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    IUMI explores the implications of digitalization on marine insurance

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SAFETY4SEA

US toughens Arctic drilling rules

by The Editorial Team
July 8, 2016
in Arctic
Arctic oil drilling

Above image is used for illustration purposes only

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The U.S. Department of the Interior announced final regulations to ensure that any future exploratory drilling activities on the U.S. Arctic Outer Continental Shelf (OCS) are conducted under the highest safety and environmental standards and subject to strong and proven operational requirements.

“With the United States as Chair of the Arctic Council, we are committed to demonstrating our leadership in governance and activities in the Arctic Region,” said Assistant Secretary Schneider.

“The regulations we are issuing today support the Administration’s thoughtful and balanced approach to any oil and gas exploration in the Arctic region. The rules help ensure that any exploratory drilling operations in this highly challenging environment will be conducted in a safe and environmentally responsible manner, while protecting the marine, coastal, and human environments, and Alaska Natives’ cultural traditions and access to subsistence resources.”

The Arctic-specific regulations focus solely on OCS exploratory drilling operations from floating vessels within the U.S. Beaufort and Chukchi Seas. These rules require oil companies to ensure proper internal controls and planning for oil spill prevention, containment and responses – all issues identified by previous Interior reports regarding Shell’s 2012 exploration activities in the Arctic.  The regulations codify and further develop current Arctic-specific operational standards to ensure that operators take the necessary steps to plan through all phases of OCS exploration in the Arctic, including mobilization, maritime transport and emergency response, and the conduct of safe drilling operations while in theater.

“The unique Arctic environment raises substantial operational challenges,” said Bureau of Ocean Energy Management (BOEM) Director Abigail Ross Hopper.

“These new regulations are carefully tailored to ensure that any future exploration activities will be conducted in a way that respects and protects this incredible ecosystem and the Alaska Native subsistence activities that depend on its preservation.”

Specifically, the final rule requires operators to develop an Integrated Operations Plan addressing all phases of a proposed Arctic OCS exploration program and submit it to BOEM in advance of filing an Exploration Plan. The regulations require companies to have access to – and the ability to promptly deploy – source control and containment equipment, such as capping stacks and containment domes, while drilling below or working below the surface casing.

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Operators also must have access to a separate relief rig able to drill a timely relief well under the conditions expected at the site in the event of a loss of well control; have the capability to predict, track, report, and respond to ice conditions and adverse weather events; effectively manage and oversee contractors; and develop and implement an Oil Spill Response Plan designed and executed in a manner that accounts for the unique Arctic OCS operating environment, and is supported with the necessary equipment, training, and personnel for oil spill response on the Arctic OCS.

“Conducting safe and environmentally responsible Arctic exploratory drilling operations presents a variety of technical, logistical and operational challenges,” said Bureau of Safety and Environmental Enforcement Director Brian Salerno.

“This rulemaking seeks to ensure that operators prepare for and conduct these operations in a manner that drives down risks and protects both offshore personnel and the pristine Arctic environment.”

The regulations will be available here.

Source: US Department of Interior

 

Tags: drillingUS
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