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Feds to open OCS leases in Arctic

June 29th 7:27 pm | Carey Restino Print this article   Email this article   Create a Shortlink for this article

New oil and gas lease sales are on the horizon for the Outer Continental Shelf, federal officials announced this week at a meeting in Norway, with two potential lease sales in the Arctic — one in 2016 in the Chukchi Sea and one in 2017 in the Beaufort Sea.

A five-year plan for the leasing program will be released later in the week, Secretary of the Interior Ken Salazar told the Norway Arctic Roundtable on Tuesday.

"In this plan, we will make available vast areas in the most resource-rich parts of the U.S. outer continental shelf for oil and gas leasing," Salazar said, according to a released copy of his speech. "This includes frontier areas of the Alaskan Arctic."

Salazar said the plan incorporates protections for areas traditionally important for Alaska Native subsistence use. The approach is referred to as "targeted leasing," and avoids a 25-mile buffer along the coast of the Chukchi Sea as well as an additional area north of Barrow.

"Our goal is to maximize the availability of oil and gas resources in those areas that we are making available for leasing while minimizing potential conflicts with environmentally sensitive areas and the Native Alaska communities that rely on the ocean for subsistence use," he said. "Overall, this Arctic strategy represents a shift from the "one-size-fits-all" approach of the past to a recognition of that science, planning and the voices of local communities can guide us on a smarter, more strategic, and more effective path."

Deputy Secretary David Hayes also commented on the soon-to-be-released plan, noting that "good science must underpin development."

Hayes sited the Congressionally-chartered Arctic Research Commission and the Interagency Arctic Research Policy Committee as examples of the effort to address science needs in the Arctic.

"The rapid changes underway in the Arctic underscore the urgency of effective and far-sighted policies to ensure the health and welfare of the Native communities," Hayes said.

Sen. Mark Begich responded to Salazar's comments in a release, saying the proposed plan reflects "another vote of confidence in Alaska's Outer Continental Shelf prospects."

"We're still moving forward," he said, adding that Alaska should and can supply a significant portion of the country's energy needs.

Now that the administration is moving in the right direction, Begich said the focus can shift to ensuring responsible development.

Shell tests capping system

While the new lease sales are on the horizon, Shell Oil, which holds leases from previous sales, is moving closer to its anticipated test-well drilling operation in the Chukchi and Beaufort seas this summer.

On Tuesday, the company announced the successful deployment of its capping stack in Puget Sound.

"We are nearing the end of an extremely thorough inspection and permitting process that would allow for exploratory drilling in the Beaufort and Chukchi seas this summer," said, Curtis Smith, Shell Alaska Spokesman, in a release.

The company is still waiting for its Applications for Permits to Drill, which approve the specific drill plans the company plans to execute this summer.

 

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