OCS coordinator needed Begich proposes federal OCS coordinator to streamline Arctic OCS development Alan Bailey Petroleum News
Concerned about declining oil flow through the trans-Alaska oil pipeline, the main artery of the Alaska economy, U.S. Sen. Mark Begich, D-Alaska, has told the Alaska Legislature that he is going to introduce legislation that would create a position of federal coordinator for the Arctic outer continental shelf. The federal OCS coordinator would have a role analogous to the federal pipeline coordinator who is responsible for facilitating the permitting of a North Slope gas line — essentially the OCS coordinator would work with federal agencies, the State of Alaska and local governments to streamline oil and gas developments in the Chukchi and Beaufort seas, Begich said in a March 22 speech to state lawmakers.
Begich’s proposed legislation would establish a joint lease and permit processing office for the Alaska OCS, with that office having the authority to work across multiple government agencies, including the Environmental Protection Agency, the Army Corps of Engineers and the Department of the Interior.
Air permitting Clearly concerned about delays in the air quality permitting for Shell’s planned OCS exploration drilling, Begich said that he also wants to see responsibility for Arctic OCS air permitting moved from the Environmental Protection Agency to the Department of the Interior, thus aligning Arctic permitting arrangements with those in the Gulf of Mexico.
“This makes no sense,” Begich said with reference to EPA jurisdiction over air permitting in the Arctic offshore. “It’s not fair and it puts companies with projects in the Arctic at a competitive disadvantage. … It’s time to move all air permitting under the Interior Department where air permits were issued quickly (in the Gulf of Mexico) before the BP spill.”
Fixing the air quality permitting problem may require legislation, Begich said.
Begich also said that he has been fighting the EPA and the Army Corps of Engineers over access to the National Petroleum Reserve-Alaska, and that he has been holding off congressional proposals to permanently lock oil and gas development out of the Arctic National Wildlife Refuge.
“One of the best long-term prospects for filling the oil pipeline and reducing America’s dependence on foreign oil is from the enormous reserves likely beneath federal lands and waters of the outer continental shelf, the Arctic (National Wildlife) Refuge and the National Petroleum Reserve-Alaska,” Begich said. “These prospects alone are projected to hold 40 (billion) to 60 billion barrels, nearly a decade’s worth of U.S. consumption.”
Shell appreciative Shell, the company whose plans to drill in the Beaufort and Chukchi seas have been held up for several years by permitting issues and litigation, said that it appreciates Begich’s comments.
Responsible operators on the OCS need a predictable and accountable regulatory process, said Shell spokesman Curtis Smith.
“A federal OCS regional coordinator for Alaska could go a long way in making that happen,” Smith said. “Shell has already spent five years and over $50 million trying to secure an air permit for our drilling rig but with no success. The senator’s effort to align Arctic air permitting under the Department of Interior, as it is in the Gulf of Mexico, is one Shell supports.”
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