U.S. rules for new drilling permits may be ready Tuesday

WASHINGTON (Reuters) - The U.S. Interior Department may issue new safety and environmental requirements as soon as Tuesday for oil companies that want to drill in shallow waters, a department official said.

Officials at the department's Minerals Management Service worked over the weekend on the requirements that were drawn up in response to the BP oil spill.

Companies must implement the safety and environmental checks before they can be approved for any new drilling permits for shallow Gulf waters that are less than 500 feet deep, the official said.

A six-month moratorium imposed by the White House on new drilling permits for exploration and development wells in waters greater than 500 feet will continue.

It is unclear whether companies already conducting shallow water drilling would have to refile with MMS to get updated permits and prove they are satisfying the new requirements.

The Independent Petroleum Association of America said MMS officials have told some companies they must resubmit permit applications.

Many offshore drilling operations have been in limbo while the government finalizes its rules. Some energy experts fear the new requirements could raise drilling costs and discourage domestic production.

"As they're trying to figure this out, it causes a significant amount of concern not knowing what the process is and what the policy is," said Dan Naatz, vice president for government relations at IPAA.

"For companies that are trying to put financing together, the longer this goes on where it's unclear, it's just going to make it harder and harder for our producers to move forward," Naatz said. "They do need some confidence in the regulatory environment they are going to be operating under."

(Reporting by Tom Doggett; Editing by David Gregorio)