By Yereth Rosen
ANCHORAGE, Alaska, May 20 (Reuters) - Days before a Shelldrillship went aground in the storm-tossed Gulf of Alaska, itwas clear that towing failures could spell disaster for thevessel, the crew and the marine environment, a company officialtold a U.S. Coast Guard panel on Monday.
The Kulluk, having completed preliminary drilling on anexploration well in the Beaufort Sea, broke away from its towlines, and support vessels attempting to regain control of thedrillship developed their own engine and mechanical problems,Norman Custard, Royal Dutch Shell's Alaska emergencyresponse leader, told the panel.
Custard said he began planning for a crew evacuation on Dec.27, four days before the Kulluk grounded off Kodiak Island.
"My first and foremost concern was those 18 people onboard," Custard said in the opening day of the Coast Guardhearing into the grounding, which capped an Arctic drillingseason so filled with setbacks that Shell delayed furtheroperations until next year.
Crew members were eventually evacuated by a Coast Guardhelicopter on Dec. 29, he said.
Shell has spent at least $4.5 billion since 2005 acquiringoffshore Arctic leases and preparing to explore in remote basinsbelieved to hold vast oil riches. But the company has yet tocomplete an exploration well in either the Beaufort Sea, offnorthern Alaska, or the Chukchi, off the northwestern coast.Legal, environmental and marine woes have stalled its progress.
Shell still has no timeline for when it will resumedrilling, after saying in February that it would not drill in2013, said company spokesman Curtis Smith, who was at Monday'shearing.
The hearing, expected to last two weeks, will delve into theseries of maritime mishaps that culminated in the Kullukgrounding, Coast Guard officials said. It is part of a formalmarine-casualty investigation launched in January by RearAdmiral Thomas Ostebo, head of the Coast Guard in Alaska.
"This is not a criminal investigation. This is simply afact-finding mission," said Coast Guard Petty Officer KipWadlow.
Other probes may result in civil or criminal charges. TheDepartment of Justice is considering sanctions for violationsthat other agencies say occurred on both of Shell's Arcticdrillships. A Department of Interior investigation of its entireAlaska drilling program has already led to recommendations fornew and stricter Arctic-specific regulations.
Shell's second Alaska drillship, the Noble Discoverer, was cited by the Coast Guard and EnvironmentalProtection Agency for numerous safety and environmentaldeficiencies. The two rigs are getting repaired in separateshipyards in Asia.
ConocoPhillips has shelved drilling plans for 2014at its Chukchi leases. Statoil, which also has Chukchileases, has yet to present a drilling plan to U.S. authorities.
The Coast Guard's Kulluk investigation is expected to take months to conclude, Petty Officer Wadlow said.
Other Shell officials will testify in coming days, as willofficials from its contractors and other groups. The Departmentof Interior's Bureau of Safety and Environment Enforcement andthe National Transportation Safety Board are also participating.
