The U.S. Minerals Management Service has received a plan from Shell Offshore Inc. to explore two leases in the Beaufort Sea. The agency has deemed the plan "complete," a procedural move indicating the application has now been formally accepted by the agency.
Shell proposes activities limited to the far western area of Camden Bay, located west of Kaktovik on the North Slope. The proposal includes use of one drillship with one tending ice management vessel drilling two wells over the course of a year.
The two leases are about 16 and 23 miles north of Point Thompson.
The leases are in a different area than several leases the company proposed to explore earlier, and where drilling was stopped by an injunction ordered by the U.S. 9th Circuit Court of Appeals after environmental groups and local Inupiat whalers brought a lawsuit. The appeals court has not yet given a final ruling in that case.
The MMS determination triggers a 30-day period for the agency to analyze and evaluate Shell's plan. In its review, the agency will prepare an environmental assessment specific to Shell's exploration. Upon completion of the technical and environmental review, MMS must decide if the plan is approved, requires modifications or is disapproved.
"The responsible development of offshore resources is part of our nation's comprehensive energy plan, which includes a renewed emphasis on conservation and an aggressive effort to develop renewable resources so we can move the nation toward energy independence," said Interior Secretary Ken Salazar. "Now that Shell's plan has reached this important milestone, we will review it carefully to ensure that it is technically sound and will protect the Beaufort Sea and Alaska's environment."
Shell Offshore Inc. obtained the two leases during Beaufort Sea oil and gas lease sales 195 and 202 in 2005 and 2007. The sales were included in the 2002-2007 five-year oil and gas leasing program and are not affected by the recent court decision on the current leasing program, which sent the 2007-2012 program back to MMS for additional environmental reviews.
Before MMS would allow activity to proceed, Shell must also meet the state of Alaska's coastal zone management requirements, as well as air and water quality rules issued by the Environmental Protection Agency, and Marine Mammal Protection Act requirements of the U.S. Fish and Wildlife Service and National Marine Fisheries Service.
The Beaufort Sea is estimated to contain 8.22 billion barrels of oil and 27.64 trillion cubic feet of natural gas.
