SHELL EXPLORATION COMMENT ANALYSIS

Plan of Cooperation Meeting – January 22, 2015 Deering, Alaska

Page 1 of 5

Issues

Comments Shell Response Mitigation 

Measures

Shell has been in the news lately, are you going to do better this 

year. 

The DoJ brought charges against one of 

our contractors, Noble Drilling, for 

deficiencies and violations in their 2012 

activities. Shell has learned from this and 

learned ways to improve including 

managing our contractors. We have 

committed to having one of our Shell 

mariners on each of our vessels. Also, we 

improved and upgraded the Discoverer 

drilling rig, fixing the issues that caused 

them to get those fines.

N/A

An audience member asked to see the map with the Chukchi 

Leases.

[Showed them the map on one of our 

slides] N/A

Are you going to be operating oil spill trainings in the areas near 

the communities

Yes, we offer oil spill trainings two times a 

year in the Chukchi coastal villages near 

our lease site. We also hold one oil spill 

response training each year in Savoonga, 

Wales, and Gambell. We will be offering 

trainings in Kotzebue, Deering, and 

possibly Buckland this year.

N/A

Where do the ocean currents go in the Chukchi? Does it flow We have been studying ocean currents for 

7 years now. It’s really driven by winds. 

Most of the water is heading north. The 

water can change quickly but we use our 

knowledge to determine which type of 

vessels we use.

N/A

The ocean in Kotzebue goes clockwise. If there is a spill up in the 

Chuck chi, it will flow to Kotzebue sound. There isn’t much 

current, the oil would rush in.

In the 7 years we spoke about, we studied 

the current in the areas around our Chukchi 

leases. In Kotzebue Sound, we don’t plan 

on drilling. We are interested in learning 

N/A
SHELL EXPLORATION COMMENT ANALYSIS

Plan of Cooperation Meeting – January 22, 2015 Deering, Alaska

Page 2 of 5

Issues

Comments Shell Response Mitigation 

Measures

more about the Sound, however. Last year, 

we began a science agreement with the 

Northwest Arctic Borough. Shell funds 

science studies that are directed by the 

communities through the NWAB.

Since you’re going to be drilling up near Pt. Lay, how long will it 

take for an oil spill response effort to start?

We have a dedicated oil spill response 

vessel that is nearby the drilling rigs and 

can respond to an incident and begin 

collecting oil within 1 hour.

H

How are these boats in rough weather – barges in the Sound. If 

there’s a spill, how are they going to react?

The size of these vessels can handle rough 

weather very well. The landing craft is 

probably the only one that would need to 

be harbored in rough weather.

N/A

What about ice conditions – can they handle that? We do have several vessels at our Chukchi 

site that are ice class that can function for 

ice management; however, we don’t 

purposefully break up ice. Our operations 

are designed to drill in ice free waters. If 

the Burger site is covered by ice, we won’t 

go up to drill.

I

How far from the land in Goodhope Bay do you plan on being? It’s 

pretty shallow near....you’re going to be too close to the land.

About 7 miles off of the coast. This 

location should be safe because they were 

designated as a state Potential Place of 

Refuge. We don’t plan on going any closer 

to the land than that.

N/A

That area has potential for crosswinds. If you try to put your anchor 

down, the currents going to be strong.

Thank you for the information. We will 

pass this information along to our 

operations. 

N/A
SHELL EXPLORATION COMMENT ANALYSIS

Plan of Cooperation Meeting – January 22, 2015 Deering, Alaska

Page 3 of 5

Issues

Comments Shell Response Mitigation 

Measures

Will there be VHF announcements I believe AES hires personnel to manage 

the communication center. So there will be 

someone hired here in Deering that works 

at the Communication Center, that the 

community can go to to find out what 

Shell’s vessels are doing.

N/A

When are you going to start recruiting for the PSOs? We contract with NANA for PSOs from 

this region. I believe they recruit a little bit 

later in the spring, I encourage you to 

contact NANA.

N/A

How will putting the bearded seal on the endangered species list 

impact our operations?

Not very much because these mammals are 

already protected, this is why we have 

PSOs on our vessels. We will just 

potentially face more scrutiny.

N/A

If you were to find oil, then you cap it off, how are you going to 

monitor that cap. And what procedures are you going to do with 

that cap when there’s ice. Like what happened in Louisiana, it took 

them so long to stop that cap. Do you got some kind of scenario to 

use?

It speaks to the design of our wells. These 

are exploration wells so we are just drilling 

them for the data now. After we drill these 

wells, we permanently close them with 

concrete.

N/A

They are designed for very cold water that they won’t fail? Yes. N/A

What are you going to do about oil spills in ice, how are you going

to get the oil to the mainland?

Recent studies have shown that ice can 

actually help collect and trap the oil, where 

it can be more effectively burned or 

removed by mechanical means.

N/A

Years from now, our kids can suffer from an oil spill. What are you 

going to do if there is an oil spill during complete ice?

We are still studying a situation like this as 

part of multi-year joint studies on oil spill 

recovery in ice in Norwegian waters. The 

studies are being conducted, but we will 

look into this and get back to you.

N/A
SHELL EXPLORATION COMMENT ANALYSIS

Plan of Cooperation Meeting – January 22, 2015 Deering, Alaska

Page 4 of 5

Issues

Comments Shell Response Mitigation 

Measures

How long has Shell been drilling and exploring wells? We have been in the Arctic since the 60s. 

We have successfully drilled 5 exploration 

wells in the Chukchi Sea and many more 

wells in the Beaufort Sea in the 1980s and 

1990s.

N/A

What about earthquakes? They haven’t raised any red flags for us. 

We have wells in California that has a lot 

of earthquakes. Our well design takes into 

account earthquakes.

N/A

Who was it who drilled outside of Louisiana, that spilled oil? It was BP. N/A

The people on the north slope are close to where you are drilling. 

What I see on the news is they aren’t going to see any money or 

jobs from your drilling, you’ll provide scholarships as an in-kind 

donation. It’s not a revenue sharing. How does that region benefit?

We are in the north slope villages all the 

time. The majority think that oil and gas 

and the Inupiaq life/subsistence can 

coexist. We just conducted a survey that 

shows this. We just signed an agreement 

with the village corporations on the north 

slope that gives them the option to 

purchase an interest in our Chukchi leases. 

Their shareholders will benefit from 

dividends. It also gives them a seat at the 

table.

N/A

How are we ensuring that all of these upgrades and rebuilds are 

tested on the Noble Discoverer

We are under a heavy microscope. That rig 

will be inspected by the U.S. Coast Guard

and our own internal inspections and 

shakedowns.

N/A

What about these fines? Who pays them? Shell did not pay these fines, Noble 

Drilling will. But, this is Shell’s program 

so we are responsible for the program as a 

whole, and we know our reputation is on 

the line.

N/A
SHELL EXPLORATION COMMENT ANALYSIS

Plan of Cooperation Meeting – January 22, 2015 Deering, Alaska

Page 5 of 5

Notes:

*Mitigation Measures are only assigned to applicable comments. 

“Not applicable” (N/A) is used to designate comments that do not require mitigation measures as a course of action. See Mitigation Measures Index definitions according to assigned letter.

Proposed Mitigation Measures

A-Communication Plan for avoiding conflicts with subsistence users.

B-Collaboration and Communication with Whaling Associations

C-Plan of Cooperation (will work to obtain a CAA)

D-Will honor Camden Bay blackout dates for Nuiqsut and Kaktovik whaling.

E-Subsistence Advisors based in Chukchi Sea Villages and Kotzebue

F-Protected Species Observers

G-Robust Marine Mammal Monitoring Protocol

H-OSR support vessels on standby 24/7 near drilling location

I-Real time Ice and Weather Forecasting

J-Crew change by helicopter and collaboration on routes to and from shorebase

K-zero discharge in Camden Bay of the Beaufort Sea: drilling fluids and cuttings after the 26-in casing; gray and treated black waters; bilge and ballast waters

L-enhanced blowout prevention and mitigation measures (i.e., second set of blind shear rams, redundant ROV hot stab panel, prefabricated subsea collection and containment 

system, and relief well plan with designated relief well drilling unit).