by Tom Hamburger and Mike Memoli
Newly obtained documents reveal that months before the explosion of BP's Deepwater Horizon oil rig, British Petroleum was telling the Obama administration that the regulatory process run through the now widely-criticized Minerals Management Service was working fine.
The documents, obtained by the Tribune/LA Times from Congressional investigators, reveals the company's perspective at a time the Obama administration was developing its policies on offshore drilling.
In June 2009, the White House created an Interagency Ocean Policy Task Force, tasked with developing recommendations for "a national policy that ensures protection, maintenance, and restoration of oceans, our coasts and the Great Lakes." In the September 2009 letter, the oil giant told the administration that the Minerals Management Service regulation had been "effective" and didn't need to be expanded.
"While we support the initiative to begin establishing a national ocean policy, we would be concerned about policy that significantly increases bureaucracy in a way that could lead to confusion, conflict, and delay in obtaining necessary permits for projects, limits access to explore for and develop oil and natural gas, and discourages important refining, distribution, and other industrial commercial use," wrote Margaret Laney, the senior regulatory affairs director for BP America, in an August letter to the task force.
Laney outlined several areas of particular interest to BP as it sought to discover potential new energy sources, pointing first to the Gulf of Mexico.
"It is essential that access to the OCS [Outer Continental Shelf] - including the Eastern Gulf of Mexico - be encouraged to ensure vast untapped resources are available to support the country's economic and energy security," she wrote.
BP argued that the existing management and regulatory process run through the Minerals Management Service was sufficient, and "should be used as a basis for regulatory efforts without realigning the agencies' regulatory authorities."
"The MMS five-year planning process ... has proven to be an effective and deliberate public process that provides area residents with extensive opportunities for comment and consultation," Laney wrote. "The process of incorporating marine spatial planning into existing regulation should not result in its use as a tool to delay development of offshore energy projects or be used as a de-facto moratorium that precludes access to areas that have significant natural resources."
Not only is Congress now investigating BP practices that may have contributed to the April explosion, but the White House has now pledged a major overhaul of MMS, which President Obama said Tuesday night "has become emblematic of a failed philosophy that views all regulation with hostility - a philosophy that says corporations should be allowed to play by their own rules and police themselves."