"Energy companies, many of them now bankrupt, have been allowed to abandon infrastructure in the Gulf of Mexico without penalty"
"A Houston-based energy company is asking a federal bankruptcy court for permission to walk away from its aging infrastructure in the Gulf of Mexico. Fieldwood Energy is attempting to shift responsibility for removing 1,715 wells, 276 platforms and 281 pipelines to oil and gas companies that previously held leases for the same area, according to court documents.
Under existing federal regulations, companies remain liable for decommissioning infrastructure on areas of federally owned seafloor where they previously produced oil and gas. But the former holders of the Fieldwood leases — including Chevron, BP and Shell — are attempting to get out of that obligation because of the cost, estimated at $9 billion.
It’s a familiar story. A recent U.S. Government Accountability Office report found that oil and gas companies have been allowed to abandon 97 percent of offshore pipelines in place without penalty. The abandoned infrastructure poses environmental concerns, but it has also created another problem: The pipelines are blocking access to the sand that Louisiana and other gulf states desperately need to rebuild their coastlines in the face of rising seas."
