Interior Secretary Reaffirms Arctic Lease Sale

Tuesday, March 31 2015

Royal Dutch Shell cleared a major hurdle on Tuesday in its quest to return to the Arctic.

Interior Secretary Sally Jewell decided to uphold the sale where Shell purchased many of its offshore leases in the Chukchi Sea -- including the ones the company wants to explore this summer. 

But until today, those leases were in limbo. A federal appeals judge ruled that the government hadn’t come up with an accurate estimate of how much development would take place in the Arctic as a result of the auction. 

Judge Ralph Beistline ordered the Bureau of Ocean Energy Management to conduct a new analysis. They found that the development potential is much higher than originally estimated -- and it comes with a 75 percent chance of a major oil spill.

But the agency stood by the decision to auction off tracts in the Chukchi seven years ago. And now, Interior Secretary Jewell has reaffirmed that choice -- making it possible for regulators to start a formal review of Shell's exploration plan.

“The Arctic is an important component of the administration’s national energy strategy,” Jewell said in a statement. “We remain committed to taking a thoughtful and balanced approach to oil and gas leasing and exploration offshore Alaska.”

Environmental groups had harsh words for Jewell and the rest of the administration. Annie Leonard is the executive director for Greenpeace USA. 

“On the same day President Obama pledges to cut U.S. greenhouse gas emissions by nearly a third, he opens the back door for one of the most irresponsible oil companies to drill in the Arctic,” Leonard said in a statement. “While this decision is deeply disappointing, it will also energize people around the world to oppose Shell at every turn. Shell’s Arctic oil rigs are now infamous, and all eyes will be looking north this summer.”

Reuters has reported that Shell is moving its rigs to Alaska before it nails down permits. At least one other vessel in Shell's Arctic fleet has already reached the state.

The Nanuq oil spill response vessel has been in Seward since March 15, according to dock manager Christy Terry.



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