Environmental Group Sues U.S. Government Over Delayed Decommissioning Of Offshore Oil Infrastructure

On July 11, 2024, an environmental group sued the United States government, claiming it failed to thoroughly investigate the environmental damage caused by ageing offshore oil and gas infrastructure.

The Center for Biological Diversity is suing the US Interior Department in federal district court, alleging that the government’s approach violates the National Environmental Policy Act (NEPA).

The lawsuit alleges that the Interior Department failed to adequately examine the risks posed by the delayed decommissioning of unplugged wells and idle platforms, which risks both people and the environment.

According to the Bureau of Ocean Energy Management, when a business contracts a lease for offshore oil or gas exploration or production, the agreement includes a method for decommissioning the well.

According to the U.S. Government Accountability Office (GAO), more than 2,700 wells and 500 platforms in the Gulf of Mexico were overdue for decommissioning by June 2023.

The oceans legal director at the Center for Biological Diversity, Kristen Monsell, stated that cleaning up after yourself isn’t just a kindergarten skill; it’s the law, and that they know the oil industry isn’t properly dealing with its mess, and federal agencies have ignored these risks for years.

The environmental group claims that the government has not undertaken a new analysis to reflect the latest information and changing circumstances, which suggests that delayed decommissioning endangers the Gulf environment, individuals, and wildlife.

They insist that the Interior Department conduct a new, thorough investigation to safeguard their interests adequately.

The Center for Biological Diversity stated that over 600 idle wells in the Gulf had not been temporarily capped to avoid leaks before decommissioning, and over 800 idle wells have been inactive for over a decade.

The law requires offshore oil and gas operators to permanently plug wells, remove platforms, and restore the seafloor ecosystem after leases expire or infrastructure is inactive for a certain period.

Recent GAO findings revealed that oil companies often miss decommissioning deadlines and that the Interior Department has allowed decommissioning-in-place without adequately evaluating or mitigating the hazards.

The Center stated that the last environmental assessment of Gulf oil and gas decommissioning was done in 2005, and it expected that infrastructure would be decommissioned within authorized timeframes.

This out-of-date analysis failed to account for the current harms caused by the delayed decommissioning of critically endangered species such as Rice whales, sea turtles, and eastern black rails.

Monsell added that the Interior Department needs to examine closely how old leaky wells, rusty platforms, and corroding pipelines expose the ocean ecosystem to the constant risk of spills and other harms.

Monsell stated that private companies shouldn’t be allowed to gain vast amounts of money drilling in public waters and then leave a wasteland for taxpayers.

The Department of the Interior refused to speak on the matter.

This legal action follows a lawsuit filed last month by Texas, Louisiana, and Mississippi to stop the Biden administration’s proposed rule mandating the offshore oil and gas industry to contribute roughly $7 billion in financial assurances for destroying ageing infrastructure.

The Gulf of Mexico produces around 1.8 million barrels of oil daily, accounting for most US offshore oil production and roughly 14% of overall US output.

Reference: Reuters

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