Two oil companies planning to drill in remote Arctic waters, Shell and ConocoPhillips, are pleading with U.S. regulators not to make them follow new guidelines proposed by the Interior Department that would require the companies to keep emergency spill response equipment close at hand and prohibit the use of chemical dispersants.
The precise details of the new rules for Arctic drilling operations have not been made public as an inter-agency review of the Interior Department's proposal is still being carried out.
But records of meetings with officials at the Office of Management and Budget (OMB), which is currently reviewing the new standards, show that Shell is vigorously contesting rules that would require the company to keep on hand the necessary equipment for emergency response in the event of a blowout, such as containment systems and a rig to drill a relief well.
Shell says that keeping a rig on standby would cost the company an additional $250 million a year.
Both Shell and ConocoPhillips are taking issue with another of the proposed rules, a potential ban on the use of highly toxic chemical dispersants in favor of booms, skimmers, and other physical equipment to contain spilled oil.
In a presentation to the OMB's Office of Information and Regulatory Affairs, Shell argued: “A 100 percent mechanical requirement leads to increasing costs and environmental impacts — less recovery of oil — as operators enter plays with higher daily worst-case discharges.”
Studies have shown that while dispersants can help prevent oil from washing ashore and may protect surface-dwelling sea life, it can have serious impacts on marine life living below the surface.
During her recent election campaign, Alberta NDP leader Rachel Notley pledged to raise Alberta’s minimum wage from $10.20 an hour to $15...