Virginia s Experience with Offshore Energy Planning
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1 Virginia s Experience with Offshore Energy Planning David Spears State Geologist Commonwealth of Virginia Department of Mines, Minerals and Energy
2 Present Situation Special Interest Oil and Gas Lease Sale 220 tentatively scheduled for 2011 Sale is inconsistent with Virginia state policy Two offshore wind energy proposals are on the table and supported by Governor Kaine
3 Brief History Part 1 Atlantic Outer Continental Shelf 10 Oil & Gas Lease Sales ( ) 50 wells drilled ( ) Discoveries Offshore NJ: 8 wells encountered natural gas 5 were flow-tested 3 also encountered condensate Quantities found were not economically viable at that time.
4 Brief History Part 2 Congressional Moratorium Began offshore California and was progressively expanded Withheld any funds to be used for lease sales in exclusion areas, including the entire Atlantic OCS Renewed annually with federal budget Effectively shut down any Atlantic leasing and drilling
5 Brief History Part 3 Executive Withdrawal Executive order to Dept. of Interior by President George H.W. Bush No further preleasing or leasing activity in the OCS (except TX, LA, AL, part of AK) Originally set to expire in Extended to 2012 by President Clinton
6 Natural Gas Price by Month
7 Development of Virginia s Offshore Energy Policy March 2005 HJR 625 directs the Va Secretary of Commerce and Trade to study the possibility of exploring for natural gas in coastal areas of the Commonwealth. Summer 2005 Secretary Schewel convenes advisory group January 2006 Publication of HD 22
8 Key Findings of HD 22 While this study finds that Virginia OCS offshore exploration of natural gas and, perhaps, other hydrocarbon resources can be safely undertaken with the proper controls, such activity must be one part of a comprehensive response to our energy needs.
9 Key Findings of HD 22 Virginia, if given the opportunity, should allow exploration of natural gas in its OCS areas contingent on the conditions set forth below
10 Conditions Specified in HD 22 Need broad-based energy policy emphasizing efficiency Ample opportunity for public involvement If oil is discovered, carefully consider risk of spills Must protect environment and public safety No drilling closer than 50 miles to shore All facilities must be consistent with local zoning and Virginia Coastal Zone Program requirements
11 Spring 2006 SB 262 State Senator Frank Wagner Calls for drafting of Virginia Energy Plan within 18 months Codifies Virginia s policy on offshore energy, drawing heavily on recommendations of HD 22
12 Virginia s Offshore Energy Policy - Gas and Oil Code of Virginia Supports federal efforts to determine extent of natural gas resources Only exploration 50 miles or more from shore Inclusion of all Atlantic planning areas
13 Virginia s Offshore Energy Policy - Wind Energy Code of Virginia to support federal efforts to examine the feasibility of offshore wind energy being utilized in an environmentally responsible fashion.
14 Meanwhile, the MMS was busy August 2005 Request for Comments on preparation of new Five-Year Oil and Gas Leasing Program, February 2006 Release of Draft Proposed Program with Request for Comments and Notice of Intent to Prepare Environmental Impact Statement
15 Further Development of the Five-Year Program August 2006 Proposed Program and Draft EIS issued February 2007 Proposed Final Program and Final EIS issued July 2007 New Five-Year Program for becomes effective
16 PFP Map
17 Proposed Sale 220 area
18 Surprise Events, 2008 July - President Bush rescinds the Executive Withdrawal September - Congress allows their moratorium to expire Yikes!!!!!!!!
19 MMS Response to Recent Developments August 2008 Request for Comments on new Five- Year Oil and Gas Leasing Program November 2008 Call for Information and Interest/Nominations and Notice of Intent to Prepare an EIS for Special Interest Sale 220 January 2009 MMS Releases Draft Proposed Program for with 90-day comment period February 2009 Secretary of Interior Salazar extends comment period by 180 days
20 Map for DPP
21 Proposed wind energy projects
22 Conclusions Virginia s Experience It s helpful to have an official state policy The MMS is responsive to state concerns, to the degree they are authorized by OCSLA For federal regulators to be more fully responsive to state concerns, Congress needs to amend OCSLA
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