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Experts fear some 170 tons of fuel may leak into the environmentally sensitive waters if authorities cannot contain the spill.
The firm also recently announced it had won permission to drill in environmentally sensitive waters off Greenland, though it will not act as operator.
In response to the gulf accident, the Obama administration suspended most new offshore drilling, including in the environmentally sensitive waters of the Arctic.
"I know there are Americans who are concerned about oil companies drilling in environmentally sensitive waters," said Obama.
He said that Americans "are concerned about oil companies drilling in environmentally sensitive waters" and he had the audacity to say "that's precisely why my administration has worked to make sure that our oil exploration conducted under these leases is done at the highest standards possible, with requirements specifically tailored to the risks of drilling off Alaska".
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Royal Dutch Shell's controversial plans to drill for billions of barrels of oil in the Arctic's environmentally sensitive frozen waters face a potentially damaging legal challenge.
Groundwater containing treated wastewater discharges to environmentally sensitive receiving waters in Malibu Lagoon, and to nearby recreational beaches.
However, a museum spokeswoman ensured The LA Times that the installation was environmentally sensitive, recycling its water through a closed-loop system with minimal evaporation and replenishment, and all water is sourced from the museum's clean water supply.
Her resolve forced the combatants back to the negotiating table, where they also worked out a plan to protect and restore the Salton Sea, an environmentally sensitive body of water that depends on irrigation runoff from the farms.
Democrats don't necessary oppose the project; however they argue that the plans for the pipeline may need to be rerouted to avoid going through environmentally sensitive areas, including fresh-water reserves.
United Utilities, the incumbent supplier, sought permission to extract more water from environmentally sensitive sites.
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