Shell backs House GOP plan to speed up offshore air permits

He notes that Shell has spent billions of dollars but has been unable to develop its Arctic leases and that the inability to obtain EPA permits it began seeking five years ago is a part of the reason.

Shell also has yet to obtain approval from the Interior Department to begin exploratory drilling.

Lawrence writes:

“Shell is in a ‘catch-22.’ We have invested more than $3.5 billion in leases and in supporting infrastructure – equipment, support vessels, baseline studies, and workforce training in order to take the first step to explore for oil and natural gas. We have assembled what is arguably the most environmentally sensitive and thoroughly responsible exploration plan in history. Yet, for reasons largely beyond our control, permits have not been issued. Since our leases are only valid for a limited time, we are keen to move forward.”

Energy and Commerce Committee Chairman Fred Upton (R-Mich.) has repeatedly said speeding up permitting for various sorts of energy projects is a major goal.

“Based on what we learn from today’s hearing, as well as constructive comments from others, we hope to refine the Jobs and Energy Permitting Act into a bill that will finally tear down some of the bureaucratic barriers to American energy development and help turn the tide on rising energy costs,” Upton said in a statement.

But Erik Grafe, an attorney for the environmental group Earthjustice, said in testimony that the bill is a “transparent give-away” to the oil industry.

“We should not allow an end run around the important protections of the Clean Air Act. Rather than creating loopholes for oil companies—the same sort of loopholes that led to the Deepwater Horizon oil spill—Congress should allow the Environmental Protection Agency to do its job under the Clean Air Act and protect the health of the Arctic Ocean and its people,” he said in his statement.