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Archive for the ‘Regulation’ Category

Comments on brief supporting California’s challenge to the use of the DPA to restart SYU production

Posted in California, energy policy, Offshore Energy - General, pipelines, Regulation, tagged , , , , , , on September 14, 2026| 2 Comments »

Twenty Members of Congress (17 from California) filed the attached amicus brief in support of California’s challenge to the use of the Defense Production Act (DPA) to facilitate the restart of production at the Santa Ynez Unit (SYU) in the Santa Barbara Channel.

Per their filing:

“This case is not about national defense. It is about a heavily leveraged, crude oil company asking the President to transform the DPA from a statute designed to“assure the availability of domestic energy supplies for national defense needs,” 50 U.S.C. § 4502(a)(5), into a corporate rescue operation for political allies; a rescue that advances the Administration’s political preference for fossil-fuel development at the expense of all other concerns. The Department of Energy’s (“DOE”) March 13, 2026 order (the “Wright Order”) comes nowhere close to identifying a need for Sable crude oil or pipelines in the Order’s generalized invocation of California’s military presence and increased reliance on foreign crude.”

Comments:

  • The brief includes no new arguments or information.
  • Is it not disingenuous to raise concerns about Sable’s financing when these critics and their allies spent a decade blocking Exxon, one of the world’s strongest companies, from restarting SYU production? Exxon’s frustration led to the ownership transfer to Sable, even though Exxon could still be held liable for some obligations, most notably decommissioning.
  • Given the conflict-driven turmoil in the energy markets and the risk of shortages affecting military operations, how is it a stretch to issue a DPA order directing the restart of an important onshore pipeline?
  • A Federal judge for the Central District of California has already opined that the DPA is a “significant statutory grant of authority to the executive, giving the President substantial discretionary power to compel private industry, allocate resources, and incentivize domestic production for national defense.”
  • With oil prices soaring, this is a bad time to attempt to halt a 20+% increase in California oil production.
us_dis_cacd_2_26cv3396_d31306472e4249_notice_of_motion_and_motion_to_file_amicus_brief_iDownload

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On 9/11, recalling recent judicial and programmatic decisions that favored higher oil prices and threatened national security

Posted in climate, energy policy, Gulf of Mexico, Offshore Energy - General, Regulation, tagged , , , , , on September 11, 2026| Leave a Comment »

Two particularly troubling examples of decisions that threatened long-term US offshore production and national security, and endorsed higher oil prices:

Sale 257 court ruling: In 2022, a Federal judge ruled in favor of higher oil prices. In response to an OCS Sale 257 lawsuit, the judge agreed with the NGO plaintiffs that BOEM failed to consider the “positive” effect that higher prices (the logical result of lower production) would have on reducing demand. In particular, the plaintiffs asserted that BOEM failed to consider the effect that reduced production (and higher prices) would have on foreign consumption and the associated GHG emissions.

The judge not only decided in favor of the plaintiffs, but ruled that BOEM’s omission was so serious that the lease sale had to be vacated. The judge’s decision was subsequently overturned by legislative action.

OCS Leasing Policy: The official leasing policy, as articulated in the 2024-2029 OCS Leasing Program (published 9/2023), was to phase out oil and gas production:

The long-term nature of OCS oil and gas development, such that production on a lease may not begin for a decade or more after lease issuance and can continue for decades, makes consideration of net-zero pathways relevant to the Secretary’s determinations on how the National OCS Program best meets the Nation’s energy needs. (p. 6, 2024-2029 Leasing Program)

The Leasing Program prioritized “net-zero pathways” over cost and national security considerations. The clear objective was to prevent new production. Absent legislative action, we would have had a 5 year leasing plan with no lease sales!

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Michael Olsen to succeed Matt Giacona as Director of the Marine Minerals Administration

Posted in energy policy, Offshore Energy - General, Regulation, tagged , , , , on September 9, 2026| Leave a Comment »

Matt Giacona
Mike Olsen

Politico is reporting that Michael Olsen has been selected to head the Marine Minerals Administration (MMA), following Matt Giacona’s departure for a position in Halliburton.

I’m not aware of any backstory behind Matt Giacona’s departure. He was well regarded and was providing strong leadership as Acting Director of the consolidated offshore energy bureau.

Managing the offshore program is very difficult and administratively complex, with acrimony and litigation around every corner. Less stress and (presumably) more money may have made the Halliburton opportunity attractive. Best wishes to Matt in his new position!

Mike Olsen has served in a number of positions in Interior and reports have been favorable. BOE wishes him well in leading this nationally important bureau.

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Fish Reef Project explores the marine habitat at Platforms Ellen and Elly

Posted in California, decommissioning, energy policy, Offshore Energy - General, Regulation, rigs-to-reefs, tagged , , , , , , , , , , on September 1, 2026| 1 Comment »

Chris Goldblatt, CEO of the Fish Reef Project shared this impressive new video on the habitat beneath Platforms Ellen and Elly in the Beta Unit offshore Huntington Beach, CA. As Chris explains in the video, such valuable habitat will be needlessly lost if companies are required to remove structures down to the seafloor.

Platforms Ellen and Elly

A National Geographic article discussed the marine life beneath Eureka, the third platform in the Beta Unit:

“Every square inch is covered in marine life,” says Milton Love, biologist at the Marine Science Institute at University of California, Santa Barbara. “Sometimes there are so many fish that you can’t even see through them to the platform. It’s overwhelmingly striking.”

Jeremy Claisse, Cal Poly Pomona, called Eureka “as productive as any other marine fish habitat that has been studied around the world.”

Sea lion beneath Platform Eureka. Photo by Joel Platko

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California State Lands Commission study targets offshore pipelines

Posted in California, energy policy, Offshore Energy - General, pipelines, Regulation, tagged , , , , on August 31, 2026| Leave a Comment »

John Smith informs us that the California State Lands Commission is developing an Analysis of Impacts to Public Trust Resources and Values (APTR) for the remaining offshore oil and gas pipeline leases under its jurisdiction. See the attached slides.

The APTR will assess the risks and impacts of continued offshore pipeline use and will include additional analyses related to pipeline integrity, cultural resources, ocean and coastal uses, and economic resources.

John suspects the primary underlying purpose of this study is to build a case for terminating all offshore oil and gas production by imposing requirements that would make offshore oil and gas production uneconomic. This could be accomplished by significantly increasing lease rental and bonding requirements, imposing more stringent pipeline inspection and repair requirements, or requiring operators to shut down or replace pipelines and other aging infrastructure considered by the state to pose an unacceptable risk to the environment.  

Also, given that Platform Irene is on a terminated OCS lease and is no longer producing, John and I are wondering why the Irene pipelines are included in the APTR study.

o-g-aptr-presentationDownload

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Atlantic Wind War update – Delaware Appeals Board to hear challenge to State’s coastal zone consistency decisions

Posted in energy policy, Offshore Wind, Regulation, tagged , , , , , , , , , on August 28, 2026| Leave a Comment »

US Wind “MarWin” lease – green
US Wind “MarWin” project

Unlike offshore oil and gas projects, where State and local govt are usually of one mind (pro or con), States and localities have disagreed sharply about offshore wind. This is particularly true in New Jersey, Delaware, and Maryland, where the State governments are wind advocates despite strong local opposition.

As a result of litigation filed by local entities, and with the acceptance of the Courts, the US Dept. of the Interior is reconsidering Construction & Operations Plan (COP) approvals for the SouthCoast Wind project offshore Massachusetts and Rhode Island, the Atlantic Shores project offshore New Jersey, and US Wind’s Maryland Offshore Wind (“MarWin”) project. These COPs were approved at the end of the previous Administration. Most notably, the SouthCoast Wind COP was approved on 1/17/2025, just three days before the inauguration.

With regard to the US Wind MarWin project, there is a new twist in that the Delaware Environmental Appeals Board unanimously agreed to hear challenges to the State’s CZMA consistency decisions. The complete appeal file is attached.

The criticism of US Wind’s failure to address the risks of turbine blade failures and emergency response plans (p. 10) is warranted given the unacceptably high rate of such failures, the 2024 Vineyard Wind failure (still no investigation report!), and last month’s troubling blade failure at the He Dreiht wind farm offshore Germany (photo below).

Photo: Bundespolizeiinspektion See Cuxhaven
Statement-of-Appeal-BintzDownload

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Norway’s Improved Recovery Award goes to Okea

Posted in energy policy, Norway, Offshore Energy - General, Regulation, tagged , , , , , , on August 26, 2026| Leave a Comment »

Norway’s Improved Recovery Award recognizes companies that apply new methods and technology to increase oil and gas recovery on the Norwegian Continental Shelf. This year’s winner is Okea, an operator of mid- and late-life assets. Okea seeks to extend field life, explore for new resources, and unlock value from existing infrastructure.

“The end is also a good start”

Okea is using geosteering technology and real-time data integration to drill and target record length horizontal wells. As a result, the production of marginal resources has become profitable. Their systematic exploration has also increased oil and gas reserves for both Brage and Draugen. The estimated life of these platforms has thus been extended to 2040.

Braga
Draugen

The Brage field in the North Sea was discovered in 1980, and production began in 1993. The Draugen field in the Norwegian Sea was discovered in 1984, and started production in 1993. Impressively, the expected recovery rate has increased from 67.3 percent in 2019 to 72.6 percent in 2026.

This is an excellent awards concept that should be considered for US offshore operations, where companies in the Gulf, Pacific, and the Beaufort Sea/Cook Inlet are making special efforts to increase ultimate recovery from mature fields.

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End game for OCS carbon disposal?

Posted in CCS, energy policy, Regulation, tagged , , , , , , on August 25, 2026| Leave a Comment »

Gulf of America lease map: 199 oil and gas leases were wrongfully acquired for carbon disposal purposes. At Sale 261, Repsol acquired 36 nearshore Texas tracts in the Mustang Island and Matagorda Island areas (red blocks at the western end of the map above). Exxon had acquired 163 nearshore Texas tracts (blue in map above) at Sales 257 (94) and 259 (69).

In pursuit of a “$4 trillion industry” funded by tax credits and energy consumers, Exxon tarnished the corporation’s impressive Gulf of Mexico legacy by acquiring oil and gas leases solely for carbon disposal purposes (see caption above). That gambit and Repsol’s copycat strategy have apparently failed.

On June 29, 2026, Energy Intelligence reported that Exxon had begun relinquishing those leases. Kudos to those in the Administration who refused to buckle under pressure from lobbyists seeking to convert the leases to authorize carbon disposal.

That said, this sad chapter in OCS program history may not be over. 94 of the disposal leases have yet to be relinquished. Here is the current status of the improperly acquired leases:

  • All 36 of the Repsol’s Sale 261 leases were relinquished effective 2/19/2026.
  • All 69 of Exxon’s Sale 259 leases were relinquished effective 6/11/2026.
  • None of Exxon’s 94 Sale 257 leases have been relinquished to date. Perhaps these leases are being held as a hedge in case there is another legislative end run or a policy decision that would facilitate conversion of the leases, or for tax/accounting purposes? As things stand, the leases expire in Oct. 2027.

Exxon and Repsol attempted to gain an unfair advantage by acquiring their preferred disposal leases without competition and before leasing and regulatory processes had been established. One could argue that they were fortunate to have avoided criminal penalty consideration given that they knowingly and willfully violated the terms of the sale notices.

The companies will lose their bonus payments which amounted to approximately $25 million for Exxon and $4 million for Repsol. They have also been paying rental fees of $10/acre/year for the Sale 259 and 261 leases, and $7/acre/year for the Sale 257 leases.

Lastly, one company was directly affected by the improper bidding.  Focus Exploration was a second bidder for one of the blocks acquired by Exxon in Sale 259 (red in map below). Presumably, Focus was interested in acquiring the tract for oil and gas exploration purposes, but their bid was a bit lower than Exxon’s. Should Focus be compensated in some manner?

History of the Exxon and Repsol CCS lease acquisitions.

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Big win for Sable!

Posted in California, energy policy, Offshore Energy - General, pipelines, Regulation, tagged , , , , , , , on August 20, 2026| Leave a Comment »

Sable Offshore Corp. may use an emergency restart order from Energy Secretary Chris Wright as legal authority to continue transporting Santa Ynez Unit production through the onshore pipeline system.

Judge Stephen V. Wilson said the Defense Production Act (DPA) is a “significant statutory grant of authority to the executive, giving the President substantial discretionary power to compel private industry, allocate resources, and incentivize domestic production for national defense.”

The opinion also granted the Trump administration’s request to modify a federal consent decree entered in 2020 which governs the restart of the Las Flores pipeline system.

The order removes the California Office of the State Fire Marshal as the primary agency responsible for Sable’s compliance with the oil spill consent decree, and substitutes the Pipeline and Hazardous Materials Safety Administration.

Here is the 45 page decision.

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Interesting DOI Regulatory Agenda update!

Posted in Alaska, decommissioning, energy policy, Offshore Energy - General, Regulation, tagged , , , , , , on August 19, 2026| 6 Comments »

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! 😉

Federal Register – DOI Notice of Regulatory AgendaDownload

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