US Fish & Wildlife issues Shell authorization; fleet moving north

The U.S. Fish and Wildlife Service has issued a letter of authorization, allowing the minor, unintended disturbance of walrus and polar bears during Shell’s planned exploration drilling in the Chukchi Sea this year. Shell has been moving its drilling fleet north in preparation for its drilling program: The company can start moving its fleet into the Chukchi at any time after July 1, depending on the sea-ice conditions. The only permits that Shell now needs before it can start drilling are its permits to drill from the Bureau of Safety and Environmental Enforcement - companies typically obtain this type of permit shortly before drilling starts.

On June 29 Shell spokesman Curtis Smith told Reuters that the Polar Pioneer semi-submersible drilling rig had arrived in Dutch Harbor in the Aleutian Islands on June 27 and would remain there until ice clears over the company’s planned drilling locations. Based on current ice forecasts, it appears that it may be possible to start drilling in the third week of July, Smith said.

Shell is targeting the Burger prospect, about 70 miles northwest of the Chukchi coastal village of Wainwright.

The Fish and Wildlife authorization contains a number of stipulations for mitigation measures that Shell must implement, to minimize the disturbance to wildlife. These measures include the mandated use of marine mammal observers and rules concerning the maintenance of minimum distances from walrus or polar bears.

One stipulation, derived from Fish and Wildlife regulations, requires a spacing of at least 15 miles between drilling rigs during exploration activities. It is unclear how this requirement will impact Shell’s plans - the company will station two drilling vessels, the Polar Pioneer and the Noble Discoverer, in the Chukchi, in anticipation of drilling two wells during this year’s open water season.

- Alan Bailey