§ 1351. — Oil and gas development and production.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 43USC1351]
TITLE 43--PUBLIC LANDS
CHAPTER 29--SUBMERGED LANDS
SUBCHAPTER III--OUTER CONTINENTAL SHELF LANDS
Sec. 1351. Oil and gas development and production
(a) Development and production plans; submission to Secretary; statement
of facilities and operation; submission to Governors of affected
States and local governments
(1) Prior to development and production pursuant to an oil and gas
lease issued after September 18, 1978, in any area of the outer
Continental Shelf, other than the Gulf of Mexico, or issued or
maintained prior to September 18, 1978, in any area of the outer
Continental Shelf, other than the Gulf of Mexico, with respect to which
no oil or gas has been discovered in paying quantities prior to
September 18, 1978, the lessee shall submit a development and production
plan (hereinafter in this section referred to as a ``plan'') to the
Secretary, for approval pursuant to this section.
(2) A plan shall be accompanied by a statement describing all
facilities and operations, other than those on the outer Continental
Shelf, proposed by the lessee and known by him (whether or not owned or
operated by such lessee) which will be constructed or utilized in the
development and production of oil or gas from the lease area, including
the location and site of such facilities and operations, the land,
labor, material, and energy requirements associated with such facilities
and operations, and all environmental and safety safeguards to be
implemented.
(3) Except for any privileged or proprietary information (as such
term is defined in regulations issued by the Secretary), the Secretary,
within ten days after receipt of a plan and statement, shall (A) submit
such plan and statement to the Governor of any affected State, and, upon
request to the executive of any affected local government, and (B) make
such plan and statement available to any appropriate interstate regional
entity and the public.
(b) Development and production activities in accordance with plan as
lease requirement
After September 18, 1978, no oil and gas lease may be issued
pursuant to this subchapter in any region of the outer Continental
Shelf, other than the Gulf of Mexico, unless such lease requires that
development and production activities be carried out in accordance with
a plan which complies with the requirements of this section.
(c) Scope and contents of plan
A plan may apply to more than one oil and gas lease, and shall set
forth, in the degree of detail established by regulations issued by the
Secretary--
(1) the specific work to be performed;
(2) a description of all facilities and operations located on
the outer Continental Shelf which are proposed by the lessee or
known by him (whether or not owned or operated by such lessee) to be
directly related to the proposed development, including the location
and size of such facilities and operations, and the land, labor,
material, and energy requirements associated with such facilities
and operations;
(3) the environmental safeguards to be implemented on the outer
Continental Shelf and how such safeguards are to be implemented;
(4) all safety standards to be met and how such standards are to
be met;
(5) an expected rate of development and production and a time
schedule for performance; and
(6) such other relevant information as the Secretary may by
regulation require.
(d) State concurrence in land or water zone use in coastal zone of State
The Secretary shall not grant any license or permit for any activity
described in detail in a plan and affecting any land use or water use in
the coastal zone of a State with a coastal zone management program
approved pursuant to section 306 of the Coastal Zone Management Act of
1972 (16 U.S.C. 1455), unless the State concurs or is conclusively
presumed to concur with the consistency certification accompanying such
plan pursuant to section 307(c)(3)(B)(i) or (ii) of such Act [16 U.S.C.
1456(c)(3)(B)(i) or (ii)], or the Secretary of Commerce makes the
finding authorized by section 307(c)(3)(B)(iii) of such Act [16 U.S.C.
1456(c)(3)(B)(iii)].
(e) Declaration of approval of development and production plan as major
Federal action; submission of preliminary or final lease plans
prior to commencement of National Environmental Policy
provisions procedures
(1) At least once the Secretary shall declare the approval of a
development and production plan in any area or region (as defined by the
Secretary) of the outer Continental Shelf, other than the Gulf of
Mexico, to be a major Federal action.
(2) The Secretary may require lessees of tracts for which
development and production plans have not been approved, to submit
preliminary or final plans for their leases, prior to or immediately
after a determination by the Secretary that the procedures under the
National Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] shall
commence.
(f) Plans considered major Federal actions; submission of draft
environmental impact statement to Governors of affected States
and local governments
If approval of a development and production plan is found to be a
major Federal action, the Secretary shall transmit the draft
environmental impact statement to the Governor of any affected State,
and upon request, to the executive of any local government, and shall
make such draft available to any appropriate interstate regional entity
and the public.
(g) Plans considered nonmajor Federal actions; comments and
recommendations from States
If approval of a development and production plan is not found to be
a major Federal action, the Governor of any affected State and the
executive of any affected local government shall have sixty days from
the date of receipt of the plan from the Secretary to submit comments
and recommendations. Prior to submitting recommendations to the
Secretary, the executive of any affected local government must forward
his recommendations to the Governor of his State. Such comments and
recommendations shall be made available to the public upon request. In
addition, any interested person may submit comments and recommendations.
(h) Approval, disapproval or modification of plan; reapplication;
periodic review
(1) After reviewing the record of any public hearing held with
respect to the approval of a plan pursuant to the National Environmental
Policy Act of 1969 [42 U.S.C. 4321 et seq.] or the comments and
recommendations submitted under subsection (g) of this section, the
Secretary shall, within sixty days after the release of the final
environmental impact statement prepared pursuant to the National
Environmental Policy Act of 1969 in accordance with subsection (e) of
this section, or sixty days after the period provided for comment under
subsection (g) of this section, approve, disapprove, or require
modifications of the plan. The Secretary shall require modification of a
plan if he determines that the lessee has failed to make adequate
provision in such plan for safe operations on the lease area or for
protection of the human, marine, or coastal environment, including
compliance with the regulations prescribed by the Secretary pursuant to
paragraph (8) of section 1334(a) of this title. Any modification
required by the Secretary which involves activities for which a Federal
license or permit is required and which affects any land use or water
use in the coastal zone of a State with a coastal zone management
program approved pursuant to section 306 of the Coastal Zone Management
Act of 1972 (16 U.S.C. 1455) must receive concurrence by such State with
respect to the consistency certification accompanying such plan pursuant
to section 307(c)(3)(B)(i) or (ii) of such Act [16 U.S.C.
1456(c)(3)(B)(i) or (ii)] unless the Secretary of Commerce makes the
finding authorized by section 307(c)(3)(B)(iii) of such Act [16 U.S.C.
1456(c)(3)(B)(iii)]. The Secretary shall disapprove a plan--
(A) if the lessee fails to demonstrate that he can comply with
the requirements of this subchapter or other applicable Federal law,
including the regulations prescribed by the Secretary pursuant to
paragraph (8) of section 1334(a) of this title;
(B) if any of the activities described in detail in the plan for
which a Federal license or permit is required and which affects any
land use or water use in the coastal zone of a State with a coastal
zone management program approved pursuant to section 306 of the
Coastal Zone Management Act of 1972 (16 U.S.C. 1455) do not receive
concurrence by such State with respect to the consistency
certification accompanying such plan pursuant to section
307(c)(3)(B)(i) or (ii) of such Act [16 U.S.C. 1456(c)(3)(B)(i) or
(ii)] and the Secretary of Commerce does not make the finding
authorized by section 307(c)(3)(B)(iii) of such Act [16 U.S.C.
1456(c)(3)(B)(iii)];
(C) if operations threaten national security or national
defense; or
(D) if the Secretary determines, because of exceptional
geological conditions in the lease areas, exceptional resource
values in the marine or coastal environment, or other exceptional
circumstances, that (i) implementation of the plan would probably
cause serious harm or damage to life (including fish and other
aquatic life), to property, to any mineral deposits (in areas leased
or not leased), to the national security or defense, or to the
marine, coastal or human environments, (ii) the threat of harm or
damage will not disappear or decrease to an acceptable extent within
a reasonable period of time, and (iii) the advantages of
disapproving the plan outweigh the advantages of development and
production.
(2)(A) If a plan is disapproved--
(i) under subparagraph (A) of paragraph (1); or
(ii) under subparagraph (B) of paragraph (1) with respect to a
lease issued after approval of a coastal zone management program
pursuant to the Coastal Zone Management Act of 1972 (16 U.S.C.
1455),
the lessee shall not be entitled to compensation because of such
disapproval.
(B) If a plan is disapproved--
(i) under subparagraph (C) or (D) of paragraph (1); or
(ii) under subparagraph (B) of paragraph (1) with respect to a
lease issued before approval of a coastal zone management program
pursuant to the Coastal Zone Management Act of 1972 [16 U.S.C. 1451
et seq.], and such approval occurs after the lessee has submitted a
plan to the Secretary,
the term of the lease shall be duly extended, and at any time within
five years after such disapproval, the lessee may reapply for approval
of the same or a modified plan, and the Secretary shall approve,
disapprove, or require modifications of such plan in accordance with
this subsection.
(C) Upon expiration of the five-year period described in
subparagraph (B) of this paragraph, or, in the Secretary's discretion,
at an earlier time upon request of a lessee, if the Secretary has not
approved a plan, the Secretary shall cancel the lease and the lessee
shall be entitled to receive compensation in accordance with section
1334(a)(2)(C) of this title. The Secretary may, at any time within the
five-year period described in subparagraph (B) of this paragraph,
require the lessee to submit a development and production plan for
approval, disapproval, or modification. If the lessee fails to submit a
required plan expeditiously and in good faith, the Secretary shall find
that the lessee has not been duly diligent in pursuing his obligations
under the lease, and shall immediately initiate procedures to cancel
such lease, without compensation, under the provisions of section
1334(c) of this title.
(3) The Secretary shall, from time to time, review each plan
approved under this section. Such review shall be based upon changes in
available information and other onshore or offshore conditions affecting
or impacted by development and production pursuant to such plan. If the
review indicates that the plan should be revised to meet the
requirements of this subsection, the Secretary shall require such
revision.
(i) Approval of revision of approved plan
The Secretary may approve any revision of an approved plan proposed
by the lessee if he determines that such revision will lead to greater
recovery of oil and natural gas, improve the efficiency, safety, and
environmental protection of the recovery operation, is the only means
available to avoid substantial economic hardship to the lessee, or is
otherwise not inconsistent with the provisions of this subchapter, to
the extent such revision is consistent with protection of the human,
marine, and coastal environments. Any revision of an approved plan which
the Secretary determines is significant shall be reviewed in accordance
with subsections (d) through (f) of this section.
(j) Cancellation of lease on failure to submit plan or comply with
approved plan
Whenever the owner of any lease fails to submit a plan in accordance
with regulations issued under this section, or fails to comply with an
approved plan, the lease may be canceled in accordance with section
1334(c) and (d) of this title. Termination of a lease because of failure
to comply with an approved plan, including required modifications or
revisions, shall not entitle a lessee to any compensation.
(k) Production and transportation of natural gas; submission of plan to
Federal Energy Regulatory Commission; impact statement
If any development and production plan submitted to the Secretary
pursuant to this section provides for the production and transportation
of natural gas, the lessee shall contemporaneously submit to the Federal
Energy Regulatory Commission that portion of such plan which relates to
production of natural gas and the facilities for transportation of
natural gas. The Secretary and the Federal Energy Regulatory Commission
shall agree as to which of them shall prepare an environmental impact
statement pursuant to the National Environmental Policy Act of 1969 [42
U.S.C. 4321 et seq.] applicable to such portion of such plan, or conduct
studies as to the effect on the environment of implementing it.
Thereafter, the findings and recommendations by the agency preparing
such environmental impact statement or conducting such studies pursuant
to such agreement shall be adopted by the other agency, and such other
agency shall not independently prepare another environmental impact
statement or duplicate such studies with respect to such portion of such
plan, but the Federal Energy Regulatory Commission, in connection with
its review of an application for a certificate of public convenience and
necessity applicable to such transportation facilities pursuant to
section 717f of title 15, may prepare such environmental studies or
statement relevant to certification of such transportation facilities as
have not been covered by an environmental impact statement or studies
prepared by the Secretary. The Secretary, in consultation with the
Federal Energy Regulatory Commission, shall promulgate rules to
implement this subsection, but the Federal Energy Regulatory Commission
shall retain sole authority with respect to rules and procedures
applicable to the filing of any application with the Commission and to
all aspects of the Commission's review of, and action on, any such
application.
(l) Application of provisions to leases in Gulf of Mexico
The Secretary may require the provisions of this section to apply to
an oil and gas lease issued or maintained under this subchapter, which
is located in that area of the Gulf of Mexico which is adjacent to the
State of Florida, as determined pursuant to section 1333(a)(2) of this
title.
(Aug. 7, 1953, ch. 345, Sec. 25, as added Pub. L. 95-372, title II,
Sec. 208, Sept. 18, 1978, 92 Stat. 659.)
References in Text
The National Environmental Policy Act of 1969, referred to in
subsecs. (e)(2), (h)(1), and (k), is Pub. L. 91-190, Jan. 1, 1970, 83
Stat. 852, as amended, which is classified generally to chapter 55
(Sec. 4321 et seq.) of Title 42, The Public Health and Welfare. For
complete classification of this Act to the Code, see Short Title note
set out under section 4321 of Title 42 and Tables.
The Coastal Zone Management Act of 1972, referred to in subsec.
(h)(2)(A)(ii), (B)(ii), is title III of Pub. L. 89-454, as added by Pub.
L. 92-583, Oct. 27, 1972, 86 Stat. 1280, as amended, which is classified
generally to chapter 33 (Sec. 1451 et seq.) of Title 16, Conservation.
For complete classification of this Act to the Code, see Short Title
note set out under section 1451 of Title 16 and Tables.
