Page 6 - IAGC July Newsletter
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IAGC Newsletter                                                                                                                                                                                              IAGC Newsletter

             IAGC to Submit Comments, Express                                                                                        IAGC Comments on Metal
                                                                                                                                     Export Regulations

             Concerns with NOAA’s Proposed IHAs                                                                                      Effecting Industry


                                                                                                                                     The IAGC, along with other trade
                    n 6 June 2017, the National Oceanic and        Summary of issues:                                                associations, submitted the Oil & Natural
                    Atmospheric Administration (NOAA) requested    •   Small dolphin exemption should apply to all dolphin           Gas Industry comments on Section 232
            Ocomments on its proposal to issue Incidental              species regardless of dolphin behavior.                       National Security Investigation of Imports
             Harassment Authorizations (IHAs) to incidentally take   •   NMFS proposes to require shutdowns for certain              of Aluminum (23 June 2017) and Steel
             marine mammals during G&G activities, pursuant to the     types of marine mammal observations “at any                   (31 May 2017) to the U.S. Department of
             Marine Mammal Protection Act (MMPA) in the Atlantic       distance”.  This requirement is arbitrary and unrea-          Commerce.
             Outer Continental Shelf (OCS). Nearly 700 days after the   sonable because it is unlimited (“at any distance”)
             first applications for IHAs were submitted to NOAA’s      and therefore contemplates shutdowns for circum-                     he Secretary of Commerce initiated an        the proper findings of this Section 232 investigation and
             National Marine Fisheries Service (NMFS), our members     stances in which no Level A or Level B harassment                    investigation into the large volumes of excess   avoid broad applications which sweep in all imported
             finally have the opportunity to comment on the proposed   will occur.                                                   Tcapacity worldwide in an effort to potentially     steel and aluminum products from all countries.
             authorizations.                                       •   Maintaining 2 PSOs on-duty at all times requires              limit or tax the imports of steel and aluminum.            Limiting steel and aluminum imports into the U.S. will
                     The IAGC’s comments will express concerns with    each source vessel to accommodate 4-5 PSOs at all                     In summary, the Associations urge the Department   have a dramatic effect on the Oil & Gas industry as we use
             the impracticability of some of the proposed mitigation   times.                                                        of Commerce to use the following criteria to determine   and consume large amounts of both products throughout
             measures and with NMFS’s substantial overestimation of   •   IAGC believes using Passive Acoustic Monitoring            the appropriate policy recommendations to address the   the lifecycle of exploration through the final product.
             the number of incidental takes that may occur as result   (PAM) should be optional.                                     findings of this Section 232 investigation of steel and   Prices of both commodities will increase with these
             of the surveys.  The best available scientific data and                                                                 aluminum imports:                                   potential regulations causing each phase of the oil lifecycle
             information demonstrate that mitigation programs can           For over 40 years, the federal government and aca-       1.  When determining harm to national security,     to become more expensive and reducing the ability of the
             and do effectively minimize and avoid the incidental take   demic scientists have studied the potential impacts of         employ a narrow definition of “national security”   U.S. Oil & Gas industry to compete on a global scale.
             of marine mammals associated with offshore geophysical   G&G activities on marine mammal populations and have              that conforms with 15 CFR § 705.4 and that does not           We will continue to monitor the policy developments
             survey operations. NMFS has proposed some mitigation   concluded that any such potential impacts are insignifi-            include steel and aluminum supply to the U.S. oil and   of Section 232 for steel and aluminum imports. Read full
             measures that are not practicable.  These measures will   cant.  This conclusion has been publicly reaffirmed on           natural gas industry.                            comments for Aluminum and Steel.
             likely result in increased survey duration, which, in turn,   multiple occasions by the Bureau of Ocean and Land        2.  Consider the extent of existing trade remedies already
             can increase the potential exposure of marine mammals to   Management (BOEM).                                              in place to address the unfair steel and aluminum trade
             potential seismic-related effects because shutdowns and           The extensive record of information regarding the        practices of U.S. trade partners and only put forward   IAGC Committees to Consult
             delays necessarily result in overall increased surveying time   insignificant effects of OCS seismic surveying demon-      new actions that are targeted precisely and narrowly
             to preserve data quality and integrity.               strates that the Proposed IHAs will have no more than a              to any previously unaddressed underlying causes of   on OGA Regulations
                     The comment period ends 21 July.              temporary, localized, and negligible impact on marine                distortions in the global market for steel and aluminum.
                                                                   mammals and marine mammal species or stocks.  The                 3.  Consider the ways in which new U.S. tariffs, quotas or   Over the past 4 years, the IAGC EAME Committee has led
                                                                   proposed seismic surveys are critical to the safe and                other measures could have a potential negative effect   IAGC’s efforts in negotiations with OGA (the United King-
                                                                   orderly development of the oil and gas resources of the              on U.S. energy security beyond their initial and direct   dom’s Oil and Gas Authority) on how geophysical data will
                                                                   Atlantic OCS, and can be accomplished with insignificant             effects on steel and aluminum, such as how they may   be regulated in the UK’s jurisdiction going forward. As part
                                                                   environmental impacts.  The IAGC therefore strongly                  increase costs for oil and natural gas industry by being   of that process, the OGA is seeking ‘consultation’ on recently
                                                                   supports NMFS’s authorization of IHAs to address any in-             passed through the chain of distribution, and how   proposed ‘regulations for the retention and disclosure of
                                                                   cidental harassment of marine mammals that may result                they could potentially affect affordable energy for   information and samples’. The IAGC EAME and Global Data
                                                                   from the proposed Atlantic OCS surveys.                              consumers, including the US government.             Licensing Committees will be responding to the comment
                                                                           The IAGC will continue to work to ensure members           The Associations believe that any policy              deadline on 25 August 2017.
                                                                   have the oppor tunity to survey in new markets around             recommendations to address the findings of this                Read the UK Oil & Gas UK Regulation Consultation for
            66                                                     the world including the Atlantic OCS.                             Section 232 investigation should be narrowly tailored to   Comments, as well as some background materials.   7
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