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May 2015

Vol. 20, No. 20 Week of May 17, 2015

Shell says it will move drilling rigs to Seattle

Associated Press

Royal Dutch Shell says it has a valid lease for Seattle terminal space and a tight timeline to prepare its fleet for exploratory oil drilling in Arctic waters so it plans to move its drill rigs to Seattle despite the protests of activists and a port commission request that it wait.

Royal Dutch Shell has been planning to base its fleet at Terminal 5 for six months each year when it’s not exploring for oil in the Arctic. Seattle Mayor Ed Murray threw a wrench into those plans May 11 when he said the port can’t host Shell’s offshore Arctic fleet until it gets a new land-use permit.

Foss Maritime plans to appeal Seattle’s position that Royal Dutch Shell can’t use the Port of Seattle’s Terminal 5 under the existing permit.

The company says it intends to provide its customer, Shell, with the services it needs to prepare to explore for oil in Alaska.

The Noble Discoverer arrived in Everett, north of Seattle, on May 12 and the Polar Pioneer, which has been parked in Port Angeles on the Olympia Peninsula, is expected to arrive in Seattle by May 15.

The city of Seattle has said the use of the terminal as a base for drill rigs isn’t allowed under the port’s current land-use permit, which is for cargo operations.

Foss said it will appeal that determination and forge ahead with its plans in the meantime. On May 12, the Port of Seattle Commission voted to appeal as well, while it also voted to ask Foss to ask Shell to delay any moorage of oil exploration vessels pending further legal review.

The port commission wants to appeal the city’s interpretation of cargo use at the terminal.

Shell — time of essence

A Shell spokesman said time is of the essence and the company’s plans are unchanged.

“We understand the Port Commission’s request for more time,” Shell spokesman Curtis Smith said in an email, “but given the short windows in which we have to work in the Arctic, and our shared view that Shell’s lease and the supporting contract with Foss is valid, we have made the decision to utilize Terminal 5 under the terms originally agreed upon by the parties involved - including the Port of Seattle.

“Rig movement will commence in the days to come.”

Foss was adamant as well.

Company President Paul Stevens said the port commission knew full well what activities would be occurring at the terminal when it granted the lease.

“We’re going to proceed,” he said.





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