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Oil and Gas Lease Sale - Bridge to Energy Independence

Our nation’s economy and energy security are inextricably linked.  The Bureau of Land Management plays a key role in advancing our energy and economic security by providing access to energy sources such as oil, gas and renewable energy.  While we envision a future of energy independence sustained by alternative and renewable sources of energy, we also know that oil and natural gas are the essential bridge to that future energy independence.

It is important then that those who have a stake in the management of our public lands—and that means every American citizen—understand how the BLM carries out its responsibilities, under the law, to manage the energy resources on public lands.

One aspect of BLM’s current oil and gas program, the December 2008 lease sale, deserves particular attention at this time, because facts of the lease sale have been mischaracterized in the public forum, sowing confusion and misunderstanding.

It should be understood, first and foremost, that there can be no leasing—by law—in areas protected as Wilderness or Wilderness Study Areas.

Second, BLM conducts quarterly lease sales based on the law of the land – specifically the 1920 Mineral Leasing Act and the National Environmental Policy Act.  Rigorous environmental reviews of proposed parcels lead to public reviews, where the public has the opportunity to look at the lease offerings and present objections to specific parcels for specific reasons. This is a standard process BLM Utah conducts four times each year.

Granting a lease does not convey an unlimited right to explore or develop oil or gas resources.  Leases are stipulated with terms designed to minimize the impacts of development.  Standard lease terms require that the lessee minimize adverse impacts to the land, air, water, cultural, biological and visual values. 

Additional lease terms are applied according to site-specific needs.  After a lease is issued the BLM works closely with the operator to modify the siting and design of facilities, influence the rate of development and timing of activities, and require other mitigation to minimize impacts.  It is important to remember, too, that leasing is a temporary use of the land, and developers are required to reclaim sites.

And let’s not forget what energy industry jobs mean to local economies. Many Utah communities depend on energy development, the jobs and infrastructure they bring.  Thus far, Utah is fortunate that it has not been hit as dramatically as the rest of the country with job losses.  That is due, in large measure, to energy jobs in the state, which have outpaced US job growth by more than 30 percent. 

Oil and gas exploration is costly and highly speculative.  Only about six percent of the leases are drilled, and about four percent of leases are productive.  If a lease is explored and preliminary data indicates field development is probable, BLM then prepares the appropriate National Environmental Policy Act (NEPA) document—typically an Environmental Impact Statement or an Environmental Assessment—to analyze and disclose environmental impacts.  The NEPA process ensures continuing opportunities for public involvement in managing your public lands.

Little attention has been paid to the fact that this lease sale offers parcels for development of geothermal energy—a renewable energy resource—yet even these are protested.   And renewable resources are bearing the brunt of economic downturn and falling gas prices.  Our collective memory as a nation is short.  We forget how hard it was to pay $4.00 a gallon for gas last summer, when we’re paying less than half that price this winter.  That being said, it is important that we are deliberate in our ability to maintain existing energy resources until we can fully transition to renewable energy resources.

Being dependent upon foreign sources of energy has always been risky.  In the geopolitical world of today, our dependence on others leaves us frighteningly vulnerable. Common sense dictates that we have a strategy to lessen our dependence on foreign sources of energy, a strategy that gives us confidence about a future era of energy independence that is sustained by renewable and alternative sources of energy produced here in the United States.

In the meantime, that strategy must bridge the gap, by promoting responsible development of the substantial reserves of oil and natural gas resources found here at home.

For more information regarding oil and gas development on BLM-administered land in Utah  please visit:

http://www.blm.gov/ut/st/en/info/more/Myth_vs__Reality/December_2008_Quarterly_Oil_and_Gas_Lease.html

Selma Sierra
BLM Utah State Director