US MMS issues plan for developing renewable energy offshore

Washington (Platts)--30Dec2005

The US Minerals Management Service Friday proposed a plan designed to
spur development of renewable energy resources in the Outer Continental Shelf.

     The agency published in the Federal Register a notice asking for comment
on a proposed regulatory framework that would govern wind, wave, solar and
other alternative energy projects in the OCS. The Energy Policy Act of 2005
gave MMS authority to grant leases, easements and rights-of-way for offshore
renewable projects, and directed it to develop by mid-2006 regulations to
implement this new authority. 

     The notice asks the public to comment by Feb 28 on a range of issues that
could bear upon the proceeding, including screening potential applicants to
determine whether they have the financial backing necessary to carry out their
project proposals; potential measures to protect the environment from the
impacts of offshore renewable projects; the establishment of proper bonus
bids, rentals, royalties and cost recovery fees to impose upon renewable
operators; and possible conflicts between renewable projects and conventional
energy facilities in the OCS. 

     The rulemaking also will examine alternate uses of existing energy
facilities in the OCS, including for research and recreational purposes, and
as telecommunications sites.

                         ---Matt Spangler, matt_spanger@platts.com

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