MMD Blog

Filed under: Maritime & International Trade (7 posts) , Corporate & Business (3 posts)

Interior Issues Final Notice for Sizeable Gulf of Mexico Oil and Gas Lease Sale

Posted on May 18, 2012 by Michael P. Hartman (2 posts)

On Thursday, May 17, 2012, the US Department of Interior Thursday issued the final notice for an oil and gas lease sale to be held on June 20 at the Superdome in New Orleans, Louisiana.  Interior will make available all unleased areas in the Central Gulf of Mexico for a total of more than 38 million acres offshore Louisiana, Mississippi and Alabama. 

Interior's Bureau of Ocean Energy Management (BOEM) estimates the sale could lead to the production of more than one billion barrels of oil and more than 4 trillion cubic feet of natural gas.  According to Interior, the 7,276 blocks for sale are located from 3 miles to 230 miles offshore, in water depths from 9 feet to 11,115 feet in the Central Gulf of Mexico, a region that BOEM estimates contains approximately 31 billion barrels of oil and 134 trillion cubic feet of natural gas that are undiscovered and recoverable.

The Final Notice of Sale package (see: http://www.boem.gov/sale-216-222/) describes all terms and conditions for Central Gulf Lease Sale 216-222. According to Interior, "these include a range of incentives that encourage prompt development and ensure a fair return to taxpayers”, as described in a recent report by Interior on the status of Oil and Gas Lease Utilization. These measures include escalating rental rates and tiered durational terms with relatively short base periods followed by additional time under the same lease if the operator drills a well during the initial period.

BOEM also increased the minimum bid in deepwater to $100 per acre, up from only $37.50 per acre ... (continued)

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Filed under: Maritime & International Trade (7 posts) , Corporate & Business (3 posts)

Google Backed $5bn Offshore Wind Power Line Breezes Through U.S. Dept. of Interior Competition Review

Posted on May 15, 2012 by Michael P. Hartman (2 posts)

On Monday, May 14, the U.S. Department of the Interior (Bureau for Ocean Energy Management) determined that a Google Inc. backed transmission line project to connect East Coast wind farms to the electrical grid faced no land use competition for the Outer Continental Shelf land in the mid-Atlantic, removing a regulatory hurdle for the project developers Atlantic Grid Holdings LLC.  The Atlantic Wind Connection project involves building a proposed transmission line spanning from Virginia to New York, which would serve as the United States principal transmission line for offshore energy.  The undersea line would have collecting capacity of up to 7,000 megawatts of power from future East Coast wind farms, which the line would in turn deliver to the power grid.  

Atlantic Grid Holdings LLC plans to construct the transmission line in multiple phases over the next decade about 15 miles offshore under the sea.  The line will take advantage of state-of-the-art underground transmission technology instead of unsightly high-voltage towers, lending aesthetic appeal to the project.  This decision allows the domestic offshore wind industry to plan for a backbone transmission system.  Furthermore, the 790-mile line will likely help stimulate the industry, which is currently facing financial uncertainty in the face of a potential expiration of major tax credits later this year.  

Monday's determination allows the agency to begin its environmental review of the project. In addition to Google Inc, other major investors in the project include Elia Group, Good Energies II LP and Marubenai Corp.  Google has praised the project as a means to help states meet renewable energy goals and to speed up the deployment of clean energy.

For the full text of the decision, or if you would like to learn more about our maritime and offshore energy practices, please contact Michael P ... (continued)

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Filed under: Maritime & International Trade (7 posts)

Executive Order: Prohibiting Certain Transactions with and Suspending Entry into the United States of Foreign Sanctions Evaders with Respect to Iran and Syria

Posted on May 10, 2012 by Gregori D. Mavronicolas (3 posts)

A recent May 1, 2012 Executive Order now targets foreign individuals and entities that have violated, attempted to violate, conspired to violate, or caused a violation of U.S. sanctions against Iran or Syria, or that have facilitated deceptive transactions for persons subject to U.S. sanctions concerning Syria or Iran.  As such, The Department of Treasury can now identify foreign individuals and entities that have engaged in these evasive and deceptive activities, and prevent them from having access to the U.S. financial and commercial systems.  This now imposes serious consequences on foreign persons who seek to evade U.S. sanction programs regarding both Iran and Syria.

Upon identification of foreign sanction evaders, U.S. persons will be prohibited from providing to, or procuring from, the sanctioned party goods, services, or technology, effectively cutting the evader off from the U.S. marketplace.   This represents another broad-based step taken by the U.S. to target the governments of Iran and Syria. 

Given the potential volatility in U.S. foreign policy the latest sanction regulations and updates should be consulted before considering transactions involving interests in or related to Iran or Syria. Mavronicolas Mueller & Dee LLP works with clients engaged in international trade to protect them against such violations.

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Filed under: Maritime & International Trade (7 posts) , Arbitration & Mediation (1 posts)

Recent Circuit Court Decisions Highlight Importance of Scope of Arbitration Clauses

Posted on November 9, 2011 by Peter C. Dee (2 posts)

Presented in the November 2011 issue of "The Arbitrator" (Society of Maritime Arbitrators).

By: Gregori D. Mavronicolas and Peter C. Dee of Mavronicolas Mueller & Dee LLP

The U.S. Court of Appeals for the Ninth Circuit recently issued a decision narrowly interpreting an arbitration clause contained in a salvage contract in Cape Flattery Ltd v. Titan Maritime, LLC, No. 09-15682, 2011 U.S. App. LEXIS 15360 (9th Cir. July 26, 2011). In Cape Flattery, a shipowner contracted with a salvage company to remove a stranded vessel from a reef. When removing the vessel the salvor allegedly damaged the reef. The U.S. government sought damages under federal law from the shipowner, who then filed suit in federal court in Hawaii seeking indemnity from the salvor for the damages sought by the government.

The salvor filed a motion to compel arbitration based on the following clause in the salvage contract:

Any dispute arising under this Agreement shall be settled by arbitration in London, England, in accordance with the English Arbitration Act 1996 and any amendments thereto, English law and practice to apply.

The District Court denied the motion, holding that, under federal arbitrability law, the scope of the arbitration clause did not cover the shipowner’s claim for indemnity ... (continued)

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Filed under: Maritime & International Trade (7 posts)

IMO Adopts Mandatory Energy Efficiency Measures for International Shipping

Posted on July 21, 2011 by Peter C. Dee (2 posts)

The main focus of the 62^nd session of the IMO Marine Environment Protection Committee (MEPC), held from July 11^th to 15^th, was the reduction of greenhouse gas emissions from international shipping.   The IMO adopted revisions to MARPOL Anex VI to include the first-ever efficiency design standards for new ships through an Energy Efficiency Design Index (EEDI) and Ship Energy Efficiency Management Plan (SEEMP).  According to the IMO, these measures represent the first ever mandatory global greenhouse gas reduction regime for an international industry sector.   The new measures apply equally to countries regardless of whether they are from the industrial or developing world. 

The amendments, implemented through a new chapter 4 to MARPOL Annex VI (regulations for the prevention of air pollution from ships), apply to all ships over 400 gross tonnage and will make mandatory the EEDI for new ships, and the SEEMP for all ships.  To enforce the new measures, ships will be subject to survey and certification requirements. 

The Energy Efficiency Design Index

The EEDI requires progressively more stringent minimum energy efficiency targets for new ships beginning in 2013, to be achieved through technical and design-based measures such as improved hull designs and more efficient engines.  The IMO notes that the “EEDI is a non-prescriptive, performance-based mechanism that leaves the choice of technologies to use in a specific ship design to the industry.  As long as the energy-efficiency is attained, ship designers and builders would be free to use the most cost-efficient solutions for the ship to comply with the regulations.”

The EEDI creates a common metric calculated as the rate of carbon dioxide (CO₂) emissions  from a ship (calculated as fuel consumption multiplied by a fuel carbon factor) per tr ... (continued)

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Filed under: Maritime & International Trade (7 posts)

Recent Sanctions Activity Under The Amended Iran Sanctions Act

Posted on June 7, 2011 by Gregori D. Mavronicolas (3 posts)

There has been a recent flurry of sanctions activity under the Iran Sanctions Act, as amended by the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA).  These sanctions represent a marked increase in the State Department's enforcement of the Act, which was expanded in 2010 to target companies in the maritime industry that provide goods or services that assist Iran in obtaining refined petroleum products. Pursuant to the ISA, as amended, the Secretary of State imposed sanctions on seven companies for their activities in support of Iran's energy sector.  See http://www.state.gov/r/pa/prs/ps/2011/05/164132.htm.   

This latest move by the U.S. Government sends a clear message to international businesses and to companies around the world that those who continue to facilitate Iran’s efforts to evade U.S. Sanctions will face significant consequences.

Given the potential volatility in U.S. foreign policy the latest sanction regulations and updates should be consulted before considering transactions involving interests in or related to Iran or any other country. Mavronicolas Mueller & Dee LLP works with clients engaged in international trade to protect them against such violations.

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Filed under: Litigation (1 posts) , Intellectual Property & Digital Media (1 posts)

Trademark Infringement Online

Posted on May 25, 2011 by Alexis N. Mueller (1 posts)