Shell gets conditional OK for Beaufort drilling 
Dan Joling/The Associated Press
Published Monday, October 19, 2009
ANCHORAGE, Alaska - A federal agency announced approval Monday of a plan
by Shell Offshore, Inc.'s to drill exploratory wells next year on two
leases in the Beaufort Sea off Alaska's north coast - a decision that
environmental groups contend ignores threats to the Arctic environment
and its wildlife.
The Minerals Management Service said Shell must meet certain conditions,
including federal air and water quality rules and marine mammal
protection requirements.
Shell Alaska vice president Pete Slaiby called it a positive step toward
drilling next year.
"We sincerely believe this exploration plan addresses concerns we have
heard in the North Slope Communities which have resulted in the programs
being adjusted accordingly," he said in a prepared statement.
Environmental groups claim the Arctic and its marine mammals already are
under stress from global warming and the loss of sea ice.
"Obama could have installed Sarah Palin as Secretary of Interior and the
polar bear and Arctic ecosystem would be no worse off than it is under
Ken Salazar," said Brendan Cummings, an attorney for the Center for
Biological Diversity, which successfully petitioned to list polar bears
as threatened under the Endangered Species Act.
Shell obtained the two leases during sales in 2005 and 2007. The sales
were included in the 2002-2007 five-year oil and gas leasing program and
were not affected by a court decision on the current leasing program,
which sent the 2007-2012 program back to MMS for additional analysis.
According to the agency, Shell's plans include a mid-drilling season
break and removal of the drill ship to accommodate fall subsistence
bowhead whaling by the Inupiat Eskimo villages of Kaktovik and Nuiqsut.
Operations would be suspended Aug. 25 and vessels would either move to
the northwest during whale hunts or would leave the Beaufort Sea
entirely. Drilling activity could be resumed after completion of the
subsistence hunts possibly as late as Oct. 31, depending on ice and
weather.
Drilling operations are planned using the Frontier Discoverer, a drill
ship that MMS said has been retrofitted and ice-reinforced for operations
in Arctic waters.
The two leases are about 16 and 23 miles north of Point Thompson.
The Beaufort Sea is estimated to contain 8.22 billion barrels of oil and
27.64 trillion cubic feet of natural gas, according to MMS.
Alaska's two U.S. senators praised the announcement. Republican Lisa
Murkowski called it an encouraging sign that Alaska's oil and natural gas
resources will continue to play a major role in America's energy
security. Democrat Mark Begich said the decision showed that Interior
Secretary Salazar and the Obama Administration recognize the importance
of Alaska's abundant offshore oil and gas resources, including safeguards
for important subsistence resources.
But Cummings of the Center for Biological Diversity said petroleum
companies have not proved they can clean up a spill in Arctic conditions,
especially broken ice. Boom and other measures used to contain oil in
open water were ineffective in tests off Alaska's coast. Just getting
equipment to a catastrophic spill in the Beaufort, which has few support
facilities and some of the worst weather and light conditions in the
world, would be challenging.
"Survival of the polar bear in the Beaufort Sea is already tenuous,"
Cummings said. "Any additional stress such as the noise disturbance from
the drilling itself and the risk of a catastrophic spill takes us in a
wrong direction."
Shell Alaska spokesman Curtis Smith said in an e-mail response to
questions that the company will meet all requirements laid down by state
and federal law.
"Shell has assembled the most environmentally sensitive and thoroughly
responsible exploration plan in history," he said. "That includes a
world-class oil spill response fleet that would be on-site 24/7 in the
extremely unlikely event of a spill."
He said Shell and industry partners continue to make advances in spill
prevention and response technology.
"Recent trials in Norway again substantiate the majority of oil spilled
on ice-covered waters can be removed," he said.
David Dickson of the Alaska Wilderness League in Washington, D.C., said
MMS has been premature and less than thorough in its environmental
review.
Spokesmen for Oceana and Ocean Conservancy said MMS approved Shell's
Beaufort plan despite a substantial and recognized lack of science or
planning. The approval continues failed policies that led federal courts
to invalidate the approval of the current five-year leasing program, the
groups said.
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