Q. What is the Minerals Management Service (MMS)?

A. The MMS is the Federal agency responsible for managing the mineral resources (such as oil and natural gas) in Federal waters offshore the United States and for collecting and disbursing the revenues from the production of these resources. In managing the offshore oil and gas resources, the MMS conducts environmental studies, issues leases, and regulates operations conducted on the Outer Continental Shelf (OCS). The regulatory responsibilities include issuing permits for oil and gas exploration, development, and production and inspecting operations during all of these activities. The MMS manages the offshore mineral resources in concert with other Federal, State, and local agencies and in consultation with the public.

Q. What is the OCS?

A. Under United States law, the term Outer Continental Shelf (OCS) refers to all submerged lands lying seaward of State offshore lands. Generally referred to as "Federal waters,” the OCS encompasses the seabed and subsoil in which natural resources of vital importance to the Nation are found: nearly 17 percent of our oil reserves, 25 percent of our natural gas reserves, and resources of commercially important minerals including manganese, gold, phosphorite, and construction aggregates. In 1945, because of the potential value of such minerals, President Truman proclaimed that the Federal Government had jurisdiction over all offshore resources, from the coastline seaward, and a 1947 Supreme Court case essentially upheld the Truman Proclamation and the claims of the Federal Government.

However, in 1953, Congress passed and President Eisenhower signed the Submerged Lands Act which established natural resource jurisdiction seaward out to 3 geographical miles for practically all coastal States, including California. The seabed and subsoil resources landward of this offshore State/Federal boundary are managed by the State. Offshore mineral resources in the 3-mile band of California State waters (or Tidelands, as it is referred to in the State) are managed by the California State Lands Commission and the California Division of Oil, Gas, and Geothermal Resources. In the cases of Texas and the Gulf of Mexico coast of Florida, because those States had established larger offshore submerged land areas before achieving statehood, State waters extend to 3 marine leagues (about 9 miles).

A few months after enactment of the Submerged Lands Act, the Outer Continental Shelf Lands Act (OCSLA) was passed and signed into law. The OCS law provides the Secretary of the Interior, on behalf of the Federal Government, with authority to manage the mineral resources, including oil and gas, on the OCS and defines the OCS as all submerged lands lying seaward of the State/Federal boundary. The seaward extent of the OCS was not made clear by the OCSLA. However, it is limited by international law which extends the OCS to 200 nautical miles seaward from the coastline but does not take into consideration the State/Federal boundary. In effect, therefore, under the OCSLA and international law, the Federal OCS begins at the State submerged lands line and extends seaward at least another 197 nautical miles. This overall 200 mile legal definition of a coastal Nation's OCS is referred to as its Exclusive Economic Zone (EEZ).

However, the OCS may extend beyond 200 miles if the outer limits of the coastal margin, as measured by certain geological concepts, go past that boundary. Depending on factors such as sediment thickness and water depth, the geologic continental margin can extend for hundreds of miles from shore. There are about a dozen nations, including the United States, which have continental shelves that extend beyond 200 miles. In the U.S., broad geological margins extend beyond 200 miles north of Alaska, on the Atlantic coast, and in the Gulf of Mexico. In the Pacific, however, the continental margin is narrow and thus the U.S. claims natural resource jurisdiction only to the seaward extent of its west coast EEZ, 200 nautical miles from California, Washington, and Oregon.

Q. Why drill offshore?

A. Efforts to develop and expand the use of viable alternatives continue. However, regardless of the extent of these efforts, natural gas and oil will remain the primary sources of reliable energy well into the next century.

California is a major consumer of petroleum products and ranks among the top five oil consumers, worldwide. (Others include: the United States as a whole, the Commonwealth of Independent States [former Soviet Union], Japan, and Germany.) Sixty percent of California's energy use is based on oil and another 30 percent on natural gas. California produces about 45 percent of the oil it consumes (20 percent of which is produced offshore), and onshore production is declining.

Natural gas is a clean source of energy, and the gas produced offshore Ventura and Santa Barbara Counties is used locally to heat homes and offices. The OCS platforms off California have produced over three times as much gas as used by the residential users in Ventura, Santa Barbara, and San Luis Obispo Counties.

Q. How much oil is spilled or "leaked" from OCS natural gas and oil operations?

A. In 1969, a Federal platform offshore Santa Barbara experienced a blowout in one of its wells; an estimated 80,000 barrels (3,360,000 gallons) or oil was released into the ocean. The result of this incident was at least twofold: (1) the environmental conscience of the Nation was raised and the National Environmental Policy Act and other environmental legislation was passed and (2) requirements for safety devices imposed by the Federal Government forever changed offshore operations. There has not been a spill of this size from OCS operations since the Santa Barbara spill. 

OCS operations are carefully conducted and regulated to ensure safe and environmentally sound operations.  Since the tragic oil spill in Santa Barbara in 1969, about 833 barrels of oil have been spilled as a result of OCS natural gas and oil operations offshore California.  This spillage represents the cumulative loss from cups or a barrel at any given time, but for a 150 barrel spill from a pipeline in State waters carrying exclusively OCS production to shore.  The California nearshore and coastal areas are replete with natural seeps.  It is estimated that over 1,000 barrels of oil each week are released into the environment from these seeps.  (From the Coal Oil Point seeps alone, almost 200 barrels a day may be entering the ocean.)  There is some evidence that commercial production of the reservoirs offshore has reduced the amount of oil that would naturally seep into the marine environment by reducing pressure in the reservoirs.

Q. Who makes sure that the oil companies operate safely and do not pollute?

A. The companies are held responsible for safety to the environment and employees. Nevertheless, every day of the year, MMS inspectors are offshore scrutinizing drilling and production operations to ensure that the operations are being conducted safely and that the environment is protected. The MMS inspectors conduct unannounced inspections on each facility on a routine basis and inspect each facility offshore California at least once a week. Furthermore, there is an extensive annual inspection of each facility sometimes lasting 2-3 weeks, depending on the complexity of the facility.

Any violation found is reported and resolution pursued to ensure that corrective action is taken. The MMS has broad powers of enforcement and can require extreme measures, such as facility shutdowns and civil penalties, if warranted. Any violation which does or could result in loss of life or environmental damage is considered serious and is reviewed for civil penalty assessment.

Q. Why not move the platforms further offshore where they cannot be seen?

A. The platforms have to be located where the oil is. Oil occurs and accumulates where there are thick sedimentary rocks. Off California, this occurs in the nearshore basins. In recent years, the extended-reach well technology has improved markedly, resulting in the ability to use fewer platforms for the recovery of resources.  In the Santa Barbara Channel, for example, ExxonMobil is using this technology to produce oil from 4 1/2 miles away from the wellhead on Platform Hondo.  ExxonMobil is now producing the Sacate field using extended-reach well technology, obviating the need for an additional platform.   As this technology improves, additional production from existing facilities becomes more promising.

Q. Where does tar on the beach come from?

A. Oil, tar, and gas seeps are common along the California coast. These seeps are part of the natural environment, and geological and archeological evidence shows that seepage has occurred throughout California for thousands of years. Scientists have found that seepage from one of the largest seeps known offshore Coal Oil Point ranged from 150-170 barrels per day. At least 2,000 active oil and gas seeps have been mapped in waters offshore California.

Q. What is a geophysical/seismic survey?

A. Geophysical/seismic surveying is a method of mapping below the seafloor using sound waves. The sound waves, typically made with bursts of compressed air, are reflected back from rock layers below the seafloor and are recorded. Geophysicists use these data to look for potential oil and gas resources.

One of the concerns expressed in the past when seismic surveys are proposed are the effects on marine mammals. While there are only limited data available to evaluate the effects from this noise on marine mammals, seismic surveys cover thousands of survey miles yearly throughout the world oceans, with no reported effects on marine mammal numbers or distribution in the surveyed areas. The National Marine Fisheries and other marine mammal researchers continue to study this issue. In the interim, to reduce the chance of impacts on marine mammals, proper precautions are being taken. For example, the survey companies take several precautionary measures in their operations to provide additional assurance that the animals will not be harmed. One such measure is shutting down the survey operation when marine mammals are in the vicinity.

Q. What is drilling mud? Is it toxic?

A. Drilling mud is literally a mud which is pumped down the hole when a well is drilled. The mud serves several important functions including providing a way to remove displaced rock fragments (called drill cuttings) from the hole and keeping the equipment in the hole cool while drilling. Because mud is typically disposed of into the ocean, the components (ingredients) of the mud are carefully monitored and their effects studied.

Drilling mud is not poisonous, but it is referred to as "toxic." Mud is made up primarily of clay, barium sulfate, and water, with water making up about 90% of the mixture. Because the materials used to make the mud are taken from onshore sites, they can contain minerals and impurities that are not commonly found on the ocean floor where it is disposed. Additives that once were added to mud and found to have been harmful, such as chromium, have been banned. Animals and plants in the water column adjacent to a drilling operation may be adversely affected by the increased turbidity of the water caused by the mud.

Extensive studies have been conducted to monitor the potential impacts to the environment from discharge of drilling muds. To date, these studies have found that effects are short-lived and confined to a localized area around the platform. Studies to determine subtle, long-term effects caused by drilling muds have been inconclusive; effects of muds cannot be distinguished from other changes in the environment.

Q. What are the potential impacts to the sea otter from oil?

A. Sea otters are the marine mammals most vulnerable to oiling. The sea otters in California were given "threatened species" status due to their proximity to marine terminals in northern California and their risk from spills. A small amount of fur oiling or ingestion of oil can result in mortality. A permanent site has been established at University of California at Santa Cruz to clean and rehabilitate sea otters should they be oiled in a spill from any source. The MMS has funded a number of studies to refine clean-up techniques. The studies results were shared with those responding to the Valdez tanker accident and were used as the basis of response to the oiled animals. A handbook on the emergency care and rehabilitation of oiled sea otters has been published as a result of MMS-funded studies.

Q. Where do whales migrate offshore?

A. Most of the major whale species migrate between their feeding grounds, which lie as far north as the Bering Sea, and their breeding areas offshore Mexico and Central America. On their migrations, whales pass along the California coast at varying distances from shore. Gray whales migrate closest to shore and generally pass through the Santa Barbara Channel during their migration. While oil and natural gas activities have been raised as a concern both in terms of potential noise and oil impacts, studies to date indicate that oil activities do not appear to adversely affect the whale populations or their migration. The activities of whales continue to be monitored so that impacts can be detected and avoided.

Q. How much do OCS facilities contribute to air pollution?

A. The OCS oil and gas platforms offshore California contribute approximately 3% of the total emissions in the tri-county area (Ventura, Santa Barbara, and San Luis Obispo Counties). The Clean Air Act Amendments of 1990 transferred control of OCS air quality from the MMS to the EPA, which delegated regulatory authority to local air agencies. Rigorous controls to minimize emissions from Pacific OCS platform operations have been instituted by the local air agencies. On all the platforms, Fugitive Emission Inspection and Maintenance programs to eliminate hydrocarbon emissions resulting from leaking valve and flanges on the facilities are in place. The platforms also have permanent control technologies in place for all non-standby combustion equipment rated at 50 hp or greater to minimize nitrogen oxide (NOx) emissions from those operations. The platforms are inspected on a regular basis to ensure compliance with applicable requirements. In addition, electrification of the newer platforms in the Pacific Region substantially reduces the potential for NOx emissions from platform operations.

The platforms off California are among the cleanest in the world. Concerns, however, remain regarding the emissions from support vessels servicing the platforms such as crew and supply boats. These emissions are considered by the counties in their permitting activities as the platform's total potential to emit. In this way, the local air agencies expect to further minimize air quality impacts from those sources.

Q. How do OCS activities affect commercial fishing?