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Parnell to lead OCS Governors Coalition Group formed in 2011 stresses offshore energy expansion to Obama administration, raises concern over ‘marine spatial planning’ Wesley Loy For Petroleum News
Alaska Gov. Sean Parnell is taking over as chair of a multistate group dedicated to boosting offshore oil and gas production.
The Outer Continental Shelf Governors Coalition includes the governors of seven coastal states, including Alabama, Alaska, Louisiana, Mississippi, South Carolina, Texas and Virginia.
Louisiana Gov. Bobby Jindal previously chaired the group, which came together in May 2011.
“Developing America’s resources, both onshore and offshore, is essential to achieving a more sustainable, independent energy future,” Parnell said in an Oct. 12 press release. “As governors of coastal states, we are advocates for our citizens and we will continue to advocate for policies that lead to energy expansion and jobs for Americans.”
Among issues of importance to the OCS Governors Coalition include stepping up the pace of permitting for offshore exploration and production, and making sure the Obama administration’s “marine spatial planning” initiative isn’t a hindrance to energy development.
Letter to the president The OCS Governors Coalition drew high-level notice after its formation in 2011, with Michael Bromwich, the former director of what then was known as the Bureau of Ocean Energy Management, Regulation and Enforcement, immediately offering to meet with the state executives.
On March 13, the OCS Governors Coalition sent a letter directly to President Obama, outlining four priorities for 2012.
First, the governors said the pace and level of permitting for offshore exploration and production in the Gulf of Mexico and off Alaska must accelerate, the letter said.
“We appreciate the safety and regulatory measures implemented by industry and regulators following the Deepwater Horizon tragedy in April 2010,” the governors wrote. “Since the incident, delays in permitting, a lack of new permits issued and, in some cases, overly burdensome permit conditions have resulted in dramatically lower investment in U.S. offshore energy — both in comparison to historic levels and to current global norms. While some progress has been made to decrease the average wait time for approvals, we would urge stronger, swifter action.”
The coalition also urged the administration to expand access to new offshore areas for oil and gas development, as well as renewable energy developments such as offshore wind. The coalition also said all states hosting OCS development should participate in revenue sharing. And the governors urged updated evaluations of OCS energy resources.
“Due to advances in technology, the Department of the Interior’s estimates for OCS reserves has increased dramatically over the past decade,” the coalition letter said. “We believe expanded assessment of offshore resources — particularly in those areas not currently available for leasing — will allow the federal government and the states to reach more informed policies on the role of the OCS in a comprehensive national energy policy.”
Wary of ‘ocean zoning’ Another concern the OCS Governors Coalition has raised is marine spatial planning and the “bureaucratic hurdles” it could present. Parnell and other Alaska political leaders have warily labeled marine spatial planning as “ocean zoning.”
Marine spatial planning is an element of Obama’s effort to establish a national policy for the stewardship of the oceans and Great Lakes. His Executive Order 13547, released July 19, 2010, established a National Ocean Council and provided for development of coastal and marine spatial plans.
“Coastal and marine spatial planning identifies areas most suitable for various types or classes of activities in order to reduce conflicts among uses, reduce environmental impacts, facilitate compatible uses, and preserve critical ecosystem services to meet economic, environmental, security, and social objectives,” the executive order said.
In the first quarter of 2012, the Obama administration took public comments on a draft National Ocean Policy implementation plan. The Alaska Oil and Gas Association was among those weighing in with concerns about marine spatial planning.
AOGA’s March 28 comment letter to the National Ocean Council cited “the potential for the program to result in exclusionary zoning of Alaska’s oceans and coastline and additional layers of bureaucracy for project planning and development purposes, and thus, increased project delay, costs and uncertainty.”
AOGA further said it was concerned the National Ocean Policy, particularly coastal and marine spatial planning, could be used as “a tool for litigation.”
AOGA member companies include BP, Eni, ExxonMobil, Pioneer Natural Resources, Shell, Statoil and several others.
The Obama administration says marine spatial planning is not zoning.
“The National Policy is not a map drawing exercise and does not contain a zoning plan or establish any restrictions on activities, nor does it restrict access,” the administration has said.
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