The federal agency that supervises Canadian offshore drilling has rejected charges that Ottawa is poorly prepared to handle an oil blowout in the Beaufort Sea.
The Canadian Oil and Gas Lands Administration (Cogla) was responding to a report by the Environmental Impact Review Board that held hearings on plans by Gulf Canada Resources Ltd. for a Beaufort Sea drilling program (OGJ, June 18, p. 27).
The board said the federal government is ill-prepared to cope with a spill, and cleanup of a major spill "would be subject to the same degree of delay, confusion, and inefficiency that appears to have characterized the Exxon Valdez spill."
The board recommended a ban on Beaufort Sea drilling until Ottawa implements a number of changes. It also said the federal government should reject Gulf's three well, 3 year drilling plan.
Major environment board recommendations called for:
- Surprise oil spill response exercises under realistic conditions.
- The Canadian Coast Guard to be responsible for all spill cleanups.
- Companies to be required to submit spill contingency plans before drilling is approved.
- Guidelines to determine the financial strength of exploration companies.
- Determination of a safe operating season in the Beaufort Sea before further drilling is approved.
Cogla said the environment board failed to understand the agency's role in regulating frontier operations and was misinformed.
Cogla Administrator Maurice Taschereau said he was disturbed by the suggestion that contingency plans are not in place and that federal regulators have capped the liability of explorers for spills at $40 million.
"These things are totally wrong," he said. "There is an oil spill contingency plan in the Beaufort that is second to none in the world.""
Canadian Petroleum Association Pres. Ian Smyth said most of the recommendations made by the environment board are already required of companies before they can operate in the region. He criticized the recommendation for surprise cleanup exercises and said they could be dangerous.
Smyth said the board appeared to have based its recommendations on a worst case spill scenario presented by Gulf-a spill of as much as 40,000 b/d for 66 days.
He said based on world offshore drilling since 1955, the expected frequency of a major blowout in Canadian waters is one every 1,000 years if 10 wells/year are drilled.
The federal government has to make a decision within a month on the environment board's recommendations.
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