- One sale was for oil and gas leases. That sale was carefully planned and publicly announced in accordance with established BOEM regulations and procedures. Proposed and final notices of sale were published for public review. The final notice was published in the Federal Register on 10/4/2021. 32 companies participated in the sale.
- The second sale was for CCS purposes. That sale was unannounced and had only one participant. That sale was facilitated by a provision in the Infrastructure bill that was signed just 2 days before the lease sale. There was no public notice.
Posts Tagged ‘CCS’
Sale 257 was actually two separate sales
Posted in CCS, energy policy, Gulf of Mexico, Offshore Energy - General, tagged CCS, Lease Sale 257 on November 19, 2021| Leave a Comment »
More questions on the Sale 257 “CCS leases”
Posted in CCS, energy policy, Gulf of Mexico, Offshore Energy - General, tagged BOEM, CCS, Exxon, Lease Sale 257 on November 18, 2021| Leave a Comment »
- Should CCS leases have been offered in a separate sale as is the case for salt, sulfur, and wind operations?
- Was CCS activity considered in the environmental reviews for this sale?
- Was CCS mentioned in the Notice of Sale?
- How will these CCS bids be evaluated?
- Will the CCS bidding influence the Judge’s decision on the pending Sale 257 litigation?
Carbon sequestration provision in the new infrastructure legislation seems to explain Exxon’s Sale 257 intentions
Posted in CCS, energy policy, Gulf of Mexico, Offshore Energy - General, tagged CCS, Exxon, infrastructure bill, Lease Sale 257 on November 18, 2021| Leave a Comment »
Excerpt from SEC. 40307. GEOLOGIC CARBON SEQUESTRATION ON THE OUTER CONTINENTAL SHELF:
(b) Leases, Easements, or Rights-of-way for Energy and Related Purposes.--Section 8(p)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(p)(1)) is amended--
(1) in subparagraph (C), by striking ``or'' after the semicolon;
(2) in subparagraph (D), by striking the period at the end and inserting ``; or''; and
(3) by adding at the end the following:
``(E) provide for, support, or are directly related to the injection of a carbon dioxide stream to sub-seabed geologic formations for the purpose of long-term carbon sequestration.''.
(c) Clarification.--A carbon dioxide stream injected for the purpose of carbon sequestration under subparagraph (E) of section 8(p)(1) of the Outer Continental Shelf Lands Act (43 U.S.C. 1337(p)(1)) shall not be considered to be material (as defined in section 3 of the Marine Protection, Research, and Sanctuaries Act of 1972 (33 U.S.C. 1402)) for purposes of that Act (33 U.S.C. 1401 et seq.).
(d) Regulations.--Not later than 1 year after the date of enactment of this Act, the Secretary of the Interior shall promulgate regulations to carry out the amendments made by this section.
This will be an interesting challenge for the DOI folks (BSEE/BOEM?) charged with writing the regulation given the jurisdictional issues related to capturing onshore CO2 and transporting it to the OCS. Also, when was this provision added to the infrastructure bill and did its apparent obscurity and delayed enactment give certain parties some type of competitive advantage at the sale?
Bud's Offshore Energy (BOE) 