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Poor risk assessment resulted in Shell grounding, report says

By Dave Detling 8:55 PM April 3, 2014

A recently released report by the U.S. Coast Guard says poor risk assessment and management were all factors in the grounding of Shell’s mobile oil drilling rig, the Kulluk.

The rig grounded on Sitkalidak Island near Kodiak back in December 2012.

Thursday’s report suggests Alaska’s tax laws may have influenced the decision by Shell to tow the Kulluk to Seattle.

According to the report, Royal Dutch Shell believed the drilling vessel would have qualified as taxable property on Jan. 1, 2013, if it was still in Alaska waters.

The Coast Guard’s report says the Kulluk broke away from its tow vessel during a severe storm and ran aground four days later.

To see a copy of the Coast Guard report click here.

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