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State of Florida
DEPARTMENT OF ENVIRONMENTAL PROTECTION
Virginia B. Wetherell, Secretary





DIVISION OF RESOURCE MANAGEMENT
Jeremy A. Craft, Director





FLORIDA GEOLOGICAL SURVEY
Walter Schmidt, State Geologist and Chief




Open File Report 57




An Overview of Florida Marine Mining
and Marine Oil and Gas Production Regulations


by

Connie B. Garrett


Florida Geological Survey
Tallahassee, Florida
1993


ISSN 1058-1391


UiVJLiii Y C FLOiiAiJ LIBRARIES















799






SCIENCE
LIBRARY








AN OVERVIEW OF FLORIDA MARINE MINING AND
MARINE OIL AND GAS PRODUCTION REGULATIONS

Connie B. Garrett, P.G. 1274
Florida Geological Survey


INTRODUCTION

The following is a summary of
current rules and regulations concerning
marine mining and marine oil and gas
production in Florida, as of January
1993. It provides a synopsis of
procedures, pertinent statutes, laws,
regulations, and contact personnel in the
responsible agencies.

RESPONSIBLE AGENCIES:

DEPARTMENT OF ENVIRONMENTAL
PROTECTION (DEP):

(Former Department of Natural
Resources (DNR)): Division of
State Lands, Land Management
Services, contact Ed Hachen-
berger (904) 488-2291; Division of
Resource Management, Bureau of
Mine Reclamation, contact Joseph
Bakker (904) 488-8212, and
Florida Geological Survey, Oil
and Gas Section, contact David
Curry (904) 487-2219; Division of
Beaches and Shores, Office of
Beach Management, contact
Lonnie Ryder, (904) 487-1262.
(Former Department of Environ-
mental Regulation (DER)): Office
of Intergovernmental Programs,
contact Lynn Griffin, Federal
Consistency Coordinator, (904)
488-0784; Bureau of Wetland
Resource Management, contact
Janet Llewellyn, (904) 488-0130;
Bureau of Water Facilities


Regulation, contact Robert
Heilman, (904) 487-0563; Bureau
of Air Regulation, contact Clair
Fancy (904) 488-1344.

DEPARTMENT OF COMMUNITY
AFFAIRS:

Office of the Secretary, Florida
Coastal Management Section,
contact Chris McKay, (904) 922-
5438, Development of Regional
Impact Section, contact Alex
Magee (904) 488-4925.

EXECUTIVE OFFICE OF THE
GOVERNOR:

Office of Planning and Budget,
contact Deborah Tucker (904)
488-5551.

STATUTES:

Beach restoration and nourishment,
Chapters 125.0104 and 161,
Florida Statutes (F.S.).

Comprehensive (growth and
development) plans required from
local governments (Chapter
163.3177, F.S.); Department of
Community Affairs authority,
(Chapter 380.22, F.S.); permitted
activities, consistency review,
(Chapter 380.23, F.S.);
developments of regional impact,
(Chapter 380.06, F.S.); coastal
zone management, (Chapter


: 1111 1 EM1111MM-1








163.3178, :F.S.); and Federal
Coastal Zone Management Act
(16 U.S.C. ss. 1451-1464).

Mines and Mineral Exploration,
Development and Production;
authority of the DEP, Division of
Resource Management, Bureau of
Geology to regulate and permit oil
and gas exploration, production,
well closure activities, and security
requirements (Chapters 376.40
and 377, Part I, F.S.); commercial
code provisions and secured
transactions, (Chapter 679.402,
F.S.); authority of the DEP Bureau
of Wetland Resource Management
to regulate activities in wetlands
Chapter 403.918, F.S.); authority
of the DEP Bureau of Water
Facilities Regulation to regulate
industrial wastewater discharges
(Chapter 403.087, F.S.); authority
of the DEP Bureau of Air
Regulation to regulate air
emissions sources (403.087, F.S.);
sale or lease of mineral rights,
(Chapters 253.45 and 253.54,
F.S.); state land leases, authority,
royalties (Chapter 253.45, 253.55,
F.S.); and the authority to sell oil
and gas leases, (Chapter 253.45,
F.S.).

The chapters above are reference-
ed from the 1991 Florida Statutes and
the 1992 Florida Statutes supplement.
In the references, original chapters are
listed with the Division of Statutory
Revision (etc.) 1991 source and the
amended chapters are listed with the
Division of Statutory Revision (etc.) 1992
supplement.


RULES:

Rules and Procedures for
Applications for Coastal Construction
Permits are covered by the DEP Rule
16B-41, Florida Administrative Code
(F.A.C.), under revision to 16B-36 F.A.C.

Chapter 17-312, F.A.C., covers
wetland resource permitting. Chapter
17-2, F.A.C., covers air emissions
regulations. Chapter 17-660, F.A.C.,
covers industrial wastewater discharges.


REGULATIONS:


Florida Administrative
Chapters 18-2 and 18-21
management and sovereignty
State's Submerged Lands.


Code,
cover
of the


MINERAL EXPLORATION:

Lease Requirements:

A lease (a nonexclusive use
agreement from the DEP Division of
State Lands) is required for mineral
exploration and development. Applica-
tions for leases of state lands are made
to the Bureau of Land Management
Services, Division of State Lands, DEP.
A public hearing is required and a
competitive, sealed bidding process is
used for awarding leases (Chapter
253.54, F.S.).

Leasable Submarine State Lands:

The Board of Trustees (Trustees)
of the Internal Improvement Trust Fund
(the Governor and Cabinet) may sell or
lease any mineral, timber or water in, on,
or under, any land titles in the state.
Currently however, in addition to the off-








shore lands leasing prohibition, sale or
lease of hard-surfaced beaches that are
used for bathing or driving and
contiguous areas out to a mean low-
water depth of three feet and landward
to the nearest paved public road is also
prohibited by the state (Chapter 253.45,
F.S.).

On the Florida Gulf coast, state
lands extend 3 leagues (approximately
10.36 miles) offshore, while on the east
coast of Florida they are designated as
extending 3 miles offshore. The dividing
line between these two designations falls
at the end of the Florida Keys. At this
time, the lease of offshore state lands for
oil and gas exploration will not be
considered, and permits for exploration
or for drilling will not be considered
except for those leases that were
entered into before June 7, 1991
(Chapter 377.24, F.S.).

In addition to the above
restrictions on mineral production on
state-owned submerged lands, Trustees
Action 124-89 prohibits seismic activities
using explosives on the sovereign waters
of Florida. This action also prohibits
drilling for, exploring for, or producing
mineral resources from, structures
located on the Florida's sovereign
waters. Sovereign waters include bays,
estuaries, freshwater lakes, rivers and
streams. Permits issued by the Trustees
for geophysical or seismic exploration
on, over or beneath sovereign waters
cannot be construed to imply consent by
the Governor and Cabinet for future
exploration or production of mineral
resources from these sovereign waters.
Chapters 377.22, 377.24, 377.2424, and
377.2425, F.S. also address permitting of
geophysical activities and prohibit the
exploration for oil and gas in tidal waters
and on hard-surfaced beaches.


Exploration and Mineral Production
Permits, and Coastal Consistency
Requirements:

Once a lease has been obtained,
an oil and gas exploration permit is
required as described in Chapters
377.24 and 377.241, F.S. The permit is
for one year and may be renewed for a
second year. A bond or other form of
security is required (Chapters 376.40
and 377.22, F.S.). Exploration, develop-
ment and production also require
wetland resource permits from DEP
under Chapter 403.918, F.S., and may
require wastewater discharge and air
emissions permits under Chapter
403.087, F.S.

Federal permits and licenses
required for drilling and mining on public
lands must be reviewed for consistency
with the state's coastal management
program (Chapter 380.23, F.S.).
Typically, this review is conducted in
conjunction with the necessary state
permits identified above. The federal
consistency review involves the
Executive Office of the Governor and the
appropriate state resource agencies to
ensure the protection of all living and
non-living coastal resources.

A Development of Regional
Impact (DRI) is also required by DCA
(Chapter 380.06, F.S.) if mining would
have a substantial effect on the health,
safety or welfare of citizens in more than
one county.

Chapter 403.918, F.S. sets forth
criteria for permitting Dredge and Fill
activities in wetlands. Mining and oil and
gas exploration and development
projects in wetlands must not violate
state water quality standards and must
preserve fish and wildlife habitats,








marine productivity, navigability, and
historical and archeological resources.

Chapter 679.402, F.S. describes a
sufficient financing statement which must
accompany a security agreement
necessary for minerals mining or oil and
gas production.

Royalty Payments:

If offshore-mining were to
commence after appropriate exploration,
the Board of Trustees would determine
in advance, royalty amounts, (by statute-
never less than one-eighth, in-kind or in-
value, Chapter 253.53, F.S.). The Board
would also determine a definite rental
rate, which would increase annually after
the first two years upon lands not
developed in good faith, to secure
production in paying quantities (Chapter
253.53, F.S.). The Board could, at its
discretion, incorporate within the terms
of any lease provisions for unitizing. The
Board would specify in each lease, in
clear and precise terms, the particular
minerals for which the lessee is
permitted to drill for (or mine), and the
manner in which the minerals could be
extracted (Chapter 253.45, F.S.).

Current Activities:

No offshore minerals are currently
being mined, with the exclusion of
movement of offshore sand and
sediments, for beach nourishment and
inlet dredging projects. Protection and
conservation of Florida's coastal
environment and coastal zone natural
resources are paramount considerations
in assessing proposed mineral
exploration plans. Because of these
environmental and economic
considerations, the State currently
considers habitat preservation, fishing,


boating, and recreation as primary uses
of its marine resources.

BEACH NOURISHMENT PROJECTS:

Florida has a long history of
dredging sand and shell for beach
nourishment. Since 1965, 24 beach
restoration projects have been carried
out along 85 miles of Florida beaches.
By the end of 1993, three new beach
restoration projects will have been
completed along 19 miles of beach.
Beach construction projects are
considered on a site-by-site basis with
environmental, engineering, geologic,
social, and economic considerations
being evaluated for each site before
state authorization or funding is granted
and before such projects are subjected
to the more detailed review inherent in
the environmental permitting process.
This permitting process includes the
Department of Environmental Protection
Water Quality Certification and Coastal
Construction Control Line permit under
the provisions of Chapter 16B-41, F.A.C.,
"Rules and Procedures for Application for
Coastal Construction Permits". Rule
16B-41, F.A.C., is currently being
revised; it will become Rule 16B-36,
F.A.C.. Beach renourishment also
requires a wetland resource permit from
DER under Chapter 403.918, F.S.

Beach restoration and
nourishment projects are funded in part
by state appropriations which can
account for up to 75% of the non-federal
share of project planning and
construction costs under the provisions
of Chapter 161.101, F.S.. The local
share of project planning and
construction cost may be derived from
the Tourist Development Tax, an optional
county tax on living quarters rented for
six months or less (Chapter 125.0104,









F.S.). The U.S. Army Corps of
Engineers is involved in most of Florida's
beach restoration and nourishment
projects (DNR authority to work with the
Corps is given in Chapter 161, F.S.).
Federal funding for each project varies,
depending on such criteria as public
access to the area, the proximity of the
eroding beach to Corps navigation
projects, degree of upland development,
etc.


CONCLUSIONS

Current policies preclude lease of
offshore submerged state-owned lands
for mining or oil or gas recovery.
Holders of previously purchased offshore
land leases must satisfy the require-
ments of the Florida Administrative
Code, Florida Statues, and the Federal
Coastal Zone Management Act to gain
permission to recover oil or gas on these
leases.

Beach construction projects are
considered on a site-by-site basis with
environmental, engineering, geologic,
social, and economic considerations
being evaluated for each site. Since
1965, 24 beach restoration projects have
been carried out along 85 miles of
Florida beaches. By the end of 1993,
three new beach restoration projects will
have been completed along 19 miles of
beach, and other such projects are
planned.


REFERENCES

Chapters 16B-41, 16C-25 through 16C-
30, 18-2, 18-21, Florida
Administrative Code.

Coastal Zone Management Act, 1972,
(16 U.S.C. ss. 1451-1564)

Department of Natural Resources,
Division of Beaches and Shores,
Office of Beach Management,
under revision, 1993, Chapter
16B-41, will become 16B-36.
Rules and Procedures for
Application for Coastal
Construction permits.

Division of Statutory Revision of the Joint
Legislative Management
Committee, 1992, Supplement to
Florida Statutes 1991, Volumes 1
and 2, Specific Chapters: 161,
161.1101, 253.45, 253.53, 253.54,
253.55, 376.40, 377.22, 377.24,
377.241, 377.2424, 377.2425;
State of Florida, publisher.
Available from the Law Book
Distribution Office, Room LL-14,
The Capitol, Tallahassee, Florida,
32399-1400, (904) 488-2323.

Division of Statutory Revision of the Joint
Legislative Management
Committee, 1991, Florida Statutes
1991, Volumes 1-4, Specific
Chapters: 125.0104, 163.3177,
163.3184, 380.06,380.22, 380.23,
403.087, 403.918, 679.402; State
of Florida, publisher. Available
from Law Book Distribution Office,
Room LL-14, The Capitol,
Tallahassee, Florida, 32399-1400,
(904) 488-2323.