BLM Colorado | Minerals

U.S. DEPARTMENT OF THE INTERIOR

BUREAU OF LAND MANAGEMENT

Colorado



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Oil Shale

Oil shale is a domestic energy source with the potential to provide Americans with secure, reliable and affordable energy sources. Section 21 of the Mineral Leasing Act of 1920 (30 U.S.C. 241), authorizes the leasing of federal lands for the development of oil shale.

The oil shale lands managed by BLM Colorado are part of the largest known concentration of oil shale in the world – the Green River Formation. More than 70 percent of the Formation is on public lands in Colorado, Wyoming and Utah. The U.S. Geological Survey estimates that the Formation holds the equivalent of 800 billion barrels of recoverable oil. If so, this resource would be enough to meet U.S. demand for oil at current usage levels for 110 years.

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Oil shale and the Energy Policy Act of 2005

Following direction in the National Energy Policy Act of 2005, BLM Colorado has approved five Research, Development and Demonstration (RD&D) leases: three for Shell Frontier Oil and Gas Inc., and one each for Chevron USA and EGL Resources Inc. The RD&D leases grant rights to develop oil shale on 160-acre tracts of public land for lease. The initial term of the leases is 10 years with the option of extending up to five years with proof of diligent pursuit of commercial production. The leases also contain a preferential right to convert the RD&D, acreage plus adjacent acreage up to 4,960 acres, to a 20-year commercial lease once commercial production levels have been achieved and all requirements have been met.

Nationally, the BLM is also working on a Programmatic Environmental Impact Statement (PEIS) and Oil Shale Commercial Leasing Regulations. The PEIS will determine the alternative actions for commercial leasing and analyze the potential impacts to the human environment. BLM released the draft PEIS in late December 2007 for a 90-day public comment and review period. Individuals interested in viewing the draft PEIS can visit the ostseis.anl.gov website. Within 6 months of completing the PEIS, the BLM will publish the Oil Shale Commercial Leasing Regulations. The Regulations will help establish an oil shale commercial leasing system and regulate oil shale mining operations.