http://www.commondreams.org/newswire/2011/12/14-2
December 14, 2011
Center for Biological Diversity
Deepwater Horizon Report Highlights Unaddressed Risks of Offshore Drilling

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http://www.commondreams.org/headline/2011/12/14-10

Published on Wednesday, December 14, 2011 by National Journal

BP Awarded $27 Million in Leases for Gulf Oil, Gas Exploration

by Olga Belogolova

BP is officially getting back into deep water exploration in the Gulf 
of Mexico, the Interior Department announced on Wednesday.

The British energy giant, responsible for the biggest offshore oil 
spill in U.S. history last year in the Gulf, won $27 million worth of 
leases to conduct new oil-and-gas exploration in the Gulf. The awards 
from the Interior Department came in the first Gulf lease sale since 
the BP spill last year, with all winning bids bringing $337.6 million 
into government coffers.

The lease sale, which involved oil and gas rights for tracts in the 
western Gulf, attracted 241 bids from 20 companies totaling $712 
million, Interior Secretary Ken Salazar said.

BP bid a total of $109.9 million on 15 leases and won 11 for $27.4 
million, Interior's Bureau of Ocean Energy Management reported in a 
list of sales posted on its website.

The lease sale, which involved oil and gas rights for tracts in the 
western Gulf, attracted 241 bids from 20 companies totaling $712 
million, Interior Secretary Ken Salazar said from the site of the 
sale in New Orleans.

ConocoPhillips made the highest total bids in the lease sale, 
offering $173.2 million for 97 leases; the company received 75 leases 
for $157.8 million, according to a list released by Interior on 
Wednesday afternoon.

BP bid a total of $109.9 million on 15 leases and won 11 for $27.4 
million, Interior's Bureau of Ocean Energy Management reported.

"This marks a milestone with respect to the greatest overhaul in the 
America's history," Salazar said of the offshore-drilling safety 
reforms and changes implemented by Interior since the April 2010 
explosion of a BP well in the Gulf led to the worst offshore oil 
spill in U.S. history. "We believe we can move forward with oil and 
gas development."

Salazar's initial announcement did not include any mention of whether 
BP was awarded any leases, but the British oil giant had made clear 
for months that it intended to get back into deepwater exploration in 
the Gulf as quickly as possible. BP was not excluded from bidding on 
any leases, much to the chagrin of environmentalists who say the 
company should be banned from further drilling until last year's 
spill has been fully cleaned up. 

Former Bureau of Safety and Environmental Enforcement Director 
Michael Bromwich in October defended the Interior's decision to 
include BP in the lease sale.

"They don't have a deeply flawed record offshore," he said of BP. 
"We've done analyses over time on the relative safety records of 
offshore operators and they were in close to the top crew."

"The question is, do you administer the administrative death penalty 
based on one incident?," Bromwich told reporters. "And we've 
concluded, I've concluded, that's not appropriate in these 
circumstances."

© 2011 National Journal

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