The New Federal OCS Regulations in the Light of Santa Barbara

Abstract

When the first Outer Continental Shelf leases were issued in 1954, the oil industry was operating near shore in shallow waters. Although regional OCS Orders issued under the regulations have been kept reasonably up to date with advancing technology, the Secretary's regulations had not undergone a complete review by the Department and the interested public since May 1954. The Santa Barbara public since May 1954. The Santa Barbara event triggered the complete review of both the regulations and the OCS Orders. The new regulations and orders not only reflect technological changes but also changes in public attitudes toward preservation of our environment. Of particular interest to petroleum engineers are the provisions petroleum engineers are the provisions requiring much more detailed attention by the Geological Survey to company plans and equipment for prevention of pollution and blowouts before drilling may begin from platforms or mobile rigs. This includes increased Survey attention to the estimated depths to the top of significant markers; to depths at which water, oil, gas and mineral deposits are expected; to the proposed blowout prevention, casing, mud, and cementing programs; and to chokes and similar shut-off devices in wells and pipelines. While some call the new regulations harsh and tending to reduce exploration incentive, most industry spokesmen, we believe, find them to be a simple extension and clarification of practices that responsible oil producers have generally adhered to for producers have generally adhered to for years. If the new regulations have much to say about preventing blowouts and spills, is there any operator who would knowingly run a chance of a blowout? The very small ratio of spills to offshore wells drilled answers the question for the most part, but the fact remains that blowouts and spills do occur, that their potential for damage is great, and that every reasonable precaution must be taken to prevent their occurrence. The new regulations reflect the oil and gas industry's concern for conducting operations that do not interfere with the rights of others, and its responsibility for corrective action when things go wrong.