2. OFFSHORE DRILLING:

Swell of new deepwater well permits, exploration plans continues

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The Interior Department today approved its eighth deepwater drilling permit and, since yesterday, has initiated environmental reviews of three new exploration plans that could clear the way for 12 additional deepwater wells.

The new well and exploration proposals suggest Interior is continuing to build on recent permitting momentum in the Gulf of Mexico nearly a year after the BP PLC oil spill. The department has averaged roughly two deepwater wells per week over the past month.

The three exploration plans -- a prerequisite before companies can apply to drill individual wells -- will include 10 days of public comment and, by statute, must be reviewed within a month.

The plans include BHP Billiton Petroleum Americas Inc.'s proposal to drill one exploratory well at a depth of nearly 4,500 feet about 124 miles offshore from Louisiana; Shell Offshore Inc.'s supplemental plan to drill five exploratory wells in roughly 7,200 feet of water and three additional previously approved wells about 72 miles offshore from Louisiana; and Statoil Inc.'s proposal to drill two exploratory wells in up to 7,600 feet of water with an additional approved well more than 132 miles offshore from Texas.

Each of the plans describe the timing of drilling activities, information on drilling vessels, the location of wells and other relevant information, including worst-case discharge estimates. Detailed plans can be found on the Bureau of Ocean Energy Management, Regulation and Enforcement's public comment website.

The agency also issued the eighth deepwater drilling permit in the past month for activities banned under the post-spill moratorium for ENI US Operating Co. Inc.'s well about 57 miles off the coast of Louisiana after the company demonstrated the ability to contain oil from a runaway well.

ENI has contracted to use the Helix Well Containment Group capping stack to stop the flow of oil in case there is a blowout.

"This is the eighth deepwater well permitted to drill since February 17, when industry demonstrated that it had the capacity to handle subsea blowouts and spills," said BOEMRE Director Michael Bromwich in a statement. "The progress in permitting deepwater drilling is directly related to industry's ability to meet and satisfy the enhanced safety requirements associated with deepwater drilling, including the capability to contain a deepwater loss of well control and blowout."

Bromwich this week warned that while BOEMRE was able to meet the 30-day deadline for approving the first post-spill deepwater exploration plan for Shell, he continues to support legislation to at least double that timeline.

"Without an infusion in resources we are not going to be able to review completely and provide site-specific [environmental assessments] on all deepwater plans," he told reporters following a budget hearing before a House committee. "Our people aren't interested in delay, but we think it's much more realistic to have 60 days."