Feds Tightening Rules For Deepwater Drilling

Fewer oil companies will qualify for categorical exclusions under the federal government’s continued moratorium on offshore drilling, said U.S. Department of Interior Secretary Ken Salazar yesterday.

“In light of the increasing levels of complexity and risk, and the consequent potential environmental impacts, associated with deepwater drilling, we are taking a fresh look at the [National Environmental Protection Act] process and the types of environmental reviews that should be required for offshore activity,” Salazar said in a statement.

The actions by the government are intended to redress a loose oversight policy that has allowed many large oil companies to circumvent regulations and receive permits to drill in domestic waters.

A new government report indicated that BP, whose Deepwater Horizon well exploded in the Gulf of Mexico on April 20, killing 11 workers and rupturing a well which spewed millions of gallons of oil into the Gulf for months, directly capitalized on a lax federal review process. The report, published by the White House Council of Environmental Quality, determined that BP was granted permission to drill its deepwater well based on exemptions established by federal regulatory agencies in the 1980’s, several years before the creation of new technologies allowed oil companies to drill a mile below the surface of the ocean.

On Monday, the head of the regulatory agency tasked by President Obama with more or less taking over the job previously performed by the Minerals Management Service (MMS), said increased scrutiny of the oil industry is needed.

“We are building a more robust and aggressive independent oversight agency based on the development of new tools and enhanced legal and regulatory authorities, as well as on the more aggressive use of existing tools,” said Bureau of Ocean Energy Management, Regulation and Enforcement Director Michael Bromwich.

“These changes in our regulatory framework and approach will serve to hold offshore operators accountable and ensure that the industry and the country are fully prepared to deal with catastrophic blowouts and oil spills like the Deepwater Horizon.”

Pressure Tests Determine Oil In Annulus; Officials Debate How To Proceed

by Miles Wolf Tamboli - Talk Radio News Service

In a conference call with reporters, Friday, National Incident Commander Thad Allen reported the status of pressure tests on the Macondo deepwater well - the well responsible for the months-long oil spill in the Gulf of Mexico - which resumed Thursday after storms passed through the Gulf.

Allen told reporters that the tests had revealed, “something that is between the annulus and the reservoir that is not allowing the flow of hydrocarbons … the question is, what to do about that moving forward.” 

Crews have determined that there may be as much as 1,000 barrels of “stagnant” oil suspended in the well, which could compromise the success of the bottom kill. “Tt remains a work in progress,” said Allen; “we’re trying to assess the options that we have. Everyone is in agreement that we need to proceed with the relief well - the question is how to do that.”

There is a risk that pumping mud and cement into the bottom of the well could increase the pressure beyond the threshold of the machinery now holding the well shut. “To increase the pressure in the blowout preventer and the capping stack in excess of 7,500 PSI would put that link in between them at risk, and we’re trying to figure out what that means and how we could mitigate that risk,” said Allen. 

Officials report that they are still wholly committed to completing the relief well and executing the bottom kill, and Allen reported that despite pressure test results showing a possible situation in which conducting a bottom kill could endanger the well’s integrity, BP officials would be “delighted” to show that they could, “drill down over 17,00 feet below sea level and hit a 7-inch pipe.” 

“The relief well will be finished, and that is the end result. How it gets finished will be determined on risk mitigation and the way forward that’s being discussed right now. The relief well will be finished - we will kill the well,” Allen concluded. The well will take about 96 hours to complete once drilling has resumed, according to administration officials.

More Than 5,000 Square Miles Of Gulf Waters Reopened

By Miles Wolf Tamboli - Talk Radio News Service

The National Oceanic and Atmospheric Association announced Tuesday that 5,144 square miles of ocean in the Gulf of Mexico are now safe for fishing, according to the NOAA with collaboration from the FDA and Gulf states. 

The NOAA and US Coast Guard report that they have seen no significant oil in the area since July 3rd, and have deemed the zone safe from any future exposures to oil.  According to an NOAA press release Tuesday, “fish caught in the area and tested by NOAA experts have shown no signs of contamination.”

“Consumer safety is NOAA’s primary concern, which is why we developed rigorous safety standards in conjunction with the FDA and the Gulf states to ensure that seafood is safe in the reopened area,” said Under Secretary of Commerce for Oceans and Atmosphere and NOAA Administrator Jane Lubchenco; “we are confident that Gulf fish from this area is safe to eat and pleased that recreational and commercial fisherman can fish these waters again.” 

The organization reiterated consumer safety as its highest priority, but emphasized that the decision was influenced by the importance of fishing to the livelihoods of many living on the Gulf Coast. 

52,395 square miles are still off limits to commercial and recreational fishing, constituting nearly a quarter of the Gulf’s federal waters - and area roughly the size of the state of Louisiana.

Relief Well Drilling Suspended Due To Weather

By Miles Wolf Tamboli - Talk Radio News Service

As heavy storms brew in the Gulf of Mexico, National Incident Commander Admiral Thad Allen reports that drilling will halt on the relief well that may finally put an end to the months-long BP-Deepwater Horizon oil spill until the weather system has passed.

The Development Driller III, which has drilled to within about thirty feet of the crippled Macondo well, will disengage from the well itself but will remain onsite through the storm. Allen told reporters that the joint command had expected to complete the relief well on Thursday or Friday of this week - “this could potentially delay the final portion of the relief well for two to three days.”

The response team does not expect the storms to reach hurricane status, but are executing safety measures “as a precaution.”

In the meantime, the team, “will continue our aggressive search for oil that’s onshore in the marshes, to make sure we’re being responsive to the oil that does appear.”

“As we near the completion of the relief well, we’ll kind of assess where we’re at because we are moving into a new phase, where we’ll be focusing on locating any oil that remains out there - surface or subsurface - focusing on cleanup, and starting with the long-term recovery issues, and making sure that BP maintains their commitment,” said Allen.

Final Well Kill May Begin This Week

by Miles Wolf Tamboli - Talk Radio News Service

In his daily operational update Monday, National Incident Commander Admiral Thad Allen told reporters that “the job before us now is to finish the relief well… and then seal the well with cement from the bottom up. That will, in our view, at that point, permanently kill the well.”

“We expect that some time towards the end of the week we’ll be in a position to intercept the annulus and commence the kill,” he said.

In the meantime, the response team is moving forward, focusing their attention on cleaning the beaches and wetlands impacted by the Deepwater Horizon oil spill.

Over the next week, Allen will be meeting with local leaders and parish presidents along the coast to coordinate a stronger local response.