the government is backing off in it's demands for simultaneous relief wells, and in that environment, that's not a good thing.
NEB set to allow alternative for relief-well rule in ArcticSHAWN MCCARTHY — GLOBAL ENERGY REPORTER,
OTTAWA— From Friday's Globe and Mail
Article Link The federal energy regulator is easing a controversial regulation that oil companies say would prevent exploration in the ice-plagued Arctic offshore, but is promising to impose a high bar for environmental protection before it permits drilling.
After an 18-month review the National Energy Board said it would maintain its controversial relief-well regulation, but would give companies a de facto exemption if they can demonstrate they have alternative methods to quickly kill a blowout.
The Canadian board undertook its review after BP PLC’s catastrophic spill in the Gulf of Mexico raised new questions about the safety of offshore drilling, particularly given the short drilling season and extreme conditions in the North.
Several international oil companies have leases in large sections of the Beaufort Sea for exploration, and committed to invest billions of dollars to determine whether there are commercial quantities of crude oil deep under the frigid waters.
After consulting with northern residents, companies and environmentalists, the board concluded there was no reason to ban offshore drilling in the Beaufort, saying it has the necessary tools to protect the Arctic environment and its people.
Among the most contentious issues has been the NEB’s same-season relief well rule, which requires that, in order to get a drilling permit, companies must demonstrate that they would be able to complete a relief well and cap a blowout in the same season.
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