It's been over a month since a judge's order shut down public access to most internet web sites and e-mail run by the US Department of the Interior. US District Judge Royce C. Lambert ordered the shutdown in response to claims of Interior's lax web site security that came in recent testimony in a 5-year-old lawsuit by Indian tribes that allege the department mishandled billions of dollars in royalty trust funds.
As the weeks have dragged by, the order has become a growing nuisance for oil companies large and small.
Some companies that drill on federal lands say they are losing money because they have to spend more staff time filling out required paperwork.
"Most communication between industry and regulators is done online, so there are problems," said an industry lobbyist with several clients who drill on public lands.
Phones and faxes
An obvious solution is to just pick up a phone or use a fax machine. But that doesn't solve the problem completely, because many of the agencies industry deals with routinely such as the Bureau of Land Management, which oversees onshore leases, or the Minerals Management Service, which collects royalties and administers offshore leases, say they suffer from chronic understaffing.
"The job is still getting done, just as it always got done before computers and e-mail. It's just taking longer," said a veteran Interior employee.
There could even be delays in bringing on new production in the US, department officials warn. Environmental groups want to extend comment periods on various environmental impact studies so they have more time to acquire huge documents that are difficult to fax or mail.
BLM is considering several petitions that would reinstate oil and gas leases in Mississippi, Montana, and Wyoming. The agency is also reviewing a proposal from a gas producers consortium that includes BP PLC, ExxonMobil Corp., and Phillips Petroleum Co. to conduct trials of trenching machines on about 37 acres of public land near Fairbanks, Alas., for new pipeline technology. And MMS is preparing an environmental impact statement on two proposed oil and gas lease sales in the Cook Inlet area in Alaska.
Regulators frustrated
Regulators say they are frustrated too. Interior employees are even forbidden from using personal e-mail to conduct business. Officials won't predict when electronic communications will resume normally but say they are working "as fast as we can" to fix the security problems that led to the web shutdown.
One positive development has been the reconnection of the US Geological Survey site. Within industry USGS is known for its oil and gas reserve estimates. But the agency's data also help the government monitor earthquakes, floods, and volcanic eruptions.
MMS meanwhile hopes to convince the judge soon that its site is secure. Without the internet, MMS has been struggling to finalize a new royalty payment system that is web-based. Companies also say they need more guidance on the agency's new oil valuation rule. MMS plans production audits later this year, but web problems could delay the process further.