EPA terminates Shell’s drilling air permits

The Environmental Protection Agency, or EPA, has terminated the air permits for Shell’s use of the Noble Discoverer drillship and the floating drilling platform, the Kulluk, for exploratory drilling in Alaska’s Chukchi and Beaufort seas. With the Bureau of Ocean Energy Management, or BOEM, taking over Arctic outer continental shelf air permitting from EPA, Shell had notified EPA of its intent to obtain air emissions authorizations from BOEM and had requested EPA to terminate the permits. EPA has agreed to that request.

Shell is in the process of seeking authorization from BOEM for emissions from the Noble Discoverer for drilling in the Chukchi Sea. Rather than approving an air emissions permit, BOEM will review the emissions as part of the approval process for a revised Chukchi Sea exploration plan that Shell has submitted to the agency. That plan contains comprehensive estimates of air emissions from Shell’s proposed Chukchi Sea activities.

In addition, Noble Drilling Inc., on behalf of Shell, has made some substantive modifications to the Noble Discoverer since EPA issued the air permit for the vessel. EPA says that the air permit is no longer consistent with Shell’s planned future exploration activities. But, with EPA no longer having the authority to issue air permits for the Chukchi Sea, the agency cannot issue a revised permit, thus making permit cancellation the appropriate action to take, the agency says.

And, with the agency not having the authority to take permitting actions with respect to the Kulluk, following permit compliance issues and grounding-related damage associated with that vessel, EPA says that it is also appropriate to cancel the Kulluk permit.

—Alan Bailey