WASHINGTON — Royal Dutch Shell is fighting to preserve U.S. drilling rights in Arctic waters three months after halting exploration indefinitely there because it failed to find meaningful oil or natural gas deposits.
Europe’s largest oil company filed a notice of appeal Tuesday challenging the Interior Department’s Oct. 29 rejection of the company’s requests to stop the clock on Arctic oil and gas leases that otherwise expire between 2017 and 2020. The dispute is expected to undergo an administrative review by the Interior Board of Land Appeals, possibly delaying a final judgment until after a new president takes office.
“We believe suspensions are warranted for reasons outlined in our original request,” Shell spokesman Curtis Smith said. “The appeal does not affect our recent decision to stop exploration offshore Alaska for the foreseeable future.”
Shell’s request comes as other companies have abandoned Arctic oil exploration that is bitterly opposed by Greenpeace, Oceana, Sierra Club and other environmental groups that say the drilling risks damaging a fragile ecosystem. The Obama administration also has backed away from selling new leases and canceled two planned auctions, citing low industry interest.