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Report: Interior Dept.'s reforms have made drilling safe enough to restart

By Ben Geman - 08/26/10 04:53 PM ET

A bipartisan think tank that analyzed the Interior Department’s response to the BP oil spill has concluded that recently imposed safety mandates are sufficient to allow resumption of deepwater drilling.

The finding by the Bipartisan Policy Center — founded by a quartet of former Senate majority leaders — could provide a political lift to lawmakers and oil industry groups pushing for the temporary moratorium to end before its scheduled Nov. 30 expiration.

The group’s Aug. 25 conclusion is part of a broader analysis provided to the White House-created commission investigating the oil spill and needed safety reforms.

The report notes Interior mandates — called notices to lessees — in June that require third-party certification of blowout preventers, calculation of worst-case discharges and several other steps. While acknowledging that drilling risks cannot be reduced to zero, the report finds:

“[W]e are satisfied that compliance with the Interior Department’s NTLs 5 and 6 and other actions by the Department will achieve a significant and beneficial reduction of risk. If industry is diligent in incorporating these requirements and DOI is vigilant in oversight and enforcement, we believe this new regime will provide an adequate margin of safety to responsibly allow the resumption of deep water drilling in the Gulf of Mexico.”

However, it adds that allowing a resumption should not “detract” from longer-term safety and oversight measures, and concludes that even if drilling is allowed to begin again, some companies may not get back into the game.

“It is important to reiterate that compliance with these new requirements will pose greater challenges for some operators than for others. Moreover, it is possible that the costs and technical sophistication needed to comply with these new requirements may discourage some rigs and companies from future operation in the Gulf of Mexico. Although this outcome would be unfortunate, we believe it is imperative that all companies be held to a consistent and rigorous set of safety requirements,” states the analysis, which was provided to the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling.

Jason Grumet, the think tank’s president, told The Hill Thursday that it will take companies time to start operations even if the ban is quickly removed. “Even if the moratoria was lifted next week, there will be an appropriately elaborate process to demonstrate compliance with this new safety regime,” he said.

Founders of the Bipartisan Policy Center include former Sens. Bob Dole (R) and George Mitchell (D).

White House and Interior Department officials say they are open to ending the ban early — if they can ensure operations would proceed safely. Bureau of Ocean Energy Management, Regulation and Enforcement Director Michael Bromwich is holding a series of public meetings around the country to gather input on drilling policy.

“I appreciate that the Bipartisan Policy Center has acknowledged the work that we have and are doing to raise the bar since the Deepwater Horizon incident," Bromwich said in a statement Thursday. I am in the process of conducting meetings across the country with technical experts to see how we can allow deepwater drilling to safely resume. Before that, however, we need to ensure that workplace and drilling safety, spill response and containment issues are appropriately addressed by industry.”

Oil companies, many Republicans and Gulf Coast lawmakers from both parties say the deepwater drilling ban is causing economic harm to Gulf Coast states dependent on the offshore industry.


Source:
http://thehill.com/blogs/e2-wire/e2-wire/116005-report-interior-has-increased-safety-enough-to-allow-deepwater-drilling-to-resume
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