The search for oil and gas on the Outer Continental Shelf (OCS) in the South Atlantic Region began in 1960, when geophysical surveys of the area were initiated. In 1977, a Continental Offshore Stratigraphic Test (COST) well was drilled in the Southeast Georgia Embayment. In March 1978, the first lease sale, Sale 43, was held, resulting in the leasing of 43 tracts. Approximately a year later, in May 1979, the first exploratory drilling began, and by February 1980, six exploratory wells had been drilled by four companies. Hydrocarbons were not found in any of these wells.
Lease Sale 56, the second lease sale in the South Atlantic Region, was held in August 1981. The sale resulted in the leasing of 47 tracts. Most of the leased tracts are in deep water along the Continental Slope off North Carolina. To date, no drilling has occurred on these tracts, but it is likely that two wells will be drilled or will be in the process of being drilled by the end of 1982. Reoffering Sale RS-2 is scheduled for July 1982, and it will include tracts offered in Lease Sale 56 that were not awarded leases. Lease Sale 78 is scheduled to be held in July 1983.
The most recent (March 1982) estimates of risked resources for leased lands in the South Atlantic OCS are 27 million barrels of oil and 120 billion cubic feet of gas.
To date, onshore impacts resulting from OCS exploration have been minimal, and they were associated with Lease Sale 43 exploratory activities. Tenneco, using existing facilities, established a support base in Savannah, Georgia; Getty, Transco, and Exxon used a support base established for them by the city of Brunswick, Georgia. The port at Morehead City, North Carolina, is expected to provide the onshore facilities for exploration in the near future on Lease Sale 56 tracts. Arrangements for the use of these facilities are currently being negotiated.
In June 1981, the South Atlantic Regional Technical Working Group prepared a Regional Transportation Management Plan for the South Atlantic OCS. The plan is principally an integration of regulatory frameworks, policies, and plans that are applicable to pipeline siting from each of the South Atlantic coastal States and Federal agencies with jurisdiction in the area.
