The Interior Department said the federal Bureau of Ocean Energy Management
has corrected flaws in an environmental review that was successfully challenged
in court by environmental and Alaska Native groups.
Resolution of the lawsuit was necessary before Royal Dutch Shell PLC, which
drilled in the Chukchi in 2012, could return to its leases in 2015. Shell has
filed a 2015 drill plan that calls for two vessels to drill during the short
summer open water season but has said a decision to move forward will depend on
getting permits and legal clearance.
In the announcement, Interior Secretary Sally Jewell said the Chukchi has
substantial oil and gas potential as well as sensitive marine and coastal
resources used by Alaska Native communities for subsistence hunting and
harvests. BOEM's revised environmental review is a major step toward resolving
the 2008 oil and gas leases that have been tied up in the courts for years, she
said.
Shell was the leading bidder in the 2008 sale, spending $2.1 billion on
Chukchi leases.
However, environmental and Alaska Native groups successfully sued, claiming
the former Minerals Management Service based its environmental review of the
sale on projected extraction of 1 billion barrels of oil. The groups said
development was likely to be far more widespread and the 9th Circuit Court of
Appeals agreed.
A supplemental review released for public comment in November assumed an
extraction of 4.3 billion barrels over the life of the leases and far greater
potential impacts.
Leases were suspended after the court decision. The agency has to wait until
30 days after the revised environmental review is published before it can make a
final affirmation of the sale. Environmental groups could sue the agency over
future
Environmental groups bitterly oppose Arctic offshore drilling and say oil
companies have not proven they can clean up a spill in remote
waters.
Jewell last month removed five
Mike LeVine, an attorney for Oceana, said the Obama administration appears to
take "take one step forward and two steps back" in Arctic waters.
Shell drilling in 2012 faced significant challenges and the company was not
allowed to drill into oil-bearing deposits.
A Shell drill barge used in the Beaufort Sea, the Kulluk, broke free as it
was being towed across the