Tag Archive | "Ninth Circuit"

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Champagne Supernova


It’s not every day (or millennium) that we get to comment on some good news on this blog, a function not of our generally misanthropic outlook on life, but rather: the fact that good examples of good news are so darn tough to come by.

But there’s just no way to pooh-pooh the breaking news today from the Interior Department. Turns out that after five years of back-and-forth in the courts, in Congress, and in and around the executive branch, Shell has finally been told that its offshore energy plan in Alaska’s Beaufort Sea is ready to go – paving the way for the company to begin developing exploratory wells next year on two leases in the area.

The Associated Press has the most thorough wrap-up:

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 … 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.

Keep in mind that these areas were first included for lease by the Interior Department way back in 2002 – and as readers of this blog should know by now, tracts don’t end up in the five-year plan by accident, not without years of pre-study, analysis and, unfortunately, litigation.

All of which is to say: It’s been a long, hard fight for Shell up here, but it seems to be one they’re willing to continue. Seriously: This is a company that has invested billions of dollars to create permanent jobs here and work with and accommodate native communities – all for the opportunity to risk even more money in the pursuit of American energy resources offshore. But no matter how hard bureaucrats in Washington or judges in San Francisco make it to do that work, these guys just keep coming back for more. Good for Shell. And good for Alaska’s Senate delegation for recognizing how good a piece of news this is:

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.

Sure, we can talk about how this is just a drop in the bucket; how so much more offshore acreage in Alaska remains under agency lock-and-key; how Shell, BP and others continue to get the run-around in the Chukchi; how the plan approved by Interior essentially forbids exploration activities for the entire months of September and October. But we won’t do that. Today’s a day to tip a cap, and so consider this a formal doff.

UPDATE: You know what they say: When it rains, it pours. Just a day and a half after Interior gave the go-ahead for Shell in the Beaufort, the agency finally came through with an announcement today that the company’s environmental plan for the Chukchi is “complete” along with it. Here’s the latest from the Anchorage paper:  

The federal Minerals Management Service this week deemed Shell Oil’s application to drill exploration wells in the Chukchi Sea next year to be complete.

That triggers a 30-day deadline for the MMS to review the plan and decide whether to approve it, reject it or require changes.

A previous Shell plan for drilling in the Chukchi was rejected by a federal judge, who ordered a new analysis of the impacts of the drilling.

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Good News, Bad News


First, the good news. Last week, a federal court issued a ruling that will allow offshore energy exploration to resume in Alaska’s Beaufort Sea. While the ruling is partially welcomed, and increased access to valuable, job-creating resources is helpful to securing our energy security and stabilizing energy prices, the court did not address the ongoing efforts to keep Alaska’s Chukchi Sea region off-limits. That’s the bad news.

Alaska’s NBC affiliate – KTUU – reported this:

A ruling Thursday by the Ninth Circuit Court of Appeals has cleared the way for Shell Oil to resume its exploration and development in the Beaufort Sea.

The court’s ruling says the Bush administration was correct in not demanding a new environmental impact assessment for the company’s drilling leases.

The suit filed by the North Slope Borough and the Alaska Eskimo Whaling Commission alleged that the Minerals Management Service was supposed to have included additional environmental work in its studies before a lease sale took place in 2007.

The court rejected those claims.

The decision allows Shell Oil to continue exploration and development of off-shore oil prospects in the Beaufort, but it does not affect Shell’s leases in the Chukchi Sea, which are tied up with a separate lawsuit by environmental groups and the village of Point Hope.

And while the legal system and punitive lawsuits continue to take aim at safe and environmentally-sound offshore energy production in Alaska, other proposals moving forward in Congress are no treat either. Cap-and-trade, the criminalization of carbon emissions, would deliver a major blow to much of Alaska’s energy economy and to working-families throughout the state. Alaskans are fighting back, though.

This from the Anchorage Daily News:

At Monday morning’s downtown rally, Alaska business leaders and political conservatives argued that the bill will cook Alaska’s goose: future oil and gas production, both onshore and offshore. The rally was sponsored by the American Petroleum Institute and 40 to 50 local organizations, according to local organizer Willis Lyford. The API is sponsoring roughly 20 similar rallies in cities around the country.

Nearly one-third of Alaska’s workers owe their jobs to the oil industry, warned Vince Beltrami, president of the Alaska AFL-CIO, citing a recent University of Alaska Anchorage study.

“This legislation will cost jobs in the long term,” Beltrami said.

Posted in Beaufort and Chukchi SeasComments (0)


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