The Politics, Economics, and Ecology of Decommissioning Offshore Oil and Gas Structures

Abstract

STUDY RESULTS: In the case of the Gulf, an advocacy coalition that combined the interests
of the oil industry, recreation and commercial fishing, scientists, and resource managers
supported the use of offshore rigs as artificial reefs. The development of oil and gas in the
Gulf OCS led to an increase in commercial and sports fishing activity. Scientific reports and
workshops spoke to the benefit of artificial reefs in the Gulf. States and local artificial reef
programs had been established before the passage of the National Fisheries Enhancement Act
(NFEA) of 1984. In passing the NFEA, the federal government granted discretionary
authority to states to create their respective rigs to artificial reef program. Many of these
programs were based on existing artificial reef programs.
Despite the intent of the National Fisheries Enhancement Act of 1984, which fostered the
development of Gulf state rigs-to-reefs programs, there remain a number of issues and
concerns associated with the use of rigs as artificial reefs in California. The major issues and
concerns that general public, the scientific community and policymakers are facing include the
following:
(1) The Liability Issue. Since the publication of the National Artificial Reef Plan, which
recommended that the US Army Corps of Engineers develop specific permit standards and
conditions, the issue of liability remains vague and unclear. The Corps has developed a policy
requiring the permit holder of an artificial reef to prove adequate liability coverage. Gulf
states with reefing programs have assumed the role of the permittee. This has necessitated a
close review of the role of the states and localities in implementing the NFEA. Clarification
of this issue would improve operational procedures and potentially reduce uncertainty about
exposure on the part of state artificial reef managers.
(2) Scientific Uncertainty: Production versus Aggregation. Scientists and policymakers
remain concerned about the production versus aggregation question. It remains unclear if rigs
attract or produce fishes. Some scientists and policy makers contend that too much emphasis
has been placed on adult fishery enhancement activity associated with offshore structures, and
not resources have been spent on restoring essential coastal processes, such as estuarine
habitats and wetland ecosystems (the “nurseries of the sea”).
(3) Limited Funding. Since the passage of the NFEA, Gulf state and California artificial reef
programs have not received adequate funding. State artificial reef programs maintain an
average staff size of 1 full-time employee. Most funds are generated from either state
appropriations or Wallop-Breaux funds, which refer to the 1984 Wallop-Breaux Amendment
to the Federal Aid in Sport Fish Restoration Act (16 U.S.C. sec. 777 (1988)). Oil companies
that “donate” structures are asked to contribute half of the disposal savings realized to the
Fund. In addition, monitoring of existing artificial reefs and regulatory compliance issues
remain important concerns of state artificial reef managers.
STUDY PRODUCTS: This final report is included in the UCSB’s