Section 589.301 - Arctic offshore projects(a) The term Arctic offshore projects as used in § 589.205 means projects that have the potential to produce oil in areas that- (1) Involve drilling operations originating offshore, and(2) Are located above the Arctic Circle.(b) The term Arctic offshore projects as used in § 589.205 does not apply to horizontal drilling operations originating onshore where such drilling operations extend under the seabed to areas above the Arctic Circle.