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Re: DewDiligence post# 1273

Tuesday, 07/13/2010 8:35:03 AM

Tuesday, July 13, 2010 8:35:03 AM

Post# of 29408
Nevertheless, I do see some progress on this matter insofar as the latest order sets 11/30/10 as the target date for ending the moratorium. Whether the target will be met remains to be seen, of course, but merely having a stated deadline is an improvement of sorts.

the Nov 30 deadline is effectively the same as that in Moratorium I (6 months from May). However, Moratorium II contains language which the administration can use as an 'out' to effectively extend and broaden the moratorium beyond 6 months, e.g. the riser language suggests that the BOEM (former MMS) may require new specifications on risers. If this were to happen the moratorium would be effectively extended even though they could claim it had ended. I don't know much about risers but i wouldn't be surprised if new riser specifications would also broaden the scope to existing production facilities (i.e. platforms).

be careful with the optimism. there is no moratorium on 'shallow' water drilling yet hundreds of rigs have been idled while the BOEM (reminds of Inspecter Clouseau pronouncing 'bomb') revises regulations and does inspections.

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