Interior
Department’s New Regulatory Barriers Will Impede the Responsible Development of
American Energy
WASHINGTON
- Barry Russell, president and CEO of the Independent Petroleum Association of
America (IPAA), issued the following statement today in response
to Interior Secretary Salazar's announcement to increase regulations on oil and
natural gas leasing on federal lands in 2010:
"The new
regulations announced today by Sec. Salazar are not consistent with an American
energy policy that provides more jobs and revenues and strengthens national
security. They will further restrict access to oil and natural gas resources on
onshore federal lands, which an overwhelming majority of Americans want and
deserve.
"From 2008
to 2009, the Department of Interior issued roughly 40 percent fewer new oil and
gas leases in the Intermountain West. It also collected less than one-tenth the
revenue from oil and gas lease sales in 2009 than it did in 2008. These
additional regulatory hurdles will only exacerbate these numbers in the future.
"The
Bureau of Land Management (BLM) should not limit the scope of oil and gas lease
offerings or stop the industry from nominating lands to be considered for
possible leasing. America's independent producers, who responsibly drill 90
percent of the wells in the United States, realize that operating on federal
lands requires a partnership with the federal land management agencies;
however, the industry's expertise should be taken into account. It is, in fact,
the thousands of small, entrepreneurial wildcatters who explore for the
resources and are willing to take the risk to find and safely develop these
resources.
Below
are a list of IPAA's main concerns with the new regulations for oil and gas
leasing on federal lands:
"While
America's independent producers recognize the importance of coordinating with
other interested parties when operating on federal lands, we do not see the
need to further expand the consultation process that is already in place as it
will only lead to more delay and confusion for small producers.
"The IPAA
strongly supports the use of categorical exclusions outlined in the 2005 Energy
Bill. Efforts to revise or only allow the use of categorical exclusions
under "extraordinary circumstances" will significantly limit the
ability of independent producers to utilize these important and common sense
tools. We believe that decisions regarding oil and natural gas development are
best made at the field office level rather than the top down approach being
advocated in these regulations.
"This
initiative will add great bureaucracy, delay and confusion to the oil and gas
leasing process on federal lands. The current leasing process on federal
lands works, and if small changes need to be made to the system, BLM has the
ability to make those corrections. The concept of developing a master
leasing plan will only create the potential for litigation and protest on every
oil and gas lease issued by the agency.
"We
believe that energy production and environmental responsibility are not
mutually exclusive. If any country is best suited for responsible energy
development, it is America. Independent producers employ the best technology
available to help us find, develop and deliver affordable energy while
dramatically reducing our footprint. And it is America's independent producers
who stand ready to deliver this reliable, affordable homegrown energy to
Americans who are demanding it."
From IPAAs press
release website 1/21/2010
Comparison of Process Changes Resulting from Leasing Reform Policy –
Department of the Interior
1) General Land Use Planning
A) Current BLM Policy
a)
In its Resource Management Plans (RMP),the BLM identifies areas as closed to leasing open to
leasing, and open to leasing with major/moderate environmental protection measures.
B) Proposed Leasing Reform Policy
a) No change
2) Refined Planning for Potential New
Leasing and Development Areas
A) Current BLM Policy
a) Not Addressed
B) Proposed Leasing Reform Policy
a) An MLDP is a stepped down
leasing analysis of mostly unleased and undeveloped
areas that have been proposed for oil and gas leasing and that have the
potential for substantial oil and gas development.
b) Field offices will analyze in greater detail the
impacts of leasing and development in the proposed area.
c) Field offices will ensure greater public involvement.
d) Field offices will identify key issues such as
protection of air quality, watersheds, wilderness, wildlife, and nearby land
uses.
e) Field offices will identify appropriate leasing
and development mitigation measures to protect the environment.
3) Competitive Oil and Gas Sale Process
A) Current BLM Policy
a) Internal and external requests for leasing are submitted
to the BLM State offices and then to the Field Offices for review.
b) Field
offices conduct a quick internal data and plan review to confirm whether
leasing the proposed parcel of land for oil and gas development would be in
conformance with the land use plan.
c) Field offices identify major/moderate environmental
protection measures for the lease parcel based on the land use plan.
d) State offices offer parcels
for lease quarterly.
B) Proposed Leasing Reform Policy
a) Field offices will use Interdisciplinary Teams to
carefully conduct a comprehensive review of proposed parcels.
b) In most cases,
Field offices will conduct an on-the-ground reconnaissance of parcels.
c) Field office
will identify interested groups and individuals seek their involvement.
d) Field offices will prepare an environmental review
document to evaluate existing, revised, and/or new stipulations. The public
will be invited to review and comment on the draft document.
e) The BLM will use the environmental and public
review to address important resource values (such as air quality, watersheds, wilderness,
wildlife, and nearby land uses) and to identify appropriate mitigation measures
for protection of the environment.