Environmental rules tightened for deepwater oil drilling

The Obama administration announced Monday it is requiring environmental reviews for all new deepwater oil drilling. That means an end, at least for now, to the kind of exemptions that allowed BP to drill its blown-out well in the Gulf with little scrutiny. The announcement came in response to a report by the White House Council on Environmental Quality, which found that decades-old data provided the basis for exempting BP's drilling permits from any extensive review. The Interior Department said the ban on so-called "categorical exclusions" for deepwater drilling would be in place pending full review of how such exemptions are granted. "Our decision-making must be fully informed by an understanding of the potential environmental consequences of federal actions permitting offshore oil and gas development," Interior Secretary Ken Salazar said in a statement. For now, new deepwater drilling is under a temporary moratorium in the Gulf. Once that's lifted, though, Interior's new policy is likely to make it much more time-consuming for oil companies to move forward with new deepwater projects, since environmental assessments will be required along the way. Shallow-water drilling will also be subjected to stricter environmental scrutiny under the new policy...more