Congratulations to Dr. Ned Mamula on his confirmation as Director of the US Geological Survey. I had the pleasure of working with Ned when he was a young geologist in the Conservation Division (CD) of USGS. At the time, CD was the safety and environmental regulator for OCS oil and gas operations. Ned is a great guy and a dedicated geologist!
Ned’s statement at his confirmation hearing is attached. “Map Baby Map!”
Terrestrial Indonesian nickel mine site before and after miningBefore and after: terrestrial Chilean copper mine siteDeep-sea nodule field before and after collection by Impossible Metals
An Impossible Metals table (below) understandably favors their methods vs. those employed by deep-sea mining rival The Metals Company. However, both approaches are far preferable, environmentally and socially, to onshore metal mining.
Although President Trump rescinded Biden’s action via executive order on January 21, 2025, the court proceeded with the case, acknowledging the high likelihood of similar actions in the future.
Judge Cain concluded that Biden departed from historical executive practice and exceeded statutory limits under OCSLA Section 12(a), which allows the president to “withdraw from disposition any of the unleased lands of the outer Continental Shelf,” but does not explicitly authorize permanent or irrevocable bans.
The judge emphasized that prior withdrawals were typically temporary or modifiable, and attempts to make them permanent encroached on congressional powers.
The ruling reinforces that OCSLA withdrawals must be revocable by future presidents, limiting executive power to bind successors on public lands disposition. The ruling should prevent future reliance on leasing bans.
Judge Cain’s decision is important because leasing bans should be carefully considered and should not be executed casually at the end of a term for purely political purposes.
Phil also believes SYU production would reduce natural seepage: “UCSB and State Lands Commission studies (Quigley, Luyendyk, Hornafius, Peltonen, and others) have shown that when oil production is active, reservoir pressure is reduced and natural seepage declines by up to 50%. That means: •Cleaner beaches (less tar and oil) •Cleaner ocean surface (fewer sheens) •Healthier marine life with reduced chronic stress“
Note that those studies are specific to Platform Holly and the Coal Oil Point area. To the best of my knowledge, no studies have associated SYU production with a reduction in natural seepage.
While Platform Holly may be a negative spillage facility (i.e. Holly’s seep reduction may significantly exceed the platform’s production spillage), this type of seepage reduction has not been demonstrated at other platforms. Decisions on offshore exploration and development should be driven by the economic, energy security, and environmental benefits. To the extent that production reduces natural seepage, all the better. However, seepage reduction is not a primary reason for producing offshore oil and gas.
Option 1 (use of existing onshore infrastructure) is preferable from cost, air emissions, spill risk, State and local revenue, and regional energy supply standpoints. This is the only option that makes sense despite the enormous permitting challenges.
Option 2 (floating processing facility and tankers) would literally be an “in your face” act of defiance given the coastal visibility of the offshore facilities. Supporters of this option should be aware that there was no Coastal Zone Management Act when Exxon produced from Platform Hondo (the only SYU platform at the time) to the Offshore Storage and Treatment (OS&T) vessel in the 1980s. An EIS would not favor this option, and the California Coastal Commission would surely rule that this option was inconsistent with their CZM plan. The Secretary of Commerce could overrule the Commission’s decision, but legal objections to the override would seem to have a good chance of success.
The only reasonable path forward is to do the right thing and continue to pursue the State pipeline/onshore approvals. Although these approvals are substantively warranted, more litigation is probably inevitable. It will be far better to defend a good project (option 1) than a contrived workaround (option 2).
Those of us who were involved with OCS oil and gas operations in the 1970s remember the heated battles between Exxon and Santa Barbara County that led to the installation of the infamous Offshore Storage & Treatment (OS&T) facility in Federal waters. This was the first floating production, storage, and offloading facility (FPSO) in US waters by 3 decades!
In light of Sable’s difficult (bordering on impossible) onshore permitting challenges, the company resurrected the OS&T option in a recent presentation to investors (pertinent slide pasted above). The extent to which this is purely a tactical maneuver remains to be seen, but this option would be very difficult to execute, even with a supportive Federal regulatory environment.
NOAA is touting marine aquaculture and has published Programmatic Environmental Impact Statements for Aquaculture Opportunity Areas (AOAs) in the Gulf of America and offshore Southern California. This is a positive step.
While the focus of these EIS documents is on distinct AOAs separated from oil and gas facilities, NOAA might also have discussed the potential for synergy with existing platforms. The reef effect of platforms can be sustained and new fishery ventures supported by converting older platforms to aquaculture facilities (Rigs-to-Roe/Redfish/Rockfish) rather than decommissioning them.
According to a paper published in 2014 by marine ecologist Dr. Jeremy Claisse of Cal Poly Pomona, the oil and gas platforms off the coast of California are the most productive marine habitats per unit area in the world. “Even the least productive platform was more productive than Chesapeake Bay or a coral reef in Moorea,” said Dr. Love. (Milt Love, UCSB biologist)
Attached is the Dept. of the Interior’s Semiannual Regulatory Agenda (9/22/2025). BSEE and BOEM decommissioning rules are excerpted below.
Of particular concern is the revised BOEM regulation (107) that “would reduce the amount of supplemental financial assurance required from oil gas, and sulfur lessees operating on the OCS.” See our previous post on this regulatory action. Note that a proposed rule is expected to be published by year end.
REVISIONS TO DECOMMISSIONING REQUIREMENTS ON THE OCS [1014–AA53] Legal Authority: Outer Continental Shelf Lands Act, 43 U.S.C. 1331 to 1356a Abstract: This proposed rule would address issues relating 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; and (3) other operational considerations. Timetable: NPRM ……………… 07/00/26 NPRM Comment Period End: 10/00/26
RISK MANAGEMENT AND FINANCIAL ASSURANCE FOR OUTER CONTINENTAL SHELF LEASE AND GRANT OBLIGATIONS [1010–AE26] Legal Authority: 43 U.S.C. 1331, OCS Lands Act; E.O. 14154, Unleashing American Energy Abstract: This proposed rule would rescind BOEM’s final rule ‘‘Risk Management and Financial Assurance for OCS Lease and Grant Obligations.’’ The proposed rule would revise the criteria for determining whether oil, gas, and sulfur lessees, right-of-use and easement grant holders, and pipeline right-of-way grant holders are required to provide financial assurance above the current minimum bonding levels to ensure compliance with their Outer Continental Shelf (OCS) Lands Act obligations. This rule, if finalized, would reduce the amount of supplemental financial assurance required from oil gas, and sulfur lessees operating on the OCS and would support the goals of E.O. 14154; Timetable: NPRM ……………… 01/00/26
A long-time colleague is very familiar with Judge Lamberth, a Reagan appointee, and thinks highly of him. Orsted has a lease contract, and no matter where you stand on offshore wind, you have to have a compelling case to halt a project that is in the advanced stages of development. Judge Lamberth ruled that the govt doesn’t have such a case. Per the judge:
The govt presented insufficient evidence to support alleged permit noncompliance and national security concerns.
The govt acted in an “arbitrary and capricious” manner.
“If Revolution Wind cannot meet benchmark deadlines, the entire project could collapse.”
“There is no doubt in my mind of irreparable harm to the plaintiffs.”
Projects under development will be difficult to pause or stop. The Administration should focus on requiring sufficient decommissioning financial assurance, monitoring and mitigating project impacts, making incident data publicly available, issuing the report on the Vineyard Wind blade failure (finally!), and improving the availability of dispatchable power (i.e. natural gas and nuclear).
Judge Royce Lamberth granted an injunction allowing Orsted to resume work on the Revolution Wind project. BOEM halted work on the project one month ago.
Gov. Newsom and Danish Foreign Minister Lars Løkke Rasmussen
As is the case for most MOUs, the attached 8/22/2025 agreement between California and Denmark is long on promotion and short on substance. No funds are obligated and there are no work commitments.
The MOU made sense for Gov. Newsom in that he strengthened his green credentials by aligning with the country that is the spiritual leader for climate activists.
The benefits for Denmark were unclear, but the risks should have been apparent. The White House is fundamentally opposed to the climate and energy objectives identified in the MOU. Ørsted (50.1% govt owned) and other Danish business interests are very much dependent on decisions made by the US Federal govt.
Work on Ørsted’s Revolution Wind project has been halted by Interior Secretary Burgum. His decision is being challenged in court, but no matter what the outcome, offshore wind development will be difficult for Ørsted and other foreign companies going forward. The Secretary has broad regulatory authority under the OCS Lands Act, under which there is no such thing as “a fully permitted project.”
Meanwhile, California’s green status has taken a hit with the passage of S 237, which pragmatically authorizes new onshore drilling.
Lastly, as the chart below illustrates, Orsted’s problems didn’t begin in 2025.