Resource Development Council
 
 

Shell wins tentative approval for OCS drilling

Shell has received tentative approval of its two-year drilling program in the Beaufort Sea starting next summer, but environmentalists are likely to challenge the program in court.

The Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) has made a finding of no significant impact for Shell’s plan to drill two wells in its Sivulliq prospect and two wells in its Torpedo prospect on the west side of Camden Bay, which is east of Prudhoe Bay and offshore the North Slope.

“The conditional approval of our plan of exploration is welcome news and adds to our cautious optimism that we will be drilling our Alaska leases next year,” said Shell spokesman Curtis Smith. “We believe BOEMRE was thorough in its scientific and technical analysis of our plan, and we look forward to continued progress as we pursue the permits necessary to drill.”

Shells still needs multiple authorizations before it can commence drilling, including an Environmental Protection Agency air quality permit for its drilling vesssel and fleet. A draft permit was released in late July for public review. The company’s Arctic offshore air permits have been the subject of multiple appeals over several years. As part of its analysis, BOEMRE has concluded that there is no likelihood of a very large oil spill from a well blowout during Shell’s operations. In its findings, BOEMRE noted Shell’s extensive up-to-date spill prevention and response techniques, the small number of planned wells, and the very low incidence of blowout events.

Michael Bromwich, BOEMRE’s director, said the agency is basing its decisions surrounding energy exploration and development in the Arctic on the best scientific information available. “We will closely review and monitor Shell’s proposed activities to ensure that any activities that take place under this plan will be conducted in a safe and environmentally-responsible manner,” he said.

Shell spokesman Smith said Shell would employ an oil spill capping system that would capture hydrocarbons at the source “in the extremely unlikely event of a shallow water blowout.” He also said the company would employ world-class technology to ensure a safe exploration program that would have the smallest possible footprint on the environment and no negative impact on subsistence hunting activities.

BOEMRE is expected to issue a decision on Shell’s development plan for the Chukchi Sea in October. The company is hoping to begin drilling in the Chukchi next summer.

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