Apparatus and method for drilling a wellbore with a rotary steerable system

An apparatus for use in a wellbore includes a non-rotating section disposed along the drill string. The non-rotating section has a bore and at least one biasing member engaging an adjacent wall. A rotating section is disposed in the bore of the non-rotating section and a bearing is positioned between the rotating section and the non-rotating section. The apparatus also includes a relative rotation sensor that generates signals representative of a rotation of the rotating section relative to the non-rotating section, an orientation sensor that generates signals representative of an orientation of the non-rotating section relative to a selected frame of reference, and a controller in signal communication with the at least one relative rotation sensor and the at least one orientation sensor. The controller adjusts a force applied by the at least one biasing element, and/or a position of the at least one biasing element in response to the generated signals from the at least one relative rotation sensor and the generated signals from the at least one orientation sensor.