During the June 1994 Gore-Chernomyrdin Science
&Technology Committee meeting in Washington D.C., Interior Secretary Babbitt, on
behalf of the Minerals Management Service (MMS), signed an
Memorandum
of Understanding (MOU) on Geology and Use of Mineral Resources. The Russian Committee
has since reorganized and is now the Russian Federation Ministry of Natural Resources
(MNR).
The MMS-MNR MOU provides a framework for the sharing of
scientific and technical information with Russia as they continue to move towards a market
economy in the development of their offshore oil and gas resources. The MOU will allow
closer and more regular contacts and engages the Russians in cooperation related to the
technical aspects of regulating offshore exploration and development of oil, gas, and
mineral resources.
In August 1994, MMS and Russia agreed to consider
holding a simultaneous natural gas and oil lease sale/tender in the Chukchi Sea area. The
proposed initiative would allow each party to cooperate and develop their respective
sale/tender proposals, sharing environmental, cultural, and technical information, but
final decisions on the terms and conditions of the offering would be made on an individual
basis. The proposed Chukchi Sea simultaneous sale was deferred due to limited near term
interest by the oil and gas industry. However, Russia is still interested in coordinating
their schedule of lease tenders in the Far East with future MMS lease sales offshore
Alaska.
In September 1995, a second project under the MOU was
proposed. Taking into account Russia's high priority on developing new oil and gas fields
in the Arctic, the MNR asked for help to identify and consider common approaches to
environmental, technical (including safe operating practices), and economic problems
associated with mineral resource development. As a result of World Bank encouragement the
project evolved into a multilateral initiative. The MNR and MMS work closely with the
Norwegian Petroleum Directorate (NPD) and other Russian government entities with offshore oil
and gas regulatory authority to develop a project proposal that will assist Russia in
developing a comprehensive safety and environmental regime for offshore oil and gas
operations, including Arctic waters, consistent with international standards.
The initial phase of the project is a feasibility study
that will prepare the background necessary for the next stage -- the actual development of
a comprehensive Russian offshore oil and gas safety and environmental regime. The study
will also determine the likelihood of success for developing and implementing the
comprehensive regime. An Executive Committee will oversee the feasibility study. The
Committee will be chaired by the MNR and include senior representatives of the Ministry of
Fuels and Energy, the Committee for Technical Safety of Mines and Industry, the Committee
for Environmental Protection, and the Ministry for Agriculture (Fisheries Department).
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