Assessment of the U.S. Outer Continental Shelf Environmental Studies Program

III. Social and Economic Studies

Socioeconomics Panel

Committee to Review the Outer Continental Shelf Environmental Studies Program

Board on Environmental Studies and Toxicology

Commission on Geosciences, Environment, and Resources

NATIONAL ACADEMY PRESS
WASHINGTON, D.C.
1992



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Assessment of the U.S. Outer Continental Shelf Environmental Studies Program: III. Social and Economic Studies Assessment of the U.S. Outer Continental Shelf Environmental Studies Program III. Social and Economic Studies Socioeconomics Panel Committee to Review the Outer Continental Shelf Environmental Studies Program Board on Environmental Studies and Toxicology Commission on Geosciences, Environment, and Resources NATIONAL ACADEMY PRESS WASHINGTON, D.C. 1992

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Assessment of the U.S. Outer Continental Shelf Environmental Studies Program: III. Social and Economic Studies NATIONAL ACADEMY PRESS 2101 Constitution Avenue, N.W. Washington, D.C. 20418 NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competencies and with regard for appropriate balance. This report has been reviewed by a group other than the authors according to procedures approved by a Report Review Committee consisting of members of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. Upon the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Frank Press is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. Robert M. White is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters pertaining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, upon its own initiative, to identify issues of medical care, research, and education. Dr. Kenneth I. Shine is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to associate the broad community of science and technology with the Academy's purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both Academies and the Institute of Medicine. Dr. Frank Press and Dr. Robert M. White are chairman and vice chairman, respectively, of the National Research Council. Support for this project was provided by the U.S. Department of the Interior, Contract No. 14-12-001-30342. Library of Congress Catalog Card No. 89-63847 International Standard Book Number 0-309-04835-4 Additional copies of this report are available from: National Academy Press  2101 Constitution Avenue, NW  Washington, DC 20418 B-047 Cover photo: Grant Heilman/Grant Heilman Photography Copyright 1992 by the National Academy of Sciences. All rights reserved. Printed in the United States of America

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Assessment of the U.S. Outer Continental Shelf Environmental Studies Program: III. Social and Economic Studies Socioeconomics Panel GARRY D. BREWER (Chairman), University of Michigan, Ann Arbor CAMILLA AUGER, Auger Associates, Inc., Washington, DC GARDNER BROWN, University of Washington, Seattle BILIANA CICIN-SAIN, University of Delaware, Newark RALPH FAUST, California Coastal Commission, San Francisco ROBERT B. GRAMLING, University of Southwestern Louisiana, Lafayette RALPH W. JOHNSON, University of Washington, Seattle JAMES OPALUCH, University of Rhode Island, Kingston ROY A. RAPPAPORT, University of Michigan, Ann Arbor CHARLES P. WOLF, Social Impact Assessment Center, New York, NY Parent Committee Liaison Members CHARLES EDDY, Los Angeles, CA GUY R. MARTIN, Perkins Coie, Washington, DC Project Director DAVID POLICANSKY

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Assessment of the U.S. Outer Continental Shelf Environmental Studies Program: III. Social and Economic Studies Committee to Review the Outer Continental Shelf Environmental Studies Program JOHN W. FARRINGTON (Chairman), Woods Hole Oceanographic Institution, Woods Hole VERA ALEXANDER, University of Alaska, Fairbanks GARRY D. BREWER, University of Michigan, Ann Arbor JUDITH MCDOWELL CAPUZZO, Woods Hole Oceanographic Institution, Woods Hole CHARLES EDDY, Los Angeles EDWARD D. GOLDBERG, Scripps Institution of Oceanography, La Jolla CHARLES BRUCE KOONS, Exxon Production Research Company (retired), Houston GUY R. MARTIN, Perkins Coie, Washington, DC ARTHUR MAXWELL, University of Texas, Austin GUY R. MARTIN, Perkins Coie, Washington, DC JAMES J. O'BRIEN*, Florida State University, Tallahassee MAURICE RATTRAY, JR., University of Washington, Seattle HOWARD A. SLACK, Port Ludlow, WA JOHN J. WALSH, University of South Florida, St. Petersburg Project Staff DAVID POLICANSKY, Project Director KATE KELLY, Editor SYLVIA TOGNETTI, Research Associate (through July 1992) ANNE SPRAGUE, Information Specialist HOLLY WELLS, Senior Project Assistant Sponsor U.S. Department of the Interior, Minerals Management Service *   Served through March 17, 1992.

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Assessment of the U.S. Outer Continental Shelf Environmental Studies Program: III. Social and Economic Studies Board on Environmental Studies and Toxicology PAUL G. RISSER (Chair), University of New Mexico, Albuquerque FREDERICK R. ANDERSON, Cadwalader, Wickersham & Taft, Washington, D.C. JOHN C. BAILAR, III, McGill University School of Medicine, Montreal GARRY D. BREWER, University of Michigan, Ann Arbor JOHN CAIRNS, JR., Virginia Polytechnic Institute and State University, Blacksburg EDWIN H. CLARK, Department of Natural Resources and Environmental Control, State of Delaware, Dover JOHN L. EMMERSON, Lilly Research Laboratories, Greenfield, IN ROBERT C. FORNEY, Unionville, PA ALFRED G. KNUDSON, Fox Chase Cancer Center, Philadelphia KAI N. LEE, Williams College, Williamstown, MA GENE E. LIKENS, The New York Botanical Garden, Millbrook JANE LUBCHENCO, Oregon State University, Corvallis DONALD R. MATTISON, University of Pittsburgh, Pittsburgh HAROLD A. MOONEY, Stanford University, Stanford, CA GORDON ORIANS, University of Washington, Seattle FRANK PARKER, Vanderbilt University, Nashville GEOFFREY PLACE, Hilton Head, SC MARGARET M. SEMINARIO, AFL/CIO, Washington, D.C. I. GLENN SIPES, University of Arizona, Tucson BAILUS WALKER, JR., University of Oklahoma, Oklahoma City WALTER J. WEBER, JR., University of Michigan, Ann Arbor Staff JAMES J. REISA, Director DAVID J. POLICANSKY, Associate Director and Program Director for Natural Resources and Applied Ecology RICHARD D. THOMAS, Associate Director and Program Director for Human Toxicology and Risk Assessment LEE R. PAULSON, Program Director for Information Systems and Statistics RAYMOND A. WASSEL, Program Director for Environmental Sciences and Engineering

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Assessment of the U.S. Outer Continental Shelf Environmental Studies Program: III. Social and Economic Studies Commission on Geosciences, Environment, and Resources* M. GORDON WOLMAN (Chair), Johns Hopkins University, Baltimore PATRICK R. ATKINS, Aluminum Company of America, Pittsburgh PETER S. EAGLESON, Massachusetts Institute of Technology, Cambridge EDWARD A. FRIEMAN, Scripps Institution of Oceanography, La Jolla HELEN INGRAM, University of Arizona, Tucson W. BARCLAY KAMB, California Institute of Technology, Pasadena GENE E. LIKENS, New York Botanical Gardens, Millbrook SYUKURO MANABE, Geophysics Fluid Dynamics Lab, National Oceanic and Atmospheric Administration, Princeton JACK E. OLIVER, Cornell University, Ithaca, NY FRANK L. PARKER, Vanderbilt University, Nashville, and Clemson University, Anderson, SC DUNCAN T. PATTEN, Arizona State University, Tempe RAYMOND A. PRICE, Queen's University at Kingston, Canada MAXINE L. SAVITZ, Garrett Ceramic Components, Torrance, CA LARRY L. SMARR, University of Illinois at Urbana-Champaign STEVEN M. STANLEY, Johns Hopkins University, Baltimore WARREN WASHINGTON, National Center for Atmospheric Research, Boulder EDITH BROWN WEISS, Georgetown University Law Center IRVIN L. WHITE, Battelle Pacific Northwest Laboratories, Washington, DC Staff STEPHEN RATTIEN, Executive Director STEPHEN D. PARKER, Associate Executive Director JANICE E. MEHLER, Assistant Executive Director (through September 1992) JEANETTE SPOON, Administrative Officer CARLITA PERRY, Administrative Assistant ROBIN L. LEWIS, Senior Project Assistant *   This study originally was undertaken under the auspices of the Commission on Physical Sciences, Mathematics, and Resources (see Appendix A).

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Assessment of the U.S. Outer Continental Shelf Environmental Studies Program: III. Social and Economic Studies Preface The review leading to this report was initiated in May 1986 by the National Research Council (NRC) at the request of the Minerals Management Service (MMS) of the U.S. Department of the Interior. Under the auspices of the NRC Board on Environmental Studies and Toxicology, the Committee to Review the Outer Continental Shelf Environmental Studies Program was formed to carry out the overall assignment. Three panels were established, one of which, the Socioeconomics Panel, investigated a full spectrum of social and economic aspects of the Environmental Studies Program (ESP). This report is the third of the three panel reports; the first two dealt with physical oceanographic and ecological aspects of the same Department of the Interior program. Companion reports by this committee dealt with leasing areas offshore of Florida, California, and New England. A great deal has happened since 1986 when the OCS committee began its work. The Exxon Valdez ran aground and deposited some 240,000 barrels of Alaska crude in Prince William Sound. The Soviet Union collapsed. Iraq invaded Kuwait, and the United States and United Nations joined in Operation Desert Storm. Closer to home, President George Bush in June 1990 considered the evidence, including a report from this committee, and decided not to explore several offshore areas: parts of Florida, California, and Georges Bank all were placed off limits until the year 2000. The Minerals Management Service has changed, too. Three directors have led MMS since our work began. The head of the ESP, Don Aurand, who originally sought the help of the NRC, also left for other challenges. This report and all related efforts by the OCS Committee have been arduous. The Socioeconomics Panel found its task particularly difficult, largely because there was so small a base of relevant socioeconomics information to build on and because social and economic factors vary so much from one place to another and can change so quickly. These difficulties led the panel to recognize that one could not simply apply experiences gained from other studies of OCS impacts or even studies of other kinds of projects to any particular OCS region. Instead, the only useful course it could recommend was to use previous experiences to guide the development of a process for obtaining the needed information; the report outlines such a process in some detail. We recognize that this might be a disappointment to MMS, especially given the detailed recommendations provided by the Physical Oceanography and Ecology Panels. However, there does not appear to be a satisfactory alternative, despite the panel's prolonged and earnest efforts to find one. A credible, policy-relevant socioeconomics studies program cannot be built overnight from ready-made parts. The difficulty of this report and of the other efforts of the OCS Committee is quite in keeping with the complexity, difficulty, and importance of the Offshore Oil and Gas Program for the United States. In its more than 20-year history, the ESP alone has expended more than $500 million to study the environmental, including socioeconomic, aspects of lease sales in OCS. This report concentrates

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Assessment of the U.S. Outer Continental Shelf Environmental Studies Program: III. Social and Economic Studies on the adequacy and applicability of the ESP's socioeconomic studies in meeting program goals during this period. It concludes with several recommendations the panel believes would improve performance in the socioeconomic realm and in the ESP. During the course of its study, the panel visited coastal Louisiana; northern and southern California; and Anchorage, Dillingham, Aleknagik, Togiak, Cordova, and Valdez, Alaska. In those places, we received numerous briefings and had numerous discussions with many people, including private individuals; members of village, town, borough, and county governments; representatives of various commercial enterprises, including fishing, fish-processing, agriculture, and tourism; the oil industry, environmental organizations, and others; and federal and state agencies, including MMS. Others provided published documents and written information. We are enormously grateful to those who gave of their time and expertise; they taught the panel a great deal. Naming all the people who helped the panel complete its task would be quite impossible, for they number in the hundreds. However, we would be remiss not to single out the extraordinary diligence, patience, and tact of David Policansky, the NRC staff program officer in charge of the OCS committee's work. He, and his immediate staff, Sylvia Tognetti and Holly Wells, have never wavered in the long road they and we of the Socioeconomics Panel have walked together. We also wish to acknowledge the cooperation and helpfulness of MMS officials, the constructive comments of numerous anonymous reviewers, the technical assistance of those on the NRC's editorial staff, and the overall guidance of James Reisa, the director of the NRC Board on Environmental Studies and Toxicology. Garry D. Brewer Chairman, Socioeconomics Panel

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Assessment of the U.S. Outer Continental Shelf Environmental Studies Program: III. Social and Economic Studies Contents     EXECUTIVE SUMMARY   1 1   INTRODUCTION   11     Activities on the Outer Continental Shelf,   12     The Environmental Studies Program,   15     This Report,   18     Planning and Procurement of Environmental Studies,   18     Why MMS Needs Socioeconomics Information,   19 2   THE HUMAN ENVIRONMENT   23     The Complexity of the Human Environment,   24     The Symbolic Nature of the Human Environment,   25     The Human Environment and the Environmental Studies Program,   26     Risk,   26 3   A FRAMEWORK FOR ORGANIZING OCS SOCIOECONOMIC STUDIES   29     Identifying and Understanding Socioeconomic Effects,   29     OCS Activities That Can Affect the Human Environment,   30     Distribution,   33     Predicting the Response,   34     Impact Evaluation,   35     Mitigation,   37     Monitoring,   38     Management,   40     Questions and Issues,   40 4   ANALYSIS OF THE PROGRAM   45     Atlantic Region,   45     Gulf of Mexico Region,   47     Pacific Region,   48     Alaska Region,   51

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Assessment of the U.S. Outer Continental Shelf Environmental Studies Program: III. Social and Economic Studies 5   CONCLUSIONS AND RECOMMENDATIONS   61     Conclusions,   61     Recommendations,   62     REFERENCES   67     APPENDICES   83 A:   Commission on Physical Sciences, Mathematics, & Resources,   83 B:   The Human Environment,   87 C:   The Evolution of the Federal OCS Program: National and Regional Perspectives,   107 D:   Social and Economic Studies Technical Reports, Alaska OCS Region, MMS,   143