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Deepwater Horizon Incident

Regulatory Actions Affecting MMS Operators

Originally Published May 17, 2010

Regulatory Action Date
NTL N05 Checklist September 03
Judge rules against US government on oil drilling September 02
Director Bromwich to Host Forums in Texas and Mississippi to Discuss Deepwater Drilling Safety, Containment and Spill Response August 31
BOEM Points of Contact for Shallow Water Permitting and Plans August 24
BOEM Announces Misconduct Reporting Hotline August 18
Categorical Exclusions for Gulf Offshore Activity to be Limited While Interior Reviews NEPA Process and Develops Revised Policy August 16
State of Texas Challenges Federal Government's Offshore Drilling Moratorium August 11
BOEMRE Issues 3rd Update to FAQ for NTL 2010-N06 August 10
Director Bromwich to Kick off Forum Series to Discuss Deepwater Drilling Safety, Containment and Spill Response August 02
Secretary Salazar, Director Bromwich Testify on Progress of Interior's Offshore Energy Reforms July 22
BOEMRE Issues Additional Updates to FAQ for NTL 2010-N06 July 21
Bromwich to Host Public Meetings Nationwide to Discuss Deepwater Drilling Safety, Containment and Spill Response July 19
Obama Administration Announces Final Recommendations of the Ocean Policy Task Force July 19
Director Bromwich Discusses Offshore Drilling Reforms with Industry and Conservation Stakeholders July 16
Bill Approved: House Passes CLEAR Act, Including Sweeping Industry Changes July 15
BOEMRE Issues Updated FAQs for NTL No. 2010-N06 July 15
BP Liable for Reporting and Royalties on Oil and Gas from Leaking Well July 15
Secretary Salazar Issues New Suspensions to Guide Safe Pause on Deepwater Drilling July 12
BOEMRE Issues Updated FAQ Regarding NTL 2010-N05 July 09
Reduced Skimming Capacity May Bolster Interior's Fight for Drilling Ban July 06
Temporary Suspension of USCG / EPA Requirements to Increase Cleanup Resources June 30
Open Meeting: National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling June 30
BOEMRE ITL: FAQ Regarding NTL 2010-N06 June 26
BOEMRE ITL: FAQ Regarding NTL 2010-N05 June 26
Secretarial Memo to DOI employees prohibiting enforcement of Drilling Moratorium June 25
Better Oil Spill Response Plan Act of 2010 June 25
Investigative / Compliance Team Launched for Bureau of Ocean Energy June 24
Judge Blocks Offshore Drilling Moratorium June 21
Salazar Swears-In Michael R. Bromwich to Lead Bureau of Ocean Energy June 21
Louisiana Office of Conservation Issues Emergency Rule June 19
MMS NTL 2010-N06: Additional Information Requirements for EPs, DPPs and DOCDs June 18
Secretary Salazar Appoints Michael R. Bromwich to Lead Reforms at MMS June 15
MMS NTL 2010-N05: New Safety Rules June 08
Attorney General Announces Criminal Investigation of Incident June 01
MMS NTL 2010-N04: Drilling Moratorium May 30
BLM Director to Serve as Acting Director of the MMS May 28
Salazar Calls for New Safety Measures, Orders Six Month Moratorium on Deepwater Drilling May 27
DOI Issues 30-Day Safety Report May 27
Obama Orders Halt to Deepwater Drilling in the Gulf May 27
MMS Director Birnbaum Resignation May 27
Commerce Department Declares Fishery Failure in Louisiana May 25
Joint Industry Task Force Drafts Recommendations to Address Offshore Operating Procedures and Equipment May 22
Executive Order - National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling May 22
DOI Secretarial Order for Restructuring and MMS Oversight May 19
Review of MMS NEPA Policies, Practices, and Procedures for OCS Oil and Gas Exploration and Development May 17
Restructure of MMS May 13
Raising the Liability Caps May 12
BP, Transocean and Halliburton Give Congressional Testimony May 11
Louisiana Issues Orders in Response to Incident May 11
Exploration Plan Timeline May 11
MMS ITL: Handling Oiled Wildlife May 10
Application for Permit to Drill Approvals May 07
Obama Orders 30-Day Review of Incident April 30
OCS Oversight Board April 30
MMS Safety Notice April 30
MMS ITL: Reporting Evacuations and Shut-Ins April 30
Incident Declared “Spill of National Significance” April 30
Deepwater Operations Inspections April 27
Joint Investigation April 21


Date Regulatory Action
September 03, 2010

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NTL N05 Checklist

This Excel Spreadsheet contains three checklists being used by BOEM to review compliance with NTL 2010-N05. Please do not send this checklist with your permit, it should only be used as your internal checklist.

http://www.jccteam.com/Files/NTL_2010-N05_Checklist_Aug2010.xls
September 02, 2010

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Judge rules against US government on oil drilling

A federal judge on Wednesday rejected the U.S. government's request to dismiss an industry lawsuit challenging its deepwater oil and gas drilling moratorium.

In his 20-page ruling on Wednesday, Judge Martin Feldman said the administration's new moratorium offered "no substantial changes" from the first one, and denied the motion to dismiss the Hornbeck lawsuit.

http://www.laed.uscourts.gov/GENERAL/Notices/10-1663_doc67.pdf
August 31, 2010

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Director Bromwich to Host Forums in Texas and Mississippi to Discuss Deepwater Drilling Safety, Containment and Spill Response

The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEM) today announced that Director Michael R. Bromwich will hold the next two events in a series of fact-finding forums in Houston, Texas and Biloxi, Miss. the week of September 6, 2010. The forums are designed to collect information and views about deepwater drilling safety reforms, well containment, and oil spill response, which Director Bromwich will consider in evaluating whether to recommend any modifications to the scope or duration of the deepwater drilling suspensions announced by Interior Secretary Ken Salazar on July 12, 2010.

During these forums, Director Bromwich will be briefed by panels of experts from academia, the environmental community, and the oil and gas industry on technical issues related to deepwater drilling and workplace safety, well containment, and oil spill response. The forums also will provide an opportunity for input from federal, state and local leaders on these same issues.

The forums will be open to the public. Members of the public will be encouraged to submit comments via forms provided at the forums, by mail or online.

The eighth and final additional forum will be held in mid-September in Lafayette, Louisiana.

What: Forums on Offshore Drilling
Who: Bureau of Ocean Energy Management, Regulation and Enforcement Director Michael R. Bromwich

When/Where: September 7, 2010: Houston, Texas
The Crowne Plaza Houston- Downtown
1700 Smith Street
Houston, Texas 77002
Doors open at 8 A.M., event begins at 9 A.M.

When/Where: September 10, 2010: Biloxi, Mississippi
Mississippi Coast Coliseum and Convention Center
2350 Beach Boulevard
Biloxi, Mississippi 39531
Doors open at 8 A.M., event begins at 9 A.M.

http://www.boemre.gov/ooc/press/2010/MA_0931.htm
August 24, 2010

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BOEM Points of Contact for Shallow Water Permitting and Plans

In a recent email to industry, Lars Herbst, BOEM Regional Director for Gulf of Mexico Region, announced a change in the format for communications on permit status and answering compliance questions related to NTL N05, NTL N06, specific questions related to Worst Case Discharge calculations, and Oil Spill Response Plans.

In lieu of the previous weekly conference calls, BOEM has established points of contact for the major areas of review. Many questions have been answered through the issuance of FAQs on the BOEM website and the Regional Director stated his intent to continue those general responses but also host individual company questions through established points of contact. The agency is also meeting with individual companies on specific plan and permit issues.

The purpose of the email is to ensure that industry has the appropriate points of contact for issues related to shallow water permitting and has the proper link for plan/permit status. The Regional Director encourages industry to pass this information on to others that may benefit from the information.

Points of contact:
  • NTL N05 - Jane Powers: (504) 736-2558

  • NTL N06 Plans - Mike Tolbert: (504) 736- 2867

  • Plan EA/CER - Tommy (TJ) Broussard: (504) 736- 3245

  • Worst Case Discharge - Pete Harrison: (504) 736-2918

  • Oil Spill Response Plans - Nick Wetzel: (504) 736-2845


The web link for Plan/Permit status is:
http://www.gomr.mms.gov/homepg/offshore/safety/well_permits.html

For additional assistance, contact the Regional Director's office at (504) 736-2589.

http://www.gomr.mms.gov/homepg/offshore/safety/well_permits.html
August 18, 2010

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BOEM Announces Misconduct Reporting Hotline

Bureau of Ocean Energy Management, Regulation and Enforcement (BOEM) Director Michael R. Bromwich today announced the creation of a new online and telephone hotline for reporting misconduct and unethical behavior involving BOEM personnel, and misconduct by persons and companies who interact with BOEM personnel.

In one of his first steps in reforming the bureau, Director Bromwich established an Investigations and Review Unit (IRU), a team of prosecutors, FBI agents, and enforcement officials whose mission is to: promptly and credibly respond to allegations or evidence of misconduct and unethical behavior by bureau employees; pursue allegations of misconduct by oil and gas companies involved in offshore energy projects; and assure the Bureau's ability to respond swiftly to emerging issues and crises. The IRU will evaluate all information submitted through the hotline and will, where appropriate, investigate allegations of misconduct.

“The creation of the IRU and the launch of this hotline are critical steps in our work to reform this agency. We will take reported actions of misconduct, either within BOEM or by industry, very seriously and will investigate these allegations promptly and aggressively,” said Director Bromwich.

Allegations of misconduct or unethical behavior involving BOEM personnel or persons who interact with BOEM personnel can be reported online by going to www.boemre.gov/iru or by calling 877-440-0173 or 202-208-5646. The Department of the Interior's Office of the Inspector General may also, as appropriate, investigate such allegations.

The new hotline and the IRU are integral to BOEM's ongoing efforts to revise and reform its enforcement and ethics policies. Use of the hotline by anyone with relevant information will enhance BOEM's ability to detect and, where necessary, move swiftly to address misconduct and unethical behavior.

http://www.boemre.gov/ooc/press/2010/press0818.htm
August 16, 2010

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Categorical Exclusions for Gulf Offshore Activity to be Limited While Interior Reviews NEPA Process and Develops Revised Policy

Secretary of the Interior Ken Salazar and Bureau of Ocean Energy Management, Regulation and Enforcement (BOEM) Director Michael R. Bromwich today announced that the department will restrict its use of categorical exclusions for offshore oil and gas development to activities involving limited environmental risk, while it undertakes a comprehensive review of its National Environmental Protection Act (NEPA) process and the use of categorical exclusions for exploration and drilling on the Outer Continental Shelf.

Director Bromwich and Secretary Salazar also announced that the Department of the Interior intends to conduct a new environmental analysis in the Gulf of Mexico that will help provide information to guide future leasing and development decisions. In the coming days, BOEM will publish a notice in the Federal Register of its intent to complete a supplemental environmental impact statement for the Gulf.

http://www.gomr.mms.gov/homepg/whatsnew/newsreal/2010/100816.pdf
August 11, 2010

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State of Texas Challenges Federal Government's Offshore Drilling Moratorium

Texas Attorney General Greg Abbott today filed a legal challenge to the Obama Administration's offshore drilling moratorium. The State's legal challenge charges the Administration with violating a federal law that requires the Secretary of Interior to consult with affected states before imposing an offshore drilling moratorium. Filed on behalf of the State of Texas, Governor Rick Perry and Land Commissioner Jerry Patterson, today's legal action names the following defendants: the U.S. Department of the Interior (DOI); DOI Secretary Kenneth Salazar; the Bureau of Ocean Energy Management, Regulation and Enforcement – formerly known as the Minerals Management Service – and BOEM Director Michael Bromwich.

http://www.oag.state.tx.us/oagnews/release.php?id=3445
August 10, 2010

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BOEMRE Issues 3rd Update to FAQ for NTL 2010-N06

The BOEMRE has added additional pages of questions and answers to the Frequently Asked Questions (FAQs) for NTL No. 2010-N06, originally issued on June 26, 2010 and revised on July 15, 2010. Additional topics include further information for calculating Worst Case Discharges (WCD), details to be provided regarding drilling of relief wells and suggested format for data submission. Attachments are included in this revision to illustrate requested information.

http://www.gomr.mms.gov/homepg/regulate/regs/ntls/2010NTLs/10-n06-FAQs.pdf
August 02, 2010

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Director Bromwich to Kick off Forum Series to Discuss Deepwater Drilling Safety, Containment and Spill Response

The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEM) recently announced that Director Michael R. Bromwich will kick off a series of fact-finding forums in New Orleans, La. on Wednesday, August 4, 2010. The forums are designed to collect information and views about deepwater drilling safety reforms, well containment, and oil spill response, which Director Bromwich will consider in evaluating whether to recommend any modifications to the scope or duration of the deepwater drilling suspensions announced by Interior Secretary Ken Salazar on July 12, 2010.

During these forums, Director Bromwich will be briefed by panels of experts from academia, the environmental community, and the oil and gas industry on technical issues related to deepwater drilling and workplace safety, well containment, and oil spill response. The forums also will provide an opportunity for input from federal, state and local leaders on these same issues.

The forums will be open to the public. Members of the public will be encouraged to submit comment via forms provided at the forums, by mail or online.

When: Wednesday, August 4, 2010
Doors open at 8 A.M., event begins at 9 A.M
Where: Tulane University, McAlister Auditorium,
6823 St. Charles Ave., New Orleans, LA 70188

When: Tuesday, August 10, 2010
Doors open at 8 A.M., event begins at 9 A.M
Where: Renaissance Mobile Hotel & Spa
26 North Royal Street, Mobile, AL 36602

When: Wednesday, August 11, 2010
Doors open at 8 A.M., event begins at 9 A.M
Where: New World Landing
600 South Palafox Street, Pensacola, FL 32502

When: Tuesday, August 24, 2010
Doors open at 8 A.M., event begins at 9 A.M
Where: Fess Parker's Double Tree Resort
633 East Cabrillo Blvd., Santa Barbara, CA 93103

When: Thursday, August 26, 2010
Doors open at 7 A.M., event begins at 8 A.M
Where: Dena'ina Civic and Convention Center
600 W. Seventh Avenue, Anchorage, Alaska 99501



http://www.boemre.gov/forums/
July 22, 2010

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Secretary Salazar, Director Bromwich Testify on Progress of Interior's Offshore Energy Reforms

WASHINGTON, D.C. - Secretary of the Interior Ken Salazar and Director of the Bureau of Ocean Energy Management, Regulation and Enforcement Michael R. Bromwich testified today on the progress of reforms Interior is undertaking to strengthen management and oversight of energy development on the U.S. Outer Continental Shelf.

“The reorganization we are undertaking will help ensure strong and effective management and oversight of our nation's offshore energy resources,” Secretary Salazar told the Committee on Oversight and Government Reform of the House of Representatives. “We are moving forward quickly and responsibly with reforms that are needed.”

“The fundamental changes we are making do not come easily, but they are necessary,” Director Bromwich noted. “We are committed to delivering on reforms that are needed to ensure that America's offshore energy resources are developed safely and responsibly.”

Salazar said the restructuring called for in his Secretarial Order is based on the premise that the missions within the Bureau of Ocean Energy Management, Regulation and Enforcement – including Outer Continental Shelf resource management, safety and environmental oversight and enforcement, and revenue collection – need to be clearly defined and distinct from each other. Bromwich said the reform efforts are crucial to ensuring that Interior carries out its responsibilities effectively and in a manner that facilitates the balanced, responsible, and sustainable development of the resources entrusted to the Department.

The texts of Secretary Salazar's and Director Bromwich's testimonies are at:
http://www.doi.gov/news/speeches/2010_07_22_testimony.cfm
http://www.doi.gov/news/speeches/2010_07_22_testimony_ks.cfm

http://www.doi.gov/news/pressreleases/Secretary-Salazar-Director-Bromwich-Testify-on-Progress-of-Interiors-Offshore-Energy-Reforms.cfm
July 21, 2010

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BOEMRE Issues Additional Updates to FAQ for NTL 2010-N06

The BOEMRE has added another page of questions and answers to the Frequently Asked Questions (FAQs) for NTL No. 2010-N06. Originally issued on June 26, 2010 this list was updated previously on July 15, 2010. Additional topics in this revision include inclusion of additional factors that support worst case discharge determinations (discussed in 30 CFR 254.47), a definition of "producible reservoir", examples of geologic evidence that might be submitted to support worst-case discharge scenarios, and additional details to be included regarding drilling a relief well.

http://www.gomr.mms.gov/homepg/regulate/regs/ntls/2010NTLs/10-n06-FAQs.pdf
July 19, 2010

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Bromwich to Host Public Meetings Nationwide to Discuss Deepwater Drilling Safety, Containment and Spill Response

Michael R. Bromwich, Director of the Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEM), announced today that he will be leading a series of public meetings to collect information and views about deepwater drilling safety reforms, blowout containment, and oil spill response. Bromwich will be soliciting input from the general public, state and local leaders, and experts from academia, the environmental community, and the oil and gas industry.

The suspensions announced last week established a temporary pause of deepwater drilling in order to address issues related to drilling, blowout containment, and oil spill response, including to allow time to collect additional information regarding these issues through public outreach and ongoing investigations into the Deepwater Horizon incident.

“Because we're interested in getting input from a variety of sources, we plan to hold the meetings in seven states – Alabama, Alaska, California, Florida, Louisiana, Mississippi, and Texas,” Bromwich said. “We're working on finalizing the planning for these meetings, including the specific locations and dates, and will have another announcement with those details very soon.”

Meetings are currently being scheduled to occur in August in the following cities: New Orleans, LA, Lafayette, LA, Mobile, AL, Pensacola, FL, Santa Barbara, CA, and Anchorage, AK. Meetings will be held in early September in the following cities: Biloxi, MS and Houston, TX.

http://www.gomr.mms.gov/homepg/whatsnew/newsreal/2010/100719.pdf
July 19, 2010

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Obama Administration Announces Final Recommendations of the Ocean Policy Task Force

Obama Administration officials released the Final Recommendations of the Ocean Policy Task Force, which would establish a National Policy for the Stewardship of the Ocean, Coasts, and Great Lakes (National Policy) and create a National Ocean Council (NOC) to strengthen ocean governance and coordination. The Final Recommendations prioritize actions for the NOC to pursue, and call for a flexible framework for coastal and marine spatial planning to address conservation, economic activity, user conflict, and sustainable use of the ocean, our coasts and the Great Lakes.

The NOC would coordinate across the Federal Government to implement the National Policy. The Final Recommendations also call for the establishment of a Governance Coordinating Committee to formally engage with state, tribal, and local authorities. The Final Recommendations are expected to be adopted into an Executive Order by President Obama.

http://www.whitehouse.gov/administration/eop/ceq/Press_Releases/July_19_2010
July 16, 2010

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Director Bromwich Discusses Offshore Drilling Reforms with Industry and Conservation Stakeholders

Michael R. Bromwich, director of Interior's Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), and other officials from BOEMRE held discussions with industry and conservation stakeholders and elected officials from Louisiana regarding offshore drilling safety issues and reforms that the agency is implementing to raise the bar for industry practices.



http://www.doi.gov/news/pressreleases/Director-Bromwich-Discusses-Offshore-Drilling-Reforms-with-Industry-and-Conservation-Stakeholders.cfm
July 15, 2010

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Bill Approved: House Passes CLEAR Act, Including Sweeping Industry Changes

On July 15, 2010, the House Natural Resources Committee, approved the “Consolidated Land, Energy, and Aquatic Resources (CLEAR) Act" (H.R. 3534). The updated version of the bill approved by the Committee includes significant and wide-ranging reforms. Among the bill's highlights include provisions to formally replace the MMS with three separate agencies, enhance OCS safety regulations, amend royalty legislation, add restrictions to lease bidding qualifications, add new requirements to exploration plans, increase rig inspections, repeal royalty-in-kind program and royalty relief legislation, require additional environmental considerations in planning and increase current penalties. Follow the link to the section-by-section description of the bill or view JCCRegs related resources for further information.

http://resourcescommittee.house.gov/images/Documents/clear%20act%20-%20section-by-section%20-%20july%2012%202010.pdf
July 15, 2010

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BOEMRE Issues Updated FAQs for NTL No. 2010-N06

The BOEMRE has added 2 1/2 pages of questions and answers to the Frequently Asked Questions (FAQs) for NTL No. 2010-N06, originally issued on June 26, 2010. Additional topics include instructions for calculating daily discharge rates and further guidelines regarding the submittal of assumptions made and calculations used to determine WCD volume. This FAQ also addresses the presence of restrictions in the wellbore, consideration of the BOP and gives further instructions for submittal of data required by NTL 2010-N06.

http://www.gomr.mms.gov/homepg/regulate/regs/ntls/2010NTLs/10-n06-FAQs.pdf
July 15, 2010

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BP Liable for Reporting and Royalties on Oil and Gas from Leaking Well

Interior's chief oil and gas regulatory official has informed BP that it must report all oil and gas-related activities at the damaged Macondo well and pay royalties on all oil and gas captured from the leaking well. The company also will be liable for royalties on lost or wasted oil and gas if it is determined that negligence or regulatory violations caused or contributed to the Deepwater Horizon explosion and subsequent leak.

http://www.doi.gov/news/doinews/BP-Liable-for-Reporting-and-Royalties-on-Oil-and-Gas-from-Leaking-Well.cfm
July 12, 2010

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Secretary Salazar Issues New Suspensions to Guide Safe Pause on Deepwater Drilling

Bromwich to Engage Public, Industry and Stakeholders in Deepwater Drilling Safety Reforms

WASHINGTON, D.C. – Secretary of the Interior Ken Salazar today directed the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEM) to issue new suspensions of deepwater drilling on the Outer Continental Shelf (OCS), saying a pause is needed to ensure that oil and gas companies first implement adequate safety measures to reduce the risks associated with deepwater drilling operations and are prepared for blowouts and oil spills.

Shallow water drilling activities that use different technologies do not present the same type or level of risks as deepwater drilling operations and can continue to move forward if operators are in compliance with all safety and environmental requirements, including new safety and environmental requirements implemented through recent Notices to Lessees. Production activities in federal waters of the Gulf are not affected by the deepwater drilling suspensions.

“More than eighty days into the BP oil spill, a pause on deepwater drilling is essential and appropriate to protect communities, coasts, and wildlife from the risks that deepwater drilling currently pose,” said Secretary Salazar. “I am basing my decision on evidence that grows every day of the industry's inability in the deepwater to contain a catastrophic blowout, respond to an oil spill, and to operate safely.”

Secretary Salazar's decision to impose new deepwater drilling suspensions is based on his authorities and responsibilities under the Outer Continental Shelf Lands Act (OCSLA) to ensure safe operations on the OCS. The new decision is supported by an extensive record of existing and new information indicating that allowing new deepwater drilling to commence would pose a threat of serious, irreparable, or immediate harm or damage to the marine, coastal, and human environment.

In a decision memorandum to BOEM Director Michael R. Bromwich, Salazar said that a temporary pause on deepwater drilling will provide time to implement recent safety reforms and for:

1. The submission of evidence by operators demonstrating that they have the ability to respond effectively to a potential oil spill in the Gulf, given the unprecedented commitment of available oil spill response resources that are now being dedicated to the BP oil spill;

2. The assessment of wild well intervention and blowout containment resources to determine the strategies and methods by which they can be made more readily available should another blowout occur; and

3. The collection and analysis of key evidence regarding the potential causes of the April 20, 2010 explosion and sinking of the Deepwater Horizon offshore drilling rig, including information collected by the Presidential Commission and other investigations.

In this period, the Department and BOEM will also be issuing and implementing interim safety rules in accordance with recommendations in the 30-Day Safety Report that Secretary Salazar submitted to the President on May 27, 2010.

The suspensions ordered today will last until November 30, 2010, or until such earlier time that the Secretary determines that deepwater drilling operations can proceed safely.

To help inform decisions about deepwater drilling safety reforms Secretary Salazar today also asked Director Bromwich to engage in an active public outreach effort with industry, academic experts, the public and other interested parties, and to prepare a report with recommendations on deepwater drilling.

“I remain open to modifying the new deepwater drilling suspensions based on new information,” said Secretary Salazar, “but industry must raise the bar on its practices and answer fundamental questions about deepwater safety, blowout prevention and containment, and oil spill response.”

The new suspensions apply to drilling operations that use subsea blowout preventers (BOP) or surface BOPs on floating facilities.

Like the deepwater drilling moratorium lifted by the District Court on June 22, the deepwater drilling suspensions ordered today apply to most deepwater drilling activities and could last through November 30. The suspensions ordered today, however, are the product of a new decision by the Secretary and new evidence regarding safety concerns, blowout containment shortcomings within the industry, and spill response capabilities that are strained by the BP oil spill. Moreover, the new decision by the Secretary establishes a process through which BOEM will gather and analyze new information from the public, experts, stakeholders, and the industry on safety and response issues, which could potentially provide the basis for identifying conditions for resuming certain deepwater drilling activities. In addition, the May 28 moratorium proscribed drilling based on specific water depths; the new decision does not suspend activities based on water depth, but on the basis of the drilling configurations and technologies.

Secretary Salazar's decision memorandum on the new deepwater drilling suspensions is available here.

To view a Q and A document regarding the suspension decision, click here.

http://www.doi.gov/news/doinews/Secretary-Salazar-Issues-New-Suspensions-to-Guide-Safe-Pause-on-Deepwater-Drilling.cfm
July 09, 2010

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BOEMRE Issues Updated FAQ Regarding NTL 2010-N05

On June 18, 2010, the Notice to Lessees (NTL) 2010-N05 was issued. In an effort to answer questions concerning this NTL, the Bureau of Ocean Energy Management, Regulation, and Enforcement has developed and posted an updated list with more “Frequently Asked Questions (FAQs).” The FAQs information sheet can be found at the following link:

http://www.gomr.mms.gov/homepg/regulate/regs/ntls/2010NTLs/10-n05-FAQs.pdf
July 06, 2010

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Reduced Skimming Capacity May Bolster Interior's Fight for Drilling Ban

The Obama administration may succeed in pushing through its offshore drilling ban, despite fierce resistance from the oil industry, since a piece of machinery in short supply has left oil companies and the environment glaringly vulnerable to another oil spill.

The offshore skimming devices -- seagoing vessels that suck up spilled crude -- are the first line of defense in the contingency plans that big oil companies are required to submit when they drill in the deep waters of the U.S. Gulf of Mexico.

The vast majority of skimming capacity listed in "worst case scenario" plans to combat major Gulf spills is already deployed to clean up BP's leak, according to copies of the plans made public by Congress and lists of vessels active in the cleanup that were obtained by Reuters.
With few skimmers in reserve, any new spill could be harder to fight, including one caused by a hurricane during the Atlantic storm season that forecasters say could be one of the most intense on record.

That may give U.S. Interior Secretary Ken Salazar the justification he needs to quickly issue a new deepwater drilling ban after a district court struck a first one down.

http://www.reuters.com/article/idUSTRE6650ZA20100706
June 30, 2010

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Temporary Suspension of USCG / EPA Requirements to Increase Cleanup Resources

This joint Coast Guard and Environmental Protection Agency (EPA) temporary interim rule will suspend oil spill response time requirements, and certain identification and location requirements, for facilities and vessels whose response resources are relocated in support of the Deepwater Horizon SONS response. By providing oil spill removal organizations (OSROs), and facilities and vessels with their own response resources, with the temporary opportunity to relocate response resources from current locations to the Gulf of Mexico, this rule directly assists in the urgently needed immediate relocation of nationwide oil spill response resources to the Gulf of Mexico to aid in the response to the Deepwater Horizon SONS. The rule also provides notice that the Federal On-Scene Coordinator for the Deepwater Horizon SONS has requested the Armed Forces to relocate Armed Forces oil spill response resources, in particular those of the Navy, from their current locations to the Gulf of Mexico to aid in the response to the Deepwater Horizon SONS.

http://edocket.access.gpo.gov/2010/2010-16005.htm
June 30, 2010

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Open Meeting: National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling

This notice announces an open meeting of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling (the Commission). The Commission was organized pursuant to the Federal Advisory Committee Act, which requires that agencies publish these notices in the Federal Register.

http://edocket.access.gpo.gov/2010/2010-15985.htm
June 26, 2010

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BOEMRE ITL: FAQ Regarding NTL 2010-N06

On June 18, 2010, the Notice to Lessees (NTL) 2010-N06 was issued. In an effort to answer questions concerning this NTL, the Bureau of Ocean Energy Management Regulation and Enforcement has developed and posted answers to a list of “Frequently Asked Questions (FAQs).” The FAQs information sheet can be found at the following link:

http://www.gomr.mms.gov/homepg/regulate/regs/ntls/ntl_lst.html
June 26, 2010

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BOEMRE ITL: FAQ Regarding NTL 2010-N05

On June 8, 2010, the Notice to Lessees (NTL) 2010-N05 was issued. In an effort to answer questions concerning this NTL, the Bureau of Ocean Energy Management Regulation and Enforcement has developed and posted answers to a list of “Frequently Asked Questions (FAQs).” The FAQs information sheet can be found at the following link:

http://www.gomr.mms.gov/homepg/regulate/regs/ntls/ntl_lst.html
June 25, 2010

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Secretarial Memo to DOI employees prohibiting enforcement of Drilling Moratorium

On June 22, 2010, the District Court for the Eastern District of Louisiana ordered a preliminary injunction prohibiting Department of Interior (DOI) employees and the newly renamed Bureau of Ocean Energy from enforcing the Moratorium, entitled “Suspension of Outer Continental Shelf (OCS) Drilling of New Deepwater Wells,” dated May 28, 2010, and NTL No. 2010-N04 seeking implementation of the Moratorium, as applied to all drilling on the OCS in water at depths greater than 500 feet. To address this injunction, the Secretary of the Interior has circulated a memo to all DOI employees instructing them "not to take any action to enforce the Moratorium...or to enforce" the NTL until additional orders are received from the Secretary.

June 25, 2010

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Better Oil Spill Response Plan Act of 2010

Rep. Edward J. Markey introduced legislation that would push the oil industry to improve their oil spill response plans. This Act contains remedies to problems that were discovered after detailed reviews of response plans following the Deepwater Horizon incident. For more information on this act, please see the below link.

http://www.scribd.com/doc/33573559/Better-Oil-Spill-Response-Plan-Act-of-2010-as-Introduced-by-Rep-Markey-on-6-25-2010
June 24, 2010

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Investigative / Compliance Team Launched for Bureau of Ocean Energy

Michael R. Bromwich, the former Department of Justice Inspector General who now leads Interior Department reform initiatives to strengthen oversight and policing of offshore oil and gas development, today announced that he will establish an investigations and review unit that will help to expedite his oversight, enforcement and re-organization mandates.

http://www.gomr.mms.gov/homepg/whatsnew/newsreal/2010/100623.pdf
June 21, 2010

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Judge Blocks Offshore Drilling Moratorium

A federal judge in New Orleans has blocked a six-month moratorium on new deepwater drilling projects that was imposed in response to the massive Gulf oil spill.

http://online.wsj.com/article/SB10001424052748704853404575322942341022322.html?mod=googlenews_wsj
June 21, 2010

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Salazar Swears-In Michael R. Bromwich to Lead Bureau of Ocean Energy

Secretary of the Interior Ken Salazar today swore-in former Justice Department Inspector General Michael Bromwich to lead reforms that will strengthen oversight and policing of offshore oil and gas development.

Bromwich will oversee the fundamental restructuring of the former Minerals Management Service, which was responsible for overseeing oil and gas development on the Outer Continental Shelf. A Secretarial Order that Salazar has signed renames the Minerals Management Service the Bureau of Ocean Energy Management, Regulation and Enforcement (“Bureau of Ocean Energy” or “BOE”) as it undergoes reorganization and reform.

“Michael Bromwich has a strong track record of reforming the way organizations work, both in the public and private sectors,” Salazar said. “He will be a key part of our team as we continue to change the way the Department of the Interior does business, help our nation transition to a clean energy future, and lead the reforms that will raise the bar for offshore oil and gas operations.”

The Secretarial Order renaming MMS as the Bureau of Ocean Energy is one of several organizational reforms that Bromwich will lead. Bromwich is working with Assistant Secretary for Land and Minerals Wilma Lewis; Assistant Secretary for Policy Management and Budget Rhea Suh; and Senior Advisor Chris Henderson on the implementation program for restructuring of the agency's oil and gas management missions.

http://www.doi.gov/news/pressreleases/Salazar-Swears-In-Michael-R-Bromwich-to-Lead-Bureau-of-Ocean-Energy-Management-Regulation-and-Enforcement-Secretarial-Order-Begins-Reorganization-of-Former-MMS.cfm
June 19, 2010

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Louisiana Office of Conservation Issues Emergency Rule

The Emergency Rule is intended to provide greater protection to the public health, safety and welfare of the people of the State, as well as the environment generally by adopting new operational and safety requirements for the drilling and completion of oil and gas wells at water locations. The Emergency Rule is modeled after the U.S. Department of the Interior's Mineral Management Service Rules and Regulations, which are generally regarded as the most stringent and protective drilling and completion rules currently adopted within the United States. Specifically, the Emergency Rule creates a new Chapter within Statewide Order No. 29-B (LAC 43:XIX.Chapter 2) to provide additional rules concerning the drilling and completion of oil and gas wells at water locations, specifically providing for the following: rig movement and reporting, casing, diverter systems and blowout preventers, oil and gas well-workover operations, fire hazards, and drilling fluids. Further, the Emergency Rule amends Statewide Order No. 29-B-a (LAC 43:XIX.Chapter 11) to provide for and expand upon rules concerning the required use of storm chokes during the drilling or completion of oil and gas wells at water locations.

After implementation of the Emergency Rule, Conservation will initiate rule making to promulgate new permanent regulations which ensure increased operational and safety requirements for the drilling or completion of oil and gas wells at water locations within the State.

The emergency rules may be viewed in their entirety at the link below.


http://dnr.louisiana.gov/cons/orders/emergency-order29.pdf
June 18, 2010

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MMS NTL 2010-N06: Additional Information Requirements for EPs, DPPs and DOCDs

The purpose of this NTL is to rescind the limitations set forth in NTL 2008-G04 regarding a blowout scenario and worst case discharge scenario and to provide national guidance to Lessees and Operators regarding the content of the information the MMS requires in your blowout scenario and worst case discharge scenario descriptions.

This NTL does not apply to your plan if the only activity you wish to conduct under your plan is under an APD that was approved by MMS prior to the date hereof, except that deepwater activities under an approved APD that are subject to the suspensions ordered to implement the drilling moratorium imposed on May 29, 2010 are also subject to the information requirements in this NTL.

Pursuant to this NTL, you must submit the following information with your new EP, DPP or DOCD, or as a supplement to your previously submitted plan:


  • A blowout scenario as required by 30 CFR 250.213(g) and 250.243(h). Provide a scenario for the potential blowout of the proposed well in your plan or document that you expect will have the highest volume of liquid hydrocarbons. Include the estimated flow rate, total volume, and maximum duration of the potential blowout. Discuss the potential for the well to bridge over, the likelihood for surface intervention to stop the blowout, the availability of a rig to drill a relief well and rig package constraints. Specify as accurately as possible the time it would take to contract for a rig, move it onsite, and drill a relief well, including the possibility of drilling a relief well from a neighboring platform or an onshore location.

  • Describe the assumptions and calculations that used to determine the volume (daily discharge rate) of your worst case discharge scenario required by 30 CFR 250.219(a)(2)(iv) (for EPs) or 30 CFR 250.250(a)(2)(iv) (for DPPs and DOCDs). Provide all assumptions you made concerning the well design, reservoir characteristics, fluid characteristics and pressure volume temperature (PVT) characteristics; any analog reservoirs you considered in making those assumptions; an explanation of your reasons for using those analog reservoirs and the supporting calculations and models you used to determine the daily discharge rate possible from the uncontrolled blowout portion of you worst case discharge scenario for both your proposed or approved EP, DPP or DOCD worst-case discharge scenario and your proposed or approved regional Oil Spill Response Plan (OSRP) worst-case discharge scenario used in your comparison.

  • Describe the measures you propose that would enhance your ability to prevent a blowout, to reduce the likelihood of a blowout, and conduct effective and early intervention in the event of a blowout, including your arrangements for drilling relief wells, and any other measures you propose.



http://www.gomr.mms.gov/homepg/regulate/regs/ntls/2010NTLs/10-n06.pdf
June 15, 2010

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Secretary Salazar Appoints Michael R. Bromwich to Lead Reforms at MMS

Secretary of the Interior Ken Salazar today named former Justice Department Inspector General Michael R. Bromwich to lead reforms at the Minerals Management Service as the agency is restructured, the Department of the Interior strengthens oversight and policing of offshore oil and gas development, and the nation builds a clean energy future.

"Michael Bromwich has vast experience improving the way organizations work, both within the government and in the private sector,” Salazar said. “He is an ideal choice to change how the agency does business, to lead the reforms that will raise the bar for offshore oil and gas operations, and to help our nation transition to a clean energy future."

Since May 28, Bureau of Land Management Director Bob Abbey has been serving as Interim Acting Director of the Minerals Management Service. Abbey will return to serving as full-time director of the BLM.

Over the last several weeks, Secretary Salazar has continued his agenda to change how the Department of the Interior does business, including launching several reforms to the management and oversight of offshore energy operations.

http://doi.gov/news/pressreleases/Secretary-Salazar-Appoints-Michael-R-Bromwich-to-Lead-Reforms-to-Oil-and-Gas-Industry-Oversight-and-Regulation.cfm
June 08, 2010

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MMS NTL 2010-N05: New Safety Rules

A new NTL issued today by the MMS implements certain safety measures outlined in the report entitled "Increased Safety Measures for Energy Development on the Outer Continental Shelf", dated May 27, 2010. The President requested that the Department of the Interior develop this report as a result of the Deepwater Horizon incident.

On June 2, 2010, the Secretary of the Interior directed the MMS Director to adopt the recommendations contained in the Safety Measures Report and to implement them as soon as possible.

This NTL addresses recommendations of the Safety Measures Report that warrant immediate implementation, identifying specific recommendations from the Report and providing guidance to lessees and operators on the requirements they must meet. These recommendations apply to all activities on the OCS, including deepwater activity suspended under the Notice to Lessees to Implement the Presidential Directive to Impose a Moratorium on all New Deepwater Wells (NTL No. 2010-N04 - Moratorium NTL), and shallow water operations (under 500 feet in depth).

http://www.doi.gov/deepwaterhorizon/loader.cfm?csModule=security/getfile&PageID=34536
June 01, 2010

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Attorney General Announces Criminal Investigation of Incident

Attorney General Eric Holder said today that the federal government has launched criminal and civil investigations into the oil spill in the Gulf of Mexico that is now the worst in U.S. history. Holder declined to name the specific companies or individuals under investigation but said the criminal investigation has already been going on for "some weeks," reported ABC's George Stephanopoulos, who attended the afternoon press conference.

http://abcnews.go.com/WN/bp-gulf-oil-spill-cut-cap-begins-president/story?id=10797393
May 30, 2010

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MMS NTL 2010-N04: Drilling Moratorium

The Six-Month Deepwater Moratorium as set forth in this Notice to Lessees and Operators (“Moratorium NTL”) directs you to cease drilling all new deepwater wells, including any wellbore sidetracks and bypasses; prohibits you from spudding any new deepwater wells; and puts you on notice that, except as provided herein, MMS will not consider for six months from the date of this Moratorium NTL drilling permits for deepwater wells and for related activities as set forth herein. For the purposes of this Moratorium NTL, “deepwater” means depths greater than 500 feet.

http://www.mms.gov/ntls/PDFs/MORATORIUM_NTL.pdf
May 28, 2010

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BLM Director to Serve as Acting Director of the MMS

Secretary of the Interior Ken Salazar today announced that Bureau of Land Management Director Bob Abbey will serve as acting director of the Minerals Management Service (MMS).

Abbey will begin the process of managing the reorganization of MMS into three separate agencies. He will remain BLM director during this period but will turn over his daily management duties to deputy director Mike Poole.

http://www.mms.gov/ooc/press/2010/press0528.htm
May 27, 2010

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Salazar Calls for New Safety Measures, Orders Six Month Moratorium on Deepwater Drilling

To improve the safety of oil and gas development in federal waters, provide greater environmental protection and substantially reduce the risk of catastrophic events such as the BP Deepwater Horizon oil spill, Secretary of the Interior Ken Salazar today called for aggressive new operating standards and requirements for offshore energy companies and ordered a six-month moratorium on deepwater drilling. He also canceled a pending lease sale in the Gulf of Mexico and a proposed lease sale off the coast of Virginia, and suspended proposed exploratory drilling in the Arctic.

http://www.mms.gov/ooc/press/2010/press0527.htm
May 27, 2010

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DOI Issues 30-Day Safety Report

On April 30, 2010, the President directed the Secretary of the Interior to conduct a thorough review of the Deepwater Horizon event and to report, within 30 days, on ¯what, if any, additional precautions and technologies should be required to improve the safety of oil and gas exploration and production operations on the outer continental shelf. This report responds to the President's directive.

The Secretary recommends a series of steps immediately to improve the safety of offshore oil and gas drilling operations in Federal waters and a moratorium on certain permitting and drilling activities until the safety measures can be implemented and further analyses completed.

The report recommends a number of specific measures designed to ensure sufficient redundancy in the blowout preventers (BOPs), to promote the integrity of the well and enhance well control, and to facilitate a culture of safety through operational and personnel management. Recommended actions include prescriptive near-term requirements, longer-term performance-based safety measures, and one or more Department-led working groups to evaluate longer-term safety issues. The recommendations take into account that drilling activities conducted in the deepwater environment create increased risks and challenges.

http://www.doi.gov/deepwaterhorizon/loader.cfm?csModule=security/getfile&PageID=33598
May 27, 2010

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Obama Orders Halt to Deepwater Drilling in the Gulf

The president announced new steps to restrict drilling, including continuing a moratorium on drilling permits for six months, suspending planned exploratory drilling off the coasts of Alaska and Virginia and ordering a halt to 33 exploratory deep-water rigs in the Gulf of Mexico.

http://www.washingtonexaminer.com/politics/ap/obama-to-face-reporters-delay-new-drilling-permits-in-heightened-response-to-gulf-oil-spill-94998099.html#ixzz0pEpzM8XL
May 27, 2010

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MMS Director Birnbaum Resignation

Under intense pressure to show that President Obama is taking action on the oil spill crisis, White House officials Thursday made clear that the top oil regulator at the Department of Interior had been forced out.

Elizabeth Birnbaum, the director of the U.S. Minerals Management Service, was given the opportunity to work elsewhere in the government but resigned instead, officials said.

The officials spoke on condition of anonymity, in order to talk candidly about a personnel change, moments after Birnbaum's boss, Interior Secretary Ken Salazar, praised her as "a strong and effective person and leader" and said she "resigned today on her own terms and on her own volition."

In a joint statement with Salazar, Birnbaum said she was "hopeful that the reforms that the Secretary and the Administration are undertaking will resolve the flaws in the current system that I inherited."

The conflicting messages came as the crisis consumed attention in Washington, where Obama held his first news conference since the spill began, and in the gulf, where the company and the government continued frantic attempts to cut off the flow of oil.

http://www.washingtonpost.com/wp-dyn/content/article/2010/05/27/AR2010052703302.html
May 25, 2010

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Commerce Department Declares Fishery Failure in Louisiana

At the request of Governor Bobby Jindal, the U.S. Department of Commerce has declared a commercial fisheries failure for Louisiana, triggering much-needed aid for commercial fishermen from the Economic Development Administration.

http://emergency.louisiana.gov/Releases/05252010-fisheries.html
May 22, 2010

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Joint Industry Task Force Drafts Recommendations to Address Offshore Operating Procedures and Equipment

In response to the Gulf of Mexico (GOM) incident, the oil and gas industry, with the assistance of the American Petroleum Institute (API), has assembled two task forces to focus on critical areas of GOM offshore activity: the Offshore Operating Procedures Task Force and the Offshore Equipment Task Force.

Task force sessions began on 10 May and participants are working expeditiously to provide recommendations to the U.S. Department of the Interior Outer Continental Shelf Safety Oversight Board.

The task forces are not involved in the review of the incident, but bring together industry experts to identify best practices in offshore drilling operations and equipment, with the ultimate goal of enhancing safety and environmental protection.

A draft of the recommendations can be found at the link below.

http://online.wsj.com/public/resources/documents/DRAFTJITFRecommendations1.pdf
May 22, 2010

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Executive Order - National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling

The Executive order of the President of the United States establishes the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling (the "Commission"). The commission is charged with examining the relevant facts and circumstances concerning the root causes of the Deepwater Horizon oil disaster; developing options for guarding against, and mitigating the impact of, oil spills associated with offshore drilling, taking into consideration the environmental, public health, and economic effects of such options; and submitting a final public report to the President with its findings and options for consideration within 6 months of the date of the Commission's first meeting.


http://www.whitehouse.gov/the-press-office/executive-order-national-commission-bp-deepwater-horizon-oil-spill-and-offshore-dri
May 19, 2010

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DOI Secretarial Order for Restructuring and MMS Oversight

Secretary of the Interior Ken Salazar today signed a Secretarial Order that will lead to the fundamental restructuring of the Minerals Management Service and the division of its three conflicting missions into separate entities with independent missions to strengthen oversight of offshore energy operations, improve the structure for revenue and royalty collections on behalf of the American people, and help the country build a clean energy future.

http://www.mms.gov/ooc/pdfs/DOI_pressrelease/SecretaryOrder3299.pdf
May 17, 2010

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Review of MMS NEPA Policies, Practices, and Procedures for OCS Oil and Gas Exploration and Development

On May 17, 2010, the Council on Environmental Quality (CEQ) informed the Department of the Interior (DOI) that CEQ was conducting a 30 day review National Environmental Policy Act (NEPA) policies, practices, and procedures for the MMS decisions for OCS oil and gas exploration and development.

This review of MMS NEPA policies, practices and procedures is being conducted as a result of the oil spill from the Deepwater Horizon well and drilling rig. The purpose of this review is to ascertain how MMS applies NEPA in its management of OCS oil and gas exploration and development and make recommendations for revisions. The scope of the review is intended to be holistic, i.e. from leasing decisions to drilling and production.

http://edocket.access.gpo.gov/2010/pdf/2010-13111.pdf
May 13, 2010

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Restructure of MMS

Secretary Salazar announced that he intends to restructure the Minerals Management Service (MMS) in order to establish a separate and independent safety and environmental enforcement entity. Salazar said the MMS's inspection, investigation, and enforcement operations will be separate and independent from the agency's leasing, revenue collection, and permitting functions.

http://www.doi.gov/news/pressreleases/Salazar-Names-Senior-Interior-Officials-to-Lead-Minerals-Management-Service-Restructuring.cfm
May 12, 2010

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Raising the Liability Caps

To deal more generally with the harms created by oil spills as well as to toughen and update these laws, the bill would, for any single incident, raise the statutory expenditure limitation for the Oil Spill Liability Trust Fund from $1 billion to $1.5 billion and the cap on natural resource damage assessments and claims from $500 million to $750 million. The proposal would also raise the caps on liability for responsible parties.


http://www.whitehouse.gov/the-press-office/fact-sheet-deepwater-horizon-oil-spill-legislative-package
May 11, 2010

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BP, Transocean and Halliburton Give Congressional Testimony

Executives of the three companies testified before the Senate Energy and Natural Resources Committee.

http://www.nola.com/news/gulf-oil-spill/index.ssf/2010/05/gulf_oil_spill_testimony_to_co.html
May 11, 2010

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Louisiana Issues Orders in Response to Incident

Having already declared a state of emergency Louisiana Governor, Bobby Jindal, issued orders to oil and gas operators in affected parishes to take specific actions and remain on alert for the need to modify operations due to the affects of the spill.

http://dnr.louisiana.gov/cons/orders/emergency-oil-sprill-2010-2.pdf
May 11, 2010

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Exploration Plan Timeline

The Obama Administration, in the oil spill response legislation it is submitting to Congress, is proposing to eliminate a 30-day congressionally-mandated deadline for the Minerals Management Service (MMS) to act on exploration plans that oil and gas companies submit. Changing this 30-day mandatory deadline to a 90-day timeline that can be further extended to complete environmental and safety reviews, as needed, would provide MMS more time to conduct additional environmental analysis on an exploration plan.

http://www.doi.gov/news/pressreleases/Salazar-Names-Senior-Interior-Officials-to-Lead-Minerals-Management-Service-Restructuring.cfm
May 10, 2010

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MMS ITL: Handling Oiled Wildlife

As part of the response efforts to the Deepwater Horizon incident, the MMS forwarded information regarding handling of oiled wildlife on behalf of the Unified Command located in Houma, Louisiana. Procedures involve contacting the Oiled and Injured Wildlife Hotline (1-866-557-1401) and providing location and contact information and providing temporary care of the wildlife.

http://www.gomr.mms.gov/homepg/regulate/regs/itls/100510.pdf
May 07, 2010

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Application for Permit to Drill Approvals

Interior Salazar announced that no applications for drilling permits will go forward for any new offshore drilling activity until the Department of the Interior completes the safety review process that President Obama has requested.


http://energycommerce.house.gov/Press_111/20100510/Briefing.Memo.oi.05.10.2010.pdf
April 30, 2010

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Obama Orders 30-Day Review of Incident

President Barack Obama today said that he has ordered his secretary of Interior to conduct a 30-day review to determine if any additional safety technologies should be required to prevent future accidents like the oil rig accident off Louisiana's coast that left 11 workers missing and caused significant environmental damage.

He also said that he has ordered federal regulators to check all the nation's oil rigs to ensure they are being operating safely.

http://www.nola.com/news/index.ssf/2010/04/obama_orders_review_of_gulf_of.html
April 30, 2010

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OCS Oversight Board

The Outer Continental Shelf Safety Oversight Board is established within the Department of the Interior with top officials to strengthen Outer Continental Shelf safety and improve overall management, regulation, and oversight of OCS operations.

http://elips.doi.gov/app_so/act_getfiles.cfm?order_number=3298
April 30, 2010

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MMS Safety Notice

Issued a safety notice to all operators, reminding them of their responsibilities to follow MMS regulations and to conduct full and thorough tests of their equipment.

http://www.gomr.mms.gov/homepg/offshore/safety/safealt/SA_002N.pdf
April 30, 2010

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MMS ITL: Reporting Evacuations and Shut-Ins

As part of the response efforts to the Deepwater Horizon incident, the MMS forwarded information regarding reporting requirements for evacuated production or drilling activities and curtailed production and/or resumed production due to the Deepwater Horizon incident.

http://www.gomr.mms.gov/homepg/regulate/regs/itls/ITL_evacuation_and_shut_in_information.pdf
April 30, 2010

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Incident Declared “Spill of National Significance”

Homeland Security Secretary Janet Napolitano today declared the Gulf of Mexico oil slick "a spill of national significance," meaning the government is designating more forces to contain its spread toward the U.S. coastline.

http://content.usatoday.com/communities/theoval/post/2010/04/obama-deals-with-oil-spill-of-national-significance/1
April 27, 2010

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Deepwater Operations Inspections

Secretary Salazar ordered immediate inspections of all deepwater operations in the Gulf of Mexico on April 26th. The inspections of deepwater drilling rigs found Incidents of Non-Compliance (INC) on two rigs. Those violations were corrected and no other violations were found. To view the April 26th inspection report, click here:

Inspections of deepwater production platforms are ongoing.

http://www.doi.gov/deepwaterhorizon/upload/05-11-10-MMS-Deepwater-Horizon-Rig-Inspection-Report.pdf
April 21, 2010

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Joint Investigation

Coast Guard Commandant Admiral Thad W. Allen, MMS Director S. Elizabeth Birnbaum, Homeland Security Secretary Janet Napolitano, and Interior Secretary Ken Salazar signed an order convening a joint USGS-MMS investigation of the Horizon incident to determine what happened. The joint investigation will have the power to issue subpoenas, hold public hearings, call witnesses, and take other steps that may be needed to determine the cause of the incident.

According to a statement released by federal officials, the joint investigation is classified as a Coast Guard Marine Board of Investigation as defined with Title 46, Code of Federal Regulations, Part 4.09 and a panel investigation as defined within Title 30, Code of Federal Regulations, Part 250.101.

David Dykes of MMS and Coast Guard Captain Hung Nguyen will co-chair the joint investigation. The joint investigation team will issue a single report to the MMS Director and the Coast Guard Commandant once they complete the probe. The report, which will be submitted simultaneously to both agencies, will contain the evidence brought forward, facts established, and conclusions and recommendations. The Commandant of the Coast Guard and the MMS Director will jointly sign and release the final report.



http://www.dhs.gov/xlibrary/assets/deepwater_horizon_investigaton.pdf

Excerpt from Federal Hearing on May 12, 2010

  • MMS regulation requires drillers to submit proof that the blowout preventer they are using is strong enough to slice clean through a drill pipe in an emergency.
  • The New Orleans-based Minerals Management Service engineer who gave BP permission to drill the exploratory well under the rig said he never received confirmation from BP that the emergency mechanism at the bottom of the Gulf of Mexico would be able to cut through its drill pipe to shut off the well.
  • Jason Matthews, an accident investigator for MMS, questioned the agency's New Orleans District drilling engineer, Frank Patton, about his approval of BP's drilling permit for the Deepwater Horizon.
  • A pair of high-pressure valves and blades called shear rams sit on the 450-ton blowout preventer at the bottom of the ocean and are supposed to be powerful enough to cut through a gushing drill pipe and close off a leaking well. All attempts to cut the Deepwater Horizon's pipes have failed.
  • Patton testified that he was unaware of any such regulation, saying the BP permit application contained "no information on blind shear rams' ability to shear the drill pipe used."
  • "That's one thing I don't look for in my approval process. I've never looked for that statement there," Patton said.
  • Matthews asked, "Is that just you, or is this MMS-wide?"
  • Patton said he wasn't sure.
  • Next, MMS inspector Eric Neal testified that he went to the rig for a monthly investigation on April 1, roughly 3 weeks before the explosion. That inspection includes witnessing tests, such as one measuring well pressures.
  • Neal testified that MMS inspectors write their test findings into official reports only if the rig's systems do not pass one of the tests.
  • A record of test results would help give an idea of what went wrong.
  • Neal's father, Robert Neal, also testified. He said he had inspected the Deepwater Horizon in February and March. In his notes from February, he recorded a loss of circulation in the well, but there was no such note in March.
  • Hearings will resume on May 28 and 29.

For further information contact Cathy Thornton (cathy.thornton@jccteam.com) at JCC 281-578-3388

This Regulatory Alert was prepared by J. Connor Consulting, Inc. to advise our clients of impending deadlines and applicable regulatory requirements. No official agency policy is implied.