New Blowout Prevention Requirements

Press Release

Date: June 18, 2010
Issues: Oil and Gas Legal

The day after Senator Grassley released a letter he received from BP and his own response, which highlighted a practice by the Minerals Management Service that appeared to fall short of legal requirements, the Interior Department announced a directive to strengthen blowout prevention requirements.

In a June 16 follow up inquiry to BP, Grassley delineated his concerns, as follows:

"Specifically, I requested that BP "provide documentation that BP is in compliance
with MMS regulation 250.416 (e) for all oil rigs owned/leased/operated by BP in the Gulf of Mexico." I received the following response:

"BP has submitted applications for permits to drill in accordance with the process prescribed by MMS officials, including submission of all applications, forms, and pertinent documentation required and/or requested by such officials. All applications submitted by BP in accordance with MMS regulations contained at 30 C.F.R. § 250 are reviewed and approved by MMS officials prior to the operation of all rigs leased and/or operated by BP in the Gulf of Mexico. Indeed, as required by MMS regulations (21 C.F.R. § 250.410), BP obtains written approval from the MMS District Manager before it begins drilling any well or performing similar operations as provided for in the regulations. BP is not aware of any MMS practice requiring an applicant to attach to its initial application proof of the strength of the blind shear rams on the blowout preventer (which is the subject of 30 C.F.R. § 250.416 (e)). In past cases when MMS officials have raised any questions or additional requests relating to shear ram strength during the application review and approval process, BP has provided the additional information.'"

Grassley's June 16 letter continued:

"I find it very disturbing that BP asserts that the "practice" in oil drilling is to avoid current laws designed to keep our beaches safe. And I am outraged that MMS is looking the other way. At this time, I ask again that you provide documentation that BP is in compliance with MMS regulation 250.416 (e) for all oil rigs owned/leased/operated by BP in the Gulf of Mexico. Furthermore, I demand any communications between BP and any employees at MMS that may confirm that MMS allowed BP to violate the law, receive a waiver from applicable law and/or not comply with MMS regulation 250.416(e)."

The second issue that Grassley raised this week about BP's response to him was that BP estimated the Gulf oil spill was leaking at a greater rate than the oil company had previously stated.

Grassley obtained the information from BP in response to a request he made in May.


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