FPSO Environmental Impact Statement: What is Happening?

Abstract This paper explores the regulatory issues around the use offloating production, storage, and offloading systems (FPSOs) and shuttle tankers in the Gulf of Mexico (GOM), the increasing interest in the use of FPSOs in the GOM, and how DeepStar came to be involved in the FPSO Environmental Impact Statement (EIS). It also covers the interaction between DeepStar, the Minerals Management Service (MMS), and the U.S. Coast Guard (USCG), the progress made in selecting a contractor to conduct the EIS, and the schedule for completion of the EIS. Introduction The FPSO is a development option in the "tool box" ofoperators all around the world except in the United States. There are currently 41 FPSOs in operation and another 24 under construction. Between 1995 and the year 2000, the number of FPSOs operating worldwide will triple.1 FPSOs have proved to be safe and environmentally sound, as well as an economic development option. Many operators would like to add FPSOs to the list of development options available for projects in the deepwater GOM. The MMS and the USCG have agreed to work with operators and begin the necessary technical, safety, and environmental reviews and develop the regulatory framework that might allow FPSOs to operate in the GOM. One of the first steps in the regulatory process is to evaluate the potential effects of FPSO operations and support activities on the marine, human, and coastal environment. The National Environmental Policy Act (NEPA) requires the preparation of a detailed EIS on any major Federal action that may have a significant impact on the environment. Since FPSO technology and shuttle tankering of GOM-produced crude oil are new to the Gulf and since large volumes of crude oil will be stored in the hull of the FPSO, the MMS has decided to prepare an EIS to assess the potential impacts of FPSO and shuttle tanker operations. DeepStar, an industry consortium composed of 22 oil and gas operators and numerous vendors, has agreed to provide funding to the MMS in support of the EIS. The intent of the NEPA/EIS process is to inform stakeholders and the public of proposed Federal or Federally permitted actions and the potential impacts of those actions. The EIS process provides multiple opportunities for input by interested parties and the general public. Input on issues and alternatives to be addressed in the EIS is solicited through public scoping, and once the Draft EIS has been completed, public hearings are conducted on its contents and findings. Both formal and informal consultations with other Federal agencies and the affected states are also part of the EIS process. The EIS document is intended to provide information on the alternatives, potential impacts, and possible mitigation measures so that Federal agencies can make informed decisions. The EIS is not a decision document; decisions that are made based upon consideration of the information and findings presented in the EIS are documented in a "Record of Decision." Increasing Interest in FPSOs in the GOM In recent years, there has been a surge in deepwater leasing in the Central and Western planning areas of the Outer Continental Shelf (OCS) in the GOM, and operators have spent billions of dollars obtaining these leases.