The U.S. Department of the Interior’s Bureau of Ocean Energy Management (“BOEM”) has identified two Wind Energy Areas (“WEAs”) in the Gulf of Mexico (“GoM”) to develop offshore wind farms. A lease sale is expected later this summer. One 546,000-acre WEA is located south of Galveston, Texas; the other is a 188,000-acre tract off the coast of Lake Charles, Louisiana. According to BOEM, the two WEAs have the potential to power 2.3 million and 799,000 homes, respectively, with clean energy generated by continuously renewable offshore wind.
Offshore wind promises various advantages over onshore wind farms, including stronger, more consistent, and less turbulent winds, and the use of substantially bigger towers and blades than onshore farms, resulting in more efficient and greater power generation; out-of-sight-and-sound facilities; the capacity to service large U.S. coastal populations; and the ability to avoid ecologically sensitive sites ashore. (See Onshore vs offshore wind energy: what’s the difference?) Moreover, according to some estimates, the GoM possesses the potential to generate almost 510 giga watts (“GW”) of offshore wind (“OSW”) annually. (See The Gulf of Mexico is poised for a wind energy boom. ‘The only question is when.’) Additionally, given the mature oil and gas offshore infrastructure along and off the Gulf Coast states, that infrastructure arguably can and would adapt to build and maintain OSW farms in the GoM.
This article reviews the next steps in the development of wind farms in the GoM, comparing the environments in other parts of the country with those in the Gulf region and describing the obstacles to actual production of offshore wind in the GoM.
The Department of the Interior (“DOI”) transferred safety and environmental oversight for the Outer Continental Shelf (“OCS”) renewable energy program from the Bureau of Ocean Energy Management (“BOEM”) to the Bureau of Safety and Environmental Enforcement (“BSEE”) on January 31, 2023. Importantly, the transfer does not affect current regulatory requirements for offshore wind development, but merely the agency responsible for oversight and enforcement.
Background
A number of reorganizations have occurred over the years since the Energy Policy Act of 2005 authorized the Secretary of Interior to grant OCS leases for renewable energy activities. When the Minerals Management Service was divided in 2011 following the Deepwater Horizon incident, the Secretary of Interior highlighted the importance of separating the lease planning and management functions and safety and environmental enforcement functions into two separate entities, creating BOEM and BSEE, respectively. A third entity was also created to manage the royalty and revenue management functions.
The renewable energy program, however, remained with BOEM entirely as the program was still in early development. It was noted that the renewable energy program would be split between the entities when it is determined that “an increase in activity justifies transferring the inspection and enforcement functions” to BSEE.
About a year ago, we wrote about a rise in enforcement of the U.S. Environmental Protection Agency’s (“EPA”) Vessel General Permit (“VGP”). In the words of one EPA attorney, that was “just the beginning” and we have continued to see more aggressive reviews of VGP compliance and penalty demands, particularly on the U.S. West Coast. Since then, EPA has continued demanding significant penalties for alleged violations, sometimes citing interpretations of the VGP that are not outlined in any guidance documents. Additionally, in January 2023, EPA published an Enforcement Alert, EPA Reminder About Clean Water Act Vessel General Permit Requirements, reminding the maritime industry of the VGP requirements and impacts of non-compliance, and citing recent enforcement examples.
The VGP and VIDA Implementation
The VGP was issued under the Clean Water Act’s (“CWA”) National Pollutant Discharge Elimination System (“NPDES”) program and provides permit coverage nationwide for discharges incidental to the normal operation of commercial vessels more than 79 feet in length. EPA issued the first version of the VGP in 2008 and then another, more stringent version in 2013. The VGP set effluent limits and mandated Best Management Practices to control certain types of incidental discharges. It also required vessels to conduct routine and annual inspections and imposed numerous recordkeeping obligations, as well as monitoring and reporting requirements.
Corrupt managerial behavior has been a driver in the collapse of the cryptocurrency market. Enforcing and defending claims against directors and officers, where the directors and officers are not living in the United States and may not be U.S. citizens, is a current judicial focus in the U.S. litigation system. In the Three Arrows Capital (“Three Arrows”) chapter 15 case, the U.S. Bankruptcy Court for the Southern District of New York (the “U.S. Bankruptcy Court”) addresses founder misconduct[1] and defines the limits of the United States’ broad discovery tools to aide a letterbox jurisdiction, like the British Virgin Islands (“BVI”), in corralling bad actors and subjecting them to forensic examination.
The Collapse of Three Arrows and the Obfuscations of its Founders’ Location
Three Arrows managed and invested digital assets. It was founded by Kyle Davies and Su Zhu. Davies was born in the United States, but he holds Italian and Singaporean passports. It is not known whether Davies renounced his U.S. citizenship but, as a matter of law, a person born in the United States is presumed to be a U.S. citizen.[2] Zhu was born in China and lived in San Francisco for some period of time in the last decade. Zhu, however, currently does not reside in the United States and his current residence is unknown. Zhu listed his nationality as Singaporean in company records.
On June 27, 2022, Three Arrows commenced an insolvency proceeding in the BVI. The BVI court appointed joint liquidators to investigate and recover assets for Three Arrows’ creditors. Prior to its liquidation, Three Arrows allegedly had over three billion dollars in assets under its management. At the direction of Davies and Zhu, these assets funded deals with cryptocurrency companies globally, including in the United States and Singapore. According to a Singaporean government agency, Three Arrows’ investment arm breached asset management protocols for a prolonged period, calling into question Three Arrows’ solvency and provided the agency with false and misleading information about its assets, liabilities, and value.
Cybersecurity concerns are certainly on the radar for shipowners and operators. Cybersecurity breaches can penetrate systems aboard and ashore and can jeopardize safety and adversely impact maritime operations, as well as disrupt the downstream distribution of the goods on board. In that light, it is imperative that shipowners and operators install tough mitigation, detection, and response plans.
As ships undergo digitalization and autonomous system upgrades, cyberattacks and ransomware attempts become more prevalent. Ransomware is defined as a type of malicious software designed to block access to a computer system until the attacked party pays a sum of money. Cybercriminals monetize their operations by extorting their victims and can further sell extracted data. Cyberattackers typically seek the highest payout possible and target companies and industries, including the maritime sector, that rely on time-sensitive data to function. Such attacks can have devastating contemporaneous consequences on multiple players.
In the 2017 NotPetya malware incident, attackers encrypted Maersk systems and demanded payment. “Without access to data held on its destroyed computer system, Maersk literally didn’t know what was in its containers. On-the-ground-staff had to check manually, with time sensitive medicines a particular supply chain concern.”[1] The attackers shut down systems in seven minutes, but the response and industry’s realization that protections were needed lasted much longer. “The key lesson Maersk learned from battling the NotPetya attack: protection is important—but it’s equally as important to ensure your recovery process is strong.”[2]
Blank Rome LLP is pleased to announce that our firm has been named “Law Firm of the Year” in Admiralty & Maritime Law in the 2023 “Best Law Firms” survey by U.S. News & World Report – Best Lawyers.® Only one law firm per legal practice area received the “Best Law Firm” recognition.
Along with this recognition, our Maritime practice group was also ranked Tier 1 nationally and ranked Tier 1 regionally in Houston, New York City, and Washington, D.C., in Admiralty & Maritime Law. The rankings are based on a combination of “client feedback, information provided on the Law Firm Survey, the Law Firm Leaders Survey, and Best Lawyers peer review.”
Blank Rome was nationally ranked in 27 practice areas and regionally ranked in 83 practice areas in the 2023 “Best Law Firms” survey by U.S. News & World Report – Best Lawyers.®
To view Blank Rome’s full rankings, please click here.
Chambers Global 2023 recognized partners Anthony B. Haller, Mark R. Haskell, John D. Kimball, and Brett A. Snyder for their industry knowledge and leading practices, as well as Blank Rome LLP as a global leader in Shipping: Litigation and a USA leader in Bankruptcy/Restructuring and Energy: Oil & Gas (Regulatory & Litigation).
Anthony B. Haller “has a leading contentious practice and regularly guides clients through race, age, harassment and wrongful discharge claims. He is also much sought after for advice on and representation in labor relations matters.” A source notes, “Anthony is brilliant and deeply committed to the practice of law and bringing the value of his expertise to his clients.”
At Blank Rome, Anthony is a partner in the firm’s Labor and Employment group, which is nationally recognized in leading industry publications, such as U.S. News & World Report–Best Lawyers and Chambers USA. Anthony concentrates his practice on all aspects of labor and employment law, including preventative counseling, complex litigation, trial, and appellate work, and notably leads the firm’s Trade Secret Protection, Employee Defection, and Unfair Competition group. In recognition of his leading employment practice, Anthony was named one of The Legal Intelligencer’s Pennsylvania Trailblazers (2020), The National Law Journal’sEmployment Law Trailblazers (2020), the Philadelphia Inquirer’s Influencers of Law: Employment Litigation (2019), and Lexology’sClient Choice Award Winner (2021). He has also twice received Finance Monthly’sTrade Secrets Lawyer of the Year Award, and is consistently ranked as a global leader in employment law by Chambers USA, Super Lawyers, and Benchmark Litigation.
Mark R. Haskell – Energy: Oil & Gas (Regulatory & Litigation) — USA
Mark R. Haskell “is deeply experienced in representing clients seeking FERC and DOE authorization for LNG project development and expansion. He also skillfully acts for pipeline owners and shippers in market manipulation disputes and rate cases.” A source says he is “outstanding, extremely thoughtful and strategic.” Another notes: “He is a great litigator.“
At Blank Rome, Mark is a partner in the firm’s Energy group, which is nationally recognized in leading industry publications, such as U.S. News & World Report–Best Lawyers, Chambers USA, and The Legal 500. Mark advises his clients on matters related to the U.S. Federal Energy Regulatory Commission, including investigations, litigation, and related court appeals, and Commodity Futures Trading Commission investigations affecting the energy industry. He also represents natural gas and power marketers, local distribution companies, end-users, producers, industrial consumers, and liquefied natural gas and shale gas developers in energy regulatory matters. In recognition of his leading energy practice, Mark was named the exclusive winner of the Lexology 2022 Client Choice Awardfor Energy & Natural Resources USA (2022), a Lawyer of the Year for Natural Resources Law by Best Lawyers (2021), and is consistently ranked as a global leader in energy by Chambers USA, Super Lawyers, The Legal 500, Expert Guides, and Who’s Who Legal.
John D. Kimball “is well versed in handling shipping litigation. He also handles arbitration.”
At Blank Rome, John is a partner in the firm’s Maritime group, which is nationally recognized in leading industry publications, such as U.S. News & World Report–Best Lawyers, Chambers USA, The Legal 500, and Lloyd’s List. John concentrates his practice in the areas of admiralty and maritime law and commercial litigation, and has more than 30 years’ experience both domestically and internationally and counsels clients regarding maritime matters. John is also an adjunct professor at New York University Law School where he teaches the course in admiralty law, and is a prolific writer and speaker both domestically and internationally on legal issues facing the maritime industry. In recognition of his leading maritime practice, John is consistently ranked as a global leader in maritime by Best Lawyers in America, Chambers USA, Super Lawyers, The Legal 500, Who’s Who Legal, and Expert Guides.
Brett A. Snyder – Energy: Oil & Gas (Regulatory & Litigation) — USA
Brett A. Snyder is noted for his experience handling rate cases and cost allocation proceedings on behalf of pipeline companies.
At Blank Rome, Brett is a partner in the firm’s Energy group, which is nationally recognized in leading industry publications including U.S. News & World Report–Best Lawyers, Chambers USA, and The Legal 500. Brett focuses on the regulation of the natural gas, oil, and electric industries, manages certification proceedings, and advises clients regarding certification of new natural gas infrastructure projects. He represents clients in complex administrative and rate litigation, regulatory agency investigations, and in federal courts. He counsels clients on the federal regulation of natural gas and oil/liquids transportation; sales, including the structuring of transactions; and new terminal projects. Brett is co-author of the first editions of The AGA FERC Manual: A Guide for Local Distribution Companies, a comprehensive FERC manual for natural gas distribution companies. Best Lawyers in America notes him as a leader in Energy Law.
“Blank Rome has a well-regarded shipping litigation practice, with considerable expertise in dealing with high-profile disputes, as well as maritime arbitration. It is respected both within the USA and internationally for its deep industry knowledge. The firm offers:
Notable expertise in handling a wide range of issues, including casualties, charter party disputes, bankruptcy and environmental matters.
Experience acting for a mix of owners, operators, charterers, financial institutions and shipyards.
Additional strength advising on shipping issues as they intersect with environmental litigation.”
Strengths:
A market commentator reports: “Blank Rome has very good lawyers.“
“Solid bankruptcy group with a comprehensive national footprint. Acts for a stable of clients including financial institutions and private equity funds in domestic and cross-border matters. Substantial expertise in Chapter 11 cases and bankruptcy-related litigation.”
Strengths:
A market commentator reports: “The practice has a very strong bench with great experience across multiple industries and legal matters.”
“Blank Rome LLP is a highly regarded oil and gas regulatory practice able to draw on expertise of attorneys with long-standing industry experience capable of handling a variety of regulatory work. Offers particularly strong representation in FERC and CFTC investigations and enforcement proceedings. Further noted for assisting clients in obtaining oil and gas export authorization.”
About Chambers Global
Chambers & Partners, the UK-based publisher of Chambers Global, conducts research by speaking to a vast range of lawyers and clients. Greater weighting is given to the views of the latter, and any biased viewpoints tend to cancel each other out. All interviews are conducted purely for research purposes and are entirely confidential and un-attributed. The methodology has been approved by the British Market Research Bureau, which audits the research annually. In-depth interviews with clients and lawyers are done over the telephone, each one lasting about half an hour.
Chambers research is conducted by 200 research analysts across 200 jurisdictions and provides nearly 6,000 rankings tables. Annually, Chambers collects hundreds of thousands of responses from clients, the majority via in-depth interview. Qualities on which rankings are assessed include technical legal ability, professional conduct, client service, commercial awareness/astuteness, diligence, commitment, and other qualities most valued by the client. Editorial comment is also derived from the research, with quotations used when they sum up the prevailing opinion of the market.
Blank Rome LLP is pleased to announce that Who’s Who Legal has recognized 16 Blank Rome attorneys in their inaugural “Thought Leaders: USA 2023” rankings and 26 firm attorneys as “2022 Global Leaders” in 14 practice area categories.
Since 1996, Who’s Who Legal has identified the foremost legal practitioners in multiple areas of business law, totaling over 28,000 of the world’s leading private practice lawyers from over 160 national jurisdictions and 35 practice areas. To learn more, please visit whoswholegal.com.
Firm Receives 100 Percent for the Seventh Year in a Row on Human Rights Campaign Foundation’s Annual Scorecard on LGBTQ+ Workplace Equality
Blank Rome LLP is proud to announce that our firm has received a perfect score of 100 percent on the 2022 Corporate Equality Index (“CEI”), the nation’s foremost benchmarking survey and report measuring corporate policies and practices related to LGBTQ+ workplace equality, administered by the Human Rights Campaign (“HRC”) Foundation. With this score, Blank Rome has been designated for the seventh year in a row as a “Best Place to Work for LGBTQ+ Equality” by the HRC, and joins the ranks of major U.S. businesses that also earned top marks this year.
“Our firm’s dedication and ongoing commitment to advancing diversity and inclusion (“D&I”) in our workplace, throughout the legal industry, and in our local communities is at the forefront of our longstanding mission to cultivate progressive D&I initiatives in the places in which we both live and work,” said Grant S. Palmer, Managing Partner and CEO at Blank Rome. “We are honored to continue receiving this important recognition by the Human Rights Campaign and look forward to raising the bar for generations to come.”
“Through our Diversity and Inclusion Committee and dedicated affinity groups here at Blank Rome—BR Pride, BR United, BR Women, and BR Parents—we are engaged on a daily basis in advancing D&I in the legal industry and beyond,” said Krystal Studavent Ramsey, Blank Rome’s Director of Diversity and Inclusion. “We are committed to championing the rights for all people, including the LGBTQ+ community, and fostering inclusive professional and personal environments where everyone can safely and openly bring their best selves forward. We will continue to identify, develop, and implement programs, policies, and initiatives that will accelerate positive and sustainable change.”
“We are proud of Blank Rome’s longstanding history of supporting diverse communities and individuals, and of cultivating an atmosphere of meaningful inclusion that supports our LGBTQ+ community,” added Brett Snyder, Partner and Chair of BR Pride. “We look forward to continuing to work on enhancing and encouraging LGBTQ+ inclusion.”
The 2022 CEI rated 1,271 U.S.-based businesses and evaluated in detail related LGBTQ+ policies and practices under the following four central pillars: non-discrimination policies across business entities; equitable benefits for LGBTQ+ workers and their families; supporting an inclusive culture; and corporate social responsibility. Blank Rome’s efforts in satisfying all of the CEI’s criteria results in a 100 percent ranking and the designation as a “Best Place to Work for LGBTQ+ Equality.” For more information on the 2022 CEI, or to download a free copy of the report, please visit hrc.org/cei.
The Human Rights Campaign Foundation is the educational arm of America’s largest civil rights organization working to achieve equality for lesbian, gay, bisexual, transgender, and queer people. Through its programs, the HRC Foundation seeks to make transformational change in the everyday lives of LGBTQ+ people, shedding light on inequity and deepening the public’s understanding of LGBTQ+ issues, with a clear focus on advancing transgender and racial justice. To learn more, please visit hrc.org.
Blank Rome LLP is pleased to announce that our firm has been named a Compass Award winner by the Leadership Council on Legal Diversity (“LCLD”) for our participation in and support of LCLD’s mission and programs, as well as our strong commitment to building a diverse organization and a more inclusive legal profession.
The Compass Award recognizes individuals and organizations that fulfill all of the following requirements in a single calendar year:
Member attendance at the LCLD Annual Membership Meeting and/or Member attendance at a Leadership Summit and/or submission of a Leader’s Pledge
Participation in the LCLD Fellows and Pathfinder Programs
Participation in an LCLD Pipeline program (the 1L Scholars program or the Success in Law School Mentoring Program)
As a longtime member organization, Blank Rome is proud to partner with LCLD in its mission of helping a new and more diverse generation of attorneys ascend to leadership positions. Earlier this year, our firm announced that Megan R. Wood would join the 2022 LCLD Fellows Program and Samar Aryani-Sabet and Lamiya N. Rahman would join the 2022 LCLD Pathfinder Program.
To learn more about LCLD’s awards and view the full lists of winners, please click here.
