While some might say that the long awaited MMS proposed regulations for alternative energy leases on the Outer Continental Shelf are more than a day late (EPAct required MMS to issue regulations by May 2006), at 462 pages, no one could legitimately call this proposed rule short. I've barely had time to sink my teeth into the rule, which you can download herefor your own reading pleasure. But based on the discussion in the MMS teleconference today, the rule will take a phased approach to leases, first implementing a competitive process for issuing a lease (as required by statute), then reviewing the lessees' site assessment and construction plans, then establishing a process for monitoring the project during the term of operation and finally, another plan for decommissioning. This approach (if I've summarized it correctly - again, I'm pressed for time and working off the cuff) in some ways turns the more conventional licensing process on its head; in FERC or Corps processes, developers obtain authorization first and acquire the requisite property interests second. Here, (again with the caveat that I'm understanding this correctly), MMS will first issue a lease giving companies the property interest needed to site the project, and will then review the proposed plan for construction and apply NEPA during the site assessment phase. I'm still working through the pros and cons of this approach as well as trying to figure how it will work with the FERC process - though as I read the rule, MMS seems to politely suggest that FERC's authority over projects does not extend beyond three miles to the twelve mile limit. The rule contains much more - discussion and request for comment on royalty payments, the bid process, surety bonds and how to disburse benefits to adjacent states.
Naturally, OREC will be filing extensive comments on these rules, but I also hope to offer some additional analysis here. However, with this recent issuance, I'm going to postpone Thursday's conference call to give myself more time to go through this rule.
If you have any thoughts, send them below.
Excellent! I will read this and get back to you sometime within this or next decade. :)
Posted by: Eric K | July 16, 2008 at 02:52 PM
Thanks for URL
Posted by: Noclegi Ustka | July 23, 2008 at 06:10 AM