Biological Services Program FWS/OBS-77/16.3 March 1978 Environmental Planning for Offshore Oil and Gas Volume V Regional Status Reports Part 3: Gulf Coast f y4 n w flGT Fish and Wildlife Service U.S. Department of the Interior The Biological Services Program was established within the U.S. Fish and Wildlife Service to supply scientific information and methodologies on key environmental issues that impact fish and wildlife resources and their supporting ecosystems. The mission of the program is as follows: • To strengthen the Fish and Wildlife Service in its role as a primary source of information on national fish and wild- life resources, particularly in respect to environmental Impact assessment. • To gather, analyze, and present Information that will aid decisionmakers in the identification and resolution of problems associated with major changes in land and water use. • To provide better ecological information and evaluation for Department of the Interior development programs, such as those relating to energy development. Information developed by the Biological Services Program is Intended for use in the planning and decisionmaking process to prevent or minimize the impact of development on fish and wildlife. Research activities and technical assistance services are based on an analysis of the Issues a determination of the decisionmakers Involved and their information needs, and an evaluation of the state of the art to identify information gaps and to determine priorities. This is a strategy that will ensure that the products produced and disseminated are timely and useful. Projects have been initiated in the following areas: coal extraction and conversion; power plants; geothermal , mineral and oil shale develop- ment; water resource analysis, including stream alterations and western water allocation; coastal ecosystems and Outer Continental Shelf develop- ment; and systems inventory, including National Wetland Inventory, habitat classification and analysis, and information transfer. The Biological Services Program consists of the Office of Biological Services in Washington, D.C., which is responsible for overall planning and management; National Teams, which provide the Program's central scientific and techhlcal expertise and arrange for contracting biological services studies with states, universities, consulting firms, and others; Regional Staff, who provide a link to problems at the operating level; and staff at certain Fish and Wildlife Service research facilities, who conduct Inhouse research studies. o" X- ll co- ll i -° in- . m !OI | cO ; m i D I □ . □ : m I o FWS/OBS-77/16.3 March 1978 Environmental Planning for Offshore Oil and Gas Volume V: Regional Status Reports Part 3: Gulf Coast Region by Anthony J. Mumphrey, Jr., Ph.D., P.E., A. I. P. Associate Professor of Urban and Regional Planning and Associate Director and Gino D. Carlucci, Jr., A.B., Associate A. I. P. Graduate Research Assistant Urban Studies Institute University of New Orleans Prepared for The Conservation Foundation 1717 Massachusetts Avenue, N.W. Washington, D.C. 20036 Contract No. 14-16-0008-962 Larry Shanks, Project Officer National Coastal Ecosystems Team National Space Technology Laboratories NSTL Station, Mississippi 39529 Performed for National Coastal Ecosystems Team Office of Biological Serviees Fish and Wildlife Service U.S. DEPARTMENT OF THE INTERIOR Environmental Planning for Offshore Oil and Gas Volume I: Recovery Technology Volume II: Effects on Coastal Communities Volume III: Effects on Living Resources and Habitats Volume IV: Regulatory Framework for Protecting Living Resources Volume V: Regional Status Reports (Separate Reports) Part 1 Part 2 Part 3 Part 4 Part 5 New England Mid and South Atlantic Gulf Coast California Alaska, Washington and Oregon This report should be cited thusly: Humphrey, A.J. Jr. and G. D. Carlucci, Jr. 1978. Environmental Planning for Offshore Oil and Gas. Volume V: Regional Status Reports. Part 3: Gulf Coast Region. The Conservation Foundation, Washington, D.C. U.S. Fish and Wildlife Service, Biological Services Program, FWS/OBS-77/16.3. 158 pp. DISCLAIMER The opinions, findings, conclusions, or recom- mendations expressed in this report/product are those of the authors and do not necessarily reflect the views of the Office of Biological Services, Fish and Wildlife Service, U.S. Department of the Interior, nor does men- tion of trade names or commercial products constitute endorsement or recommendation for use by the Federal government. ENVIRONMENTAL PLANNING FOR OFFSHORE OIL AND GAS FOREWORD This report is one in a series prepared by The Conservation Founda- tion for the Office of Biological Services of the U.S. Fish and Wildlife Service (Contract 14-16-0008-962). The series conveys technical informa- tion and develops an impact assessment system relating to the recovery of oil and gas resources beyond the three-mile territorial limit of the Outer Continental Shelf (OCS). The series is designed to aid Fish and Wildlife Service personnel in the conduct of environmental reviews and decisions concerning OCS oil and gas development. In addition, the reports are intended to be as helpful as possible to the public, the oil and gas industry, and to all government agencies involved with resource management and environmental protection. Oil and gas have been recovered for several decades from the Outer Continental Shelf of Texas, Louisiana and California. In the future, the Department of the Interior plans to lease more tracts, not only off these coasts, but also off the frontier regions of the North, Mid- and South Atlantic, eastern Gulf of Mexico, Pacific Northwest and Alaska. Within the set of constraints imposed by the international petroleum market (including supply, demand and price), critical decisions are made jointly by industry and government on whether it is advisable or not to move ahead with leasing and development of each of the offshore frontier areas. Once the decision to develop a field is made, many other deci- sions are necessary, such as where to locate offshore platforms, where to locate the onshore support areas, and how to transport hydrocarbons to market. Existing facilities and the size of the resource will dictate which facilities will be needed, what the siting requirements will be, and where facilities will be sited. If the potential for marketable resources is moderate, offshore activities may be staged from areas already having harbor facilities and support industries; therefore, they may have little impact on the coast adjacent to a frontier area. An understanding of these options from industry's perspective will enable Fish and Wildlife Service personnel to anticipate development activities in various OCS areas and to communicate successfully with industry to assure that fish and wildlife resources will be protected. The major purpose of this report is to describe the technological characteristics and planning strategy of oil and gas development on the Outer Continental Shelf, and to assess the effects of OCS oil and gas operations on living resources and their habitats. This approach should help bridge the gap between a simple reactive mode and effec- tive advanced planning—planning that will result in a better understanding of the wide range of OCS activities that directly and indirectly generate impacts on the environment, and the counter- measures necessary to protect and enhance living resources. Development of offshore oil and gas resources is a complex industrial process that requires extensive advance planning and coordination of all phases from exploration to processing and ship- ment. Each of hundreds of system components linking development and production activities has the potential for adverse environ- mental effects on coastal water resources. Among the advance judgements that OCS planning requires are the probable environ- mental impacts of various courses of action. The relevant review functions that the Fish and Wildlife Service is concerned with are: (1) planning for baseline studies and the leasing of oil and gas tracts offshore and (2) reviewing of permit applications and evaluation of environmental impact statements (EIS) that relate to facility development, whether offshore (OCS), near shore (within territorial limits), or onshore (above the mean high tidemark). Because the Service is involved with such a broad array of activities, there is a great deal of private and public interest in its review functions. Therefore, it is most valuable in advance to have some of the principles, criteria and standards that provide the basis for review and decisionmaking. The public, the offshore petroleum industry, and the appropriate Federal, state, and local government agencies are thus able to help solve problems associated with protection of public fish and wildlife resources. With advanced standards, all interests should be able to gauge the environmental impacts of each OCS activity. A number of working assumptions were used to guide various aspects of the analysis and the preparation of the report series. The assumptions relating to supply, recovery, and impacts of offshore oil and gas were: 1. The Federal Government's initiative in accelerated leasing of OCS tracts will continue, though the pace may change. 2. OCS oil and gas extractions will continue under private enterprise with Federal support and with Federal regulation. n 3. No major technological breakthroughs will occur in the near future which could be expected to significantly change the environmental impact potential of OCS development. 4. In established onshore refinery and transportation areas, the significant impacts on fish and wildlife and their habitats will come from the release of hydrocarbons during tanker transfers. 5. A significant potential for both direct and indirect impacts of OCS development on fish and wildlife in frontier areas is expected from site alterations resulting from develop- ment of onshore facilities. 6. The potential for onshore impacts on fish and wildlife generally will increase, at least initially, somewhat in proportion to the level of onshore OCS development activity. The assumptions related to assessment of impacts were: 1. There is sufficient knowledge of the effects of OCS develop- ment activities to anticipate direct and indirect impacts on fish and wildlife from known oil and gas recovery systems. 2. This knowledge can be used to formulate advance criteria for conservation of fish and wildlife in relation to specific OCS development activities. 3. Criteria for the protection of environments affected by OCS-related facilities may be broadly applied to equivalent non-OCS-related facilities in the coastal zone. The products of this project—reported in the series Environ- mental Planning for Offshore Oil and Gas--consist of five technical report volumes. The five volumes of the technical report series are briefly described below: Volume I Reviews the status of oil and gas resources of the Outer Continental Shelf and programs for their development; describes the recovery process step- by-step in relation to existing environmental regulations and conservation requirements; and provides a detailed analysis for each of fifteen OCS activity and facility development projects ranging from exploration to petroleum processing. m Volume II Discusses growth of coastal communities and effects on living resources induced by OCS and related onshore oil and gas development; reports methods for forecasting characteristics of community develop- ment; describes employment characteristics for specific activities and onshore facilities; and reviews environmental impacts of probable types of development. Volume III Describes the potential effects of OCS development on living resources and habitats; presents an inte- grated system for assessment of a broad range of impacts related to location, design, construction, and operation of OCS-related facilities; provides a comprehensive review of sources of ecological disturbance for OCS related primary and secondary development. Volume IV Analyzes the regulatory framework related to OCS impacts; enumerates the various laws governing development offshore; and describes the regulatory framework controlling inshore and onshore buildup in support of OCS development. Volume V In five parts, reports current and anticipated OCS development in each of five coastal regions of the United States: New England; Mid and South Atlantic: Gulf Coast; California; and Alaska, Washington and Oregon. John Clark was The Conservation Foundation's project director for the OCS project. He was assisted by Dr. Jeffrey Zinn, Charles Terrell and John Banta. We are grateful to the U.S. Fish and Wildlife Service for its financial support, guidance and assistance in e^ery stage of the project. William K. Reilly President The Conservation Foundation TV PREFACE This report is one of five regional reviews, the fifth volume in a series of background reports on the impacts of Outer Continental Shelf (OCS) oil and gas recovery sponsored by the U.S. Fish and Wildlife Service, Office of Biological Services, and prepared by The Conservation Foundation (under Contract 14-16-0008-962). The five reviews are: New England, Mid and South Atlantic, Gulf Coast, California, and Alaska, Washington and Oregon. Other volumes in the series and the overall purposes of the OCS project are described in the Foreword. The regional reports focus on past and potential impacts on living resources and on their habitats in each region. They also highlight prominent coastal resource-related issues associated with proposed OCS lease sales. The regional reports present brief overviews of the status of offshore oil and gas activities and impacts for the selected regions. They are meant to inform U.S. Fish and Wildlife Service employees and other interested persons outside the subject region who wish to be generally knowledgeable about the status of OCS around the country and both past and anticipated effects on living resources of the region. The reports were prepared by analysts who are recognized for their expertise in OCS impacts or coastal zone management. The contents and organization of the reports are as consistent as possible given regional differences in subject matter and differences in the authors' approaches. Each study has five sections: 1. The initial section of each regional report is a discussion of past and present OCS production. This provides a historical perspective that establishes a setting for the remaining sections. Statistics on lease sales, production and reserves are important topics in this section. 2. The second section describes OCS development and future potential , including industry activities, the present leasing schedule and anticipated future projects. This section varies depending upon the amount of anticipatory investigation completed by public agencies and industry. 3. The third section discusses the effects on living resources of activities that accompany OCS petroleum development. A majority of these concerns occur near shore or onshore, where resource values and high impact potential are concentrated. The relative importance of particular habitats and living resources vary by region. For example, shellfish may be of paramount concern in one region, birds in a second region, and coastal marshes and wetlands in a third region. 4. The fourth section concerns socio economic impacts. These issues are generally treated in less detail, because living resources is the primary subject of the project and the socio economic impact information is only to provide a working background. Since socio economic impacts have been the subject of many other studies, and interest in most areas has centered on socio economic rather than living resource impacts, there is extensive information elsewhere on this subject. Two major topic areas are included in each report: effects of anticipated development and regional interest in OCS. 5. The fifth section is regional information analysis. Publica- tions of regional import are annotated. Each study lists about a dozen publications which contain the best regional research into OCS and related issues. Each regional report is meant to provide a compilation of information available for the region through midyear 1976. vi TABLE OF CONTENTS Page FOREWORD i PREFACE v LIST OF FIGURES ix LIST OF TABLES x ACKNOWLEDGMENTS xii PAST AND PPvESENT OCS PRODUCTION 1.1 Fields and Yields 1 1.2 OCS Exploration and Production Methodology . 13 Exploration 13 Drilling 15 Production 19 1.3 Onshore Support Facilities 26 1.4 Processing/Distribution Network 34 Crude Oil 34 Natural Gas 43 1.5 Environmental Problems 44 OCS DEVELOPMENT IN THE GULF OF MEXICO 2.1 Potential 53 2.2 Leasing 60 2.3 New Onshore Facilities—Off shore Oil Ports . 69 2.4 Processing 74 2.5 Technology Advancement Needs and Potentials. 78 THE IMPACT OF OCS DEVELOPMENT ON LIVING RESOURCES IN THE GULF COAST AREA 3.1 Introduction 88 3.2 Effects of Oil Industry on Living Resources. 91 3.3 The Shrimp Industry 97 3.4 The Oyster Industry 102 3.5 The Menhaden Industry 107 3.6 The Fur Industry 110 3.7 Endangered Species and Protected Habitats. . 113 3.8 Role of Oil Rigs in Sport Fishing 115 3.9 Summary 120 3.10 Concluding Observation 121 3.11 Public Interest Groups 122 SOCIOECONOMIC IMPACTS 4.1 OCS Development Effects 130 Past and Present 130 Future 139 4.2 Public Interest and Attitude 144 VII TABLE OF CONTENTS, Continued Page REGIONAL INFORMATION AND ANALYSIS 5.1 Description of Current OCS Studies 149 Alabama 149 Florida 150 Louisiana 151 Mississippi 152 Texas 153 5.2 Annotated List of Major Studies Available. . 155 Vlll LIST OF FIGURES Fip,ure Page 1.1 Seismic surveying open water areas. 14 1.2 Semi- submersible drilling platforms used 17 in OCS areas . 1.3 A jack-up drilling platform. 18 1.4 An illustration of a drillship used in 20 OCS activities . 1.5 Fixed drilling platform for OCS areas. 21 1.6 A hypothetical four-year offshore planning 22 and field development program. 1.7 Typical directionally drilled wells. 24 1.3 A typical production facility with safety 25 equipment . 1.9 Louisiana ports and waterways used by 28 offshore operations. 1.10 Louisiana airports and heliports used by 30 offshore operation. 1.11 Louisiana highways used by offshore 31 operations . 1.12 Approximate location of the proposed and 33 existing pipeline-f lowline system, offshore Louisiana, March 1974. 1.13 Petroleum Administration for Defense (PAD) 38 districts . 2.1 Leasing areas in the central Gulf of Mexico. 56 2.2 Gulf of Mexico, map of Federal waters. 61 2.3 A hypothetical 4-year industry-oriented 70 offshore planning and field development program. 2.4 Tentative plans for Louisiana Offshore Oil 71 Port (LOOP) . 2.5 R.efineries likely to be affected by superport 75 development . 2.6 Guyed tower platform. 83 3.1 Seasonal movements of shrimp. 99 3.2 Principal oyster producing areas in southeast 105 Louisiana. IX LIST OF TABLES Table Page 1.1 Approved Maximum Efficient Rates for 2 Reservoirs and Maximum Production Rates for Well Completions, January 16, 1976 1.2 Gulf of Mexico OCS Oil and Gas, Federal Waters 5 Summary, 1947-1976 1.3 Gulf OCS Production as % of All U.S. OCS 6 Production and as % of Total U.S. Production for Years 1953-1975 1.4 Total Mineral Production on Gulf of Mexico OCS 7 1.5 Active Platform Rigs, Gulf of Mexico 1976, 12 by Area and Number 1.6 Percent of Total State Oil and Gas Production 36 Produced on the OCS for the Years 1954-1973 1.7 Refinery Receipts of Domestic Crude Oil by 37 PAD/District of Origin 1973 1.3 Transportation of Petroleum Products by 40 Pipeline from PAD District III to Other PAD Districts I, II, IV, and V by Product, for 1973 1.9 Interdistrict Movements by Tanker and Barge of 41 Crude Oil and Petroleum Products in 1973, by Month 1.10 Natural Gas Flow Estimates from Gulf of Mexico 45 Offshore and West Gulf Basin Onshore Produc- tion Areas , 1970 1.11 Major Blowouts Spilling Oil/Condensate on the 47 Gulf of Mexico OCS, in Order of Severity, 1953-1972 2.1 Estimates of Proved Reserves of Crude Oil and 54 Natural Gas at Year-End in the Gulf of Mexico, 19*7-1975 2.2 Drilling Results Offshore Louisiana and Texas, 59 1975 2.3 Proposed OCS Planning Schedule 68 2.4 Existing and Projected Refining Capacity in 76 Southeast and Southwest Louisiana 3.1 Migratory Behavior of Coastal Fishes and 93 Crustaceans 3.2 Louisiana Shrimp Catch, 1940-1974 98 3.3 Louisiana Oyster Catch, 1940-1974 108 3.4 Menhaden Catch for Louisiana 109 3.5 Louisiana Fur Catch, 1974-1975 Season 111 3.6 Protected Habitats on National Wildlife 116 Refuges 4.1 Impact of the Offshore Oil and Gas Industry 131 on the State of Louisiana, 1948-1971 4.2 Service Company Personnel Employed in Off- 133 shore Oil and Gas Industry in Louisiana ,. 1971 x LIST OF TABLES, Continued Table Page 4.3 Population in OCS -Impacted Louisiana 134 Communities , Various Years 4.4 Selected Taxes Collection from Offshore 136 and Foregone from Outer Continental Shelf (1965-1972) 4.5 Estimated Annual Impact on Employment and .1.38 Government Revenues in Texas Resulting from the Estimated Annual Production from the Current and Proposed Federal Leases Offshore Texas, Through 1975, 1970 Constant Dollars 4.6 Existing and Projected Refining and Petro- 142 chemical Capacity in Southeast and Southwest Louisiana 4.7 Projected Total Employment Growth in South- 143 east and Southwest Louisiana Attributable to Superport Projects 4.8 Interviewees' Opinions Regarding the Value 145 of Marshland and Swamps, by Residence XI ACKNOWLEDGMENTS We are very appreciative to a numb3r of people who assisted with these reports. We would particularly like to thank the following for their help and guidance: Dr. Howard Tait and Larry Shanks of the National Coastal Ecosystems Team, Office of Bio- logical Services, U.S. Fish and Wildlife Service, provided guidance and review. Reviewers who commented on draft products include: Dr. Bill Van Horn of the Bureau of Land Management; Mr. Bud Damaburgher of the U.S. Geological Survey and Mr. Al Powers. U.S. Department of the Interior, OCS Coordinator. Additional assistance was provided by U.S. Fish and Wildlife personnel familiar with the area covered by this report: James Barkuloo (Panama City) ; Lee Barclay (Galveston) and James Johnston, National Coastal Ecosystems Team. Dr. J. Clarence Davies , Executive Vice President, the Conservation Foundation, provided institutional review and edi- torial guidance. Portions of the draft reports were reviewed by staff members Raymond Tretheway and Claudia Wilson. Xll CHAPTER 1 PAST AND PRESENT OCS PRODUCTION 1.1 -- FIELDS AND YIELDS The first offshore oil well in the Gulf of Mexico was completed in 1947 in the Ship Shoal area off the coast of Terrebonne Parish, Louisiana (Louisiana Department of Conserva- tion, 1952: 1,3). Information on the present number of pro- ducing oil and gas reservoirs and wells on the Gulf of Mexico OCS, by state, and by offshore area, along with the Maximum Efficient Rates (MER) 1 for reservoirs and the Maximum Production 2 Rates (MPR) for wells as of January 16, 1976, appears in Table 1.1. The Louisiana OCS has 3,020 wells tapping its 1,612 oil reservoirs and 1,773 gas wells tapping 1,167 gas reservoirs for a maximum production rate of 953,406 barrels of oil and 3,989,449 thousand cubic feet (MCF) of gas per day. The Texas OCS has a maximum production rate of 1,330 barrels of oil and 314,559 thousand cubic feet of gas per day from its nine oil wells (7 reservoirs) and 71 gas wells (32 reservoirs) (U.S. Department of Interior, 1976a). ■'■MER is the highest daily rate of production that can be sustained by a reservoir without jeopardizing the maximum practicable ultimate recovery from that reservoir (Melancon, 1977). MPR is the maximum daily rate for completed wells in a reser- voir. The rate is determined by the USGS through quarterly tests of oil wells and semi-annual tests of gas wells. The total MPR's of the wells within a reservoir may not exceed the MER of that reservoir (Melancon, 1977). I r-l •H ,-N C O cd O V£> •r-l co r^ 4-1 c a> o o i-l 3-H T3 4-1 - 0 CU !-i >-i i— < O « S U E o a) 3 U 4J c c •H i-l H X.-H cO cu 14-1 JS J3 O TlH 4J C cd c CO 4-1 d) £ e CO H 4-1 J-l ^ >-l •H ccj 0^0 a > r^ a> V-l ON Q 0) >-i en 01 -co On VO • rH 13 >N " U CU CO O C cO cO •-> CO Pi ^ O co -> •H CO 4-> Q CU \ 4-1 c CU •H o •H m 4-1 W . 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Louisiana's OCS has been the most significant, while the Mississippi-Alabama-Florida (MAFLA) area has been the least significant, with no fields discovered there thus far (Table 1.2). Louisiana's significance is better illustrated in Table 1.3, which shows the relative importance of production on the Gulf of Mexico OCS compared to total U.S. OCS production and to total offshore and onshore production in the U.S. Louisiana has accounted for 99.5 percent of the oil, and 95.6 percent of the gas produced on the Gulf OCS since 1953 (Table 1.3). Of the total U.S. OCS production since 1953, the Gulf of Mexico has produced 96.4 percent of the oil and 97 percent of the gas. Of the total U.S. oil and gas production for the years 1953 through 1975, the Gulf OCS has produced 5.70 percent of the oil and 7.57 percent of the gas . The total production of oil and gas from the Gulf of Mexico OCS is tabulated by year and by state (Table 1.4). Also included in Table 1.4 is the OCS production of sulfur, and salt (which began in 1960 off the coast of Louisiana) . Thus far, none of these minerals has been produced offshore from Mississippi, Alabama, or Florida. (There were, however, oil and gas leases sold in 1959 for the Florida Gulf OCS and in 1973 and 1976 for Mississippi, Alabama and Florida, but no production has resulted from these leases up to 1977.) 1947 Table 1.2. Gulf of Mexico OCS Oil and Gas , Federal Waters Summary 1976 (Source: Offshore, June 20, 1976) Originally Tracts Acres Tracts Acres Bonus dollars offered offered leased leased paid Texas 1,145 Louisiana 3,701 Miss.-Ala. & Fla. 287 Total 5,133 Tracts active Texas 392 Louisiana 1,221 Miss.-Ala. & Fla. 73 Total 1,686 8,710,156 15,318,541 1,619,844 25,648,541 672 1,968 114 2,754 Acres presently in force Presently Bonus dollars presently in force 3,172,455 8,356,003 640,917 12,169,375 Total platforms installed 4,075,858,139 9,393,001,831 1,496,817,103 14,965,677,073 Platforms still Fields active discovered 2,108,160 5,332,344 404,757 7,845,261 3,589,963,970 8,272,849,929 1,437,170,090 13,300,092,989 29 835 2 866 26 32 681 255 2 — 709 287 ■=* CO o CO r-* CO CM CO LO d i— i S3 o •H cO t> t> 1— 1 co ■p o U O •H +-> o H <4-l rJ CD 4-1 o u ft o 6~- a H 14-1 1— 1 cO +-> CO CO O o 4-1 c 0) e 4-1 u CX r> CO o • 73 C to C o ■H 4-1 feS H •H o CD lO o l> LO el o •H +-> o •H CO CJ T3 Q ■H 3 O co ■1-3 5-i P CO <# l> o CO u o CO LO ^ 03 cu o 5-1 o CO o cO 03 03 CO cO CD en o cO CD CXI CO rH CO i— 1 i— i U3 u CD T3 CD t— I <: <+-t LO ON ,— 1 6^ i— ( ■H o 03 LO LO CD o 1 CO G3 03 B 5^ O CO I— 1 SH cO co fl C 5-1 O O CO 0) CD ^ O •H 4-1 CJ O >H CO m ^ O O 3 5-i O 14-1 cO 03 o T3 CO o o fcuO H O 5-i P-> c O •H 4-) O > co c_> O o rH d 0 m o 5-i $s i— I •H O lO 03 03 lo O o o rH CO 0 rH O a -H oo rH CD rH 0) i— I H cO £t C cO ■H to CO cO +-> CO •H cO 2 Eh J H O r-f CO cj o ^-\ X> o VO o r-» ■H X i— i CD S - }-i 14-1 O O •H V4 <+H cd <-\ 4J 3 C o H c m o o c 4-1 o C •H CD 4-> 6 CJ 4-) 3 >H 13 cO O a U CD Pm Q i-i . cO co K • CD 13 c •H • • E CD o nH H co 3 4-) o o CO H v^ O ts« cci aj -P CO CO r-l CD a m Si 0 ntflNlDHH«01C3)^tBNOtDnC\10 ocooo^ciinoiooooomoomcMcocMO oooiooooooNo^tot»Ncon^nco rp m m m H CM o o m ih m m oi en i CD CO t> CO 00 m m t> co CO [> CD CO 00 o CM ■^ C^- G) "tf 00 CO CD 1— 1 H rH rH rH CM CNJ CO CO O CM I 00 rl %f r-l Oi t> 00 C5 00 OOOOOOOOO OOiOiOOOOO CM O) 05 Oi CD O) 05 05 O) CM rH CD O CD o m CM O) CD (S ^ m cm CO vO o o ON o CD [^ m OC005CDCMrHOrHCOt>t>OCM CMCMCMCO^^mCDt^t>l>l>I>l>0000 0005'*COOI>rH'dCOCOOOO 0)l>t>t>t>mmxtrHt>C)COOCOCMrH OCMCOOCOOOO)CM0500000500COCMO) 0005I>0i00C01>rHrH00Ot>(MOO0)CD m CM o CM t> CM 00 CO m in t> oo o CD 05 CO Gi CO -tf Oi m CM Nf t^ O) m CO CO +-> O r- 1 t> m i-H p— i m CM H o •^ m CO o in 00 ^ ■tf ■^ ^ CO CO 00 -P O in in 05 t> t^ t> co m o co co o >H tt cq i-l ^ oo co ^ 05 oo cm ^ t> l-H o c •H •U o o cu rH H CO o 6? oS CD -a CD 6« CU •p ai •p co oq CD pq 65 ci U CD n CD 65 CD ■P oJ +-> CO m I> iH -sf CO m c~- t> co CD CN CM t> ^ (M CM CO CO vo m m m CT> VO 00 -d- co co oo VO OO o o oo o CM OO 1-1 ^ CO CO [^ 00 05 00 00 00 00 00 l> CM CM CO CO ■^ m o o o t> CD 00 CD CD t- CO CO CO m ^ CM m 05 00 ^ CM 05 05 CO o C5 t> I> c- t> r- H 05 O) C5 05 05 05 O i—l i-H rH r-l rH iH H CO < CO < X w < 55 < i— i CO l-H o 65 £.5 65 65 CM I I 00 t> o o o o o o o o o o o m Iff 00 00 CD CO CD CO CO CM 05 C-- r-\ rH CM CD CD co m rH CO 05 05 CO CO CO ^ »J m m 05 t> CM h o CM t> CM l> V CO CO CM m ^ s s r-H rH rH CO o 05 00 CM CO co rH <-A rH u "* a m m m m m CD C5 05 05 05 05 >H r-f 1 CD rl P-: r-t i-H rH r-t d +-> O O OOOrHrHin^P^OOCOCMO^mcOOCXlOO °° OOCOC5CMC5t>''*,OOin mmCOOCMCOrHC5CM CnIco^^cooooooco CM 00 (M oo ■* ts o m to ^f H CO O CO CD CM m t- O CD CD 00 <-t H rHi-HCMCMCOCOCOCO^^H 00 rH t> CO 6s? (-1 CD T3 CD I I iH 00 rH I> I> t> CO O CO ^ C5 CO O in m co 05 in co co 05 < H Eh 68 co +-> cd +-> w o o OOOOOOOC5CMC5OOOC0 ooooooocMCMCM^mco rH t> CO ^ CO CD m 00 < s s OOOOOOOO05C0 oooococDoocDCDCMino 0005t>CN0505in(M^ rHCMOmcMOOOOCM COrHCNrfOCOCOCD COCN-tfCMOCOCOOO •^■^OCOrHOOI>05l>'^O^t>CDO'*IM cMCMCOrH^cococNincNm^cDooinmmco rHrHOQCMCOrHCMCMCO m (M 00 CM 6£ a CD CD Ph m m COt>05t>005^CDCD05^THCMCOmCDI> COCOCOI>OOOt>t>COCOt>-000000000000 00 t> T3 g (0 iH •3 < 53 C/5 O s co 5=H m OCOrHCOOiHCD'vf'^i-ICD0500 COCOCOCMlMCNCNICNCOCOlMrHrH t> m -^ co CM o 00 rH rH m •^ *P 05 CO rH m ^ o r-t CM *# CO CO CD 00 00 00 CD «* O CM 05 i— 1 CO 00 CO 05 I> t> CO 05 00 00 00 CD CO r-i m m O 00 o 05 o ^ r-\ r-t CD CO CO o m 00 o 00 O CO m m i> o H 00 r-{ t> CM CO CM CO t> 00 CM CD o 00 05 o rH CM CO t> l> I> t> i> < 05 05 05 05 05 05 05 05 05 05 05 05 05 05 05 C5 05 05 H r-{ rH r-i r4 rH <-\ <-{ r-{ r-i r-t rH r-f r-{ r-i r-i r-^ r-H r-\ o Eh Table 1.4. Continued, SULFUR AND SALT Year Sulfur (tons) Salt (tons) 1960 98,025 59,794 1961 401,521 528,581 1962 285,975 176,924 1963 552,573 262,951 1964 634,875 212,978 1965 1,090,950 290,804 1966 1,400,848 297,475 1967 1,409,276 274,422 1968 1,553,621 540,651 1969 1,232,939 343,060 1970 1,099,584 269,691 1971 1,178,400 370,406 1972 1,176,833 358,782 1973 1,235,358 381,247 1974 1,303,750 346,411 1975 1,248,134 151,032 TOTAL 15,902,662 4,865,209 In Thousands of Barrels (M). 9 In Millions of Cubic Feet (MMCF). 3 All sulfur and salt production has been offshore Louisiana in the federal area of jurisdiction. 10 Federal areas of OCS jurisdiction in the Gulf have become increasingly important in recent years. Louisiana's area of jurisdiction produced 97 percent of the oil and 31 percent of the gas in 1954 but its share declined to 11 per- cent and 13 percent respectively, in 1975. The State of Texas has fared somewhat better in this regard since its area of jurisdiction extends 3 leagues (approximately 10 miles) from its shore instead of 3 miles like Louisiana's. The Texas area of jurisdiction produced approximately 98 percent of the oil and 100 percent of the gas in the years 1954 through 1965, then dropped significantly. While vary- ing since 1965, its 1975 share was 37 percent of the oil and 63 percent of the gas production in the Gulf of Mexico. Oil production in the Gulf peaked in 1972, and sulfur and salt production peaked in 1968 as indicated in Table 1.4. Total production of these minerals has declined since their peaks. Although natural gas production peaked in Louisiana in 1974, it has continued to rise overall due to the pro- duction in offshore Texas, which has risen each year since 1972. Also, the variation of sulfur production since its peak production year may reflect the current worldwide oversupply of sulfur rather than a depletion of reserves . A total of 173 active and mobile rigs operated in the Gulf of Mexico in 1976 (Table 1.5). Louisiana has the bulk of these rigs and the Eugene Island area is the most active with 14 fixed and 5 mobile rigs. The High Island area has the most activity in the Texas OCS areas with 4 fixed and 11 mobile riB3. Table 1.5 Active Platform Rigs, Gulf of Mexico 1976, By Area and Number (Source: Offshore, January 1976b: 119-122; April 1976) AREA LOUISIANA Bay Marchand Bayou Boeuf Chandeleur Sound East Cameron Eugene Island Grand Isle Main Pass Mobile South #2 St. Mary Parish Ship Shoal South Marsh Island South Pass South Pelto South Timbalier Vermilion West Cameron West Delta Other TOTAL LOUISIANA TEXAS Brazos Galveston High Island Matagorda Island Mustang Island Other TOTAL TEXAS FIXED RIGS1 MOBILE RIGS2 2 1 0 7 14 5 7 0 1 6 6 5 1 3 5 4 10 4 81 0 0 4 0 0 3 7 0 0 1 3 5 1 2 4 0 3 4 5 0 5 7 8 1 8 57 1 4 11 2 5 4 27 TOTAL GULF OF MEXICO j:For January 1976. 2For April 1976. 89 12 84 1.2 — OCS EXPLORATION AND PRODUCTION METHODOLOGY Exploration The exploration segment of the oil and gas industry can be identified as three distinct phases: Regional surveys to identify promising geological formations; Detailed surveys upon which to base the evaluation of specific tracts; and Exploratory drilling -to determine whether oil or gas are actually present (Kash et al . , 1973: 26). Phase 1 is generally passive in nature and includes: looking for natural oil seeps, observing local variations in the earth's gravity, and various methods of detecting changes in the earth's magnetic field, all of which may indicate the presence of oil. Salt domes, a prime location for oil deposits along the Gulf Coast, are located primarily by detecting variations of gravity readings (Kash et al . , 1973: 27). Phase 2 involves a more detailed analysis of specific tracts of land, primarily by two techniques: seismic or geophysical surveying, and direct hydrocarbon detection. Basically, seismic detection, 4 as shown in Figure 1.1, involves the transmission of pulses Adapted from Mumphrey et al . , 1976: 57-94. 4 Until a few years ago, dynamite or some other explosive was used as the source of energy for the pulses. However, since the explosives caused ecological damage and killed marine life, other energy sources have been developed. Currently, almost all seismic work is done with these new energy sources of which there are two principal types. The first type detonates propane and oxygen inside a rubber sleeve, which transmits wave energy directly to the water. The second type is a high-powered ocillator whose frequency changes continuously over a period of a few seconds. Neither of these new energy sources appears to have any significantly adverse environmental effects (Kash et al. , 1973: 30). 13 Figure 1.1 Seismic surveying in open water areas (Source: Offshore Technology Conference 1969, preprints. SPE/AIME owns copyright) \\ \ ^=^r ■ — - — «a* *»* .•.•'-•'•■••■ \- v.- y\/\t ■ -.".• '■ r \ / \ ' 7—-- ^— — — . 'V \ , . • ■ • - . '■„•. . 14 to the ocean floor which are recorded on a seismograph as they bounce back to the surface. The time it takes (inter- vals) for the waves to go down and return reveals whether the formation is hard or soft and the actual depth of the forma- tion (Shell, 1975: 8). Seismic surveys are extremely useful in locating geologic structures that could "trap" oil and gas to form a commercial deposit. Direct hydrocarbon detection is the latest technological advance in the effort to locate more oil and gas reserves (Offshore, January 1976a: 100). It consists of a series of new and different techniques which measure physicochemical phenomena (generation of an electric current) in rocks associated with the presence of underground pooled hydrocarbons (Pirson, 1973: 63-66). Recent gains in successfully pinpointing probable deposits have been rewarding. Phase 3 is centered around the drilling of exploratory wells by one of the four basic types of mobile platforms: drill 5 ships, jack-ups, semi-submersibles , or drilling barges. Each type is designated for and limited by the depth of the water in which it will be operating and the average adverse weather conditions that can be expected to be encountered (Council on Environmental Quality, 1974-III: A-3). Drilling There are five basic types of drilling platforms found on the Gulf of Mexico Outer Continental Shelf; drilling barges, 5 A more detailed description of each type will be given in the upcoming analysis of drilling platforms. 15 semi-submersibles, drill-ships, jack-ups, and fixed platforms. Four of these types — barges, semi-submersibles, drill-ships, and jack-ups — are primarily used in the exploration facet of the oil industry, but may also be used, after oil or gas discovery, for drilling development wells. Barges can be used to drill in water depths up to 600 ft. This depth limitation is primarily imposed by the anchor and chain systems used for maintaining position. Other disadvan- tages are that they are easily affected by adverse weather conditions and lack a self-propulsion system (Kash et al. , 1973: 37). While barges were used extensively in the early years of OCS operations in the Gulf of Mexico, they are not normally used there now. Semi-submersibles are self-contained and supported by either lower displacement type hulls or by large caissons (Figure 1.2). After towing to the drilling site, the caissons are flooded, causing a portion of the rig to be below the sea level. This procedure causes the rig to be virtually unaffected by wave action and generally more stable than a drill ship. Another advantage is that they act as fixed platforms when drilling in shallow water (Jenner et al. , 1973: 127). Jack-ups are platforms with legs that can be extended or retracted, depending upon the depth of water at which the drill- ing will take place (Figure 1.3). With the legs retracted, it becomes a floating platform, thus allowing it to be moved. It can be used either for exploratory drilling when only one well is desired or for multiwell production platform drilling. Its advantages are 16 Figure 1.2 Semi- submersible drilling platform used in OCS areas (Source: Council on Environmental Quality, 1974-1). 17 Figure 1.3 A jack-up drilling platform (Source Fortune, February 1965) . 18 its economy of operation, stability, and the speed with which it can begin operation after arrival at the drilling site (Jenner et al . , 1973: 121-125). Drill ships (Figure 1.4) are self-propelled and therefore capable of moving from one drilling location to another with- out the assistance of ocean tugs or other propulsion units. Two methods, a mooring system with anchors and chains or a dynamic positioning system which uses propellers or thrusters coupled to sensors to detect and compensate for movement, are used to keep the vessel stable during drilling operations (Kash et al. , 1973: 39). Drill ships are usually replaced by fixed platforms (Figure 1.5) following the initial discovery; normally by one of the other four types of rigs. However, they may be used in the developmental stage of a field when it becomes necessary to drill (from 10 to 40 individual) wells directionally for production (Jenner et al. , 1973: 121). Production Once exploratory drilling has located sufficient quanti- ties of oil or natural gas, production and development efforts begin. Due to the complexity of the entire operation, many exploration and field development activities may overlap. Figure 1.6 gives a general breakdown of the overlapping which can occur, beginning before the lease sale and extending through the installation of permanent production facilities (Kash et al. , 1973: 49-50). 19 Figure 1.4 An illustration of a drillship used in OCS activities Source: Fortune, February 1965). 20 Figure 1.5 Fixed drilling platform for OCS areas (Source Fortune, February 1965) . 21 u bO O u a. 4-1 e O) e o r-H > QJ •H M-l X) 9 M •H B cu 43 •• 4-1 CU O O CLS-I >,P A o cy: ^> CD bO •H 8? 5 £ JT .=■ a> !■ 3 •= S > -= ■= i/i 0 £ -r t/i O "*"■ ' E C u 00 S X) o •o u J5 c Q. OJ E u o c o. E 3 JO a 0 w 4- u _£ £ ra c 3 > a* .2P u > 0; o is « £ Q_ a. AS c j i^ o / *- t / 0 _« / 0- / rl_ oo r "* E fl a> (X i_ o w £ ^. c 0 CO o t— E >- '—- * jH r- o £ >. ■a o c 0 J2 u ■^ Q. u 3 ■a c E o u o o. 3 E w T3 2 c O 00 c a. o n 4_l Q. E c 00 c ^ c Q_ rt s E 'C 4> Q a. -D >• ■o u ' J1 v <•> tn >v c 0 , s T3 u c u E E o u c 0 o. E S E E 0 oo c a E !£ -a C IT 0 E in T3 CL E O E ■a — 3 0 o 3 "5. in E o ■a o £ c o a* oo >- "+- a. 3 G f8 0 3 ■o o J5 a- a. 4 a i- 22 Once the field is considered ready for development, a fixed platform is installed from which as many as 20 to 30 wells may be drilled. When the drilling phase has ceased, the drilling equipment is disassembled and produc- tion equipment is installed on the platform (Council on Environmental Quality, 1974-1: 60). Directional drilling is a drilling procedure used by many companies to reach remote areas of a reservoir from a single fixed platform (Figure 1.7). If the quantity of oil found in a reservoir is considered sufficient for commercial development, production results only after completion of the well: Completion can include setting and cementing casing, perforating (cutting holes in the casing which will permit oil or gas to flow from the formation into the well hole), fracturing (applying pressure or using explosives to increase permeability), acidizing (using acid to enlarge openings in the rock formation), consolidating sand (to keep sand from entering the well bore) , setting tubing (conduit for routing the oil or gas to the surface), and 'installing downhole safety devices (valves installed to prevent blowouts during production). Several of these completion activities are aimed at increasing production rate. If performed after initial completion, they are considered servicing or workover operations (Kash et_al. , 1973: 59-60). Equipment on production platforms is used in a variety of ways to alter the crude oil and make it ready for shipment to onshore facilities for refining. The equipment used to separate the crude into oil, gas, water, and solid impuri- ties on a typical production platform is illustrated in Figure 1.8. 23 Figure 1.7 Typical directionally drilled wells ( Source Council on Environmental Quality, 1974-1). 24 o C 3 o c_> 01 o u p o CO \s 4-> c 01 e a. •r-i 3 cr a) >> •U a) <4-4 CO CO XI . ■U /-N •H H S I .r- 4-) , CO 4-> M-l -H i-4 C CO O 3 •H C 4J UH 0 cO T3 4J O C U ac >MJJ 4-1 c < o oo V4 •H ft. ©** ©7 1 cc C/jLU LU > CC LU 0. -I 5 5 oo 1 1 cjg XI Sxi < CO,. LU > >w£ooo ^<^So lu lu i- r- uj SE S < w d a. u. < o 2 »-CMM o 0) 4J ^a & j-> •H X) 4J CD CO CO c PM co x! !^U CO H a CO 0) CD CO •U QJ CO Pi £ rC T3 4-> C 3 CO o CO CO 4-> 4-1 fciH O 2 ao CO c • • CO 0) •H 0 CO M ■H 3 3 o o co ►J ^s cr> 0) 60 •H 28 1976: IV-26) . The major airports and heliports used by offshore operators are shown in Figure 1.10. While the facilities at Dulac , Grand Isle, and Leeville are strictly heliports , some of the other airports , such as Houma-Terrebonne and Nev7 Orleans Lakefront, also contain heliport facilities. Seaplane bases, which are used primarily for onshore oil and gas operations in the wetlands are not included. ( Air- ways Engineering Corporation, 1976: IV-26). Many Louisiana highways are used by offshore operators (Figure 1.11). While most of these highways are not used ex- clusively, nor even primarily, by the offshore oil and gas industry, they do function as part of industry's transportation network. This can result in increased maintenance work and traffic control, or, in some cases, may necessitate widening of a roadway or even construction of a new roadway. For example, in Lafourche Parish, Louisiana, where the oil industry has had a substantial impact, a new road, Louisiana 3090, was needed to provide land access to Port Fourchon , and Louisiana 1, a two- lane highway, is being relocated as a four-lane facility for at least part of its length (Larose-Golden Meadow section) (Mumphrey et_al. , 1976: 313, 316). The need for vocational school programs concerning oil and gas production, -and offshore service industries such as water transportation and ship and boat building and repair repre- sents another type of support facility. The vocational schools, of course, do not exclusively serve the OCS- related industries, but there is a need for vocational schools 29 sf5i en C O •H ■u co n a) & 0 • <"N 0) 13 U cu O 4J & CO en T3 m C m 3 o •« >.a) Xi 4-1 3 T3 •u 01 •H en JJ 3 01 a en i- 4-1 UA o u a* u •H CO t-H •H CO 43 C M CO CXI tO O •H U CD CO >,rH CO CU • 3 T3 C •• ct) CU 0 T3 V4 0) 13 CO O o w to-^ o V4 ■H 4J Ph O 3 >> T3 PQ O In CD Pm (J O >! 3 M XI 0 #i U > Ph T3 E C - cfl 1) iH * O > M M *J CU M Pu H M VH O H ^-^ C m O co r^ ■H 4-1 a- 4-J 0 H Cfl •H 4-1 rH •> (-1 4-1 u O CO 0 c •rH ■H to Q In c a) cfl q 4-1 M < c H Pm M CO CO H M M M > 4-1 U o o •H n 4-1 CO CO •H tH O O B O O 4-1 u M > l-l 4-1 O 4-1 •H O u J-l U m ■ •h en °Q B o o *h 4-1 o o ■H t4 Sh rH 4J 4J CD CO ■H -rH Q Q E C O 4J u Pn 3 4) 4-1 -I CJ O 3 U X> Ph Ph CO CO CM vO 00 r» r-» in m o co 1 00 vo O I** 1 ~ 1 -% ». 1 CM co m 1 - 1 on o o\ ON VD m » r- com I i-H 1-1 vO CM 1 « - * vo on m VD CNl 00 ON CM CO ON CM CO r~» . £ r-l 0 O r-l 4-1 h vO r-l in ON • ON m ►J < H o H Ph o rJ W o w H Ph CU U u CO rO 4-1 o CO ■a c co CO 3 O rC 4-1 0) CO 4-1 en co c cfl 3 o* < 40 Table 1.9 Interdistrict Movements by Tanker and Barge of Crude Oil and Petroleum Products in 1973, by Month (Source: U.S. Department of Interior, 1975) Item Quantity 1000s of Barrels Percent of Total Gulf Coast to East Coast: Crude oil Unfinished oils Gasoline: Motor Aviation Total Gasoline Special naphthas Kerosene Distillate fuel oil Residual fuel oil Jet Fuel: Naphtha type Kerosene type Total Jet Fuel Lubricating oil Wax Asphalt and road oil Liquefied gases Petrochemical feedstocks Other products Total 56,614 14,797 204,258 3,216 207,474 7,192 15,078 97,292 15,951 9,480 31,554 41,034 12,342 573 5,869 1,304 3,226 1,654 480,220 84.77. Gulf Coast to PAD District II Crude oil Unfinished oils Gasoline: Motor Aviation Total Gasoline Special naphthas Kerosene Distillate fuel oil Residual fuel oil Jet fuel: Naphtha type Kerosene type Total Jet Fuel Lubricating oil Asphalt and road oil Liquefied gases Petrochemical feedstocks Other products Total 10,250 120 31,998 732 32,730 3,187 956 11,095 8,652 14 2,612 2,626 3,692 3,523 654 1,872 993 80,350 14.27o 41 Table 1.9 Continued Item Quantity Percent 1000s of Barrels of Total Gulf Coast to West Coast Crude oil Unfinished oils Motor gasoline Kerosene Distillate fuel oil Residual fuel oil Jet fuel: Naphtha type Kerosene type Total Jet Fuel Lubricating oil Petrochemical feedstocks Other products Total GRAND TOTAL 372 675 36 687 1,898 110 691 801 1,491 4 105 6,069 566,639 1.1% 100.07, 42 This relationship between the Gulf Coast and East Coast is significant in that it illustrates the economic dependence of the regions on each other — the East Coast dependent on the Gulf Coast as a source of petroleum products and the Gulf Coast on the East Coast as a market for its products. The prospects for future expansion of refinery capacity is largely dependent on the development of deep-draft offshore oil ports such as LOOP in Louisiana and Seadock in Texas. The potential for expansion of refinery capacity as well as other potential effects of LOOP and Seadock are discussed in Chapter 2. Natural Gas The impact of OCS natural gas production on gas processing facilities in Texas has been minimal due to the very small per- centage of total gas production from the OCS (see Table 1.6). In 1975, there were a total of 358 gas processing plants in Texas with a capacity of 29,452 million cubic feet/day (Oil and Gas Journal , July 14, 1975). However, over 95% of the gas processed was produced onshore. In addition, it should be noted that some of the OCS gas produced in Texas is processed in Louisiana. That is, pipelines from two gas fields in the Texas High Island area come onshore in Louisiana (Oil and Gas Journal, August 19, 1974). The situation in Louisiana is different (Table 1.6). While Louisiana had 122 plants with a total capacity of 23,112.2 MMCF/D (Oil and Gas Journal, July 14, 1975), nearly 50% of natural gas 43 production is from offshore sources. As of 1971, six of these gas-processing units were large main-line plants that processed principally offshore gas and they processed about 85% of the offshore gas produced (American Petroleum Institute, 1973). In addition, one of these plants has been expanded and two new ones built in 1972-1973 so most of the offshore gas is processed at eight plants located at Calumet, Yscloskey , North Terrebonne, Grand Chenier, Lirette, Toca, Henry, and Pecan Island. Distribution of the gas flow from the Gulf Coast both onshore and offshore is estimated for the year 1970 (Table 1.10). It can be seen that the bulk of Gulf Coast needs is supplied from onshore production while most of the offshore production is transmitted elsewhere. The Appala- chian region is the recipient of most of the exported off- shore gas (receiving most of the exported onshore gas as well), getting 1,292 billion cubic feet (BCF) in 1970. 1.5 — ENVIRONMENTAL PROBLEMS The major environmental impacts of OCS development have been in the form of oil spills, dredging and channelization of the wetlands, and onshore development. The specific effects of these actions are discussed in Chapter 3, but this section provides an outline of the major types of oil and condensate spills that have occurred, as well as a discussion of the other types of environmental problems. 44 Table 1.10 Natural Gas Flow Estimates from Gulf of Mexico Offshore and West Gulf Basin Onshore Production Areas, 1970 (in billions of cubic feet) (Source: Federal Power Commission, 1973) West Gulf Basin Offshore Total New England 140 Appalachian 1,981 Southeast 1,083 Great Lakes 1,059 Northern Plains 6 Mid-Continent 190 Gulf Coast 4,396 Rocky Mountain 0 Pacific Southwest 0 Pacific Northwest 0 Alaska 0 Exports 9 Subtotal 8,864 Field Use 802 TOTAL 9,665 103 243 1,292 3,273 516 1,599 624 1,683 2 8 31 221 328 4,724 0 0 0 0 0 0 0 0 1 10 2,896 11,760 169 971 3,065 12,730 Includes onshore Louisiana, Mississippi, Alabama, South Arkansas, and Southeast Texas, 45 Since 1971, there have been no blowouts spilling more than 200 barrels of oil (USDI , 1976d: III-6) . Twenty-one blowouts have occurred since 1953 (Table 1.11). The two worst blowouts occurred in 1970 when Shell and Chevron pro- duction accidents spilled a total of 83,500 to 160,500 bar- rels of oil. Another significant event took place during Hurricane Hilda in 1964, which caused at least 11 blowouts (although the volume of oil spilled is not known) . Other sources of oil pollution resulting from OCS operations include pipeline leaks and ruptures, waste water disposal, and 7 platform explosions and fires. The two major causes of pipeline accidents are through anchor dragging and internal corrosion (USDI, 1976d: III-6) . In 1967, a. pipeline was ruptured by an anchor and spilled about 161,000 barrels of oil (Kash et_al. , 1973: 287). Since 1967, there have been 26 reported pipeline breaks in the Gulf of Mexico of greater than 50 barrels each (spills of 50 barrels or less are not required to be reported) spilling a total of approximately 202,588 barrels (USDI, 1976d: III-6) . The percentage of total oil spilled by offshore facilities accounted for by pipeline leaks and ruptures can be significant. While pipelines are consider- ably safer than barges as a means of transporting offshore oil to shore (virtually all offshore oil is transported by pipe- line), in 1971, pipeline leaks and ruptures accounted for 7 Gulf of Mexico OCS oil operations have accounted for 96.4% of total U.S. OCS oil operations. (See Table 1.3.) 46 Table 1.11 Major Blowouts Spilling Oil/Condensate on the Gulf of Mexico OCS, in Order of Severity, 1953-1972 (Source: Kash, et al., 1973) Year Cause/ Type Company Volume of Oil Spilled (barrels) OR Duration of Spill 1970 Production Shell 53,000 - 130,000 1970 Production Chevron 30,500 1969 Storm Mobil 2,500 - 3,000 1971 Production Amoco 400 - 500 1964 Production Gulf 500 1958 Production 1 CAGC 1 month, 6 day; 1961 Production Exxon 6 months 1960 Production Union Producing 4 months 1966 Drilling Texaco 2 days 1966 Production Union Oil 15 minutes 1964 Hurricane CAGC1 - 1 blowout Gulf - 2 blowouts unspecified Shell - 1 blowout # of days Sinclair - 4 blowouts Tenneco - 3 blowouts Continental 'Data presented as available in source. 47 1,643 spills of 13,309 barrels of oil, or 61% of the total number of spills and 85% of the total volume of oil spilled from offshore facilities in that year (Kash et al . , 1973: 291). Waste water disposal is another source of oil pollution in the Gulf of Mexico. Waste water is the water from the oil reservoir which is produced with the oil. It is separated from the oil, treated again to remove entrained oil and then deposited into the Gulf. The treatment facilities, however, are not 100% efficient. Government regulations permit a maximum of only 50 parts per million of oil in water before disposal but the waste water still accounted for 3,600 barrels of oil introduced into the Gulf of Mexico in 1971. This is a rate of 9 barrels spilled from waste water sources per million barrels of oil/ condensate produced (Kash et al. , 1973: 291-292). Most platform fires are believed to be caused by combus- tible hydrocarbon vapors or liquids making contact with arcing electrical or overhead mechanical devices, however, some fires are caused by accidental ignition of fuel, solvent, or heat exchanger fluids and by lightning or static electricity. From 1956 to 1976, there were 180 recorded platform explosions or fires. However, only 9 of these resulted in spills amount- ing to a total of 87,112 barrels (USDI, 1976d; III-8) . It should be noted that a survey following the 1970 Chevron oil spill did not establish detrimental environmental effects, nor have other accidents resulted in clear documenta- tion of substantial impact. Short-term effects of oil spills include mortality and tissue damage to fishes and invertebrates, 48 but experience has shown that a year after the spills there is recovery of the biological resources. However, it was found that mangrove communities in Panama have not recovered following a spill there, which indicates that among Gulf habitats the man- grove communities and coral associations in Florida could be particularly sensitive (Kash et al. , 1973: 331). Probably the most significant environmental impact of OCS operations has been the effect on the wetlands. First, there has been considerable dredging and channelization of wetlands in order to bury and maintain pipelines, and to provide water transportation access to the offshore facilities from points inland. The effects of dredging and channelization are discussed in Chapter 3. The second significant effect on the wetlands is the urbanization that has resulted from the economic expansion stimulated by offshore operations. In addition to the onshore support facilities that directly support the off- shore operations, secondary development has created a need for more residential, commercial, transportation, and educational facilities, and some of this growth has been at the expense of the wetlands. The socioeconomic impacts responsible for this growth are discussed in Chapter 4. 49 REFERENCES Airways Engineering Corporation. (1976). Louisiana State System Plan, A Report to the State of Louisiana. Airways Engineering Corporation, Washington, D.C. American Petroleum Institute. (1973). Study: The Economic Impact of the Louisiana Offshore Oil Industry on the State of Louisiana. American Petroleum Institute, Washington, D.C. Conservation Foundation. (1976). Environmental Planning for Offshore Oil, Review Draft. Conservation Foundation, Washington, D.C. Council on Environmental Quality. (1974). PCS Oil and Gas -- An Environmental Assessment, Volumes I, III, and IV, A Report to the President. U.S. Government Printing Office, Washington, D.C. Federal Power Commission. (1973) . Report of Executive Advisory Committee National Gas Survey to Federal Power Commission. U.S. Government Printing Office, Washington, D.C. Fortune. (February, 1965). Plumbing the Seas for Oil. Volume 7T, Number 2. Gulf South Research Institute, (no date) . Offshore Revenue Sharing: An Analysis of Offshore Operations on Coastal States, prepared for The Governor's Offshore Revenue Shar- ing Committee. Gulf South Research Institute, Baton Rouge, Louisiana. Jenner, J.W. et al . (1973). Modern Petroleum Technology. Halsted Press , New York. Kash, D. et al. (1973). Energy Under the Oceans. University of Oklahoma Press, Norman, Oklahoma. Levorsen, A.I. (1967). Geology of Petroleum. W. H. Freeman and Company, San Francisco. Louisiana Department of Conservation. (1952). Twentieth Biennial Report of the Department of Conservation. Department of Conservation, New Orleans, Louisiana. Louisiana State University. (August, 1976). Aquanotes . Louisiana State University, Baton Rouge, Louisiana. Melancon, M. (1977). engineer USGS , telephone interview, March 29, Mumphrey, A.J. et al . (1976). The Impacts of Outer Continental Shelf Development on Lafourche Parish. A report to the Louisiana State Planning Office. Urban Studies Institute, University of New Orleans, New Orleans, Louisiana. 50 Offshore. (January, 1976a). Seismic Boats Debut in Open Water. Volume 36, Number 1. . (January, 1976b). Platform Rigs . Volume 36, Number 1, Number 4. (April, 1976). Mobile Units -- Louisiana. Volume 36, . (June 20, 1976). Development Occupies Operators Who Stay Busy Working Gulf of Mexico. Volume 36, Number 7 Offshore Technology Conference. (1969). Preprints . Dallas, Texas: Society of Petroleum Engineers, American Institute Mining Engineers (SPE/AIME owns copyright) . Oil and Gas Journal. (August 19, 1974). New Line Will Gather Gas Far Off Texas. Vol. 72, No. 33. (July 14, 1975). 1975 Survey of Gas Processing Plants. VoT. 73, No. 28. . (March 29, 1976). Survey of Operating Refineries in the DTS. (State Capacities as of January 1, 1976). Vol. 74, No. 13. Pirson, S.J. (1973). Advantages and Limitations of Direct Oil- Finding Methods. World Oil. Volume 176, Number 5 (April) . Shell Oil Company. (1975). The Story of Petroleum. Houston, Texas . U.S. Department of the Interior, Bureau of Land Management. (1973). Final Environmental Statement, Proposed 1973 Outer Continental Shelf Oil and Gas General Lease Sale Offshore Mississippi, Alabama, and Florida. U.S. Government Printing Office, Washington, D.C. , Bureau of Mines. (1957). Minerals Yearbook 1954. U.S. Government Printing Office, Washington, D.C. , Bureau of Mines. (1975). Minerals Yearbook 1973. U.S. Government Printing Office, Washington, D.C. , Geological Survey. (1976a). Conservation Division, Gulf of Mexico Area - OCS . Approved Maximum Efficient Rates for Reservoirs and Maximum Production Rates for Well Completions, January 16, 1976. U.S. Geological Survey, Metairie, Louisiana. , Geological Survey. (1976b). Conservation Division. Outer Continental Shelf Statistics, Calendar Year 1975. U.S. Government Printing Office, Washington, D.C. 51 t Bureau of Land Management. (1976c). Final Environmental Impact Statement Proposed 1976 Outer Continental Shelf Oil and Gas Lease Sale Gulf of Mexico PCS Sale 44. U.S . Govern- ment Printing Office, Washington, D.C. t Bureau of Land Management. (1976d) . Draft Environmental Impact Statement Proposed 1977 Outer Continental Shelf Oil and Gas Lease Sale Gulf of Mexico PCS Sale No. 47. U.S. Government Printing Office, Washington, D.C . Bureau of Mines, (various years). Minerals Yearbook. U.S. Government Printing Office, Washington, D.C, 52 CHAPTER 2 OCS DEVELOPMENT IN THE GULF OF MEXICO 2.1 — POTENTIAL A major indication of the potential of an area as an oil and/or gas producing region is the amount of proven reserves-1- the region holds. The amount of proven reserves on December 31 of the years 1947 through 1975 for oil and 1966 through 1975 for natural gas is tabu- lated for the Gulf (Table 2.1). The amount of oil re- serves increased steadily until it reached a peak of 2,924,095 thousand barrels in 1970 and has decreased steadily since that time. Natural gas reached its peak of 38,785,667 million cubic feet in 1972, then declined in 1973 and 1974, but rose again in 1975 to 37,332,642 I-D1CF. In addition to reserves, the major themes affecting the future of offshore activity in the Gulf of Mexico include the following: disenchantment with the Mississippi-Alabama- Florida (MAFLA) and South Texas areas of the Gulf, renewed interest and activity into the central Gulf area (off Louisiana and the upper Texas coasts), a move into the potentially lucrative deep-water areas, and the emergence of developmental activity in existing fields as more significant than explora- tory activity in previously unexplored areas. The estimated quantities of all fluids statistically defined as crude oil or natural gas, which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions (American Gas Association et al . , 1976: 14). 53 Table 2.1 Estimates of Proved Reserves of Crude Oil and Natural Gas at Year-End in the Gulf of Mexico, 1947-1975 (Source: American Gas Association et al. 1976) Crude Oil Natural Gas Year (1000s of Barrels) (MMCF) 1947 3,247 1948 6,938 1949 26,890 1950 80,624 1951 79,585 1952 78,475 1953 112,032 1954 199,316 1955 429,165 1956 718,698 1957 878,551 1958 1,027,102 1959 1,492,441 1960 1,619,228 1961 1,759,091 19621 1,786,736 1963 1,804,644 1964 1,961,575 1965 2,001,189 1966 2,282,618 30,340,112 1967 2,379,436 34,182,893 1968 2,536,471 35,851,529 1969 2,768,557 35,306,705 1970 2,924,095 37,781,044 1971 2,748,310 38,397,675 1972 2,565,862 38,785,667 1973 2,347,525 36,785,308 1974 2,212,008 35,347,841 1975 2,099,786 37,332,642 Data unavailable prior to 1966, 54 The MAFLA area of the Gulf had interested oil prospectors since the late 1960's with the Destin Dome area (about 50 miles southwest of Panama City, Florida) being the focus of attention. In August, 1970, an onshore discovery, the Jay Field in the Florida panhandle, gave further impetus to offshore exploration and the first lease sale in the area was held in December of 1973. The sale was dominated by the Destin Dome area. Approxi- mately 42% of the winning bid values were for six tracts of the dome, including the two highest bids ever made at an offshore lease sale anywhere in the world (Offshore, 1975: 47-48). How- ever, after drilling seven dry holes in 1974 and 1975, Exxon and its partners, Mobil and Champlin (the holders of the lease) stop- ped drilling and the potential of the Eastern Gulf was reduced to practically zero (Leblanc, 1976: 89). In fact, out of 60 MAFLA tracts offered in the 1976 lease sale, bids were received on only four. The four tracts were subsequently leased at an average price of only $175.00 per acre compared to an average of $3,075 per acre on tracts leased in the 1973 sale (Offshore, 1976). The South Texas area had also presented some hope to oil- men, but seismographic tests dimmed hopes by the end of 1974. The February, 1975 lease sale for offshore Texas drew only a few bids and most of those were for the High Island South area (off the upper Texas coast) (Figure 2.1). Subsequent sales in May and July drew even fewer and lower bids. The bulk of the activity along the Texas coast took place in the upper Texas coast High Island and Brazos areas (Leblanc, 1976: 83). Due to the failure of the MAFLA and South Texas areas to materialize as prime production areas, there has been renewed interest in the central Gulf area, mostly for development of 55 ON co Z o o o C/3 o o •H a 7,888,357 inage tales 8.503.938.264 — — Aug. 11, 1959 38 81,813 19 38,820 S 88,035.121 $2,268 56 06804698 Oct. 9, 1962 38 33.855 9 16,178 43.887,358 2,713 26 1324-1337 April 28, 1964 28 34,028 23 32,674 60,340,626 1,847 69 1351-1373 Mar 29. 1966 18 35,993 17 35,056 88,845,963 2.534 64 1435-1492 Oct. 18, 1966 52 227,898 24 104,717 99,164,930 947 79 1469-1500 Nov. 19. 1968 26 46,824 16 29,679 147.868,789 5,050 38 1858-1878 Jan. 14, 1969 38 96,389 20 48.504 44.087,339 908 40 1879-1904 Dec. 16. 1969 27 93,764 16 60,153 66,908,196 1,112 38 1953-1968 July 21, 1970 34 73,360 19 44.642 97,769,013 2,190 39 1970-1990 Nov. 4, 1971 18 55,872 11 37,222 96,304,523 2,587 33 2125-2137 June 19, 1973 5 303 25,000 4 20,000 53,901,709 2.695 12 2435-2439 Total 804,796 178 467,646 8 889,063,567 — — — Grand Total 3.701 15,318.541 1.968 8,356,003 $9,393,001,831 — — — What was found on the leased acreage No. of Date * Oct. 13, 1954 July 12, 1955 Feb. 24, 1960 March 1962 June 13, 1967 Dec. 15. 1970 Sept 12. 1972 Dec. 19. 1972 March 29, 1974 July 30. 1974 Oct 16, 1974 May 28, 1975 July 29, 1975 Feb. 18 1976 Total Aug. 11, 1959 Oct. 9, 1962 April 29. 1964 March 29, 1966 Oct. 18, 1966 Nov. 19. 1968 Jon. 14. 1969 Dec. 16. 1969 July 21, 1970 Nov. 4, 1971 June 19. 1973 Act** |>i ••••illy >(%> <%i 151 36 26 63 154 66 75 45 113 89 9 141 77 43 18 1.108 6 5 15 11 14 8 12 13 14 11 4 627,412 ( 64) 148,7221 381 70,6991 28) 294.739 ( 64) 737.2701 39) 313,882 1 42) 349,958 1 63) 215.730 ( 74) 516.313 1 96) 410.458 1 97) 46,988 1100) 660,587 ( 98) 355.102(100) 203,821 (100) 74,819(100) 5,026,500 ( 64) 11.363 1 291 8,393 ( 52) 21,532 ( 66) 25.540 1 73) 60,830 ( 58) 14,520 ( 49) 29,994 1 62) 45,598 ( 76) 30.892 ( 69) 37,222 (100) 20.000(100) $ 51.974.874 48,214,843 165.524.650 236,478,649 346,709,668 665,416.583 479.568.307 1,613.489,631 2,013,326.254 7,971,900 1.424.803,455 207,579,050 118,361,688 134,554.317 7,513.973,869 Drainage sales $ 67,989,617 34,947.550 55.485.335 75,805,274 68.283.665 127,793.134 18,747,437 66,843,778 92,874,038 96,304,523 53.901,709 ( 45) ( 48) ( 67) ( 53) ( 68) ( 79) ( 82) ( 97) ( 96) (100) ( 99) (100) (100) (100) ( 88) ( 77) ( 79) ( 92) ( 85) ( 69) ( 85) ( 43) ( 99) ( 95) (100) (100) 278 76 32 87 158 40 62 4 20 11 771 Total 113 305,844 1 65) 758.876.060 ( 85) Grand Total 1.221 5,332,344(64) $8,272,849,929(88) "Leases awarded by state prior to federal jurisdiction Listing includes all federal offerings since 1947. 200 47 23 79 138 38 60 4 20 11 623 4 4 8 6 10 7 2 3 8 2 4 58 681 45 11 9 17 71 21 28 4 18 13 10 247 1 8 255 64 CD a c o CN1 CM QJ H •H En Gulf of Mexico is the only offshore area in the U.S. where the effort to increase leases of offshore oil and gas re- serves is on schedule (Hanna, 1976). The reduced chances of significant finds in OCS leases is reflected in the average price per acre which has declined substantially since the highs it reached in 1974. The March 29, 1974 sale in Louisiana brought a record high bid of $4,967 per acre while subsequent sales brought average bids of $170, $2,248, $585, $581, and $1,793. In Texas, the high- est average bid per acre was $2,605 in the May 29, 1974 sale while average bids since then have not exceeded $600. The January, 1977 proposed OCS Planning Schedule appears in Table 2.3. As can be seen, the most recent lease sale in the Gulf of Mexico was a drainage sale2 held in November, 1976 The schedule also indicates that 5 move lease sales are sched- uled for the Gulf of Mexico through 1930, including 2 in 1977 and 1 each in 1978, 1979, and 1980. This schedule represents a revision of the 1975 schedule, that had become off-target, except for those portions pertaining to the Gulf of Mexico which have remained on schedule. The planning schedule (Table 2.3) indicates the process undertaken by the Bureau of Land Management prior to each A drainage sale is one in which the offered tracts are being drained of their oil and gas reserves by producing adjacent tracts . 67 4-1 c 0) E 4-> u a* Q o d o Q) 3 X) -0) rC o en Mr-- C r-» •H tT> fi .-i c nj •* r-l U PM o •H C/l U CJ 01 o JJ C T3 h (U en 0) 0£ CX4J o !-i 4-1 PM o m O-J cu r-l ,Q cd H CD Q (/) z Z N o 2 CO in a < tf> z tn -> Z u. 3 en < — > a. 5 0- < C/) u. 2 10 z u. U tf) Z I "3 i z a. X O CO Q a. X Ul 2 1 (/) 0- u. Ul O t/1 Z u. Ul to Z U. < (f) Cl X —> Z a. -> to u. X X Ul 5 z a. u. < Ul r- 5 a. u. U X X UJ K h "3 u. Q en r- Q to i UJ Ul Z l/l z a o Q o z i Ul to o to ^> to Z U. 5 Z X H o < a. H O S a X Ul o u. CO L^ H O ~> z U. UJ a 00 Q l/> o Z Z a X Q o o (/>. X 1- to 2 Q_ UJ O 1- < u_ UJ —> 0. u_ Cl "a u. o ? X o X 1- h- 5 to 2 X UJ Ll z UJ 1- -) to CL UJ Q Q 2 a. Q Q Z U_ o O to Q. u. U O to z t- O < U < UJ or < UJ _j < to 5 Jf o o o u o o < Z C\J 1 « E >- S3 c £ < g 3 O O 0> o K B O o in o r> o & y o Jj 10 o o o « O U. o o < o 3 o m m o it M « o 3 o CM o ■o o jC « c o < f o z N m c • o z So o c D O C = « a JO <> o c o o (_> O •E «> E >. o o §e — UJ < o r: J» z> o O • coo 10 in o < ■o 01 in o u o 3 o uo o c o o z 9 C V 09 cr o tr ui UJ X Ul 5 K or < UJ o a » ? • — i z en x uj S u. Cc Z x u- a z E w «l O (0 O — C -1 c o « ° ^ - e ^ a c ut u z CO en 5-4 3 bO O M 5-i 4-i cO C a) a> >> E i a, o ai •h -a 4-> CD T3 4J OJ O -rt CL.M-1 <: co m CNl 0) 5-i bO •H i/i o c E C 4) oo 3, JO o C ■o -O o ^ nj a> "a U D. 3 ■j" E i/i o ,J *«- u c 00 °l/> O T3 E 1 T3 V « E 0. c , o / 13 / JS / Q. / rl oo r ■* E n3 O L. o ui E — ^ C O m I/i o E >- -— * *-• o> r^ ■ T3 U c _o u £ 0) '*- a 3 c q E o o u Q. 3 E ,_, -a 5 c o 00 u i- o c Q. k. IT) 4_t o. E c u DO c o c a. rfl ™ E *c c o Q 0. "S XI it ' * V <-* i^ ^ c 0 i/i 0 E ,*_* ■o 3 0) E E E t/i o E ^ o u 00 •a '-O CN E E o 4/ c ■a ■a jj M O Q £ 3 o a E it o i/i c-» 3 "5. in E •a *■ c a» 0 .= o 0 00 > "4- a. 3 O "G _2 3 ■a o C J a. a. 4 70 vO r-~ CT> i-H 4J u - o >, Ph 4-1 •H i-l u •H O o^c 4-1 CO 3 M< O .fll-H M ctf M-l p M-l -H O S M cO cy C H cfl •H QJ CO !-l •H O 3X O CO hJ M-l M-l V4 O O "4-1 CO (U C o ctf (-1 ^ 3 & O W •i-l ■U ^-n cC Pn 4J O c o 01 hJ H ^ , u C ai CO a ex 3 0 co o u ►, 43 n 0) T3 co a) ■H ■u at o NS -> cfl a) K rO O .. 4J . Vi pH d CU CD Pi Tt m CN cu >-i d W) Pn h " 75 Table 2.4 Existing and Projected Refining Capacity in Southeast and Southwest Louisiana (Source: H. J. Kaiser Company, 1976) AREA TOTAL CAPACITY 1975 1980 1990 2010 Louisiana Superport Baton Rouge Area Refining (MB/D) River Parish Area Refining (MB/D) New Orleans Area Refining (MB/D) 481.0 496.0 571.0 404.5 499.5 574.5 846.0 420.5 837.5 1,326.5 1,451.5 674.5 Subtotal, Louisiana Superport Refining (MB/D) 1,306.0 1,833.0 2,472.0 2,972.0 Texas Superport Calcasieu Area 351.0 878.5 455.5 532.5 TOTAL Refining (MB/D) 1,657.0 2,211.5 2,927.5 3,504.5 Note: This table does not include refining and petrochemical capacity growth not directly related to Superport develop- ment. 76 the nine existing refineries (and possible future refineries) in southeast Louisiana while Seadock will affect the two refineries in the Calcasieu area of southwest Louisiana. As can be seen in the table, refinery capacity in southeast Louisiana is projected to increase to 1,833 million barrels daily (MB/D) by 1980 (the expected first year of Superport operation) , to 2,472 MB/D by 1990, and to 2,972 MB/D by 2010, more than doubling the 1975 capacity. This is based on the estimate that about 40% of the crude oil imported through LOOP will be refined in Louisiana and the remaining 60% will be sent elsewhere via pipeline (H.J. Kaiser Company, 1976: 6). Without a superport, refining capacity in southeast Louisiana is projected to decrease to 1,200 MB/D by 1985 and remain at that level through 2010 (H.J. Kaiser Company, 1976: 9). Since the two refineries in the Calcasieu area are owned by members of Seadock, they are expected to be affected by that project (H.J. Kaiser Company, 1976: 3-4). The capacity of these two refineries (no new refineries are expected in southwest Louisiana) is projected to more than double by 1980 to 878.5 MB/D from the 1975 level of 351 MB/D (Table 2.4). It is then projected to decline to 455.5 MB/D by 1990, then rise again to 532.5 MB/D by 2010. The Seadock project is not expected to result in an expan- sion of refinery capacity in Texas. Since Texas already has a large refinery capacity and production of crude oil in the state is declining, the major purpose of Seadock is to sustain existing refineries at their present levels (Perrin, 1976). 77 2.5 — TECHNOLOGY ADVANCEMENT NEEDS AND POTENTIALS The technological advancement needs of offshore develop- ment consist basically of two types: (a) improvement of exis- ting technology in order to increase efficiency, prevent spills and accidents, and minimize environmental impacts of present operations on the continental shelf; and (b) modification of existing technology and development of new technology in order to exploit the potential resources lying in the deeper waters beyond the continental shelf. Relative to the improvement of existing technology, Kash , et al. , (1973) have identified the technological needs in several categories of OCS operations. These categories include: drilling, production, transportation, and accident response. Successful drilling involves a delicate balance between the weight of the drilling mud and upward pressure exerted by the oil and/or gas reservoir (downhole pressure). Any sudden loss of mud, increase in downhole pressure, or sudden change in drilling rate is an indication of danger. The operation is particularly vulnerable when the drill string is moved into or out of the well bore. While human error due to inexperience, poor training, or inadequate procedures are the ma- jor problems, technological advances to alleviate the situa- tion include improved monitoring of mud weight and downhole pressure, longer-lasting bits to reduce the number of times the drill string must be removed from the bore, separation of wellheads (on multiwell platforms), and fail-safe designs of 73 multiwell platforms to reduce the chances of multiple blowouts and fires resulting from a single failure. Also, development of more automatic drilling equipment and improved training could reduce human error (Kash et al . , 1973: 114-118). Producing wells account for far fewer accidents than drilling- operations . The major area of concern is the trend to multiwell plat- forms. In addition to separating wellheads as already mentioned, there is a need for methods to identify which wells are on fire in the event of an accident. Further development of equipment such as gas and flame detectors, fire control equipment, and personnel escape systems is also necessary. Also, due to possible human error, there needs to be increased emphasis on automatic and fail-safe features of equipment. Finally, the development of automated subsea production systems would reduce the threat of storm damage, avoid conflict with surface uses such as shipping and fishing, reduce aesthetic objections, and reduce the likelihood of human error (Kash et al . , 1973: 118-123) Transportation of OCS production consists almost entirely of pipelines. While pipeline transportation is relatively safe, pipelines are subject to corrosion which leads to leaks, and the dredging and channelization of wetlands in order to lay pipelines has severe environmental impacts. Therefore, the major technological needs involving pipelines include methods for detecting weak points and flaws to prevent leaks, wider use of mass flow monitoring systems to alert an operator when a major break does occur, and a more environmentally acceptable method of laying pipelines in the wetlands. Other needs 79 include methods of laying and maintaining pipelines in deeper waters and the development of multi-phase pumping (simultane- ously moving oil and gas in the same line). Multi-phase pump- ing could reduce use of separate gas and oil lines (diminish- ing the number of pipelines and their environmental effects) as well as eliminate the need for separation and treatment facilities in subsea production platforms (Kash et al , 1973: 124-125). Technologies involving accident response are concerned with four main problems: reestablishing control over wells that have blown out, containing and cleaning up oil on water, salvaging marine life and birds, and cleaning up beaches. Kash et al . (1973) emphasize that the best way to deal with these situations is to improve drilling and production equip- ment and operating techniques in order to minimize spills and accidents. However, recommendations by Kash et al . for better response when spills and accidents do occur include installa- tion of emergency sub-mudline shut-off systems which are not likely to be affected by surface damage, development of fast- response emergency equipment to support well control efforts, development and stockpiling of effective and rapidly deployable containment equipment, research into the behavior of oil in water to enhance spill containment, and continued development of containment and clean-up devices for moderately rough waters (Kash et al . , 1973: 126-130). The second type of technology advancement needed concerns operations in the deeper waters beyond the Continental Shelf, 80 that is, in water depths over 600 ft. (Offshore, 1975: 46) Drillships already have the capability to drill in depths of 4000 to 6000 ft. of water (Carmichael, 1975: 52), and, in fact, the Seagap Group (consisting of Getty Oil, Hispanoil, Phillips, and AGIP) is planning a well in 4,500 ft. of water off the west coast of Africa (Leblanc, 1976: 58). However, there are several new developments which are coming into use that are necessary in the exploration phase of deepwater operations before these wells are able to be completed and brought to production. These include dynamic positioning of drillships (no anchors ), sonar wellhole re-entry (without guidelines) of drill string, electric blowout preventor (BOP) valves for fast response, and marine riser systems capable of supporting the weight of the greater lengths of the drill string, mud, etc. (Carmichael, 1975: 52). Of course, dynamic positioning is needed to keep the drill- ship from drifting while drilling, but it is also needed to be used in conjunction with the sonar reentry system to reenter the wellhole. The dynamic positioning system must bring the drilling equipment to within 2 ft. of the wellhole center- line. From that point, the sonar reentry system will further align it to within eight inches of center, which is within the capability of the connector at the wellhole to adjust and make final connection with the well (Robertson, 1976: 63). Since conventional riser systems are not able to support the added weight of the drill string, mud, etc. , new systems are being developed that use bouyant riser joints to reduce the above water pull required to support the riser system. 81 It is believed that equipment now available can provide bouyancy capable of supporting risers to a water depth of 6,000 ft. (Carmichael, 1975: 53). Conventional hydraulic controls for BOP valves cannot be used in water deeper than 2,000 ft. because it takes too long to respond to a problem and close the valves. A new electro- hydraulic BOP control system has been developed which speeds both response and function control. Its reliability and response time is believed to be adequate in water depths beyond 6,000 ft. (Carmichael, 1975: 53). The production phase of deepwater operations also requires some major advancements in technology. Conventional platforms have a practical depth limit of about 1,200 ft. (Langley, 1975: 41). Currently, efforts are underway to develop a "guyed tower" platform for use in water depths of 600 to 2,000 ft., and subsea production systems for use in water depths of 3,000 ft. or more. The guyed tower platform (see Figure 2.6) is currently being tested by Exxon with a 370-ft. model installed in 300 ft. of water off the coast of Louisiana. It represents a one-fifth scale model of a platform designed for 1,500 ft. of water. The platform sits on a base that is held in place by bridge cables attached to anchors surrounding the structure. The structure is compliant, that is, it moves with the waves 1 to 2 degrees in any direction. The model was installed in 1975 and has been through one winter. Most data was acquired during the 1975 and 1976 winter months (and 82 Figure 2.6 Guyed tower platform (Source: Exxon, no date, a) 83 the results have been encouraging) but the structure will remain in place for 4 to 5 years to test its durability (Burwell, 1976). Currently, two basic types of subsea production systems are being developed. Lockheed is developing a "dry" system consisting of a wellhead cellar (into which production from the well enters the system), a manifold center (which gathers, measures, and controls production (States-Item, September 2, 1976: 2), and a service capsule (a manned atmos- pheric habitat operating from a support boat for installation and periodic maintenance) (Carmichael, 1975: 53). This system is currently being tested by Shell in the Gulf of Mexico in 240 ft. of water. It is designed for use in up to 3,000 ft. of water, but Shell's project manager says it will take at least 5 years before it can be applied in deep water (States-Item, September 2, 1976: 1). The other system is Exxon's SPS , a "wet" system. This system uses clustered wells located on a bottom founded tem- plate containing preinstalled production manifolds and oil- gas separation equipment. It is installed from the surface and maintained remotely using a maintenance manipulator. It is believed that subsea production systems could be ready for widespread use by the end of 1976 or first part of 1977 (Exxon, no date, b). Another major technological advance necessary for deep- water development is pipeline laying in deep waters. Currently, 84 laying pipelines in water greater than 400 to 500 ft. is limited to pipes of 12 in. diameter or less. Also, repair of pipelines and other aspects of OCS activity that require diving present a problem. The deepest actual working dives so far have been in approximately 650 ft. of water although this is being extended and divers are receiving a large number of requests from oil companies to develop a capacity for work in 2,000 and 3,000 ft. of water (Feder, 1975: 57). The sub- contractors and service companies must also improve their technology. These companies must play an increasing role in designing, fabricating, and testing highly reliable components in order to extend their life and reduce their maintenance. This is essential for deepwater and subsea operations (Langley, 1975: 42). 85 REFERENCES American Gas Association etal. (1976). Reserves of Crude Oil, Natural Gas Liquids, and Natural Gas, in the United States aria Canada as of December 31, 1975. American Gas Associ- tion, et al., Washington, D.C. Bureau of Land Management OCS Office. (1976). telephone inter- view, September. Burwell, E. (1976). Public Affairs Official, Exxon Co., tele- phone interview in New Orleans, October 20. Carmichael, J. (1975). Technology Keeps Pace with Industry's Deepwater Action. Offshore. Volume 35, Number 6. (June 5) . Exxon. (no date, a). New Type of Platform Being Tested in Gulf. Exxon Co. Public Affairs, New Orleans, Louisiana. Exxon, (no date, b) . Submerged Production System. Exxon Co. Public Affairs, New Orleans, Louisiana. Feder, J. (1975). Many Countries Have Offered Concessions Over 600 Feet. Offshore. Volume 35, Number 6. (June 5) . Hanna, S. (1976). Oil, Gas Leasing Revisions OK'd. The States- Item. September 21, New Orleans. Section 1, p. 2. H.J. Kaiser Company. (1976). The Effect of Superport Development on Louisiana. Prepared for State of Louisiana Offshore Terminal Authority. H.J. Kaiser Company, New Orleans, Louisiana. Kash, D. et al . (1973). Energy Under the Oceans. University of Oklahoma Press, Norman, Oklahoma. Langley, J.O. (1975). Technical Challenges Faced by Oil Industry, Offshore. Volume 35, Number 6. (June 5) . Leblanc, L. (1976). Development Occupies Operators Who Stay Busy Working Gulf of Mexico. Offshore. Volume 36, Number 7. (July 20). McNabb, D. (1975). Deepwater Drilling Drive Gains Momentum in Gulf. Oil and Gas Journal. Volume 73, Number 36. (September 8) . Mumphrey, A.J. et al. (1976). The Effects of Outer Continental Shelf Development on Lafourche Parish. A report to the Louisiana State Planning Office. Urban Studies Institute, University of New Orleans, New Orleans, Louisiana. 86 Offshore. (1975). Drilling Technology Keeps Pace with Deep Water. Volume 3b, Number 6. (June b) . Offshore. (1976). Foldout. Volume 36, Number 7. (June 20/. Offshore Terminal Authority. (1976) . Louisiana Offshore Terminal Authority Director's Recommendations for Site Approval of Offshore Terminal Facilities as Proposed by LOOP, Inc. Offshore Terminal Authority, New Orleans, Louisiana. Perrin, S.F. (1976). Executive Director, Louisiana Offshore Terminal Authority. Telephone interview. October 1. Robertson, R. (1976) . Guidelineless Drilling and Completion Systems Reach for Deep Water. Offshore. Volume 36, Number 6. (June 5) . States-Item. (September 2, 1976). Deepest Gulf Wells Producing Off Louisiana. New Orleans. Section 1, p. 1-2. U.S. Department of the Interior, Bureau of Land Ilanagement. (1977). Proposed PCS Planning Schedule. U.S. Government Printing Office, Washington, D.C. . Bureau of Land Management. (1976a). Final Environ- mental Impact Statement Proposed 1976 Outer Continental Shilf Oil' and Gas Lease Sale Gulf of Mexico PCS Sale "44. U.S. Government Printing Office, Washington, D.C. Bureau of Land Management. (1976b). Draft Environ- mental Impact Statement Proposed PCS Lease Sale Gulf of Mexico PCS Sale 47. U.S. Government Printing Gffice, Washington, D.C. U.S. Department of Transportation. (1976). Draft Environmental Impact Statement, LGPP Deepwater Port License Application. U.S. Coast Guard, Office of Marine Environment and Systems, Washington, D.C. 87 CHAPTER 3 THE IMPACT OF OCS DEVELOPMENT ON LIVING RESOURCES IN THE GULF COAST AREA1 3.1 -- INTRODUCTION This chapter presents a discussion of OCS-related impacts on the shrimp, oyster, menhaden, fur, and sport fishing industries in Louisiana. Also included is a list of public interest groups and agencies concerned with environ- mental management. While the discussion of ecological effects applies to the entire Gulf Coast area, the specific examples cite only Louisiana because nearly all Gulf OCS development has occurred offshore of Louisiana and has affected the entire coastal zone of the state. By comparison, OCS development in Texas has been minor and has had an impact on only a portion of its coastal zone • There have thus far been only explora- tion activities offshore of Mississippi-Alabama-Florida; no production has yet occurred in that area. Wetlands serve as a nursery, habitat, and source of nutrients for many aquatic and fur animals. Destruction of wetlands leads to diminished production from these organisms. Natural and man-made phenomena cause stresses and destruction of the wetland environment. Natural stresses result from wave erosion, hurricanes, natural sedimentation from rivers and streams, natural pollution (such as oil seeps and natural Adapted from Mumphrey etal. , 1976a. 88 phosphorus), certain marine organisms, geologic subsidence and other factors. Man-made changes in the wetlands which have caused environmental stress include pollution from urban runoff, industry, and pesticides; and channelization, drainage, and filling of wetlands for urbanization, agriculture and mining. All of these cause loss of habitat and productive capabilities. Channeling and dredging in the marsh and estuary areas are necessary for access to offshore and onshore oil facilities, laying pipelines, and constructing oil wells. As a consequence, various ecological changes occur along with oil industry development (Mumphrey et al . , 1975: 41-95). Mumphrey et al . (1975: 86) list the following ecological changes in coastal zones caused by channelization and dredging by the petroleum industry: Interfering with sheet water flow through the marsh ; Allowing rapid salinity changes with the resultant death of vegetation and erosion of the marsh; Allowing destruction of marsh by wave action; Decreasing productivity by the presence of straight vs. sinuous channels that accelerate removal of freshwater and also confine water movement ; Destruction of barrier islands with resultant increased destruction of marsh. 89 The flushing rate (movement of fresh water from wetlands into bayous and to the Gulf) increases when north-south bayous are straightened and deepened. This results because the water does not have time to unload sediment and nutrients in the wetland area. The faster movement of water in the bayous and canals also causes erosion along the unstable banks of the streams. Other channels that are dug east-west across the marsh create spoil banks that interrupt the normal north-south sheet-like flow of water. This flow of water is important because it disperses nutrients and detritus over the wetlands. Additionally, man-made channels disrupt nursery areas of many commercially important marine animals (e.g., shrimp and menhaden). Dredging and channeling for the building of oil wells and pipelines can often destroy vegetation and habitats of marsh animals. (See Mumphrey et al. (1975: 86-89) for a more complete discussion.) Burying pipelines and the revegetation of their paths through the marshes mitigates but does not eliminate the effects of the associated channels (Willingham et_al. , 1974). Also, creative dispersal of spoil banks can mitigate some of the effects of channelization. Where deep, straight canals are cut, salt wedges can result and extend far inland, causing the death of vegetation which results in the loss of nutrients, habitat, and erosion 90 in the wetlands. These large, straight canals carry high velocity seawater (waves) during hurricanes and destroy vegetation. After a hurricane, the spoil banks tend to trap the saline seawater in the wetlands and prohibit it from draining. The result is the destruction of more vegeta- tion and erosion. Also, the dredging of canals near barrier islands helps speed their destruction. Normally, these islands protect the plant and animal life of the wetlands from destruction by storm-generated tidal surges and diminish wetland erosion (Mumphrey et al . , 1975: 89-93). The seafood and fur industries in Louisiana are rather large. Therefore, preservation of wetlands productivity is important to the state's economy. In 1974, 1,228,906,000 pounds of seafood with a value of $86,694,000 were landed in Louisiana. For the same year there were 9,500 full-time and 4,050 part-time commercial fishermen in Louisiana Louisiana's seafood catch is about one-quarter of the nation's total catch (U.S. Department of Commerce, 1975: 18 and 76). 3.2 — EFFECTS OF OIL INDUSTRY ON LIVING RESOURCES Most of the commercial fishes important to Louisiana industry rely on estuaries for food or live part of their 91 lives in the estuaries. Table 3.1 shows the migratory behavior of selected coastal organisms. Fish are subjected to two stresses from the oil industry: pollution from oil spills and destruction of estuary nursery and feeding grounds. Channeling and dredging have increased salinity in most of the estuary and marsh areas of Louisiana. Changes in salinity cause changes in flora, plankton, and overall habitat. Levee building for drainage and flood protection decreases the amount of freshwater runoff from land. This, in turn, leads to a depletion in nutrients necessary for plankton life (fish food). Straightening channels and bayous increases the flushing rate and turbidity of the stream or stops sheetwater flow, resulting in diminished wetland nutrients. Increased turbidity affects ability of many plankton species to float (Patrick, 1967). Fish populations can be damaged in five major ways by oil spills'. Coating and exposure to hydrocarbon concentrations in excess of 0.1 ppm cause eggs and larvae to die; Adult fish, especially anadromous fish, die or fail to reach spawning grounds if a spill occurs in a critical, narrow, or shallow waterway; Contaminated spawning of nursery grounds causes loss of a local breeding population; 92 Table 3.1 Migratory Behavior of Coastal Fishes and Crustaceans (Source: Dames and Moore, 1975) Movement into Estuaries Month (or nearshore zone) Movement from Estuaries Jan, Feb Mar, Apr May June July Aug. Sept Southern hake, red drum (peak) Gulf menhaden, spadef ish Stingray, brown shrimp post- larvae, Gulf menhaden, spade- fish Gulf killifish, spot, cutlass- fish, hogchoker, butterfish, rough silverside, flounder, tonguef ish Gafftopsail catfish, sea catfish, bluefish, bumper, sand seatrout, southern king- fish, shipjack herring (in and out same month) , adult Atlantic croaker, black drum (peak) , pinfish, Atlantic threadfin, toadfish, midshipman Striped anchovy, lizardfish, sardine, Spanish mackerel, white shrimp postlarvae Needlefish, pompano , crevalle jack, leatherjacket , Atlantic moonf ish Ladyfish, lookdown Blue catfish, sheepshead minnow, long- nose killifish Bighead searobin Gulf menhaden, southern hake, brown shrimp juveniles Butterfish Ladyfish, Atlantic threadfin Adult Atlantic croaker, rough silverside 93 Table 3.1 Continued, Movement into Estuaries Month (or nearshore zone) Movement from Estuaries Oct, Gulf menhaden, sheepshead minnow, bighead searobin Nov. Blue catfish, juvenile Atlantic croaker Dec Longnose killifish Sardine, blue- fish, leather- jacket, Atlantic moonfish, sand seatrout, cut- lassfish, Spanish mackerel Striped anchovy, gaff topsail, sea catfish, needle- fish, pompano, crevalle jack, bumper, lookdown, pinfish, tongue- fish, toadfish, midshipman, white shrimp juveniles Stingray, lizard- fish, Gulf killi- fish, spot, sou- thern kingfish, flounder, hog- choker 94 Productivity and spawning patterns are changed; Local food species of adults, juveniles, fry, or larvae are affected (Council on Environmental Quality, 1974: 107, 109). Moore and Dwyer (1974: 819-827) describe five ways indi- vidual organisms including birds respond to the effects of oil pollu- tion. The first is direct lethal toxicity , resulting in death. Cellular and sub-cellular processes, especially membrane activity, are interfered with by the hydrocarbons released by crude oil. The most toxic of the hydrocarbons (the chemical components of petroleum) are the lower boiling point aromatics. These stay in the environment the longest. The larva and juvenile species are more sensitive to toxic matter than the adults. Adult marine organisms respond to lethal toxic levels from concentrations of soluble hydrocarbons in the 1 to 100 parts per million (ppm) range. Larval stages may be affected by levels as low as 0.1 ppm. The second response is sub-lethal disruption of physio- logical or behavioral activities. Disruption of cellular and physiological processes does not include immediate death, though it may occur in the long-run. Feeding and reproduction of species are possibly affected. Direct coating of oil is the third response. This can cause smothering of the species and/or interference with feeding and movement. Oil can also destroy the waterproofing and insulating properties of animals with feathers and fur. 95 Oil can be ingested as animals try to clean themselves. Bird mortality, as a result of direct oil coating, has been well-documented along the California coast. The fourth response is the incorporation of hydro- carbons in food chains. This includes tainting of edible organisms , such as oysters and clams. Accumulation and concentration of polycyclic aromatic hydrocarbons are major concerns especially since this includes carcinogens. The final response listed is changes in biological habitats, especially alteration of substrate characteristics. The substrate is the ocean floor material that supports plant or animal life. Species living passively on the substrate (not depending heavily on the substrate for support) may have little or no interference with their habitat. Flora and fauna living in the substrate or actively dependent on it may experience adverse effects (Council on Environmental Quality, 1974: 106). Although the quantity and types of oil that may prevent a species from utilizing a sub- strate are unknown, analysis of data indicates concentrations of 10 to 100 parts per billion (ppb) of low to medium boiling point aromatic hydrocarbons may interfere with the species' relationship to the substrate. Chemical sensing and communi- cations upon which anadromous fishes depend will be interfered with by the presence of aromatic hydrocarbon derivatives in such concentrations (Council on Environmental Quality, 1974: 106-107). 96 3.3 — THE SHRIMP INDUSTRY Louisiana's most important fishery in dollar terms is shrimp. The catch for the years 1940 to 1974 ranged from 31 to 103 million lbs. (Table 3.2). Since trawling is performed over extensive acres of water, oil platforms do not affect the size of the shrimp catch. Of the several species caught in state waters, brown shrimp (Penaeus aztecus) and white shrimp (Penaeus setiferus) are the most important. During the 1958 to 1971 seasons, brown shrimp totaled 41% of the total Louisiana shrimp production. White shrimp, at one time, contributed 95% of the total offshore Louisiana catch. However, because of increased amounts of fresh water into estuary nursery grounds, where shrimp spend considerable time, there has been a decline in the catch since 1952 (Barrett and Gillespie, 1973). White shrimp spawn in the open Gulf during May through July (Figure 3.1). After that, the larvae return to bays and estuaries and mature to adults in the safety of nursery grounds. The adults then return to the Gulf in the early spring and live in waters less than 100 ft. deep (Viosca, 1957: 8-9). 97 Table 3.2 Louisiana Shrimp Catch, 1940-1974 (Source: U.S. Department of the Interior, 1955-1969 and U.S. Department of Commerce, 1970-1974, 1975) Year Quantity (1000 lbs. ) Value Before processing (1000 $) 1940 1941* 1942* 1943* 1944* 1945 1946* 1947* 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 90,820 103,352 79,966 77,046 70,630 78,164 75,854 81,589 77,709 68,986 56,886 31,917 39,760 57,036 61,758 31,027 43,585 80,809 59,382 62,593 62,276 75,325 67,768 82,888 90,948 92,481 83,035 58,653 59,591 3,645 12, 402 16, 827 17, 662 14 696 17 587 15 722 16 427 15 451 13 745 15 316 9 660 13 080 12 803 15 881 8 913 14 985 19 ,789 18 794 19 ,584 24 ,390 24 ,575 25 ,623 33 ,358 34 ,614 43 ,285 47 ,066 44 ,513 32 ,206** *Data not available for these years **As it appears in source. 98 Figure 3.1 Seasonal movement of shrimp (Source: Dames and Moore, 1975). White Shrimp Brown Shrimp mJBE i 4 1 i 4 4 ■ » »««»«».... Jan . I Feb. I Mar. Apr. May I Junel July Aug. I Sept Oct . Inov. I Dec LEGEND : Shrimp m Spawn — Gulf of Mexico Larvae — Bays and Estuaries Post Larvae — Nursery Grounds (Bays and Estuaries) Adult — Gulf of Mexico 99 Since fishermen have extended their trawling grounds into deeper Gulf waters, the brown shrimp has become more important than the white. Brown shrimp are associated with muddy substrates of peat and sandy mud. They bury them- selves during the day and at night they feed in the Gulf's surface waters. Trawlers bring in their greatest catches during summer nights. Brown shrimp spawn in the open Gulf waters during fall and early winter. Larvae reaching the estuary nursery grounds remain until maturity when adults return to the open water in June (Figure 3.1). Brown shrimp are more tolerant of high salinities than white, 19 ppt (parts per thousand) being an optimum salinity (Barrett and Gillespie, 1973). Growth of the brown shrimp is dependent on moderate temperatures, 20 C or greater, and salinity near 19 ppt (White, 1975). Estuarine nursery grounds provide shrimp with safety until they reach maturity. Plants, animals, and inorganic and organic detritus in the nurseries provide food for the shrimp. The estuarine nursery grounds are affected in two major ways by man's activities. First, changes in salinity and chemical composition of water are the results of channeling. Secondly, loss of vegetated marsh areas by channeling and dredging reduces the shrimp supporting capacity of the estuaries (McGinnis et al., 1972: 3-24). Another problem which may affect the shrimp catch is the laying of pipelines. Pipelines laid in bays and offshore 100 waters are either buried in the seabed or are eventually covered by the substrate (ocean floor material that supports plant or animal life). Occasionally, before pipelines are covered, or when they become uncovered by water current action, trawlers face navigational hazards. Nets could become caught and snagged on exposed lines. For the same navigational reasons, trawling is not performed near oil platforms. However, many people believe the pipelines do not interfere with overall yields. Willingham et_al. (1974: 135) concluded "offshore pipelines ... didn ' t appear to diminish yields of aquatic organisms." Many shrimpers say the best trawling areas are along underwater pipelines. Shrimp and other smaller fishes hide from predators and feed in the abundant growths of seaweed found on both sides of a pipeline (LaPlace, 1976). The largest shrimp production areas are in Terrebonne and Lafourche Parishes with Barataria and Caminada Bays being the traditional center of brown shrimp production in Louisiana (Dames and Moore, 1975; White, 1975). Only slightly less important are Timbalier and Terrebonne Bays. These are areas with much OCS activity. 101 While shrimp catches are important, processing is a necessity to distribute the various shrimp products. Shrimp producers sell shrimp in several forms including fresh headless, fresh peeled, fresh heads-on, frozen peeled, frozen heads-on, frozen heads-off, canned and dried. The Louisiana Advisory Commission (1973: 187-188) recommends that the dockside value of commercial catches be multiplied by a factor of between 2.5 and 3.5 to obtain the total worth of production after value added in processing. Using a factor of 3, a catch of 59.5 million pounds in 1974 (Table 3.2) is valued at $32.2 million before processing and $96.6 million after processing. 3.4 — THE OYSTER INDUSTRY The Eastern oyster, Crassostrea virginica Gmelin, is the only commercially valuable oyster taken in Louisiana waters (Pollard, 1973). Although Crassostrea virginica may live in a salinity range of 10 to 30 ppt, it is usu- ally found in salinities of 10 to 15 ppt. Large populations of the Eastern oyster inhabit lower salinities compared to many less tolerant oyster predators, such as the fungus Dermocystidium marinum and the conch (commonly called oyster drill) Thais haemastoma. These two predators cannot survive in a low salinity environment. 102 Dermocystidium marinum infects oysters usually during high temperature periods and in salinities above 10 ppt . Infection is usually lethal to the host oyster, but also may cause loss of weight, castration, and failure to grow normally. A change to a lower salinity achieved by fresh- water flushing of the estuary is believed to be the best way to rid the oyster bed of the fungus (Mackin, 1962). The conch Thais haemastoma hayse is common in the northern Gulf waters. T^ haemastoma feeds on oysters and other mollusks by drilling holes in the shell or penetrating the shell from the edge by secreting enzymes that soften the mollusks' shell. The conch has a high reproductive rate and the larvae have a high survival rate. A salinity of 10 ppt or lower will prevent the conch from entering waters and exposure to a salinity of 7 ppt or lower for 1 or 2 weeks is known to kill it. T^ haemastoma breeds in Louisiana during a period beginning no later than the end of March and ending in July. The conch's tendency to climb on rocks or structures above ground to attach its eggcases has led many oyster growers to erect stakes in the oyster grounds to trap the animal (Galtsoff, 1964: 433). The majority of Louisiana's oyster production depends on "seed" oysters taken from state-managed seed grounds east of the Mississippi River and transported to private grounds for cultivation. Cultivating oysters has become more important in Louisiana with the depletion of natural oyster reefs. Some believe that the decline in productivity in the natural oyster reefs 103 is due to overfishing more than the effects of salinity changes. Mackin and Hopkins (1962) define an oyster reef as "an area of not less than 500 square yards of the bottom of any body of water upon which oysters are found or have been found within a term of five years... in quantitites which would warrant taking them for profit by means of tongs." The largest natural oyster reef in Louisiana is the Point au Fer reef in the Atchafalaya Bay (Mackin and Hopkins, 1962). The first seed plantings were tried in 1886 near the end of the Mississippi River delta with the Garden Island Bay oyster culture. Plantings were later begun below Quarantine Bay in an area known as the "Salt Works" (Mackin and Hopkins, 1962). Natural reefs were used to provide seed oysters. Oysters are dredged from the seed areas and trans- ported to public and private leases for cultivation. Figure 3.2 shows the principal lease and seed grounds in southeast Louisiana. Louisiana oysters tend to grow faster, spawn more abundantly, and have a larger population in salinities up to 30 ppt . The abundance of natural predators in higher salinities forces the oyster to keep to lower salinity waters. Mackin and Hopkins (1962) believe the best oyster producing areas are high salinity waters where freshets 104 Figure 3.2 Principal oyster producing areas in southeast Louisiana (Source: Dames and Moore, 1975). L10CH0' LU - IHSCO IIOIWI E73 - SCtO »IIOUMD »tlC«V*IIOIrt ^m - >tco exouMoi rod ■■ m»UC Ulf — — MTDKOIMIC UWT »OU»0«T IOI5JOMICI fc£=£« •8 \ - GULF OP MEXICO 10* J '8 "6 3220000 » " • Q0000<*[. 105 (freshwater intrusions) drive out or kill predators. Oysters can withstand freshets by shutting their shells for long periods . The oil industry has had two main effects on the oyster populations of Louisiana, one direct and another indirect. Oil pollution directly affects the commercial value of the oyster. Oysters are sessile (attached to the substrate) filter feeders. While feeding, they can ingest crude oil and concentrate it in their systems. The ingestion of oil does not affect their feeding process; however, an oily taste is imparted, making them. undesirable in markets. Over time, if the oil is dispersed, the oysters will eventually lose the oily taste. In a study done on the effects of an oil spill from a Mecom Oil Company well, Mackin and Sparks (1962) found that after 2 months, the oily taste had "probably disappeared" from a great number of the population in the most contaminated area (located in Grand Isle Block, Freeport Sulphur vicinity ), because of the breakdown of the oil. Salinity changes have been caused indirectly by the oil industry through channeling and dredging for access to offshore oil facilities. The increases in salt water allow the oyster predators to enter oyster grounds and often cause serious 106 damage. Also, dredging that covers oyster beds or dislocates oysters from the substrate can cause destruction of the oyster reef . The catch and value of oysters in Louisiana was tabulated for the years 1940 through 1974 (Table 3.3). In 1940, 12,412.1 thousand pounds of oysters were taken at a value of $694,875. In 1963, 11,463.2 thousand pounds of oysters were valued at $3,720,113 and in 1974, 9,971 thousand pounds were valued at $6,347,912. The 1968 catch was the largest catch at 13,122 thou- sand pounds and was valued at $5,305,000. The 1974 catch, after processing would be valued at over $19 million. 3.5 -- THE MENHADEN INDUSTRY Since its beginning in Louisiana in 1948, the menhaden fishery has been an important commercial fishery in the state and recently is second only to shrimp. The dominant species caught is the Gulf menhaden (Brevoortia patronus) . Industries use menhaden oil for manufacturing margarine and in a wide variety of industrial products and processes. Menhaden fish meal and solubles are used for agricultural purposes. Louisiana's menhaden catch has greatly increased since 1948, based on the market for the fish and unrelated to the oil industry (Table 3.4). The processed value would be over $118.5 million. The size of the menhaden purse-seine catch apparently is not affected by the presence of oil and gas plat- forms. Inshore, the degradation and loss of menhaden estuarine nursery areas are related to man's activities, such as dredge and fill and channelization. 107 Table 3.3 Louisiana Oyster Catch, 1940-1974 (Source: USDI , 1955 to 1969 and USDC, 1970 to 1974; 1975) Year Pounds (in thousands) Unprocessed Value 1940 1941* 1942* 1943* 1944* 1945 1946* 1947* 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 12,412.2 9, 884. 1 9 016. 3 9 687. 5 8 715. 4 8 163. 7 11 401 6 9 435 3 8 361 1 9 394 9 10 056 1 10 489 3 8 264 8 9 667 5 8 310 8 10 139 2 10 160 3 11 563 2 11 401 1 8 342 7 4 ,764 0 7 743 0 13 122 0 9 ,178 .0 8 ,639 .0 10 ,528 . 0 8 ,805 .0 8 ,953 .8 9 ,971 .2 $ 694,875 2, 829, 007 3 157 393 3 459 341 2 842 603 1 902 647 3 075 141 2 672 664 2 350 270 2 753 177 2 238 034 2 756 098 2 425 917 2 645 124 2 303 997 2 849 090 3 316 554 3 720 ,113 2 976 152 2 401 607 2 156 000 3 414 000 5 305 000 3 969 000 3 631 000 4 638 000 4 457 ,000 5 545 022 6 ,347 ,912 *N0TE: Data not available for these years 108 Table 3.4 Menhaden Catch for Louisiana (Source: USDI , 1955 to 1969 and USDC, 1970 to 1974, 1975) Year Catch (1000 pounds) Unprocessed Value (in thousands $) 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 88 165 207 209 283 307 270 298 320 162 241 442 470 581 689 633 599 682 555 510 622 856 959 1,237 928 894 1,079 ,110 ,914 ,755 ,574 ,373 ,492 ,094 ,309 ,521 ,817 ,813 ,740 ,108 ,682 ,157 ,484 ,538 ,435 ,852 ,414 ,291 ,251 ,810 ,093 ,252 ,931 ,304 2, 3, 3, 4, 4; 2 3 * * * 765 ,690 ,727 ,594 ,840 ,459 ,627 * * 6,748 7,994 7,862 9,046 11,790 9,558 6,134 7,740 12,764 18,931 20,015 15,279 37,221 39,539 *NOTE: Data not available for these years 109 3.6 — THE FUR INDUSTRY O'Neil and Linscombe (no date) studied the fur industry of Louisiana and found that the state leads the United States in fur production, amounting to 40 to 65 percent of the nation's annual total harvest. Fur trapping began in Louisiana in the 18th century with the founding of New Orleans. Furs were transported to the city and shipped to all parts of the world. Mink, raccoon, otter and alligator were hunted in Louisiana coastal marshes during the 1800' s0 Burning of the marsh to make alligator habitats more accessible to hunters, and other factors such as salinity changes, caused alterations of the marsh vegetation. These man-induced changes to the marsh produced a favorable environment for the muskrat . During the early 1900' s efforts were begun to trap muskrat in large numbers. Nutria were first brought to Avery Island, Louisiana, in 1938 from Argentina by Mr. E. A. Mcllhenny. During captivity, some nutria escaped and others were intentionally released. This resulted in the establishment of a sizeable population in south Louisiana by 1943. The presence of nutria has offset changes in marsh vegetation and has consequently caused the muskrat population to decline (O'Neil and Linscombe, no date : 23). The nutria is now Louisiana's most valuable fur animal. The Louisiana fur catch was tabulated for the 1974-1975 season (Table 3.5). After processing , its value was greater than $30 million (Louisiana Wildlife and Fisheries Commission, no date). 110 CO CO •H U cd J=i co •H Pm TJ cB cu 14-1 •P. •H cd C cfl ■H co •H O CU u U o CO c o co CO CU ON CTi - cu X, P O co •U T3 CO O C c o •H Pm cO C cO co •H co CO t4 ■h E 3 E o o m co CU r-l JO CO H CD CO CO CD a c !3 CJ u Cm CD •p d E •H X o ■ a a CM CO rH m o) in rH CO » "tf CM o o o o o o o o o o mooooooooooooo CMinmmmoomoooooo to- rn CM cd m in o rH CN rH ^OfflONOnN HOHOHOffll1 wonotooco^ 00 00 rH in CD CM rH CD l> C^ t^ ^F rH CN ^ l> CM CO OOCMOCMOOOCD "tfCOCOOOt-OCO cm o m CO m m CD cd to CD t> CO 00 CO o CM O CM CD CM rH CM t> CD 00 CM to oi ro o m O O CO CM CO CO CO CO -Q £> .O £> HHHri o o o o o o o o o o o o o o o o o m co m O CM CD CM CD o o o o o IN to co o o o o CO o o m CD rH CD CM 00 o rH to- Eh 0) CU CO aS <5 CO CO +-> P «J rH p p p cd cu CO CO O Q, CO p cd cd cd CO H & rt (DUD Eh cd cu (U 0 Eh Eh V— ' » • CD S S S S <5 W +-> +-> c c E Ph p a E s cx cd cd cd cd O O s p M cu cd cd o 3 U L* •H -H O O ra In ^ cd CO p J •H Pn o CO J J X X -^ *H J-l O O 03 0 c o > o < £h ^ O CO <: < CO CO c P P o o o p a X £l cd >> E-« P CO o o Eh £h 55^5 p ri "* ^^^ O O (D o SSS^ZKtfOOWf^fflfflU o 3 3 cd a 55 S « O O O Eh 111 Muskrat and nutria live in coastal marsh areas and have a diet consisting of three-cornered grass, salt meadow cord- grass, cattail bullwhip, alligator weed and other grasses. (Muskrat may also eat small amounts of fish, mussels, insects, and snails). Three-cornered grass (Scirpus oeneyi ) is found in brackish marshes in dense, uniform stands often covering large areas. Marshes of three-cornered grass produce more than 80 percent of the muskrat catch and many of the nutria (McGinnis et al. , 1972: 2.20). Fur-bearing animals are affected in several ways by man's activities in the coastal zone. Habitat loss for fur animals consists of land disturbed by dredging and channeling operations and the resulting spoil banks. An indirect effect on habitat is the increased salinity in the marsh resulting from channeling. Salinity changes affect vegetation important to the animals, such as three-cornered grass (McGinnis, et al. , 1972: 3.17-3.18). Channeling may also create migrational and home range barriers for animals. Crossing spoil banks will, subject many animals to increased predatory vulnerability (McGinnis, et al . , 1972: 3.18). 112 3.7 -- ENDANGERED SPECIES AND PROTECTED HABITATS Several endangered species inhabit the Gulf Coast area and are susceptible to impacts from OCS development. These species include the brown pelican, red wolf, alligator, sea turtles, southern bald eagle, Mississippi sandhill crane, and whooping crane (USDI, 1976B: 111-38 and Visual No. 4). A small breeding colony of brown pelicans has been estab- lished on Queen Bess Island of the Grand Terre Islands (east of Grand Isle) and appear to be making a comeback. There are also two nesting rookeries along the Texas coast. The possible impacts of OCS activity on the brown pelican include the possibility of their feathers becoming contaminated with oil or their ingesting oil- contaminated food (USDI, 1976b: 111-38). The alligator inhabits the entire coastal area of the central Gulf. They are dependent on a well-established marsh habitat for their food supply and for nesting. An acute oil spill or pipeline break resulting in devegetation of a marsh may adversely affect alligators. The loss of alligator habitat is directly related to the time required for reestablishment of marsh vegetation (USDI, 1976b: 111-33) . In three Louisiana parishes (Calcasieu, Vermilion, and Cameron) the status of the alligator has been reduced from "endangered" to "threa- tened" Each year short hunting seasons are allowed in those parishes. In other parishes, they remain on the endangered list (Louisiana Wildlife and Fisheries Commission, 1977). Sea turtles in the Gulf include the Atlantic ridley , hawksbill, and leatherback (USDI, 1976b: 111-38) . The 113 turtles are susceptible to oil coating during a spill since they surface at 1 to 3 minute intervals while actively swimming and at least every 30 to 40 minutes when resting. (See Chapter 3 for the effects of oil spills on marine organisms.) Also, some mortality could result if spills reach nesting beaches. Nesting season lasts from late spring through summer and eggs or hatchlings, as well as adults, could be oiled during this period. Death of eggs could also occur through asphyxiation of embryos if the sand in which they are buried is covered with oil. Also, hatchlings are disoriented by lights. Therefore, young turtles attracted to lighted off- shore structures would be vulnerable to attack by predatory fishes known to concentrate around offshore platforms (Ogren 1977). The red wolf inhabited the Coastal Prairie in southeast Texas and southwest Louisiana. This species may be extinct due to breeding with local canines. There have been no studies done concerning ingestion of crude oil by wolves or consumption of oil coated birds and fish. However, no direct impacts to the wolf from offshore leasing are anticipated (USDI , 1976b: 111-38) . The southern bald eagle also maintains a fragile nesting population in some areas of Terrebonne and Jefferson Parishes in Louisiana , and in Brazoria, Galveston, Refugio, and Calhoun counties in Texas (USDI, 1976b: Visual No. 4). These are not expected to be impacted by future lease sales (USDI, 1976b< 111-38). The Mississippi sandhill crane has a small population on the coast of Jackson County, Mississippi (USDI, 1976b: Visual No. 4), but since there is no OCS activity in that 114 vicinity (and none is expected in the near future) they are not threatened by oil spills from OCS development. Whooping cranes exist in Aransas and Calhoun counties in an area designated as "critical" to their survival by the U.S. Fish and Wildlife Service (USDI, 1976b: Visual No. 4). However, potential OCS impacts on this are are unknown. A number of protected habitats may be affected by OCS activity (Table 3.6). However, no impacts on these areas are expected other than as discussed in this chapter. 3.8 — ROLE OF OIL RIGS IN SPORT FISHING Deep-sea sport fishing in Louisiana increased dramati- cally with the advent of the offshore oil industry. As a result of man's search for oil, numerous platforms were established throughout the Gulf (Chapter 1). These platforms act as artificial reefs, providing protection, food sources, spawning sites, and spatial orientation markers for fishes (USDI, 1976a). Almost immediately after being placed in the water, the legs and templates of the platforms become covered with algae, which can thrive on steel or rubber in water near the surface, forming artificial reefs. Attached algae grow readily on the platform structures in the upper layers of deep Gulf waters; in shallow water, strong currents hinder the establishment of algae. Growth of algae is followed by occurrences of organisms that attach themselves to the platform structure. Barnacles, bryozoa, coral, tunicates, hydrozoans, mollusks and worms are found growing on the platform frame. Many of these 115 Table 3.6 Protected Habitats on National Wildlife Refuges (U.S. Department of the Interior, 1976b) NAME OF AREA COUNTY LOCATION HECTARES Louisiana Delta-Breton Plaquemines- -Offshore 21,573 Lacassine Cameron 12,856 Sabine Cameron 57,809 Shell Keys Offshore 20 Texas Anahuac Chambers 4,023 Brazoria Brazoria 3,857 San Bernard Brazoria 6,038 Aransas Aransas 22,190 Laguna Atacosa Cameron 18,272 Mississippi None Alabama None State Wildlife Management Areas and Preserves Louisiana Pearl River St . Tammany Biloxi Bohemia Pass-A-Loutre Wisner Salvador St . Tammany St . Tammany St . Bernard Plaquemines Plaquemines Lafourche St. Charles 10,812 526 16,019 6,475 26,710 8,750 11,129 116 Table 3.6 Continued. NAME OF AREA COUNTY LOCATION HECTARES Louisiana Cont'd Pointe au Chien Rockefeller Louisiana State Marsh Island Manchac Texas J. D. Murphee Sheldon Las Palomas Longoria Unit Voshell Unit Fredricks Unit Alabama Rob Boykin Mississippi Red Creek Wolf River Lafourche 11,430 Cameron 33,185 Vermilion 6,070 Iberia 31,971 St. John the Baptist 2,129 Jefferson 3,401 Harris 1,013 283 Cameron Cameron Willace Mobile 9,600 Harrison, Jackson, Stone and George Pearl River N/A N/A 117 types of animals not only need shallow, warm and sunlighted waters, but require waters of salinities less than 36.0 ppt (oceanic) . The surface waters of the Gulf are less saline than the deeper waters . Small fishes are attracted to the platforms for two important reasons : to initially feed on the sea life attached and to hide from larger prey. Larger fishes follow the smaller individuals in search of food and therefore tend to concentrate around the platforms. The large concentrations of fishes that gather at the "artificial reef" sites also include many species that were unknown in Gulf waters before the platforms were built. This is not to say these species were not there before, only that the presence of "artificial reefs" concentrates the fishes that were before scattered over a larger area. Many of these fishes are sport fish , including resident fishes (living year-round in the vicinity of platforms) and seasonal mi- grants C coming in with warmer weather) . Resident fishes include the following: groupers, red snapper, trigger fish, Atlantic spadefish, sea basses and pompanos . Seasonal mi- grants include Spanish and king mackerel, tarpon, ladyfish and several species of jack, bluefish and cobia. Marlin, sailfish, wahoo , tunas, sharks, skates and rays are also found (U.S. Department of the Interior, 1972). Conflicts arise between commercial and sport fishermen and many commercial fishermen feel that sport fishermen 118 are taking a large portion of the potential catch in such species as bass and flounder from the commercial fishermen (McHugh, 1967). A 1970 estimate of 60.4 million lbs. for the sport catch in Louisiana is 6 percent of the commercial fish catch of the same period. However, this proportion is compara- tively small. In Massachusetts, it has been estimated that the sport catch is 14 percent of the commercial catch (Mumphrey, et al . , 1975: 108). Many researchers fear that the taking of fishes concentrated around platforms will deplete fish stocks in the Gulf (St. Amant, 1972). St. Amant , however, (Treadway, 1976) has said that there is no evidence showing that fish stocks in the Gulf are in danger or that the fish population is being depleted by either commercial or sports fishermen. Sport fishes are affected by the oil industry in the same way as commercial fishes. See earlier section of this chapter. Many sport and game fishes gather around offshore platforms for feeding and protection. Their mobility allows them to escape the effects of oil spills by moving into deeper water; however, those fishes whose nursery grounds are in contaminated estuaries face greater problems. The habitats of birds and onshore animals are affected by the oil industry as discussed earlier in this chapter. The natural areas of the wetlands are sometimes spoiled by the oil industry for the enjoyment of people in their outdoor activities. Therefore, the oil industry may impact hunting, fishing, camping, water sports, etc. both through pollution (oil spills) and disruption of the natural setting. 119 3.9 -- SUMMARY The major environmental stresses resulting from OCS develop- ment include the following: The impacts of channelization and urbanization on the wetlands. The threat of pollution from oil spills. The aesthetic and obstructive effects of the placement of platforms and pipelines throughout the Gulf of Mexico. Since the Louisiana coastal zone consists largely of wetlands, channelization and dredging are often necessary to provide access to offshore rigs and to construct pipelines. Such action results in interfering with sheet water flow, changing salinities, and increasing erosion. The urbanization induced by OCS development results in loss of wetlands valuable to the ecosystem through draining and filling them for urban uses; and pollution from urban runoff, industry, and pesticides . The second major impact is the threat of oil spills. Oil may be spilled as a result of well blowouts, pipeline leaks, barge or tanker accidents, and the discharge by ships of wastewater containing oil into the Gulf. The numerous platforms and pipelines throughout the Gulf also have an impact. While the platforms have a positive impact on sports fishing, they have a negative aesthetic impact. In addition, pipelines, when they are not buried (or when they are buried but subsequently uncovered by water current action), and platforms interfere with the operations of commercial fishermen 120 3.10 -- CONCLUDING OBSERVATION Concerning the implications of this discussion on the as yet undeveloped OCS areas such as offshore Mississippi- Alabama-Florida, it should be noted that subsequent to an announcement of future leasing, an environmental evaluation program must be initiated by the Bureau of Land Management. The first phase of the evaluation program consists of gather- ing baseline data before any development activity. After the lease sale, and concurrent wiht development activities, a program of environmental monitoring is developed. However, these pro- grams concern only the federal OCS areas (offshore) . Only limited study has been done concerning the impacts of offshore oil and gas production on nearshore waters and onshore wet- lands, but it is this region where the greatest potential for environmental damage exists. It is within these nonfederal areas that maximum natural productivity exists, and where the ecosystem is considerably more vulnerable and fragile than the federal areas further offshore. Since the source of potential damage to these areas is due to development activities on Federal lands and the revenues derived from such activity accrues solely to the Federal government, a good case can be made for at least a moral obligation on the part of the Federal government to evaluate and monitor the environmental condition of these areas (Jones, no date: 2-4). A 1976 amendment to the Coastal Zone Management Act -- Section 308 entitled "Coastal Energy Impact Program" -- provides Federal funds to states for preventing, mitigating, or rectifying the adverse environmental or recrea- tional impacts of coastal energy activities on the states' coastal zones. 121 3.11 — PUBLIC INTEREST GROUPS The groups and organizations concerned with or having an interest in the environmental effects of offshore oil and gas development (direct and induced effects) are the following (Mumphrey, et al. , 1976b): Federal Agencies U.S Army Corps of Engineers New Orleans District Office Colonel Early J. Rush III Robert Buisson, Environmental Section Charles Decker, Permitting Section P.O. Box 60267 New Orleans, Louisiana 70160 504-865-1121 U.S. Coast Guard Captain of the Port, Marine Environmental Protection Department Lieutenant H.N. Young Paul Dicharry, Environmental Impact 4640 Urquhart Street New Orleans, Louisiana 70117 504-527-7171 U.S. Department of Commerce National Marine Fisheries Service (NMFS) Environmental Assessment Division Galveston, Texas Southeast Regional Office: William H. Stevenson Duval Building 9450 Gandry Boulevard N. St Petersburg, Florida 33702 813-826-3141 New Orleans Office: Edward J. Barry, Marketing News Reporter Orville M. Allen, Fisheries Statistics 546 Carondelet Street New Orleans, Louisiana 70130 504-589-6151 Panama City Laboratory 904-234-6541 P.O. Box 4218 Panama City, Florida 32401 U.S. Department of the Interior Bureau of Land Management New Orleans Outer Continental Shelf Office John Rankin Hale Boggs Federal Building 500 Camp Street - Suite 841 New Orleans, Louisiana 70130 504-589-6541 U.S. Geological Survey Gulf of Mexico-OCS Operations 3301 N. Causeway Blvd. - Suite 336 Metairie, Louisiana 70004 504-837-4720 122 Bureau of Outdoor Recreation John Crutcher, Director Washington, D.C. 20240 Fish and Wildlife Service (FWS) Division of Law Enforcement 546 Carondelet Street, Room 100 New Orleans, Louisiana 70130 Regional Director, (FWS) Atlanta, Georgia Ecological Services P.O. Box 4646 Panama City, Florida 32401 Ecological Services (FWS) Lafayette, Louisiana U.S. Environmental Protection Agency Lower Mississippi River Facility NASA/NSTL Station, Mississippi 39529 Thomas F. Beckers P.O. Drawer N Slidell, Louisiana 70458 New Orleans, Louisiana 202-343-5741 504-589-2334/504-589-2692 404-881-4671 904-769-5430 318-234-4833 504-688-2265 504-822-4190 x2265 504-924-1381 U.S. Environmental Protection Agency Environmental Monitoring Support Laboratory Las Vegas Land and Water Quality Field Investigation James Butch, Director 6130 Renoir Drive Baton Rouge, Louisiana 70815 State Agencies Louisiana Conservation Department (Oil and Gas Only) Benjamin F. Walsh, Manager William Clark, District Engineer 325 Loyola Avenue New Orleans, Louisiana 70112 Louisiana Department of Community Development Donna Irvin 300 Louisiana Avenue 504-527-8404 Baton Rouge, Louisiana 70815 Louisiana State Attorney General Environmental Protection Unit Richard Troy 234 Loyola Avenue, Seventh Floor New Orleans, Louisiana 70112 504-389-5664 504-527-8375 Louisiana Department of Parks, Culture and Tourism Sandra Thompson, Secretary P.O. Drawer 1111 Baton Rouge, Louisiana 70821 504-389-5761 123 Bureau of Outdoor Recreation Gilbert C. Lagasse, Liaison Officer W. Edwin Martin, Executive Assistant 625 North Fourth Street Baton Rouge, Louisiana 70815 504-389-5886 Louisiana Stream Control Commission Robert Ae Lafluer P.O. Drawer FC Baton Rouge, Louisiana 70803 504-389-5300 Louisiana Wildlife and Fisheries Commission J. Burton Angelle, Director and Secretary Lyle St. Amant, Assistant Director 400 Royal Street New Orleans, Louisiana 70130 504-527-5126 Offshore Terminal Authority (Superport) Shepard A. Perrin International Trade Mart New Orleans, Louisiana 70130 504-527-5126 Citizen Interest Groups Audubon Society, Orleans Chapter Frank P. Fischer, President 2720 Octavia Street New Orleans, Louisiana 70115 504-482-9701 Barry Kohler, Conservation Chairman 346 Audubon New Orleans, Louisiana 70118 504-861-8465 Cliff Danby 4843 Gabriel Drive New Orleans, Louisiana 70127 504-242-4695 Ecology Center of Louisiana, Inc. Ross Vincent, President John Hammond, Vice-President 111 South Hennessey Street New Orleans, Louisiana 70119 504-581-2287 Mailing Address: P.O. Box 19344 New Orleans, Louisiana 70179 Fund for Animals Sydney Rosenthal 4141 Veterans Memorial Boulevard Metairie, Louisiana 70002 504-887-9222 Louisiana Chapter, American Institute of Planners Anthony J. Mumphrey, Jr., President Urban Studies Institute University of New Orleans New Orleans, Louisiana 70122 504-288-3161 x277 124 Louisiana Nature Center, Incorporated (educational) Gary Schadle, President One Shell Square, Suite 4100 New Orleans, Louisiana 70139 504-581-7017 Louisiana Wildlife Federation Executive Director P.O. Box 16089 Louisiana State University Baton Rouge, Louisiana 70803 504-355-1871 Save Our Wetlands, Inc. Luke Font ana 4821 Prytania Street New Orleans, Louisiana 70115 504-897-0772 Sierra Club of New Orleans Mrs. Joan Phillips, President 922 Octavia Street New Orleans, Louisiana 70115 504-482-9701 Commercial Fishing/Trapping American Shrimp Canners Association Anthony Cuccia, President Cutcher Canning Company, Inc. 128 Sala Avenue Westwego, Louisiana 70094 504-341-3439 Louisiana Oyster Dealers and Growers Association Peter G. Vujnovich 2105 Decatur Street New Orleans, Louisiana 70112 504-949-5443 Louisiana Shrimp Association 1405 Jefferson Highway Jefferson Parish, Louisiana 70123 504-834-2687 Sport Fishing, Hunting, and Outdoor Recreation Ducks Unlimited, New Orleans Area Ed Gueydon, President Suite 1313 Pere Marquette Building New Orleans, Louisiana 70122 504-581-2355 New Orleans Sportsmen's League (Orleans Parish) Captain Lloyd A. Moreau, President 5420 Chamberlain Drive New Orleans, Louisiana 70122 504-282-7187 Permanent Address of Club: P.O. Box 30245 New Orleans, Louisiana 70190 125 Oil and Gas Producers American Petroleum Institute 2101 L Street, N.W. Washington, D.C. 20037 202-457-7000 Louisiana Association of Independent Producers and Royalty Owners Gilbert J. Sevier Pere Marquette Building New Orleans, Louisiana 70112 504-523-5764 Mid-Continent Oil and Gas 111 Thompson Building Tulsa, Oklahoma 74103 918-582-5166 Vernon Dowdy, Louisiana Representative Fidelity Bank Building, Suite 519 Baton Rouge, Louisiana 70801 504-387-3205 Petroleum Club of New Orleans 925 Common Street New Orleans, Louisiana 70112 504-524-3203 Clarence W. Coffey, Sr. , President Chevron Oil 1111 Tulane Avenue New Orleans, Louisiana 70112 504-521-6311 Offshore Operations Committee P.O. Box 50751 New Orleans, Louisiana 70150 C.E. Galay 1111 Tulane Avenue New Orleans, Louisiana 70112 504-521-6584 Commercial and Industrial Interests Chamber of Commerce of Greater New Orleans William G. McCullum, Chairman Christopher Laborde, West Bank Elias McColloster, Environmental Issues (x245) 301 Camp Street New Orleans, Louisiana 70130 504-524-1131 Economic Development Council of the New Orleans Area Tom Purdy, Director Clement A. Cole, Manager, Industrial Development Department Andrew F. Flores, Manager, Commercial Development Department 301 Camp Street New Orleans, Louisiana 70130 504-524-1131 126 REFERENCES Barrett, B.B. and M.C. Gillespie. (1973). Primary Factors Which Influence Commercial Shrimp Production in Coastal Louisiana. Louisiana Wildlife and Fisheries Commission; Oyster Waterbottom, and Seafood Division, Technical Bulletin No. 9. New Orleans, Louisiana. Council on Environmental Quality. (1974). PCS Oil and Gas: An Environ- mental Assessment. A Report to the President. Volume I. U.S. Govern- ment Printing Office, Washington, D.C. Dames and Moore, Inc. (1975). Environmental Analysis: Louisiana Offshore Oil Port. Louisiana Offshore Oil Port, Inc. (LOOP), New Orleans, Louisiana. Galtsoff, Paul S. (1964). The American Oyster, Crassostrea virginica Gmelin. Fishery Bulletin of the Fish and Wildlife Service. Volume 64, 7-457. U.S. Department of the Interior, Fish and Wildlife Service, Bureau of Commercial Fisheries. U.S. Government Printing Office, Washington, D.C. Jones, J.I. (no date). The PCS Forgotten Land: Territorial Sea, Nearshore, and Estuary. Florida Division of State Planning, Tallahassee, Florida. Laplace, J. (1976). Will the Drip, Drip, Drip Get Us? The Times-Picayune (New Orleans), June 16. Louisiana Advisory Commission on Coastal and Marine Resources. (1973). Louisiana Wetlands Prospectus. . Louisiana State Planning Office, Baton Rouge, Louisiana. Louisiana Wildlife and Fisheries Commission, (no date). Fur Division. Comparative Takes of Fur Animals in Louisiana, 1940-1975. Louisiana Wildlife and Fisheries Commission, New Orleans, Louisiana. Louisiana Wildlife and Fisheries Commission. (1977). telephone interview, March 23. Mackin, G. (1962). Oyster Disease Caused by Detmocystidium marinum and Other Microorganisms in Louisiana. Publications of the Institute of Marine Sciences. University of Texas, Austin. Volume VII, 132-229. Mackin, G. and S. H. Hopkins. (1962). Studies on Oyster Mortality in Relation to Natural Enviornments and to Oil Fields in Louisiana. Publications of the Institute of Marine Sciences. University of Texas, Austin. Volume VII, 1-131. Mackin, G. and A.K. Sparks. (1962). A Study of the Effect on Oysters of Crude Oil Loss from a Wild Well. Publications of the Institute of Marine Sciences. University of Texas, Austin. 127 McGinnis, J.T., et al. (1972). Final Report on Environmental Aspects of Gas Pipeline Operations in the Louisiana Coastal Marshes to Offshore Pipeline Committee, December, 1972. Battelle Columbus Laboratories, Columbus, Ohio. McHugh, J.L. (1967). Estuarine Nekton. In Conference on Estuaries. American Association for the Advancement of Science, Washington, D.C. Publication No. 83. Moore, S.F. and R.L. Dwyer. (1974). Effects of Oil on Marine Organisms; A Critical Assessment of Published Data. Water Research. Volume 8, 819-827, October. Pergamon Press, Ltd. Oxford, England. Mumphrey, A.J., et al. (1975). Louisiana Metropolitan Wetlands: A Planning Perspective. A Report to the Louisiana State Planning Office. Urban Studies Institute, University of New Orleans, New Orleans, Louisiana. . (1976a) . The Impacts of Outer Continental Shelf Development on Lafourche Parish. A Report to the Louisiana State Planning Office. Urban Studies Institute, University of New Orleans, New Orleans, Louisiana. (1976b) . Coastal Zone Management in the Metropolitan New Orleans Region. A Report to the Louisiana State Planning Office. Urban Studies Institute, University of New Orleans, New Orleans, Louisiana. Ogren, L.H. (1977). fishery biologist, National Marine Fisheries Service, in letter to James Barkuloo on January 25. O'Neil, T. and G. Linscombe. (no date). The Fur Animals, the Alligator, and the Fur Industry in Louisiana. Louisiana Wild Life and Fisheries Commission, New Orleans, Louisiana. Wildlife Education Bulletin No. 106. Patrick, R. (1967). Diatom Communities in Estuaries. In Conference on Estuaries. Publication No. 83, American Association for the Advancement of Science, Washington, D.C. Pollard, J.F. (1973). Experiments to Re-establish Historical Oyster Seed Grounds and to Control the Southern Oyster Drill. Louisiana Wild Life and Fisheries Commission; Oyster, Waterbottom and Seafood Division, New Orleans, Louisiana. Technical Bulletin No. 6. St. Amant, L.S. (1972). The Petroleum Industry as It Affects Marine and Estuarine Ecology. Journal of Petroleum Technology. (April) 385-392. Treadway, Jane. (1976). Fish Stocks Okay, St. Amant Says. The Times- Picayune (New Orleans) June 16, Sectionl, p. 13. U.S. Department of Commerce, National Marine Fisheries Service. (1970-1974), Fishery Statistics of the United States, 1968-1972. U.S. Gove rnmen t Printing Office, Washington, D.C. , National Marine Fisheries Service. (1975). Louisiana Landings, Annual Summary, 1974. U.S. Government Printing Office, Washington, D.C. 128 U.S. Department of the Interior, U.S. Fish and Wild Life Service, Bureau of Commercial Fisheries. (1955-1969). Fishery Statistics of the United States. U.S. Government Printing Office, Washington, D.C. , Bureau of Land Management. (1972). Draft Environmental Statement: Proposed 1972 PCS Oil and Gas General Lease Sale Offshore Louisiana. U.S. Government Printing Office, Washington, D.C. Bureau of Land Management. (1976a). Final Environmental Impact Statement: Proposed 1976 Outer Continental Shelf Oil and Gas Lease Sale, Gulf of Mexico, PCS Sale No. 44. U.S. Government Printing Office, Washington, D.C. Bureau of Land Management. (1976b). Draft Environmental Impact Statement: Proposed 1977 Outer Continental Shelf Oil and Gas Lease Sale, Gulf of Mexico, PCS Sale No. 47. U.S. Government Printing Office, Washington, D.C. U.S. Department of Transportation, U.S. Coast Guard. (1976). LOOP Deep- water Port License Application, Volume I. Deepwater Ports Project, Office of Marine Environment and Systems, Washington, D.C. Viosca, P., Jr. (1957). The Louisiana Shrimp Story. Louisiana Wildlife and Fisheries Commission. Reprinted from Louisiana Conservationist, Volume IX, No. 7, July- August. Baton Rouge, Louisiana. White, C.J. (1975). Effects of 197 3 River Flood Waters on Brown Shrimp in Louisiana Estuaries. Louisiana Wild Life and Fisheries Commission, Oyster, Waterbottom and Seafood Division, New Orleans, Louisiana. Technical Bulletin No. 16. Willingham, C.A., et al. (1974). Interim Report — 1973 — on a Study of Selected Coastal Zone Ecosystems in the Gulf of Mexico in Relation to Gas Pipelining Activities to- Offshore Pipeline Committee, January, 1974. Battelle Columbus Laboratories, Columbus, Ohio. 129 CHAPTER 4 SOCIO ECONOMIC IMPACTS 4.1 — OCS DEVELOPMENT EFFECTS Past and Present The offshore oil and gas industry has had a substantial impact on the economy of the coastal areas of Louisiana and Texas. It has also had considerable impact on the financial condition of the state and local governments. Factors concerning the impact of the offshore industry on the economy of Louisiana are outlined in Table 4.1. A break- down of the types of direct employment associated with the offshore industry and the number of individuals in each category appear in Table 4.2 Total direct employment (38,000) in OCS oil and gas industry was about 5 percent of the 1971 total employment in Louisiana (800,000). Total direct employment and indirect employment (other industry supporting the direct employment) was almost 15 percent of the total employment in 1971, The population growth of several communities in the Louisiana coastal zone that have been affected by OCS development has in- creased substantially (Table 4.3). This additional population requires government expenditures for services such as airports, roads, schools, police protection, medical facilities, recrea- tional facilities, utilities, etc. It has been estimated that, for the year 1972, the total number of employees (direct and indirect) associated with OCS development and their 130 Table 4.1 Impact of the Offshore Oil and Gas Industry on the State of Louisiana, 1948-1971 (Source: American Petroleum Institute, 1973) People directly and indirectly employed as a result of the existence of the offshore oil industry in 1971 Direct Number 38,000 Annual Income $381,000,000 Indirect Number 76,000 Annual Income $418,000,000 Total Number 114,000 Annual Income $799,000,000 2. Capital expended to find, develop, produce, transport and process off- shore oil and gas Period 1948-1971 $9,390,000,000 1971 807,000,000 1971 - Daily Rate 2,200,000 3. Capital expended which stayed within the State of Louisiana to find, develop, produce, transport, and process offshore oil and gas Period 1948-1971 $5,500,000,000 1971 482,000,000 1971 - Daily Rate 1,300,000 4. Operating and maintenance expenses for producing, transporting, and processing offshore oil and gas Period 1948-1971 $2,600,000,000 1971 376,000,000 1971 - Daily Rate 1,000,000 5. Operating and maintenance expenses which stayed within the State of Louisiana for producing, transporting, and processing offshore oil and gas Period 1948-1971 $2,080,000,000 1971 301,000,000 1971 - Daily Rate 800,000 131 Table 4.1 Continued. 6. Cumulative Industry Impact on the Economy of Louisiana (3 + 5) Period 1948-1971 $7,580,000,000 1971 783,000,000 1971 - Daily Rate 2,100,000 7. Louisiana payroll from indirect employment as a result of offshore oil industry (See 1 above) Period 1948-1971 $4,020,000,000 1971 418,000,000 1971 - Daily Rate 1,200,000 8. Total direct and indirect impact of offshore oil industry on State of Louisiana (6 + 7) Period 1948-1971 $11,600,000,000 1971 1,201,000,000 1971 - Daily Rate 3,300,000 132 Table 4.2 Service Company Personnel Employed in Offshore Oil and Gas Industry in Louisiana, 1971 (Source: American Petroleum Institute, 1973) Production 8000 Fabrication Yards for Offshore Platforms 6000 Derrick Barge 1400 Deep Sea Divers 500 Boat Transportation 2800 Helicopter and Float Planes 950 Oil Barges 170 Drilling Rigs 4000 Workover Rigs 1320 Production Equipment Fabricators 2000 Caterers 1500 Drilling Mud 870 Directional 120 Seismic 600 Contract Maintenance 1000 Government Employees 350 Pipeline Companies 300 Pipeline Contractors 300 Supply Company 450 Wellhead Suppliers 400 Tool Companies 900 Service Companies 1000 Miscellaneous 3070 TOTAL 38000 133 Table 4.3 Population in OCS-Impacted Louisiana Communities, Various Years (Source: U.S. Department of Commerce, Bureau of the Census, 1967, 1972) CITY PARISH 1950 1960 1970 Larose Lafourche 1,286 2,796 4,267 Thibodaux Lafourche 7,730 13,403 15,028 Houma Terrebonne 11,505 22,561 30,922 Morgan City St. Mary 9,759 13,540 16,586 Berwick St. Mary 2,619 3,880 4,168 Patterson St. Mary 1,938 2,923 4,409 Franklin St. Mary 6,144 8,673 9,325 Jeannerette Iberia 4,692 5,568 6,322 New Iberia Iberia 16,647 29,062 30,147 Lafayettr Lafayette 33,541 40,400 68,908 Rayne Acadia 6,485 8,634 9,510 Crowley Acadia 12,784 15,617 16,104 Lake Charles Calcasieu 41,272 63,392 77,998 Sulphur Calcasieu 5,996 11,429 14,959 134 dependents was 390,990. The cost of governmental services for this number of people was estimated to be $265 million. Approximately 40% of this amount is borne by individual tax- payers and 60% by corporations (Gulf South Research Institute (GSRI), no date: 46). OCS operations beyond the 3-mile limit are outside the state's jurisdiction so no tax revenues are available from these activities to Louisiana. However, the state and local governments must still provide onshore services to the OCS corporations, employees, and employees' dependents. Since the tax revenue to support these services is not avail- able, the costs must be borne by others. Therefore, most of the funds to support the $265 million in government services came from sources not directly related to OCS activity The taxes collected from the offshore industry (opera- tions within the 3-mile area of state jurisdiction) and the taxes foregone ( operations beyond the 3-mile limit) for the years 1965-1972 are described in Table 4.4. In 1972, at least $144.4 million in taxes was foregone. The Louisiana Department of Revenue estimates $183.5 million foregone when they include income, corporate franchise, sales and use, and occupational license taxes foregone in addition to the severance, ad valorem, and miscellaneous taxes included in the table (GSRI, no date: 42-43). Had this amount been available and added to the approximately $33 million col- lected (totaling $216 million), the $265 million By comparison, Texas' seaward jurisdiction extends 10.5 nautical miles providing more potential taxes. 135 qj X en !-H co 4-1 3 a) c •H 4-1 3 O C_> M CU 4-1 3 ~~V O OJ 4J e n) o X) r-l 14-1 0 c (' c #N o 1) oO 4-J a) 3 h 4-1 0 •H lX( ■u cn T3 3 3 H n) X 0) U M M O CO X 0) en CO >4-l a) M-l rt o X e u o 3 u O IH Cfl c 4-| n rH •H 3 4-1 CD O CU • • r-t a) r-l o o H u 3 0 en w en * — ' X CO s^* H CN r~ ■o on en u -r-l OJ s* r-l r-l o u in OJ X <0 H s CU u o rH cfl > •a CO 01 X cfl H OJ a a cfl u > 0) LO o o o ' 3 (3 CD O O '"3 O O O o o CD o CD o O co co r-. oo on o O CO CN r-~ cD r- co oo on cn co co LO * 00 00 0O o co rH cO 00 ~* 00 00 00 0~i O0 LO LO ON CO ~3- r~ o rH CN cO CD cO CD cO r~~ r-» r~ cn o\ CJ\ CT, ON ON a\ on cn •U r-l o D. CU r-l U CU XI 4-1 3 •H X CO K-l o cn cu CJ r-l 3 o cn QJ U O X! 01 U-l M-l O ■a 3 CO XI 3 CO ■-I 3 •H CO u CO D. CU cn O 3 O cn !-i QJ CO a x CO cn X CO CO o z 136 in governmental services would have been just about funded 2 directly through OCS activity. Taxes could have then been reduced or this amount could have been available to provide more services. The situation in Texas is similar, but not as severe due to the relatively lower level of OCS operations in that state. In 1974, an attempt was made by the State of Texas to estimate the future impact of OCS production resulting from Federal lease sales made and scheduled through 1975. The esti- mated annual impact of OCS production in the Federal area of jurisdiction on employment and government reve- nues was tabulated (Table 4.5). The 1970 Census of Population indicates that in 1970 there were 2.58 people for every person employed in Texas. There- fore, the total population associated with the 69,034 employees related to offshore production was estimated to be 177,961. In fiscal year 1971-72, the cost of providing state and local government services in Texas was $622 per capita. Thus, the tt)ta'l expenditures by state and local governments to provide ■necessary services to 177,961 people is approximately $111 million per year. Since the annual revenues of state and location governments is expected to be only $48.9 million, offshore production in the Federal areas of jurisdiction is projected to result in a net cost to state and local govern- ments of $62 million per year (Grubb and McCray, 1974: 7-0). 2 This does not include personal income taxes generated by OCS employment. 137 Table 4.5 Estimated Annual Impact on Employment and Government Revenues in Texas Resulting from the Estimated Annual Production from the Current and Proposed Federal Leases Offshore Texas, through 1975, 1970 Constant Dollars (Source: Grubb and McCray, 1974) FACTOR DIRECT INDIRECT TOTAL Employment (number) 10,093 58,941 69,034 Government Revenues ( mil . dol. ) Federal 305.3 138.5 443.8 Taxes 99.5 138.5 238.0 Royalties 205.8 0 205.8 State and Local 0 48.9 48.9 138 Future OCS development has had a significant impact on the economy of the Gulf Coast area (particularly Louisiana) since the first offshore well was completed in 1947. However, the states collect no direct revenue from activity in the Federal areas of jurisdiction, as previously discussed. In light of this fact, the general attitude of public officials in Louisiana is that they will welcome future OCS activity because the economy is dependent on it and there is nothing to replace it. However, since the Federal government derives all the tax revenues from OCS activity (beyond the state area of juris- diction) , the state and local governments must provide many of the services required by the OCS industry and its workers. Government officials would like Federal assistance (in the form of cash grants, not loans) in providing services to deal with OCS impacts (past and present, as well as future.) This attitude is expressed in comments of state officials about the proposed regulations for financial assistance to coastal states of the national Coastal Energy Impact Program (U.S. Department of Commerce, 1976: 46724-46740). As they are presently written, the proposed regulations would force Louisiana and some other states to apply for Federal loans (to be repaid with interest) instead of receiving 139 outright cash grants for the onshore effects of OCS drilling. Cash grants would be available to newcomer states with OCS activity and for the impact on coastal recreational areas affected by stepped up drilling. Louisiana Governor Edwin Edwards commented that "several provisions of the regulations are not in accord with Congressional intent" to reimburse the coastal areas for OCS development. He went on to say, "the proposed regulations are too biased toward frontier areas, with little consideration for states with long histories of OCS activity". Louisiana Attorney General William J. Guste, Jr. , speaking as a representative of the National Association of Attorneys General (chairman of its offshore development committee) also urged that the funding mechanism of the proposed regulations be changed, allowing all coastal states easier access to direct federal grants. U. S. Representative David Treen (R-La. ) also believes that the regulations are "not in accord with the intent of Congress" and he intends to introduce an amendment to the present Coastal Zone Management Act that would make it easier for Louisiana to obtain cash grants, instead of federal loans, to pay for roads, schools, and other facilities needed to service the firms and individuals that work on the OCS (Anderson, 1976). 140 Since OCS production in the Gulf of Mexico has passed its peak, the major development effects in the future will come as a result of the construction of the LOOP and Seadock superport projects. As pointed out earlier (Chapter 2), Seadock will have little effect on refining and petrochemicals in Texas because of projected excess capacity in these industries (Perrin, 1976) . Existing refining and petrochemical capacity in Southeast and Southwest Louisiana and pro- jected capacity through 2010 due to the Louisiana and Texas superports are analyzed in Table 4.6. Refining and petrochemical capacity is expected to increase signi- ficantly to more than double its present capacity. Employ- ment is expected to grow as a result of the operation and construction of the Louisiana Superport facilities and the refineries and petrochemical plants affected by both the Louisiana and Texas Superports (Table 4.7). As can be seen, the most significant impact is expected to occur in the River Parish area (including St. James, St. John, St. Charles, Assumption, and Tangipahoa parishes). One reason for the considerable impact here is that 3 of the 4 new refineries projected to result from superport construction are expected to locate here (H.J. Kaiser Company, 1976: 93). It should also be noted that although there are no refineries or petro- chemical plants in the Lafourche area and none are expected to be built there. The onshore facilities of the Louisiana 141 Table 4.6 Existing and Projected Refining and Petrochemical Capacity in Southeast and Southwest Louisiana (Source: H.J. Kaiser Company, 1976) AREA 1975' TOTAL CAPACITY 1980 1990 2010 Loui s i ana Superport Baton Rouge Area Refining (MC/D) 2 Petrochemical (BP/Y) River Parish Area Refining (MB/D) Petrochemical (BP/Y) 481 .0 30.3 496.0 30.7 571 .0 35-2 846.0 58.9 420.5 837-5 1,326.5 1,451.5 8.6 14.8 32.7 38.6 New Orleans Area Refining (MB/D) Petrochemical (BP/Y) 404.5 499-5 574.5 674.5 4.2 5-0 6.8 9-6 Subtotal, Louisiana Superport Refining (MB/D) 1,306.0 1,833-0 2,472.0 2,972.0 Petrochemical (BP/Y) 43-1 50-5 74-7 107-0 Texas Superport Cal casieu Area Refining (MB/D) Petrochemical (BP/Y) 351.0 878.5 455-5 532.5 11 .2 11.6 14.0 18.2 TOTAL Refining (MB/D) Petrochemical (BP/Y) 1,657-0 2,211.5 2,927-5 3,504.5 54.3 62.1 88.7 125.2 Based on a survey of existing plants. BP/Y = billion pounds per year. Note: This table does not include refining and petrochemical capacity growth not directly related to Superport development. 142 Table 4.7 Projected Total Employment Growth in Southeast and Southwest Louisiana Attributable to Superport Projects (Source: H. J. Kaiser Company, 1976) AREA TOTAI EMPLOYMENT GROWTH 1980 1950 2010 Lou is ian a Superport Baton Rouge Area Direct Employment Gain: Total Employment Gain River Parish Area Direct Employment Gain- Total Employment Gain New Orleans Area Direct Employment Gain- Total Employment Gain Lafourche Area Direct Emp'oyment Gain-'-' Total Employment Gain 314 604 1,715 3,435 7,920 16,5/0 6,519 12,609 11,151 22,311 11,897 24,887 1,253 2,423 1,599 3,199 2,257 4,717 315 615 815 1,635 315 665 Subtotal, Louisiana Superport Direct Employment Gain Total Employment Gain 8,401 16,251 15,280 30,580 22,389 46,839 Texas Supe r po r t Calcasieu Area Direct Employment Gain: Total Employment Gain TOTAL Direct Employment Gain Total Employment Gain 423 788 8,824 17,039 1,339 2,574 16,619 33,154 2,406 4,838 24,795 51,6/7 * Employment in operation and construction of refineries and petrochemical plants. ** Employment in operation and construction of Louisiana Superport facilities. 143 Superport will be located in Lafourche, so employment will increase there as a result of the construction and operation of these facilities, peaking in 1990. 4.2 — PUBLIC INTEREST AND ATTITUDE Of course, the area of greatest OCS development impact on the Gulf Coast is the coastal zone of Louisiana. Surveys have shown that people generally are aware that the coastal zone is important to Louisiana. As might be expected, aware- ness of environmental problems increases with higher levels of education and income, and among those living in urban areas (Patterson and Pinhey, 1976). A recent survey by Lindsey et al. 1976) shows that well over half of Louisiana residents (58.6%) feel that Louisiana benefits more from its coastal zone than other states benefit from their coastal areas. In addition , 83 percent feel that swamps and marshland have value for various rea- sons (Table 4.8). As shown in the table , ecological productivity is the most often cited reason with fishing and oil and gas activities second and third, respectively. When asked about the most important economic activity in the coastal zone, both present and future, Louisianians felt that mineral extraction and commercial fishing were identified as first and second in importance with water transportation a distant third. It is interesting to note that among residents of the coastal zone, a greater percentage perceive that mineral extraction will be the most important economic activity in the future than believe that it is the most important activity now, and that 144 Table 4.8 Interviewees' Opinions Regarding the Value of Marshland and Swamps, by Residence (Source: Lindsey et al. , 1976) Opinion As to Value Of Swamps & Marshland (1st Response) Residents of Coastal Zone (N=662) Residents Outside of Coastal Zone (N=264) Total State Sample (N=926) Yes, because of oil and gas Yes, because of ecological pro- ductivity Yes, because of fishing Yes, because of recreation Yes, because of residential use Yes, because of agriculture Yes, because of other reasons Have no value No opinion (%) 17.5 24.4 18.5 4.6 4.0 4.3 8.0 9.5 9.2 (%) 15.7 32.8 23.0 7.2 1.3 2.4 4.6 4.9 8.2 (%) 17.0 26.8 19.8 5.4 3.2 3.8 7.0 8.2 8.9 145 fewer believe that fishing will be the most important in the future than believe that it is the most important now. Among residents outside the coastal zone, these perceptions are reversed. (Lindsey et al. , 1976.) While Louisiana residents seem to understand the importance of the coastal zone and the types of activities that occur there, Lindsey et al. (1976) found that over 60 percent had no knowledge of what is meant by "Coastal Zone Management." In addition, 82.8 percent have no knowledge of specific develop- ment projects in the coastal zone. Oil industry development was the development project most people knew about and only 5.9 percent identified it. (Lindsey et al . , 1976.) Concerning the future of the coastal zone, Louisiana residents were asked their preferences for development of marshes and coastal water by Lindsey et al . (1976) . Nearly half the respondents felt that marshes and waters should be left in their natural condition or restricted to recreational use such as sport fishing and hunting. Significantly, over 15 percent felt that marshes and waters should be drained for farming and residential use. When questioned about responsibility for decisions about the coastal zone, Louisianians indicate a strong preference for state, local, or individual control instead of federal control. Almost 50 percent of the residents' feel that the coastal zone will improve or not change in the future. Although more people in the coastal zone (34.8%) feel that it will decline than those outside of the coastal zone (22.9%). 146 This may be accounted for by the fact that residents of the coastal zone have had closer contact with deterioration of the V marshes and other areas in the past and they expect these trends to continue. 147 REFERENCES American Petroleum Institute. (1973). Study: The Economic Impact of the Louisiana Offshore Oil Industry on the State of Louisiana. American Petroleum Institute, Washington, D.C. Anderson, E. (1976). Edwards Hits U.S. Coastal Plan 'Bias'. The T ime s - P i c ay uni~ New Orleans, November 18. Section 1 . p. 4. Grubb, H.W., andW.C. McCray. (1974). Benefits and Costs to State and Local Governments in Texas Resulting From Offshore Petroleum Leases on Federal Lands"! Management Science Division, Office of Information Services, Office of the Governor, Austin, Texas. Gulf South Research Institute, (no date). Offshore Revenue Sharing: An Analysis of Offshore Operations on Coastal States . Prepared for the Governor's Offshore Revenue Sharing Committee. Gulf South Research Institute, Baton Rouge, Louisiana. H.J. Kaiser Company. (1976). The Effect of Superport Develop- ment on Louisiana. Prepared for State of Louisiana Off- shore Terminal Authority. H.J. Kaiser Company, New Orleans, Louisiana. Lindsey, J.L., K.W. Patterson, and A.L. Bertrand. (1976). Citizen Perception of Coastal Area Planning and Development. Center for Wetland Resources, Louisiana State University, Baton Rouge, Louisiana. Patterson, K.W. , and T.K. Pinhey. (1976). Environmental Concern as a Factor in Coastal Zone Development: A Study of Louisi~ ana Citizens. Coastal Zone Management. Journal Volume 2, Number 3 . Perrin, S.I. (1976). Executive Director, Louisiana Offshore Terminal Authority. New Orleans, Louisiana. telephone interview, October 1, 1976. U.S. Department of Commerce, Bureau of the Census. (1967,1972) City and County Washington, D.C. City and County Data Book. U.S. Government Printing Office, hi U.S. Department of Commerce, National Oceanic and Atmospheric Administration. (1976) . Coastal Energy Impact Program. Federal Register. October 22. 148 CHAPTER 5 REGIONAL INFORMATION AND ANALYSIS 5.1 -- DESCRIPTION OF CURRENT OCS STUDIES1 Alabama In Alabama, the major area of potential impact from OCS development is Mobile Bay and its tributary rivers. In 1976, the U.S. Army Corps of Engineers published the Environmental Assessment of Mobile Bay and Adjacent Offshore Waters . Information concerning existing land use and economic, social, public service, and fiscal/institutional conditions of Alabama's three coastal counties is available from the South Alabama Regional Planning Commission. Also, the com- mission is currently (1977) conducting a HUD-funded study of the potential impact of the proposed Ameriport (offshore superport ) . The study involves reviewing the counties' capabilities and facilities, developing alternative plans, and preparing a development plan, with a program for public investments. Much of this information will be applicable to the potential OCS development. In addition, in 1975 the Geological Survey of Alabama published a document entitled A Bibliography of Coastal Alabama with Selected Annotations. The bibliography contains Unless otherwise noted, the information in this section was received from the U.S. Fish and Wildlife Service, 1977. 149 over 900 references. A second bibliography, concerning the economic value of coastal marshes is in the final stages of preparation. Florida Florida's Department of Natural Resources has been awarded funds by the National Oceanic and Atmospheric Administration (NOAA) for multi-year study of coastal zone planning and onshore impacts of OCS development (U.S. Department of Commerce, 1975c). These funds are being administered by the Department's Bureau of Coastal Zone Planning, which is currently (1977) preparing: a) an inventory and analysis of OCS information relevant to Florida, b) mapping of biological elements of sites likely to be OCS onshore sites, c) socio economic analysis of selected areas, and d) inventory and analysis of laws applicable to controlling OCS development. Under contract from the State, regional planning councils are preparing all or most of the environment quality analysis, identification of areas of particular concern, and inventory of local and regional ordinances and regulations affecting the coastal zone. With information gathered by the Bureau of Coastal Zone Planning, the Department of Natural Resources has prepared a "Coastal Zone Atlas of Florida;" the Division of State Plan- ning has compiled a "Soil Atlas;" and the Department of Transportation has prepared a "Wetlands Survey." 150 In addition, the State University System of Florida Institute of Oceanography has been involved in a multi-year program concerning a baseline environmental survey in the federal areas of jurisdiction of the MAFLA lease tracts (Defenbaugh, 1976). Also, the University of South Florida and Florida State University jointly prepared a report for the State Energy Office (published in December 1975) entitled, Florida Coastal Policy Study: The Impact of Offshore Oil Development . Louisiana Louisiana State University has been granted funds over several years by NOAA to examine the ecology of the state's coastal marshes and conduct other marine research, education and advisory programs. These programs include studying the stresses placed on the wetlands by urban development, petroleum operations, and recreational activities and are ongoing in 1977 (U.S. Department of Commerce, 1975a). The Louisiana State Planning Office has been awarded NOAA funds to study the onshore impacts of offshore oil and gas production and to develop a state coastal zone management (CZM) program including local CZM plans. These studies are continuing (1977) over several years. (U.S. Department of Commerce, 1976b and Hanna, 1976. ) Included in these studies, is a case study of OCS impacted Morgan City being conducted by the University of 151 Southwestern Louisiana. The study will include: A brief chronology of historic development of Morgan City prior to the onset of OCS activity in 1947. Physical, social, cultural, economic, and public service needs and changes since 1947. Analysis of economic, social, and geographic factors in Morgan City's development. Potential future impacts. The Urban Studies Institute at the University of New Orleans is under contract to the State Planning Office for a study integrating planning for OCS impacts with coastal zone management. This study will include the economic and population impact of OCS development, analysis of governmental services and facilities required by OCS development, guidelines for impact mitigation, and coordination of assessment and planning with local governments. Mississippi Mississippi has studied and continues (1977) to study its legal authorities to regulate OCS pipelines and onshore facilities. A major survey of federal laws and laws and regulations of other states currently in force is entitled Pipeline Utility Corridor Standards, Volume II - Legislation Governing Pipeline Standards, 1974. Information on the potential impacts of OCS facilities is contained in a study by James R. Williamson and F. John Wade for the Mississippi Research and Development Center entitled, 152 The Economic Impact on Mississippi of Production on the Outer Continental Shelf and of a Proposed Terminal for Supertankers. The study was published in June, 1976. Mississippi is also undertaking other OCS impact studies broadly covering current conditions, OCS activities, genera- lized site analysis, evaluation of OCS impacts, and formulation of state strategy. Also, land use and socio economic studies of coastal counties are currently underway by the respective regional planning districts. Texas The Texas General Land Office has been awarded grants over several years from NOAA to study the onshore impacts of off- shore oil and gas production and to aid the state in developing a coastal zone management program which is now (1977) under accomplishment (U.S. Department of Commerce, 1975b). The Texas Coastal Management Program has been a primary source of information for the Texas OCS planning program. Extensive inventories have been made of coastal resources and environmental conditions. The economic and fiscal impacts of offshore development have been addressed by three recent studies concerning economic impact on the state, fiscal impact on the state, and economic impact on the Lower Rio Grande economy. The consulting firm which runs the Coastal Management Program is currently developing a methodology to assess 153 onshore and nearshore impacts of OCS oil and gas development and using that methodology to calculate such impact on Texas' nearshore and onshore areas under three OCS development scenarios. The progress reports under that study to date include: "Natural Resource, Socio-economic, and Demographic Inventory of the Texas Coastal Area" (May, 1976), "An Impact Bibliography" (May, 1976), "An Inventory of Existing OCS Related Oil and Gas Facilities" (May, 1976), "A Survey of Selected Modeling Techniques" (May, 1976), "An Impact Methodology" (June, 1976). The following annotated list references some of the output of these studies. 154 ANNOTATED LIST OF MAJOR STUDIES AVAILABLE Angelovic, J.W. et al . (1976). Environmental Studies, South Texas Outer Continental Shelf, 1975: Plankton and Fisheries Investigation. National Marine Fisheries Service. U.S. Government Printing Office, Washington, D.C. Discusses existing habitat of plankton and fisheries on outer continental shelf from the Rio Grande to Matagorda Bay. Berryhill, H. et al. (1976). Environmental Studies, South Texas Outer Continental Shelf 1975: Geology. U.S. Geological Survey, Corpus Christi, Texas. Discusses geological features of the outer continental shelf from the Rio Grande to Matagorda Bay. Burk and Associates, Inc. (1975). Resource Inventory of Coastal Louisiana. Burk and Associates, Inc., New Orleans, Louisiana. Volume III presents a master inventory of all proposed, under construction and completed Corps of Engineers proj- ects. The inventory also includes a listing of projects being undertaken by the Department of Highways, Soil Conservation Service, and public and quasi-public Sources. Conner, W.H. et al. (1976). Oil and Gas Use Characterization, Impacts, Guidelines, A Report to the Louisiana Office of State Planning. Center for Wetlands Resources, Louisiana State University, Baton Rouge, Louisiana. Presents a nontechnical survey of the phases of operation of the mineral extraction industry from explora- tion to abandonment , particularly as it affects the Bara- taria Basin of Louisiana. Happ, Georgeann et al. (1976). Impacts of Outer Continental Shelf Activities: Lafourche Parish, Louisiana, A Report to the Louisiana Office of State Planning. Center for Wetlands Resources, Louisiana State University, Baton Rouge, Louisiana. Discusses the environmental impacts of mineral extrac- tion, navigation, and transportation, as they relate to outer continental shelf development, on Lafourche Parish. 155 H.J. Kaiser Company. (1976). The Effect of Superport Develop- ment on Louisiana. Prepared for State of Louisiana Offshore Terminal Authority. H.J. Kaiser Company, New Orleans, Louisiana. Discusses the projected impact of the proposed Louisiana and Texas Superports on the refining and petro- chemical industries of Louisiana. Mumphrey, A.J. et al. (1976). The Impacts of Outer Continental Shelf Development on Lafourche Parish. A Report to the Louisiana Office of State Planning. Urban Studies Insti- tute, University of New Orleans, New Orleans, Louisiana. Discusses environmental and socioeconomic impacts on Lafourche Parish, including data on job types (and their educational and vocational requirements) , the fishing and fur industries, and the infrastructure of Lafourche Parish as they relate to outer continental shelf mineral extraction. Parker, P. et al . (1976). Environmental Studies, South Texas Outer Continental Shelf 1975: Biology and Chemistry. Marine Science Institute, University of Texas, Port Aransas, Texas . Discusses the biological and chemical aspects of the outer continental shelf from the Rio Grande to Matagorda Bay. Pequegnat , W.E. (1976). Ecological Aspects of the Upper Conti- nental Slope of the Gulf of Mexico. Tereco Corporation, College Station, Texas. As the title makes clear, this study discusses eco- logical aspects of the upper continental slope in the Gulf of Mexico. State University System of Florida Institute of Oceanography. (197 6) . Baseline Environmental Survey of MAFLA Lease Area, Contract Year 1974, Final Report. State University System of Florida Institute of Oceanography, St. Petersburg, Florida. Discusses the existing environmental aspects in the federal area of jurisdiction of the MAFLA oil and gas lease tracts. 156 U.S. Army Corps of Engineers. (1975). Water Resources Develop- ment in Southern Louisiana. U.S. Amy Corps of Engineers, Vicksburg, Mississippi. Presents an overview of current and proposed levee systems, describing location, costs and purposes. 157 REFERENCES Defenbaugh, R. (1976). Bureau of Land Management OCS Office. New Orleans, Louisiana, telephone interview, October 12. Hanna, S. (1976). Coastal Impact Study Grant Made. States- Item, New Orleans, September 8, p. 3. U.S. Department of Commerce. (1975a). news release, October 14, . (1975b). news release. December 7. . (1975c). news release. December 17. . (1976a). news release. February 22. . (1976b). news release. March 13. *U.S. GOVERNMENT PRINTING OFFICE:! 978 -7^5-<+21/ ^8 5 REGION NO. 4 158