Salazar says Reform Due for Oil and Gas Leases on Public Lands


Taft: Interior Secretary Salazar Launches Onshore Oil and Gas Leasing Reforms
Reforms Will Make Oil Drilling Tougher on Public Lands, Carrizo Plain
January 8, 2010

Citing a need to improve certainty and order in oil and gas leasing on U.S. public lands, Secretary of the Interior Ken Salazar today announced several reforms that the Bureau of Land Management will undertake to improve protections for land, water, and wildlife and reduce potential conflicts that can lead to costly and time-consuming protests and litigation of leases. Interior will also establish a new Energy Reform Team to identify and implement important energy management reforms.
“The previous Administration’s anywhere, anyhow policy on oil and gas development ran afoul of communities, carved up the landscape, and fueled costly conflicts that created uncertainty for investors and industry,” said Secretary Salazar. “We need a fresh look – from inside the federal government and from outside – at how we can better manage Americans” energy resources.
Les Clark of the Independent Oil Producers Association told the Independent that the IOPA opposes these new guidelines and said that the government is just making it more difficult for oil producers to lease and explore for oil on public lands.
According to Salazar, the new guidance BLM is issuing for field managers will help bring clarity, consistency, and public engagement to the onshore oil and gas leasing process while balancing the many resource values that the Bureau of Land Management is entrusted with protecting on behalf of the American people. “In addition, with the help of our new Energy Reform Team, we will improve the Department’s internal operations to better manage publicly owned energy resources and the revenues they produce.”
Many of the reforms that the Bureau of Land Management will undertake follow the recommendations of an interdisciplinary review team that studied a controversial 2008 oil and gas lease sale in Utah.
Congressman Kevin McCarthy issued a statement about the new policy and said, “The Department of Interior’s decision takes a step backward in ensuring that our families have reliable access to affordable American energy. Our local communities are blessed with abundant resources that can be responsibly developed, creating good, well-paying jobs and promoting domestic energy production. Rather than promoting this, Interior’s additional layer of bureaucracy could instead lead to higher energy prices at a time when hardworking Americans are already shouldering high costs.”
Under the reformed oil and gas leasing policy, BLM will provide:
Comprehensive interdisciplinary reviews that take into account site-specific considerations for individual lease sales. Resource Management Plans will continue to provide programmatic-level guidance, but individual parcels nominated for leasing will undergo increased internal and external coordination, public participation, interdisciplinary review of available information, confirmation of Resource Management Plan conformance as well as site visits to parcels when necessary; Greater public involvement in developing Master Leasing and Development Plans for areas where intensive new oil and gas extraction is anticipated so that other important natural resource values can be fully considered prior to making an irreversible commitment to develop an area; Leadership in identifying areas where new oil and gas leasing will occur. The bureau will continue to accept industry expressions of interest regarding where to offer leases, but will emphasize leasing in already-developed areas and will plan carefully for leasing and development in new areas.
BLM Director Bob Abbey said the increased opportunity for public participation and a more thorough environmental review process and documentation can help reduce the number of protests filed as well as enhance BLM?s ability to resolve protests prior to lease sales. A comparison of the new guidance with current policy can be found here.
“The new approach can help restore certainty and predictability to a system currently burdened by constant legal challenges and protests,” said Abbey. “It will also support the BLM’s multiple-use mission, which requires management of the public lands to provide opportunities for activities such as recreation, conservation, and energy development?both conventional and renewable.”
BLM will also issue guidance regarding the use of categorical exclusions, or CXs, established by the Energy Policy Act of 2005 and that allow the bureau to approve some oil and gas development activities based on existing environmental or planning analysis. Under the new policy, in accordance with White House Council on Environmental Quality guidelines, BLM will not use these CX’s in cases involving “extraordinary circumstances” such as impacts to protected species, historic or cultural resources, or human health and safety.
Salazar also issued a Secretarial Order establishing an Energy Reform Team within the Office of the Assistant Secretary for Land and Minerals Management that will identify and oversee implementation of energy reforms.
“The creation of the new Team focuses on our important stewardship responsibility in the management of the nation’s energy resources,” said Wilma Lewis, Assistant Secretary for Land and Minerals Management. “Through its work, the team will promote efficiency and effectiveness in the development of renewable and conventional energy resources, so that we can be properly accountable to the American public.”
Under the Assistant Secretary’s direction, the Energy Reform Team will provide greater coordination and improved accountability to ensure the orderly, efficient, responsible and timely development of public resources critical for our national energy security. Through its own efforts, as well as by considering good ideas from stakeholders, industry, and the public, the Team will help ensure that Interior is a responsible steward of the public resources it manages and obtains fair value for energy resources owned by the public.
The new oil and gas leasing guidance and CX guidance will be implemented once BLM has completed final internal reviews.
According to Forest Watch, the Carrizo Plain National Monument, in San Luis Obispo County, has also experienced increased pressure from the oil industry. In 2006, an oil tycoon announced his intent to drill an exploratory well inside the Carrizo Plain National Monument boundary. His lease eventually expired before he was able to do so. In 2008, a subsidiary of Occidental Petroleum announced its intent to explore for oil on the valley floor of the Carrizo Plain National Monument. That proposal is still pending.

http://www.taftindependent.com/News/ViewArticle/1666

Secretary Salazar is drawing heat from the oil industry. His stance has angered and surprised the industry.

According to the Wall Street Journal,

Business groups fear the administration’s action will discourage domestic energy development, by adding new red tape to the permitting process for oil and gas drilling. In a letter to Mr. Salazar last week, the Industrial Energy Consumers of America, a lobbying group that represents manufacturers, credited the 2005 law with reducing drilling-permit backlogs and boosting natural-gas production.

The Bureau of Land Management will have to reign themselves in. From the WSJ article quoted above:

Mr. Salazar’s action follows litigation from some environmental groups and criticism from the Government Accountability Office that the BLM has often misinterpreted and violated a 2005 federal law. The legislation was designed to speed oil and gas drilling in the West by allowing federal land managers to waive extensive environmental reviews normally required.

Republicans sent a letter of complaint about the reforms.

Environmental groups who have been fighting for curbing of the leases are generally pleased. The Billings Gazette quotes Salazar as saying that the Bush Administration treated public lands like a “candy store.” Previously Salazar had halted land sales that were to take place in Utah, so this latest reform is additional good news for places like the Carrizo Plain National Monument.

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2 Responses

  1. […] projects that have met … Read More RECOMMENDED BOOKS REVIEWS AND OPINIONS Salazar says Reform Due for Oil and Gas Leases on Public Lands … Citing a need to improve certainty and order in oil and gas leasing on U.S. public lands, […]

  2. It looks like recent news is that Salazar will need to backtrack on his oil and gas lease announcement. Sad.

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