EPA Releases Draft Air Permits For Shell’s Alaska Drilling Projects
–EPA revises clean-air permits for Shell to drill off Alaska’s coast
–Changes address objections raised to the permits last year
–Revised permits help clear the way for Shell to begin exploratory drilling in Beaufort and Chukchi seas
WASHINGTON — The U.S. Environmental Protection Agency has revised a set of clean-air permits that Royal Dutch Shell has long sought for drilling projects off the coast of Alaska, saying it has addressed concerns that sparked objections to the permits last year.
EPA said Friday that the revised permits, which are still in draft form, reduce emissions of most key air pollutants by more than 50% from levels allowed in the permits issued last year. The changes reflect new nitrogen dioxide standards that went into effect after EPA initially granted the permits to Shell in March and April 2010.
Friday’s move marks a significant step in Shell’s well-publicized efforts to drill in the Beaufort and Chukchi seas.
Shell has spent more than $3 billion to prepare for the drilling projects and has sought permits for several years, but legal challenges and regulatory hurdles have so far prevented the company from moving forward.
Shell was pleased to receive the draft permits, but said it was far from securing a final set of approvals.
“We view today’s announcement from EPA as positive. But there is still much to do to draw this permit to a final conclusion,” Shell spokesman Bill Tanner said.
Because Shell’s drilling plans would emit more than 250 tons of air pollution a year, the company has to obtain permits from EPA under the Clean Air Act. The EPA issued the permits last year, but environmental groups and Alaska Native villagers appealed the decision, saying the drill ship and support vessels would emit pollution that would harm residents and wildlife.
EPA’s independent Environmental Appeals Board then invalidated the permits and sent it back to the agency for changes.
Shell’s efforts to secure the permits has caught the attention of Capitol Hill lawmakers and House Republicans have been particularly sensitive to the company’s complaints. In June, the House passed a bill that streamlines the issuance of the permits and requires the EPA to either approve or deny them within six months of receiving an application.
Unlike drilling projects in parts of the Gulf of Mexico, where the Interior Department grants air permits, the projects off Alaska require EPA approval.
Friday’s announcement marks “a positive step in what has been a long and frustrating process,” Sen. Lisa Murkowski said in a statement. “I’m hopeful that the EPA’s process will work this time.”
The draft permits issued Friday apply to the “Discover” drillship and a supporting fleet of icebreakers, oil spill response vessels and supply ships. They cover operations beginning in the 2012 drilling season.
EPA will accept comment on the draft permits until Aug. 5. It will then work to finalize the approvals.
EPA is also working on two additional clean-air permits for separate drilling projects off Alaska’s coast. Shell has applied for a permit to operate a vessel “Kulluk” in the Beaufort Sea in 2012. ConocoPhillips Co., meanwhile, has applied for a permit for oil and natural gas exploration in the Chukchi Sea starting in 2013.
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