Offshore drilling ban could be lifted Tuesday

Offshore drilling ban could be lifted Tuesday
Associated Press
News
Tuesday, October 12, 2010 - 11:32am

WASHINGTON – The Obama administration is lifting a moratorium on deepwater oil drilling in the Gulf of Mexico, officials said Tuesday.

The Interior Department scheduled a 1 p.m. news conference in which Interior Secretary Ken Salazar is to "discuss the current suspensions on deepwater drilling," the Interior Department said.

Congressional officials told The Associated Press that Salazar planned to lift the moratorium, on the condition that companies would first have to meet a a host of new safety regulations. They spoke on condition of anonymity because they were not authorized to speak ahead of the official announcement.

White House spokesman Robert Gibbs said earlier Tuesday that the government is close to having the plans in place to lift the ban that was imposed after the massive Gulf oil spill.

When asked if he was saying the ban will be lifted this week, Gibbs said: "I do."

He emphasized that the move would include new requirements for those seeking to drill exploratory wells. Those entities and the companies they represent will have to prove they have the appropriate steps in place to contain a worst-case scenario.

The administration has already imposed new rules to make offshore drilling safer. The moratorium is set to expire Nov. 30.

Todd Hornbeck, CEO of Covington, La.-based Hornbeck Offshore Services, said lifting the moratorium would leave the industry in a "de facto moratorium stage" until the government fully explains how new drilling permits will be issued.

"We're still in the dark," said Hornbeck, who heads up one of the companies that sued to block Interior's initial moratorium. His company provides vessels and other services for the offshore industry.

"The devil is in the details, as they say, and the industry hasn't seen the final requirements for what we would have to do to be able to actually get a permit issued," he added. "Until that is done, lifting the moratorium may be just a moot or perfunctory act. ... Right now, I'm skeptical that it will be anytime soon that permits will be issued even if the moratorium is lifted."
 

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