| A review of top Arctic Oil and Gas events of the past month. |
|
|
|
|
October 3rd – Bureau of Ocean Energy Management approves Shell oil’s Supplemental Environmental Impact Statement (SEIS) for drilling in the Chuckchi Sea. This opens a public comment period and official agency review of Shells plan. A decision on which is due December 7th.
A result of the approval is that the Federal Courts reaffirm Lease Sale 193 and thus the administrative process of permitting can now move forward. Shell has already acquired approval for operations in the Beaufort Sea but needs to collect about 35 permits from federal agencies before exploration will be allowed. It is hoped and expected to acquire all permits in the next few months to allow a June start date in 2012. October 25- The State of Alaska added 200,000 acres to its planned December 7th lease sale of the Central Arctic. The lease sale will be the largest in the US this year. It will be entirely on State land and waters between NPR-A and ANWR and up to three miles offshore of those areas. The Governor of Alaska is hoping to add 1 million barrels a day of production to the ailing Trans Alaska Pipeline from production on leases. October 26th – District Court in Alaska lifts injunction against permitting for Lease Sale 193 in the Chuckchi Sea. Environmental groups initially asked for and won an appeal against the lease sale from the courts. BOEM worked for the last year to fulfill three requirements the court asked for to clarify the EIS for the lease sale and thus was able to get the injunction lifted. October 30th – Shell awarded Air Quality Discharge permits by EPA for second of two rig ships slated for Arctic OCS exploration. The permits were previously appealed to the EPA Board of Appeals by environmental groups angling to stop exploration. The Board of Appeals upheld the permits on conditions certain data and environmental studies were conducted by the agency. These were completed over the last year November 8th – Secretary Salazar announces revision of the Alaskan OCS 2012-2017 lease sale program. The 5 year plan covers the entire nation but addresses 3 sales in Alaskan waters. The Secretary proposes Alaskan lease sales only after environmental evaluation of the areas. Cook Inlet will get a potential lease sale in 2013. Beaufort Sea lease sale will take place potentially in 2015 and the Chuckchi Sea area sale will be in 2016. Senator Mark Begich of Alaska wrote to Salazar urging concrete dates for government decisions on OCS exploration. Multiple years of delay waiting for permits from Dept. of Interior agencies have resulted in multiple misses in ramp up times and summer drilling windows for industry. November 11th – Exxon Mobil Corp gets its draft environmental impact statement (EIS) from the US Army Corp of Engineers for the long awaited Point Thomson field. Point Thomson is said to contain ¼ of North Slope natural gas and hundreds of millions of barrels of gas condensates, yet no production has taken place due to the lack of a gas pipeline. The field is the closest field to the ANWR 10-02 border and lessens the distance for feeder pipelines and roads from ANWR to be built to connect it with the Trans Alaska Pipeline. Development of Pt. Thomson makes 10-02 development that much more economical and possible as roads and infrastructure will now lay just on the Canning River 10-02 border. Oil condensates will likely be produced from the field and sent the 22 miles west to Prudhoe Bay for processing. Gas condensates are deep underground and require highly specialized infrastructure to deal with their extreme pressures. The EIS can be viewed here: http://www.pointthomsonprojecteis.com/documents.htm November 11 - HR. 3407 The Alaskan Energy for American Jobs Act is introduced by Chairman Doc Hastings of the Natural Resources Committee. The Act calls for the opening of the 10-02 Area of ANWR to oil and gas exploration. It limits the footprint to 10,000 acres per 100,000 acres leased and splits production and leasing royalties with the State of Alaska 50-50. The bill is the 11th bill to be introduced this congress with a provision for the opening of the coastal plain of ANWR. ANWR is the single most consistently legislated single energy issue in American history often drafted in 18 or more bills per Congress. November 15- US Fish and Wildlife Service closes public comment period for ANWR’s Comprehensive Conservation Plan Draft. The CCP Draft will now be reviewed by the Service following reading of public comments. A final plan will be released in June 2012. In the CCP Draft the USFWS made 6 proposals for changes in land management for the refuge, two of which called for Wilderness status for the 10-02. Wilderness land status would make it nearly impossible for oil and gas exploration to take place. Alaska’s leaders and Congressional delegation blasted the USFWS for including Wilderness proposals stating it violated ANILCA, the bill that created ANWR. Six regional town hall meetings took place in Alaska to hear public comments on the CCP. The CCP holds no weight of law and is only a recommendation to the Secretary of Interior and President. Congress retains final authority on land designation within ANWR. November 15 – Charlotte Brower sworn in as Mayor of the North Slope Borough. Jack Adams, former President of Arctic Slope Regional Corporation made chief of staff. Mayor Brower asks for native voice in federal and state oil and gas decision making process for the Arctic. November 16- BOEM published Shells 2012 Chuckchi Sea lease plan signaling a review of the plan has been completed and deemed sufficient and a public comment period can commence. BOEM stated it wanted all comments by December 7th. Shell completed a spill response plan and an Arctic capping and containment system plan for the BOEM which is still under review. A final determination by the agency is due December 16th. Shell plans 3 wells in the Chuckchi per year beginning next summer. Wells will be drilled about 80 mile offshore in the Burger Prospect. The EPA has issued air quality control permits to Shell for operations in both Beaufort and Chuckchi Seas but environmental groups have appealed to stop these. At least seven months are needed to ramp up ships and infrastructure to carry out operations in the Arctic. Thus to make summer 2012 window Shell will need to hear from the courts and federal agencies soon in order to make the decision to proceed. November 16 – Environmental groups ask Alaska District Court to repeal the BOEM Chuckchi Sea lease sale Environmental Impact Statement. The original EIS appeal from 2008 was upheld on two points in July 2010 by District Judge Beistline. Once correction and additions in the EIS had been made by BOEM as the ruling required on Oct 3rd of this year the court allowed federal progress on permitting of the leases to continue. The new complaint by environmental groups states that the additions by the BOEM in its SEIS do nothing to address the decision to hold the lease sale to begin with. Also that consequences of global warming need to be taken into account. Due to the fact that the lease sale has already gone through review by BOEM and now the District Court it is highly likely that it will be allowed to continue. Lease sales are generally conducted after Presidential and Congressional mandate to do so. The Secretary of Interior has the power to conduct those lease sales as ordered by Congress. November 17 – Speaker John Boehner of the House of Representatives announces an upcoming American Energy & infrastructure Jobs Act HR. 7 The bill will be formed over the next few weeks and couple with HR. 3407 The Alaskan Energy for American Jobs Act. Two other bills at the moment are set to join the ANWR provision in creating HR. 7. November 18 – House of Representatives Natural Resources Committee holds back to back hearings on ANWR. Chairman Doc Hastings first heard testimony on HR 3407 The Alaskan Energy for American Jobs Act calling for the opening of the 10-02 Area of ANWR to oil and gas exploration. The committee heard testimony from 3 pro drilling and 2 anti drilling witnesses. The second hearing later that day was on ANWR as a general topic and was not in support of specific legislation. The hearing spawned from a minority rule proceeding from a previous ANWR hearing in October allowing it to call its own witnesses on the topic. With discussion of ANWR exploration complete it will be up to the Committee to mark up HR. 3407 and proceed for a vote. This will be done in conjunction with a move by Speaker Boehner to bring a set of energy bills under the number HR. 7 to the floor for a House vote possibly before the new year. November 25th – Village of Kivalina in NW Alaska opens up lawsuit against Exxon with the San Francisco 9th District Court. Lawsuit claims Exxon and other oil majors are responsible for global warming due to carbon emissions and thus must pay for the relocation of the Village of Kivalina due to erosion of the spit of land Kivalina sits on from Arctic storms. The plaintiffs claim the storms are more severe than normal and this is due to global warming. US Army Corp of Engineers estimates the move to cost between $95- $400 million. Kivalina has a population of 375 people. A previous lawsuit by villagers in Washington DC’s District Court covering the same issue was thrown out. November 29 – Environmental groups ask for appeal of Clean Air Act permits issued by EPA to Shell Oil for the use of Kulluk drill ship in the Arctic. The drill ship along with the Noble Discoverer will be used by Shell next summer in the Beaufort and Chuckchi Seas should it be able to acquire all its federal operating permits. The Noble Discoverer was issued its clean air discharge permits last month after over a years delay caused by a similar appeal from environmental groups. The EPA Board of Appeals ruled in favor of Shell last month and will likely do the same with this new appeal. Environmental groups are also challenging in court the Bureau of Ocean Energy Management’s (MOEM) decision to approve Shell’s Beaufort Sea operational plan. Oil companies must follow strict regulations and planning and operational oversight in drilling for oil on or offshore. Federal processes, studies and safeguards are required during the permitting process and once they have been achieved by applicants federal regulators will issue permits. December 7 – Alaska Division of Oil and Gas will hold the largest lease sale in America this year covering the Central Arctic area. The sale will consist of 1,225 tracts from 640 to 5,760 acres on onshore and offshore areas on State acreage between the Canadian border and Point Barrow. The prime land areas will be between ANWR and the NPR-A border and south to the Brooks Range. Bidding will begin at 9am in Anchorage. The hope is to increase production of oil from the Arctic to stave off decrease of oil in the Trans Alaska Pipeline System which is operating a less than 1/3rd capacity and falling. Closure of the line would strand all oil and gas in the Arctic. |
| < Prev | Next > |
|---|
Alaskans Strongly Support ANWR Development
Over 78% percent of Alaskans support exploration and production on the Coastal ...
ANWR Oil – Politics and Logistics
Many in America have felt the pain of high gasoline prices recently and often di...
Facts about the Arctic National Wildlife Refuge
The U.S. Department of Energy has a good primer on the Arctic National Wildlife ...
Today's drilling leaves a small footprint
New oil development technology, developed over 30 years on Alaska's North S...
Hastings and Boehner Push ANWR
Washington DC- House Natural Resources Committee Chairman Doc Hastings and...
Arctic OCS Exploration Hopeful
With the Environmental Protection Agency air discharge permits in hand, Shell oi...
Jay Leno on drilling in ANWR
Jay Leno takes the Democrats to task for blocking oil drilling in the Arctic Nat...
Alaska Speaker and Majority Delegation rally for ANWR
Alaska Speaker of the House and a Majority delegation visited Washington DC to r...
|
“Developing ANWR offers an opportunity to reduce our dependence on foreign oil and improve our national security,”
said U.S. Senator Lisa Murkowski (R-AK).