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Archive for the ‘Regulation’ Category

Background: By a 3-2 vote, the Santa Barbara County Planning Commission, acting under the direction of the Board of Supervisors (also by a 3-2 vote), passed ordinances to ban new onshore oil and gas wells and phase out old wells.

The quote:

“We keep discovering new oil and new techniques to recover it,” said Commissioner John Parke. “The only thing to stop the oil industry and the production of oil is legislation.”

Comments:

  • The first sentence is perceptive, acknowledging that resources are not really finite given the ingenuity of engineers and geologists.
  • The second sentence is disturbing. The Commissioner believes he is legally and morally entitled to terminate an industry that has been present in Santa Barbara County for >130 years. He believes the Commission can do so by a slim majority and without compensation to those whose property rights are being abrogated.
  • The 2 Commissioners voting against euthanizing the County’s oil industry represent Districts 4 and 5 (maps below) where most of the wells are located. In essence, South County Santa Barbara is terminating an industry that is important to North County.
  • Pertinent to the County’s action is a suit filed by John and Melinda Morgan, who inherited the mineral rights to two parcels in the Cat Canyon Field (District 4). They argue that a similar provision in CA Senate Bill 1137 amounts to an unconstitutional taking of their property.

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Three wind turbines, including one with a damaged blade, at the Vineyard Wind offshore site in November 2024. Credit: Eleonora Bianchi / The New Bedford Light.

Yet another chapter in the Vineyard Wind saga:

New Bedford Light: Vineyard Wind on Wednesday sued its turbine supplier, GE Renewables, in civil court in Boston, alleging GE is breaching its contract and planning to abandon the project by April 28 — during the critical final stage of coming fully online.

According to the complaint, GE filed a termination notice with Vineyard Wind in late February for its contracts to supply wind turbines and service and maintain them, citing more than $300 million in claims unpaid by Vineyard Wind.

If GE exits, Vineyard Wind says, the project “will likely fail, leaving the windfarm stranded.”

The New Bedford Light provides more details on the litigation.

Remember, BOEM waived the “pay as you build” decommissioning financial assurance requirement for Vineyard Wind and subsequently relaxed financial assurance requirements for all offshore wind projects.

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Honored to be named Inspector of the Year. I’m sincerely thankful to my supervisor and the management involved for recognizing my commitment to this mission, and I’m proud to work alongside the Well Operations Inspection team, whose support and professionalism elevate all of us. This award reflects our shared dedication to safety and the environment.”

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Wamsutta Frank James speaking in Plymouth, at the statue of Massasoit.

My wife has native American (Micmac) heritage. Her family has deep respect for the Wampanoag tribe, in part because of their friendship with Aquinnah Wampanoag elder and activist Frank B. (Wamsutta) James.

Frank rescued my father-in-law after a car crash on Cape Cod and was a close friend for the rest of his life. Frank and my father-in-law, who headed the Art Dept. at Barnstable H.S., had common interests in art and history. Frank was also a talented musician, and was my wife’s music teacher at Eastham Elementary School on the Outer Cape.

Frank fought for the rights of Native Americans long before it was fashionable. In 1970, the speech be wrote to commemorate the 350th anniversary of the arrival of the Mayflower was never delivered, because it was deemed to be inflammatory. In his draft remarks, Frank succinctly summarized the tribe’s recent history:

Although time has drained our culture, and our language is almost extinct, we the Wampanoags still walk the lands of Massachusetts…. Our spirit refuses to die.”

This spirit is evident in their opposition to wind projects that impact their historic and cultural homeland.

If Frank was alive today, he would no doubt be tirelessly supporting the preservation efforts of the Aquinnah Wampanoag Tribe. Most recently, the tribe joined the Narragansett Tribe, Green Oceans, commercial fishermen, and others in a suit challenging federal approvals for the Sunrise Wind project. Green Ocean’s press release is attached.

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I’m attaching the complete comment letters from Sable Offshore and their main antagonist, California Attorney General Bonta, in response to PHMSA’s public notice and request for comments on Sable’s special permit application.

Summary of the California AG’s assertions:

“First, PHMSA is without authority to grant such a special permit because Lines CA-324/325 are intrastate pipelines and California regulators have sole regulatory oversight over any attempt to restart these Lines and issue state waivers. Second, California has vested interests in ensuring Lines CA-324/325 operate safely and PHMSA’s proposed special permit would dilute the higher state safety standards that were imposed on Sable and therefore it is inconsistent with pipeline safety. 49 C.F.R. § 190.341(d). Third, given the fact Line CA-324 already failed and caused a catastrophic oil spill in 2015 in Santa Barbara County, even if PHMSA had authority to issue a special permit (which it does not), a more robust environmental analysis needs to be performed. Fourth, PHMSA unlawfully invokes the Endangered Species Acts’s emergency consultation procedures and has given no indication that it will consult with the National Marine Fisheries Service, in violation of the Act. Finally, Secretary Wright’s March 13, 2026, order (“DPA
Order”) does not change anything about the propriety of the Application, because the DPA Order itself is unlawful.”

Summary of Sable’s position (screenshot):

You can sample the other public comments, some of which are quite good, by visiting the Regulations.gov docket.

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The Department of the Interior today announced the start of a phased plan to establish the Marine Minerals Administration, bringing together the functions of the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement. This action is intended to improve coordination and increase efficiencies across offshore leasing, permitting, inspections and environmental oversight, while maintaining all existing regulatory protections and rigorous safety standards. 

This streamlined approach reflects the evolution of offshore energy development and the need for a more integrated approach to managing conventional and emerging resources such as critical minerals. By aligning planning, leasing and oversight functions, the Department is positioning the agency to better meet current and future energy demands.

This is an excellent step that many OCS program veterans have been advocating. In addition to the inefficiencies associated with overlapping and intertwined BOEM and BSEE responsibilities, the associated regulatory fragmentation is a significant safety risk factor.

See the comments that I submitted to the Dept. of the Interior in response to their request for regulatory reform recommendations.

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For those who haven’t suffered enough following the BOE blog😉, you can listen to me on the G’Day Mate podcast hosted by offshore industry veterans Evan Zimmerman and Tom Pado. You may also want to check out other episodes on their excellent podcast.

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The ESA, which was enacted with good intentions, has perhaps been most effective in blocking, delaying, or complicating energy development. In the Gulf of America, the primary species in recent ESA battles has been the Rice’s whale.

While this blog was focused on the Santa Ynez Unit drama, a major ESA policy maneuver for the Gulf of America was in the works.

A provision of the ESA authorizes an Endangered Species Committee, known to critics as the “God Squad,” to grant exemptions to ESA requirements. The Committee is comprised of the Secretary of the Interior (chair), the Secretary of Agriculture, the Secretary of the Army, the Chairman of the Council of Economic Advisors, the Administrator of the Environmental Protection Agency, and the Administrator of the National Oceanic and Atmospheric Administration.

Yesterday, the Committee met (notice attached) and agreed to exempt Gulf oil and gas operations from the Endangered Species Act.

Knowing the swings in the political pendulum, provisions for reversing this decision warrant attention. The applicable language from the statute is pasted below:

16 U.S. Code § 1536 (h)(2)

(B) An exemption shall be permanent under subparagraph (A) unless

(i) the Secretary finds, based on the best scientific and commercial data available, that such exemption would result in the extinction of a species that was not the subject of consultation under subsection (a)(2) or was not identified in any biological assessment conducted under subsection (c), and

(ii) the Committee determines within 60 days after the date of the Secretary’s finding that the exemption should not be permanent.

So, barring legislation, the exemption would seem to be difficult to overturn.

Earthjustice is vowing to “go to court to stop this illegal order.”

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Tyler Priest, the leading historian on US offshore oil and gas operations, has informed me that his much anticipated book, “Offshore Oildom,”is now available for order from LSU Press. Tyler’s book is a fascinating account of the history of the technologically innovative and economically important, yet controversial, OCS Oil and Gas program. See the attached flyer.

Consider this recommendation by Daniel Yergin:

“Tyler Priest, a preeminent historian of energy and the environment, explores how a single well drilled off a pier near Santa Barbara in 1898 gave rise to a major American industry—offshore oil and gas. In spirited prose, Priest demonstrates how this U.S. industry was created not only by innovation, creative engineering, and complex execution; it was also the result of fierce political battles.” ~Daniel Yergin, Pulitzer Prize–winning author of The Prize: The Epic Quest for Oil, Money, and Power and The New Map: Energy, Climate, and the Clash of Nations.

You can order the book from LSU Press.

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Robert August Nelson 47921313

Robert “Bobby” Nelson, a beloved father and husband, and a highly respected engineer, died suddenly last Saturday.

Jason Mathews, a Supervisory Petroleum Engineer with the Bureau of Safety and Environmental Enforcement, had this to say about his admired colleague:

A legacy is not just what you leave for others; it’s the impact of your presence, the influence of your actions, and the memories you create.

Bobby was an exceptional engineer, father, husband and friend who had a lasting impact on many of us. In fact, I would argue Bobby was one of the most impactful engineers in my tenure on developing and transforming younger engineers on how to think critically on complex offshore systems and processes.

Bobby’s legacy in my industry will push on for many years, and we are forever grateful for the time we had with him.”

More from his colleagues:

Bobby dedicated much of his professional life to BSEE, where he served as a Technical Advisor since January 2020, and for the previous seven years as Well Operations Section Chief and Drilling Engineer in the Houma District.

His expertise in well control, drilling engineering, and offshore regulatory compliance was invaluable. He contributed significantly as a subject matter expert and assistant content writer for the BSEE Well Control Rule Revision Team, helping shape post-Deepwater Horizon reforms, and provided technical insights on critical projects ranging from tropical cyclone risk assessments for floating rigs to hydrate pressure coring expeditions and incident investigations.  

Bobby’s commitment to safety and environmental stewardship on the Gulf of America’s Outer Continental Shelf left a lasting impact on his colleagues and the industry.

He is survived by his loving wife, Amber, whom he met at BSEE, and their young daughter. In this time of grief, please keep Bobby’s family in your thoughts and prayers.

Obituary

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