What are the legal requirements for the development of offshore energy resources?

In Texas, legal requirements for the development of offshore energy resources are largely governed by both Texas and federal law. These laws set forth standards for exploration, production, and transport of oil and gas located in the waters of the Gulf of Mexico adjacent to the Texas coast. Texas has enacted statutes and regulations that govern the drilling of offshore oil and gas wells, including the spacing of wells, use of pipelines, and the amount and flow of oil and gas produced. These statutes and regulations, known as the Texas Coastal Zone Resource Management Rules, are broadly focused on protecting the environment and public from any potential negative effects of onshore oil and gas development. The Outer Continental Shelf Act also sets forth standards for oil and gas exploration and production on the outer continental shelf. This Act requires that the appropriate federal agency complete an environmental impact assessment of all proposed offshore projects. Such assessments are intended to ensure that proposed projects do not have adverse environmental impacts, including water contamination and damage to wildlife. The Marine Mammal Protection Act and Endangered Species Act are designed to protect certain species of marine mammals and endangered plant and animal species and require developers to adjust their plans if their activities could affect such species. Finally, numerous state and federal agencies are responsible for enforcement of these laws, including the U.S. Department of the Interior, the Texas Railroad Commission, and the Texas General Land Office. All of these agencies have the authority to impose fines, penalties and other remedies for violations of energy laws and regulations.

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