The document discusses several key lessons from past offshore drilling accidents and the need to properly assess risks and impacts for future offshore drilling projects. Specifically: 1) Past accidents have exposed problems with preparation, response plans, and damage claims, highlighting the need for thorough risk assessments, environmental impact statements, and mitigation practices. 2) The South Atlantic Bight ecosystem is different from the Gulf of Mexico and requires well-done assessments and permit conditions to protect the region. 3) States seek revenue sharing programs similar to the Gulf of Mexico Energy Security Act to ensure compensation for potential onshore impacts and to fund coastal restoration. Thorough documentation of environmental assets is needed to establish such programs.

3. Lessons from the Past
• NC was totally unprepared in 1988 -
there was much to learn(circulation).
• Big accidents expose problems→(EV:
‘true’ baselines? BP: “oil spill plan”! BP:
damage claims).
• The SAB has unique and important
features (seabirds).
• CZMA ‘Consistency’ is an important tool.

4. SAB ≠ GOM
• GOM: Development (and damages) before
science and economics were done.
• SAB: lots of science – but largely not asset-
and impact-focused.
• SAB: Different ecosystem – needs well-done
Risk Assessments, EIS, permit conditions,
mitigation practices, asset inventories.
• Can we get the economics right?

5. $$ Bonus bids, royalties and rents from lessees $$
The U.S. Treasury distributes about half of the revenues from OCS mineral development in various
proportions to the states, the Historic Preservation Fund, the Land & Water Conservation Fund, the
Reclamation Fund, and Native American Tribes & Allottees. The other half helps to fund federal programs.
For the Gulf Coast region, revenue-sharing extends beyond the three-mile zone. In 2006, Congress
passed the Gulf of Mexico Energy Security Act (GOMESA): Texas, Louisiana, Mississippi and Alabama receive
37.5 percent of all royalties from new oil and natural gas development in federal waters adjacent to the
respective state. The intent of GOMESA is to ensure states have adequate resources to fund coastal restoration
and conservation initiatives and hurricane protection projects. Therefore, in addition to revenues distributed
to the GOMESA states, 12.5 percent of revenues are allocated to the federal Land and Water Conservation
Fund.
Accounting Year Revenues Reported from OCS Development
2012 $6,862,760,911
2011 $6,538,541,451
2010 $5,254,161,316
2009 $5,819,678,113
2008 $18,044,630,413
2007 $7,019,308,640

6. GOMESA:
• Compensation for onshore impacts of offshore
activities
• Demonstrated needs – environmental and
economic assessments
• NC and the Governors’ South Atlantic Alliance
want similar federal revenue sharing – need
similar justifications based on assets at risk.
• A principle of insurance – document your
assets before you have a loss and file claims.

7. Consistency: Enforceable Policies
• Ecosystem services and assets are just as
much public trust resources as minerals!
• Protect critical habitat, keystone species.
• Establish the economic values of
environmental assets and ecosystem services
in affected areas.
• Require appropriate measures to compensate
for damage to assets and services (‘revenue sharing’??)

9. Ecological→Economic Questions:
• What are offshore fisheries worth to NC?
• What is the economic impact of offshore-
spawning fishes to NC?
• What is the economic value of offshore
spawning habitat to NC? (PNAs?)
• What are the values of the ecosystem services
(e.g., converting nutrients into food, nursery
functions) provided by hard and soft bottom
communities?

10. Challenges
• Identify and fill the science gaps
• Properly value ecosystem services
• Create enforceable policies to protect
environmental assets and services
• Create enforceable policies to provide
for proper mitigation and compensation