American Oil and Gas Reporter - August 2016 - 19

The proposed rule may be accessed at
www.phmsa.dot.gov/staticfiles/PHMSA/
DownloadableFiles/Files/HM_251B_OS
RP_NPRM_advanced_copy.pdf. ❒

Associations Skeptical
Of Arctic Drilling Rule
WASHINGTON-Final safety
regulations for drilling in the U.S.
Arctic are being greeted with skepticism
by industry spokesmen.
The Bureau of Ocean Energy
Management and Bureau of Safety and
Environmental Enforcement on July 7
announced final regulations for drilling
activities on the U.S. Arctic Outer
Continental Shelf.
According to the agencies, the rules
require operators to submit integrated
operations plans addressing all phases
of their proposed exploration programs
prior to filing exploration plans with
BOEM. The regulations also require
companies to have the ability to deploy
source control and containment
equipment such as capping stacks and
containment drones, according to a
Department of Interior announcement.
In addition, DOI says, operators must:
* Have access to a separate rig able
to timely drill a relief well in the event
of a loss of control;
* Have the capability to predict,
track, report and respond to ice
conditions and adverse weather events;
* Effectively manage and oversee
contractors; and
* Implement oil spill response plans
that account for the Arctic OCS operating
environment, and are supported with the
necessary spill response equipment,
training and personnel.
Published reports say the new
regulations, which are available at
www.bsee.gov/arcticrule/, mimic the
requirements regulators spelled out for
Royal Dutch Shell last year.
"Release of the Arctic rule provides
a thread of hope than an Arctic oil and
gas program will move forward as DOI
finalizes the 2017-22 five-year (OCS)
leasing plan," responds National Ocean
Industries Association President Randall
Luthi. "Beyond that, however, the rule
may not provide much optimism to the
offshore industry other than finally
knowing the regulatory requirements. It
does not accurately reflect industry
capabilities, and includes unnecessary
requirements such as same-season relief
wells, which may not be needed
because of the availability of new
response and containment equipment."

American Petroleum Institute
Director of Upstream and Industry
Operations Erik Milito adds, "This is an
unfortunate turn by this administration,
and will continue to stifle offshore oil
and gas production. Prescriptive
regulation may inhibit development of
new, improved technologies by
suppressing the potential opportunity
that drives advancement."
That is the point, suggests the Institute
for Energy Research. Says President
Thomas Pyle, "The Obama administration
issues rule after rule under the guise of
environmental protection or safety, but in

reality, its objective is to keep our
resources in the ground. This rule is no
different, as it is designed to make the cost
of doing business so expensive that
companies can't economically produce
our Arctic resources." ❒

Federal Court Upholds
USFWS' Designation Of
Critical Habitat For Frog
NEW ORLEANS-A federal court
has upheld the U.S. Fish & Wildlife

AUGUST 2016 19
American Oil and Gas Reporter - August 2016

Table of Contents for the Digital Edition of American Oil and Gas Reporter - August 2016
