F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T NA TI VE VI LL AG E OF P OI NT HO PE ; ALASKA W I LDERNESS LE AG UE; C E NT E R F ORB I OL OG I C AL DI VE R S I T Y; DE F E ND E R S OF W I LDLI FE ; NA TURAL R ES OU RC ES DE F E NS E C OU NC I L ; NA T I ON AL A U D U B O N S O C I E T Y , I N C .; NO R T HE RN A L AS KA EN V I RO N M EN TA L CEN TER; OCEANA ; PACI FI C E NV I RONM ENT; R E S I S T I NG E NV I R ON ME NT AL DE S T R UC T I ON ON I ND I GE NO US L AN DS , R E DO I L ; S I E R R A C L UB ; T HE W I L D E RN E S S S O C I E T Y , I N C .; G R E E N P E A C E , I N C ., P et i t i o n ers, v. K E N N E T H L E E S A L A Z A R , S e c r e t a ryof th e I n t e r i o r ; B UR E AU OF OC E AN ENER GY M AN AG EM ENT, RE GU LATI ON AN D ENFORCE M ENT, R esp o n d en t s, ST ATE OF ALASKA; SHEL L OFFS HO RE , R esp o n d en t s-In t erv en o rs. N o. 11- 72891

OP I NI ON 

# FI LED MA Y25 2 012 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALS- 2-

I NU P I AT C OMMUNI T Y O F T HE ARCT I C S LOPE , P et i t i on er , v. K E N N E T H L E E S A L A Z A R , S e c r e t a ryof th e I n t e r i o r ; B UR E AU OF OC E AN ENER GY M AN AG EM ENT, RE GU LATI ON AN D ENFORCE M ENT, R esp o n d en t s, ST ATE OF ALASKA; SHEL L O F F S H O R E I N C ., R esp o n d en t s-In t erv en o rs. N o. 11- 72943

O n P e t i t i on f

orR e vi e w of

aF i na l A ge nc yA c t i on B ur e au of

O c e a n E ne r gyM a na ge m e nt A r gue d a nd S ubm i tt e d M a y15, 2012 P a s a d e n a , C a lif

o rn ia B efo re: K O Z IN S K I, C h i ef Ju d g e, B E A an dIK U T A , C i rcu i tJu d g es.

O pi ni on by Judg e I K U T A , C i rc ui tJudg e: I n the s e e xpe di t e d pe t i t i ons f orr e vi e w , w e c ons i de rthe a l l e ga t i ons of N a t i ve V i l l a ge of

P oi ntH ope e ta l . a nd I nupi a tC om m uni tyof the A r c t i c S l ope ( c ol l e c t i ve l y , “ pe t i t i one r s ” ) tha tthe B ur e au of O c e a n E ne r gyM a na ge m e ntI n as e pa r a t e m e m or a ndum di s pos i t i on f i l e d c onc urr e nt l yw i th thi s opi ni on, 1 w e deny e xp edi t ed pet i t i on s c hal l engi ng B O E M ’ s dec i si on t o app rove an ex p lo ra ti o n p lan fo r S h ell G u lf o f M ex ico In c. to d rillfo r o ilin th e A rc ti c O ce an ’s C hukc hi S e a . B e c aus e of the e xpe di t e d na tur e of thi s c a s e , no m ot i ons t o s t a ythe m a nda t e w i l l be gr a nt e d. P e t i t i ons f orr e he a r i ng a nd r e he a r i ng e n ba nc m a ybe f i l e d w i th r e s pe c tt o thi s opi ni on. I n M a y2010, the S e c r e t a ryof the I nt e r i ors e pa r a t e d a nd r e a s s i gne d the 2 re spon sibi l i t i es of the form erM i nera l s M anagem entS ervi ce (M M S ) t o three se para t e di vi si on s: the B ureau o f O ce an E nergy M anagem ent(B O E M ), the B ureau of S af ety and E nv i ronm ent alE nforcement (B S E E ), and the O ff i ce of N atural R e s o u r c e s R e v e n u e . D O I S e c r e tar ia l O r d e rN o . 3 2 9 9 , s e c . 8 ( M a y1 9 , 2 0 1 0 ) . W hi l e the f

orm a l r e or ga ni z a t i on w a s unde rw a y , the B ur e au of O c e a n E ne r gy M a n a g e me n t , Re g u l a t i o n a n dEn f o r c e me n t( BO EM RE) , r a th e rth a n M M S, f u n c tio n e da s th e u m b r e llao r g a n iz a tio n f o rth e n o w - s e p a r a te dd iv is io n s . DO I S e c r e ta r ia l O r d e rN o . 3 3 0 2 ( Ju n e 1 8 , 2 0 1 0 ) ( c h a n g in g th e n a m e o f M M S to B O E M R E ) . A lth o u g h th e S e c r e tary ’s r e o r g a n iz a tio n p lan w a s n o t f u lly im p le m e n te du n til O c to b e r2 0 1 1 , se e 76 F e d. R e g. 64, 432 ( O c t . 18, 2011) , a f t e rthe d at e o f ap p ro v al o f S h el l ’ s ex p l o rat i o n p l an ati ssu e h ere, w e fo l l o w th e p art i es’ l e a db yr e f

e rr i n g t o th e r e g u l a t o ryd i v i s i o n s wi th i n BOEM RE a s BOEM a n dBS EE th r o u g h o u t th is o p in io n .

- 3- ( B O E M ) f

a ile dto d is c h a r g e its o b lig a tio n s u n d e rth e O u te rC o n tin e n ta l S h e lf L a n d s A c t ( O C S L A ) in ap p r o v in g S h e ll O f f s h o r e I n c .’s p lan f

o re x p lo r a to ryo il dri l l i ng i n the B eaufortS ea . W e have j uri sdi ct i on pu rs uantt o 4 3 U . S . C . § 1 34 9(c) , an dw e d en y th e p et i t i o n s. 1 I T h is c a s e is th e la te s t c h ap te rin alo n g - ru n n in g s a g ab e g in n in g b a c kin A p r il 20 02 , w hen the M i nera l s M anagem entS ervi ce (M M S ) es t abl i shed a f i ve-y ear 2 le a s e s a le s c h e du le f

o rth e o u te rc o n tin e n ta l s h e lf o f A la s k a . A la ska W

i ldern essT he re qu i re d p erm i t s i ncl ud e i nte ral i a an ap p ro v al o f an o i l sp i l l resp o n se 3 pl a n unde rthe C l e a n W a t e rA c t , 33 U . S . C . § 1321, aN a t i ona l P ol l ut a ntD i s c ha r ge a n dE lim in a tio n S y s te m ( N P D E S ) p e rm it u n d e rth e C le a n W a te rA c t, id. § 1 3 4 2 , a d r e d g e - a n d - f

ill p e rm it u n d e rth e C le a n W a te rA c t, id. § 1 3 4 4 , a n a irq u a lityp e rm it ( c o n tin u e d ...)

- 4- L e ague v . Ke m

pthorne , 5 4 8 F .3 d8 1 5 , 8 1 7

– 1 8 ( 9 th C ir2 0 0 8 ) , vacated , 559 F . 3d 9 1 6 ( 9 th C ir . 2 0 0 9 ) , dis m is s e d as m oot s u b n o m. A laska W i ldernes s L eagu e v . Salaz ar , 571 F . 3d 859 ( 9th C i r . 2009) . I nde e d, thi s i s the thi r d t i m e the gove rnm e ntha s appe a r e d be f or e us t o de f

e nd i t s appr ova l of

S he l l ’ s e xpl or a t i on pl a n a ga i ns tc ha l l e nge s bym a nyof the s e s a m e pe t i t i one r s . W e be gi n byde s c r i bi ng th e l eg al fram ew o rkan dfactu al b ack g ro u n dfo r th ese ch al l en g es. A I n e n a c t i n g th e O u t e rCo n t i n e n t a l Sh e l f La n d s A c t( O CSLA ) , 4 3 U . S. C. §§ 1331–1356a , C ongr e s s author i z e d the S e c r e t a ryof the I nt e r i ort o l e a s e port i ons of the out e rc ont i ne nt a l s he l f t o qua l i f i e d bi dde r s f

orthe purpos e of

e xpl or i ng a nd de ve l opi ng i t s oi l a nd ga s r e s e rve s . U nde rO C S L A , the S e c r e t a rybe gi ns by h o ld in g ale a s e s a le to id e n tif yq u a lif ie db id d e r s . I

d. §§ 1337, 1344( a ) . B e c om i ng the succ es sf

ul bi dd eri n a l ea se -s al e auct i on i s m er el y the fi rs tst ep. B ef ore u n d ert ak i n g ex p l o rat i o n act i v i t i es i n th e l easedarea, th e w i n n i n g b i d d er m u st o b ta in th e S e c r e ta ry ’s ap p r o v a l o f a n e x p lo r atio n p lan , id. § 1 3 4 0 ( c ) ( 1 ) , a n do b ta in m an y o th er p erm i t s an dap p ro v al s. If, aft er co m p l et i n g su ch ex p l o rat i o n act i v i t i es, 3( . . . c ont i nue d) 3 unde rthe C l e a n A i rA c t , 42 U . S . C . § 7661a , ape rm i tt o dr i l l , 43 U . S . C . § 1340, 30 C . F . R . § 2 5 0 . 1 6 1 7 , an da ran g e o f st at e ap p ro v al s.

- 5- the l e a s e hol de rc onc l ude s the r e i s pot e nt i a l f orde ve l opi ng oi l a nd ga s r e s e rve s on the l e a s e d a r e a , the l e a s e hol de rm us tobt a i n appr ova l of ade ve l opm e nta nd p r o du c tio n p la n , id. § 1351( a ) ( 1) , a s w e l l a s obt a i ni ng ane w r ound of pe rm i t s a nd ap p r o v a ls b e f

o r e p u r s u in g d e v e lo p m e n t o f th e le a s e da r e a . O nl y the expl orat i on pl an st age and the l ea se ho l der’ s obl i gat i on s und er O C S L A a r e a ti s s ue he r e . I n ge ne r a l , the appl i c abl e r e gul a t i ons r e qui r e the le a s e h o ld e rto s u b m it s p e c if ie din f o rm a tio n ab o u t its p r o p o s e de x p lo r a tio n p lan . 30 C . F . R . § 550. 211–228. W i thi n thi rtyda y s of the l e a s e hol de r ’ s s ubm i s s i on or la s t m o d if

ic a tio n o f

th e e x p lo r a tio n p lan , th e S e c r e tary“s h a ll ap p r o v e ” th e p lan if it i s c on si st entw i th O C S L A , i t s i m pl em ent i ng re gu l at i on s, and the appl i cabl e l ea se , 4 3 U .S .C . § 1 3 4 0 ( c ) ( 1 ) , u n le s s th e S e c r e taryd e te rm in e s th a t th e p r o p o s e da c tiv ity

“ w oul d pr obabl yc aus e s e r i ous ha rm orda m a ge t o l i f e . . . , t o pr ope rty , t o a ny m i nera l. . . , t o the nat i on alse curi ty or def ense , or t o the m ar i ne, coas t al , or hu m an envi ronm ent , ” i d. § 1334( a ) ( 2) ( A ) ( i ) , a nd tha t“ s uc h pr opos e d a c t i vi tyc a nnotbe m od i fi ed t o avo i d such con di t i on , ” id. § 1 3 4 0 ( c ) ( 1 ) ; see a l so 30 C . F . R . § 550. 233. W hi l e O C S L A f

oc us e s on de ve l opm e ntof the out e rc ont i ne nt a l s he l f , the C l e a n W a t e rA c t§ 311, a s a m e nde d bythe O i l P ol l ut i on A c tof 1990, f oc us e s on- 6-

th e p r e v e n tio n o f

a n dr e s p o n s e to o il s p ills . See 33 U . S . C . § 1 32 1. A m on g o ther th in g s, § 3 1 1 re q u ires a lea se h o ld erto su b m itan o ilsp il l res p o n se p lan , w h ich is “a pl an for r es po nd i ng , t o the m axi m um ext entprac t i cabl e, t o a w orstca se di sc harge, and t o a subst ant i althrea tof such a di sc harge, of oi l or a hazardou s s ub st ance . ” I d. § 1 3 2 1 ( j) ( 5 ) ( A ) ( i) . O f

f s h o r e f a c ilitie s “m a yn o t h a n d le , s to r e , o rtr a n s p o rt o il unl e s s ” the l e a s e hol de r ’ s oi l s pi l l r e s pons e pl a n “ ha s be e n appr ove d bythe P re si dent ” and the “ fa ci l i ty i s opera t i ng i n com pl i ance w i th the pl an. ” I d. § 1 3 2 1 ( j) ( 5 ) ( F ) ( i)

– ( ii) . A t th e tim e S h e ll b e g a n its le a s in g a n de x p lo r a tio n e f f o rts , M M S w a s in c ha r ge of c onduc t i ng l e a s e s a l e s , r e vi e w i ng e xpl or a t i on pl a ns unde rO C S L A , a nd appr ovi ng oi l s pi l l r e s pons e pl a ns unde r§ 311 of the C l e a n W a t e rA c t . F ol l ow i ng the D ee pw at erH ori zon o i l spi l l i n the G ul f of M exi co i n ear l y 201 0, the S ec re t ary d iv id e dM M S ’s r e s p o n s ib ilitie s a m o n g th r e e n e w r e g u la to rye n titie s in o r d e rto se para t e the “ three di st i nctand con fl i ct i ng m i ss i on s” of (1) prom ot i ng re source de ve l opm e nt , ( 2) e nf

or c i ng s a f

e tyr e gul a t i ons , a nd ( 3) m a xi m i z i ng r e ve nue s f r om offs ho re op er at i on s. P re ss R el ea se , U . S . D ep’ tof the Int er i or, S al az arD i vi des M M S ’s T h r e e C o n f

lic tin g M is s io n s ( M a y1 9 , 2 0 1 0 ) , av ai lable at http: //w w w . doi . gov/ne w s /pr e s s r e l e a s e s / S a l a z a r - D i vi de s - M M S s - T hr e e - C onf l i c t i ngM is s io n s .c f

m ; s e e al s o 76 F ed. R eg. 64 , 43 2; D O I S ec re t ar i alO rderN o. 32 99 . InT he O f f i c e of N a tur a l R e s our c e R e ve nue w a s m a de r e s pons i bl e f orr e ve nue 4 c ol l e c t i on.

- 7- the r e or ga ni z a t i on, the S e c r e t a rym a de B O E M r e s pons i bl e f orm a na gi ng the d ev elo p m en t o f o ff

sh o re re so u rc es , i n clu d in g ap p ro v in g a lea se h o ld er ’s expl orat i on pl an un der O C S L A and con du ct i ng an envi ronm ent alanal ys i s of that p la n u n d e rth e N a tio n a l E n v ir o n m e n ta l P o lic yA c t ( N E P A ) . See 76 F ed. R eg. at 64, 432. T he S e c r e t a rym a de the B ur e au of S a f e tya nd E nvi r onm e nt a l E nf or c e m e nt (B S E E ) resp o n si b l e fo r en fo rcem en to f safety an den v i ro n m en t al fu n ct i o n s, in c lu d in g th e o il s p ill r e s p o n s e p lan r e q u ir e m e n ts in 3 0 C .F .R . p t. 2 5 4 . See 76 F e d. R eg. at64 , 44 8. A s the re gu l at ory proce ss no w st ands, B O E M and B S E E ar e 4 in d e p e n d e n t e n titie s w ith s e p a r a te r e s p o n s ib ilitie s . B A l tho ug h a w i nn i ng bi dd eri n the B eaufortS eal ea se sa l e i n 2 00 3, S hel l has ye tt o com m ence expl orat i on ac t i vi t i es . In N ov em ber 200 6, S hel l subm i tt ed an e x p lo r a tio n p la n f

o rth e B e au f

o rt S e ar e g io n . A las ka W i lde rnes s L e ague , 548 F . 3d a t 8 1 8 . M M S ap p r o v e dS h e ll’s e x p lo r a tio n p lan in F e b ru a ry2 0 0 7 . I d. a t 8 2 1 . S o m e o f th e p e titio n e r s h e r e , a lo n g w ith o th e rg r o up s , c h a lle n g e dM M S ’s ap p r o v a l, a nd apa ne l of

thi s c ourti s s ue d as t a ype ndi ng r e vi e w , the r e bypr e ve nt i ng e x p lo r a tio n in 2 0 0 7 a n d2 0 0 8 . Se e id. at81 9– 20 . O n N ov em ber 20, 20 08 , the panel- 8-

v a c a te da n dr e m a n d e dM M S ’s ap p r o v a l. Se e id. a t835. A f t e rS he l l f

i l e d ape t i t i on for r eheari ng en banc, w e i ss ued an o rdervaca t i ng and w i thd raw i ng the panel o p in io n . Se e A las ka W

i lde rnes s L e ague , 559 F . 3d a t916. S h o rtlyth e r e a f te r , S h e ll w i thdr e w i t s e xpl or a t i on pl a n, a nd i n 2009 w e gr ant e d S he l l ’ s m ot i on t o di s m i s s the p e titio n s a s m o o t. Se e A las ka W i lde rnes s L e ague , 571 F . 3d a t859. I n June 2009, S he l l s ubm i tt e d ane w e xpl or a t i on pl a n tha tpr opos e d dr i l l i ng a tthe S i vul l i q a nd T orpe do pr os pe c t s i n the B e auf ortS e a . M M S appr ove d tha tpl a n, a nd i n M a y2010 w e d e n ie de x p e d ite dp e titio n s c h a lle n g in g th a t ap p r o v a l. Se e N at i v e V i l l. of P oi nt H ope v . Salaz ar , 378 F . A pp’ x 747, 748 ( 9th C i r . 2010) ( m e m . ) . D r i l l i ng di d not c om m e nc e , how e ve r , be c aus e s oon a f t e rthe appr ova l the f

e de r a l gove rnm e nt s us pe nde d a l l dr i l l i ng e xpl or a t i on a c t i vi t i e s i n the A r c t i c i n r e s pons e t o the D e e pw a t e rH or i z on oi l s pi l l . U . S . D e p’ tof the I nt e r i or , D e c i s i on M e m or a ndum R e ga r di ng the S us pe ns i on of C e rt a i n O f

f s hor e P e rm i tt i ng a nd D r i l l i ng A c t i vi t i e s on th e O u te rC o n tin e n ta l S h e lf , Ju ly1 2 , 2 0 1 0 , a t 1 , av ai lable at http: //w w w . do i . go v/ deepw at erho ri zon/up l oad/ S al az ar -B rom w i ch-Jul y- 12 -F i nal . pd f. I n M a y2 0 1 1 , a f

te rth e S e c r e tarylif

te dth e m o r a to r iu m o n d r illin g , S h e ll subm i tt ed a r evi se d exp l orat i on pl an t o B O E M and a revi se d o i l spi l l re spon se pl anA m on g o ther thi ng s, S hel l ’ s r evi si on s r es po nd ed t o tw o N ot i ce s t o L es se es 5 i s s ue d bythe S e c r e t a ryof the I nt e r i ori n 2010 a f

t e rthe D e e pw a t e rH or i z on i nc i de nt . O ne not i c e r e qui r e d l e a s e hol de r s t o i nc l ude a ddi t i ona l i nf orm a t i on i n the w o rstcase d i sch arg e scen ari o s o f th ei r ex p l o rat i o n p l an s an dd ev el o p m en tp l an s, se e N T L N o. 20 10 -N 06 (Jun e 18, 20 10 ). T he other i nform ed l ea se ho l ders that B S E E w oul d e va l ua t e “ w he the re a c h ope r a t orha s s ubm i tt e d a de qua t e i nf orm a t i on dem on strat i ng thati thas a cc es s t o and can d epl oy cont ai nm entre source s that w o u ldb e a d e q u a te to p r o m p tlyr e s p o n dto ab lo w o u t o ro th e rlo s s o f w e ll c o n tr o l,” se e N T L N o . 2 0 1 0 - N 1 0 ( N o v . 8 , 2 0 1 0 ) .

- 9- to B S E E . I n th e r e v is e de x p lo r a tio n p lan , S h e ll p r o p o s e dd r illin g tw o w e lls a t its

5 S i vul l i q pr os pe c ta nd tw o w e l l s a ti t s T orpe do pr os pe c ti n the B e auf ortS e adur i ng th e Ju ly1 0 to O c to b e r3 1 d r illin g s e a s o n . O n A ugus t3, 2011, a f t e rc onduc t i ng a N E P A r e vi e w of

the dr i l l i ng a c t i vi t i e s c ont e m pl a t e d i n the r e vi s e d e xpl or a t i on pl a n, B O E M i s s ue d aF i ndi ng of N o S i gni f

i c a ntI m pa c t . T he a ge nc yc onc l ude d “ tha tno s ubs t a nt i a l que s t i ons r e m a i n r e ga r di ng pot e nt i a l l ys i gni f i c a nti m pa c t s a nd tha tno po t ent i al l y s i gn i fi canti m pact s are expect ed t o o cc ur as a r es ul tof the prop osed a c t i vi t i e s . ” P e t i t i one r s do notc ha l l e nge the s e c onc l us i ons . O n A ugus t4, 2011, B O E M ap p r o v e dS h e ll’s r e v is e de x p lo r a tio n p lan s s u b je c t to e le v e n c o n d itio n s . C ondi t i ons 8 a nd 9 r e qui r e S he l l t o m a ke c e rt a i n t e c hni c a l de m ons tr a t i ons concerni ng i t s oi l spi l l re spon se capabi l i t i es t o B S E E before begi nn i ng expl orat oryW e ta k e ju d ic ia l n o tic e o f th is ap p r o v a l. Se e I

nte rs tate N

at ’ l G as C o. v . S. 6 Cal. G as C o. , 2 0 9 F . 2 d3 8 0 , 3 8 5 (9 th C i r. 1 9 5 4 ). W e al so g ran tth e p art i es’ m ot i ons f

orj udi c i a l not i c e of

br i e f s f i l e d i n N at i v e V i l lage of P oi nt H ope , 3 7 8 F. A p p ’x a t 7 4 7 . S hel l ’ s propo se d w el l -c appi ng st ac k and cont ai nm entsy st em i nv ol ves 7 “ subseadevi ce s use d o n the t op of the w el l ” thatw i l l ei ther s ea l the w el l or di vert the f l ow f r om the w e l l t o as ur f

a c e ve s s e l w i th ac ont a i nm e nts y s t e m e qui ppe d f or s e p a r a tio n a n dd is p o s a l o f h y d r o c a rb o n s .

- 10- dr i l l i ng ope r a t i ons . B S E E appr ove d S he l l ’ s r e vi s e d oi l s pi l l r e s pons e pl a n on M a r c h 28, 2012. 6 I n the s e e xpe di t e d pe t i t i ons , pe t i t i one r s c ha l l e nge B O E M ’ s appr ova l of S he l l ’ s r e vi s e d e xpl or a t i on pl a n. P e t i t i one r s c l a i m tha tB O E M e rr e d i n appr ovi ng th e p la n f

o rth r e e r e a s o n s . F ir s t, th e yc la im th a t S h e ll’s r e v is e de x p lo r a tio n p lan d id n o tm eetth e i n fo rm at i o n al st an d ard s setb y O C S L A an dth e reg u l at i o n s, b ecau se ( 1 ) i tf a i l e dt o r e f

e r e n c e a n ap p r o v e do i l s p i l l r e s p o n s e p l a n a s r e q u i r e db y3 0 C. F. R. § 550. 219( a ) a nd ( 2) di d notc ont a i n a n a de qua t e de s c r i pt i on of S he l l ’ s w e l l - c appi ng st ac k and cont ai nm entsy st em as re qu i re d b y 30 C . F . R . § 5 50 . 21 3(d). S ec on d, they 7 c l a i m tha tB O E M e rr e d byf a i l i ng t o r e c onc i l e c onf

l i c t i ng e vi de nc e r e ga r di ng the f e a s ib ilityo f

w e ll- c ap p in g te c h n o lo g ya n dth e a m o u n t o f tim e it ta k e s to d r ill a re l i ef w el l i n the eventof a w el l bl ow ou tand o i l spi l l . F i nal l y, they c l ai m that B O E M erredb y ap p ro v i n g th e rev i sedex p l o rat i o n p l an sub j ectt o co n d i t i o n s. II- 11-

B O E M ’ s de c i s i on “ t o appr ove , r e qui r e m odi f i c a t i on of

, ordi s appr ove a ny e xpl or a t i on pl a n” i s “ s ubj e c tt o j udi c i a l r e vi e w onl yi n aU ni t e d S t a t e s c ourtof ap p e a ls f o rac ir c u it in w h ic h a n a f f e c te dS tate is lo c a te d .” 4 3 U .S .C . § 1 3 4 9 ( c ) ( 2 ) . T he re vi ew i ng court“ shal l consi der the m att erun der r evi ew sol el y on the re cord m ade before the S ec re t ary, ” and B O E M ’ s f i nd i ng s, “ i f s up po rt ed by subst ant i al evi dence on the re cord consi dere d as aw ho l e, shal l be concl usi ve. ” I d. § 1 3 4 9 ( c ) ( 6 ) . I n a d d i t i o n t o th e s t a n d a r do f r e v i e w e s t ab l i s h e db yOC S L A, B O E M ’ s app roval of an expl orat i on pl an i s afi nal agencyac t i on subj ec tt o revi ew un der § 70 6 o f the A dm i ni strat i ve P roce du re A ct(A P A ). Un d e rth i s s t a n d a r d , we m a ys e ta s i de B O E M ’ s appr ova l onl yi f i ti s “ a rbi tr a ry , c apr i c i ous , a n abus e of d is c r e tio n , o ro th e rw is e n o t in a c c o r d a n c e w ith law .” 5 U .S .C . § 7 0 6 ( 2 ) ( A ) . R e vi e w unde rthe a rbi tr a rya nd c apr i c i ous s t a nda r d i s de f e r e nt i a l . W e w i l l not va c a t e a n a ge nc y ’ s de c i s i on unl e s s i tha s “ r e l i e d on f a c t or s C ongr e s s di d noti nt e nd i tt o c ons i de r , e nt i r e l yf a i l e d t o c ons i de ra n i m port a nta s pe c tof the pr obl e m , or offe re d an exp l anat i on [f or thatdeci si on ] thatruns coun t ert o the evi dence before the agency or i s s o i m pl ausibl e thati tcoul d n otbe as cr i bed t o a di ff er ence i n v i ew or the prod uctof agency e xp ert i se . ” L a n d s C o u n c il v . McN

a ir , 537 F . 3d 981, 987 ( 9th C i r . 2008) ( e n ba nc ) ( i nt e rna l quot a t i on m a rks om i tt e d) ( quot i ng E ar th I s land Inst. v. U . S. Fores t

Serv . , 44 2 F . 3d 11 47 , 11 57 (9th C i r. 20 06 ), overruled on other- 12-

g r o u n d s a s r e c o gn i

z e d b yAm. Tru c ki n gAs s ’ n s v . Ci t yo f L. A. , 559 F . 3d 1046, 1052 ( 9 th C ir . 2 0 0 9 ) ) . W e h a v e e m p h a s iz e dth at d e f e r e n c e to th e a g e n c y ’s d e c is io n s “is e s pe c i a l l yw a rr a nt e d w he n ‘ r e vi e w i ng the a ge nc y ’ s t e c hni c a l a na l y s i s a nd ju d g m en ts, b as ed o n an ev alu atio n o f c o m p lex sc ien ti fic d ata w ith in th e a g en cy ’s t ec hn i ca l expert i se . ’ ” C tr . fo rB io lo g ic a l D iv e rs ity v . Ke m pthorne , 588 F . 3d 701, 707 ( 9th C i r . 2009) ( quot i ng En v t l. De f . Ctr . , I n c . v . EP A , 3 4 4 F .3 d8 3 2 , 8 6 9 ( 9 th C ir . 2 0 0 3 ) ) . W h il e O C S L A g iv es ap p ellate co u rts ju risd icti o n o v erch allen g es to B O E M ’s appr ova l of

a n e xpl or a t i on pl a n, B S E E ’ s de c i s i ons r e ga r di ng oi l s pi l l pr e ve nt i on, re spon se , and l i abi l i ty are com m i tt ed t o a se para t e r evi ew proces s i n the di stri ct c o u rt. See 33 U . S . C . § 1321( n) . W e ha ve i nt e rpr e t e d § 1321( n) a s agr a ntof ex cl u si v e o ri g i n al j u ri sd i ct i o n t o th e d i stri ctco u rtt o rev i ew an o i l sp i l l resp o n se p la n . E dw ards e n v . U

. S. D e p’ t of the I nte r i or , 26 8 F . 3d 78 1, 79 0– 91 (9th C i r. 2001) ( “ O C S L A r e gul a t i ons , the s pe c i a lr e vi e w s t a tut e c ont a i ne d i n O P A , a nd the o v e r a ll r e g u la to ryr e g im e c r e a te db yO P A a ll m a k e it c le a rth a t ju r is d ic tio n lie s in the di s tr i c tc ourtf

ora c t i ons c ha l l e ngi ng appr ova l of as pi l l r e s pons e pl a n or m od i fi ca t i on s t o such a pl an. ”) . II IS ect i o n 5 5 0 . 2 1 9 p ro v i d es: 8 T he fol l ow i ng i nform at i on re gardi ng po t ent i alspi l l s of oi l (s ee defi ni t i on un der 30 C F R 25 4. 6) and h az ar do us subst ance s ( se e de f i ni t i on unde r40 C F R pa rt116) a s appl i c abl e , m us ta c c om pa ny y o u rEP: ( c o n tin u e d ...)

- 13- W e be gi n byc ons i de r i ng pe t i t i one r s ’ c l a i m tha tB O E M e rr e d i n appr ovi ng S he l l ’ s e xpl or a t i on pl a n be c aus e the pl a n di d noti nc l ude a l l the i nf orm a t i on r e q u i r e du n d e rOC S L A an dth e i m p l e m e n t i n g r e g u l a t i o n s . P e t i t i o n e r s p o i n tt o two a l l e ge d e rr or s : f

i r s ttha tthe e xpl or a t i on pl a n di d notm e e tthe r e qui r e m e nt s f or i nf orm i ng B O E M abouti t s oi l s pi l l r e s pons e pl a n, a nd s e c ond tha tthe e xpl or a t i on pl an’ s di sc ussi on of i t s propo se d w el l -c appi ng st ac k and cont ai nm entsy st em w as i nc om pl e t e . W e di s c us s e a c h i s s ue i n turn. A P et i t i on er s f

i rs tcl ai m thatB O E M ’ s app roval of S hel l ’ s e xp l orat i on pl an w as arbi traryand capri ci ou s bec ause the pl an fa i l ed t o com pl y w i th the re gu l at ory re qu i re m entthatan expl orat i on pl an i ncl ud e a“ [r ] ef er ence ” t o an app roved regi on al o i l sp i l l resp o n se p l an , as w el l as “ a co m p ari so n o f th e ap p ro p ri at e w o rstcase di s c ha r ge s c e na r i o i n [ the appl i c a nt ’ s ] appr ove d r e gi ona l [ oi l s pi l l r e s pons e pl a n] w i th th e w o rstcase d i sch arg e scen ari o th atco u l dresu l tfro m [th e ap p l i can t ’ s] prop osed expl orat i on ac t i vi t i es . ” 30 C . F . R . § 5 50 . 21 9(a) (2), (i v). 8( . . . c ont i nue d) 8 ( a ) O i l s pi l l r e s pons e pl a nni ng. T he m a t e r i a l r e qui r e d unde rpa r a gr aph ( a ) ( 1) or( a ) ( 2) of

thi s s e c t i on: (1 ) A n O i l S p i l l R esp o n se P l an (O S R P ) fo r th e faci l i t i es yo u w i l l u se t o c onduc ty oure xpl or a t i on a c t i vi t i e s pr e pa r e d a c c or di ng t o the re qu i re m ent s of 30 C F R part25 4, subp artB ; or ( 2 ) R e f e r e n c e to y o u rap p r o v e dr e g io n a l O S R P ( s e e 3 0 C F R 2 5 4 .3 ) to in c lu d e : ( i) A d is c u s s io n o f

y o u rr e g io n a l O S R P ; ( i i ) T he l oc a t i on of

y ourpr i m a ryoi l s pi l l e qui pm e ntba s e a nd s ta g in g a r e a ; ( i i i ) T he na m e ( s ) of

y ouroi l s pi l l r e m ova l or ga ni z a t i on( s ) f or b o th e q u ip m e n t a n dp e r s o n n e l; ( i v) T he c a l c ul a t e d vol um e of y ourw or s tc a s e di s c ha r ge s c e na r i o ( s e e 30 C F R 254. 26( a ) ) , a nd ac om pa r i s on of the approp ri at e w orstca se di sc harge s ce nari o i n you r app roved re gi on alO S R P w i th the w orstca se di sc harge s ce nari o that c oul d r e s ul tf

r om y ourpr opos e d e xpl or a t i on a c t i vi t i e s ; a nd ( v ) A d e s c r ip tio n o f

th e w o r s t c a s e d is c h a r g e s c e n a r io th a t c o u ld r e s u l tf r o m y o u rp r o p o s e de x p l o r a t i o n a c t i v i t i e s ( s e e 3 0 CFR 2 5 4 .2 6 ( b ) , ( c ) , ( d ) , a n d( e ) ) . S h e ll d idn o t a tta c h ac o p yo f af a c ility - s p e c if

ic o il s p ill r e s p o n s e p lan to its e xpl or a t i on pl a n unde r30 C . F . R . § 550. 219( a ) ( 1) . I tthe r e f or e m us ts a t i s f

ythe al t ernat e r equi re m ent s of § 55 0. 21 9(a) (2).

- 14- In re sp o n se to th is re q u irem en t, S h ell’ s e x p lo ra ti o n p lan stated , “ S h ell’ s B e auf ortS e aR e gi ona lE xpl or a t i on [ S pi l l P l a n] w a s unc ondi t i ona l l yappr ove d on 11 M a r c h 2010 a nd i s af

unda m e nt a l c om pone ntf orthe pl a nne d e xpl or a t i on dr i l l i ng p r o g r a m . T h e late s t r e v is io n . . . h a s b e e n s u b m itte dto [ B S E E ] a s as e p a r a te d o c u m e n t.” T h e e x p lo r a tio n p la n th e n c o m p a r e dth e w o r s t c a s e s c e n a r io f o rits- 15-

expl orat i on ac t i vi t i es t o the w orstca se sc enar i o i n the re vi se d o i l spi l l re spon se pl an s ubm i tt e d t o B S E E . W hi l e the e xpl or a t i on pl a n “ r e f e r e nc e [ d] ” the appr ove d 2010 spi l l pl an, i tdi d n otm ake w orstca se di sc harge com pari sons base d o n thatspi l l pl an as req u i redb y 3 0 C . F . R . § 5 5 0 . 2 1 9 (a)(2 )(i v ). R ath er, th e ex p l o rat i o n p l an ’ s w o rst ca se di sc harge com pari sons w er e bas ed on the es t i m at ed di sc harge i n the re vi se d s p ill p la n , w h ic h w a s s till u n d e r g o in g r e v ie w . N everthel es s, B S E E ’ s app roval of the re vi se d spi l l re spon se pl an on M ar ch 28 , 20 12 , re nd er s pet i t i on er s’ chal l enge t o thi s i ncon si st encyi n the expl orat i on pl an m oot . “ T he ba s i c que s t i on i n de t e rm i ni ng m ootne s s i s w he the rthe r e i s apr e s e nt controvers y a s t o w hi ch ef fe ct i ve re l i ef

can b e grant ed. ” N

w . E nvt l. D ef

. C tr. v. G ordon , 8 4 9 F .2 d1 2 4 1 , 1 2 4 4 ( 9 th C ir . 1 9 8 8 ) . W e h a v e h e ldth a t c h a lle n g e s to pr i orbi ol ogi c a l opi ni ons f orr i ve rhy dr opow e rs y s t e m ope r a t i ons be c a m e m oot upon i s s ua nc e of

s upe r s e di ng bi ol ogi c a l opi ni ons be c aus e w e c oul d no l onge rgr a nt e f f e c tiv e r e lie f

a s to th e n o w n o n - o p e r a tiv e b io lo g ic a l o p in io n s . See A m . R i ve rs v. N at ’l M ari ne Fisher i es Serv . , 1 2 6 F .3 d1 1 1 8 , 1 1 2 4 ( 9 th C ir . 1 9 9 7 ) ; I daho D e p’ t of Fish & G am e v . N

at ’l M ari ne Fisher i es Serv . , 56 F . 3d 10 71 , 10 74 –7 5 (9th C i r. 19 95 ). W e are fa ce d w i th a si m i l arsi tuat i on : S hel l ’ s r evi se d spi l l pl an w as approv ed i n 2 01 2, and there fore S hel l ’ s e xp l orat i on pl an no w re fe re nces and m akes th e r e q u ir e dw o r s t c a s e d is c h a r g e s c e n a r io c o m p a r is o n to a n ap p r o v e ds p ill p lan .- 16-

T he i nform at i on alre qu i re m ent s of 30 C . F . R . § 5 50 . 21 9(a) (2) are sat i sf i ed, and there is n o r e lie f

w e c a n n o w p r o v id e p e titio n e r s to r e d r e s s th e irc o n c e rn s . W e al so rej ectp et i t i o n ers’ arg u m en t(w h i ch i s, i n an y ev en t , w ai v edb ecau se it w a s r a is e df

o rth e f ir s t tim e a t o r a l ar g u m e n t) th a t S h e ll a m e n d e dits o il s p ill re spon se pl an af

t ersubm i tt i ng i tt o B S E E , and thatthere fore the spi l l pl an approv ed byB S E E i nc l ude d di f

f e r e ntoi l s pi l l tr a

j e c t or i e s , e qui pm e nt , f

l e e ts i z e , a nd t ec hn i qu es than d i d the spi l l pl an di sc usse d i n the expl orat i on pl an. G i ven that pet i t i on er s c on ce ded atoralar gu m entthatS hel l ’ s am endm ent s t o the approv ed 2012 s pi l l pl a n di d notc ha nge the w or s tc a s e di s c ha r ge num be r s di s c us s e d i n the ex p l o rat i o n p l an , th ese d i fferen ces are n o trel ev an t , an dth erefo re th i s arg u m en tal so f a ils . I n l i g h to f

B S E E ’ s ap p r o v a l o f

S h e l l ’ s r e v i s e dp l a n i n Ma r c h 2 0 1 2 , we d is m is s p e titio n e r s ’ c la im a s m o o t. B W e n ex t co n sid erp etit io n er s’ as se rtio n th at B O E M erre din ap p ro v in g S h ell’ s e xpl or a t i on pl a n be c aus e the pl a n i nc l ude d aw e l l - c appi ng s t a c k a nd c ont a i nm e nt s y s t e m a s pa rtof

i t s pr opos e d r e s pons e t o oi l s pi l l s , butdi d notpr ovi de a l l the i n f o rma t i o n r e q u i r e du n d e rth e O CSLA r e g u l a t i o n s . Sp e c i f i c a l l y , 3 0 C. F. R. § 550. 213( d) r e qui r e s a n e xpl or a t i on pl a n t o i nc l ude “ [ a ] de s c r i pt i on a nd di s c us s i onS ect i o n 5 5 0 . 2 1 3 (d ) p ro v i d es: 9 T h e f o llo w in g g e n e r a l in f

o rm a tio n m u s t a c c o m p a n yy o u rE P : . . . ( d) N e w orunus ua l t e c hnol ogy . A de s c r i pt i on a nd di s c us s i on of a ny n e w o ru n u s u a l te c h n o lo g y( s e e d e f in itio n u n d e r§ 5 5 0 .2 0 0 ) y o u w ill u s e to c a rryo u t y o u rp r o p o s e de x p lo r a tio n a c tiv itie s . I n th e p u b lic i nform at i on copi es of your E P , you m ayexcl ud e any prop ri et ary i nform at i on fr om thi s des cr i pt i on . In thatca se , i ncl ud e abri ef di sc ussi on of the generalsubj ec tm att erof the om i tt ed i nform at i on . If y ou w i l l notus e a nyne w orunus ua l t e c hnol ogyt o c a rryouty our pr opos e d e xpl or a t i on a c t i vi t i e s , i nc l ude as t a t e m e nts o i ndi c a t i ng.

- 17- o f a n yn e w o ru n u s u a l te c h n o lo g y( s e e d e f in itio n u n d e r§ 5 5 0 .2 0 0 ) y o u w ill u s e to c a rryouty ourpr opos e d e xpl or a t i on a c t i vi t i e s . ” T he r e gul a t i ons de f i ne “ ne w or 9 un usual t ec hn ol og y” t o i ncl ud e e qu i pm entor procedures that“ [h] ave notbeen used previ ou sl y or e xt ensi vel y i n a B O E M O C S R egi on , ” “ [h] ave notbeen used pr e vi ous l yunde rthe a nt i c i pa t e d ope r a t i ng c ondi t i ons , ” or“ [ h] a ve ope r a t i ng char ac t er i st i cs thatar e out si de the performance param et er s e st abl i shed by thi s part . ” 30 C . F . R . § 550. 200. N e i the rO C S L A nori t s i m pl e m e nt i ng r e gul a t i ons de f i ne the te rm “d e s c r ip tio n a n dd is c u s s io n ” o re x p la in th e le v e l o f s p e c if ic ityn e c e s s a ryto sat i sf y the re gu l at i on ’ s r equi re m entt o p rovi de “ generali nform at i on , ” s e e i d. § 550. 213( d) , thus l e a vi ng i tt o B O E M t o de t e rm i ne w he the rthe i nf orm a t i on p r o v id e dis s u f

f ic ie n t. See 4 3 U .S .C . § 1 3 4 0 ( c ) ( 1 ) ; L a n d s C o u n c il , 53 7 F . 3d at 1 0 0 0 .- 18-

W e a g r e e th a t th e w e ll- c ap p in g s ta c ka n dc o n ta in m e n t s y s te m d e s c r ib e din S he l l ’ s e xpl or a t i on pl a n m e e t s the de f i ni t i on of ne w a nd unus ua l t e c hnol ogy b e c au s e th e s y s te m h a s n e v e rb e e n u s e din B O E M ’s A la s k ar e g io n o rin A r c tic d r illin g c o n d itio n s . See 3 0 C . F . R . § 5 5 0 . 2 0 0 . N ev erth el ess, w e rej ectp et i t i o n ers’ arg u m en tth atB O E M w as arb i trary an dcap ri ci o u s i n ap p ro v i n g th e p l an , b ecau se B O E M c o u ldr e a s o n ab lyc o n c lu d e th a t th e e x p lo r a tio n p lan p r o v id e da n a d e q u a te de s c r i pt i on a nd di s c us s i on of the t e c hnol ogy . T he e xpl or a t i on pl a n’ s s e ve npa r a gr aph e xpl a na t i on of the w e l l - c appi ng s t a c k a nd c ont a i nm e nts y s t e m i nc l ude d a d e s c r i p t i o n o f

th e d e s i g n ( b l o w o u tp r e v e n t e re q u i p p e dw i th s p a c e rs p o o l s a n dr a ms f orpum pi ng ki l lw e i ghtf l ui d i nt o the w e l l , w i th a l l e qui pm e ntde s i gne d f or c ondi t i ons f

ound i n the A r c t i c ) , pr opos e d l oc a t i on ( w a rm - s t or e d aboa r d a desi gn at ed vess eli n A l as ka), and p l anned i m pl em ent at i on of the t ec hn ol og y. G i ven the defer ence w e ow e B O E M ’ s i nt erpret at i on of i t s ow n regul at i on s, w e c anno tsay tha tB O E M a c t e d a rbi tr a r i l yorc apr i c i ous l yi n c onc l udi ng tha tthi s de s c r i pt i on a nd d is c u s s io n s a tis f

ie dth e in f

o rm a tio n a l r e qu ir e m e n ts o f 3 0 C .F .R . § 5 5 0 .2 1 3 ( d ) . See A ue rv . R obbi ns , 5 1 9 U. S . 4 5 2 , 4 6 1 ( 1 9 9 7 ) ( a n a g e n c y ’ s i n t e rp r e t a t i o n o f i t s o wn r e gul a t i ons i s “ c ontr ol l i ng unl e s s ‘ pl a i nl ye rr one ous ori nc ons i s t e ntw i th theT o the ext entpet i t i on er s are m aki ng the m ore s ub st ant i ve ar gu m entthat 10 B O E M e rr e d byf

a i l i ng t o a na l y z e the t e c hni c a l f e a s i bi l i tyof

the w e l l - c appi ng s t a c k a nd c ont a i nm e nts y s t e m , the i ra r gum e ntf a i l s . B O E M ’ s r e vi e w doe s not e xt e nd t o s uc h i s s ue s , w hi c h a r e c ons i de r e d byB S E E w he n r e vi e w i ng a nd ap p r o v in g S h e ll’s o il s p ill r e s p o n s e p lan , se e 30 C . F . R . pa rt254, a nd appl i c a t i on f o rp e rm it to d r ill, i d. § 2 5 0 .4 1 7 . See E dw ardsen , 2 6 8 F .3 da t 7 9 0 ( d e c lin in g to r e vi e w the s ubs t a nt i ve a de qua c yof a n oi l s pi l l r e s pons e pl a n be c aus e j ur i s di c t i on f o rs u c h r e v i e w r e s i d e s i n th e d i s tr i c tc o u rti n th e f i r s ti n s t a n c e ) . Fo rth e s a me r e a s on, w e r e

j e c tpe t i t i one r s ’ c ont e nt i on tha tB O E M ’ s appr ova l of the e xpl or a t i on p la n c o n tr a v e n e s 3 0 C .F .R . § 2 5 0 .1 0 7 ( c ) , w h ic h r e q u ir e s u s e o f th e b e s t a v a ilab le a n ds a f e s tt e c h n o l o g y( BA ST) . BSEE, n o tBO EM , i s t a s k e dw i th e n s u r i n g BA ST c o m p lian c e , a n dw e la c kju r is d ic tio n to r e v ie w B S E E ’s te c h n ic a l an a ly s e s . See 76 F e d. R e g. a t64, 435 ( s t a t i ng tha t30 C . F . R . § 250. 107 “ e s t abl i s he s the e xpe c t a t i ons fo r o p erat o rs t o p ro t ecth eal th , safety, an dth e en v i ro n m en t , [an d ] th ese r e s p o n s ib ilitie s f

a ll u n d e rth e au th o r ityo f B S E E ” ) .

- 19- r e gul a t i on’ ” ( quot i ng R o b e r ts o n v . Me th o w V a lle yC itiz e n s C o u n c il , 490 U . S . 332, 35 9 (19 89 )) ). 10 I V W e ne xtturn t o pe t i t i one r s ’ a r gum e nttha tB O E M e rr e d i n appr ovi ng the expl orat i on pl an because the agency di d n otexpl ai n h ow i tre conci l ed in c o n s is te n c ie s in S h e ll’s 2 0 1 1 p lan r e g a r d in g th e f e a s ib ilityo f

th e p r o p o s e dw e llc ap p in g s ta c ka n dc o n ta in m e n t s y s te m a n dth e tim e f o rd r illin g ar e lie f

w e ll. A P et i t i on er s f

i rs tar gu e thatB O E M erre d i n n otexpl ai ni ng ho w i tre conci l ed S he l l ’ s s t a t e m e nt s i n i t s pr e - 2011 oi l s pi l l r e s pons e pl a ns tha t“ pr ove n t e c hnol ogy i s nota va i l abl e ” f

orw e l l c appi ng a nd “ w e l l c appi ng w oul d notbe a n e f f e c t i ve- 20-

o p tio n f o rr e g a in in g w e ll c o n tr o l w h ile o p e r a tin g f r o m am o o r e dv e s s e l,” w ith its s t a t e m e nti n the 2011 e xpl or a t i on pl a n tha t“ s ubs e ac appi ng e qui pm e nta nd c ont a i nm e ntc apabi l i t i e s . . . w oul d be i m pl e m e nt e d i f a l l othe rki c k c ontr ol m e thods f a il.” W e d is a g r e e . F i rs t , there i s no st atut ory or r egul at ory r equi re m entthatB O E M i ncl ud e a s ta te m e n t id e n tif

y in g a n dr e c o n c ilin g in c o n s is te n t p o s itio n s ta k e n b yap e rm it appl i c a nt . N ordoe s B O E M ’ s f a i l ur e t o do s o m a ke i t s appr ova l of the e xpl or a t i on pl an arbi traryand capri ci ou s und erthe A P A . W hi l e an agency m ustpres entan a de qua t e e xpl a na t i on f

orade c i s i on tha tc ontr a di c t s the a ge nc y ’ s pr e vi ous de c i s i on, s e e, e . g. , H

um an e Soc’y v . L ocke , 6 2 6 F .3 d1 0 4 0 , 1 0 5 8 ( 9 th C ir . 2 0 1 0 ) , B O E M d id no tadop tS hel l ’ s pas tst at em ent s, and there fore the agency i s nott aki ng an in c o n s is te n t p o s itio n . R a th e r , it is S h e ll, n o t B O E M , th a t r e a s s e s s e dth e f e a s ib ility o f aw e ll- c ap p in g s ta c ka n dc o n ta in m e n t s y s te m in lig h t o f n e w in f o rm a tio n , n a m e ly tha t“ [ w ] e l l c appi ng t e c hni que s ha ve i m pr ove d, e s pe c i a l l ys i nc e [ the i r ] f r e que nt appl i c a t i on dur i ng the I r a q- K uw a i tc onf l i c ti n the e a r l y1990s , a nd the r e c e nt M a c o n d o [ D e e p w a te rH o r iz o n o il s p ill] in c id e n t.” B ec ause O C S L A re qu i re s i nd ustri es t o ado ptthe bestavai l abl e and sa fe stt ec hn ol og y, 30 C . F . R . § 2 50 . 10 7(c) ; H .R . R e p . N o . 9 5 - 5 9 0 , a t 9 7 ( 1 9 7 7 ) , r e pr i nte d i n 19 78 U . S . C . C . A . N . 14 50 , w hi ch- 21-

w oul d i nc l ude t e c hnol ogi c a l a dva nc e s , S he l l ’ s r e a s s e s s m e nti s c ons i s t e ntw i th the re gu l at ory s chem e. M ore i m po rt ant , B O E M ’ s f ai l ure t o exp re ss l y a dd re ss S hel l ’ s c hang ed po si t i on on w el l -c appi ng t ec hn ol og y does notca stdo ub ton B O E M ’ s dec i si on that the a c t i vi t i e s i n the e xpl or a t i on pl a n w i l l not“ pr obabl yc aus e s e r i ous ha rm or da m a ge t o l i f

e ( i nc l udi ng f

i s h a nd othe ra qua t i c l i f e ) , t o pr ope rty , . . . ort o the m ar i ne, coas t al , or hu m an envi ronm ent . ” See 43 U . S . C . §§ 13 34 (a )( 2)(A )( i ), 1 3 4 0 ( c ) ( 1 ) ; s e e al

s o 30 C . F . R . §§ 55 0. 20 2, 55 0. 23 3. F i rs t , the w el l -c appi ng st ac k a n dc o n ta in m e n t s y s te m c h a lle n g e db yp e titio n e r s is n o t th e s o le m e a n s id e n tif ie din th e e x p lo r a tio n p la n f

o rr e s p o n d in g to aw e ll b lo w o u t an do il s p ill. R a th e r , S h e ll ha s s e ve r a l r e s pons e t ool s a ti t s di s pos a l , i nc l udi ng s ur f a c e c ontr ol opt i ons a nd re l i ef w el l capabi l i t i es . A s B O E M re as on abl y c on cl ud ed, “ S hel l ’ s propo se d s u b s u r f a c e c o lle c tio n s y s te m w ill b e a n a d d e dto o l f o rr e s p o n d in g to ap o te n tia l w e ll c o n tr o l in c id e n t w h e r e f lu id s f lo w a n dw ill in c r e a s e r e s p o n s e p r e p a r e d n e s s , b u t is n o t n ec es sa ry o r r eq u ired to co m p ly w ith ” th e r eg u lati o n s. S ec o n d , B O E M ’s concl usi on thatw el l -c appi ng t ec hn ol og y i s now fe as i bl e i n the A rc t i c i s s up po rt ed b ys u b s ta n tia l e v id e n c e in th e r e c o r d . See 43 U . S . C . § 1349( c ) ( 6) . B O E M f ound th a t “[ s ]u b s e ac o n ta in m e n t te c h n o lo g yh a s b e e n s u c c e s s f u llyu s e din th e p a s t,” i nc l udi ng byS he l l a tthe N a K i kaa nd M a r s s i t e s a nd byB r i t i s h P e tr ol e um dur i ng- 22-

the D ee pw at erH ori zon spi l l , and that“ m ostm aj or com po nent s f or such a s ys t em a r e a va i l abl e a nd ha ve be e n f i e l d t e s t e d. ” W he the rw e l l - c appi ng t e c hnol ogyi s now fe as ib le in th e A rc ti c is atech n ical issu e th at li es sq u ar ely w ith in th e a g en cy ’s s c ie n tif ic e x p e rtis e a n d , th e r e f

o r e , is a c c o r d e dg r e a t d e f e r e n c e b yar e v ie w in g c o u rt. Se e C tr . fo rB io lo g ic a l D iv e rs ity , 5 8 8 F .3 da t 7 0 7 ; s e e a ls o L a n d s C o u n c il , 537 F . 3d at99 3 (“ [C ou rt s] ar e notfr ee t o i m po se on the agency [ thei r] ow n n ot i on of w hi ch p r o c e du r e s a r e b e s t o rm o s t lik e lyto f u rth e rs o m e v a g u e , u n d e f in e dp u b lic g o o d . N orm a y[ c ourt s ] i m pos e pr oc e dur a l r e qui r e m e nt s note xpl i c i t l ye num e r a t e d i n the p e rtin e n t s ta tu te s .” ( in te rn a l c ita tio n s , a lte r a tio n s , a n dq u o ta tio n m a rk s o m itte d ) ) . A cc ordi ng l y, w e c on cl ud e thatthe i ncon si st encyi n S hel l ’ s pri or st at em ent s does noti nva l i da t e B O E M ’ s appr ova l of S he l l ’ s c urr e nte xpl or a t i on pl a n. B W e app l y s i m i l arre as on i ng t o p et i t i on er s’ cont ent i on thatB O E M ac t ed a rbi tr a r i l ya nd c apr i c i ous l yw he n i tappr ove d the e xpl or a t i on pl a n w i thout r e c o n c i l i n g e v i d e n c e i n th e r e c o r dth a tru n s c o n tr a ryt o Sh e l l ’ s e s t i ma t e o f th e t i me n e c e s s a ryto d r ill ar e lie f w e ll. P e titio n e r s a r g u e th a t S h e ll’s e s tim a te f o rth e tim e it w i l l t a ke t o dr i l l the pl a nne d pr oduc t i on w e l l s i s f a rl onge rtha n i t s e s t i m a t e f orthe tim e it w ill ta k e to d r ill an e m e r g e n c yr e lie f w e ll, an dth e yf

u rth e ra r g u e th a t S h e llS peci fi ca l l y, S hel l es t i m at ed thati tw ou l d t ake 44 d ay s t o d ri l l the pl anned 11 w e l l s a ti t s T orpe do pr os pe c tbutonl y25 da y s t o dr i l l a n e m e r ge nc yw e l l a tthe T o rp e d o s ite , a n dth a t it w o u ldta k e 3 4 d a y s to d r ill th e p lan n e dw e lls a t its S iv u lliq p r o s p e c t, b u t o n ly2 0 d a y s to d r ill ar e lie f w e ll a t th e s ite .

- 23- “f a ile dto p r o v id e th e a g e n c ya n yr a tio n a l e x p lan a tio n f o rw h yit e x p e c ts to d r ill a r e lie f w e ll s o m u c h f

a s te r .” 11 W e r e je c t p e titio n e r s ’ c o n te n tio n th a t B O E M a c te da rb itr a r ilyb yf a ilin g to st at e on the re cord ho w i tre conci l ed these di ff er entes t i m at es . A s not ed abov e, the r e i s no r e qui r e m e nttha tB O E M do s o. M or e ove r , B O E M ’ s de c i s i on t o r e l yon S hel l ’ s t i m e e st i m at e f

or dri l l i ng re l i ef

w el l s w as “ supp ort ed by subst ant i alevi dence o n th e r e c o r dc o n s i d e r e da s aw h o l e ” a n di s th e r e f o r e “ c o n c l u s i v e . ” 4 3 U . S. C. § 1 34 9(c) (6). T he w el l control pl an subm i tt ed as a partof S hel l ’ s e xp l orat i on pl an e x p la in e dth a t it w o u ldta k e as h o rte rtim e to d r ill r e lie f w e lls th a n to d r ill e x p lo r a to ryw e lls b e c au s e “[ r ]e lie f w e ll d r illin g is r ap id ,” r e lie f w e lls “in te r c e p t a d e e p b lo w o u t a t s o m e p o in t ab o v e th e to ta l v e rtic a l d e p th ,” w h ic h s a v e s tim e , a n din an em er gency s i tuat i on “ al l avai l abl e r es ou rc es ar e qui ckl y a cc es se d and funn el ed i nt o d ri l l i ng the re l i ef

w el l and k i l l i ng the bl ow ou tas qu i ckl y a s possibl e. ” B O E M ’s c o n c lu s io n th a t S h e ll p r o v id e dar e a lis tic e s tim a te o f th e tim e it w o u ld tak e to d rilla r elief w ell i s atech n ical issu e th at li es sq u ar ely w ith in th e a g en cy ’sS e c t i on 550. 233( b) ( 1) pr ovi de s tha tw i thi n thi rtyda y s of the e xpl or a t i on 12 p la n ’s s u b m is s io n o rla s t m o d if ic a tio n , th e R eg i o n al S up erv i so r w i l l t ak e o n e o f th e fo l l o w i n g act i o n s: T he re gi on alsupervi sor w i l l (1) app rove your E P , [i ] f [ i ] tcom pl i es ( c o n tin u e d ...)

- 24- sc i ent i fi c e xp ert i se and i s there fore ent i t l ed t o “ grea tdefe re nce. ” C tr . f orB i ologi c al D iv e rs ity , 588 F . 3d a t712. V F i na l l y , w e c ons i de rpe t i t i one r s ’ a r gum e nttha tB O E M a c t e d a rbi tr a r i l yby approv i ng S hel l ’ s e xp l orat i on pl an on the cond i t i on thatS hel l prov i de addi t i on al i nf orm a t i on aboutthe “ pr oc e dur e s f orde pl oy m e nt , i ns t a l l a t i on[ , ] a nd ope r a t i on of the sy st em un der ant i cipat ed envi ronm ent alcond i t i on s. ” T h i s arg u m en tl i k ew i se f a i l s . A s not e d above , B O E M m us tappr ove an e xpl or a t i on pl a n tha ti s c ons i s t e nt w ith O C S L A a n dits im p le m e n tin g r e g u la tio n s u n le s s th e p r o p o s e da c tiv ityw ill “p r o b ab lyc au s e s e r io u s h a rm o rd a m a g e to lif e ( in c lu d in g f

is h a n do th e ra q u a tic l i f e ) , t o p r o p e rty , . . . o rt o th e ma r i n e , c o a s t a l , o rh u man e n v i r o n me n t . ” 4 3 U . S. C. § § 1 3 3 4 ( a ) ( 2 ) ( A ) ( i) , 1 3 4 0 ( c ) ( 1 ) ; s e e al s o 30 C . F . R . § 550. 233. B O E M t a ke s the po si t i on thataf

t erapprov i ng a pl an, i tm ayst i l l “ re qu i re [the appl i cant ] t o m ee t c e rt a i n c o n d i t i o n s , i n c l u d i n g th o s e t o p r o v i d e mo n i t o r i n g i n f o rma t i o n . ” 3 0 C. F. R. § 5 5 0 .2 3 3 ( b ) ( 1 ) . A c c o r d in g to B O E M , its ap p r o v a l h e r e f o llo w e dth is p a th : 12( . . . c ont i nue d) 12 w i th al l the appl i cabl e r equi re m ent s, [a ] nd then [t ] he R egi on al S up ervi sor w i l l no t i fyyou i n w ri t i ng of the deci si on and m ayre qu i re y ou t o m e e tc e rt a i n c ondi t i ons , i nc l udi ng thos e t o pr ovi de m oni t or i ng in f o rm a tio n . (e l l i pses om i tt ed).

- 25- B O E M c o n c lu d e dth a t S h e ll’s e x p lo r a tio n p lan c o m p lie dw ith ap p lic ab le r e qui r e m e nt s a nd w oul d notc aus e s e r i ous ha rm orda m a ge t o the e nvi r onm e nt , but ne ve rthe l e s s r e qui r e d S he l l t o pr ovi de f urthe rdoc um e nt a t i on of i t s w e l l - c appi ng s ta c ka n dc o n ta in m e n t s y s te m , a s w e ll a s to m e e t c e rta in a d d itio n a l c o n d itio n s . T h is in te rp r e ta tio n b yB O E M o f its o w n r e g u la tio n s is c o n tr o llin g u n le s s p la in ly e rr o n e o u s o rin c o n s is te n t w ith th e r e g u la tio n . A uer , 519 U . S . a t461. F urthe r , the cond i t i on s ati ss ue here, w hi ch re qu i re S hel l t o see k add i t i on alautho ri za t i on s bef ore c o m m e n c in g d r illin g , a r e c o n s is te n t w ith th e s ta tu to rys c h e m e ’s r e q u ir e m e n t th a t a l ea se ho l der w i th an app roved exp l orat i on pl an ob t ai n a perm i tt o d ri l l and o ther approv al s that“ conform t o the ac t i vi t i es desc ribed i n d et ai l i n [the] approv ed [ e xpl or a t i on pl a n] ” be f

or e c onduc t i ng e xpl or a t i on a c t i vi t i e s . 30 C . F . R . § 550. 281; s e e al s o 4 3 U. S. C. § 1 3 4 0 ( d ) . Fo rth e s e r e a s o n s , p e t i t i o n e r s ’ a r g u me n tth a tBOEM im p e rm is s ib lyc o n d itio n e dits ap p r o v a l is w ith o u t m e r it. VIB ec au se w e d en y th e e x p ed it ed p etit io n s, w e d o n o t rea ch p etit io n er ’s 13 a r gum e ntr e ga r di ng w he the rapr ope rr e m e dyf orade f i c i e nc yi s va c a turorr e m a nd.

- 26- T he S e c r e t a ry ’ s r e c e ntdi vi s i on of M M S ’ s r e s pons i bi l i t i e s be tw e e n B S E E a nd B O E M m ak es i tcl ear th atB O E M ’ s du ty h ere i s l i m i t ed . W i th i n th e th i rty d ays prov i ded b y s t atut e, B O E M had t o d et erm i ne w hether S hel l ’ s e xp l orat i on pl an com pl i ed w i th O C S L A ’ s r equi re m ent s and w ou l d n ot“ prob abl y c ause se ri ou s harm orda m a ge ” t o l i f

e , pr ope rtyorthe hum a n, m a r i ne , orc oa s t a l e nvi r onm e nt . 43 U . S . C . §§ 13 34 (a )( 2)(A )( i ), 13 40 (c )( 1); s e e al s o 3 0 C .F .R . § § 5 5 0 .2 0 2 , 5 5 0 .2 3 3 . H er e, B O E M ’s d ec isio n th at S h ell’ s e x p lo ra ti o n p lan co m p li ed w ith O C S L A ’s r e q u ir e m e n ts is e n title dto d e f e r e n c e a n dis s up p o rte db yth e r e c o r da s aw h o le . W e d en y th e ex p ed i t edp et i t i o n s. 13 DE NI E D.- 27- C ou n se l H ol l y A . H arri s ( ar gu ed), E arthj ust i ce , Juneau, A K ; C hri st op her W i nt er , C ra g L aw C ent er , P ort l and, O R , for pet i t i on er s N at i ve V i l l age of P oi ntH op e, etal . and Inu pi at C om m un i ty of the A rc t i c S l op e. D a vi d C . S hi l t on ( a r gue d) , U . S . D e pa rtm e ntof Jus t i c e , W a s hi ngt on, D . C . , f or re spon dentK en S al az ar , S ec re t ary of the Int er i or, and B ureau o f O ce an M a n a g e m e n t. K athl ee n M . S ul l i van (argued), Q ui nn E m anuel U rquh art& S ul l i van, L L P , N ew Y ork, N Y ; K y l e W . P a rke r , C r ow e l l & M or i ng L L P , A nc hor a ge , A K , f or r e s p o n d e n t- in te rv e n o rS h e ll O f f s h o r e I n c ., e t a l. R e be c c aK rus e , S t a t e of A l a s kaD e pa rtm e ntof

L a w , A nc hor a ge , A K , f or re spon dent -i nt erveno r the S t at e of A l as ka.