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Administrative Law. Why and how do agencies regulate? With specific reference to the BP situation . . . What are the goals/purposes of the MMS?.
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Administrative Law Why and how do agencies regulate? With specific reference to the BP situation . . .
What are the goals/purposes of the MMS? • To make the OCS available “for expeditious and orderly development . . .” – OCSLA, 43 USC § 1332. http://www.boemre.gov/aboutmms/pdffiles/ocsla.pdf • MMS has power to grant drilling leases or permit geological exploration and to collect/disperse revenues from same – OCSLAat §§ 1334-35, 1337, 1338, 1340; FOGRMA, 30 USC §§ 1701, 1711. • Unconditionally? • Leasing, Exploration & Development must be done in a manner that: • Protects the environment – OCSLA at §§ 1332(3), 1344, 1346, 1348, 1351. • Is consistent with other federal laws (e.g., NLRA, antitrust) – OCSLAat §§ 1333, 1337(c) • Cooperates with (and aids) states – OCSLA at §§ 1332, 1345; FOGRMA, at § 1732 • Protects national security - OCSLA at § 1337(p)(4) • Considers economic, social and environmental values - OCSLA at § 1344
What powers/obligations does the MMS have allowing it to meet its goals/obligations? Power to issue/cancel/suspend leases per guidelines in statute • Power to issue rules regulating leases per guidelines in statute Power to approve geological/geophysical exploration • Approval must be withheld unless exploring party files a “plan” (some exceptions) with specific details of exploration • Power to issue regulations requiring permits (with specific conditions re environment and qualifications) Tangential powers/obligations • Suspension of operations due to national security & other threats • Must conduct environmental studies of any lease area • Consider studies in enacting regs and lease conditions • Study/enact regs re safety of working conditions • Enforcement of safety/environmental regs • Inspections, investigations, subpoenas, depositions, civil penalties, criminal penalties, injunctions
Why should an agency (MMS) regulate rather than leaving mining operations unregulated? • What kinds of goods are minerals? • Absent regulation what can unregulated acts by private actors do?
Did MMS adequately perform its obligations? Why or why not? • Regulatory capture - when a regulatory agency created to act in the public interest instead acts in favor of the special interests that dominate in the industry or sector it is charged with regulating. • Public interest theoristsbelieve that regulatory capture involves regulatory failure because public officials lose focus on their purpose and act in favor of a regulated group, which produces negative externalities. • Public choice theoristsbelieve that regulatory capture is an inevitable occurrence when groups/individuals with a high-stakes interest in the outcome of regulatory decisions focus their resources to gain the outcomes they prefer, while members of the public, who have only a tiny individual stake in the outcome, ignore the issue altogether. The high-stakes group "captures" influence with the regulatory agency, so that the preferred policy outcomes of the special interest are implemented. • Is MMS/industry totally at fault for such capture?
What alternatives to agency regulation are there? How could we deal with disasters other than having agencies regulate? • Civil litigation • Note – OCSLA & OPCA of 1990 allows for civil suits. • Downsides? • Congress (more accountable because elected) could do more of the heavy lifting on regulation via laws • Downsides?