Wirelines

Industry groups appeal ruling on Biological Opinion

The American Petroleum Institute (API), EnerGeo Alliance, the National Ocean Industries Association (NOIA) and Chevron filed an appeal to the US District Court for the District of Maryland’s decision to vacate the National Marine Fisheries Services’ (NMFS) Biological Opinion in the Gulf of Mexico (GOM). 

The United States District Court for the District of Maryland threw out key Endangered Species Act (ESA) analyses of oil and gas operations in the Gulf of Mexico.

If upheld, the decision could have major ramifications in the GOM. Without the 2020 Biological Opinion or any alternative, agency approval of oil and gas activity in the GOM could be deemed invalid in future lawsuit. This would mean a potential halt to new and existing oil and natural gas operations.

The original ruling would have vacated the 2020 Biological Opinion effective 20 December. However, on 21 October, the court granted the NMFS until 21 May 2025 to complete a new Biological Opinion. 

In a statement following the filing of its appeal, the API, EnerGeo Alliance, NOIA and Chevron said, “If this ruling is left uncontested, a critical source of current and future US energy supply could be in jeopardy at a time of persistent inflation and geopolitical instability. We intend to pursue all legal means to prevent the far-reaching consequences of this ruling for Gulf Coast economies.”

IADC President Jason McFarland issued the following statement: “The decision to vacate the 2020 Biological Opinion fails to consider the far-reaching consequences that will extend well beyond the Gulf of Mexico. We urge decision-makers to recognize the complexity of this issue and its potential effect not just to our industry, but to the American people and the broader global energy landscape.”

Click here to read the US District Court’s for the District of Maryland’s decision.

BSEE finalizes new safety rules for novel technologies

The US Bureau of Safety and Environmental Enforcement (BSEE) is publishing regulations that provide clarity regarding its review of projects proposing to use novel technology, including equipment used in high-pressure, high-temperature environments. 

This final rule will specifically: 

Require submission of information in an order that provides both operators and BSEE the ability to evaluate whether a novel technology project is economically and operationally feasible;

Add specific equipment requirements, particularly for barriers, including through incorporation of updated industry standards; and

Require independent third-party review of operator submissions in certain cases.

Click here to read the finalized BSEE rules on novel technology projects.