ABSTRACT

The regulation and supervision of OCS operations is implemented by formally numbered OCS Orders issued by the Regional Oil and Gas Supervisor, with the prior approval of the Chief, Conservation Division, Geological Survey. The enforcement of these OCS Orders is performed by the District Engineer and his staff within his district area. Legislative and regulatory authority for these orders is contained in the Outer Continental Shelf Lands Act of August 7, 1953, and Part 250 of Title 30 of the Code of Federal Regulations. There are presently ten OCS Orders for the Pacific Coast which were effective June 1, 1971. The present Orders evolved from the earliest ones, dated March 31, 1965. They are the field level implementation of that portion of the OCS Lands Act which delegates administrative authority to the Secretary of the Interior by stating, in part: "The Secretary may at any time prescribe and amend such rules and regulations as he determines to be necessary and proper in order to provide for the prevention of waste and conservation of the natural resources of the outer Continental Shelf, and the protection of correlative rights therein,.. ?". The presently effective orders cover a wide range of operations such as: marking of wells, platforms, and fixed or mobile structures; drilling and completion procedures for oil and gas wells; plugging and abandonment of wells; determination of well producibility; requirements for subsurface safety devices; pollution and waste disposal; procedure for installation and operation of platforms, fixed and mobile structures, and artificial islands; procedure for design and installation of pipelines; and procedure for the drilling of twin core holes. Enforcement of OCS Orders can be accomplished under the punitive provisions of the OCS Lands Act, but, on the Pacific Coast, our experience has been that we have been able to obtain good compliance through a cooperative and persuasive relationship with the lessees.

HISTORICAL BACKGROUND

What is believed to be the earliest offshore oil production in the United States was developed off Summerland, California, beginning in 1896. The offshore portion of the field was an extension of an onshore discovery that had been made some time prior to 1894. The offshore wells were drilled from wooden piers extending out from the shoreline. In all, more than 400 wells were drilled and completed at a depth of about 600 feet. At that time, the State of California had no legislative authority to lease tidelands areas so these wells were drilled under leases obtained from the littoral landowners. Consequently, the State of California received no royalty income from this production.

In 1921, the State of California passed legislation which authorized the Surveyor General to issue prospecting permits on State land including tide and 'submerged land. If the permitted made a commercial discovery, he could then obtain a lease on the area for a 20-year period at a statutory royalty rate of 5 percent. If the lease were obtained on proven land, the royalty rate was a minimum of 12½ percent.

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