Federal Waters Research Articles

Would constraining US fossil fuel production affect global CO2 emissions? A case study of US leasing policy

Avoiding dangerous climate change will require a rapid transition away from fossil fuels. By some estimates, global consumption and production of fossil fuels—particularly coal and oil—will need to end almost entirely within 50 years. Given the scale of such a transition, nations may need to consider policies that constrain growth in fossil fuel supplies in addition to those that reduce demand. Here, we examine the emissions implications of a supply-constraining measure that was rapidly gaining momentum in the United States (US) under the Obama administration: ceasing the issuance of new leases for fossil fuel extraction on federal lands and waters. Such a measure could reduce global carbon dioxide emissions by an estimated 280 million tons annually by 2030, comparable to that of other major climate policies adopted or considered by the Obama administration. Our findings suggest that measures to constrain fossil fuel supply—though not currently viable in a US Trump administration—deserve further consideration at subnational levels in the US or by other countries now, and by future US administrations.

Assessment of offshore oil/gas platform status in the northern Gulf of Mexico using multi-source satellite time-series images

Accurate knowledge of the detailed status (location and lifetime) of each oil/gas platform is crucial for ocean management and for understanding its potential environmental impact. However, this requirement is often compromised due to incomplete data records, especially when platform abandonment is not properly planned, designed, and/or executed. The availability of multi-source optical and SAR images provides the possibility of a systematic assessment, but the ubiquitous false positives and frequent geocoding errors make it technically challenging. Here, we develop a time-series remote sensing approach (TSRS) for detecting offshore platforms and determining their status, where the technical challenges are overcome using two strategies, as follows: (i) A stepwise optimization strategy applied to individual images and time-series images to mitigate numerous noises, to select platforms from candidates, and to assess platform status; and (ii) A cross geo-correction strategy using platforms derived from high-geometric accuracy images as ground control points to rectify poorly geo-referenced images. We applied the TSRS approach to the northern Gulf of Mexico using about 26,000 moderate-resolution optical/SAR images from eight satellites spanning the period from 1982 to 2017. TSRS detected a total of 9260 (5556) platforms in both Federal and State waters, including 3140 (1803) existing platforms, 5044 (3426) removed platforms, and 1076 (327) status-to-be-determined platforms where the numbers in parentheses represent those from Federal waters. Of these TSRS platforms, 4751 coincide spatially with 5476 (77.68%) of platform records of the Bureau of Safety and Environmental Enforcement (BSEE) platform database; 2846 (387 in Federal waters) are not found in the BSEE platform database but are convincingly supported by data from other sources (including BSEE-pipeline-database, time-series VIIRS nighttime light products, and littoral ground-truth images), meaning that 82.04% of the TSRS-derived platforms can be directly/indirectly confirmed. A site-specific validation in East Bay using multi-temporal ground-truth aerial images indicates that, for this site, the false negative rate (FNR) is ~9.63% and the false positive rate (FPR) is only 4.44%. The detailed beginning/end dates of the TSRS platforms are mostly confirmed by the corresponding Installation/Site-clear dates recorded in the BSEE platform database. Our findings suggest that the TSRS approach is a robust and cost-effective way to assess oil/gas platform status in large regions, and our results here may complement the official database, narrow down locations for future field investigations, and provide critical information for future assessment of the potential impacts of active and decommissioned platforms on the marine environments.

E&P Notes (February 2018)

E&P Notes Industry Poised for Stronger Performance in 2018 Joel Parshall, JPT Features Editor The global oil industry appears poised for stronger performance in 2018, having benefitted from the financial discipline and cost-cutting innovation driven by several years of low oil prices and looking ahead to somewhat more stable market conditions. While oil prices have recently risen above $60/bbl, likely reflecting a number of short-term supply disruptions and concerns over Middle East tensions, forecasts generally call for prices to fluctuate sustainably between $40/bbl and $60/bbl and end the year in the higher part of that range. “Higher prices in or above that range will increase supply as countries lessen compliance with production quotas and United States shale production keeps increasing,” said Moody’s Investors Services in its 2018 industry outlook. ‘Supergiant’ Zohr Gas Field Off Egypt Comes On Stream Matt Zborowski, Technology Writer Eni confirmed on 20 December that the Zohr field has started gas production from the Shorouk block offshore Egypt. The launch comes less than 2½ years after the Italian firm discovered the enormous deposit, which is estimated to hold more than 30 Tcf of gas in place. The field is flowing 350 MMcf/D and is slated to produce 1 Bcf/D by the middle of next year, Egypt’s petroleum ministry said. The project’s first phase includes six subsea wells, with gas transported 180 km to an onshore plant at Port Said for processing and use in Egypt’s national grid. The second phase will comprise 14 more wells to be drilled by the end of 2019. The field sits in 1500 m of water. Schlumberger Buys Weatherford’s US Fracturing Assets Weatherford has sold its US pressure pumping and pump-down perforating assets to Schlumberger for $430 million in cash, abruptly ending a planned joint venture that was to begin operations on 1 January. The parties agreed to revised deal terms that reflect an asset sale, abandoning the previously announced OneStim joint venture that had received US Department of Justice approval in November 2017. Schlumberger will take ownership of Weatherford’s US pressure pumping and pump-down perforating related facilities and supplier and customer contracts. Additionally, 100 Weatherford employees associated with the business will transfer to Schlumberger. Oil Discoveries Fall to Lowest Level in 70 Years Unconventional output may be booming, but the low oil prices of the past 3 years have led to the lowest level of oil discoveries in the past 70 years. Oil companies discovered less oil and gas in 2017—7 billion BOE—than any year on record, the Norwegian research firm Rystad Energy said in a December report. “We haven’t seen anything like this since the 1940s,” said Sonia MladÁ Passos, a senior analyst at Rystad. “We have to face the fact that the low discovered volumes on a global level represent a serious threat to the supply levels some 10 years down the road.” Big Discoveries Prompt US Agencies To Lift Recoverable Resource Estimates in Alaska Matt Zborowski, Technology Writer The US Department of the Interior (DOI) has increased its estimate of undiscovered, technically recoverable resources in parts of Alaska’s federal, state, and tribal lands and waters following recent, bigger-than-expected discoveries. The revisions include a large jump in estimated onshore oil resources. The assessment—conducted by DOI agencies the Bureau of Ocean Energy Management (BOEM), Bureau of Land Management, and US Geological Survey (USGS)—shows approximately 17.6 billion bbl of oil and 50 Tcf of gas in the National Petroleum Reserve-Alaska (NPR-A), the Western Beaufort Sea, nearby state and native lands, and state waters.

Sequestering Carbon Dioxide Undersea in the Atlantic: Legal Problems and Solutions

Reducing the amount of carbon dioxide in the atmosphere is vital to mitigate climate change. To date, reduction efforts have primarily focused on minimizing the production of carbon dioxide during electricity generation, transport, and other activities. Going forward, to the extent that carbon dioxide continues to be produced, it will need to be captured before release. The captured carbon dioxide can then be utilized in some fashion or injected into underground geological formations (e.g., depleted oil and gas reserves, deep saline aquifers, or basalt rock reservoirs) where it will hopefully remain permanently sequestered. This injection process is referred to as “carbon capture and storage” (CCS).Significant research has been undertaken to identify possible carbon dioxide injection sites in the continental United States. There is also growing interest in the possibility of injecting carbon dioxide offshore into geological formations underlying the seabed. However, little is currently known about the legal regime for sub-seabed injection. This article outlines the key legal requirements for injecting carbon dioxide into the seabed off the northeast coast of the U.S.The legal requirements for offshore carbon dioxide injection differ depending on the location of the injection operation. Injection operations undertaken in the Northeastern U.S., within three nautical miles of the coast (i.e., in “state waters”), are regulated under the Environmental Protection Agency’s (EPA) Underground Injection Control Program. That Program does not, however, apply to operations in “federal waters,” 3 to 200 nautical miles from shore, or on the “high seas” beyond those waters.There is currently no regulatory regime specific to carbon dioxide injection in federal waters or on the high seas. However, injection operations in those areas may be regulated under general programs, such as the ocean dumping regime established in the Marine Protection, Research, and Sanctuaries Act (MPRSA). The MPRSA was enacted to fulfill the U.S.’s obligations under the London Convention, which aims to prevent pollution of the seas by waste and/or other materials. Consistent with the terms of the Convention, the MPRSA regulates the disposal of material at sea. The EPA has suggested that the MPRSA may apply to the injection of carbon dioxide into the seabed.Assuming it applies to seabed injection, the MPRSA may operate as a barrier to offshore CCS. Under the MPRSA, any person transporting material from the U.S. for the purpose of dumping it at sea, whether in state waters, federal waters, or on the high seas, must obtain a permit from the EPA. Notably, the EPA cannot grant a permit when the material consists of industrial waste, which is defined as “solid, semi-solid, or liquid waste generated by a manufacturing or processing plant.” The dumping of such waste is therefore effectively prohibited by the MPRSA.Depending on whether carbon dioxide is considered an industrial waste, the MPRSA may operate either to ban its offshore injection or allow its injection with a permit from the EPA. Various other permits and authorizations may also be required depending on where and how injection occurs. The key requirements are outlined in this article.

E&P Notes (October 2017)

E&P Notes Researchers Gain Insights Into Microbial Succession in Offshore Wells Joel Parshall, JPT Features Editor Researchers from Shell and Newcastle University in the United Kingdom, in collaboration with the US Department of Energy (DOE) Joint Genome Institute (JGI), have obtained valuable insights into the succession of microbial populations in multiple oil wells drilled in a North Sea field. Findings from the research could influence future industry practices. Microbes play an important part in maintaining the earth’s biogeochemical cycles and are known to have displayed a very successful adaptive capability in extreme subsurface conditions when they are relatively stable. The Shell-Newcastle University research focused on the response of microbes to the disruption of their environment caused by well drilling and production-related activities and the microbial impact on reservoir production. New Study Shows Stanching of Decline in Oil Reserves, Revenue Stephen Whitfield, Senior Staff Writer With the release of Ernst & Young’s (EY) 2017 US oil and gas reserves study, the services firm hosted a presentation in which a panel of its analysts discussed trends among independent and integrated companies within the industry. Along with oil and gas reserves, the panel examined trends in capital expenditures (Capex) for exploration and development activities as well as other performance metrics. A key takeaway from the EY study was that prices are trending lower than in recent history and volatility in price is somewhat subdued. Capex totaled $85.7 billion in 2016, 27% lower than in 2015 and 57% lower than in 2014. The study said that the oil price has stabilized at a “new normal,” and that this stabilization has helped limit the flow of ratings downgrades and reserve revisions from 2015 to 2016. The US Energy Information Administration (EIA) expects the country to see a 4% growth in oil production in 2017. Total Acquires Maersk Oil in $7.5-Billion Deal, Boosts North Sea Presence Pam Boschee, Senior Editor Total will acquire Maersk Oil for $4.95 billion in Total shares and will assume $2.5 billion of Maersk’s debt. The deal will expand Total’s global holdings to approximately 1 billion BOE of 2P/2C reserves, of which more than 80% are in the North Sea. Total said that the combination of its and Maersk’s assets in the North Sea is expected to “generate operational, commercial, and financial synergies” of more than $400 million per year. Closing of the deal is expected in 1Q 2018. Included in the Maersk North Sea holdings are interests in Johan Sverdrup (8.44%) and the Culzean gas condensate field (49.99%). At the end of 2Q, Culzean’s project completion rate was 55%, ahead of the expected 48%. Maersk reported in July that the gas export and condensate pipelines had been laid and all three jackets installed on the field. High-pressure/high-temperature drilling began in July. Production is expected to start in 2019. Demand for Raw Fracturing Sand Set for Healthy Growth Joel Parshall, JPT Features Editor Demand for raw fracturing sand is forecast to increase by more than 4% per year to almost 100 billion pounds in 2021, according to a recently released study by industry research firm, the Freedonia Group. In value terms, raw fracturing sand is expected to grow at a 10% annual rate to more than $3 billion in 2021, which reflects substantial gains in average prices and volume levels. The study, Proppants in North America, presents historical data from 2006, 2011, and 2016. It forecasts to 2021 by type—including raw fracturing sand, resin-coated sand, and ceramic proppant—and market location in pounds and US-dollar values. The study also evaluates key industry players. Raw sand demand is expected to grow in the United States and Canada, with the US being the principal user at a market share of 88% in 2016, the study said. Bidding Interest Drops for Gulf of Mexico Leases Joel Parshall, JPT Features Editor Oil industry interest in obtaining new offshore acreage in the US Gulf of Mexico (GOM) showed a significant decline in the mid-August federal outer continental shelf lease sale, compared with the previous sale in March. US GOM regionwide Lease Sale 249, held by the Bureau of Ocean Energy Management in New Orleans, drew 99 bids from 27 participating companies, with high bids totalling $121 million. The value of all bids received was $137 million for 90 blocks, a decline of 57% in bid value and 45% in block acreage from Central Lease Sale 247 on 22 March. That sale reflected the first increase in industry leasing activity in federal GOM waters in 5 years.

Offshore CO2 Storage Resource Assessment of the Northern Gulf of Mexico

Research programs recognize the need to further develop offshore storage resources for successful global deployment of CCUS. The inner continental shelf of the northwestern Gulf of Mexico is especially prospective because it has abundant available geologic data accumulated from decades of hydrocarbon exploration near many large point sources of industrial CO2. An ongoing study on the upper Texas coast to Vermilion Bay (western Louisiana) assesses prospective geologic storage resources for the approximately 8,000 square mile study area. The study, encompassing state and federal waters, utilizes 1) existing rock samples (e.g., whole cores), 2) well logs, and other data from existing or P&A wells and 3) available 2D, a convention regional 3D and a high resolution 3D seismic surveys to assess storage resources (e.g., faults, reservoir and seal units, etc.). The study utilizes the available geologic data resources to 1) assess the CO2 storage capacity of depleted oil and natural gas reservoirs, and 2) assess the ability of saline formations in the region to safely and permanently store nationally-significant amounts of anthropogenic CO2. The study also seeks to identify at least one specific site with potential to store at least 30 million metric tons of CO2 that could be further considered in the future for a commercial or integrated demonstration project.

Using choice models to inform large marine protected area design

During the last decade a number of Large Marine Protected Areas (LMPAs) – marine protected areas that exceed a minimum size threshold and are often in offshore or open ocean waters – have been designated in an effort to meet marine conservation objectives. Research on the human dimensions of LMPAs is limited, though comprehensive policy analysis requires an understanding of the full range of social, cultural and economic benefits associated with LMPA designation. This paper addresses this need by employing a stated preference choice experiment survey of U.S. west coast households to examine public preferences for different protected area designs sited off the U.S. west coast. Using data from over 3000 randomly selected households in California, Oregon, and Washington we estimate choice models and calculate economic values for a suite of LMPAs that vary in size and in the types of restrictions within area boundaries. Results show that the LMPA size yielding the highest value is ~15.6% of the west coast Federal waters. Results also underscore the importance of restriction type, as there are considerably different threshold sizes above which diminishing returns and negative economic values are derived from no-access reserves, no-take, and multiple-use designations. While the value of any specific configuration can be estimated using the model, results offer insight on optimal use designations from a public perspective for small (< 2.5% of west coast Federal waters), medium (2.5%–~10%) and large (> 10%) LMPAs sited off the U.S. west coast.

The incorporation of traditional knowledge into Alaska federal fisheries management

Fisheries policy and management processes for federal waters off western Alaska currently lack consistent and considered integration of traditional knowledge (TK), TK holders, social science of TK, and subsistence information. The incorporation of these into fisheries work can lead to more informed, equitable and effective policy and management practices. This paper includes information and recommendations derived from previous work by the authors as well as from two community workshops with indigenous TK holders and fisheries experts. Discussions of TK and related concepts, TK research in the Bering Strait and Yukon River regions, and Alaska federal fisheries management-related institutions and processes as pertains to TK are presented. Substantive recommendations are provided for improving processes, increasing tribal representation, capacity building, effective communication, outreach and relationship-building, the incorporation of indigenous concerns and values, and regarding the development of a Fisheries Ecosystem Plan for the Bering Sea.

Rigless well abandonment remediation in the shallow water U.S. Gulf of Mexico

From 2004–2015, over 11,000 wells were plugged and abandoned in the federal waters of the Gulf of Mexico, but no studies have ever been conducted on the reliability of operations and the frequency of remediation activity. The purpose of this paper is to estimate the probability that a dry tree well abandoned using rigless methods, the most common approach in the shallow water Gulf of Mexico, requires remediation after initial operations are completed. A random sample of 502 platform wells abandoned in 2010 in water depth less than 400ft were tracked for five years to identify bubbling/leaking events. Nine wells were identified that required remediation after operations were performed leading to a remediation probability estimate of 1.8% and a 95% confidence interval ranging between 0.6 and 3.0%. The limitations of the analysis and directions for future work are described.

At loggerheads over international bycatch: Initial effects of a unilaterally imposed bycatch reduction policy

The Magnuson-Stevens Fishery Conservation and Management Act (MSA) is the primary law that codifies marine fisheries management in United States federal waters. The MSA was amended in 2006 with Section 610, an international provision that directs the Secretary of Commerce to unilaterally identify foreign nations engaged in the incidental capture (bycatch) of protected living marine resources (PLMRs) under specific conditions. In 2013 the United States identified Mexico for bycatch of a PLMR – the North Pacific loggerhead turtle – representing the first time a nation has been identified for bycatch under section 610. This paper evaluates the initial effects of the identification on loggerhead bycatch management efforts in Mexico and provides policy recommendations for improving the law and its implementation. In the wake of the unilateral identification, Mexico downplayed and denied the bycatch problem that their agencies had previously accepted and cancelled a bycatch research partnership between their federal fisheries science agency and U.S. researchers. Moreover, fishers invested in bycatch reduction and monitoring programs ceased to participate, jeopardizing their understanding of the problem and their co-development of bycatch solutions. However, the identification and subsequent consultation process ultimately resulted in Mexico implementing federal loggerhead bycatch regulations that are temporarily comparable with relevant U.S. measures. These regulations establish a temporary fisheries reserve (authorized for two years) that includes monitoring of bycatch, a loggerhead bycatch mortality cap, temporal and spatial restrictions on fishing gear and practices, and a closure of all finfish fisheries during the summer of 2016. As a result, turtle bycatch was likely substantially reduced in 2016, but at the cost of artisanal fishers' entire seasonal income. Policy recommendations are made, highlighting the need to: 1) better assess the socioeconomic, political, and environmental consequences associated with using the threat of trade sanctions to compel nations to reduce their bycatch; and 2) facilitate a more consistent consideration of bycatch data across nations such that the current policy does not create a disincentive for other nations to assess or report PLMR bycatch.

The time has come for offshore wind power in the United States

Offshore wind turbines have been successfully deployed in Europe since 1991, providing thousands of megawatts of clean energy for multiple nations. Ten years ago, it seemed that the United States would follow suit: The US Energy Policy Act of 2005 directed the Department of the Interior (DOI) to establish an offshore leasing regime in federal waters (generally oceanic waters 3–200 nautical miles from the coast). It appeared to be a crucial step in opening the door to the country’s vast offshore wind resource: turbine installations in the Mid-Atlantic Bight alone could power all United States electricity, automobile transport, and building heat needs (1).

Evaluating alternatives for decommissioning California's offshore oil and gas platforms.

This paper introduces a series of 6 additional papers in this issue that describe an in-depth analysis of options for decommissioning oil and gas platforms offshore southern California. Although current leases require lessees in both state and federal waters to completely remove all production facilities and restore the seafloor to its pre-platform condition, other options have emerged since these leases were signed. Laws and regulations in other jurisdictions (particularly in federal waters) have evolved to allow a number of other uses such as aquaculture, alternative energy production, and artificial reefing. In response, the California Natural Resources Agency initiated an effort to investigate the issues associated with these and other decommissioning alternatives. The papers in this series are the result of the second phase in this process, a broad investigation of the engineering, economic, and environmental costs and benefits of the most feasible and likely options. In addition to the project's final report, the authors produced an interactive mathematical decision model, PLATFORM, that enables users to explore the implications of different decommissioning projects and options, as well as the effects of different approaches to valuing the associated costs and benefits.

A costing model for offshore decommissioning in California.

California's 27 offshore oil and gas platforms will reach the end of their useful lifetimes sometime in the near future and will require decommissioning. Although existing leases require complete removal of all platforms and associated infrastructure, the underlying laws and regulations have changed in recent years to allow a number of alternative uses after decommissioning. In particular, AB 2503, signed into law in September 2010, provides for a rigs-to-reefs program that allows the state to accept ownership of decommissioned platforms in federal waters. Decisions about whether to remove platforms completely or leave them in place as artificial reefs will depend in part on the relative cost of the 2 options. In this study, we describe the design and use of a mathematical decision model that provides detailed cost estimates of complete and partial removal (to 85 feet below the water line) for California's offshore platforms. The model, PLATFORM, is loaded with Bureau of Safety and Environmental Enforcement (BSEE) and Bureau of Ocean Energy Management (BOEM) costs for complete removal, along with costs for partial removal calculated for this study and estimates of the uncertainty associated with decommissioning cost estimates. PLATFORM allows users to define a wide range of decommissioning and costing scenarios (e.g., number of platforms, choice of heavy lift vessel, shell mound removal, reef enhancement). As a benchmark cost, complete removal of all 27 offshore platforms, grouped into the 7 decommissioning projects defined by the most recent federal cost estimates produced in 2010, would cost an estimated $1.09 billion, whereas partial removal of these platforms, grouped into the same set of projects, would cost $478 million, with avoided costs of $616 million (with minor rounding).

Dispatches

Dispatches

E&amp;P Notes (January 2015)

E&amp;P Notes New Oil Sands Technology Debuts in Utah, Promises Low Environmental Impact Trent Jacobs, JPT Technology Writer In the northeastern desert of Utah, a new type of oil sands extraction technology has been born. The company behind it claims the process is the most cost-effective and environmentally sound way to develop oil sands. “Nothing goes out onto the ground, nothing goes up into the air, and there is no water involved,” said Gerald Bailey, the chief executive officer of MCW Energy Group. “We finish up with 99.9% clean sand that you can just lay out on the ground.” Bailey said the efficiency of the technology is backed up by permits issued by the US Environmental Protection Agency allowing MCW to reintroduce the sands to the source area. Oil sands surface mining has become a controversial extraction method because it results in large quantities of hydrocarbon and chemical-laced tailing ponds that can take decades to remediate. Another method, steam-assisted gravity drainage, does not come with the environmental drawbacks of surface mining but it does require large volumes of water and energy, usually from natural gas, to generate steam for the in-situ production process. The key to the emerging technology is MCW’s solvent that acts as a surfactant. Made from a strain of common organic alcohols, Bailey said the solvent strips more than 99% of the hydrocarbons from the oil sands, which have an original content of 12% oil. The quality of Utah’s oil sands is approximately 22 °API, considered the upper limit of heavy oil by the US Energy Information Administration. MCW also said its extraction technology requires no water for the process, emits no greenhouse gases, and does not require high pressures or temperatures to separate the hydrocarbons from the oil sands. The process is continuous but it can be turned off and on with the flick of a switch. “There is no decline curve. It is not a well depletes,” Bailey said. “You are just taking a raw material, putting it in a chemical, and getting oil.” US Regulator Seeking More Assurance for Offshore Decommissioning Costs Jack Betz, JPT Staff Writer As decommissioning costs mount in the US Gulf of Mexico, the Bureau of Ocean Energy Management (BOEM) is looking to change financial requirements for lessees and operators in federal waters for the first time in more than 20 years. While all lessees will be asked to show that they can cover the cost of plugging wells and removing other infrastructure, smaller operators are likely to feel the effect most. From the regulator perspective, the main threat to taxpayers is bankruptcy of companies with wells and facilities in federal waters, said Joshua Joyce, a BOEM bond expert who spoke at the Houston Association of Professional Landmen’s November 2014 Offshore Seminar. At issue are financial standards used to review whether companies have the money on hand for the decommissioning of offshore facilities, as required under US lease rules. BOEM uses a financial test to determine if a lessee has the resources in hand for self-insurance, or needs to turn to a third party and secure extra bonding, which can require operators to put up collateral, often in the form of cash. Its figures show that approximately 90% of leases in federal waters are self-insured. BOEM’s goal is to prevent more vulnerable companies from leaving behind obligations for US taxpayers.

Marine Distribution and Habitat Use of Atlantic Sturgeon in New York Lead to Fisheries Interactions and Bycatch

AbstractPopulation declines of Atlantic Sturgeon Acipenser oxyrinchus oxyrinchus prompted initial fisheries closures and an eventual endangered or threatened species listing across the U.S. portion of their range in 2012. Atlantic Sturgeon aggregations and migration routes along the coast of Long Island overlap with commercial fishing activities that may lead to incidental take in nondirected fisheries. Thus, understanding the distribution and movement of Atlantic Sturgeon in relation to commercial fisheries can help management agencies determine impacts and develop bycatch mitigation measures. Stratified random sampling and targeted bottom trawl surveys were used to identify the temporal and spatial use of marine habitat in New York waters. The majority of survey captures were restricted to depths of less than 15 m and known aggregation areas. During the aggregation periods (May, June, September, and October) in known aggregation areas, catches were an order of magnitude higher than in other areas and months of the year. Northeast Fisheries Observer Program bycatch data from 1989 to 2013 was analyzed for the New York region and suggested that bycatch occurs within two main gear types: otter bottom trawls and sink gill nets. Trawling bycatch contained primarily subadult Atlantic Sturgeon and is highest during the Summer Flounder Paralichthys dentatus fishery in New York State waters. Trawling overlaps spatially and temporally with identified Atlantic Sturgeon aggregation areas, while bycatch in gill nets targeted adult fish farther offshore in federal waters. Bycatch in these fisheries may be a regional threat to recovery, and spatial and temporal closures, gear modifications, or other bycatch reduction techniques are suggested to protect aggregating and migrating fish.Received July 28, 2014; accepted November 4, 2014

Unitisation of petroleum project interests

Traditionally, the unitisation of oil and gas project interests involved the exchange of legal ownership interests between project proponents to achieve uniformity of their licence interests across the project. Recently, more contemporary and creative forms of unitisation have emerged including economic, beneficial and contractual unitisation approaches that do not necessarily involve the transfer of legal title interests. Unitisation is a way of pooling resources to improve the likelihood of an economically viable project for participants and to overcome practical challenges resulting from uneven interests in the component parts of a broader project. In some cases, unitisation is the catalyst for project sanction. Achieving agreement and alignment on the most equitable unitisation outcome, including the valuation of the relative resource base and ownership stakes, is not easy. It involves navigating a myriad of legal, commercial, operational and financial considerations. A project residing in both federal and state waters can add increasing layers of complexity due to the interaction between overlapping federal and state jurisdictional and taxing rights. This extended abstract discusses key issues arising in various unitisation models and considers the associated fiscal implications from income tax, capital gains tax, petroleum resource rent tax and royalty perspectives. It also examines the government’s announced tax measures for dealing with the swapping of interests or interest realignments resulting in a common development project and the impact and effectiveness of these rules on unitisation arrangements.

Offshore finfish aquaculture in the United States: An examination of federal laws that could be used to address environmental and occupational public health risks.

Half of the world’s edible seafood comes from aquaculture, and the United States (US) government is working to develop an offshore finfish aquaculture industry in federal waters. To date, US aquaculture has largely been regulated at the state level, and creating an offshore aquaculture industry will require the development of a new regulatory structure. Some aquaculture practices involve hazardous working conditions and the use of veterinary drugs, agrochemicals, and questionable farming methods, which could raise environmental and occupational public health concerns if these methods are employed in the offshore finfish industry in the US. This policy analysis aims to inform public health professionals and other stakeholders in the policy debate regarding how offshore finfish aquaculture should be regulated in the US to protect human health; previous policy analyses on this topic have focused on environmental impacts. We identified 20 federal laws related to offshore finfish aquaculture, including 11 that are relevant to preventing, controlling, or monitoring potential public health risks. Given the novelty of the industry in the US, myriad relevant laws, and jurisdictional issues in an offshore setting, federal agencies need to work collaboratively and transparently to ensure that a comprehensive and functional regulatory structure is established that addresses the potential public health risks associated with this type of food production.

Movements of Striped Bass between the Exclusive Economic Zone and Massachusetts State Waters

AbstractIn recent years, commercial and recreational fishermen have reported large aggregations of adult Striped Bass Morone saxatilis occurring in the U.S. Exclusive Economic Zone (EEZ) adjacent to Massachusetts state waters. Directed fishing for Striped Bass within the EEZ has been prohibited since 1990, and there is overwhelming public perception that adult Striped Bass remain as seasonal residents of the EEZ and do not enter state waters, where they would become available to anglers. Passive acoustic telemetry was utilized to examine the extent to which adult Striped Bass move between the EEZ and Massachusetts state waters and to assess the relative conservation benefit provided by the EEZ fishery closure. From 2008 to 2011, 125 adult Striped Bass (68–110 cm TL) were tagged with acoustic transmitters on Stellwagen Bank within the EEZ and were monitored with an extensive array of fixed acoustic receivers deployed within Massachusetts state waters. Of these tagged individuals, 119 (95%) were detected for 1–56 d within state waters during a given year, and 96 (77%) were detected seasonally for up to 2 years after tagging. Sixty‐five (55%) fish moved into state waters within 30 d after tagging (during July and August) and became accessible to the Massachusetts commercial fishery. The results of this study provide definitive evidence that a majority of the adult Striped Bass encountered annually on Stellwagen Bank (i.e., in the EEZ) exhibit movement into Massachusetts state waters as part of their normal migratory and feeding behaviors. If future research in other areas off the northeast U.S. coast likewise documents routine movements between federal and state waters, fishery managers will need to re‐evaluate the efficacy of the EEZ closure as a tool for reducing fishing mortality.Received October 22, 2013; accepted January 21, 2014

Offshore wind structure weight algorithms

Decommissioning requirements for offshore renewable energy facilities in US federal waters requires that all facilities be removed and the seafloor be cleared of all obstructions at the end of the life of the lease. Before construction activities are permitted, developers are required to post a bond based on the estimated cost of decommissioning to ensure that the federal government is protected in case of company default. The purpose of this note is to provide weight algorithms of offshore wind farm components to estimate the lift requirements in decommissioning, the scrap value of material, and disposal cost. Weight algorithms are calibrated and compared with North Sea project data and examples illustrate the procedures. The component weights at the Cape Wind farm offshore Massachusetts are estimated.