Since Spill, Feds Have Given 27 Waivers to Oil Companies in Gulf

by: Marisa Taylor   |  McClatchy Newspapers

Since Spill, Feds Have Given 27 Waivers to Oil Companies in Gulf
(Image: Jared Rodriguez / t r u t h o u t; Adapted: tsuda, designshard)

Washington - Since the Deepwater Horizon oil drilling rig exploded on April 20, the Obama administration has granted oil and gas companies at least 27 exemptions from doing in-depth environmental studies of oil exploration and production in the Gulf of Mexico.

The waivers were granted despite President Barack Obama’s vow that his administration would launch a “relentless response effort” to stop the leak and prevent more damage to the gulf. One of them was dated Friday — the day after Interior Secretary Ken Salazar said he was temporarily halting offshore drilling.

The exemptions, known as “categorical exclusions,” were granted by the Interior Department’s Minerals Management Service (MMS) and included waiving detailed environmental studies for a BP exploration plan to be conducted at a depth of more than 4,000 feet and an Anadarko Petroleum Corp. exploration plan at more 9,000 feet.

“Is there a moratorium on off shore drilling or not?” asked Peter Galvin, conservation director with the Center for Biological Diversity, the environmental group that discovered the administration’s continued approval of the exemptions. “Possibly the worst environmental disaster in U.S. history has occurred and nothing appears to have changed.”

MMS officials said the exemptions are continuing to be issued because they do not represent final drilling approval.

To drill, a company has to file a separate application under a process that is now suspended because of Salazar’s order Thursday.

However, officials could not say whether the exemptions would stand once the moratorium is lifted.

MMS’ approvals are expected to spark new criticism of the troubled agency and the administration’s response to the spill.

Salazar announced Thursday that there’d be no new offshore drilling until the Interior Department completes the safety review process requested by Obama. The department is required to deliver the report to the president by May 28.

Given the MMS approvals, however, Galvin said the administration’s pledge appears disingenuous.

“It looks to me like they’re misleading the public,” he said.

MMS spokesman David Smith said his agency conducts a thorough review before it determines whether to grant such exemptions.

“It’s not a rubber stamp,” he said.

BP did not return calls for comment.

MMS set out rules that allow for the exemptions from some environmental requirements under the National Environmental Policy Act (NEPA) as long as the sites in question are not relying on new or unusual technology, or within high seismic risk areas, or within the boundaries of marine sanctuaries or in regions with hazardous bottom conditions. MMS also assesses the impact on biological and archeological resources.

In the gulf, Smith said, MMS has a “wealth of environmental data” from studies of the region that it can rely on when reviewing the requests from the energy firms.

That’s why oil and gas companies that were given the exemptions said the approvals were routine and shouldn’t have raised any environmental concerns.

Apache Corp. said it was granted four exemptions for updating production equipment and drilling wells on existing sites and for drilling in the vicinity of an existing site. Appropriate environmental studies were conducted before the purchase of the leases for those sites, said Bill Mintz, a spokesman with Apache.

“We followed the procedures and the government didn’t change the procedures,” said Mintz. “The decisions are made according to rules in a framework that has been established.”

Anadarko also cited a previous environmental assessment of a site where it applied for a waiver.

“Protecting the environment and the safety of our personnel are our highest priorities,” said John Christiansen, a Anadarko spokesman, Walter Oil & Gas also received one for a survey of an existing site off the coast of Louisiana.

Environmentalists, however, say that MMS’ checklist for determining whether to grant such exemptions are far too broad and relies on sweeping environmental impact studies that are undertaken before the purchase of leases.

Holly Doremus, a professor of law at Boalt Hall, University of California at Berkeley, said MMS has had a culture of minimizing environmental reviews of oil and gas development dating back to its inception in 1982.

“That’s related to the fact that oil companies have a great deal of power over MMS and there hasn’t been much oversight,” she said. “My guess is that these things are routinely being signed off on as categorical exclusions even though they deserve a closer look.”

Other companies that received the waivers include: Shell, Kerr-McGee Oil & Gas Corporation, Royal Exploration Company, Inc., MCX Gulf of Mexico, Tana Exploration Company, Tarpon Operating & Development, Rooster Petroleum, Phoenix Exploration Company, and Hall-Houston Exploration III.

Tracy L. Austin, spokeswoman for Mitsubishi International Corporation, which owns MCX Gulf of Mexico, said she could not comment on MMS’ handling of the exemptions overall.

“While we understand that the MMS has come under criticism for failing to adequately regulate the industry, with respect to our operations, we believe the MMS has acted responsibly,” she said.

Lawmakers from both sides of the aisle have already called for reform of MMS after news that BP was granted on exemption for the Deepwater Horizon site. That waiver was first reported by the Washington Post.

“If the conclusion is we need new regulation to prevent something like this from happening again, we’d welcome that because we believe we operate in a safe and environmentally responsible manner,” said Mintz with Apache. “But right now, the current rules say certain activities can proceed based on the studies that have been done.”

In 2008, a series of government watchdog reports implicated a dozen current and former employees of the MMS in inappropriate or unethical relationships with industry officials.

The reports described "a culture of substance abuse and promiscuity'' in the Royalty in Kind program, in which the government forgoes royalties and takes a share of the oil and gas for resale instead. From 2002 to 2006, nearly a third of the RIK staff socialized with and received gifts and gratuities from oil and gas companies. 

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WTF!?! The decline in this

WTF!?! The decline in this country is accelerating! Off shore drilling assisted, big banks sucking us dry, Federalist member Supreme Court nominees, expansion of war...

Shouldn't be long now folks, there will be troops in the streets before you know it, 'cause people can't take much more of this.



Did you just read the title,

Did you just read the title, or the entire article?

"MMS officials said the exemptions are continuing to be issued because they do not represent final drilling approval.

To drill, a company has to file a separate application under a process that is now suspended because of Salazar’s order Thursday.

However, officials could not say whether the exemptions would stand once the moratorium is lifted.



The Explosion On That

The Explosion On That Drilling Rig sure looks suspicious to me. We should be looking at who are BP's enemies - BP will be paying very big bucks for all the environmental damage and economic losses - this makes Exxon's Alaska spill look like an inkspot. If the Goldman Sachs leaked letter about the put options placed the day before the attack doesn't wake up the masses, we are in really sorry shape.



I'm totally with the first

I'm totally with the first commenter! He/She is right on the money! We are moving toward a fascist state at a rapid rate people!



I am a strong advocate of

I am a strong advocate of better oversight for energy extraction processes including oil, natural gas, coal and radioactive materials for nuclear plants. I am also of the belief that MMS needs oversight itself after becoming "strange bedfellows" with the very industries it is supposed to regulate (shame on those who participated).

However, this report does not raise my hackles significantly. If these are categorical exemptions that do not in and of themselves result in the approval to drill, then the moratorium put in place currently holds. The government and industry are going through the steps to ensure the approval process can be implemented swiftly once the moratorium is lifted.

Most of us depend on petrochemicals, some to a larger extent than others. I own two gas powered cars (38 and 70 mpg respectively). Fortunately I use less than 100 gallons per year since I mostly walk.

Until WE the consumers demand of our government that they mandate ways to accelerate the implementation of alternate energy sources, we are also to blame for these messes.



Keep in mind this is STILL

Keep in mind this is STILL MMS SOP from BUSH!!

Agencies haven't re-written many regulation changes made during that eight year period that handed our natural resources over to those "poor picked on corporations" that don't happen to be paying the taxpayers for the oil they're getting from the Gulf. Please thank Reagan/Bush appointees who scammed the system and "lost" a suit they intended to lose, in the companies favor.



Gotta love

Gotta love democracy!
@readerie ... sure I read. And it stinks EVEN MORE! Or I should say - it's completely insane!
You have yourself one of the worse man made catastrophies and what do these bozos do? Pretend like noting's changed and ask for exemptions when an exemption is the reason for this unspeakable crime! Geez.

The weirder part of all of this is those out there who still trust BP, still saying "awwww give these corporate pigs a chance ...".

The problem is we've been giving BP and others so many chances... and the more we do, the less they respect us. If there was an ounce of justice, BP's top brass would be picking up the sludge they've spilled with teaspoons RIGHT NOW. And for a long, long time. So might as well stick all those soiled waivers up their wazoo, too.



When oil GREASES the

When oil GREASES the political machine, everything is possible, including turning oceans to swamps. What a tragedy for humanity and especially for the average people in the most technologically advanced nation on the planet. Don't you miss being a savage instead of being in an artificial zoo where baboons are ruling lions, tigers and thinking humans?



Don't you miss being a

Don't you miss being a savage instead of being in an artificial zoo where baboons are ruling lions, tigers and thinking humans?

You are the man... what a truism! 05/10/2010-23:14 And military guerilla apes are ruling the humans too.

The cameras eyes on choice disguised
Was it cast for the mass who burn and toil?
Or for the vultures who thirst for blood and oil?
Yes a spectacle monopolized
They hold the reins, stole your eyes
All the fistagons the bullets and bombs
Who stuff the banks
Who staff the party ranks

from Guerilla Radio by Rage Against The Machine



Re: .."in-depth

Re: .."in-depth environmental studies of oil exploration and production in the Gulf of Mexico.."

Puts a new light on "in-depth"...

This country is WAY In over our collective heads...
^..^



As JFK so aptly put it, "If

As JFK so aptly put it, "If you make Peaceful Revolution Impossible - You make Violent Revolution Inevitable." The Powers That Be (PTB) indeed seem HellBent on making Violent Revolution Inevitable. Is there ANY thinking person out there that does NOT see that we are being taken to Hell by a CRIMINAL ELITE? Is there? Population---- Get UP off your knees!!! It is time to RESIST the Descent into Hell - and Hell it will be!!! Make no mistake about that. It's time to grow an ample supply of AWARENESS AND GUTS! Don't fall for the Phony Dem Repub Scam. Any candidate that is NOT for the dismantling of the FED must be voted against. And do everything else you can to bring the system to a Standstill. It is a monster run amuk. Realize it for what it is.



I am hoping Obama will

I am hoping Obama will impose a 10 billion dollar clean up fund per year on all involved. This will stimulate the economy and simply pass the cost on to the oil/gas consuming customer.

We all support oil!! Unless you are Omish.

After the oil goes up the East coast then the govt. will realize just how bad this spill is.

Hurricane season will begin soon!!!



We need to nationalize the

We need to nationalize the oil industry and put the money now being made in profits into funding public mass transit, other social services — and of course trying to mitigate the permanent damage of this spill as much as possible.
No more offshore drilling -- but until oil is nationalized we will continue to see Big Oil companies buying off politicians with campaign contributions, so that those same politicians give them wide open loopholes to continue to plunder the planet and its resources. Oh, and if Corporations can have personhood, perhaps it is time that Haliburton get put in jail permanently.
Mourn for the Gulf, Fight like hell for the planet.



Has there been ONE Promise

Has there been ONE Promise Obama kept? ...Oh, Yes, he got his little girls their dog.
His greed to rip off the people of this nation is right up there with Bush and Cheney.

How dare him continue to keep this farce going with under the table drilling permits and letting Halliburton enjoy the ride again while being protected by their Saudi location. In the end no one but the taxpayers and the poor of the regions will end up paying for this. EXXON Valdeze took over 20 years of court battles and the the Supreme Court, oh, yes, that group again, gave them a cheaters pass , cut the payments to anyone still living and call it justice. Obama with the help of Corporate American and the Republicans will turn our country into a South Africa township. Just remember Obama is the Head of State, making all the decisions. Be sure to thank him for all the wonderful "CHANGES" he has made for us.