For Release: November 3, 2004 CCal-05-16
Contact: Nora DeDios (661)391-6129 or Patty Gradek (661)391-6131

BLM Announces Oil and Gas Leases

The Bureau of Land Management State Office leased 10 parcels totaling 3,833 acres of Federal land in Kern and Kings Counties at its oil and gas lease sale Oct. 27. The sale netted $15,943.00 in revenue.

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. This sale was consistent with the 1969 National Environmental Policy Act (NEPA) and with the BLM's existing land-use plans, which guide management of all activities on BLM public lands.

BLM lease sales are competitive and conducted by oral bidding. For most Federal oil and gas leases, 50 percent of the revenues collected are returned to the states where the oil and gas activity occurs. In 2003, 36 states received a total of $1.1 billion as part of their share of Federal mineral revenues collected by the Interior Department's Minerals Management Service. The total revenue shared with the states last year, which was nearly 46 percent more than the amount distributed to them in 2002, represents the states' share of revenues collected from mineral production on Federal lands located within their borders, along with, in the case of certain states, any revenues from Federal offshore oil and gas tracts adjacent to their shores.

Nationwide, less than one percent of the acreage managed by the BLM experiences surface disturbance from oil and gas activity. To minimize such impacts (the "footprint") on the land, the Bureau analyzes the potential environmental effects from exploration and development before offering any leases for sale. All leases come with stipulations (general requirements) on oil and gas activities to protect the environment; stipulations can also include specific restrictions, such as limits on seasons when drilling can occur and restrictions on surface occupancy by oil and gas operators.

When an operator proposes exploration or development on a BLM-issued lease in California, the Bureau typically carries out a programmatic environmental review and determines the site-specific need for various types of impact-limiting or "mitigation" measures. These measures may include measures to control soil erosion and help curb the spread of weeds; the strategic placement of above-ground structures and machinery; the establishment of any necessary buffer zones so that oil and gas activity does not adversely affect certain types of habitat; and the location of access roads to protect wildlife.

The BLM carries out its land-management mission under the authority of the 1976 Federal Land Policy and Management Act, which directs the agency to manage the public lands for multiple uses while protecting the natural, historical, and other resources of these lands. Environmentally sound production of domestic energy from fossil and renewable resources is an important part of the BLM's multiple-use mission, and energy from Federally managed sources accounts for more than 30 percent of America's energy production. Government estimates indicate that Federal lands contain about 68 percent of all undiscovered U.S. oil and 74 percent of undiscovered natural gas.

The BLM, an agency of the U.S. Department of the Interior, manages more land - 261 million surface acres - than any other Federal agency. Most of this public land is located in 12 Western states, including Alaska. The Bureau, with a budget of about $1.9 billion, also administers 700 million acres of sub-surface mineral estate throughout the nation.

-BLM-