Daily Archives: August 10, 2022

New York Announces Third Solicitation for at Least 2,000 MW of Offshore Wind – JD Supra

Posted: August 10, 2022 at 1:32 am

Governor Kathy Hochul announced the release of New Yorks third competitive Offshore Wind Renewable Energy Certificate (OREC) solicitation on July 27, 2022. Through the solicitation, the New York State Energy Research and Development Authority (NYSERDA) aims to procure at least 2,000 MW, and up to 4,640 MW, of offshore wind energy, enough to power 1.5 million New York homes. Under the New York Climate Leadership and Community Protection Act (CLCPA), New York set a resource target for offshore wind of 9 GW by 2035. The six leases recently awarded in the New York Bight alone are estimated to produce at least 5.6 GW worth of power, and it is expected that multiple New York Bight lessees will bid in New Yorks OREC solicitation.

NYSERDAs previous solicitations include contracts for 1,700 MW of offshore capacity from Equinor Wind US LLC and Sunrise Wind LLC in 2019 and 2,500 MW of offshore capacity from Empire Offshore Wind LLC and Beacon Wind LLC in 2020. The 2020 procurement also secured significant investments, totaling $644 million, in port infrastructure and local manufacturing.

A draft of this solicitation (ORECRFP22-1) was released in March 2022 for public comment, and a follow-up request for information was released in May 2022. In response, NYSERDA received over 1,300 comments from various stakeholders. The 2022 solicitation reflects consideration of these comments and includes several updates from the previous two solicitations. These updates include the following:

NYSERDA has also committed to awarding evaluation points for plans that repurpose existing downstate fossil-based electric generation infrastructure, and for projects that create economic benefits through developing energy storage and other clean energy and decarbonization investments, including pilot and demonstration projects for innovative storage projects.

Eligibility to participate in the solicitation is limited to U.S. offshore wind projects, with a lease from Bureau of Ocean Energy Management (BOEM), operational after January 2015, that demonstrate delivery of electricity into New York. Proposers must also (1) include commitments to negotiate project labor agreements, labor peace agreements, and prevailing wages; (2) submit environmental and fisheries mitigation plans minimizing impacts to fisheries and the environment; (3) participate in New York states offshore wind environmental, commercial fishing, jobs and supply chain, and maritime technical working groups; (4) consult with relevant state agencies around fishing, wildlife, and the environment; (5) make environmental data collected during site assessment publicly available; (6) implement lighting controls to minimize nighttime visibility; and (7) otherwise minimize visual impacts.

NYSERDA will use a scoring system to award contracts based on three components, including (1) project viability (10 points)a non-price evaluation; (2) New York economic benefits (20 points)a non-price evaluation; and (3) offer prices (70 points)a price evaluation. The project viability component assesses whether the proposed project is ready to deploy, technically and logistically feasible, sensitive to the needs of ocean users, and the goals of the CLCPA have been considered. Under the second component, New York economic benefits, proposals will be scored based on their investments into New Yorks economy. Under the third and highest value scored component, proposals will be scored based on their offer pricing structure and price evaluation. As part of the submission, developers must submit (1) a base proposal (which must use either the index OREC or fixed OREC pricing structure) and (2) a stand-alone proposal (which must request no New York state funding and cannot include a SCIP). Stand-alone proposals will be considered after NYSERDA completes the selection of proposals that include SCIPs. Proposers can submit an uncapped number of alternate proposals.

As the NYSERDA solicitation is moving quickly, developers need to be actively engaging with various stakeholders, including underserved communities, fisheries, and environmental groups, and demonstrating this engagement in their proposals. Developers recently awarded leases in the New York Bight also need to pay attention to the intersection between these stakeholder engagement requirements and BOEMs similar lease stipulations requiring engagement with fisheries, coastal communities, environmental and nonprofit groups, and underserved communities, among others, with an initial progress report detailing these efforts due on November 1. For example, BOEMs draft Fisheries Mitigation Guidance will factor in as companies develop their plan for NYSERDAs requirements under Appendix D of the solicitation. Developers must set forth their plans to communicate with commercial and recreational fishermen, a similar requirement to the fisheries communication plan required by BOEM in its lease stipulation and due in advance of the NYSERDA bid deadline. As BOEM moves forward on its Programmatic Environmental Impact Statement for offshore wind energy development in the New York Bight, BOEM should also be considering the impact of the NYSERDA bid within its analysis and the programmatic mitigation measures considered.

Moreover, developers must take note of BOEMs statement that it may condition approval of a construction and operations plan on the incorporation of cable corridors, regional transmission systems, meshed systems, and other mechanisms into the plan. Proposers therefore should consider whether incorporating HDVC technology and a meshed ready grid, as required for the OREC solicitation, will also help them achieve BOEMs ultimate approval of their project.

NYSERDA will host a conference via webinar on August 23, 2022, to address key elements from the request for proposal (RFP) and to provide further information to potential proposers. Proposers can submit written questions through September 16, 2022, and NYSERDA will respond to them in October. Proposers must provide notice of their intent to propose by December 1, 2022, and must register for the NYSERDA Portal by December 15, 2022. Proposals are due December 22, 2022, and NYSERDA expects to award and execute contracts in the first and second quarter of 2023, respectively.

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New York Announces Third Solicitation for at Least 2,000 MW of Offshore Wind - JD Supra

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Ships wait offshore in bottleneck at Port of Savannah – GPB News

Posted: at 1:32 am

Georgia Ports Authority officials say an offshore bottleneck at the Port of Savannah has peaked.

Incoming holiday cargo and diversions from other ports have caused record volumes and kept ships offshore.

GPA Executive Director Griff Lynch said more than 40 ships were waiting to come into the port Tuesday morning.

"The vessels have plateaued and we have that under control," Lynch said. "We've invested a significant amount of money into creating new capacity on our facilities."

The authority has about $1 billion in projects underway to increase capacity, including new berths and cranes on the ship side.And on land, the port recently completed a massive rail upgrade and announced earlier opening hours for truckers.

It's all designed to ease the bottleneck, which exacerbates supply chain issues throughout the economy.

"This is unprecedented volume," Lynch said. "We just need to continue to build our facilities to increase our capacity to adjust to the new level of volume."

On Monday, GPA announced that July cargo traffic was up 18% over July last year, making it the fastest-ever start to a fiscal year at the Port of Savannah.

The Port of Savannah handled 530,800 twenty-foot equivalent units, or TEUs, a measure of container cargo, last month.

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Senate bill passage buoys offshore wind developers and oil – WorkBoat

Posted: at 1:32 am

The U.S. Senates passage of the 700-plus-page, omnibus economic and energy Inflation Reduction Act includes $369 billion to advance clean energy programs. This includes offshore wind development and pressing a U.S. transition to electrifying transportation and residential energy use.

The bill now up for approval by the House of Representatives could reduce U.S. carbon emissions by about 40% by 2030, according to Senate Majority Leader Charles Schumer, D-N.Y., a key architect of the narrowly approved (51-50) measure.

It includes $80 million in tax credits and other consumer incentives to encourage people to buy electric vehicles, energy-efficient induction stovetops, home heat pump systems and rooftop solar panels. A much bigger chunk at $260 billion in clean-energy tax credits is targeted at helping renewable energy development grow, from manufacturing components in the U.S. to building projects like offshore wind turbine arrays.

Offshore wind promoters say the legislation would be a big win for them. Extending tax credits for years will help wind developers nervous about the escalating costs of raw materials. The still-developing U.S. offshore wind industry is watching Virginia state utility regulators concerns about Dominion Energys massive Coastal Virginia Offshore Wind project, the biggest to date, which won state approval Friday.

The Senates passage of the Inflation Reduction Act is a watershed moment in Americas renewable energy transition. This historic legislative package sends a message to the world that the U.S. is serious about bolstering supply chain resiliency, increasing American energy security, and reaching our ambitious goal to deploy 30 gigawatts of offshore wind power by 2030, Liz Burdock, president and CEO of the nonprofit advocacy group Business Network for Offshore Wind, said in a statement.

The bill allots $40 billion for investment, including shipbuilding for wind power, that will unleash the vast potential of offshore wind andlocalize a supply chain on American shores creating thousands of good-paying jobs, said Burdock.

Compromises forced on Democratic congressional leaders by Sen. Joe Manchin, D-W. Va., ensured the legislation can allow continuing offshore development of oil and gas production. Environmental groups lobbied the Biden administration hard to prevent it.

But in the end, the package had the all of the above approach to energy taken by the Obama administration a decade before, when it accepted fossil fuel development even while promoting offshore wind potential. Opponents of offshore drilling were unhappy.

Those offshore drilling provisions that benefit the fossil fuel industry ... place an unfair burden on Gulf of Mexico and Alaska communities, said Beth Lowell, the environmental group Oceanas U.S. vice president.

Mandated offshore drilling flies in the face of President Bidens campaign commitment to end new leasing for dirty and dangerous offshore drilling," she said. "New offshore drilling leases compromise efforts to address the climate crisis and wont help lower gas prices. President Biden must reaffirm and uphold hispromise to end new oil and gas leasingby finalizing a five-year program with no new lease sales.

Offshore industry operators saw plenty of opportunity in both old and new energy sectors.

We extend our thanks to Senator Manchin for his leadership in securing an all-of-the-above energy package that boosts offshore oil and gas, offshore wind, and carbon capture and storage all key priorities for the offshore sector and for long-term American energy security, said Erik Milito, president of the National Ocean Industries Association.

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Diamond Offshore Reports Second Quarter 2022 Results and Announces $610 Million in New Contract Awards – Yahoo Finance

Posted: at 1:32 am

Ocean GreatWhite Awarded Contract

Three other Rigs Secure Additional Backlog

18% Increase in Contract Drilling Revenue and $26m Increase in EBITDA

HOUSTON, Aug. 9, 2022 /PRNewswire/ -- Diamond Offshore Drilling, Inc. (NYSE: DO) today reported the following results for the second quarter of 2022:

Three Months Ended

Thousands of dollars, except per share data

June 30, 2022

March 31, 2022

Total revenues

$

205,702

$

186,239

Operating loss

(9,763)

(33,916)

Adjusted EBITDA

15,245

(11,008)

Net loss

(21,929)

(34,354)

Loss per diluted share

$

(0.22)

$

(0.34)

Diamond Offshore also announced contract awards forthe harsh environment semisubmersible Ocean GreatWhite in the U.K. North Sea, the semisubmersible Ocean Apex in Australia, and two 7th generation drillships - the Ocean BlackHornet and a Diamond-managed rig - in the U.S. Gulf of Mexico.These new contracts added approximately $610 million of backlog for the Company. The new contracts are in addition to the $995 million of backlog reported as of July 1, 2022.

Bernie Wolford, Jr., President and Chief Executive Officer, commented, "We are pleased to announce these significant backlog additions. The contract for the Ocean GreatWhite is a testament to the capabilities of this high-specification harsh environment asset and comes at a time when energy security and longer-term demand in the sector are increasingly visible. With the rig now contracted, we will have three assets working in the UK sector of the North Sea, allowing us to better serve our customer base while growing our presence in an established market."

The Ocean GreatWhite was awarded five wells, with an estimated duration of 300 days. Contract commencement is expected in the first quarter of 2023. Total contract value of the committed scope is approximately $80 million. The contract also includes priced options for up to eight additional wells.

The Ocean Apex has been awarded three new contracts for work on the Northwest Shelf of Australia. The first new award commences in the second quarter of 2023, with an estimated duration of 75 days. The second award is also for an estimated duration of 75 days, commencing in direct continuation of the previous award. The third award has an estimated duration of 150 days with a commencement in 2024. The combined awards add approximately $90 million of backlog to the Ocean Apex. Wolford added, "A potential fourth new contract currently under negotiation would fill out the remaining availability in 2023, and combined, keep the rig fully contracted until late 2024."

Story continues

The Ocean BlackHornet has secured a two-year extension with its current client in the U.S. Gulf of Mexico in direct continuation of the rig's current term. The two-year extension will keep the rig working until early 2025. Total contract value for the extension is approximately $290 million.

A Diamond-managed rig has been extended by its current client for work in the U.S. Gulf of Mexico for an additional one-year term in direct continuation of the rig's current term. The contract value for this extension is approximately $150 million.

Wolford noted, "With improved dayrates and approximately 75% of 2023 marketed capacity contracted, we have an opportunity to earn considerably higher margins in 2023. I would like to thank everyone involved in securing this backlog, as these awards are a testament to the class-leading Diamond Offshore brand, our unwavering commitment to HSE, and the hard-working people who contribute to the Diamond Difference."

Second Quarter Results

Contract drilling revenue for the second quarter totaled $177 million compared to $150 million in the first quarter of 2022. The increase in revenue was primarily driven by the Ocean Apex returning to active service under a new contract that commenced in May 2022, completion of shipyard stays for the Ocean Endeavor and Ocean Patriot, and a full quarter of drilling operations for the Auriga. Contract drilling expense for the second quarter was relatively flat at $142 million compared to $145 million in the first quarter of 2022. During the quarter, the Company continued to perform in an exceptional manner, achieving revenue efficiency of 96.3%.

Operational Highlights

After eight years of continuous and exceptional performance, the Ocean BlackHawk completed its inaugural contract in the U.S. Gulf of Mexico. The rig has now mobilized to Senegal to join the Ocean BlackRhino. The Ocean Apex returned to work in May and the Ocean Monarch completed its contract and was cold stacked.

Notably, three of the Company's rigs reached significant safety milestones this quarter, each achieving three years without a recordable incident.

Liquidity and Outlook

As of June 30, 2022, Diamond Offshore had total liquidity of $339 million, comprised of $43 million of unrestricted cash and $296 million of available capacity on its revolving credit facility and delayed draw First Lien Notes.

Commenting on the outlook for the offshore drilling market, Wolford concluded, "The market continues to improve, as reflected by our recent fixtures for both semisubmersibles and drillships across multiple regions. Visible demand, energy security concerns, and tight supply could lead to sustainable demand for our drilling services for years to come."

CONFERENCE CALL

A conference call to discuss Diamond Offshore's earnings results has been scheduled for 8:00 a.m. CDT on Wednesday, August 10, 2022. A live webcast of the call will be available online on the Company's website, http://www.diamondoffshore.com. Participants who want to join the call via telephone or want to participate in the question and answer session may register here to receive the dial-in numbers and unique PIN to access the call. An online replay will also be available on http://www.diamondoffshore.com following the call.

ABOUT DIAMOND OFFSHORE

Diamond Offshore is a leader in offshore drilling, providing innovation, thought leadership and contract drilling services to solve complex deepwater challenges around the globe. Additional information and access to the Company's SEC filings are available at http://www.diamondoffshore.com/.

FORWARD-LOOKING STATEMENTS

Statements contained in this press release that are not historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, any statement that may project, indicate or imply future results, events, performance or achievements, including statements relating to future financial results; future recovery in the offshore contract drilling industry; expectations regarding the Company's plans, strategies and opportunities; expectations regarding the Company's business or financial outlook; future borrowing capacity and liquidity; expected utilization, dayrates, revenues, operating expenses, rig commitments and availability, cash flows, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the effect, impact, potential duration and other implications of the ongoing COVID-19 pandemic; the impact of our emergence from bankruptcy; the offshore drilling market, including supply and demand, customer drilling programs, repricings, stacking of rigs, effects of new rigs on the market and effect of the volatility of commodity prices; expected work commitments, awards and contracts; future operations; increasing regulatory complexity; general market, business and industry conditions, trends and outlook; and general political conditions, including political tensions, conflicts and war. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by management of the Company. A discussion of certain of the risk factors and other considerations that could materially impact these matters as well as the Company's overall business and financial performance can be found in Item 1A "Risk Factors" in the Company's most recent annual report on Form 10-K and the Company's other reports filed with the Securities and Exchange Commission, and readers of this press release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company's website at http://www.diamondoffshore.com. These risk factors include, among others, risks associated with worldwide demand for drilling services, levels of activity in the oil and gas industry, renewing or replacing expired or terminated contracts, contract cancellations and terminations, maintenance and realization of backlog, competition and industry fleet capacity, impairments and retirements, operating risks, litigation and disputes, permits and approvals for drilling operations, the COVID-19 pandemic and related disruptions to the global economy, supply chain and normal business operations across sectors and countries, changes in tax laws and rates, regulatory initiatives and compliance with governmental regulations, casualty losses, and various other factors, many of which are beyond the Company's control. Given these risk factors and other considerations, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based.

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

Three Months Ended

June 30,

March 31,

2022

2022

Revenues:

Contract drilling

$

176,879

$

150,252

Revenues related to reimbursable expenses

28,823

35,987

Total revenues

205,702

186,239

Operating expenses:

Contract drilling, excluding depreciation

142,150

144,902

Reimbursable expenses

28,554

35,613

Depreciation

25,693

26,952

General and administrative

19,753

16,732

Gain on disposition of assets

(685)

(4,044)

Total operating expenses

215,465

220,155

Operating loss

(9,763)

(33,916)

Other income (expense):

Interest income

1

Interest expense

(10,103)

(8,325)

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Testing One, Two: RadioIQ Gets Up Close with First Offshore Wind Turbines – WVTF

Posted: at 1:32 am

Setting out from a dock off Virginia Beach, passengers on board the Rudee Angler couldnt even see the test turbines even when one blade stretched 620 feet up. Dominion spokesman Jeremy Slayton was not surprised.

On a picture-perfect, super clear day at the right elevation you may be able to make them out from shore," he said. "If youre standing on the beach, you wont be able to see them."

But the utility has been watching those turbines for nearly two years. John Larson, Dominions director of public policy, has visited 21 times.

Obviously wind is new to us," he explains. "Its a great way to learn on two turbines, before you have 176 you need to maintain.

The first thing theyve concluded is that these modern windmills work really well. The next generation of turbines will be even taller able to power 660,000 homes, and they can likely withstand winds of 150 miles per hour. .

We looked at 94,000 storms the recorded history of this area, and they can go up to a category 3 hurricane," Larson says. "Keep in mind that offshore wind started in the North Sea, which has just tremendous seas and winds on a pretty constant basis.

One reason for their resilience the blades are designed to tilt relative to the wind.

At a little over 60 miles an hour the turbine will yaw or rotate to reduce load, and the blades are able to be feathered," he says. Comparing it to someone putting their hand through the window of a moving car he adds, "Theres pressure, but if you turn your hand horizontal and flat, theres almost no pressure on it.

From the test turbines, observers also concluded construction did not disturb wildlife.

We recently saw three loggerhead sea turtles," says Taryn Paul a naturalist aboard the rudeee Angler. "We also saw about eight hammerhead sharks and two manta rays feeding by the wind turbines."

Dominions Jeremy Slayton says the turbine foundations, surrounded by boulders, serve as artificial reefs where fish can shelter.

It attracts smaller fish, and the smaller fish attract bigger fish and bigger fish, so its a haven for fishermen.

And there is no sign that construction had an impact on marine mammals whales, dolphins and seals. Larson says builders were able to create a curtain of bubbles that minimized the sound of piles being driven into the ocean floor.

We put two walls of bubbles down to look at reducing the aquatic signature of that pile driving. It actually reduced it significantly, so that was a good lesson learned for us, the industry and all the regulators about how to mitigate sounds so that you dont distract any type of marine life.

That said, Dominion will not be installing foundations when endangered North Atlantic Wright whales are nearby.

Their migration period runs from October/November until May, up and down the coast, so our installation will only take place from May 1 through the end of October, Larson says.

Marine mammals, he adds, are curious creatures. If they hear something, theyre likely to investigate, and Dominion doesnt want to disturb their migration.

Work on the 150-square-mile wind farm is set to begin in 2024 when the utility completes construction of a special vessel used to install turbines. Slayton says the $500 million craft had to be built here in the U.S. to comply with federal regulations.

It will be the first Jones Act-compliant offshore wind turbine installation vessel, which is really important to the offshore wind supply chain in the U.S. Itll be used in the Northeast on two projects up there before we use it to install our turbines.

Dominion hopes to finish by 2026, permits permitting. Getting the paperwork past federal regulators was, Larson says, another learning experience.

Once the turbines are up and running, they will probably be most productive in the fall, winter and spring.

Think about the dog days of summer when you just wish that wind would blow and cool you off," Larson says. "The wind is not going to be blowing out here, and thats why having a diverse portfolio that includes solar is great, because our solar irradiation is very good in the summer in Virginia.

Dominion claims that by 2030 the Coastal Virginia Offshore Wind Park or C-VOW will lower carbon emissions by 55%. Meanwhile, Larson says, Virginia is building a new industry around offshore wind anticipating creation of 5,000 jobs building, installing and maintaining turbines. Some consumers worry that the $9.8 billion project could boost monthly charges for residential customers beyond the projected increase of about $5- $14 a month. In approving the project, the state put new requirements on Dominion and outlined situations where shareholders or the legislature might chip in.

This report, provided byVirginia Public Radio, was made possible with support from theVirginia Education Association.

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How India Is Aiming To Lure Back Offshore Production With New 30% Cash Incentive – Deadline

Posted: at 1:32 am

India has always been a popular destination for international productions, hosting everything from European independent films and British series, most recently ITVs Beecham House and Netflix/BBCs A Suitable Boy, to studio movies like Christopher Nolans Tenet and Netflixs Chris Hemsworth-starrer Extraction.

In addition to the countrys oft-touted attractions a skilled workforce, low costs, stunning landscapes and historical monuments it also boasts a rich canon of English-language, India-set literature that the story-hungry streamers have been plundering in recent years. Netflixs A Suitable Boy and The White Tiger, Apple TV+s Shantaram and HBOs upcoming seven-part series A Fine Balance, are all based on India-themed novels.

But the country has been pretty much off limits during the pandemic. It had a disruptive although mostly manageable first wave of Covid in 2020, which nonetheless deterred some international shoots, before shocking the world with a devastating second wave and massive death toll that erupted in March/April 2021.

That outbreak hit more than one production. Shantaram, starring Charlie Hunnam as an Australian prison escapee hiding in a Mumbai slum, opted to move to Thailand in mid-2021, after shooting briefly in India in late 2020, due to the worsening Covid situation. The fifth Indiana Jones film was already deep into prepping in Rajasthan when the second wave hit, forcing the production to do an about turn and move to Morocco.

Now Covid is under control and the population vaccinated, India is back open and ready for business, but this time with a few sweeteners. At this years Cannes film festival, Indias Information & Broadcasting (I&B) Ministry finally announced the countrys long-awaited incentive scheme, offering a 30% cash rebate for international productions either shooting or conducting post-production in India.

Getting incentivized

Managed by Indias Film Facilitation Office (FFO), the incentive will reimburse up to 30% of qualifying production expenditure (QPE) up to a maximum of INR20m ($260,000). An additional 5% is available, up to a maximum of INR5m ($65,000), for productions employing more than 15% or more Indian crew.

To be eligible, productions must first be approved to shoot in India by the I&B Ministry, then spend a minimum INR25m ($325,000) in the country. There is no minimum spend for documentaries or films recognized as official co-productions under one of Indias 15 treaties.

The applicant must be an India-based production services company responsible for all production-related expenditure on behalf of the international producer. Before shooting starts, they can apply for an interim approval certificate, then apply for final approval within 90 days of wrapping. Disbursement is 85% after a successful evaluation and audit with the remaining 15% paid out when the FFO receives a competed copy of the film.

Its an encouraging first step, especially as there was nothing available on a national level before, says Dileep Singh Rathore of production services company On The Road India, which handled Tenets Mumbai shoot before the pandemic. Some of Indias 36 states offer small amounts of cash rebate and other incentives, but these schemes are mostly used by local productions.

Deborah Benattar of La Fabrique Films, which handled the Indian shoot of Swiss production And Tomorrow We Will Be Dead in early 2020, and more recently France-Italy-Canada co-production The Braid (La Tresse), says: This is very good news for us as some projects that were looking for the final piece of financing may be able to come to India much more quickly because of these incentives.

Post Covid landscape

Luckily for India, production has already started to return, despite an Omicron surge in January, that like many other countries had much less impact due to high rates of vaccination. Benattar worked on The Braid in March and April this year: We were a little nervous in January, but decided to go ahead because we were working with a little girl, so couldnt wait in case she changed, and needed to shoot before the monsoon started [Indias monsoon affects production from June onwards]. It was a complicated shoot because we were filming in three railway stations, but we managed very well.

Its understood that A Fine Balance, directed by Ritesh Batra (The Lunchbox) and produced by Blueprint Pictures and Northwood Entertainment, has already started prepping in India, with India Take One Productions handling production services.

Other projects expected to be heading to India in the future include an Extraction sequel for Netflix, again starring Hemsworth and produced by the Russo brothers, and Amazon Studios Secret Daughter, directed by Anthony Chen and starring Priyanka Chopra Jonas and Sienna Miller.

But these are all projects that had been eyeing India long before the announcement of the incentive, which the FFO is hoping will bring a fresh wave of productions. Any international production that has been granted permission to shoot in India from April 1, 2022, onwards is eligible for the incentive. While no paperwork has been submitted so far, several line producers say theyre planning to apply. Ill try with whatever project I get, because I want to see how it works, says Benattar, who is currently in talks to handle features from Belgium, France and Switzerland.

As the amount of rebate available is capped at $325,000, its unlikely to move the dial for studios movies and high-end TV, which will shoot in India anyway if they are local stories that require hard-to-cheat locations. India rarely stands in for other countries, except for neighbouring South Asian nations that are less secure or not as experienced in handling offshore production, such as Pakistan (A Mighty Heart, And Tomorrow We Will Be Dead) and Bangladesh (Extraction).

But line producers say the incentive could make a big difference for independent projects, especially at a time when budgets are rising more than ever due to the global production boom (India has also been hit by post-pandemic inflation, although costs are still much lower than those in the US and Europe). One of the first projects to apply will be Australian production The Laugh Of Lakshmi, produced by John Maynard and directed by S. Shakthidharan.

Partly set in Sri Lanka, which is currently rocked by social unrest and economic crisis, the film will shoot in India and Sydney from early 2023. Incentives create opportunities for cast and creatives to flourish outside the studio system. This new incentive will bring forward stories that were unthinkable until now, says Rakasree Basu of Frames Per Second Films, which is providing production services for the film. Sri Lankan filmmaker Prasanna Vithanage is also on board as an advisor.

The small print

But of course, the devil is always in the details and line producers are still figuring out how the incentive will work in practice what exactly is included in QPE, how each project will be assessed and how long the cash rebate will take to come through.

One item that is definitely not included in QPE is Indias Goods and Services Tax (GST), the countrys equivalent of VAT or sales tax, which divides most items commonly found in a film budget into five tax rates (many items at 18%, transport at 5%, five-star hotels at 28%).

Introduced in 2017, the GST is a vastly more streamlined system than Indias previous maze of state-level and national taxes, and in theory offshore productions can claim at least a partial GST refund, but the process can be slow or stall altogether. Some producers have called on the government to exempt incoming productions from GST. Others want to see the refund process improved. But tax is overseen by the Ministry of Finance, while film and TV production is under the I&B Ministry. So its complicated.

Theres also the issue of script approval. No project can shoot without the I&B Ministry examining the script, and like many Asian countries, India has become much more sensitive of late. The ministry advises that negative comments on Indian culture, religion, laws or politics, or affecting diplomatic relations between Indian and specific countries, should be steered away from.

India is vast country with a byzantine administration and, over the years, the problems faced by international shoots have included crowd control, uncooperative local police and difficulty in obtaining permits.

Set up in 2015, under Indias National Film Development Corporation (NFDC), the FFO was tasked with easing some of those headaches. So far its managed to introduce a special visa for film crews, launch a web portal to handle permissions, and created a network of officers across state governments and central agencies including the Ministry of Railways and Archaeological Survey of India (ASI) to assist producers.

While in Cannes, the I&B Ministry also said its setting up a task force to explore support for Indias animation, visual effects, gaming and comics (AVGC) industries, which could result in talent development initiatives and further incentives.

On certain projects, India has already proved it can move mountains, or at least shut down the Gateway of India and get helicopters in the sky. We got everything we wanted for Tenet, including helicopters in the heart of Bombay, which nobody has done before, says Rathore. We had amazing support from the FFO, I&B Ministry and local Maharashtra government, including Mr Bhushan Gagrani, the principal secretary at that time, who personally took me into the war room with all the government agencies and police officers and said we have to make this happen.

Of course, not every film gets the red carpet treatment. The test now for the India government is how efficiently they can administer the incentive; how much support they can give international productions at the grass roots level, where problems usually arise, and whether in the long-term they can raise rebate caps or assist with GST.

But with the depth of Indian stories, increasing internationalisation of content and growing demand for unique and far-flung locations, were likely to see a lot more of India, on screens of all sizes, very soon.

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Coast Guard Responds to Oil Spill at Offshore Platform in Terrebonne Bay, Louisiana – gCaptain

Posted: at 1:32 am

The U.S. Coast Guard was responding to an oil spill Monday after an oil tank platform collapsed at Hilcorp Caillou Island offshore facility in Terrebonne Bay, Louisiana.

Coast Guard Marine Safety Unit Houma personnel initially received a notification from the National Response Center stating the platform experienced a structural failure causing a tank to fall into the water and spill oil.

Environmental Safety & Health Consulting Services has been hired as the oil spill removal organization. The response actions as of Mondays update included 4,500 feet of containment boom, three skimming vessels, and five response vessels on scene.

Hilcorp estimates less than 14,000 gallons of crude oil entered the water.

There have been no reports of impact to wildlife at this time and the exact cause of the incident is still under investigation.

Hilcorp describes itself as one of the largest privately-held exploration and production companies in the U.S.

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Hezbollah threatens to ‘sever’ the hand of Israel if it attempts to tap disputed offshore gas – Fox News

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The leader of Hezbollah in Lebanon issued a warning to Israel about attempting to tap offshore gas reserves in disputed waters between the two countries, further complicating U.S. attempts to mediate the dispute.

"The hand that reaches for any of this wealth will be severed," Hassan Nasrallah, the leader of Hezbollah in Lebanon, said during televised remarks in Beirut Tuesday, according to Radio France Internationale (RFI).

The warning comes as the U.S. has intensified efforts to resolve the maritime border dispute between Israel and Lebanon, two countries that have been in an official state of war for over 70 years. Both countries claim an over-300-square-mile stretch of the Mediterranean Sea subject to ongoing negotiations. Lebanon argues that the Karish gas field Israel claims is part of its internationally recognized waters.

AFTER ISRAEL HITS TERROR GROUP, UN SECURITY COUNCIL MEETS AS SOME MEMBERS REBUKE THE JEWISH STATE

Sheikh Hassan Nasrallah, the head of the Lebanese Shiite Muslim movement Hezbollah, gives a speech to mark the anniversary of assassination by Israel of its secretary general Sheikh Abbas Musawi, 16 February 2006 in Beirut. (Photo credit should read HAITHAM MUSSAWI/AFP via Getty Images)

Tensions between the two countries have flared over the summer, with Israel reporting that it had shot down three drones launched by Hezbollah that were reportedly bound for the Karish gas fields. Later in July Hezbollah released a video showing surveillance of Israeli-chartered ships, one bound for the same region.

Negotiations over the disputed region, which resumed in 2020 after stalling out during the 2006 war between the two countries, have picked up as Lebanon seeks to claw out of one of the worst economic crisis in its history. The country sees access to the offshore gas reserves as key to its recovery, with Nasrallah's comments coming as Lebanon awaits a response from Israel to an offer to resolve the dispute that was submitted to U.S. mediator Amos Hochstein last month.

During his address, Nasrallah told viewers that "we are waiting for a response to the demands of the Lebanese state, and we will respond accordingly, but I tell you... we must be ready and prepared for all possibilities"

April 20, 2017: A Hezbollah fighter holding an Iranian-made anti-aircraft missile on the border with Israel, in Naqoura, south Lebanon. (AP)

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He made clear that Hezbollah stood ready to escalate the conflict should Israel ignore Lebanese demands.

"We will go all the way, so no one should try us," Nasrallah said.

Michael Lee is a writer at Fox News. Follow him on Twitter @UAMichaelLee

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Offshore wind and fisheries can coexist today to best address the challenges of tomorrow – National Fisherman

Posted: at 1:32 am

The ocean off the American coastline is a vital national resource, and we have a once-in-a-generation opportunity to harness it in a manner that both feeds and powers the country. The U.S. offshore wind industry can rise to the moment to provide the nation with the clean power that it needs while working alongside a successful and sustainable U.S. fishing industry that continues to provide food security nationally and economic opportunities for coastal communities.

The fishing industry is resilient. Fishing has evolved in countless ways over the past few decades, with technological advancements, industry innovations and even target species all changing to meet societys demand for sustainable seafood. The fishing industry, the ocean, and the world are now facing a whole new type of challenge today: addressing the impacts of a warming planet due to climate change.

In the United States, offshore wind is an untapped domestic, reliable clean energy source. Developing offshore wind in American waters offers an opportunity to build a new domestic energy industry, creating tens of thousands of new jobs, securing our energy supply in the face of global crises, and lessening the climate impacts felt by fishermen and coastal communities.

To reap these benefits and address a changing climate, offshore wind and fishermen will need to work together. It is possible to have thriving commercial fishery stocks and responsible domestic clean energy in the ocean for the benefit of everyone but it will take communication and collaboration.

The process of building a new ocean energy industry to accommodate our nations growing energy needs must account for the strong economic and cultural ties that fishermen and coastal communities have to the water. As offshore wind gets ready to take off here in the U.S., the offshore wind industry has redoubled its commitment to being responsible participants in the collective management of the ocean. Organizations like the American Clean Power Association (ACP) want to support efforts by the offshore wind industry to work closely with the fishing industry to achieve successful and sustainable outcomes for both industries.

Offshore wind developers recognize the importance of working closely with the fishing industry as a critical component of achieving successful outcomes throughout the design, construction, and operation of projects. That work requires meaningful and direct engagement to understand fisheries concerns and obtain detailed input on fisheries operations. This, in turn, can contribute to the successful design of a project that avoids, minimizes, or mitigates impacts. Collaboration and coordination between the industries is attainable and is essential to successful futures for both industries, but it requires trust, and effective engagement and integration of fisheries inputs in the development process.

Offshore wind developers have spent more than a decade working with ocean users and Federal, state, and local governments to make sure everyone has a seat at the table and help find solutions that work for all. Fishermen, offshore wind developers, and other ocean users have numerous opportunities to engage and provide feedback throughout state and federal regulatory processes. ACPs Offshore Wind Public Participation Guide breaks down the offshore wind leasing and permitting process for ocean users and includes ways for their voices to be heard throughout the leasing process.

Fishermens voices have indeed been heard in the offshore wind regulatory process. For instance, fishermen and other public input resulted in a 72 percent reduction of the Call Area of New York Bight (NYB) from an initial 1.7 million acres to approximately 488,000 acres in the Final Sale Notice. The Bureau of Ocean Energy Management (BOEM) also made several significant modifications to the NYB lease areas in response to specific input from the fishing industry. And in June of this year, BOEM took an important step by seeking public comments on a draft framework for fisheries mitigation and hosted several opportunities throughout the summer to weigh in on the process.

BOEM has an incredibly difficult job and should get a lot of credit for working hard to balance a lot of different ocean usersincluding commercial fisheries into their leasing and permitting process, says Josh Kaplowitz, Vice President, Offshore Wind at American Clean Power. BOEM often reaches decisions that the offshore wind industry doesnt entirely like. But we recognize that sometimes they need to find that middle ground.

Offshore wind developers are also proactively addressing a myriad of fishing concerns, an effort which is fully outlined in ACPs Co-Existence FAQs resource. Sometimes, that involves changes in the designs of their projects. In Massachusetts and Rhode Island, for instance, developers agreed to uniform wind turbine spacing that reduced potential energy generation by as much as 30 percent but created over 200 one-mile wide corridors to address navigational concerns raised by the commercial fishing industry.

During the planning, development, and construction process, the offshore wind industry works regularly with the fishing industry. Offshore wind fisheries liaisons conduct regular, in-person meetings at fishing ports near the offshore wind projects to collect input from and provide information to fishermen.

This year, the offshore wind industry proposed a federal fisheries compensation program that will ensure that fishermen are made whole for the loss of gear due to offshore wind activity, as well as loss of landings caused by construction, operation, and decommissioning of offshore wind facilities. But the fund need not stop thereit could also provide grants to fishermen to help them adapt to fishing near and within offshore wind farms. For example, the fund could pay for new clam dredges that can more efficiently operate between offshore wind turbines.

This compensation program can create win-win scenarios that allow fishing to adapt with new technologies while also enabling offshore wind to be built. Doing so will maintain thriving fisheries and healthy ocean ecosystems.

We genuinely believe that offshore wind and fishing can coexist and that there's not a tradeoff. The two are synergistic and not necessarily in conflict but it requires compromise, Kaplowitz said. We want to work alongside fishermen and for them to see the growth potential for their industry from U.S. offshore wind.

There are also ways in which offshore wind and commercial fishing can mutually benefit each other. ACPs research shows that developing 30 gigawatts of offshore wind over the next decade couldcreate 83,000new jobs and attract $57 billion of investment into the U.S. economy. Growing offshore wind will create numerous job opportunities for local coastal communities and the offshore wind industry is investing in offshore wind job training programs and port development opportunities that will benefit marine users. For example, developers are also employing fishing vessels as scout vessels and seafloor survey vessels are typically staffed with local fishermen, or fisheries experts which allows for additional income opportunities, directly includes fishermen in the development process, and facilitates active communication during offshore activities with nearby fishing vessels.

We want this technology to preserve and create jobs, Kaplowitz continued. Fishing is a generational industry, and we want to ensure that U.S. fishermen and fisheries continue to thrive in this new economy and at the same time create new opportunities for the next generation of fishermen.

In addition to providing economic benefits, the growth of offshore wind will enhance marine ecosystems and create fisheries opportunities. Offshore wind turbine foundations can act as an artificial reef, attracting new fish to the area, as evidenced by numerous studies. One such example is a recent seven-year trawl study conducted by commercial fishermen at the first offshore wind farm in Block Island, Rhode Island, which concluded that wind turbine installation has not harmed fish populations. In fact, biological enhancement was quantified with more black sea bass congregating in the area.

Additional research and resources that outline the takeaways of these studies are readily available and show a promising future. However, this is just the beginning. As further offshore wind research develops, the offshore wind industry will continue to work with all fishermen and other ocean users to measure impacts responsibly in manner that will benefit our ocean ecosystem.

As an entirely new industry takes off in the United States, the offshore wind industry is committed to ensuring responsible coexistence for all ocean users. All ocean users are encouraged to participate in the offshore wind development process as we collectively strive to protect our planet.

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Opportunities for Offshore Wind Development on the West Coast – JD Supra

Posted: at 1:32 am

There is increasing interest in integrating renewable energy sources into the power grid in the United States. In particular, interest in offshore wind development is growing rapidly. Shortly after taking office, President Biden issued an executive order stating his goal to double offshore wind production by 2030.[1] With leases for offshore wind projects on the East Coast currently being issued, and the construction of two projects already approved, several others are likely to follow soon.[2] On the West Coast, opportunities for offshore wind development will likely occur as well, but there are critical state and federal permitting components to consider.

The Bureau of Ocean Energy Management (BOEM) is the federal agency responsible for permitting energy development activities on the outer continental shelf, which is the land lying seaward of state territorial waters. State territorial waters extend three miles offshore. Therefore, an offshore wind project will be subject to different state and federal permits depending on its location.

Multi-step Process

Projects on the outer continental shelf must undertake a multi-step federal leasing and permitting process. First, BOEM identifies offshore areas that could be suitable for wind development by issuing a Call for Information and Nominations. If there is enough interest and areas are identified in response to the call, BOEM will proceed with steps to identify the applicable lease area and proposed lease terms. Second, BOEM will issue a Proposed Notice of Lease Sale where interested wind energy developers can bid on the lease. On May 31, 2022, BOEM issued a Proposed Notice of Lease Sale identifying two potential lease areas in coastal Northern California.[3] Issuance of the lease, however, is not approval of an offshore wind project.

A Notice of Lease Sale expressly states that any subsequent development is required to follow a separate permitting and environmental review process. For example, a project must obtain BOEMs approval of a site assessment plan and, later, a construction and operations plan. Throughout this process, BOEM must conduct a National Environmental Policy Act (NEPA) environmental analysis and technical reviews, after which it may approve the construction and operations plan for the project.[4] As explained below, BOEM is not the only applicable agency because an offshore wind project will require permits from the U.S. Army Corps of Engineers and Environmental Protection Agency and must satisfy applicable state permitting requirements for transmission line connection, among other permits.

Navigating this permitting process takes extensive time and planning. For example, in March 2021, BOEM issued a Record of Decision approving Vineyard Wind, which was the first offshore wind energy project to proceed past the permitting stage.[5] Vineyard Wind will be an approximately 800 megawatt, commercial-scale wind energy facility with 84 or fewer turbines arranged in a grid-like array with spacing of one nautical mile between each turbine. The leasing and permitting process for Vineyard Wind took over five yearsBOEM issued an offshore lease to Vineyard Wind in 2015. Various private interest groups have now filed lawsuits claiming thatin addition to other deficienciesthe federal governments NEPA analysis is inadequate.[6]

As noted above, the U.S. Department of the Interior is proceeding with two lease areas off the coast of California.[7] BOEM and the State of Oregon are also conducting engagement activities to inform offshore wind energy leasing along the Oregon coast, and a call for Information and Nominations to determine interest in leases off the southern Oregon coast was published in April 2022.[8] On April 4, 2022, Seattle-based Trident Winds announced that it submitted an Unsolicited Lease Request to BOEM for an offshore wind project off Washingtons coast. For those of us familiar with Department of Interior leasing, we know it can be difficult to obtain leases by request or by application, depending on political interests within the applicable executive administration. To date, no outer continental shelf offshore wind leases have been issued on the West Coast.

West Coast Wind Projects

For West Coast wind projects on the outer continental shelf, BOEM will be the lead agency to review the projects environmental effects under NEPA. An offshore wind project, whether on the outer continental shelf or in state territorial waters, will also require authorizations or permits from a number of state and federal agencies. To connect transmission lines from turbines to the power grid on shore, a project will likely require a Clean Water Act Section 404 permit and a Rivers and Harbors Act Section 10 permit, both from the U.S. Army Corps of Engineers. The lead federal agency will also be required to consult with the U.S. Fish and Wildlife Service and the National Marine Fisheries Service about whether the proposed construction and operation might take (harm) wildlife protected under the Endangered Species Act (16 U.S.C. 1561 et seq.), the Marine Mammal Protection Act (16 U.S.C. 1361 et seq.), the Bald/Golden Eagle Protection Act (16 U.S.C. 668-668c), and the Migratory Bird Treaty Act (16 U.S.C. 703-712). Incidental take authorizations may be required for construction and operation of the project based on any of those consultations. (An incidental take permitting scheme does not currently exist under the Migratory Bird Treaty Act but is being developed.)[9]

A proposed offshore wind project in a states territorial waters, which extend from shoreline to three miles offshore, will not involve approvals from BOEM but will be subject to state permits and authorizations. For example, the Oregon Department of State Lands must issue an ocean renewable energy facility lease to authorize construction and operation of an offshore wind project in the state territorial sea.[10] In Washington, regulatory clarification will be necessary to permit offshore wind projects within the states territorial waters in light of current uncertainty under the Shoreline Management Act and Ocean Resources Management Act.[11] A project may also require a Clean Water Act Section 401 certification and an air quality permit for construction from the state if the project is proposed in the states territorial water. These are just some, but not all, of the state and federal permits that will likely be required.

Federal Permits

When obtaining the necessary federal permits, there are required local, state, and tribal consultations that are critical to evaluate and account for in any project development timeline. For example, under the National Historic Preservation Act agencies must determine whether the project has the potential to impact cultural or historical resources that may be eligible for or are listed in the National Register of Historic Places. Federal agencies are also required to consult with tribal governments that might be affected by a proposed project.

Importantly, treaties between some Native tribes on the West Coast and the United States have for certain tribes reserved the tribes right to fishing in the tribes usual and accustomed areas. For example, in Washington state, four Coastal Treaty Tribes (the Hhoh, Makah, and Quileute Tribes and the Quinault Nation) through treaties with the United States reserved hunting, fishing, and gathering rights to access and use the plants, mammals, fish, and other resources of the Olympic Peninsula, and the rights are exercised from Point Chehalis to the U.S.-Canada border and extend into the open ocean.[12] Under the treaties and case law, the tribes are co-managers of shared ocean resources, along with federal and state governments. A critical component of obtaining state and federal permits for an offshore wind project will be ensuring a robust consultation with any affected tribes.

In 2021, Grays Harbor Wind, a joint venture between the Quinault Indian Nation, Trident Winds, and EnBW North America, announced an offshore wind project offshore from Grays Harbor, Washington. The partnership intended to leverage the tribes unique treaty-reserved rights by proposing to construct an offshore wind project within the tribes usual and accustomed fishing grounds. This type of partnership could provide numerous advantages to offshore wind projects because it engages the most important stakeholders, triggers the federal governments fiduciary responsibility to tribes, and promotes tribal self-government. Those of us with experience permitting energy projects with tribes and tribal corporations know that these unique characteristics can provide a significant market advantage.[13] However, with Trident Winds recent lease request, it is unclear whether the Gray Harbor Wind joint venture is still a viable partnership.

Another critical component of the federal NEPA analysis will be considering the effects of an offshore wind project on West Coast commercial fisheries. Commercial fisheries, such as crab, halibut, and salmon fisheries, are robust industries on the West Coast. Commercial fisheries are also a significant industry on the East Coast. In fact, BOEM concluded in its NEPA analysis for Vineyard Wind that the expected impacts on commercial fisheries was moderate to major but mitigated because a direct compensation fund held in escrow was created to compensate for direct impacts to vessels and fishing interests.

Successfully permitting an offshore wind project on the West Coast, particularly in Oregon and Washington, will require a robust permitting strategy. The permitting hurdles on the West Coast will be similar to those on the East Coast: threatened and endangered species issues, fishing industry interests, effects to navigation, and successfully engaging with local stakeholders. In addition, West Coast projects will need to appropriately address treaty-reserved fishing rights of the tribes. Navigating these issues and interests will be critical to the ultimate success of any offshore wind project.

[1] Exec. Order No. 14008, 89 Fed. Reg. 7,619 (2021).

[2] BOEM Record of Decision, Vineyard Wind 1 Offshore Wind Energy Project Construction and Operations Plan (May 10, 2021); BOEM Record of Decision, South Fork Wind Farm and South Fork Export Cable Project Construction and Operations Plan (Nov. 24, 2021).

[3] 87 Fed. Reg. 32,443 (May 31, 2022).

[4] 30 CFR part 585.

[5] BOEM Record of Decision, Vineyard Wind 1 Offshore Wind Energy Project Construction and Operations Plan (May 10, 2021).

[6] Allco Renewable Energy Ltd. v. Haaland, case no. 1:21-cv-11171 (D. Mass. July 18, 2021); Ack Residents Against Turbines v. U.S. BOEM, Case No. 1:21-cv-11390-ADB (D. Mass. Aug. 25, 2021).

[7] 87 Fed. Reg. 32,443 (May 31, 2022).

[8] 87 Fed. Reg. 25,529 (Apr. 29, 2022).

[9] 86 Fed. Reg. 54, 667 (Oct. 4, 2021).

[10] Oregon Administrative Rules, chapter 141, division 140.

[11] RCW 43.143.010; RCW 90.58.020

[12] West Coast Ocean Tribal Caucus, Guidance and Responsibilities for Effective Tribal Consultation, Communication, and Engagement, (July 2020) available at https://www.boem.gov/about-boem/pacific-regional-collaboration.

[13] See, e.g., Dine Citizens Against Ruining our Environment v. Bureau of Indian Affairs, 932 F.3d 843 (9th Cir. 2019) (tribe and tribal corporation are necessary parties that cannot be joined absent a waiver of sovereign immunity); see also Deschutes River Alliance v. Portland General Electric Company, 1 F.4th 1153 (9th Cir. 2021).

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