Overview
	G&G Permitting Process

The G&G Permitting Process

The general purpose of the regulations is to ensure that prelease exploration, prospecting, and scientific research operations in Federal waters do not interfere with each other, with lease operations, or with other uses of the area. The regulations also encourage G&G data acquisition while adequately protecting the investment of data gathered and still assuring equal access and competitive balance. Adherence to these regulations will ensure that exploration and research activities will be conducted in an environmentally safe manner.

The permits, issued by the Resource Evaluation Regional Supervisors, set forth the specific details for each data-gathering activity, which include the area where the data are collected, the timing of the data-gathering activity, approved equipment and methods, and other similar detailed information relevant to each specific permit.

This process is outlined in the chart below titled "RE G&G Permit Process". After data have been collected by permittees, the MMS selectively acquires data that are needed to update the existing database. Industry uses these G&G data to determine the areas having potential for oil and gas production. Oil companies also use these data for preparing bids for lease sales. The MMS also acquires data that have been collected for scientific research activities, for which an approved permit or filing of notice is required.

Resource Evaluation G&G Permit Process

Types of information required to be identified in the permit application for geophysical activities include: vessel information, a description of the energy source and receiving array, total energy output, number of impulses per linear miles, towing depth, navigation system to be used, estimate of are to be surveyed, description of final processing, estimated completion date, and a map, plat or chart showing latitude, longitude, block numbers, total line miles or blocks proposed.

With respect to geological activities, the following types of information are identified in the permit application: description of drilling methods or sampling, equipment to be used, estimated bore holes or sample locations, navigation system, method of sampling, description of analyzed or processed data, estimated completion date, and a map, plat, or chart showing latitude and longitude, specific block numbers, and total number of borings and samples.

For each approved application, the operator received a signed copy of the permit that outlines policies regarding reporting, submission, inspection, and selection of data, reimbursement, disclosure of information, possible sharing of data with affected States, and policies regarding permit modifications.

Each Region has unique environmental concerns and these are addressed through mitigating measures at the Regional level. Such stipulations are available on each MMS Regional office’s webpage.

The MMS tracks G&G permits by calendar year. Total permits demonstrate that most OCS oil and gas activity has been in the Gulf of Mexico. The Gulf of Mexico has issued 82 percent of all permits and is followed by the Alaska Region with 9 percent. The Pacific Region has issued 7 percent of the permits, followed by the now defunct Atlantic Region with about 2 percent. However, since 1994 activities in the Atlantic have been assigned to the Gulf of Mexico Region. With the addition of these responsibilities, the percentage of total permits for the Gulf of Mexico Region increases to 85 percent. These statistics correlate extremely well with the dominant position of the Central and Western Gulf of Mexico planning areas in OCS oil and gas activities.

It should be noted that since 1969, approximately 95 percent of the permits issued were for geophysical exploration and that geological exploration permits accounted for only 5 percent. While the total number of 3-D permits compared to all permits issued is rather small (8 percent) when compared with the total geophysical permits issued, over the past 10 years, 3-D permits have averaged 49 percent of all geophysical permits. Permits for deep stratigraphic test wells or COST wells account for about 2 percent of the geological permits.

The overall trends in permitting for all the Regions (i.e. Gulf of Mexico, Alaska and the Pacific) are similar and reflect fluctuations in the price and supply of petroleum. Some regional differences can be detected that are related to leasing moratoria, operating conditions, and hydrocarbon discoveries. Leasing moratoria and bad weather conditions have an adverse effect on the exploration activities.