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New rules imposed on drilling in Gulf of Mexico; moratorium remains in place

The Deepwater Horizon oil rig burns in April after an explosion that killed 11 and spilled millions of gallons into the gulf. New regulations would force rigs to show that blowout preventers and sealing processes work.

Associated Press

The Deepwater Horizon oil rig burns in April after an explosion that killed 11 and spilled millions of gallons into the gulf. New regulations would force rigs to show that blowout preventers and sealing processes work.

WASHINGTON — The Obama administration on Thursday imposed new rules to make offshore drilling safer but said it was not yet ready to lift a temporary ban on deepwater drilling.

Interior Secretary Ken Salazar called offshore drilling inherently risky and said, "We will only lift the moratorium when I, as secretary of interior, am comfortable that we have significantly reduced those risks."

The new rules, which take effect immediately, include many recommendations made in a report Salazar released in May, including requirements that rigs certify that they have working blowout preventers and standards for cementing wells. The cement process and blowout preventer both failed to work as expected in the BP spill.

The April 20 spill, which was triggered by an explosion that killed 11 people, dumped an estimated 200 million gallons of oil in the gulf. BP killed the well two weeks ago and expects to eventually pay at least $32 billion to handle the cleanup and damage claims.

Under the new rules, a professional engineer must independently inspect and certify each stage of the drilling process. Blowout preventers — the emergency cutoff equipment designed to contain a major spill — must be independently certified and capable of severing the drill pipe under severe pressure.

Companies also will be required to develop comprehensive plans to manage risks and improve workplace safety.

"We are raising the bar for safety, oversight and environmental protection," Salazar said Thursday in a speech at a Washington think tank. "The oil and gas industry needs to expect a dynamic regulatory environment as we bring offshore programs up to the gold standard we need to have."

Salazar and other administration officials had said the new rules must be in place before the Interior Department lifts a ban on deepwater drilling. The ban is set to expire Nov. 30, but officials have said they hope to end it early.

The rules announced Thursday are not the final step, Salazar said, noting that the Interior Department is likely to propose requiring that blowout preventers have a second set of blind shear rams — the parts that can shear off and shut down wells in the event of a catastrophic spill.

Lee Hunt, chief executive of the International Association of Drilling Contractors, said the new rules could make offshore drilling safer but would add layers to a regulatory process that has all but shut down drilling in the gulf. The government has approved just a handful of shallow-water drilling permits during the past few months, and oil companies are growing frustrated with the wait.

"All of this can be done," Hunt said of the new rules. "The question is if we're now getting to a choke point," in which the permitting process grinds to a complete halt.

Richard Charter, senior policy adviser for Defenders of Wildlife, cheered the new rules. It's hard to tell if they will make the gulf safer, he said, but at least "it shows they're not sweeping this under the rug. The era of 'drill baby drill' is over."

New rules imposed on drilling in Gulf of Mexico; moratorium remains in place 09/30/10 [Last modified: Thursday, September 30, 2010 10:32pm]

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