05/14/2020 - Regulatory Rollback

BSEE & BOEM’S Exploratory Arctic Drilling Rule

by EELP Staff

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Why it Matters

Following the Deepwater Horizon explosion and oil spill, the Department of the Interior (DOI) underwent a significant reorganization and issued rules and guidance to fill regulatory gaps in emergency response and operational oversight (for more on these changes, see our post on the 10 year anniversary here). President Obama also removed certain areas of the outer continental shelf from oil and gas development. (The outer continental shelf or OCS consists of “all submerged lands lying seaward of state coastal waters…under U.S. jurisdiction.”) Rolling back these rules and designations increases risks to offshore oil worker safety and, the non-oil and gas related economic value of oceans and coastal areas, and the ecological well-being of those areas.

On July 15, 2016, BOEM and BSEE jointly finalized new requirements for exploratory drilling in the Beaufort and Chukchi seas off she coast of Alaska. Given the extraordinary challenges of operating in Arctic environments and limited response capabilities available, the agencies determined that additional equipment and operations requirements were necessary to ensure adequate safety and environmental protections. The rule imposed heightened requirements for exploratory drilling operations in the Arctic designed to ensure operators account for local conditions. Rolling back these reforms could endanger fragile Arctic ecosystems.

Click here to view our page on the EO 13795: Implementing an America-First Offshore Energy Strategy and the other changes that have followed the EO. For more information on the reforms that followed the Deepwater Horizon disaster, view our 10-year anniversary post here.

Current Status

Trump’s April 28, 2017 Executive Order 13795 directed the Department of Interior to review the 2016 rule, as did Interior Secretary Zinke’s May 1, 2017 Secretarial Order 3350 implementing Trump’s order. On Dec. 9, 2020 BOEM and BSEE proposed rolling back nearly half of the provisions in the 2016 Arctic Exploratory Drilling Rule.

When President Biden took office on Jan. 20, 2021 he signed EO 13990 that revoked Trump’s EO 13795 and directed all agencies to review and consider revising rules issued during the Trump administration. President Biden’s EO 14008, signed on Jan. 27, 2021, orders a review of the permitting and leasing practices for offshore oil and gas and pauses all new leasing during this time. The department has extended the comment period for the rule through April 9, 2021.

History

July 15, 2016 BSEE / BOEM / DOI finalized a rule to govern exploratory offshore Arctic drilling.

Trump Era

April 28, 2017 President Trump signs Executive Order 13795 to “encourage energy exploration and production” on the OCS. The Order directs Interior to reconsider the offshore exploratory Arctic drilling rule.

May 1, 2017 Zinke’s Secretarial Order 3350 instructs BOEM and BSEE to jointly review the July 15, 2016 exploratory Arctic drilling rule and submit a report within 21 days with recommendations as to whether to suspend, revise, or rescind the rule. News about the results of that review has yet to be made public.

Dec. 26, 2019 Interior’s Fall 2019 Regulatory Plan, published in December 2019, listed the exploratory Arctic drilling rule as a priority for the agency in the fiscal year 2020. A draft proposed rule has not yet been sent to OMB’s Office of Information and Regulatory Affairs for review.

April 24, 2020 The proposed rule is sent to OMB’s Office of Information and Regulatory Affairs for review prior to publishing in the Federal Register.

Dec. 9, 2020 BOEM and BSEE propose rolling back nearly half of the provisions in the 2016 Arctic Exploratory Drilling Rule. The comment period on the proposed rule extends through February 8, 2021.

Early Biden Actions

Jan. 20, 2021 President Biden signs EO 13990 that revokes Trump’s EO 13795 and directs all agencies to review and consider revising rules issued during the Trump administration.

Jan. 27, 2021 President Biden’s EO 14008 orders a review of the permitting and leasing practices for offshore oil and gas and pauses all new leasing during this time.

Feb. 10, 2021 BSEE and BOEM extend the comment period for the proposed revisions to the Arctic Exploratory Drilling Rule until April 9, 2021.