Gulf Oil Spill: Markey, Waxman and Stupak Draft and Submit High Risk Oil Well Regulations

Congressmen Makey, Waxman and Stupak introduced in Congress a comprehensive bill aimed at high-risk offshore oil rigs, with specific language that addresses the BP cost-cutting and negligence that lead to the gulf oil spill.

"High-risk wells" are defined as offshore oil and gas wells and the subset of onshore wells that, under criteria established by the appropriate federal official, could lead to substantial harm to public health and safety and the environment in the event of a blowout.

The Blowout Preventer Act of 2010, if passed, will require independent third-party certification of blowout preventers, creates regulations around pressure testing and cement use, and provides regulations on spark, ignition and explosion prevention devices and measure.

Of particular interest is Section 2 of the bill, shown below:

Section 2 - No Drilling Without Demonstrated Ability to Prevent and Contain Leaks

A federal permit to drill a high-risk well shall not be issued unless the applicant demonstrates, the CEO of applicant attests, and the appropriate federal official (the Secretary of Interior, Secretary of Energy, or Administrator of the Environmental Protection Agency, as determined by the President) determines that:

(1) the blowout preventer and other well control equipment will prevent a blowout from occurring;

(2) the applicant has an oil spill response plan that ensures the applicant has the capacity to promptly stop a blowout if the blowout preventer fails; and

(3) the applicant has the capacity to begin drilling a relief well within 15 days of a blowout and complete drilling a relief well within 90 days of a blowout. t.

Subsection (b) requires an operator to meet the same requirements in order to obtain federal approval to drill a high-risk well that does not currently require a federal permit. This approval function can be delegated to states.