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Greens urge U.S. to refuse Shell's final Arctic drilling permits

Tue, 14th Jul 2015 22:41

By Timothy Gardner

WASHINGTON, July 14 (Reuters) - Environmental groups onTuesday urged the U.S. government not to grant Royal Dutch Shell final permits for Arctic oil exploration after anicebreaker with safety equipment to cap wells was put out ofaction.

Ten groups, including Oceana, Greenpeace, and the SierraClub, said in a letter that under Shell's exploration plans, theU.S. Interior Department cannot allow it to begin exploring foroil in the Chukchi Sea off northern Alaska while the icebreaker,the Fennica, is unavailable.

Shell is sending the Fennica to Portland, Oregon for repairsafter crew discovered a 39 inch (1 meter) gash on the ship'shull last week. It is believed that a shoalcaused the rip, even though the Fennica was in charted waters.

The company is hoping to return to Arctic drilling laterthis month for the first time since 2012, when it lost controlof an oil rig forcing an evacuation of 18 workers in high seasby the Coast Guard. The Kulluk rig grounded and had to bescrapped.

"Shell's continuing problems make clear that the company hasnot remedied the systemic deficiencies made evident in 2012 andthe (Interior Department) should not grant further approvals,"the letter to U.S. Interior Secretary Sally Jewell said.

The Fennica, one of two icebreakers Shell is leasing,contains a capping stack, or emergency equipment that couldcontain a blown-out well. Shell is sending nearly 29 ships tothe Chukchi and has spent about $7 billion on Arctic drilling. It hopes to start producing oil offshore in 10 or 15 years.

On Monday, Shell said it can proceed with preparatorydrilling in the Chukchi before the Fennica returns to the regionas long as it does not go to the undersea zone that contains oiland gas. The company had no comment on Tuesday about the letter.

Shell needs the two final authorizations, calledapplications for permits to drill, from the Interior Departmentbefore starting this season. (Reporting by Timothy Gardner; Editing by Andrew Hay)

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