The Department of Interior and the Department of Energy announced today a new Memorandum of Understanding (MOU) which seeks to prioritize and facilitate environmentally responsible deployment of commercial-scale offshore wind and marine hydrokinetic energy technologies on the Outer Continental Shelf. Under the MOU, the two agencies will facilitate such development by pursuing priority leasing and efficient regulatory processes for sites with high commercial-scale offshore wind and water power development potential, as well as exchange information and collaborate on research projects. "We have a major opportunity to tap the energy in waves and offshore wind," said Energy Secretary Steven Chu. "Increasing cooperation between our agencies will help make clean, renewable energy a reality."
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A coalition of environmental groups filed a lawsuit in federal court today claiming the Cape Wind farm approved for offshore Massachusetts violates federal law by endangering shorebirds and migrating whales.
The coalition, which includes the Alliance to Protect Nantucket Sound, the Public Employees for Environmental Responsibility, Californians for Renewable Energy Inc., and the Texas group Lower Laguna Madre Foundation, allege that the Bureau of Ocean Energy Management and the U.S. Fish and Wildlife Services violated the Endangered Species Act, the Migratory Bird Treaty Act, and the National Environmental Policy Act in approving the Cape Wind project. Specifically, the coalition claims that the government failed to conduct required scientific studies and ignored protective measures. Interior Secretary Ken Salazar approved construction of the wind farm last April.
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Senator Mary Landrieu (D-LA) sent a letter to William Reilly, co-chair of the commission investigating the Gulf of Mexico oil spill, asking the commission not to leave the six-month moratorium on deepwater E&P activities in place while it finishes its investigation.
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Speaking before a Senate subcommittee yesterday, Michael R. Bromwich, the recently-appointed director of the renamed Bureau of Ocean Energy Management, Regulation and Enforcement, said that his goal was to “break up the cozy relationship between some agency workers and the oil and gas industry,” promising “zero tolerance” for “corruption and coziness.” Congressional Quarterly [subscription required] provides additional coverage.
Separately, Sens. Jeff Bingaman (D-NM) and Lisa Murkoski (R-AK) introduced S. 3516, the Outer Continental Shelf Reform Act, that would give Secretary of the Interior Ken Salazar new authority to overhaul offshore E&P regulations. A hearing has been scheduled for the Senate Energy Committee to consider the bill.
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The New Jersey Department of Environmental Protection on June 18 announced the release of a draft report which shows that the development and operation of offshore wind farms off the southern New Jersey coast would have minimal environmental impact. An ongoing study will collect data on the abundance, distribution and migratory patterns of bird species, fish, marine mammals and turtles in the offshore area where wind development may be feasible. The final report, which is likely to affect the evaluation of the proposed Fisherman's Energy project, is expected to be issued in early July.
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The Boston Globe reports that Cape Wind Associates, LLC has narrowed down the list of contractors to build the proposed Cape Wind offshore wind farm, which is slated for the waters off of Nantucket Sound, Massachusetts. Jim Gordon, president of Cape Wind Associates, declined to name any bidders, but said that negotiations were ongoing. Meanwhile, on Monday, the Massachusetts Department of Public Utilities held its second public hearing on the proposed power purchase deal between Cape Wind and National Grid PLC.
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On June 18, 2010, Secretary of the Interior Ken Salazar issued an order renaming the U.S. Minerals and Management Service to the Bureau of Energy Management, Regulation and Enforcement. The Bureau of Energy Management will eventually be reorganized into three different agencies to oversee royalty collection, energy leasing, and safety enforcement.
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Judge Martin Feldman of the U.S. Federal District Court for the Eastern District of Louisiana has granted a preliminary injunction against the imposition of a general moratorium on deepwater drilling for oil in the Gulf of Mexico. Judge Feldman found that the Department of Interior's decision to halt E&P operations in waters deeper than 500 feet was arbitrary and capricious.
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Yesterday President Obama announced that Michael R. Bromwich has been selected to lead efforts to reorganize and reform MMS. Bromwich is a former Assistant U.S. Attorney and previously served as Inspector General of the U.S. Department of Justice.
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The U.S Department of Energy (DOE) on Tuesday released a Request for Information (RFI) seeking input from the public regarding the research, development and deployment of advanced technology offshore wind demonstration projects. DOE anticipates that such demonstration projects will be carried out via collaborative partnerships with a wide range of eligible organizations. Information responsive to this RFI is due by July 14, 2010.
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Today the U.S. Department of the Interior made public its response to the Advisory Council on Historic Preservation regarding Interior’s Record of Decision that provisionally approved the Cape Wind project. Further details are available in the Federal Register.
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Today President Obama announced the remaining members of the offshore drilling commission to be co-chaired by former Sen. Bob Graham (D-FL) and William Reilly.
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Yesterday the U.S. Department of Interior issued a Notice to Lessees (NTL) that outlines increased safety requirements for offshore E&P operations. Specifically, the NTL requires new certifications by a well operator's CEO that the company is operating the well in compliance with all regulations and testing standards, new certifications from a professional engineer that the well casing and associated equipment meet installation standards, and a number of other inspection and reporting requirements.
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The DOI has entered into a Memorandum of Understanding with nine states along the Atlantic Coast to form the Atlantic Offshore Wind Energy Consortium. The Consortium will serve as a first step toward the goal of broader collaboration and coordinated efforts among the Atlantic states and relevant federal agencies that are critical to the development of the offshore wind industry. Randall Luthi, the President of the National Ocean Industries Association, applauded the announcement. "Future energy development on the Outer Continental Shelf, whether it be wind, wave, ocean current, solar, or conventional oil and natural gas will further diversify the nation's energy sources while generating new jobs for Americans, and reducing our dependence on foreign energy sources."
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Noting confusion among offshore energy industry players, President of the National Ocean Industries Association (NOIA) Randall Luthi requested that MMS issue further guidance on the parameters of the new offshore drilling moratorium. In his letter to the acting director of MMS, Robert Abbey, Luthi suggests that the agency should release new “guidance, possibly in the form of a Notice to Lessees,” as soon as possible. Luthi also says that if MMS pursues a formal rulemaking on the safety requirements for offshore E&P, interim guidance should be released to allow drilling during the rulemaking process.
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Louisiana Governor Bobby Jindal, in a letter dated June 2, urged President Obama and Interior Secretary Ken Salazar to overturn the moratorium on deepwater drilling activities in the Gulf of Mexico. Gov. Jindal argues that the six-month deepwater moratorium, which applies to 33 permitted exploratory wells in the Gulf, will eliminate an estimated 3,000-6,000 Louisiana jobs in the next few weeks, and potentially over 10,000 within a few months. Gov. Jindal asks that "the federal government move quickly to ensure that all deepwater drilling is in proper compliance with federal regulation and is conducted safely so that ... thousands of jobs ... are not in limbo." Senator David Vitter (R-LA) sent a similar letter to President Obama the following day, arguing that the moratorium should be replaced by more aggressive rig inspections.
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Earlier this week, MMS Acting Director Bob Abbey announced that additional information regarding potential risks and safety concerns will need to be incorporated into plans for the exploration and development of the OCS. Moreover, any previously approved plans must be resubmitted with the additional information before any new wells are drilled. Abbey also urged Congress to enlarge the 30-day congressionally-mandated deadline for MMS to review exploration plans to 90 days to allow time for additional environmental and safety reviews. He explained that these measures are designed to facilitate a more cautious approach to OCS development.
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In a press release issued June 2, 2010, the National Ocean Industries Association (NOIA) warns that President Obama's moratorium on exploratory wells in the Gulf of Mexico and new deepwater drilling could cost Americans thousands of jobs and the government billions of dollars in revenue. NOIA also suggests that the President’s actions may end up increasing U.S. dependence on foreign oil, urging the government to take “less harmful solutions such as increased inspection and recertification of equipment.” According to NOIA, the offshore industry provides approximately 200,000 jobs in the Gulf of Mexico and an average of $13 billion a year in government revenue.
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