Applications for oil, natural gas exploration on public lands to get more scrutiny

By Stephanie Tavares

Wednesday, Jan. 6, 2010 | 2:46 p.m.

Applications for oil and natural gas exploration on public lands will be more thoroughly vetted from now on, Secretary of the Interior Ken Salazar announced today.

In Nevada, 86 parcels amounting to about 131,000 acres were leased to oil and gas developers by the Bureau of Land Management in 2009, reaping $870,800 for the BLM. Since 2007, BLM has leased out 1,012,521 acres in Nevada for oil and natural gas exploration..

Still, Nevada's oil and natural gas industry is small compared with its neighbors California and Utah and depends on out-of-state wells for fuel and electricity. About 70 percent of Southern Nevada's electricity comes from natural gas, most of it imported from the midwestern United States, and Southern Nevada's gasoline and jet fuel supplies come from refineries in California.

Under new federal guidelines, the Bureau of Land Management will establish an Energy Reform Team to create and implement several reforms meant to improve protection of land water and wildlife and reducing conflicts between energy developers and environmentalists.

“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,” Salazar said.

“We need a fresh look – from inside the federal government and from outside – at how we can better manage Americans’ energy resources. 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.”

The announcement is in response to the findings and recommendations of an interdisciplinary review team that studied the controversial 2008 oil and gas lease sale in Utah.

Under the new guidelines:

* Individual parcels nominated for leasing will undergo increased public participation, agency coordination, interdisciplinary review of available information, confirmation of Resource Management Plan conformance and site visits to parcels when necessary.

* Master Leasing and Development Plans for areas where intensive new oil and gas extraction is anticipated will have greater public involvement.

* The agency will emphasize leasing in already developed areas and will plan carefully for leasing and development in new areas. It will continue to accept industry recommendations regarding where to offer leases but will analyze impacts of leasing new areas in greater detail, including air quality, watersheds, wilderness, wildlife and nearby land use.

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 lawsuits filed to stop projects and enhance his agency's ability to resolve protests prior to leasing out BLM land.

The announcement was cheered by environmentalists, who praised Salazar for reining in 'Big Oil' and making an effort to protect public resources.

"Today's move represents yet another significant step toward a balanced, common-sense approach to energy development on our public lands," Sierra Club Executive Director Carl Pope said. "Secretary Salazar has taken down the 'for sale' sign and is now managing our public lands for the benefit of all Americans."