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The subject Regulatory Agenda is attached. The proposed update to decommissioning requirements (abstract below) should attract attention! I would assume that, in addition to meeting Coast Guard requirements, a toppled structure would have to be accepted into a State reefing program. Otherwise the liability risks would be unacceptably high.

REVISIONS TO DECOMMISSIONING REQUIREMENTS ON THE OCS
Legal Authority: Outer Continental Shelf Lands Act, 43 U.S.C. 1331 to 1356a
Relevant Executive Orders: 14154
Abstract: This rule proposes to set ‘‘topple in place’’ as the default decommissioning standard, on the condition that such circumstances meet U.S. Coast Guard navigational requirements. This proposed rule would also address issues that may include to (1) idle iron by adding a definition of this term to clarify that it applies to idle wells and structures on active leases; (2) abandonment in place of subsea infrastructure by adding regulations addressing when BSEE may approve decommissioning-in-place instead of removal of certain subsea equipment; (3) BSEE approval for platform or facility toppling in place; and (4) other operational considerations.
Timetable:
Action Date FR Cite
NPRM ……………… 07/00/27
NPRM Comment Period End. 10/00/27

No date for a final Arctic drilling or decommissioning financial assurance rule is projected. With regard to the latter, many important issues were raised by commenters, and a new proposal is likely and desirable.

A rule writer’s work is never done! Entire careers have been spent updating a single regulation! 😉

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The proposed revisions to the Arctic drilling regulations are a positive initiative that will improve the prospects for renewal of Beaufort and Chukchi Sea exploration.

In particular, removing the same-season-relief-well (SSRW) requirements in the current regulations is an essential regulatory action. The SSRW provision has the effect of precluding exploratory drilling while providing no added environmental protection and increasing operational risks. Given that there is at least a 50% chance that rig mobilization, relief well planning, drilling, repeated surveying, and plugging the flowing well would take more than the specified 45 days, a SSRW is not a legitimate well control option.

The preamble includes important questions for respondents. These questions are compiled beginning on p. 108 of the attachment. In particular, the comments on Subsea Isolation Devices (SSIDs) should be interesting. Given the required blowout preventer stack redundancy, it’s not clear to me that SSIDs would reduce blowout risk. They would however increase operational complexity.

For floating drilling operations in the Arctic and elsewhere, the focus needs to be on well design, integrity, and control.  Fortunately, by carefully verifying casing and cement integrity, ensuring complete barrier redundancy, and having standby capping and containment capability, the probability of a sustained oil blowout can be reduced to 106  or lower. 

Lastly for now, these regulations further demonstrate the importance of consolidating BOEM and BSEE in a single bureau.

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The proposed revisions to the Arctic drilling regulations have just been posted and are attached for your convenience.

From a risk management standpoint, the current Arctic drilling rule, particularly the same season relief well (SSRW) provisions, is arguably the worst in the history of the OCS program. Regardless of the prospects for Arctic exploration, offshore drilling is not feasible under the current regulations. Hopefully, this proposal represents a significant improvement. More to follow after the text has been reviewed.

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The Canning River, seen here in 2018, flows from the Brooks Range into the Beaufort Sea along the western edge of the Arctic National Wildlife Refuge. The river marks the boundary between the refuge, which is managed by the U.S. Bureau of Land Management, and state land on the North Slope. Results of an oil lease sale that offered 58 tracts in the refuge’s coastal plan drew bids on five tracts. The highest-dollar bid was for a tract right at the Canning River edge of the refuge’s border with state land. (Photo by Lisa Hupp/U.S. Fish and Wildlife Service)

Yesterday’s mandated One Big Beautiful Bill sale in the Arctic National Wildlife Refuge turned out to be a one-on-one competition between an Alaskan independent and a State agency! Only 5 of the 58 tracts received bids, and the high bid was $1.7 million.

The competitors:

  • HEX Energy, an Alaskan independent: 4 bids, 2 high bids
  • Alaska Industrial Development and Export Authority (AIDEA), the state government’s economic development agency: 5 bids, 1 high bid

Full sale results

The implications for Arctic offshore sales are not good, but oil companies can be fickle, and opinions and investment strategies are subject to change, especially in the Arctic.

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Nothing tilts public opinion more than high gasoline prices, or worse yet shortages! Hence the 1975 legislation establishing the SPR, the massive SPR drawdown in 2022, and this year’s withdrawals.

Looking back to the halcyon days of the US offshore program, it was the gas lines in the 1970s that drove the remarkable and rather unlikely growth in the program during the Carter Administration (1977-1981). A few highlights from those four years:

  • 15 lease sales including 3 offshore Alaska, 3 in the Atlantic, and 1 offshore California
  • Drilling activity in all 4 regions: GoM, Pacific, Alaska, and Atlantic
  • Natural gas discovery in the Mid Atlantic (Hudson Canyon Unit)
  • North, Mid, and South Atlantic District offices for permitting and inspections
  • 5300 well starts including 97 in water depths > 1000′
  • 314 new platforms including Cognac, the world’s first platform in > 1000′ of water

Perhaps unthinkable today, the Governor of Massachusetts from 1979-1983, Ed King, was a strong supporter of offshore drilling. Absent that support, the exploratory drilling on Georges Bank would probably have never occurred. /s/ Nostalgic Old Man 😉

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Not offshore, but close😉 Fond memories of my stay at NPRA many years ago.

Strong participation; nice mix of big dogs – Exxon, Shell, ConocoPhillips (CPAI), and Repsol – and independents.

Stats – 3/18/2026 NPRA lease sale:

  • Tracts offered: 625
  • Tracts receiving bids: 187
  • Sum of high bids: $ 163,696,722.2
  • Highest bid: $ 3,649,920.00 by Epoch Resources
  • Companies participating: 11
  • Total bids: 430
CompanyHigh Bids
North Slope Exploration78
Shell/Repsol (joint bids)42
CPAI30
Exxon24
Epoch8
Peritas2
Beacon1
Oil Search1
SE Partners1

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The results of today’s Cook inlet oil and gas lease sale are disappointing, but not surprising.

BOEM: At this time, no bids have been received. In accordance with OBBBA, we will continue to hold leasing opportunities for Cook Inlet so that industry has a regular, predictable federal leasing schedule that ensures we achieve President Trump’s American Energy Dominance Agenda.

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Expectations are low for tomorrow’s Cook Inlet oil and gas lease sale. The last Cook Inlet sale (2022) attracted only one bid (Hilcorp – $63,983).

The final sale notice is attached. The terms are favorable, most notably the 1/8 royalty and 10 year primary lease term.

Hopefully, we’ll be pleasantly surprised by the results.

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Tracts receiving bids in Sale BBG1

To date,BOEM has deemed 96 of the 181 BBG1 high bids to be acceptable. No high bids have been rejected. Although the sale was “beautiful but not big,” the bids were relatively strong on a per acre basis. The number of rejected bids may thus be quite low.

No bids were accepted during BBG1’s Phase 1 review. This means that none of the tracts receiving bids were determined to be nonviable as was the case for the 199 tracts that were improperly acquired for carbon disposal purposes in Sales 257, 259, and 261. (Unsurprisingly, neither of the acquiring companies has submitted an exploration plan for any of these CCS leases. The leases will likely expire without activity. Much to the dismay of the large and diverse group of opponents, the carbon disposal industry is focusing on onshore locations along the Gulf Coast.)

Meanwhile, a Cook Inlet lease sale is scheduled for March 4, and another Gulf of America sale will be held on March 11. Despite attractive terms, don’t expect either to be a banner “red jacket” lease sale. (See the John Rankin recognition below.)

More information on BOEM’s bid evaluation process.

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The Bureau of Ocean Energy Management (BOEM) is initiating the first steps that could potentially lead to a lease sale for minerals on the Outer Continental Shelf (OCS) offshore Alaska by publishing this request for information and interest (RFI).”

The Federal Register Notice is attached.

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