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Vol. 16, No. 38 Week of September 18, 2011
Providing coverage of Alaska and northern Canada's oil and gas industry

‘Critical juncture’ for Canadian Arctic; same-season relief wells

A United States-based environmental group has warned that Canada does not have the regulatory defenses in place to prevent an Arctic oil or natural gas blowout on the scale of BP’s Macondo well incident in the Gulf of Mexico.

In a letter to Prime Minister Stephen Harper, Oceans North Canada, an arm of the Pew Environment Group, said Canada “stands at a critical juncture in the history” of its Arctic region, with only one chance to adopt a world-leading safety regime.

It said there are “critical weaknesses” in the existing regulatory regime and urged Canada’s National Energy Board to withhold approvals of any new projects or leasing activities until it completes an overhaul of safety regulations, standards for public consultations and royalty-share rules.

Oceans North policy director Trevor Taylor said the federal government and the NEB should prevent any “forward movement” on Arctic oil and gas exploration until it has completed its review and published a final report in December.

Same season well demanded

The Oceans North letter said Canada must make a clear commitment to a “same-season relief well policy,” which requires a prompt completion of a backup well in the event of a blowout.

Most Arctic leaseholders have argued a same-season policy is impractical because of weather conditions and insist other measures are available to head off a catastrophic event.

“A key issue in the review is whether industry should … be required to show it can kill a well blowout in the same season to assure that such a devastation spill would not continue under the ice for multiple seasons,” the letter said.

It told Harper that he is faced with a historic decision on opening new areas of the Arctic Ocean to oil and gas exploration at a time when key questions remain unanswered.

In a foreword to the report, Mary Simon, president of the Inuit Tapirit Kanatami activist group, called for a “sound, responsible and equitable” approach to Arctic resource development.

She said the “enormous” potential risks and rewards for all forms of resource development are amplified for oil and gas development in marine areas.

—Gary Park



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