Shell oil gets conditional permission to drill in the Beaufort Sea

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http://www.adn.com/money/industries/oil/story/979077.html

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The federal Minerals Management Service said it will allow Shell to drill for oil and gas in the far western area of Camden Bay, west of Kaktovik, if certain conditions are met. For the project to go forward, it must comply with state and federal environmental requirements and Shell needs to obtain a drill permit from MMS, the service announced Monday.

Shell is also seeking permission to drill one or two wells on its leases in the Chukchi Sea next year. Alaska Native organizations and environmentalists have sued to block the drilling, and under court order, the MMS is revising its analysis of the company's plans for its Chukchi leases.

National environmental groups said the latest decision ignores threats to the Arctic environment and its wildlife, and at least one of them said a lawsuit challenging it was likely.

MMS officials said Monday they are committed to responsible development.

"Now that we have approved Shell's plan and reached this important milestone we will continue to work with Shell to ensure that all activities are conducted in a safe and environmentally responsible manner," said MMS Director Liz Birnbaum.
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Shell said it plans to drill two wells between July and October on its Camden Bay leases, and hasn't decided yet whether to pursue additional drilling in the Beaufort in future years. The company agreed to suspend drilling and take its vessels out of the area in August during the fall subsistence bowhead whale hunts by two villages, Kaktovik and Nuiqsut.