Arctic drilling plan clears hurdle

SEATTLE – Shell Exploration was conditionally cleared Thursday to proceed with the most ambitious oil and gas drilling program ever attempted in the U.S. Arctic, a plan that will offer access to a new domestic energy supply in one of the most environmentally fragile regions on earth.

After years of legal disputes between Shell and conservationists, the exploration plan in the Beaufort Sea off the coast of Alaska was tentatively approved by the federal Bureau of Ocean Energy Management, Regulation and Enforcement, which could clear the way for Shell to begin drilling three exploratory wells as soon as next July.

Several hurdles remain, including federal permits for discharging air pollutants and disturbing the whales, seals, walrus and polar bears that live near the proposed drilling sites, and could delay the drilling further, though opponents are running short of legal options.

A decision is expected as soon as next week on the additional issue of Shell’s plan for cleaning up any oil spilled during drilling operations – a matter of concern because of the fragility of the Arctic environment and the difficulty in cleaning up oil among ice floes, the towering waves of Arctic storms and the long hours of darkness after the autumn drilling season .

Conservationists also fear that drilling could disrupt a resting and feeding area in Camden Bay for endangered bowhead whales.

Shell has a separate application under review to launch up to six exploratory wells in the nearby Chukchi Sea, an operation that also could begin next year if approvals are obtained.

“Shell has come back with the largest and most aggressive drilling proposal we’ve ever seen in the U.S. Arctic. We’ve never seen anything of this scale before in this country,” said Holly Harris, attorney for the environmental law group Earthjustice, which has challenged Arctic drilling plans.

“This is a disaster waiting to happen. … Scientific integrity and government accountability took their familiar back seat to oil company profits and power today,” she said.

Officials in Alaska who have long been frustrated with lengthy delays in opening production of a new energy source welcomed the federal agency’s decision, which followed an earlier approval that was tied up by court orders for additional environmental reviews.

“Approval of this exploration plan is fantastic news for Alaska’s oil and gas industry and is a welcome shot-in-the-arm for Alaska’s long-term economic good health,” said U.S. Sen. Mark Begich, D-Alaska. “I’m confident this will ultimately be the first of many developments to keep oil flowing through Alaska’s economic lifeline, the trans-Alaska oil pipeline.”

Shell has pursued its Arctic exploration program for years and spent large amounts of money on scientific studies and response plans, only to be delayed by continuing concerns that the delicate Arctic region might not withstand industrial operations offshore and the kind of oil disaster that occurred with the Deepwater Horizon spill in the Gulf of Mexico.

After its earlier exploration plan was held up once again last year, Shell came back this spring with an even more ambitious proposal and warnings that the company could not afford to wait forever to get them approved.

“The conditional approval of our plan of exploration is welcome news and adds to our cautious optimism that we will be drilling our Alaska leases by this time next year,” Shell spokesman Curtis Smith said.