There have been 10,067 oil and gas test wells drilled on OCS lands in the Gulf of Mexico (February 1972). The subsurface data, electrical surveys, samples, drilling and completion reports, are either on file with the Survey or can be obtained as needed. At the present time Geological Survey has acquired by contract purchase 35,000 line miles of common depth point (CDP) seismic data in the Gulf of Mexico on the OCS between Matagorda Island, Texas and Tampa Bay, Florida. In this same area the Geological Survey has purchased 4,000 line miles of shallow focus high-resolution seismic data and is in the process of acquiring an additional 10,000 line miles to assist in lease management. If it is ever decided to consider a leasing program on the Atlantic and Gulf of Alaska OCS, it is anticipated that adequate geologic and geophysical data will be available. The Survey has acquired 12,000 line miles of CDP seismic on the Atlantic OCS and 10,000 line miles of CDP in the Gulf of Alaska and is in the process of purchasing an additional 4,000 line miles of CDP in the Gulf of Alaska. in each of these areas. Additional seismic data will be purchased (b) Currently the existing amount of geologic information on coal on Federal lands is such that a significant number of decisions affecting Federal lands are made annually with inadequate geologic information as to basic data involving the thickness, quality, depth, and extent of coal resources. While it is not possible to determine the full extent of the inadequacy of these decisions, enough is known of specific cases to indicate that present geologic information is not adequate to fully protect the Federal interests involved. Changes in law, or regulations are not needed to make the desired information available. Specifically, the need is full implementation of current programs within the present organization. Current programs consist of (1) defining areas where the existence of leasable minerals is sufficiently known in advance of application to warrant competitive leasing rather than issuance of prospecting permits, and (2) evaluation of all such lands to assure receipt of fair market value to the public in return for Federal coal lands. Implementation in future years may require greater staffing and funding to provide for detailed geologic mapping and evaluation of all tracts to be made available for leasing. (c) The Department does not know the total number, acreage, reserves or resources on uranium claims because the mining claimants are not required to record this information with the Government. However, the AEC through a voluntary relationship with industry, has received detailed information on uranium reserves and resources on mining claims and publishes data on the basis of total reserves and resources on all lands. (d) Federal agencies have no knowledge of activities on mining claims for nuclear minerals unless the claimant applies for a patent. Adequate information on persons effectively controlling Federal leases for nuclear minerals is recorded by the Department. (e) Adequate information on the progress of development and amount and value of production from Federal leases is obtained through supervision of operations by the Geological Survey. For oil and gas, summary records are widely available on new developments, new completion of wells, the production from all Federal lands and royalty value by county and State. Similar summary records for other leasable energy minerals are available. QUESTION 14 - Does oil and gas exploration, development and production on the Outer Continental Shelf impose a net economic or fiscal burden on the adjacent coastal state? Should this burden, if any, be compensated by granting the coastal states a share of OCS mineral leasing revenues? - ANSWER 14 The arguments have been made that (1) OCS activity has an adverse fiscal impact on the adjacent state(s), (2) mineral production from the OCS does not yield any royalties or severance taxes to state governments, (3) yet the governments of adjacent states and localities must provide public services to OCS workers and their families, and (4) to help pay for these services, OCS revenues should be shared with adjacent states. These arguments ignore the fact the OCS activity currently provides considerable revenues to adjacent states at present. Employees engaged in the various aspects of OCS activity are subject to state income tax, state general and selective sales taxes, state license fees, and state and local property taxes. Businesses located onshore serving offshore facilities are subject to state corporate income taxes, state sales taxes, and state and local property taxes. The question thus becomes one of determining whether the additional state and local revenues attributable to OCS activity exceed or are equal to additional state and local expenditures because of OCS activity and, if not, whether this provides a rationale for sharing OCS revenues to make up the difference. For the average state, it is likely that revenues will exceed or equal expenditures for the following reasons. Offshore workers and onshore workers in support of offshorè facilities have incomes at average to above average levels compared to average per capita and family income in the adjacent states off which OCS activity has occurred. Subsequently, they, on average, pay more per capita in state sales and income taxes than the average resident of the state (these taxes accounted for 84 percent of all state tax collections in 1970). They will also on average pay more personal property tax to local governments. Onshore facilities serving OCS activity are major components of the property tax base of the communities where they are located. Hence, OCS activity provides, in most cases, greater than average shares of state and local revenues. The expenditure picture on the whole is more cloudy since the impact of OCS activity on various state and local functions varies widely. Additional expenditures per capita for education for OCS-associated employees and their families are likely to be slightly greater than the statewide average, given a preponderance of OCS-associated employees with children of school age. Additional expenditures per capita for transportation for OCS activities could be more or less, depending on location. With the exception of most of the Alaskan OCS areas, the OCS areas of the Nation having a high potential for oil and gas production have well developed transportation networks in the coastal regions of the adjacent 85-197 O 73-6 |