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U.S. Department of the Interior Proposes Regulations Governing Drilling Operations in the Arctic Outer Continental Shelf

The U.S. Department of the Interior (DOI) has proposed to revise and add new requirements to regulations for exploratory drilling and related operations. The proposed regulations are the first to codify requirements for such operations on the Arctic Outer Continental Shelf (OCS). These rules only apply to exploratory drilling and notably would require companies to create contingency plans in the event of a spill or rig malfunction. The DOI is accepting public comment on these proposed regulations until April 27, 2015.

Ensuring effective exploration while protecting Health and the Environment

  The proposed rules are designed to ensure safe and effective exploration of Arctic OCS oil and gas resources while protecting human health and the environment. Although there are no companies currently drilling in the Arctic, Shell plans to begin an Arctic exploration project in the Chukchi and Beaufort seas (the two Arctic areas north of Alaska that are within the United States’ jurisdiction) this year. ConocoPhillips and Statoil also have leases in the Arctic OCS. DOI’s proposed regulations stem from its discussion with Shell regarding its Arctic safety plan.

Regulations proposed by the Bureau of Ocean Energy Management & Bureau of Safety and Environmental Enforcement

  DOI, through its Bureau of Ocean Energy Management and Bureau of Safety and Environmental Enforcement, has proposed regulations that codify requirements that all Arctic offshore operators and their contractors are appropriately prepared for the Arctic’s abnormally remote and treacherous drilling conditions. Under the rules, operators would have :
  • to develop an integrated operations plan that details all of an exploration program’s phases
  • to submit region-specific oil spill response plans,
  • to have prompt access to source control and containment equipment
  • to construct and test an oil containment dome before drilling.

Requirements for Safety for and pollution prevention to perform drilling operations in Artic conditions

  This proposal adds new regulatory measures for exploratory drilling to a preexisting OCS oil and gas regulatory program. The Outer Continental Shelf Lands Act (OCSLA) governs oil and gas operations in the OCS. The Secretary of the Interior administers the OCSLA’s provisions relating to the leasing of and operations within the OCS. OCSLA and its regulations contain lease application procedures as well as requirements for safety, design, decommissioning, and pollution prevention and control. By proposing these additions to OCSLA’s regulations, the first of their kind for Arctic drilling, the DOI seeks to ensure that operators have the capability to effectively and safely perform their drilling operations in icy Arctic conditions. The DOI is accepting public comment on these proposed regulations until April 27, 2015. Red-on-line EHS Legal expert

Sources :

Oil and Gas and Sulphur Operations on the Outer Continental Shelf-Requirements for Exploratory Drilling on the Arctic Outer Continental Shelf, 80 FR 9915, February 24, 2015.

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