Colorado
For Immediate Release: February 14, 2008
Contact: Steven Hall 303-239-3672
Jaime Gardner 303-239-3681
James Sample 303-239-3861
BLM Colorado’s February 2008 oil and gas lease sale nets $3.9 million
DENVER Today, the BLM Colorado State Office sold 35 parcels of 35 offered at its quarterly oil and gas lease sale, totaling 24,835 acres of public lands. The high bid, for a 45-acre parcel in Garfield County, was $3,100 per acre; the high total bonus bid was $864,000, for a 360-acre parcel, also in Garfield County. The lease sale earned $3.9 million in proceeds, of which 48 percent will go to the State of Colorado. The State received $123 million in Fiscal Year 2007 from royalties, rentals and bonus bid payments for all federal minerals (including coal).
“Natural gas production from Colorado’s federal lands continues to play an important role in meeting the nation’s energy needs,” said Duane Spencer, BLM Colorado Acting Deputy State Director for Energy, Lands and Minerals. “Our focus is on smart up-front planning, solid implementation of best practices and working with industry to reduce environmental impacts.”
Land-use plans, which govern all BLM-managed lands, involve an extensive environmental review process that determines which lands will be available for specific uses, and what conditions will be applied to minimize impacts. The public has opportunities to provide input throughout the process. BLM also consults with other federal, State and local agencies, environmental groups and industry throughout the land-use planning process.
When preparing or revising land-use plans, or when parcels are nominated for leasing, the BLM considers available new information to determine whether any significant new circumstance or impact has occurred since the completion of the most recent land-use plan. The parcels offered for lease in this sale were analyzed individually to determine whether the existing environmental analysis was adequate.
Leases for oil and gas development come with general requirements to protect the environment from adverse impacts; additional site-specific stipulations are also included, such as limits on seasons when drilling can occur and restrictions on surface occupancy by oil and gas operators. These stipulations protect resources and values such as wildlife habitat and scenic vistas. Once an operator proposes exploration or development on a BLM-issued lease, the Bureau conducts further environmental analysis to determine what impact-limiting measures are needed.
“Protections are in place to minimize potential impacts from oil and gas exploration, development and production.” said Spencer. “It’s important to remember that energy development and protection of natural resources are not mutually exclusive. BLM ensures that the development of energy resources is done in an environmentally sound manner on all lands we manage.”
BLM Colorado notifies the public of each land sale through the media, internet and other means. Anyone may file a protest on a parcel nominated for inclusion in a lease sale; however, all protests must contain the specific serial number of the parcel being protested and must have been received via mail or fax at the Colorado State Office by 4 p.m. (close of business), on January 30, 2007 to be considered. This policy allows the Bureau to review protests in advance of the sale, provides for an appropriate announcement of protests at the sale, and helps the agency meet its statutory deadline for issuing leases. All parcels in this sale were protested. Protested parcels are still offered for bid, although bidders are notified that BLM will not issue a lease until the protests are resolved.
BLM manages more than 8 million acres of public lands for multiple uses in Colorado, as well as over 27 million acres of sub-surface mineral estate. The Mineral Leasing Act of 1920 and the 1987 Federal Onshore Oil and Gas Leasing Reform Act authorize leasing of federal oil and gas resources; the 1987 law, which amended the Mineral Leasing Act, requires each BLM state office to conduct oil and gas lease sales on at least a quarterly basis where there is an interest in such sales. The degree of interest is driven by market demands. In addition to overseeing mineral leasing on BLM public lands, the Bureau also administers mineral leasing on all other federal lands.
Under the 1976 Federal Land Policy and Management Act, the BLM's multiple-use mission is to sustain the health and productivity of the public lands for the use and enjoyment of present and future generations. The BLM accomplishes this by managing such activities as outdoor recreation, livestock grazing, energy production and mineral development, and by conserving natural, historical, cultural and other resources on the public lands.
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