For Immediate Release: May 13, 2004
Contact: Hillerie Patton, 303-239-3671
Steven Hall, 970-244-3052
Vaughn Whatley, 303-239-3766

CO BLM May oil and gas lease sale nets over $6.6 million

DENVER - The Colorado Bureau of Land Management (BLM) today held its quarterly oil and gas lease auction, which included 70 parcels of public land covering 71,972 acres. The sale, which involved 52 bidders, netted over $6.6 million in total revenues -- making it the second highest revenue producing oil and gas sale that Colorado BLM has held.  It also marked the first time that 100 percent of the offered parcels sold.

The highest bid was $1,400 per acre for a 960 acre parcel in Garfield County totaling $1.344 million.  The State of Colorado receives 50 percent of the money received for the leasing rights, rental fees and royalties paid for the life of the leases. The State transfers a percentage of the funds to counties.

The Federal Oil and Gas Leasing Reform Act of 1987, requires BLM to offer lands nominated for lease on a quarterly basis.  BLM is mandated, by the Federal Lands Policy and Management Act, to manage the public lands for multiple uses -- which may include energy development -- under existing, approved land use plans developed with considerable public input, and extensive environmental analysis of the projected land uses.  Leasing decisions are made in accordance with these plans. 

To ensure conditions have not changed since the plans were finalized, the BLM reviews all nominated parcels on a case-by-case basis to determine whether existing environmental analysis is adequate.  Some parcels nominated by industry were not offered for lease in today’s auction because BLM concluded further analysis is needed.

Protections are in place to minimize potential impacts from oil and gas exploration, development and production.  “It is important to remember that energy development and protection of natural resources are not mutually exclusive on public lands,” said BLM State Director Ron Wenker.  “BLM ensures that development of energy resources is done in an environmentally sound manner on all lands we manage.”

For the May 2004 sale some industry nominated parcels reside within areas identified by the environmental community for wilderness consideration, commonly referred to by the term Citizen’s Wilderness Proposals (CWPs).  It is important to remember that the CWPs do not have any official designation.  They are not Wilderness areas designated by Congress, nor are they identified by BLM as Wilderness Study Areas.  The BLM’s authority to designate Wilderness Study Areas expired in 1993, and Wilderness Areas can only be designated by Congress. 

When preparing land use plans or revisions, or when parcels on CWP acreage are nominated for oil and gas leasing, the BLM considers available new information, such as wilderness surveys conducted by environmental groups, to determine if any significant new circumstances or impacts have occurred since the completion of the most recent land use plan. BLM policy allows managers to consider wilderness values as one component of multiple-use land management. 

The land use plans for all the areas where parcels were offered for lease, allowed for oil and gas exploration and production.  Furthermore, some of the areas proposed for wilderness designation by the environmental community already have been leased.  For instance, Hunter Canyon currently has 14 producing and temporarily abandoned gas wells, as well as existing mineral leases all within the CWP.  In addition, a previous wilderness inventory of Cow Ridge found the 15,330 acre unit lacks opportunities for solitude as well as primitive and unconfined recreation.  Cow Ridge also has two producing gas wells, as well as existing mineral leases.

"Even where lands are open under the existing land use plan, tracts are only offered after a thorough environmental compliance review is completed and any relevant new information is considered," said Wenker. "We take a hard look at new information, whether it’s threatened and endangered species, recreation issues, wilderness or whatever circumstances may have changed, to determine if tracts can be offered in compliance with the National Environmental Policy Act." 

"Many of the offered parcels also come with strict stipulations to protect other resources," he added.  “Oil and gas development is one of the most regulated activities on public lands.”

Energy use sustains our economy and our quality of life, but an imbalance exists between our energy consumption and domestic energy production.  The Department of the Interior has a key role in meeting the nation’s critical energy needs.  The BLM will continue to work with its partners to create greater opportunities for the responsible development of energy resources on Federal lands.

The Bureau of Land Management (BLM) manages 8.3 million acres of public lands in Colorado.  These lands are managed for a multitude of uses including, but not limited to, recreation, mining, wildlife habitat, energy development, livestock grazing, etc.  Along with these 8.3 million acres, BLM oversees 13.4 million subsurface acres for mineral development in the state.

-BLM-