Tighter rules for Chevron drill applauded

A regulator's decision to keep a closer watch on an unprecedented deepsea drill to find oil off Newfoundland's east coast is a sensible move, an environmental advocate says.

The Canada-Newfoundland and Labrador Offshore Petroleum Board (CNLOPB) said Thursday it will use greater oversight in managing Chevron's exploration for oil in the Orphan Basin on the Grand Banks. The company started sinking a well about 2,500 metres below the ocean surface, in the deepest drill in Canadian history.

The CNLOPB, a federal-provincial board that holds regulatory control, made the new moves which will include more frequent inspections in light of the massive oil spill in the Gulf of Mexico.

Craig Stewart, an Ottawa-based director with the World Wildlife Fund, said the CNLOPB made the right decision.

"This risky rig is finally getting the higher level of oversight that it, frankly, needs," Stewart said in an interview Friday, referring to the rig Stena Carron that is undertaking the exploratory drill.

"It's a really good step by the Offshore Petroleum Board."

All of the offshore oil fields in production on the Grand Banks are in a southern, more accessible basin. The Orphan Basin has been touted as having high potential for a commercial find, but companies will have to drill very deep to find it.

Audits to happen every three to four weeks

The CNLOPB will hire a crew to audit Chevron's work in the Orphan Basin, with meetings to be held every two weeks to review data.

"We're also going to be increasing the frequency of audits and inspections," said Sean Kelly, public relations manager with the board.

Kelly said audits and inspections will happen every three to four weeks. Normally, these would be done every three to four months.

As well, Chevron will have to take something of a time-out from drilling before they hit target areas, and the company will have to demonstrate that everything is in place before it can proceed.

"The operators here are responsible operators and for us to do this is an exceptional measure but the company [has] agreed to co-operate with us on this," Kelly said.

Stewart said the board's decision will mean greater work and expense for Chevron, but the effort will be worth it.

"Finally, it's getting the attention it deserves," Stewart said. "It's going to be a bit costly for them, but it's the appropriate measure."