Obama Forms Three Offices to Replace Offshore Agency (Update1)

[NYC_SKP]

Source: Bloomberg

By Jim Efstathiou Jr.

May 19 (Bloomberg) -- The Obama administration will replace the Minerals Management Service, faulted for lax regulation of offshore drilling before the BP Plc spill last month, with three offices to oversee leases, drilling safety and fee collection.

Interior Secretary Ken Salazar is creating the Bureau of Ocean Energy Management, the Bureau of Safety and Environmental Enforcement and the Office of Natural Resources Revenue, according to a press release scheduled to be released today.

President Barack Obama on May 15 said he would end the “cozy relationship” between companies that drill for oil and gas and the Minerals Management Service, part of the Interior Department. Its track record has been scrutinized since the BP well blew up on April 20, killing 11 workers and creating an oil spill that continues to spread toward Gulf Coast states from Louisiana to Florida.

The MMS generates about $13 billion a year for the U.S. Treasury by partnering with companies such as BP and Exxon Mobil Corp. to develop oil and natural gas, trailing only the Internal Revenue Service in revenue.

Read more: http://www.businessweek.com/news/2010-05-19/obama-forms-three-offices-to-replace-offshore-agency-update1-.html

---

A press release is forthcoming.

I'll post more later.

I'm happy to hear that there's some house-cleaning about to happen.

Salazar is doing the right thing, here.

:patriot:

[saracat]

1. I agree but it should have been done earlier and he KNEW it.

He spoke of this over a year ago. There was no excuse for his not taking action. But kudos for getting it done now. It does prove that it could have been done. It sounds like the WH exerted pressure.

[NYC_SKP]

3. More could have been done sooner, no doubt, but I think this is significant.

As much as we'd like to have seen more action on this much sooner, I can cut a little slack to them if they were quietly investigating and wanting to be thorough and decisive before going public.

A memo sent to 1700 MMS staff has not yet been published, but confirms that the Secretary acknowledges that some employees "have brought dishonor to the Department and to MMS."

:patriot:

[joanmj]

10. He did know it--I agree.

It takes this absolute catastrophe to take action--how sad.:nuke:

[tosh]

2. K&R.

[pinboy3niner]

4. K&R

:kick:

[NJmaverick]

5. K & R!

[Myrina]

6. Three separate agencies? Sounds like a mess waiting to happen ...

.... how often to officers within the SAME agency know what the hell is going on, let alone 3 separate entities, with 3 separate agendas and sets of staff, being able to coordinate their efforts and not succumb to any under-the-table rule bending?

:( Grrr.

[NYC_SKP]

7. A new division where there currently is none, dedicated to Safety and Environmental Protection.

That is a terrific thing and ensures accountability, prevents conflicts of interest that currently exist.

Bureau of Safety and Environmental Enforcement: A new bureau under the supervision of the Assistant Secretary for Land and Minerals Management that will be responsible for ensuring comprehensive oversight, safety, and environmental protection in all offshore energy activities.

[NYC_SKP]

9. More about the benefits from the conference call.

"...“Theses three missions -- energy development, enforcement and revenue collection -- are conflicting missions and must be separated,” Salazar said on a conference call with reporters.

“So today I’m ordering the division of MMS into three distinct entities.”

The MMS generates about $13 billion a year for the U.S. Treasury by partnering with companies such as BP and Exxon Mobil Corp. to develop oil and natural gas, trailing only the Internal Revenue Service in revenue.

“The same group of people, the same agency getting that $13 billion are also for doing everything else,” Salazar said. “It’s from my point of view an important organizational change.”..."

http://www.businessweek.com/news/2010-05-19/obama-replaces-offshore-agency-faulted-in-bp-spill-update2-.html

[Bragi]

8. Three offices are always better than one

Strategy

1. Open three offices
2. Each of the offices opens a file on every rig
3. No more blowouts!

(Underpants Thieves variation for regulators)

- B

[NYC_SKP]

11. Reported now on USA Today:

:applause:

Obama team splits offshore oil agency into three parts

"The Minerals Management Service has three distinct and conflicting missions that -- for the benefit of effective enforcement, energy development, and revenue collection -- must be divided," Salazar said in a statement.

Here's the breakdown, from the White House:

-- Bureau of Ocean Energy Management: A new bureau under the supervision of the Assistant Secretary for Land and Minerals Management will be responsible for the sustainable development of the Outer Continental Shelf's conventional and renewable energy resources, including resource evaluation, planning, and other activities related to leasing.

--Bureau of Safety and Environmental Enforcement: A bureau under the supervision of the Assistant Secretary for Land and Minerals Management that will be responsible for ensuring comprehensive oversight, safety, and environmental protection in all offshore energy activities.

-- Office of Natural Resources Revenue: An office under the supervision of the Assistant Secretary for Policy, Management, and Budget that will be responsible for the royalty and revenue management function including the collection and distribution of revenue, auditing and compliance, and asset management.

http://content.usatoday.com/communities/theoval/post/2010/05/obama-team-splits-offshore-oil-agency-into-three-parts/1

:patriot:

[NYC_SKP]

12. Update #5: "These three... ...are conflicting missions and must be separated". (Salazar)

By Jim Efstathiou Jr.
May 19 (Bloomberg) --

The Obama administration replaced the Minerals Management Service, faulted for lax regulation of offshore drilling before the BP Plc spill last month, with three offices to oversee leases, drilling safety and fee collection.

Interior Secretary Ken Salazar signed an order today creating the Bureau of Ocean Energy Management, the Bureau of Safety and Environmental Enforcement and the Office of Natural Resources Revenue. Lawmakers said the MMS failed to impose tougher safety standards on drillers and more effective plans to respond to oil spills.

President Barack Obama said on May 15 that he would end the “cozy relationship” between companies that drill for oil and gas and the Minerals Management Service, part of the Interior Department. The agency’s track record has been scrutinized since the BP well blew up on April 20, killing 11 workers and creating an oil spill that continues to spread toward Gulf Coast states from Louisiana to Florida.

“These three missions -- energy development, enforcement and revenue collection -- are conflicting missions and must be separated,” Salazar said in a news conference. “So today I’m ordering the division of MMS into three distinct entities.”

http://www.businessweek.com/news/2010-05-19/obama-replaces-offshore-agency-faulted-in-bp-spill-update5-.html

:patriot:

[Bragi]

13. Or maybe two of them should be stopped /nt

[NYC_SKP]

14. No. Development includes offshore wind and tidal energy, Revenue is to bring $$$ into treasury.

Those offshore waters are our domain.

True, many are against green energy production if it's offshore, that's their prerogative.

:patriot:

[Bragi]

15. BP Macondo well is "green energy production"?

There's nothing "green" about high-risk deepwater extraction.

[NYC_SKP]

16. No, your reply suggested that we don't need two of the three departments.

I said nothing about BP Macondo.

My point is that without the first one, the Bureau of Ocean Energy Management, we would NOT pursue the green technologies offshore that I mentioned.

· Bureau of Ocean Energy Management: A new bureau under the supervision of the Assistant Secretary for Land and Minerals Management that will be responsible for the sustainable development of the Outer Continental Shelf’s conventional and renewable energy resources, including resource evaluation, planning, and other activities related to leasing.

· Bureau of Safety and Environmental Enforcement: A new bureau under the supervision of the Assistant Secretary for Land and Minerals Management that will be responsible for ensuring comprehensive oversight, safety, and environmental protection in all offshore energy activities.

· Office of Natural Resources Revenue: A new office under the supervision of the Assistant Secretary for Policy, Management, and Budget, that will be responsible for the royalty and revenue management function including the collection and distribution of revenue, auditing and compliance, and asset management.