Federal Regulators New Drilling Rules

Wednesday, June 09, 2010

According to a June 8 report from The Houston Chronicle, the Obama administration imposed new safety requirements Tuesday for offshore drilling, paving the way for energy companies to resume oil and gas exploration in shallow waters after private inspectors sign off on their operations. The move effectively lifts a ban on shallow-water drilling, though companies could spend weeks or months trying to comply with the mandates for new equipment testing and other safeguards before they can resume operations less than 500 feet below the surface of the sea. Although the new safety rules apply to oil and gas exploration in all federal waters, a ban on drilling in deeper depths will continue for at least six months.

(Source: The Houston Chronicle)

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