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Salazar: Deepwater Drilling ban lifted

10/18/2010

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Salazar: Deepwater Drilling May Resume for Operators Who Clear Higher Bar for Safety, Environmental Protection
10/12/2010
Contact: Kendra Barkoff, DOI (202) 208-6416
Melissa Schwartz, BOEM 202-208-3985



WASHINGTON, DC — Secretary of the Interior Ken Salazar has determined it is appropriate that deepwater oil and gas drilling resume, provided that operators certify compliance with all existing rules and requirements, including those that recently went into effect, and demonstrate the availability of adequate blowout containment resources. 

Secretary Salazar reached his decision after reviewing a report from Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEM) Director Michael R. Bromwich and considering other information on the progress of offshore oil and gas safety reforms, the availability of spill response resources, and improved blowout containment capabilities.

“In light of the Deepwater Horizon oil spill, we must continue to take a cautious approach when it comes to deepwater drilling and remain aggressive in raising the bar for the oil and gas industry’s safety and environmental practices,” said Salazar. “We have more work to do in our reform agenda, but at this point we believe the strengthened safety measures we have implemented, along with improved spill response and blowout containment capabilities, have reduced risks to a point where operators who play by the rules and clear the higher bar can be allowed to resume. The oil and gas industry will be operating under tighter rules, stronger oversight, and in a regulatory environment that will remain dynamic as we continue to build on the reforms we have already implemented.”

“There has been significant progress over the last few months in enhancing the safety of future drilling operations, and in addressing some of the weaknesses in spill containment and oil spill response,” said Director Bromwich. “More needs to be done – and more will be done to continuously improve the safety of deepwater drilling and to bolster the ability of the government and industry to respond in the case of a major blowout. But we believe the risks of deepwater drilling have been reduced sufficiently to allow drilling under existing and new regulations.”


Secretary Salazar based his decision to lift the deepwater drilling suspensions on information gathered in recent months, including a report from Director Bromwich on October 1, that shows significant progress in reforms to drilling and workplace safety regulations and standards, increased availability of oil spill response resources since the Macondo well was contained on July 15 and killed on September 19, and improved blowout containment capabilities. Director Bromwich prepared his October 1 report and recommendations based on extensive public outreach and information gathering, including the eight public forums he held around the country to assess safety, spill response, and blowout containment issues.

In his decision today, Secretary Salazar directs BOEM to require the following before approving drilling in deepwater that would have been subject to suspension under his July 12 Decision Memorandum:


Pursuant to applicable regulations, each operator must demonstrate that it has enforceable obligations that ensure that containment resources are available promptly in the event of a deepwater blowout, regardless of the company or operator involved. The Department of the Interior has a process underway regarding the establishment of a mechanism relating to the availability of blowout containment resources, and Secretary Salazar said he expects that this mechanism will be implemented in the near future.



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