PUBLIC NOTICE OF OUTER CONTINENTAL SHELF AIR QUALITY PERMITS,
PUBLIC HEARING, AND PUBLIC COMMENT PERIOD

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, REGION 10
1200 SIXTH AVENUE (AWT-107)
SEATTLE , WASHINGTON 98101

DEADLINE TO SUBMIT COMMENTS: May 12, 2007

EPA Action

The United States Environmental Protection Agency (EPA) proposes to issue two permits to Shell Offshore, Inc. (Shell), 3601 C Street, Suite 1334 Anchorage, Alaska 99503 to allow Shell to conduct exploratory drilling in the Beaufort Sea. One permit would authorize Shell to deploy and operate the Kulluk drilling unit and associated support vessels in the outer continental shelf (OCS) near-shore waters of the Beaufort Sea at locations and during time periods approved by the Minerals Management Service (MMS). The other permit would authorize Shell to deploy and operate the Frontier Discoverer drill ship and associated support vessels in the OCS near-shore waters of the Beaufort Sea at locations and during time periods approved by the MMS.

Pursuant to 18 AAC 50.502(c)(2) of the State of Alaska requirements applicable to OCS sources, Shell is required to obtain from EPA a minor permit for each OCS source prior to beginning the drilling operation. Each permit ensures that the federal and state ambient air quality standards will be protected and establishes owner requested limits to avoid major new source review. The non-guideline ISC-PRIME modeling system was employed to predict downwind air pollutant concentrations. The approval actions are for preconstruction air quality permits issued pursuant to the Clean Air Act, Title 40 of the Code of Federal Regulations, Part 55 (40 CFR Part 55), and 40 CFR Part 124.

The proposed exploratory drilling activity would be located on the OCS and within 25 miles of Alaska’s seaward boundary. Under the provisions of 40 CFR Part 55, it is EPA’s responsibility to issue permits to prospective OCS sources and implement specific state and local requirements applicable to OCS sources located within 25 miles of a state’s seaward boundaries. Those state and local provisions are incorporated by reference into 40 CFR Part 55.

Public Comment Period

The public comment period for the proposed actions will open Thursday, April 5, 2007 and close May 12, 2007. Any interested person may submit written comments on the proposed permits during the public comment period. All comments will be considered in making the final decision and will be responded to by EPA. All comments received during the public comment period will be included in the docket and will be available to the public. All written statements must be post-marked by May 12, 2007. Comments should be submitted to Natasha Greaves at the following address: EPA Region 10, Office of Air, Waste and Toxics (AWT-107), 1200 Sixth Avenue, Seattle, WA 98101, or by email to R10-Public_Comments@epa.gov

Persons who submit comments to EPA should state:

1. Their interest in the draft permit;

2. The action they wish EPA to take, including specific references to the portions of the draft permit they believe should be changed, if any; and

3. The reasons supporting their position, stated with sufficient specificity as to allow EPA to evaluate the merits of the position.

Public Hearings

A public hearing will occur 6:30 p.m. May 8, 2007, at the Nuiqsut Community Center, 2230 2nd Avenue, Nuiqsut, Alaska 99789. Additional public hearings may be set up in Barrow and Kaktovik the week of May 7, 2007, if sufficient interest is expressed. If you are interested in scheduling a public hearing in Barrow or Kaktovik , please call Ms. Greaves at (206) 553-7079, or email greaves.natasha@epa.gov. Any person may submit oral or written statements and data concerning the draft permit during the public hearing, and a written transcript of the hearing will be made available to the public. Ms. Greaves can be contacted by writing to EPA Region 10, Office of Air, Waste and Toxics (AWT-107), 1200 Sixth Avenue, Seattle, WA 98101; or call (206) 553-7079, or email greaves.natasha@epa.gov. The EPA reserves the right to cancel the public hearing in the event there is insignificant interest expressed in participating at such public hearing. It is not necessary to attend or call into the public hearing if you wish to submit written comments only.

Preparing Yourself to Provide Input to EPA

All data submitted by the applicant is available as part of the docket. The docket includes the two permit applications, the two draft permits, and the two technical analysis reports/statements of basis. Each technical analysis report provides EPA’s evaluation of the corresponding application, the derivation of the terms in the corresponding permit, and a complete listing of documents in the administrative record. The docket is available for inspection in the following offices in Alaska:

The docket may also be viewed from 9:00 a.m. to 12:00 p.m. and from 1:00 p.m. to 2:30 p.m., Monday through Friday, at EPA Region 10 Library, 1200 Sixth Avenue, Seattle, Washington.

Electronic copies of the permit applications, public notice, draft permits, and two technical analysis reports/statements of basis can be obtained at no cost from EPA’s web site http://yosemite.epa.gov/R10/Airpage.nsf/webpage/Outer+Continental+Shelf+(OCS) or by contacting Natasha Greaves as directed above. These materials (except the permit applications) can also be obtained at no cost from the Alaska Department of Environmental Conservation’s air permits public notice website http://www.dec.state.ak.us/air/ap/calendar.htm