Ten US senators from five coastal states urged the US Department of the Interior to expedite consideration of shallow-water drilling permit applications and to provide adequate guidance for applicants seeking new permits. Their July 22 letter came as the US Bureau of Ocean Energy Management, Regulation, and Enforcement (BOE) described ongoing efforts to do exactly that.
Sens. Kay Bailey Hutchison (R-Tex.), Mary L. Landrieu (D-La.), Lisa Murkowski (R-Alas.), and seven other senators told US Interior Sec. Ken Salazar in a letter that June 8 and June 18 notices to shallow-water lessees about new safety and environmental requirements did not include adequate compliance instructions. Only one new shallow-water permit has been issued and "35% of the available shallow-water rigs on the [US] Outer Continental Shelf are currently without work or the guidance to ever resume that work," they said.
"We are gratified that meetings have taken place to address these ambiguities; however, every day counts," the federal lawmakers said. "Therefore, we urge DOI to take immediate action to resume and expedite the consideration and review of applications while providing applicants with an understanding of the new safety requirements. If DOI does not do so, thousands of jobs will be at risk on the OCS."
Sens. Mark Begich (D-Alas.), Thad Cochran (R-Miss.), John Cornyn (R-Tex.), Jeff Sessions (R-Ala.), Richard C. Shelby (R-Ala.), David Vitter (R-La.), and Roger F. Wicker (R-Miss.) also signed the letter.
In a July 22 statement, BOE said its director, Michael R. Bromwich, held meetings with Louisiana Lt. Gov. Scott Angele and the Shallow Water Energy Security Coalition to provide further guidance and clarity regarding compliance with new safety and environmental requirements. Additional guidance also was posted on the DOI agency's web site, it added.
Worst case estimates
It said the "frequently asked questions" section specifically discusses how operators can most efficiently satisfy requirements dealing with "worst case discharge" estimates, which producers calculate and the BOE reviews to ensure that companies' oil spill response plans are sufficient to protect coastal and environmental resources should a spill occur.
BOE said officials from the agency also discussed with shallow-water drillers steps to ensure the efficient delivery of information to the agency and timely reviews of new permit applications.
Progress is being made, but more work needs to be done, a representative of the shallow-water drillers told OGJ on July 23. "The discussions have taken place with BOE have been productive. The shallow-water drillers are still not out of the woods," said Mike Olsen, counsel at the Bracewell & Giuliani law firm in Washington. "For a new well that requires both permits, only one has been approved, which is the hang-up. Most of the other approvals have been for side-tracks and workovers.
"BOE has devoted significant time to this effort and has involved senior agency officials," he continued. "Significant work still needs to be done, but discussions have been productive. Until applications for new wells are approved, however, shallow-water producers will be in the same position, stacking their rigs and laying off workers."
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