Shell foes will never accept Arctic drilling

 Shell foes will never accept Arctic drilling

In her recent opinion piece (Jan. 2), Wilderness Society Arctic Program Director Lois Epstein assumes that neither Alaskans, the nation nor Shell are "ready to drill safely in the Arctic." Ms. Epstein then dismisses decades of data that indicate otherwise and claims drilling in the Arctic would lead to a "reasonable likelihood of disaster." the fact is, Shell and others have successfully drilled more than 35 wells in the Alaska offshore without incident — not counting the Cook Inlet wells that have helped heat Anchorage homes for over 50 years.

It’s unfortunate Ms. Epstein continues to lean on hyperbole in her attempts to stop offshore drilling. There are hard questions being asked of Shell — appropriately so — by regulators and stakeholders from Alaska’s coastal communities — all part of a dialogue that’s been taking place for years on this important topic. but organizations like the one Ms. Epstein represents have consistently proven they are not interested in these constructive forums.

Nor are they interested in the facts.

in list-like fashion, Ms. Epstein states that "very few" post-Macondo blowout findings have been implemented. Not true. the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement have made significant changes to the requirements for offshore exploration. These include a new section on Safety and Environmental Management and new planning requirements. the bureaus have also issued numerous Notices to Lessees which incorporate learnings from Macondo. Ms. Epstein, as a member of BSEE’s Offshore Energy Safety Advisory Committee, should be aware of these changes — including Shell’s commitment to a capping and containment system similar to the one that stopped the BP blowout.

in her letter, Ms. Epstein claims not enough is known about the ecology of the Arctic. Not true. a 100-year compendium of scientific data proves the Alaska Arctic is one of the most studied regions in modern history. the collection of new data will continue to be driven by industry’s interest in the region. Shell, alone, has dedicated more resources to arctic science in the last five years than all federal agencies combined.

Ms. Epstein labels as "primitive" the tools and techniques available for cleaning up oil in the Arctic. again, Ms. Epstein has not done her homework. Oil in ice research has been ongoing for more than 30 years and field trials prove there are several effective ways to recover oil in arctic conditions. in addition to leading these research projects, Shell has spent hundreds of millions of dollars ensuring that ice-capable vessels and Arctic-tested oil spill assets will be on-site in the extremely unlikely event they are needed. No other company has assembled the oil spill response assets that Shell has in Alaska.

Ms. Epstein goes on to criticize Sens. Begich and Murkowski — both of whom have taken time to question and learn about Shell’s arctic capabilities. Both have advanced Alaska’s offshore agenda because they are engaged, demand operational excellence, and understand the need to find new energy and create new jobs for Americans.

in short, they are credible.

Ms. Epstein, and organizations like hers, lack that credibility when they insinuate there could come a day when they would accept drilling in the Arctic. they will not. Not only have these groups litigated nearly every Shell permit, their reasoning for why Shell should not be allowed to proceed depends on the day. Recently, Ms. Epstein signed a letter that claims Shell should be denied Arctic air permits because emissions from our drilling rigs and oil spill response fleet will accelerate global warming. in a classic contradiction, Ms. Epstein appears to desire more oil spill response capability, but doesn’t want the engines on those vessels to actually be turned on. the truth is, Ms. Epstein’s goal is to stop Shell in the Arctic. Under no condition will she nor the environmental groups she associates with "be ready" to drill in the Arctic.

Fortunately, we are.

Pete Slaiby is vice president for Shell Alaska.

Shell foes will never accept Arctic drilling

Engineering panel calls for new bops on wells

 Engineering panel calls for new bops on wells

Before the 2010 Gulf of Mexico oil spill, both the industry and federal regulators had ” misplaced trust” in the ability of those emergency devices to seal off wells and keep explosive oil and gas safely locked underground, the NAE and the National Research Council said in a 136-page report on the disaster.

” There was a level of confidence on the part of the crew that if anything didn’t work out right they could count on the blowout preventer,” said Donald Winter, the former secretary of the Navy who headed the 15-member NAE committee that investigated the oil spill. At the time, both offshore workers and regulators had ” a misplaced confidence that the blowout preventer could provide a guarantee — an insurance policy, if you will — against a blowout.”

The panel also concluded that a series of flawed decisions by companies working on BP’s failed Macondo well and poor regulatory oversight led to the lethal April 20, 2010, blast that claimed 11 workers’ lives and triggered the nation’s worst oil spill.

The NAE report broadly echoes the findings of other investigations into the Gulf spill by insisting that companies did not heed numerous warning signs as they drilled the Macondo well and prepared to temporarily abandon the site so it could be hooked up to a production facility later.

But the engineering panel went further than other Deepwater Horizon probes in blaming the offshore drilling industry and regulators for ” the lack of a strong safety culture,” as exemplified by over reliance on blowout preventers despite several studies questioning their reliability.

Invented by Houston-based Cameron International in 1922, BOPs are meant to shear through pipe and cut off surging oil and natural gas when all other well controls have failed.

But without prodding from regulators, the NAE concluded that the equipment’s evolution has been ” limited,” even as advances in offshore drilling technology mean BOPs are put to the test under increasingly harsh and demanding conditions.

Powerful pipe-cutting and hole-sealing rams on the 57-foot-tall, 400-ton BOP used at the Macondo well failed to successfully shear through drill pipe and seal off the well bore.

Winter stressed that the BOP used at the Macondo well ” was neither designed nor tested for the dynamic conditions that most likely existed (during) attempts to recapture well control.” that includes the tremendous pressure exerted by surging oil and gas at the site.

The NAE said there is an ” urgent need” to address BOP shortcomings with new designs that offer ” high reliability under emergency conditions.” The panel also recommended better testing of the devices under emergency scenarios.

Before the Gulf spill, the BOPs were largely tested under controlled conditions when drill pipe is appropriately taut, instead of under possible emergency scenarios such as when the pipe is compressed or the rig is disconnected because of an accident.

Even if the blowout preventer had functioned correctly after it was automatically triggered at the Macondo well, the NAE panel concluded it probably would not have thwarted the initial explosions, fire and worker deaths, because oil and gas was already flowing in pipe above the BOP. still, the scientists conclude that if the BOP had successfully sealed off the well hole, ” the rig might not have sunk and the resulting oil spill would likely have been minimized.”

Cameron, which made the BOP used at the Macondo well, did not respond to requests for comment.

The oil industry and federal regulators are already looking for ways to make the devices stronger and more reliable.

For instance, T3 Energy Services is rolling out redesigned blades that may be able to crimp and cut drill pipe even when it is knocked off center.

National Oilwell Varco has unveiled new shear rams that are aimed at cutting through tool joints, the thick section where pipes are connected to each other.

Regulators at the Interior Department also are preparing to unveil new rules for offshore drilling that could include mandates for a second set of shear rams to double the chances the BOPs can successfully cut through drill pipe and close off the well hole.

That would build on other mandates the federal government imposed in the wake of the Gulf spill. Interior Secretary Ken Salazar stressed that the changes dovetail with many of the NAE’s recommendations.

” The work we have done to implement rigorous new offshore drilling and safety rules and reform offshore regulation and oversight is in line with the recommendations of the committee and with our goals moving forward,” Salazar said in a statement. ” Offshore drilling will never be risk free, but over the last 19 months we have moved quickly and aggressively with the most significant oil and gas reforms in U.S. history to make it safer and more environmentally responsible.”

Oil industry leaders said the NAE report underscored the value of programs to boost offshore drilling safety. Erik Milito, the director of upstream and industry operations for the American Petroleum Institute, insisted that ” the industry has already taken significant steps to enhance the capability to prevent, contain and respond to a potential spill.”

Winter said the regulatory change was a step in the right direction but warned it is too soon to tell whether ” it represents a transient response” to the Deepwater Horizon disaster.

Even so, Winter insisted that while more changes are needed, it makes sense to continue offshore drilling now.

” given all the improvements that have already been made” including new regulations and technologies for containing runaway subsea wells, Winter said, ” we think that it is in fact a reasonable process to continue drilling at this time.”

Echoing the presidential commission that investigated the Deepwater Horizon disaster, the NAE panel insisted that the U.S. should remake its approach to regulating offshore drilling by following the lead of Norway, the United Kingdom and other countries that have some proscriptive regulations but mostly rely on a performance-based approach that puts the onus on oil and gas companies to identify and combat risks.

The National Academy of Engineering pinned much of the blame for the disaster on the decision to temporarily abandon the Macondo well even though workers at the site had not confirmed that cement barriers at the site were sound. Investigators separately concluded that tests conducted on the cement barriers were misinterpreted.

” we viewed the decision to proceed with temporary abandonment . . . as being the pivotal decision that led to the eventual blowout of the well,” Winter told reporters. ” up until that point in time, the team did have control of the well. Once they made the decision to basically disregard the results of the tests that were conducted . . . and to proceed to temporary abandonment, they set the course for the subsequent events.”

In preparing to temporarily abandon the well, BP chose to displace heavy drilling muds with lighter seawater — a move the NAE called ” questionable” because it may have left the well perilously unbalanced.

Throughout the Macondo project, companies working at the site, including well operator BP, drilling rig owner Transocean ltd., and the cement contractor Halliburton co., were outmatched by the risks of drilling and managing the well, the NAE said.

At the site, companies were forced to work within a slim drilling margin — the difference between the pore pressure exerted by oil and gas in the underground formation and the countervailing weight and pressure of drilling fluids at the site. If the downhole drilling mud pressure exceeds the forces exerted by the formation itself, it can cause cracks to develop.

The narrow drilling margin raised the risks associated with the Macondo project and put a premium on making sure the well was adequately secured.

” The team was attempting to drill with a challenging well geology,” Winter said. ” The approach they chose to seal the well failed to provide an adequate barrier.”

BP said in a statement that the NAE’s conclusions ” are consistent with the consensus which has emerged from every official investigation: that the Deepwater Horizon accident was complex and was the result of multiple causes, involving multiple parties.”

The NAE’s conclusions could factor in lawsuits filed by environmental groups challenging the federal government’s decision to approve drilling in the Gulf of Mexico and approve exploration plans for Arctic waters near Alaska before major changes to BOPs. The groups have argued that it is irresponsible to resume offshore drilling until the devices are made foolproof.

Jennifer a. Dlouhy can be reached at 202-263-6400 or at the e-mail address

Engineering panel calls for new bops on wells

Daily Kos: Gulf Watchers Wednesday – BOP Autopsy FAIL & Containment System FAIL – BP Catastrophe AUV #498

 Daily Kos: Gulf Watchers Wednesday   BOP Autopsy FAIL & Containment System FAIL   BP Catastrophe AUV #498

Topics: Deeply flawed BOP autopsy, More Bad News: BOEMRE Halts Floating Facility Startup due to Equipment Failure, Interior Department will seek continual improvements in blowout preventers, BP emails indicate strain before Gulf oil spill, Transocean executives giving up safety bonuses, Process of combining allegations against BP in the wake of last year’s oil spill begins with court filings, BP asks that fine not be based on total of Gulf spill, BP still Doesn’t Want You to see Its Tarballs

The prospects for safety for deepwater drilling got a couple of new kicks in the teeth. Testimony before the Joint Coast Guard/Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) hearings revealed that the the BOP autopsy that Det Norske Veritas (DNV) conducted was deeply flawed to the point of making the BOP autopsy results pretty much useless. We are left to hope that the Chemical Safety Board and the National Academy of Engineering will be able to wrest some useful data from the BOP autopsy wreckage.

The freestanding riser system, one of the main pillars for containment of spills, broke on one of the recent rigs that just got one of BOEMRE’s shiny, new deepwater drilling permits. That’s the same BOEMRE that tells us we should feel all warm and fuzzy about deepwater drilling because of the spiffy, untested containment systems.

It might be worth reviewing the sordid history that led up to the discredited autopsy results. when Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) chose DNV to do the BOP autopsy there were serious conflict of interest questions raised.in 2007, DNV inspected and recertified the Deepwater Horizon’s [owned by Transocean] safety procedures. in 2009, Transocean hired DNV to study the reliability of subsea blowout preventers. That same year, DNV named a Transocean vice president, N. Pharr Smith, to be chairman of DNV’s rig owners’ committee, which provides “input” to DNV’s rule-making process.

The Chemical Safety Board (CSB), a small government agency asked by Congress to investigate the Deepwater Horizon catastrophe pointed out the obvious to anyone not a part of the unholy alliance between the Department of the Interior’s BOEMRE and the oil industry.

It’s of particular concern that DNV has done a specific analysis of the rig back in 2007, has opined separately on the reliability of BOPs and specifically taken the position that a second blind shear ram would only marginally make a difference,” said Rafael Moure-Eraso, chairman of the Chemical Safety Board. “We think those positions are a conflict that should have been reviewed early.”

Unhappy that the CSB riffraff had been invited to the in-crowd’s party, the Department of the Interior sought to exclude them from meaningful access to the BOP autopsy. I guess they thought that CSB had been a meanie to its BP buddies in its investigation of BP’s Texas City refinery explosion that killed 15 workers and injuring more than 170 others.

The Interior Department has also been squabbling with the Chemical Safety Board over access to the blowout preventer autopsy.…the access is important, CSB officials said, because many tests can’t be undone or repeated. Citing limited space and “safety concerns,” Interior said that it would allow only one expert from the CSB, which often leads investigations of complex industrial accidents, including the 2005 explosion at BP’s Texas City oil refinery southeast of Houston.

Showing absolutely no embarrassment whatsoever about it’s obvious conflict of industry DNV blithely charged forward by hiring one of its Transocean’s buddy’s managers to help out with the BOP autopsy.

DNV later arranged for Owen McWhorter, onetime subsea supervisor on the Deepwater Horizon, to assist in the testing.According to documents obtained by the Houston Chronicle, the Transocean employee [McWhorter] has manipulated equipment on the 50-foot-tall, 300-ton blowout preventer, while a government contractor runs it through a battery of tests in new Orleans.

Again, the CSB valiantly took on the role of being the skunk at the insiders’ picnic.

The government instructed DNV to terminate its contract with McWhorter after concerns were raised last week by the Chemical Safety Board, a federal agency also investigating the disaster.

The decision to use the Transocean employee as a consultant appeared to violate a conflict-of-interest provision in the government’s contract with DNV, acknowledged Michael Farber, a senior adviser for the ocean energy bureau, in a letter to the Chemical Safety Board….Board Chairman Rafael Moure-Eraso had said that while McWhorter wasn’t on the rig when it blew up, he “still had responsibility” for the blowout preventer in the preceding weeks and months.

The Department of Interior couldn’t have set things up more tidily to get the responsible parties off the hook. Transocean is sitting pretty because the investigator, DNV, shares their responsibility for the BOP being in working order. Cameron, the BOP’s manufacturer, and BP are in hog heaven because it will be a walk in their park for their lawyers to argue to a jury that anything DNV finds holding them responsible is because DNV has a big dog in the BOP autopsy hunt. the public is the loser because the chances of there being an impartial BOP autopsy is slim to none with slim hightailing it out of town.

Fast forward to March 20 when the BOP autopsy was released basically finding that BOPs aren’t designed to function as intended. That shouldn’t have come as a huge shock to anyone given that DNV had found in previous study of deepwater blowouts that BOPs have a failure rate of 45 percent.

This Monday, the BOEMRE/U.S. Coast Guard (USCG) Joint Investigation Team started hearings on the BOP autopsy and things started unraveling before the hearing even got underway. it will be fascinating to see how the joint commission will handle the fiasco that followed.

Company that built blowout preventer objects to forensic report

David Jones, the lawyer for BOP-maker Cameron, said he objected that the data used to create computerized models of the accident had not been made available for Cameron and other interested parties to review. BP also joined Cameron in objecting to the lack of access to backup data.

“The report by Det Norske Veritas is based on a single hypothesis,” Jones said. “That hypothesis is based not on testing but on computer models. the data that supports those computer models not included in the report. We requested the backup data on March 25.”

Jones said the U.S. Interior Department would be releasing its own report analyzing the forensic report in 10 days.

Once the hearing started Cameron’s attorney brought up the awkward fact that the computer model used for the BOP autopsy’s conclusions was based on an impossible assumption. Oops!

BOP investigator admits to fault in model used in forensic examination

The lawyer, David Jones, showed that a model used by examiners at DNV depicted an impossibility: in running the computer models of how a key set of slicers and seals would have malfunctioned, it placed the drill pipe where oil was flowing in a place where it couldn’t have been.

The model showed the drill pipe inside a wall of the BOP, and Neil Thompson, the project manager for DNV, was forced to admit it was an error in the model placement.

There was more awkwardness to come.

That, combined with Thompson’s acknowledgement that he’d “never laid eyes on a blowout preventer” before he began this examination, called into doubt some of the most critical findings of the report.

Thompson also admitted that his team never conducted tests to determine flow pressures or figure out what forces caused the pipe to deflect inside the BOP and muck up the works.

It didn’t seem that DNV troubled themselves to pay attention to witness testimony.

Thompson stumbled when Jones asked him repeatedly about how Det Norske Veritas determined a valve called the “upper annular” was closed. Testimony from surviving rig workers stated a different valve was the one closed.

BP then had their turn at the fun with the hapless Thompson.

Joining Jones in his skepticism of the forensic report was BP lawyer Richard Godfrey. He wanted to know whether there was any physical evidence that the 5.5-inch, heavy-duty drill pipe bowed in the middle, knocking it off-center. That’s a key hypothesis of the inspectors’ report.

Thompson said there was no physical evidence of the elastic bowing of the pipe. he said it was recovered as a straight, 28-foot piece because it would have straightened out after it was cut, about two days after the accident. Godfrey suggested that nobody in the industry had ever seen such “elastic buckling” of a drill pipe before. But Thompson said it’s a commonly understood concept of physics.

It looks like DNV conveniently overlooked including the possibility that the blind shear rams might not have closed because Transocean, their BFF, might have neglected maintenance.

Uncertainties emerge in blowout preventer examination

Another important uncertainty was when the blind shear rams actually attempted to cut the pipe. Det Norske Veritas tested a 27-volt battery that controlled what should have been an automatic trigger of the blind shear rams moments after the accident, and found it had just 7 volts of charge in June and 0.7 volts of charge in September.

Based on that, Kenney [lead forensic investigator] and Thompson concluded the automatic trigger of the shear rams probably failed, meaning it likely took until two days after the accident for remote-controlled submarines to activate the rams. But they also said it was possible that a backup control pod worked in the minutes after the blowout and succeeded in triggering the blind shear rams.

That is an important distinction because it could mean that rig-owner Transocean didn’t properly maintain the BOP and that might have contributed to the accident. Transocean witnesses who were scheduled to testify Tuesday have refused to show up and could not be compelled to do so because they live out of the area, where the federal subpoenas served against them from new Orleans have no power.

Bob Cavnar (eljefebob), industry expert and author of Disaster on the Horizon accurately sums up the mess in which we now find ourselves.

Back to Square one? BOP Investigator Admits to Key Error in Report – the Daily Hurricane

I’m afraid that this testimony has the effect of the ol’ one step forward and two steps back.  Cameron has revealed critical mistakes in the DNV study, and at least one government agency, the Chemical Safety Board, has implied that more study is needed before we will really know what happened.  Yet, with all these huge question marks, we are still going back to work in the deepwater.  Was it design? Poor maintenance? Merely a “black swan”?  these are critical questions that have not been answered and workers’ lives and the environment hang in the balance.

Just a note:  The raging apathy and silence from the media on this issue is deafening.  the hearings are not being live streamed by anyone, including C Span, and the only news outlets covering what are probably the most important of these critical hearings is the Times-Picayune out of new Orleans and my pals over at the Houston Chronicle’s Fuel Fix.  all else is dead silence. I’m amazed.

One of the deepwater wells in the Gulf that was recently permitted with much fanfare has now been ordered shut down by the BOEMRE. it suffered a big oopsie with it’s freestanding riser system. That would be the very same type of freestanding riser system that BOEMRE approved as being just hunk-dory for containing future oil spills.

More Bad News: BOEMRE Halts Floating Facility Startup due to Equipment Failure – the Daily Hurricane Click through for a good graphic of the freestanding riser system.

You’re probably wondering why I’m writing about this seemingly obscure failure and subsequent work stoppage on the Petrobras FPSO facility, and why you should care.  Here’s why you should care:  freestanding risers are the backbone of the new subsea well containment systems that have been approved by the BOEMRE which are now required to get a deepwater drilling permit.  the failure of a key component in freestanding riser technology raises the question about the reliability of the free standing risers in the well containment systems that are staged for rapid deployment in the event of another subsea well blowout.  Having rushed the well containment systems into service so new drilling permits could be issued, one wonders whether they have been appropriately tested for durability and reliability.  Like subsea wellheads, they are installed below the surface and are not visible except through the lens of an ROV camera.  as the industry steps further and further out into deepwater, reliable riser systems will become key components in protecting the environment and making these projects economical.as expected, the Department of the Interior sees no need to curb its enthusiasm for issuing deepwater drilling permits despite the fact that BOPs and containments systems fall short of being effective in handling spills.

Interior Department will seek continual improvements in blowout preventers

WASHINGTON — the Interior Department will continue to seek improvements in blow-out preventers, but it does not appear that the latest findings about the failure of the BOP on the Deepwater Horizon well will slow the department’s return to permitting deepwater drilling.…after the release of the forensic analysis of the Deepwater Horizon BOP, Rep. Edward Markey, D-Mass., the ranking Democrat on the House Natural Resources Committee, wrote Interior asking whether the department would be halting permitting activities until it has a chance to review all blowout preventers now deployed in U.S. waters.

Interior has approved eight deepwater well permits since Feb. 17, noting that the industry has now demonstrated its capacity to handle subsea blowouts and spills. There has been no indication that the recent report on the Deepwater Horizon BOP will interrupt the department’s issuance of new permits. They have not yet responded to Markey’s letter.

On the conference call, Salazar said, “we’ve had a great round of meetings here in Mexico,” and that both the United States and Mexico, which together control about 95 percent of the Gulf, were committed to pressing ahead with deepwater drilling.

Internal BP emails from one of BP’s managers described work on the Macondo as “paranoia from engineering leadership is driving chaos.” aside from personal frictions there was general dissatisfaction with a reorganization which led to an inexperienced engineering team.

BP emails indicate strain before Gulf oil spill

In a March 14, 2010, email, David Sims, a BP engineering team leader working on the Macondo project from BP offices in West Houson, responded to an accusation by well team leader John Guide that Sims wasn’t listening during a conference call.

Sims, who had been Guide’s peer in the organization before a recent promotion, outlined the reasons for one of his decisions, then berated Guide for his management style.

“You seem to love being the victim. everything is someone else’s fault,” Sims wrote. “You criticize nearly everything we do on the rig but don’t seem to realize that you are responsible for every(thing) we do on the rig,”…on April 17, just three days before the blast, Guide wrote to Sims about the stress the operations team Guide managed was feeling over actions by the engineering team that planned the work carried out on the rig.“David, over the past four days there has been so many last minute changes to the operation that the WSL (Well Site Leaders) have finally come to their wits’ end,” Guide wrote. “The quote is ‘flying by the seat of our pants.’ ”…the well was originally budgeted at $96 million, but by the time of the blowout BP had spent close to $142 million and was at least 38 days behind schedule. Engineers charged with planning later steps in the drilling and completion of the well were changing them regularly as new issues came up, according to the emails. Guide wrote that work on the well was requiring daily visits from shore-based personnel.

“We have made a special boat or helicopter run everyday,” Guide continued. “Everybody wants to do the right thing, but, this huge level of paranoia from engineering leadership is driving chaos… the operation is not going to succeed if we continue in this manner.”…John Sprague, a drilling engineer manager who oversaw all of BP’s Gulf of Mexico operations, was critical of the restructuring in an April 8 email to a group of BP engineers.

But Sprague conceded one of the likely reasons behind it.“Granted our Engineering teams are inexperienced,” he wrote.

Transocean executives have at last been shamed into donating the bonuses they received for the company’s “safety” record which included the deaths of eleven of their workers.

Transocean executives giving up safety bonuses

Executives at the offshore drilling contractor at the center of last year’s Gulf of Mexico oil spill are donating bonuses they got for the company’s safety record last year….CEO Steven Newman and four other executives are now donating bonuses worth more than $250,000 to a fund set up by Transocean for the victims’ families.Plaintiff’s attorneys added an amended complaint asserting that dispersant caused injuries to their clients. it will be interesting to see if they will be able to shine some light on this controversial topic during the course of the legal process. Damages would be triple if they can prove the companies liable under civil RICO laws so I think we can expect the attorneys to pursue this angle aggressively.

Process of combining allegations against BP in the wake of last year’s oil spill begins with court filings

Attorneys representing businesses, fishermen and residents claiming to be physically or financially injured by the BP Deepwater Horizon oil spill filed two documents in federal court in new Orleans this week laying out key pieces of their legal strategy, including charges that BP and drilling contractor Transocean conspired to defraud the Minerals Management Service concerning the safety of drilling such a deep well, and that their clients were injured by the use of dispersants….The criminal conspiracy allegation is contained in a case statement that lays out the plaintiff’s arguments that BP and Transocean violated the Racketeer Influenced and Corrupt Organizations Act, also known as the RICO Act, through wire and mail fraud stemming from their applications for permits for the Deepwater Horizon to drill BP’s Macondo well….“The scheme to defraud involves misrepresentations and omissions to the regulators regarding the ability of BP and its subcontractor, Transocean, both to prevent and contain oil spills,” the case statement said. “BP and Transocean’s fraudulent scheme has not just involved the Macondo well offshore drilling project that utilized the Deepwater Horizon, but has also involved other well sites in the Gulf of Mexico and indeed around the world.”…”Subject to discovery of information in the hands of the defendant, plaintiffs may determine that certain dishonest MMS employees participated and conspired to participate in overt acts in furtherance of the pattern of racketeering activity …,” the paper said….the attorneys also filed an amended version of the lawsuit’s supporting complaint that focuses on alleged injuries caused by the use of dispersants “in an ill-conceived effort to contain and to clean up the spill…”

The complaint contends that BP and companies hired by BP to clean up the oil often prohibited oil-spill workers and those on “vessels of opportunity” from using protective clothing and equipment, unless they were working in the immediate area around the Macondo well.

BP thinks that a maximum of $5 million in fines is fair. no one could ever accuse BP being lacking in chutzpah.

BP asks that fine not be based on total of Gulf spill

BP says the U.S. government should calculate any criminal fines related for last year’s Gulf oil spill based on how many days the Macondo well flowed, not on how many barrels of crude leaked.

In court filings Tuesday, the oil giant responded to a lawsuit filed in December by the Department of Justice that seeks civil environmental penalties based on an estimated 4.1 million barrels of oil that spilled into the Gulf after the explosion and sinking of the Deepwater Horizon rig on April 20, 2010, killing 11 workers.BP said in the court filings it was not willfully negligent and that federal officials should use a different method for assessing fines under the clean Water Act — levying a fixed fine for every day the well flowed. That fine is $32,500 per day.

Using the daily figure fines could run from $2.8 million to $4.9 million, depending on whether one uses the date the well was capped or permanently sealed. the per-barrel figure could lead to fines ranging from $4.1 billion to more than $20 billion.

Mac McClelland of Mother Jones has not forgotten the Gulf. Tarballs are still washing ashore regularly and the press is still being denied access to public areas by BP security.

BP still Doesn’t Want You to see Its Tarballs

Lots has changed on Elmer’s Island. nearly a year after the great oilpocalypse of 2010, this Louisiana wildlife refuge about 100 miles south of new Orleans isn’t crawling with teams of cleanup workers raking big black pools of crude off the sand; there’s no cleanup machinery or equipment; the only immediately visible remnants of the BP/Deepwater Horizon spill are the occasional tarballs, big as a kid’s head, that wash onto the shore.

Not that I can just waltz onto this public beach to see all that—not everything has changed. Like some lame iteration of Groundhog Day, the hundredth time I try to pull onto the Elmer’s Island access road from Highway 1 in southern Louisiana—some 200 days after the last time I tried it—I am, once again, stopped. Last year, it was cops blocking the road. Now it’s private security hired by BP.

“You have to get permission from central command to come on here, and then you’ll probably have to be escorted by an official,” the security guard tells me.

“How hard is it to get permission?”

“Usually pretty hard.” She says a local reporter couldn’t get through recently.

PLEASE visit Pam LaPier’s diary to find out how you can help the Gulf now and in the future. We don’t have to be idle! And thanks to Crashing Vor and Pam LaPier for working on this!

Previous Gulf Watcher diaries:

4-04-11 05:44 PMGulf Watchers Monday-BP Could be Back in Gulf Soon- BP Catastrophe AUV #497shanesnana4-03-11 12:06 PMGulf Watchers Sunday – a Bonus for Death – BP Catastrophe AUV #496Lorinda Pike4-01-11 06:13 PMGulf Watchers Block Party: Déjà Vu edition — againBlackSheep14-01-11 08:25 AMGulf Watchers Friday – They Want it all and They Want it Now – BP Catastrophe AUV #495+Lorinda PikeThe last Mothership has links to reference material.

Previous motherships and ROV’s from this extensive live blog effort may be found here.

Again, to keep bandwidth down, please do not post images or videos.

[youtube http://www.youtube.com/watch?v=x3GJjsgDLZo&hl=en&fs=1&rel=0]

Daily Kos: Gulf Watchers Wednesday – BOP Autopsy FAIL & Containment System FAIL – BP Catastrophe AUV #498

Oil Companies Unveil Spill Containment System

1300004117 94 Oil Companies Unveil Spill Containment System

Font Size:

A group of oil companies led by Exxon says it has built a system that can stop an undersea oil spill within weeks, a critical step in the effort to resume drilling in the deepest parts of the Gulf of Mexico.

The group announced Thursday that it has cobbled together enough equipment and support vessels to handle a spill similar to BP’s gusher last year, which took almost three months to plug.

A more robust network with expanded capabilities should be finished early next year.

Regulators have demanded that oil companies demonstrate the capability to contain an underwater well blowout before granting permits to drill in Gulf waters deeper than 500 feet.

Exxon says this system meets that demand, and says it doesn’t expect any problem obtaining government approval.

Oil Companies Unveil Spill Containment System

Oil Companies Unveil Spill Containment System

Interior allows some suspended drilling to resume

1294175720 54 Interior allows some suspended drilling to resume

WASHINGTON (AP) — the Obama administration said Monday it will allow 13 companies to resume deepwater drilling without any additional environmental scrutiny, just months after saying it would require strict reviews for new drilling in the wake of the BP oil spill.

The government said it was not breaking its promise to require environmental reviews because the 13 companies — which include Chevron USA Inc. and Shell Offshore Inc. — had already started drilling the wells without detailed environmental studies.

Drilling was suspended last year when the administration imposed a months-long moratorium following the BP spill. the ban was lifted in October, but drilling has not yet resumed in waters deeper than 500 feet in the Gulf of Mexico.

U.S. officials said the 13 companies must comply with new policies and rules before resuming activity at 16 Gulf of Mexico wells. all but three are exploratory wells — the same type BP was drilling when the blowout of the Deepwater Horizon rig occurred. the April 20 explosion killed 11 workers and set off the worst offshore oil spill in U.S. history.

“For those companies that were in the midst of operations at the time of the deepwater suspensions (last spring), today’s notification is a significant step toward resuming their permitted activity,” said Michael Bromwich, director of the Bureau of Ocean Energy Management, Regulation and Enforcement.

The decision is a victory for the drilling companies, which in the past had routinely won broad waivers from rules requiring detailed environmental studies. After the BP disaster, the Obama administration pledged it would require companies to complete environmental reviews before being allowed to drill for oil.

The administration has been under heavy pressure from the oil industry, Gulf state leaders and congressional Republicans to speed up drilling in the Gulf of Mexico, which has come to a near halt since the moratorium on deepwater drilling was imposed last spring.

The delay is hurting big oil companies such as Chevron Corp. and Royal Dutch Shell PLC, which have billions of dollars in investments tied up in Gulf projects that are on hold. Smaller operators such as ATP Oil & Gas Corp., Murphy Exploration & Production co.-USA, and Noble Energy Inc., also have been affected.

A federal report said the moratorium probably caused a temporary loss of 8,000 to 12,000 jobs in the Gulf region.

Bromwich and other officials stressed that the policy announced Monday was not a reversal of its previous plans not to grant waivers known as categorical exclusions for deepwater projects. instead officials characterized the action as a sort of grandfather clause that applies only to companies that had already begun drilling before the BP blowout.

In August, Bromwich instructed his staff not to grant categorical exclusions for drilling plans that involve use of a blowout preventer similar to the one that failed to stop the BP spill. but the August directive did not specify that any companies would be exempted under a grandfather provision.

“This decision was based on our ongoing review of environmental analyses in the Gulf and was in no way impacted by a singular company,” said Melissa Schwartz, a spokeswoman for Bromwich.

Bromwich said in a statement that the new policy will accommodate companies whose operations were interrupted by the five-month moratorium on deepwater drilling, while ensuring that the companies can resume previously approved activities.

William Snape, senior counsel for the Center for Biological Diversity, an environmental group, called the announcement “another sad chapter in agency denial that anything is wrong.”

Snape said Bromwich and his boss, Interior Secretary Ken Salazar, seem to want dangerous oil and gas drilling to go on in the Gulf and Alaska “without any meaningful public scientific review of the risks learned from the BP disaster.”

But Randall Luthi, president of the National Ocean Industries Association, called the announcement “a positive development for an industry that has been anxiously waiting to get back to work.”

Marathon Oil co. said it was seeking to obtain permits for deepwater drilling, including one project that was suspended by the moratorium. In an e-mailed statement, Marathon said it is working with the ocean energy bureau on the permits and is optimistic the company will receive approval.

The firms will not be required to complete a detailed review under the National Environmental Policy Act, but they must comply with new policies and regulations set up in the wake of the BP spill, Bromwich said.

The 13 companies won’t be required to revise their exploration plans if an updated estimate of the most oil that would be released in an uncontrolled spill is less than the amount included in spill-response plans on file with the bureau. If the worst-case discharge estimate is higher, “further reviews will be conducted,” according to the statement.

The 13 companies that received the notice are: ATP Oil & Gas Corp.; BHP Billiton Petroleum (GOM) Inc.; Chevron USA Inc.; Cobalt International Energy; ENI U.S. Operating co. Inc.; Hess Corp.; Kerr-McGee Oil & Gas Corp.; Marathon Oil co.; Murphy Exploration & Production co.-USA; Noble Energy Inc.; Shell Offshore Inc.; Statoil USA E & P Inc.; and Walter Oil & Gas Corp.

Associated Press writers Dina Cappiello in Washington and Harry R. Weber in new Orleans contributed to this story.

Interior allows some suspended drilling to resume

Channel NewsAsia – US lifts Gulf of Mexico deepwater drilling ban – channelnewsasia.com

   Channel NewsAsia   US lifts Gulf of Mexico deepwater drilling ban   channelnewsasia.com   Photos  of      

WASHINGTON – The United States on Tuesday lifted a ban on deepwater drilling in the Gulf of Mexico imposed after the BP oil spill, but set operators tough new safety conditions, officials said. “We have decided it is now appropriate to lift the suspension on deepwater drilling for those operators that are able to clear the higher bar that we have set” for safety, Interior Secretary Ken Salazar said.President Barack Obama ordered a six-month freeze on deepwater offshore oil drilling in the Gulf of Mexico shortly after a blowout on the BP Deepwater Horizon undersea well that killed 11 rig workers and sparked the worst oil disaster in US history. The moratorium was due to expire at the end of next month.The new rules, which were laid out by the Interior Department two weeks ago, toughen up companies' obligations on drilling and workplace safety, well containment and spill response, said Salazar.Key among the tough new rules is an obligation for the CEO of any company wishing to drill in deep water to “certify that the rig has complied with all new and existing rules,” he said.Executives from the companies involved in the BP-leased well that blew out have blamed each other for the accident which happened some 50 miles (80 kilometers) off the coast of Louisiana.But even if the moratorium was being lifted, deepwater drilling was not expected to resume soon, said Michael Bromwich, director of the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEM).Oil and gas companies need time to implement the new rules and draw up applications for offshore leases “and it will obviously take us time to review those applications and do due diligence,” said Bromwich.American Petroleum Institute president Jack Gerard welcomed the lifting of the drilling ban but worried that “a de facto moratorium could be created by delays in the processing and approval of permits, which will reduce production, government revenues and American jobs.”Billy Nungesser, president of Plaquemines Parish in Louisiana, where residents were hard hit by the moratorium on drilling, was relieved that the ban had been lifted, but voiced concern that a slow-moving permitting process would end up smothering the local oil and gas industry. “We hope that the new regulations and new policies will make drilling safer for both the people working offshore and the environment in the future. “At the same time, we hope the regulations will not delay the permitting process for deepwater or other drilling, which ends up smothering the industry,” Nungesser said.Republican Congressman Darrell Issa also urged the government to “avoid a de facto moratorium-by-regulatory-delay … that would be just as damaging to the Gulf economy as a blanket moratorium.” A study in July estimated that a six-month moratorium would cost more than 8,000 jobs in Florida, Alabama, Mississippi, Louisiana and Texas and wipe out nearly 2.1 billion dollars in economic activity in the Gulf states.Louisiana Democratic Senator Mary Landrieu, who has called the moratorium a “reckless” move that endangered the environment and jobs, welcomed Tuesday's announcement as “a step in the right direction.”"But it must be accompanied by an action plan to get the entire industry in the Gulf of Mexico back to work,” including an acceleration of the permitting process, she added.Environmental groups, meanwhile, said the ban had been lifted too soon.”Scientists haven't even assessed the full ecological impact of the BP disaster and yet the government is in a rush to allow oil companies to get back to drilling. it is irresponsible to say the least, reckless at worst,” said Greenpeace USA director Phil Radford.Peter Lehner, executive director of the Natural Resources Defense Council, said the moratorium should have stayed in place.”To ensure a disaster like this never happens again, we must know what caused it in the first place. We're still waiting for that answer and until we get it, the moratorium should remain in place,” he said.The Sierra Club said the moratorium had been only a temporary fix, and the real solution was to wean the United States off oil. “The only way to make sure we don't see another drilling disaster is to end our dependence on oil,” said Sierra Club president Michael Brune. “The BP disaster was a wake up call, but our leaders keep hitting the snooze button,” he said. – AFP /ls

Channel NewsAsia – US lifts Gulf of Mexico deepwater drilling ban – channelnewsasia.com

No sign of oil after Gulf platform fire – Coast Guard

1283930115 30 No sign of oil after Gulf platform fire   Coast Guard

NEW ORLEANS – an oil and gas platform operated by Mariner Energy burst into flames in the Gulf of Mexico on Thursday, but the crew of 13 escaped and there were no signs of an oil spill, the U.S. Coast Guard said.

The accident brought unwelcome attention to the offshore drilling industry as it is trying to roll back a six-month deepwater drilling moratorium imposed in the wake of the BP Plc Macondo well disaster, which killed 11 workers and poured 4.1 million barrels of oil into the Gulf.

As of late Thursday, there were no signs of a spill from the Mariner platform.

“The boats and the aircraft on scene cannot see a sheen,” U.S. Coast Guard Captain Peter Troedsson told a news conference Thursday afternoon in new Orleans.

Shortly after the fire, Mariner reported there was a mile-long oily sheen on the water around the platform, according to the government.

On Friday morning, Coast Guard helicopters will fly over and inspect the platform and surrounding ocean, a Coast Guard spokeswoman said.

The fire burnt for several hours before it was extinguished. a company spokesman said it started on an upper deck of the platform where living quarters were located, and had not been caused by a “blowout,” or sudden release of oil and gas from a well.

The crew, plucked from the Gulf by an oil supply vessel, were transported to a hospital onshore and no injuries have been reported, the Houston-based company said.

Automated shutoff equipment turned off the flow of oil and gas from the platform’s seven producing wells as the crew evacuated, Mariner said. The cause of the fire is still unknown and under investigation, the company said.

“It’s unlikely to have long-term implications for production in the Gulf of Mexico,” said Raoul LeBlanc, a senior director at PFC Energy in Houston.

Environmental groups said the Mariner explosion reinforced the need to keep the moratorium in place. White House spokesman Robert Gibbs said he did not know whether the fire would affect the moratorium, scheduled to expire November 30.

Several analysts said the accident could hurt the industry in its court battle to lift the drilling halt early.

“The incident has happened at the wrong time,” said Eugen Weinberg, head of commodity research at Commerzbank. “The political establishment will probably move quickly as everybody still remembers the slow dealing with the Macondo accident and the dramatic pictures from this summer.”

The platform is located more than 90 miles deep.

The platform’s output is a small fraction of the 1.6 million barrels of oil and 6.4 billion cubic feet of gas the region produces on a daily basis.

The facility averaged 9.2 million cubic feet of natural gas per day and 1,400 barrels of oil and condensate per day during the last week of August, Mariner said.

News of the fire helped push crude oil prices up $1.11 to $75.02 a barrel on the new York Mercantile Exchange. Oil prices were also boosted by Hurricane Earl, which is threatening refineries along the U.S. East Coast.

Shares of Mariner Energy fell 2.6 percent to close at $22.75 and shares of Apache Corp, which is expected to buy Mariner Energy in a $2.7 billion deal, fell 1.3 percent to close at $91.30.

Apache plans to proceed with the Mariner purchase, Apache spokesman bill Mintz, said.

Mariner has participated in at least 35 deepwater projects in the Gulf and operated over half of them.

The fire was the fifth reported at offshore sites operated by Mariner since October 2006, according to the U.S. Bureau of Ocean Energy Management, Regulation and Enforcement.

None of the earlier fires caused any fatalities, although workers were injured in two of the accidents. The company also suffered a blowout while drilling a well about 90 miles off the Louisiana coast in May 2008, but the well was brought under control within a few hours.

The Vermillion platform was last inspected in January and found to have three minor compliance violations, according to the Bureau of Ocean Energy Management records.

No sign of oil after Gulf platform fire – Coast Guard

The cap is off: why that is not a disaster in Gulf oil spill

1278893712 94 The cap is off: why that is not a disaster in Gulf oil spill

When BP removed its leaking containment cap Saturday, more oil began pouring into the Gulf – about 15,000 barrels of oil a day added to the Gulf oil spill.

Skip to next paragraph

But as early as Sunday, BP will begin ramping up a system that could begin collecting nearly double that amount – even with the containment cap off.

This system is separate from the new “sealing cap” that engineers are now trying to fit atop the failed blowout preventer. As a result, even if BP runs into trouble as it attempts to put on the more robust sealing cap – as past experience suggest is possible – the company could still be collecting nearly 35,000 barrels (1.47 million gallons) of oil a day in the meantime.

IN PICTURES: Louisiana oil spill

It means that the removal of the cap might not significantly worsen oil-collection efforts – even in the short term.

In fact, this separate system could collect a majority of all the spewing oil even without the cap, according to one estimate. Retired Coast Guard Adm. Thad Allen, who is overseeing the response effort, on June 18 said he thought the flow rate from the well was in the neighborhood of 35,000 barrels a day.

The ultimate solution – shutting off the flow of oil entirely by drilling a relief well – is currently slated for completion some time in August.

The new system set to come on line Sunday works independent of any cap because it involves a valve on the side of the blowout preventer called the “kill line.” A ship called the Helix Producer, which can process about 25,000 barrels a day, will connect to the kill line. BP is already using the kill line’s twin, the “choke line,” to siphon about 9,000 barrels of oil a day to a ship called the Q4000.

Even with the cap off, the Q4000 is collecting an average of 8,000 barrels of oil daily, said Kent Wells, BP’s senior vice president of exploration and production, on Saturday.

So when the Helix is operating at full capacity – which could take a few days – it and the Q4000 could bring collection capacity to nearly 35,000 barrels a day irrespective of the cap. With the old cap on, BP had been capturing roughly 26,000 barrels a day and interruptions of a day or more were common. A lightning strike and an accident with a robot both resulted in the collection of significantly less oil for a time.

The cap is off: why that is not a disaster in Gulf oil spill