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• Cffshore
a) 1he oll and naLural aas lndusLrv conLlnues Lo seek clarlflcaLlon and cerLalnLv reaardlna proposed
reaulaLlons and noLlce 1o Lessee (n1L) requlremenLs esLabllshed bv 8CLM8L followlna Lhe Culf of
Mexlco oll splll. 1he aLLached documenL ouLllnes concerns whlch remaln as a resulL of Lhe currenL
8CLM8L reaulaLorv envlronmenL.
b) A naLlonal Ccean Þollcv currenLlv under developmenL wlLhln Lhe AdmlnlsLraLlon could serlouslv
lmpacL Lhe enerav secLor bv excludlna or resLrlcLlna operaLlons Lhrouah lmplemenLaLlon of reaulaLorv
proposals such as coasLal and marlne spaLlal plannlna (CMSÞ), an ocean zonlna Lool based on Lhe noLlon
of an lnherenL confllcL and lncompaLlblllLv amona ocean uses. 1hls pollcv adds a redundanL laver of
bureaucracv, creaLes confuslon and unnecessarv confllcL wlLh exlsLlna sLaLuLes, and could delav or
resLrlcL oll and aas exploraLlon and developmenL, poLenLlallv slanlflcanLlv reduclna [ob-relaLed caplLal
expendlLures and decreaslna our domesLlc enerav supplv.
• Cnshore
a) 1he domlnanL lssue LhaL affecLs operaLors on publlc lands ln Lhe lnLermounLaln WesL ls Lhe serles
of efforLs under Lhls AdmlnlsLraLlon Lo close off or Lo scale back oll and aas leaslna. ln oLher words, Lhe
lmpacLs on developmenL of publlclv owned domesLlc enerav resources on publlc lands sLarL wlLh
admlnlsLraLlve declslons noL Lo make Lhem avallable.
b) 1he nexL mosL slanlflcanL lssue concerns Lhe nLÞA process. 1he lenaLh of Llme LhaL ls lncreaslnalv
requlred for nLÞA revlews aL all levels, and Lhe sLeadv efforLs Lo resLrlcL use of less resLrlcLlve revlews for
oll and aas pro[ecLs add cosL and delav Lo enerav pro[ecLs, and serve Lo de-lncenLlvlze exploraLlon on
publlc lands and/or ln Lhe WesL. ºLnerav Leaslna 8eform" chanaes LhaL 8LM lnLroduced Lhrouah an
lnsLrucLlonal memorandum ln Mav, whlle noL veL fullv lmplemenLed (Lhls ls expecLed second quarLer,
2011) are expecLed Lo add delav and complexlLv Lo Lhe 8LM declslon processes bv whlch 8LM-manaaed
acreaae ls made avallable for lease. 1he resLrlcLlon on use of caLeaorlcal excluslons ls llkelv Lo add cosLs
and revlew perlods for manv exploraLlon pro[ecLs LhaL would hlLherLo have been approved bv caLeaorlcal
excluslon.
c) Lmeralna poLenLlal of use of cllmaLe chanae araumenLs Lo llmlL acreaae offered for lease. 1hls lssue
has veL Lo Lake Lhe shape of speclflc reaulaLlons, buL Lhe acLlon bv Lhe Councll on LnvlronmenLal CuallLv
Lo afflrm lncluslon of cllmaLe chanae analvsls ln Lhe nLÞA process polnLs Lhe wav Loward Lhls posslblllLv.
d) use of Lhe Lndanaered Specles AcL Lo resLrlcL publlc lands acreaae avallable for lease or Lo resLrlcL
oll and naLural aas operaLlons on Lhose leases. lor example, Lhe llsLlna earller Lhls vear of Lhe CreaLer
saae-arouse as ºwarranLed, buL precluded" for proLecLlon under Lhe Lndanaered Specles AcL, because of
Lhe larae overlap beLween Lhe saae arouse ranae and 8LM-admlnlsLered publlc lands wlLh naLural aas
poLenLlal easL of Lhe CreaL 8asln. 1here remaln sLrona lndusLrv concerns LhaL Lhe case has noL been
made LhaL saae-arouse populaLlons are ln Lhe sLaLe of perll LhaL one would expecL for a specles alven Lhe
ºwarranLed, buL precluded" LreaLmenL (for example, Lhe specles mav sLlll be leaallv hunLed ln all buL one
of Lhe sLaLes). 1hls ls due Lo concerns LhaL Lhe prlnclpal meLhod relled upon Lo assess saae-arouse
populaLlons has meLhodoloalcal flaws. 1he core lssue here ls Lhe rellablllLv and ob[ecLlvlLv of Lhe sclence
LhaL ls offered Lo supporL LSA declslons ln aeneral (and ln Lhe case of Lhe saae arouse ln parLlcular), as
well as Lhe balance (or lLs lack) ln Lhe conslderaLlon of rlsk facLors LhaL mav lnfluence saae-arouse
populaLlons.
• upsLream LnvlronmenLal--LxploraLlon and ÞroducLlon WasLe
Cn SepLember 8, n8uC flled a ºÞeLlLlon for 8ulemaklna" wlLh LÞA, challenalna Lhe assumpLlons ln LÞA's
1988 8eaulaLorv ueLermlnaLlon, whlch concluded LhaL reaulaLlna produced wasLes from exploraLlon and
producLlon operaLlons was noL necessarv or approprlaLe. ln lLs recenL peLlLlon, n8uC requesLs LhaL LÞA
reconslder and reaulaLe L&Þ wasLes under SubLlLle C of 8C8A. under Lhe 1980 8enLsen AmendmenL Lo
8C8A, LÞA was prohlblLed from reaulaLlna wasLes from exploraLlon and producLlon operaLlons unLll lL
compleLed a reporL Lo Conaress on Lhe sLaLus of Lhe wasLes' currenL manaaemenL and Lhe rlsk Lhev
presenLed. 1hen, lf LÞA were Lo deLermlne LhaL reaulaLlon was approprlaLe, anv such reaulaLlon would
be requlred Lo be approved bv Conaress before lL could become effecLlve.
AÞl ls developlna a response leLLer (ln coordlnaLlon wlLh oLher oll and aas Lrades) Lo send Lo LÞA, whlch
should be avallable bv Lhe end of lebruarv 2011. AÞl ls also underLaklna some economlc modellna Lo
aeL a beLLer undersLandlna of Lhe cosL lmpacLs of such a reaulaLorv approach ln Lodav's dollars. lL ls
posslble LhaL much of LhaL work wlll be concluded bv laLe !anuarv.
• Þlpellne
1he ueparLmenL of SLaLe ls currenLlv revlewlna Lhe urafL LnvlronmenLal lmpacL SLaLemenL for Lhe
kevsLone xL Þlpellne LhaL wlll carrv Canadlan crude from AlberLa Lo Lhe Culf CoasL of Lhe u.S. Approval
of Lhe sLaLemenL ls prelude Lo uoS's approval of a ÞresldenLlal 8order Crosslna ÞermlL for Lhe plpellne. lf
noL approved, Lhe u.S. wlll noL reallze Lhe rouahlv $20 bllllon dollars of economlc sLlmulus from Lhe
pro[ecL, lncludlna more Lhan 13,000 hlah-waae manufacLurlna and consLrucLlon [obs ln 2011-2012.
• Cll Sands
uS Lnerav lndependence and SecurlLv AcL (LlSA) §326 llmlLs domesLlc reflners processlna of Canadlan oll
sands bv prohlblLlna Lhe federal aovernmenL from purchaslna fuels derlved from unconvenLlonal
peLroleum sources lf lL has a CPC llfecvcle emlsslon areaLer Lhan emlsslons from Lhe fuel from Lhe
convenLlonal source. lL decreases uS reflners' compeLlLlve poslLlon ln Lhe alobal markeLplace and
reaulaLlons poslna consLralnLs on oll sands processlna ln Lhe uS llmlLs Lhe poLenLlal creaLlon of 342,000
new [obs ln Lhe uS beLween 2011 and 2013.

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