Shell says delays in Arctic drilling ‘highly unusual’

Bloomberg via Fuel Fix ^ | June 2, 2011 | Katarzyna Klimasinska

[thackney]

Bloomberg, link only, synopsis below

[thackney]

Shell has been blocked for about 4 years, into a ten year lease. They have been repeated denied their permits.

They are frustrated the government held a lease sale then won't allow the exploration to happen.

In my opinion, the same game is being played in the NPRA. Then Democrats include these acres in their claims about all the leased property that oil companies are not drilling.

[Sea Parrot]

But, but, there are more than a few on here who say it is all Sarah Palin’s ACES taxes that is discouraging drilling in AK.

[thackney]

Both are working against bringing more jobs and domestic oil production into the US.

The Foothills of the Alaskan Brook Range are on State owned land and much of the planned exploration there has been scaled back as well.

[TXnMA]

Those leases only run for ten year? No doubt, they are of the common form, "If you don't drill in ten years, the lease reverts."

This really sounds nasty: take the lease money, bureaucratically delay drilling until it expires -- and get the land back...

What a scam!!

[thackney]

Correct, they have 10 years to find oil.

If a discovery is made within the initial period of the lease, the lease is extended for as long as oil and/or natural gas is produced in paying quantities or approved drilling operations are conducted.

LEASING OIL AND NATURAL GAS RESOURCES
OUTER CONTINENTAL SHELF
http://www.boemre.gov/ld/PDFs/GreenBook-LeasingDocument.pdf

http://www.alaska.boemre.gov/lease/hlease/LeasingTables/detailed_active_leases.pdf

http://www.alaska.boemre.gov/lease/hlease/HLEASE.HTM

Some Gulf of Mexico leases are only 5 years, deep water tend to be 10 year.