Offshore Energy Management News

The Bureau of Safety and Environmental Enforcement (“BSEE”) issued three significant documents addressing response, enforcement, and safety issues related to offshore operations in August 2012. Specifically, BSEE issued (1) new guidance concerning regional Oil Spill Response Plans (“OSRPs”), (2) formalized policy addressing direct enforcement actions against contractors engaged in offshore activities, and (3) a Final Rule implementing new safety measures related to well control operations occurring on the outer continental shelf (“OCS”). The following is a summary of these new developments.

James A. Watson IV, Director of the Bureau of Safety and Environmental Enforcement (BSEE). Interior Secretary Ken Salazar Named Rear Admiral James A. Watson IV as New Director of the Bureau of Safety and Environmental Enforcement (BSEE) in November of 2011. BSEE was one of the two agencies to succeed the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) on Oct. 1, 2011. Admiral Watson began as BSEE Director on December 1, 2011, and will succeed Michael R. Bromwich. Previously, Watson was better known to maritime stakeholders as the U.S.

“The industry has been asking for clarity and certainty. Today’s announcement may provide a bit more clarity, but seems to only add to the uncertainty. We now know the structures and responsibilities of the new offshore energy management and enforcement agencies, but we still seek more certainty, particularly when it comes to permitting of deepwater work. “It seems that offshore operators will now need to communicate with one agency (BSSE) to obtain permits, but those permits will be reliant upon swift completion of environmental review by another agency (BOEM), thus creating the possibility for further bureaucratic delay. The real test is whether or not a permit for new deepwater drilling is issued in the very near future.

Secretary of the Interior Ken Salazar announced that a team led by senior officials in the Department of the Interior, including Interior’s Inspector General, have completed a review of offshore oil and gas oversight and regulation and have delivered a set of recommendations that reinforce and expand on ongoing reforms being carried out by Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) Director Michael R. Bromwich. The report of the Outer Continental Shelf (OCS) Safety Oversight Board, which Secretary Salazar established immediately following the explosion of the Deepwater Horizon rig, provides recommendations to strengthen permitting, inspections, enforcement and environmental stewardship.