Resource Development Council
 
 

Industry Digest

OCS Arctic-specific regulations released

The Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Ocean Energy Management (BOEM) have released proposed Arctic-specific regulations for future exploratory drilling activities on the Alaska Outer Continental Shelf (OCS).

The proposed regulations focus solely on offshore exploration drilling operations within the Beaufort Sea and Chukchi Sea Planning Areas. Using a combination of performance-based and prescriptive standards, the proposed regulations codify and further develop current Arctic-specific operational standards that cover all phases of offshore exploration in the Arctic, including mobilization, drilling, maritime transport and emergency response, and conduct safe drilling operations while in theater.

The proposed regulations codify requirements that all Arctic offshore operators and their contractors be appropriately prepared for Arctic conditions and that operators develop an integrated operations plan that details all phases of the exploration program for purposes of advanced planning and risk assessment.

The proposed regulations as well as a draft Environmental Assessment will be open for public comment.The public may submit comments on the proposed Arctic regulations during the 60-day comment period that begins when the proposed rule is published in the Federal Register.

RDC is reviewing the draft regulations to see what impact they could have on the economic development of Alaska’s vast Arctic resources. An action alert encouraging public comment will be released.

“Given the opposition this administration has shown so far to responsible resource development, I’m reserving judgment until it’s demonstrated that these regulations will not unnecessarily block investment,” said Senator Lisa Murkowski.

Alaska’s Beaufort and Chukchi seas contain an estimated 23.6 billion barrels of oil and 104.4 trillion cubic feet of natural gas. Dozens of wells have been safely drilled in these areas since the 1970s. Interior estimates its new proposed regulations will add up to $1.4 billion over 10 years to the cost of development.

RDC comments on Cook Inlet ITAs

RDC submitted comments to the National Marine Fisheries Service on a draft environmental impact statement pertaining to the issuance of Incidental Take Authorizations (ITA) in Cook Inlet.

ITAs are issued by the federal government to public and private sector projects and activities, authorizing temporary disturbances to protected marine species, such as the beluga whale, which is listed under the Endangered Species Act.

RDC emphasized the importance and requirement of NMFS to review the social and economic values of Cook Inlet during the EIS process.

“Just as there can be cumulative impacts on protected species, there are also cumulative social and economic impacts to Alaskans from delays, conditions and restrictions on Cook Inlet activities,” said RDC Executive Director Rick Rogers.“The food and energy security to a majority of Alaskans is dependent on the uninterrupted commerce in Cook Inlet.The EIS should fully acknowledge and evaluate indirect and cumulative impacts of any foreseen ITA delays or restrictions in Cook Inlet,” Rogers added.

Oil and gas development, commercial, sport, and subsistence fishing, mining, tourism, air freight, commercial aviation and national defense all occur in the Cook Inlet region. Thousands of jobs can be directly attributed to shipping and natural resource development in the region, and the Port of Anchorage handles 90 percent of the merchandise goods for 85 percent of Alaska’s population.The port is undergoing critical improvements to prevent severe economic disruption in the event of a catastrophic earthquake.

In addition, the nearby Port MacKenzie will soon have rail access and a study is underway on a project to ship LNG from the port by rail to Fairbanks to relieve soaring energy costs. Moreover, Cook Inlet is likely to host the terminus for the $65 billion Alaska LNG export project.

“Given the dependence we all have on the flow of goods and energy from Cook Inlet, NMFS should fully evaluate the risks to human health and safety that the delay or curtailment of ITA issuance could have on the well being of Alaskans,” Rogers said.

RDC opposes critical habitat proposal

At a public hearing in early February, RDC testified against a federal proposal to designate massive areas as critical habitat for the Arctic ringed seal. Projects Coordinator Kati Capozzi explained RDC is on record of opposing the original ‘threatened’ listing of the ringed seals due to their known abundant population.

“The ringed seal population continues to be strong, healthy, and faces no clear and present danger of suffering significant loss,” said Capozzi. “The 100-year climate modeling practice based on what could happen to a species with regard to climate change has been proven as flawed and even recently resulted in the vacated listing of the bearded seal.This same flawed science was applied to the ringed seal and has resulted in an unprecedented vast proposed critical habitat designation.”

Critical habitat is defined by the U.S. Fish and Wildlife service as a specific geographic area(s) that contains features essential for the conservation of a threatened or endangered species and that may require special management and protection.

“It is beyond unreasonable to designate what would be the U.S.’s largest critical habitat designation for a species that is experiencing a healthy and abundant population,” Capozzi testified. “Further, ringed seals and their habitats are well managed and protected by international agreements, conservation programs, and laws, including the Marine Mammal Protection Act.These and other measures are working, as is proven by their population.“

RDC is working on its formal written comments on the proposed critical habitat designation and they will be available at akrdc.org following the March 30th deadline.

Yellow-billed loon remains a candidate species

The U.S. Fish and Wildlife Service (USFWS) recently announced a delay in the Endangered Species Act (ESA) listing of the yellowbilled loon in Alaska. USFWS determined the species protection is “warranted but precluded,” leaving the loon as a candidate species.

RDC opposes the listing, noting protections for the loon are in place under a 2006 Conservation Agreement, as well as the Migratory Bird Treaty Act. RDC continues to monitor the potential unnecessary listing of the yellow-billed loon.

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