Expedited oil-spill royalties requested

By Kelli M. Dugan, Staff Writer
Spanish Fort Sun
Posted 8/3/10

DAPHNE, Ala. — As coastal residents await word on BP PLC’s ability to move forward with plans for its “static” kill designed to plug the oil well leaking in the Gulf of Mexico since the Deepwater Horizon rig exploded April 20, political …

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Expedited oil-spill royalties requested

Posted

DAPHNE, Ala. — As coastal residents await word on BP PLC’s ability to move forward with plans for its “static” kill designed to plug the oil well leaking in the Gulf of Mexico since the Deepwater Horizon rig exploded April 20, political pressure to expedite the collection of federal oil and gas-lease revenues has gained traction in Alabama.

Rep. Jo Bonner, R-Ala., introduced the “Strengthening Our Share Act” Friday, designed to ensure Gulf states begin receiving their share of revenues ahead of the 2017 target date set by the 2006 Gulf of Mexico Energy Security Act.

“Alabama and other Gulf oil drilling states need this money now to help offset the negative impact of the spill as well as to pay for response efforts and to limit potential damage from future oil spills,” Bonner said in a written statement.

In 2006, Congress passed the Gulf of Mexico Energy Security Act, setting aside 37.5 percent of royalties from new Gulf oil and natural gas drilling leases for Gulf oil producing states: Alabama, Mississippi, Louisiana and Texas. The law allows, however, for disbursement of the bulk of the royalty payments not to begin until 2017, and only includes leases entered into after 2006.

“The oil spill dramatically demonstrated how oil-producing Gulf states, like Alabama, can be directly affected by a rupture at any of the thousands of offshore wells. Even as the Gulf of Mexico accounts for nearly one-quarter of the nation’s total oil production, Gulf states, which are home to such oil production, are forced to shoulder significant risk without adequate resources,” Bonner said.

As long as the state sits “on the front lines of America’s vital energy production,” Alabama and its counterparts deserve to be “appropriately compensated,” Bonner said.

The sentiment was echoed by Gov. Bob Riley who said, “All states benefit from the oil and gas drilling that takes place off our coasts, but our states are the ones that absorb 100 percent of the risk. The risks and rewards of offshore energy production need to be more evenly balanced.”

Riley said Bonner’s proposal provides a path to “achieve that balance, help our states recover from the BP disaster and give us the resources to prepare for any future oil disaster,” Riley said, encouraging all Gulf state governors to support the proposal.

BP commitment affirmed, clarified

With the recent announcement by incoming BP Chief Executive Bob Dudley that response and recovery efforts within the Gulf states will be scaled back as containment efforts progress, local sources close to the operation maintain the steps are in no way an abandonment of Baldwin and Mobile County interests.

“BP isn’t going anywhere. We will continue to be diligent about the response and committed to clean-up and restoration of the Gulf. Our response is not about cutting costs, but reducing waste,” said BP spokesman Ray Melick.

The shift in focus does, however, mean a “more targeted approach” than the full-scale response delivered since the Deepwater Horizon oil rig exploded and sank off the coast of Louisiana April 20.

“Because reconnaissance shows little-to-no oil in the Gulf, our strategy moving forward will be on the more efficient use of our resources. That means right-sizing the work force as we go forward. That has already taken place with the flexible work schedules for qualified community responders and Vessels of Opportunity. We are not ‘laying people off,’ but because there isn’t as much work to do we’re using fewer people per rotation,” Melick said.

In addition, he said the plan is to designate to primary clean-up contractors per affected state, andin Alabama those companies will be P2S and Crowder Gulf.

“There are other contractors that will continue to provide resources as well, but the point is that BP doesn’t feel we need a huge presence on the shoreline anymore mixing with tourists as they — hopefully — return to the beaches, Melick said.

And while residents will most likely witness the removal of boom in sensitive areas as the region’s hurricane season accelerates, Melick said it is a safety precaution only.

“We will retain skimmer capability in all those areas where boom is being removed, and again, we have the ability to get boom back in place quickly as needed,” he said.

Seafood Safety

A statement released Monday by the Mobile Bay Convention and Visitors Bureau reminded both local residents and visitors that despite rampant concerns, the seafood being served in and from the area is safe to enjoy.

“We want to get the word out that seafood is safe to eat and that this perpetuated misconception is hurting neighbors and regular folks that are Alabama’s seafood industry,” said Bob Omainsky, president of the Mobile chapter of the Alabama Restaurant Association.

“We are more closely monitored and inspected than we ever have been in the past, and are fully confident that our product is safe — not to mention delicious. When I hear folks say that Gulf seafood isn’t safe to eat, it just tears my heart out. I don’t know where everyone’s getting this incorrect information,” he said.

Citing both the Alabama Department of Public Health and the U.S. Food and Drug Administration, the bureau’s release states “contaminated fish and seafood will not be allowed on the market by regulatory agencies.”

George Crozier, executive director of the Dauphin Island Sea Lab, said the steps taken to date have been cautionary in measure with no evidence of contamination.

“Bioaccumulation takes months and years to reach unhealthy levels, so Gulf Seafood is quite safe to eat for some time. The public can be assured that there is extensive testing to ensure seafood safety and there will be an abundance of caution,” Crozier said.

Eastern Shore update

Local residents concerned about whether it would be safe to go back in the water before the end of summer received their answer when the Alabama Department of Public Health lifted swimming advisories Monday for Dauphin Island, Fort Morgan, Gulf Shores and Orange Beach beaches.

Ken Eslava, Fairhope’s assistant public works director and the city’s oil spill recovery project manager, said flags have switched from swimming-ban red to cautionary yellow, meaning swimmers are advised not to handle tar balls.

Eslava said a “catch-and-release” fishing advisory also remains in effect for the mouth of Mobile Bay and the Mississippi Sound west of the Dauphin Island bridge. Tests are being conducted to determine if the advisory can be lifted, but as of press time results were not available.

Eslava said no “significant change” in operations has been experienced beyond the downsizing of operations in proportion to the threat, and he expects a full report to be available Wednesday detailing environmental information on air, water and sediment testing performed in late July.

As of 10 a.m. Tuesday, officials with neither Spanish Fort nor Daphne reported any changes or updates to oil spill response plans.