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US sues over 'failure of examination harms' caused by delayed offshore oil decommissioning

Posted to Maritime Reporter on July 11, 2024

A group of environmentalists sued the U.S. Government on Thursday over its approach in examining the harm that ageing offshore oil-and-gas infrastructure causes. They cited the risks to the environment and people if decommissioning is delayed.

The Center for Biological Diversity has filed a lawsuit against the U.S. The Center for Biological Diversity filed a lawsuit against the U.S. Interior Department at the federal district court of Washington D.C.

Environmental group claims that the Interior Department did not examine the effects of unplugged platforms and wells on the environment.

According to the Bureau of Ocean Energy Management, when a company signs an initial lease for offshore exploration or production of oil or gas, this agreement includes decommissioning of the well.

According to the U.S. Government Accountability Office, by June 2023 more than 2,700 oil wells and 500 platform were due for decommissioning.

The Department of Interior has declined to comment.

To prevent environmental damage, old oil and gas infrastructure should be removed and disposed by plugging the wells and removing the platforms.

The group argued that the current government approach is in violation of the National Environmental Policy Act, which requires federal agencies assess environmental effects before making decisions. This is because the government did not properly assess the harm caused by delaying decommissioning.

Center for Biological Diversity, in a press release, said that the lawsuit aims to force Interior Department to conduct a fresh analysis to better protect wildlife, people and the Gulf Environment.

Last month, Texas and Louisiana sued the U.S. Government to block the Biden Administration's proposed rule requiring the offshore oil and natural gas industry to provide financial guarantees of nearly $7 billion to cover the costs of deconstructing old infrastructure.

According to government statistics, the U.S. Gulf of Mexico produces 1.8 million barrels of oil per day, or 14% of the total U.S. production.

Tags: North America