E2 Morning Roundup: Alaska drilling fight heats up, EPA expands gas ‘fracking’ probe, and much more

Alaska governor sues Interior to allow Shell’s offshore drilling

Alaska Gov. Sean Parnell’s (R) administration filed a lawsuit Thursday alleging the Interior Department is illegally blocking oil-and-gas drilling in federal waters off the state’s northern coast.

Shell Oil has long been seeking federal permission to begin exploratory drilling in the Beaufort and Chukchi seas, but Interior is not allowing the action this year.

"Development of Alaska's OCS [Outer Continental Shelf] resources is of critical importance to Alaska's future and the economic and security interests of the United States," Parnell said in a prepared statement Thursday after the state filed suit in the U.S. District Court for the District of Alaska. "We are taking this action to ensure that the federal government abides by applicable federal law, including its legal responsibility to make the OCS available for expeditious and orderly development."

The lawsuit alleges there’s an illegal moratorium in place in shallow Arctic waters even though they’re not subject to the Interior Department’s formal deepwater drilling freeze, imposed after the BP oil spill began in the Gulf of Mexico.

Interior hits back

Interior immediately called the lawsuit baseless while defending its decision to slow development in Arctic waters.

“There is no moratorium in Alaska and therefore nothing to sue on. The moratorium is on deepwater drilling and there is no deepwater drilling in Alaska,” said spokeswoman Kendra Barkoff in an e-mail.



She added: “We are taking a cautious approach to offshore oil and gas development as we strengthen safety and oversight of offshore oil and gas operations. This includes the Arctic, which presents unique environmental challenges. We need additional information about spill risks and spill response capabilities which is why Secretary Salazar has delayed Shell’s request to drill in the Beaufort and Chukchi sea and canceled the remaining four lease sales in the Arctic. We look forward to working with the governor as we move forward."

Sen. Begich backs lawsuit

Sen. Mark Begich (D-Alaska) supports Parnell’s attack on Interior.

“I agree with the Governor’s message that an overreaching ban does not reflect Alaska’s unique conditions and fails to consider the impact on Alaska jobs and the Alaska economy,” he said in a prepared statement Thursday evening.

“The lack of consultation with Alaska in this process is an obvious oversight. I will continue to fight for the voices of Alaskans to be heard. The ban fails to recognize the strict standards and practices in Alaska and the clear difference between high pressure deepwater exploration and Alaska’s shallow water exploration,” Begich said.

Gas ‘fracking’ probe heats up

The Environmental Protection Agency is pressing drilling services companies for information about chemicals they’re using in a controversial onshore gas-drilling method called hydraulic fracturing, or “fracking.”

EPA wants data on the health and environmental effects of the fluids, information on the companies' operating procedures and other documents. The agency wants information from nine companies, including Halliburton and Schlumberger, as part of a major study on fracking that EPA is conducting.

Fracking involves high-pressure injections of chemicals, water and sand to break apart rock formations and enable trapped gas to flow. The technique has helped enable a boom in development of gas from shale rock formations in a number of states, but is bringing concerns about water contamination along with it.

The technique is also under investigation by House Democrats.

EPA asks nicely, for the moment

“By sharing information about the chemicals and methods they are using, these companies will help us make a thorough and efficient review of hydraulic fracturing and determine the best path forward,” EPA Administrator Lisa Jackson said in a prepared statement Thursday.

EPA, in announcing the data request, notes it “expects the companies to cooperate with these voluntary requests.” But the agency adds: “If not, EPA is prepared to use its authorities to require the information needed to carry out its study.”

Industry to make its case — decries EPA ‘threat’

The American Petroleum Institute said the industry has always been ready to cooperate. “We wonder why EPA felt a need to threaten legal action when the industry has said all along it wants to work with the agency through this study,” a spokesman tells The Hill.

EPA is holding a series of public meetings related to its study — the next round begins next week in upstate New York.

Natural-gas companies are battling proposals to expand federal regulation of the practice, which the industry calls safe and adequately regulated by the states.

Several bills floating around Capitol Hill would increase federal oversight of fracking by ending an exemption from certain Safe Drinking Water Act rules that the industry won in a 2005 energy law.

Companies including ExxonMobil have argued that adding new federal rules would endanger the shale-gas boom by making some projects uneconomical. The American Petroleum Institute is holding a conference call for reporters Friday to make its case ahead of the public hearing next week.

In case you missed it:

Here are a few E2 posts that ran Thursday:

Steelworkers union wants Obama to sue China over green energy subsidies

Brown, Wyden back push for green trade case against China

Report: BP lawyers allowed to ‘review’ accident study

Alaska GOP Senate candidate Miller to attend D.C. fundraisers

World Bank hires new green-energy lending czar

White House pressed on fuel efficiency

Inhofe leans on EPA for greenhouse gas info

Senate Environment and Public Works ranking member James Inhofe (R-Okla.) is pressing EPA to release comments the agency received from 13 states about whether they have the authority to regulate greenhouse gas emissions from power plants and other stationary sources under the Clean Air Act.

EPA — which is preparing to implement first-time climate rules — has said those states that do not have this authority would have to revise their permitting plans or the agency would assume responsibility.
 
Inhofe on Thursday said has not received an answer from EPA regarding a letter he sent the agency Aug. 18 regarding the comments from the states. "I think the agency would agree that this request is not complicated,” he said in a prepared statement. “The broader public, including Congress, should know the particular states' perspectives, legal or otherwise, on this important issue.” He is asking the agency to respond “without further delay.”

DOE steers cash to ocean renewables projects

The Department of Energy on Thursday announced a list of marine renewable-energy projects that will share more than $37 million in funding. Renewables advocates see big potential in generating power from wave, tidal, current and river flows, but it’s a fledgling industry.

“This funding represents the largest single investment of federal funding to date in the development of marine and hydrokinetic energy technologies,” Energy Secretary Steven Chu said in a prepared statement. “These innovative projects will help grow water power’s contribution to America’s clean energy economy.” The DOE cash will be blended with other funding sources.

Here’s an example of the projects, courtesy of DOE:

"Ocean Power Technologies, Inc. (Pennington, New Jersey) will deploy a full-scale 150 kilowatt PowerBuoy system in the Oregon Territorial Sea and collect two years of detailed operating data. This project will obtain critical technical and cost performance data for one of the most advanced wave energy converters in the U.S. DOE Funding: $2,400,000. Total Project Value: $4,800,000."

Checking the research on climate

Over at Time magazine, Bryan Walsh has a nice piece that explores two studies on future energy-related emissions. There’s good news and bad news, Walsh notes.

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