MMS Releases New Alternative Ocean Energy Program Details

In support of its proposal, MMS released a Programmatic Environmental Impact Statement ("PEIS") examining potential environmental effects of such a program. The PEIS focuses on wind and wave technologies in water less than 100 meters deep, and ocean current technologies in water less than 500 meters deep. The PEIS will be used to guide the further development of the AEAU program. MMS will issue a "notice of proposed rulemaking" later this year concerning its adoption of lease sale rules for the AEAU program. MMS is optimistic that rulemaking will be complete by late 2008, but this date may slip.

MMS also announced and is soliciting comments on an interim policy on leases for the collection of meteorological or marine data in the OCS and facilities designed to test wave and ocean-current technologies. This interim policy does not apply to facilities generating power for sale or distribution for compensation, and also excludes offshore wind turbine technology testing. The interim policy does not establish priorities for particular sites; developers must go through an additional lease acquisition process before developing a commercial site. The interim policy would require a developer to apply for a five-year lease, which will govern the construction, operation and removal of the testing facility. If MMS determines that there is competition for a particular site, it is required by existing law to hold a competitive sale for these leases. MMS has proposed a lease amount of about $3 per acre per year, and has noted that bonding requirements for removal will depend on an individual installation, but may be in the amount of $300,000. These leases will also be subject to other existing laws such as the National Environmental Policy Act, the Coastal Zone Management Act, the Endangered Species Act, the Marine Mammal Protection Act, the Rivers and Harbors Act, and the Clean Water Act, as well as applicable Coast Guard and other agency requirements.

MMS is requesting the following additional information from the public on its interim policy:

1. Whether parties are interested in acquiring leases to collect meteorological or marine data and, if so, for what types of technologies and in what areas.

    

2. Whether parties would be willing to collaborate with other developers in assessing similar geographic areas.

    

3. What developers see as an appropriate lease term for facilities designed to collect meteorological or marine data.

    

4. How much acreage should be authorized for wind, wave, and current assessment activities?

    

5. How MMS should define technology testing activities, and whether technology testing leases should accommodate projects that require a transmission cable to connect to shore.

Parties interested in commenting on the interim policy must do so by January 7, 2008.

For more information, contact Ashley Henry, Energy Industry Liaison, 503-294-9506 or ahenry@stoel.com