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DOCUMENT RESUME
00192 - [A10517241
[Improved Policies and Procedures for the Exploration an3
Development of Outer Continental Shelf Resources]. March 15,
1977. 10 pp. + 4 enclosures.
Testimcny before the Senate Committee on Energy and Natural
Resources; by J. Dexter Peach, Deputy Director, Energy ard
dinerals Div.
Contact: Energy and Minerals Div.
Budget Function: Natural Resources, Environment, and Energy:
Energy (305).
Congressional Relevance: Senate Committee on Energy and Natural
Resources.
A planned and systematic approach to the leasing of the
Nation's Outer Continental Shelf (OCS) resources is needed if
hydrocarbon production in frontier areas is to be maximized in a
manner consistent with environmental and other values. a GAO
assessment of the first frontier sale (OCS Sale 35 off the
California coast) has demonstrated that (1) the Department of
Interiorls tract selection and evaluation prccess were not
reliable; (2) the bidding generally was not competitive; and (3)
tho prelease tract evaluation used by the Department in makLng
accept/reject decisions on industry bids were based on
inat.oquate data. The nee, for sufficient data is critical not
only for selecting and valuing tracts to determine the fair
market value for leased lands, but also for identifying where to
lease so that domestic oil and gas production can be increased
in the near future. The Department should undertake a systematic
exploration program to collect data on previously unexplored
frontier areas. Such an exploration would also improve the
Department's revenue-estimating process and provide the Nation
with a better knowledge of the total OCS resource potential. The
Department should also encourage private industry to conduct the
drilling and share the resulting information with the Department
on a confidential basis. The Department should offer for lease
sale only those areas for which it has sufficient information to
identify the resources$ location, estimated value, and potential
for development. (LDR)](ViewImageLocal?handle=hein.gao/gaobadxsn0001&div=1&collection=&method=preview&ext=.png&size=3)