Section 5: Discharges from Onshore and Offshore Facilities, including offshore and directional drilling (Annex 8)

Observation

Considerable public controversy has arisen over potential environmental risks from U.S. and Canadian offshore and directional oil and natural gas drilling in the Great Lakes. To date, there have been few reported problems. However, this matter does relate to Annex 8 of the Great Lakes Water Quality Agreement. (In the U.S., Congress has authorized a comprehensive U.S. review of oil and gas drilling practices in the Great Lakes basin.)

Discussion

Annex 8 includes definitions and principles as well as programs and measures to prevent discharges of oil and other substances into the Great Lakes system from drill rigs, pipelines, wells and other on or offshore facilities.

Jurisdictional Policies

Canadian Federal Government

Generally speaking, drilling in the Great Lakes falls within provincial jurisdiction.

U.S. Federal Government

The U.S. Environmental Protection Agency and the U.S. Army Corps of Engineers in a 1982 joint report concluded that the development of natural gas from beneath the U.S. portion of Lake Erie can be done safely as long as current regulations governing the activity are strictly followed.

In November 2001, however, President Bush signed into law a two-year ban on any new drilling operations in the U.S. portion of the Great Lakes. The law also calls for a comprehensive study by the U.S. Army Corps of Engineers on all potential environmental impacts that drilling operations could have on the Great Lakes. This study has not yet been funded.

Actions taken by state and provincial governments with respect to drilling are shown in the table below.

State/Province	Offshore Drilling	Directional Drilling	Comments
Michigan	Banned	Banned	Michigan has been leasing bottom- lands since the 1940s. In 1979, the first well was drilled beneath the Great Lakes. There were 6 produc- ing gas wells and 1 oil well.
New York	Under 2 year	Under 2 year	New York allows leasing but no federal federal drilling has been undertaken. moratorium moratorium
Ohio	Under 2 year	Under 2 year	Governor Bob Taft has stated that federal federal he will not support any move moratorium moratorium to allow drilling in Ohio's section of Lake Erie.
Pennsylvania ake Erie.	Under 2 year	Under 2 year	Pennsylvania signed the original federal federal Great Lakes Governor's memoran- moratorium moratorium dum of understanding in 1985 to disallow any offshore oil drilling in L
Ontario	Permitted	Permitted	2,500 offshore gas wells have been (gas only) drilled in Lake Erie since 1913. Ontario does not support the banning of environmentally sound directional drilling under the bed of the Great Lakes.
The following jurisdictions have little, or no offshore oil and gas potential or drilling targets
Indiana	Under 2 year	Under 2 year	Drilling permits subject to review federal federal by Indiana Natural Resources moratorium moratorium Commission.
Illinois	"	"	No drilling is pending beneath Lake Michigan and no potential targets are identified.
Minnesota	"	"	Has no oil or gas production therefore no statute related to directional drilling.
Wisconsin	"	"	Has no oil or gas production therefore no statute related to directional drilling.
Quebec	Not applicable	Not applicable

Other Stakeholders

The International Association of Great Lakes and St. Lawrence Mayors passed a resolution calling for a moratorium on Great Lakes oil and gas exploration, development and extraction.

The Chippewa Ottawa Resources Authority passed a resolution stating its unqualified opposition to any oil drilling activities to exploit oil deposits under the Great Lakes.