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Secretary Jewell Visits North Dakota’s Bakken Region, Source: DOI

August 7, 2013 in EV News, Oil

Tours Oil and Gas Production Facilities, Theodore Roosevelt National Park;  As Part of President’s Climate Action Plan, Inspects Innovative Technologies to Capture Methane Emissions

Drilling rig Photo courtesy of USGS

Drilling rig
Photo courtesy of USGS

DICKINSON, N.D. – Underscoring the Obama Administration’s all-of-the-above energy strategy and comprehensive Climate Action Plan to cut carbon pollution, Secretary of the Interior Sally Jewell concluded her two-day trip to North Dakota today by praising federal, state and local partnerships that are facilitating safe and responsible oil and gas development in the Bakken Formation.

U.S. Senators John Hoeven and Heidi Heitkamp, North Dakota Lieutenant Governor Drew Wrigley, and Bureau of Land Management (BLM) Principal Deputy Director Neil Kornze accompanied the Secretary on her tour of production facilities. Jewell also met with North Dakota Governor Jack Dalrymple.

Jewell, Hoeven and Heitkamp also visited Theodore Roosevelt National Park to highlight the economic contributions made by recreational visits to public lands in North Dakota, as well as to witness the strain put on park resources from increased oil and gas development in the region.

“The Bakken boom is a perfect example of how new and improved technology is allowing industry to tap previously inaccessible or unknown energy resources to create jobs, decrease our dependence on foreign oil, and grow our economy. As drilling methods and technologies advance, we have an obligation to ensure that energy production is happening in a safe and responsible way for the environment and for communities,” said Jewell. “Working hand in hand with industry, we have an opportunity to use innovative technologies to capture natural gas to power more homes with cleaner American-made energy, while reducing methane emissions and cutting carbon pollution.”

During her visit to the Williston area on Tuesday, Jewell saw examples of oil and gas production on a federal mineral estate in western North Dakota, where production is rapidly expanding on federal, state, and private lands. The Secretary toured a drilling rig producing oil from federal resources and visited a crude oil production facility where oil is processed and transported via truck, rail and pipelines to refineries across the country. Jewell also inspected new technologies being employed by some companies in the region to capture and reduce natural gas and methane emissions. The President’s Climate Action Plan calls for the Administration to work collaboratively with state governments, as well as the private sector, to reduce emissions across multiple sectors, improve air quality, and achieve public health and economic benefits.

On Tuesday afternoon, Jewell visited Theodore Roosevelt National Park to discuss the important role the park plays in creating outdoor recreational opportunities and boosting the local economy. The park welcomes approximately 600,000 visitors each year who contribute $28.32 million to the local economy and supports 451 jobs.

“The park pays tribute to Theodore Roosevelt and his enduring contribution to the conservation of our nation’s resources,” said Jewell. “This landscape, which inspired President Roosevelt and still inspires visitors today, is a big economic engine for the region. It’s also a powerful reminder that, even as we bear witness to a production boom in the Bakken, there are places important to America that are too special to drill and must be protected for future generations.”

Today, Jewell met with the new Bakken Federal Executive Group to discuss some of the challenges associated with the rapid expansion of oil and gas development in the region. The Group represents a dozen federal bureaus with review and permitting responsibilities that are working collaboratively to address common development obstacles associated with the Bakken boom in western North Dakota. The group was identified by the President as one of five priority regional initiatives under Executive Order 13604, Improving Performance of Federal Permitting and Review of Infrastructure Projects.

“The BLM has seen a 500 percent increase in drilling applications in the area over the past five years – with more than half of the applications for Indian trust lands. With budget constraints, sequestration and mixed ownership jurisdictions, we need to combine our efforts and start thinking of natural resource management on a landscape scale,” said Kornze. “The federal and state activities going on here in the Bakken Formation are a perfect example of how natural resource management has shifted from individual agency efforts to a team effort. Working closely with our state, tribal and industry partners here in North Dakota, the BLM is committed to the type of close coordination and collaboration that is necessary to continue to expand safe and responsible development of domestic energy.”

Several strategies have been employed to meet the increased demands on BLM’s North Dakota Field Office. A North Dakota Focus Team was established to assess the needs of the field office and to make recommendations to the State Leadership Team. The field office also implemented a pilot program for electronic submission of an Application for Permit to Drill (APD), and began encouraging all operators to submit electronic APDs last spring. Not only does this increase timeliness for submittal, electronic APDs enable timely revisions and reviews and allow operators to track the status of their applications.

Interior-administered oil and gas leasing, exploration and production in North Dakota contributed $5.9 billion in total economic output to the state in 2012 and generated about 28,700 total jobs. Royalties from Indian lands totaled nearly $250 million last year, compared to $106.7 million in 2011 and $1.8 million in 2008. The BLM’s July oil and gas lease sale in the Bakken garnered nearly $50 million and generated a record bonus bid of $33,000 per acre.

For every $1 spent on operations and labor for the BLM’s North Dakota Field Office during FY 2012, a total of $121 was returned and shared between the U.S. Treasury, State of North Dakota, Three Affiliated Tribes, Turtle Mountain Tribe, and Individual Indian Mineral Owners.

Jewell also noted energy produced from all Interior lands in FY 2012 contributed $230 billion to the U.S. economy and supported 1.2 million jobs. That production included 626 million barrels of crude oil, 5 trillion cubic feet of natural gas, and 460 million tons of coal, according to the recently released U.S. Department of the Interior Economic Report for Fiscal Year 2012. The report showed that Department of the Interior’s overall activities contributed $371 billion to the U.S. economy in 2012, supporting 2.3 million jobs in outdoor recreation and tourism, energy development, grazing, timber harvesting and other areas.

This article is a repost, credit: US Department of the Interior, http://www.interior.gov/news/pressreleases/secretary-jewell-visits-north-dakotas-bakken-region.cfm.

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Interior Holds First-Ever Competitive Lease Sale for Renewable Energy in Federal Waters, Source: DOI

August 1, 2013 in Environment, EV News, Greentech, Wind

Historic Auction Leases Nearly 165,000 Acres Offshore Rhode Island and Massachusetts for Wind Energy Development, Advances President’s Climate Action Plan

Secretary Jewell greets applauding Interior Employees.  - Photo: Tami A. Heilemann - Office of Communications   Courtesy of DOI

Secretary Jewell greets applauding Interior Employees. – Photo: Tami A. Heilemann – Office of Communications
Courtesy of DOI

WASHINGTON, D.C. – As part of President Obama’s comprehensive plan to move our economy toward domestic clean energy sources and cut carbon pollution, Secretary of the Interior Sally Jewell and Bureau of Ocean Energy Management (BOEM) Director Tommy P. Beaudreau today (7-31-13) held the nation’s first-ever competitive lease sale for renewable energy in federal waters.

The provisional winner of today’s lease sale, which auctioned two leases for a Wind Energy Area of 164,750 acres offshore Rhode Island and Massachusetts for wind energy development, is Deepwater Wind New England, LLC. When built, these areas could generate enough combined energy to power more than one million homes.

“When you think about the enormous energy potential that Atlantic wind holds, this is a major milestone for our nation,” said Secretary Jewell. “A lot of collaboration and thoughtful planning went into getting to this point, and we’ll continue to employ that approach as we move forward up and down the coast to ensure that offshore wind energy is realized in the right way and in the right places. Offshore wind is an exciting new frontier that will help keep America competitive, and expand domestic energy production, all without increasing carbon pollution.”

The Wind Energy Area is located 9.2 nautical miles south of the Rhode Island coastline and has the potential to support 3,395 megawatts of wind generation. BOEM will hold its next competitive lease sale for offshore wind on Sept. 4, which will auction nearly 112,800 acres offshore Virginia, and is expected to announce additional auctions for Wind Energy Areas offshore Massachusetts, Maryland, and New Jersey later this year and in 2014.

Maps for these areas are available on BOEM’s website.

Today’s auction is the result of a coordinated strategic plan to accelerate the development of offshore wind resources that was unveiled in February 2011 by former Secretary of the Interior Ken Salazar and former Secretary of Energy Steven Chu. As part of a ‘Smart from the Start’ program for expediting commercial-scale wind energy on the federal Outer Continental Shelf, Interior identified Wind Energy Areas well suited for commercial development with minimal impacts to the environment and other important uses. Efforts to spur responsible development of this abundant renewable resource are part of a series of Administration actions to speed renewable energy development offshore and onshore by improving coordination with state, local and federal partners.

As part of President Obama’s comprehensive Climate Action Plan, he challenged Interior to re-double efforts on the renewable energy program by approving an additional 10,000 megawatts of renewable energy production on public lands and waters by 2020.

Since 2009, Interior has approved 46 wind, solar and geothermal utility-scale projects on public lands, including associated transmission corridors and infrastructure to connect to established power grids. When built, these projects could provide more than 12,700 megawatts – enough energy to power more than 4.4 million homes and support over 17,000 construction and operations jobs.

At the same time, under the Administration’s all-of-the-above energy strategy, domestic oil and gas production has grown each year President Obama has been in office, with domestic oil production currently higher than any time in two decades; natural gas production at its highest level ever; and renewable electricity generation from wind, solar, and geothermal sources having doubled. Combined with recent declines in oil consumption, foreign oil imports now account for less than 40 percent of the oil consumed in America – the lowest level since 1988.

“Each of these renewable energy lease sales are significant steps forward in the President’s all-of-the-above energy strategy and call for action on climate change,” said Director Beaudreau. “Harnessing the enormous potential of offshore wind will create jobs, increase our energy security and provide abundant sources of clean renewable power.”

BOEM auctioned the Wind Energy Area offshore Rhode Island and Massachusetts as two leases, referred to as the North Lease Area (Lease OCS-A0486) and the South Lease Area (Lease OCS-A0487). The North Lease Area consists of about 97,500 acres and the South Lease Area covers about 67,250 acres. For a map of the Wind Energy Area, click here. The sale received $3,838,288 in high bids. The auction lasted 1 day, consisting of 11 rounds before determining the provisional winner. In addition to Deepwater Wind New England, LLC, the following companies participated in the auction: Sea Breeze Energy, LLC; and US Wind Inc.

“Now that we have identified Deepwater Wind as the provisional winner of this auction, we look forward to executing the lease and reviewing their Site Assessment Plan for the lease area,” said Director Beaudreau.

Following the auction, the Attorney General, in consultation with the Federal Trade Commission, will have 30 days in which to complete an antitrust review of the auction. Shortly thereafter, BOEM will send unsigned copies of the lease form to the winning bidder, who will have 10 days to sign and return the lease, file required financial assurance, and pay the balance of the winning bid.

Each lease will have a preliminary term of 6 months in which to submit a Site Assessment Plan to BOEM for approval. A Site Assessment Plan describes the activities (e.g., installation of meteorological towers and buoys) a lessee plans to perform for the assessment of the wind resources and ocean conditions of its commercial lease.

After a Site Assessment Plan is approved, the lessee will have up to 4 and 1/2 years in which to submit a Construction and Operations Plan (COP) for approval, which provides a detailed plan for the construction and operation of a wind energy project on the lease. After the COP is approved, the lessee will have an operations term of 25 years.

For more information on what’s going on offshore Rhode Island and Massachusetts, visit BOEM’s website.

This article is a repost, credit: US Department of the Interior, http://www.doi.gov/index.cfm.

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Interior Announces Nation’s Second Offshore Wind Energy Lease Sale, Source: DOI

July 22, 2013 in Environment, EV News, Greentech, Wind

In September, BOEM will Auction Nearly 112,800 Acres Offshore Virginia for Wind Energy Development

Department of Interior Secretary Sally Jewell Photo courtesy of DOI

Department of Interior Secretary Sally Jewell
Photo courtesy of DOI

WASHINGTON, D.C. – As part of President Obama’s comprehensive plan to move our economy toward domestic clean energy sources and begin to slow the effects of climate change, Secretary of the Interior Sally Jewell and Bureau of Ocean Energy Management (BOEM) Director Tommy P. Beaudreau today announced that BOEM will hold its second competitive lease sale for renewable energy on the U.S. Outer Continental Shelf (OCS). The auction, scheduled to take place on Sept. 4, will offer nearly 112,800 acres offshore Virginia for commercial wind energy leasing.

In June, Secretary Jewell and Director Beaudreau announced the nation’s first wind energy lease sale for an area offshore Rhode Island and Massachusetts, which will be held on July 31.

“The competitive lease sale offshore Virginia will mark an important transition from planning to action when it comes to capturing the enormous clean energy potential offered by Atlantic wind,” said Jewell. “Responsible commercial wind energy development has the potential to create jobs, increase our energy security, and strengthen our nation’s competitiveness.”

Under the terms of the Final Sale Notice, the wind energy area offshore Virginia will be auctioned as a single lease. The area is located 23.5 nautical miles from the Virginia Beach coastline and has the potential to support more than 2,000 megawatts of wind generation – enough electricity to power approximately 700,000 homes. As part of President Obama’s comprehensive climate action plan, he challenged Interior to re-double efforts on the renewable energy program by approving an additional 10,000 megawatts of renewable energy production on public lands and waters by 2020.

The area, composed of 19 full OCS blocks and 13 sub-blocks, was selected after intensive work with the Commonwealth and stakeholders to avoid existing uses of the OCS offshore Virginia, including sensitive ecological habitat and shoals along the coast north of the mouth of the Chesapeake Bay, military training areas, marine vessel traffic, a dredge disposal site, and areas of concern specified by the National Aeronautics and Space Administration Goddard Space Flight Center’s Wallops Flight Facility. For a map of the Virginia wind energy area, click here.

In February, 2011 in Norfolk, Va., former Secretary of the Interior Ken Salazar and former Secretary of Energy Steven Chu unveiled a coordinated strategic plan to accelerate the development of offshore wind resources. As part of the ‘Smart from the Start’ program for expediting commercial-scale wind energy on the federal OCS, Interior has identified Wind Energy Areas to spur responsible development of this abundant renewable resource.

“This lease sale announcement today is the culmination of an extraordinarily collaborative effort with our federal, tribal, state and local government partners,” said Beaudreau. “With the help of key stakeholders, including the wind industry, maritime interests and conservation organizations, we have identified an area offshore Virginia that is well suited for commercial wind energy development and thoroughly reconciled with the environment and other important uses.”

The area available for auction is identical to the one announced in the Proposed Sale Notice that was published in the Federal Register on Dec. 3, 2012, for a 60-day public comment period. BOEM carefully considered public comments before developing the Final Sale Notice. The Proposed Sale Notice, public comments and BOEM’s responses can be viewed on BOEM’s website by clicking here.

BOEM will publish the Final Sale Notice in the Federal Register on July 23. The following companies are eligible to participate:

  • Apex Virginia Offshore Wind, LLC
  • Virginia Electric and Power Company (“Dominion Virginia Power”)
  • Energy Management, Inc.
  • EDF Renewable Development, Inc.
  • Fisherman’s Energy, LLC
  • IBERDROLA RENEWABLES, Inc.
  • Sea Breeze Energy, LLC
  • Orisol Energy U.S., Inc.

“After careful review, BOEM has determined that these companies are legally, technically and financially qualified to participate in the upcoming lease sale,” added Beaudreau. “We applaud their leadership and look forward to overseeing a fair and competitive leasing process.”

In addition to the list of eligible bidders, the Final Sale Notice contains specific information about deadlines and milestones for bidders; the area available for leasing; lease provisions and conditions; auction details; criteria for evaluating bids; award procedures; and lease execution and other information.

The sale is being conducted using an online bidding system and follows an ‘‘ascending clock’’ auction format. BOEM will set an initial asking price for the lease area and increase that price incrementally based on the number of active bidders in each round until no more than a single active bidder remains in the auction.

For more information on renewable energy efforts offshore Virginia, including the Final sale Notice, visit BOEM’s website by clicking here.

This article is a repost, credit: US Department of the Interior, http://www.interior.gov/news/pressreleases/interior-announces-nations-second-offshore-wind-renewable-energy-lease-sale.cfm.