5. Possible Environmental Impacts from OCS Oil and Gas

Development Resulting from Implementation of the

Five-Year Lease Schedule

The environmental impact which would result from implementa

tion of the five-year lease schedule can be estimated with fair accuracy only after specific factors related to each sale are known. For example, at least the following information is needed: (a) location of tracts in relation to resources, shipping lanes, recreation areas, refuges, etc., (b) type of expected production, e.g., oil or gas, (c) geologic formations, (d) water depths, (e) expected terminal points for pipelines, and (f) expected size and location of required new storage facilities.

This is so

In general, it can be assumed that future impacts of OCS oil and gas lease sales, both favorable and unfavorable, will be greater on the environment, on other industries, and on communities in areas where no previous OCS oil and gas leasing has been undertaken. because new pipelines and storage facilities must be built, relationships must be developed between existing industries, (i.e., fishing and the oil and gas industry), and new labor forces and new payrolls will be introduced to the area. Conversely, incremental impacts, both positive and negative, will be less offshore Louisiana and Texas where offshore and nearby onshore production has been in existence for many

years.

The general impacts expected to result from the implementation of the five-year schedule are expected to be similar to those described in this statement for the proposed Texas OCS lease sale #34.

Having determined through development of the tentative five

year schedule, the timing, size, and location of a specific lease sale, it must be determined which tracts should be offered in the sale. The first step leading toward the selection of tracts is that reports (43 CFR 3300.2) are requested and received from the U.S. Geological Survey on the general geology and potential mineral resources of the proposed area and from other interested Federal and state agencies regarding other resources, environmental conditions and the effect of mineral operations on the resources and the total environment. A call for nominations of tracts is then issued by the Department.

Industry

With

responds by nominating tracts in which they are interested. improved seismic, geologic and economic data on the specific sale under consideration, the Department analyzes the past leasing history of tracts under consideration and the nominations themselves and make an

initial identification of tracts to be included in the sale.

1. Responsibilities and Procedures

Responsibility for the initial selection of tracts lies

with the field offices of the Bureau of Land Management (BLM) and the U.S. Geological Survey (GS) under guidance as to Departmental policy and objectives furnished by the respective Washington offices.

BLM and GS also consider recommendations by the Bureau of Sport

Fisheries and Wildlife regarding limitations on permits for exploration and mineral development.

a.

BLM-New Orleans Office (NO) is responsible for furnishing the historical and current leasing status of all tracts nominated and their

location with respect to fairways, anchorage, and warning areas, and pipelines. BLM-NO makes preliminary selection of tracts based on the following general considerations:

(1) The extent of industry interest as indicated by

the number and pattern of nominations.

(2) Past leasing history of the area.

(3) General geological and geophysical data from GS

and other sources.

(4)

Environmental considerations based on research

results presented by the New Orleans Office's Environ

mental Assessment Team.

(5) Analysis of estimated potential for oil and gas

production.

(6) Economic considerations.

(7) A thorough analysis of the resources of the area
and an initial evaluation of the potential impact on
each individual resource from oil and gas exploration,
drilling, and producing operations.

(8) Special considerations such as mix of tracts by

water depths and distance from shore.

GS-NO is responsible for furnishing technical information including geological, geophysical, engineering, and paleontological

information in determination of tracts to be recommended for selection. GS-NO identifies tracts based on the following criteria: need to initiate leasing in rank wildcat areas from a geologic standpoint; drainage tracts or those in imminent danger of drainage; tracts from which companies have presented data for GS inspection and evaluation demonstrating their necessity and desirability for further development; tracts which are most prospective for production; other tracts susceptible to prompt drilling and development.

C. The Regional Office of BSF&W reviews all the tracts under consideration for the potential effect on fish and wildlife resources and advises BLM-NO accordingly.

d. The Washington Office of BLM and GS furnish guidelines which flow from the Departmental objectives: orderly and timely resource development, protection of the marine environment and receipt of fair market value for leased marine resources. These guidelines include but are not limited to: recommended size of sale; tracts or areas for special consideration; and information relative to Administrative or Departmental policy. The Washington Office also reviews the joint recommendation of tracts submitted by the BLM and GS field offices

for conformity with these objectives and guidelines.

2. Purpose of the Tract Selection Process

It is intended that by this initial tract selection pro

cess, tracts which have the highest geological potential normally will

be selected. In response to the Department's call for nominations for the Texas general sale, 40 oil companies nominated approximately 3.8 million acres. From this total, a list of 245 tracts comprising over 1,355,00 acres was initially constructed in accordance with the process described above for further detailed environmental analysis. Additional information concerning the initial tract selection process for the proposed Texas sale is contained in Section VIII. A.

BLM is charged with responsibility for assessment of the impacts on the environment which may occur as a result of leasing operations. The collection of environmental data begins with analysis of preliminary resource reports which are prepared for the overall sale area. The next major stage is the preparation of an environmental report to the GS Manager prior to tract selection. This report is prepared by the Environmental Assessment Team specifically to insure that tracts tentatively selected have been reviewed for potential environmental hazards in the event of their later development.

After completion of tract selection procedures, BLM prepares a draft environmental impact statement, soliciting a wide spectrum of views from Federal, state and local agencies, and the public. This environmental statement evaluates the potential effect of the proposed lease sale on all components of the environment of the entire area during exploration, development and operational phases. Pertinent published and unpublished resource reports and evaluations are reviewed and