Oil giant Royal Dutch Shell PLC has decided to again seek U.S. government permission to drill for oil in the Arctic.
The company filed an exploration plan with the Department of Interior’s Bureau of Ocean Energy Management on Thursday, according to a report in Financial Times.
An earlier effort to obtain approval for drilling in the fragile Chukchi Sea was blocked by the federal appeals court in San Francisco, which ruled that BOEM’s environmental impact statement on $2 billion worth of leases sold to Shell did not comply with federal law. The decision in Native Village of Point Hope v. Jewell pushed Shell’s nearly decade long effort to extract hydrocarbons from some of the most environmentally sensitive marine areas on Earth back to the drawing boards.
Shell has also experienced a series of machinery disasters in the Arctic, including the grounding of a vessel off the coast of Sitkalidak Island, Alaska in 2012. A Coast Guard report on that incident released last April concluded that “inadequate assessment and management of risks” was a principal cause of it.
Within U.S. terrritorial waters, the federal government owns the sea and seabed beyond 5.6 kilometers past the shoreline. Two statutes that date back to the 1950s – the Submerged Lands Act and the Outer Continental Shelf Lands Act – together authorize the secretary of the interior to lease submerged oil and gas deposits. However, that authority is subject to a variety of constraints imposed by broadly applicable environmental laws, including the National Environmental Policy Act. NEPA requires federal agencies to study the environmental impact of “major federal actions” before moving forward with them.