis. The proposed Chukchi Sea simultaneous sale was deferred due to limited near term interest by the oil and gas industry. However, Russia is still interested in coordinating their schedule of lease tenders in the Far East with future MMS lease sales offshore Alaska.

In September 1995, a second project under the MOU was proposed. Taking into account Russia's high priority on developing new oil and gas fields in the Arctic, the MNR asked for help to identify and consider common approaches to environmental, technical (including safe operating practices), and economic problems associated with mineral resource development. As a result of World Bank encouragement the project evolved into a multilateral initiative. The MNR and MMS work closely with the Norwegian Petroleum Directorate (NPD) and other Russian government entities with offshore oil and gas regulatory authority to develop a project proposal that will assist Russia in developing a comprehensive safety and environmental regime for offshore oil and gas operations, including Arctic waters, consistent with international standards.

The initial phase of the project is a feasibility study that will prepare the background necessary for the next stage -- the actual development of a comprehensive Russian offshore oil and gas safety and environmental regime. The study will also determine the likelihood of success for developing and implementing the comprehensive regime. An Executive Committee will oversee the feasibility study. The Committee will be chaired by the MNR and include senior representatives of the Ministry of Fuels and Energy, the Committee for Technical Safety of Mines and Industry, the Committee for Environmental Protection, and the Ministry for Agriculture (Fisheries Department).

Links:

	Press Release  International Cooperation on Safety and Environment
	Official Russian Federation Home Page
	U.S. Department of Energy, Energy Information Administration: Russia

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Last Updated: 11/19/2008, 05:23 PM