Begich Applauds News that Shell Can Resume Arctic Exploration

Press Release

U.S. Senator Mark Begich welcomed today's order by a federal judge in the latest lawsuit over Shell Oil Company's plans to develop oil and gas in Alaska's Arctic waters which sets in place a process for resumption of that development.

U.S. Federal District Court Judge Ralph Beistline today entered his order on the Lease Sale 193 case, agreeing with the federal government and Shell that the Department of Interior can proceed to review and process Exploration Plans. The order clears the way for next summer's development of an estimated 15 billion barrels of oil and 77 trillion cubic feet of natural gas projected to lie beneath Alaska's shallow Arctic waters.

"This is good news for Alaskans and for our state's economy because it ends the temporary shutdown of Shell's development plans and should lead to resumption of oil and gas development in our state's promising offshore," Begich said. "This lawsuit was just another delaying tactic by those who oppose responsible development in Alaska, so Alaskans should be relieved that we're now getting on with the business we know how to do so well."

At issue is the proposal by Shell Offshore Inc. to explore for oil and gas in Lease Sale 193 in the Chukchi Sea. Held in February 2008, Lease Sale 193 attracted more than $2.6 billion in bids and was the first such sale in the Chukchi in 15 years.

Begich has been pushing the Obama administration to proceed with Alaska oil and gas development in the Arctic, talking recently with Interior Secretary Sally Jewell to urge progress. Begich has introduced legislation to ensure a judicial endgame for Arctic developers which have invested billions of dollars for oil and gas development. The senator also is urging Interior to extend oil company leases because of unexpected delays cause in part by environmental lawsuits.

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