The Outer Continental Shelf (OCS) Lands Act, specifically Section 18, mandates the Secretary of the Interior to establish a 5-year schedule for OCS oil and gas lease sales. This schedule, known as the National OCS Oil and Gas Leasing Program (National OCS Program), is developed and administered by BOEM, advising the Secretary on its creation and implementation.
The program focuses on areas deemed appropriate for further analysis by the Secretary, streamlining the process by eliminating unsuitable lease areas early on. This selection is based on OCS Lands Act Section 18 requirements and factors, ensuring the chosen lease sale schedule effectively meets national energy needs while considering various crucial aspects. These include the scale, timing, and geographical placement of lease sales.
The Development Journey of the National OCS Program
-
Request for Information and Comment (RFI)
- This initial phase gathers insights and feedback from all stakeholders across all 26 planning areas.
- Comment Period: 45 days
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Draft Proposed Program (DPP)
- Publication of the DPP document, providing an analysis of all 26 OCS planning areas.
- The Secretary’s Draft Proposal is presented, potentially narrowing down program areas for further leasing consideration.
- A Notice of Intent to prepare a programmatic Environmental Impact Statement (EIS) is also released.
- Comment Period: 60 days
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Proposed Program
- The Proposed Program document, analyzing the Draft Proposal, is made public.
- The Secretary’s Second Proposal is introduced, possibly further refining the program areas.
- Publication of the Draft Programmatic EIS.
- Comment Period: 45 days
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Proposed Final Program (PFP)
- The PFP document, analyzing the Second Proposal, is issued.
- The Secretary’s Final Proposal is presented.
- Publication of the Final Programmatic EIS.
- Waiting Period: 60 days for the President and Congress
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Approval
- The Secretary approves the new National OCS Program, and a combined decision memo and Record of Decision are posted, marking the program’s official adoption.
Integrating NEPA into the National OCS Program
The development of the National OCS Program is closely aligned with the National Environmental Policy Act (NEPA) process. This integration ensures that the robust requirements of Section 18 are met while thoroughly considering environmental impacts.
BOEM undertakes an Environmental Impact Statement (EIS) because many Section 18 requirements and factors are mirrored in NEPA’s guidelines, facilitating a comprehensive and environmentally conscious leasing program.
Post-Approval: Lease Sales and Beyond
For a lease sale to occur, it must be part of an approved National OCS Program. Adding a lease sale to an already approved program requires Congressional action. The decision to proceed with a lease sale is contingent upon sale-specific analysis. Following a sale, BOEM conducts a 90-day review to either accept or reject bids.
A lease grants the rights to explore, develop, and produce oil and gas within the specified lease area. This contractual agreement outlines stipulations for surety bonds, royalties, rental payments, and lease transfers. An oil and gas lease provides a primary term for exploration and development, typically 5 to 10 years based on water depth. Lessees must relinquish the lease if no activity occurs within this timeframe.
BOEM rigorously reviews all exploration, development, and production plans. Upon BOEM approval, the Bureau of Safety and Environmental Enforcement (BSEE) assumes primary oversight for permitting and operational activities, including drilling and production. The figure below illustrates the processes before and after leasing.
Image alt text: Diagram illustrating the pre-lease and post-lease processes in oil and gas development, highlighting key stages and regulatory bodies involved.
The Proposed Final Program (PFP) for 2024–2029, published on September 29, 2023, schedules three potential oil and gas lease sales in the Gulf of America (GOA) Program Area. Approved 60 days after PFP transmittal, this program includes sales in 2025, 2027, and 2029. The Secretary retains the final say on whether, when, and under what conditions these sales are held, including the specific acreage offered.
Key Documents and Information
Program Development: Supplemental Details
The table below offers a detailed breakdown of the 2024–2029 Program development process, including official notices and relevant documents.
2024–2029 National OCS Program: Full Process and Documentation
| Phase | Official Notice | National OCS Program Document | Programmatic Environmental Impact Statement (EIS) | Economic Analysis Methodology Paper | Comment Period Dates | Comment Docket |
|---|---|---|---|---|---|---|
| Request for Information (RFI) | Federal Register NoticeJuly 3, 2017 | July 3, 2017 – August 17, 2017 | BOEM-2017-0050 | |||
| Draft Proposed Program (DPP) and NOI to Prepare a Programmatic EIS | Federal Register Notice of AvailabilityJanuary 8, 2018 | 2019–2024 DPP(includes the Secretary’s Draft Proposal) | January 8, 2018 – March 9, 2018 | BOEM-2017-0074 | ||
| Proposed Program and Draft Programmatic EIS | Federal Register Notice of AvailabilityJuly 8, 2022 | 2023–2028 Proposed Program(includes the Secretary’s Second Proposal) | Draft Programmatic EIS:Volume IVolume II | Draft Economic Analysis Methodology for the 2023–2028 National OCS Program | July 8, 2022 – October 6, 2022 | BOEM-2022-0031 |
| PFP and Final Programmatic EIS | Federal Register Notice of AvailabilityOctober 2, 2023 | 2024–2029 PFP(includes the Secretary’s Final Proposal) | Final Programmatic EIS:Volume IVolume II | Economic Analysis Methodology for the 2024-2029 National OCS Program | ||
| 60-day Waiting Period | ||||||
| Decision Memo and Record of Decision | Program Approval and Record of Decision December 14, 2023 |
Lease Sale Schedule Overview
After a thorough evaluation of Outer Continental Shelf Lands Act Section 18 requirements and factors, along with feedback from governors and the public, the Secretary of the Interior has outlined three potential lease sales within the Gulf of America (GOA) Program Area in the 2024–2029 Proposed Final Program (PFP). Following a 60-day review period after submission to the President and Congress, the 2024–2029 Program was approved. This PFP spans five years, from July 1, 2024, to June 30, 2029, and includes the Western GOA and portions of the Central and Eastern GOA not under presidential withdrawal.
2024–2029 Proposed Final Program Lease Sale Schedule
| Count | Sale Number | Sale Year | OCS Region and Program Area |
|---|---|---|---|
| 1 | 262 | 2025 | Gulf of America: GOA Program Area |
| 2 | 263 | 2027 | Gulf of America: GOA Program Area |
| 3 | 264 | 2029 | Gulf of America: GOA Program Area |
Image alt text: Geographical map depicting the 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Proposed Final Program Area, outlining regions considered for leasing.
For GIS files related to the 2024-2029 Proposed Final Program and further details on lease sale planning, please refer to the provided links.
Requirements and Key Factors in Leasing Decisions
Section 18 of the Outer Continental Shelf (OCS) Lands Act empowers the Secretary of the Interior to define a five-year lease sale schedule. This process involves balancing various factors across OCS regions to identify the most suitable size, timing, and location for OCS lease sales. The aim is to effectively meet both regional and national energy demands while carefully assessing the environmental impacts of oil and gas exploration on marine, coastal, and human environments.
In determining this schedule, the OCS Lands Act mandates consideration of these requirements and factors:
Section 18(a)(1): Consideration of economic, social, and environmental values.
Section 18(a)(2): Factors guiding the size, timing, and location of leasing:
- Ensuring fair distribution of developmental benefits and environmental risks across different regions.
- Utilizing existing geological, geographical, and ecological data of regions.
- Considering regional and national energy market needs in relation to region locations.
- Assessing region locations relative to other sea and seabed uses like fisheries, navigation, sea-lanes, deepwater port sites, and anticipated OCS resource and space utilization.
- Evaluating the expressed interest from potential oil and gas producers.
- Taking into account relevant state laws, goals, and policies as identified by Governors.
- Assessing the relative environmental sensitivity and marine productivity of different OCS areas.
- Utilizing relevant environmental and predictive data for various OCS areas.
Section 18(a)(3): Balancing potential environmental damage, oil and gas discovery prospects, and adverse coastal zone impacts.
Section 18(a)(4): Ensuring fair market value for leased lands and conveyed rights.
The 2024–2029 Proposed Final Program document and Final Programmatic Environmental Impact Statement offer an in-depth analysis of these requirements and factors, providing a comprehensive view of the decision-making process behind the current leasing program.
Frequently Asked Questions About OCS Oil and Gas Leasing
1. What is the role of the Bureau of Ocean Energy Management (BOEM)?
BOEM, a Department of the Interior agency, is responsible for the science-based management of oil and gas, renewable energy, and mineral resources on the Outer Continental Shelf (OCS). BOEM manages thousands of oil and gas leases across millions of OCS acres, predominantly in the Gulf of America. For the latest leasing statistics, visit: https://www.boem.gov/oil-gas-energy/leasing/outer-continental-shelf-lease-sale-statistics
2. What defines the National Outer Continental Shelf Oil and Gas Leasing Program (National OCS Program)?
The National OCS Program is a schedule outlining the size, timing, and location of proposed oil and gas leasing activities. Determined by the Secretary of the Interior, it aims to best meet national energy needs over a five-year period following program approval and implementation.
3. Can you describe BOEM’s environmental review process for the National OCS Program?
BOEM conducts a Programmatic Environmental Impact Statement (Programmatic EIS) under the National Environmental Policy Act (NEPA) to inform the National OCS Program’s development. The Draft Programmatic EIS analyzes potential environmental impacts from the proposed lease sale schedule.
The Final Programmatic EIS assesses environmental impacts based on the Proposed Final Program’s lease sale schedule. The Secretary considers these analyses alongside the Proposed Final Program before issuing the Record of Decision.
Furthermore, BOEM performs NEPA reviews for each lease area before sales, incorporating current data and site-specific analyses. These reviews include public involvement opportunities, with additional comment periods post-publication.
4. What is the significance of a Record of Decision?
A Record of Decision is the conclusive step in the National Environmental Policy Act (NEPA) process for an environmental impact statement. It’s a public document detailing a Federal agency’s decision on a proposed action, based on the prepared EIS. For the 2024–2029 National OCS Program, the Secretary issued a combined decision memo and Record of Decision. The decision memo is mandated by the Outer Continental Shelf Lands Act (OCSLA), while the Record of Decision is required by NEPA.
5. Could you elaborate on DOI’s (BOEM & BSEE) regulatory and inspection program?
After obtaining a lease, companies must submit an exploration plan, subject to BOEM technical and environmental review and BSEE regulatory oversight. For development, a development and production plan undergoes similar review before production can commence. BSEE conducts on-site inspections for major facilities pre-production, often jointly with the U.S. Coast Guard. Compliance with air and water permits is also mandatory. BSEE inspectors perform daily offshore safety and environmental inspections.
6. What is the typical duration of an OCS Oil and Gas lease?
Lease duration varies. Typically, a lease has a 5-year primary term, extendable to 10 years in deep water or adverse conditions, as determined by BOEM and specified in the Notice of Sale.
To extend beyond the primary term, lessees must actively pursue production or demonstrate commercially viable oil and gas production. Once in production, leases can last 40-70 years, contingent on continued profitable production and lease compliance.
7. What actions can Congress or the President take if they disagree with the National OCS Program?
The President and Congress can enact new legislation, or the President can withdraw OCS areas from leasing consideration under Section 12(a) of the OCS Lands Act. Either action could modify the scope of future offshore leasing activities by the US Department of the Interior.
8. Where can I find the historical lease sale data for each National OCS Program?
The first National OCS Program began in 1980 (1980-1985). Sales before 1980 were on an individual basis.
| Program# | Effective Date | Number of Sales* |
|---|---|---|
| 1st | 1980 – 1985 | 36 |
| 2nd | 1982 – 1987 | 41 |
| 3rd | 1987 – 1992 | 37 |
| 4th | 1992 – 1997 | 18 |
| 5th | 1997 – 2002 | 16 |
| 6th | 2002 – 2007 | 20 |
| 7th | 2007 – 2012 | 21 |
| 8th | 2012 – 2017 | 11 |
| 9th | 2017 – 2022 | 11 |
| 10th | 2024 – 2029 | 3 |
Chapter 4 of the 2024-2029 Proposed Final Program document offers detailed leasing history and status for all OCS regions, including summary maps and charts.
*Note: Sales numbers represent the maximum potential sales authorized, not necessarily the number of sales held.
Further Resources
Understanding the National Program Process
Learn more about the National OCS Program process.
Image alt text: Step-by-step diagram outlining the oil and gas leasing process, from initial planning to lease execution and post-lease activities.
Oil & Gas Resource Assessment and Economic Factors
Explore how National Oil & Gas Geologic Resource Assessments identify potential resources and inform National OCS Program decisions. Access materials detailing economic analyses and factors considered in program area evaluations.
Image alt text: Illustration depicting the cycle of oil formation to production, showcasing geological processes and extraction technologies.
Image alt text: Graphic representation of undiscovered oil and gas resources, highlighting potential reserves and exploration areas.
Image alt text: 2021 Fact Sheet providing key data and statistics related to Outer Continental Shelf oil and gas leasing activities and program updates.
Image alt text: Page 001 of a North America resource assessment document, detailing methodologies and findings related to oil and gas resources.
Image alt text: 2021 National Assessment Map visually presenting oil and gas resource distribution across regions with color-coded indicators and updated scales.
Environmental Considerations in OCS Leasing
The Programmatic EIS is developed following NEPA guidelines and the April 2022 revised NEPA regulations. It includes analysis of proposed actions, alternatives, and cumulative and cross-boundary impacts.
Image alt text: Chart illustrating greenhouse gas analysis within the OCS program, showing emissions sources and mitigation strategies.
Image alt text: Page 1 of the BOEM Environment Factsheet, summarizing environmental protection measures and considerations in offshore energy management.
Image alt text: List of resources analyzed as part of the Programmatic Environmental Impact Statement, ensuring comprehensive environmental impact assessment.
Image alt text: Overview of potential environmental impacts associated with the proposed OCS oil and gas leasing program, categorized by impact type.
Image alt text: Analysis of potential environmental impacts specifically resulting from oil spills related to OCS activities, detailing ecological consequences.
Image alt text: Factsheet from BSEE detailing oil spill response, recovery, and preparedness strategies for offshore oil and gas operations.
Image alt text: Diagram illustrating the lifecycle of oil and gas offshore exploration from BSEE perspective, highlighting safety and environmental oversight at each stage.
Public Outreach and Engagement
The OCS Lands Act mandates public comment opportunities in the National OCS Program development. In 2022, BOEM conducted Virtual Open House Public Meetings to facilitate discussions and answer questions.
Image alt text: Flowchart outlining the structure and process of the National Program Virtual Open House and Public Meetings, emphasizing interactive engagement.
National OCS Program Cycles Over the Years
| Cycle | Program years | Effective dates |
|---|---|---|
| 1 | 1980 – 1985 | June 1, 1980–May 31, 1985(remanded October 6, 1981; replaced with 1982–1987 Program) |
| 2 | 1982 – 1987 | July 21, 1982–June 30, 1987 |
| 3 | 1987 – 1992 | July 1, 1987–June 30, 1992 |
| 4 | 1992 – 1997 | July 1, 1992–June 30, 1997 |
| 5 | 1997 – 2002 | July 1, 1997–June 30, 2002 |
| 6 | 2002 – 2007 | July 1, 2002–June 30, 2007 |
| 7 | 2007 – 2012 | July 1, 2007–June 30, 2012(remanded April 17, 2009; revised 2007–2012 Program effective December 1, 2010) |
| 8 | 2012 – 2017 | August 27, 2012–August 26, 2017 |
| 9 | 2017 – 2022 | July 1, 2017–June 30, 2022 |
| 10 | 2024 – 2029 | July 1, 2024, – June 30, 2029 |
