BLM Colorado November oil and gas lease sale nets $8.2 million

DENVER On Thursday, November 10, 2005, the BLM Colorado State Office sold 72 parcels (of 73 offered) at its quarterly oil and gas lease sale, or about 72,428 acres (out of the 72,868 acres of public lands offered). The lease sale earned $8,223,879 in proceeds, half will ultimately go to the State of Colorado, the other half to the Federal Treasury.

“Gas production from Colorado’s federal lands continue to play an important part in meeting the nation’s energy needs,” said Doug Koza, BLM Colorado Associate State Director. "However, our focus is on smart planning and working with industry to use best practices to reduce environmental impacts on public and private lands.”

All areas where parcels were offered for lease had land use plans which were developed with public input and review and which allow for energy development. When preparing land use plans, or when parcels are nominated for leasing, the BLM considers any available new information to determine if any significant new circumstance or impact has occurred since the completion of the most recent land use plan. All parcels offered for lease in this sale were analyzed on a case-by-case basis to determine whether existing environmental analysis was adequate.

Of the lands managed by the BLM, less than one percent of the acreage experiences surface disturbance from oil and gas activity. To minimize impacts on the land, the Bureau analyzes potential environmental effects from exploration and development before offering any leases for sale. “BLM ensures that energy resources are developed in an environmentally sound manner on all lands we manage,” said Koza.

All leases come with general requirements to protect the environment from oil and gas activities; specific stipulations also can be included, such as limits on seasons when drilling can occur and restrictions on surface occupancy by oil and gas operators. Such 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 and determines what site-specific, impact-limiting, or mitigation measures are needed.

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.

Parcels nominated by industry for inclusion in a lease sale can be protested. The sale notice is posted in the affected BLM field offices and the state office at least 45 days before the sale. Anyone can file a protest. All protests filed on nominated parcels will need to be received by the BLM at least 15 days prior to the lease sale in order to be considered. This policy allows the Bureau to review protests in advance of the sale, allow for an appropriate announcement of protests at the sale, and attempt to meet the statutory deadline for issuing leases. While these protested parcels may still be offered, bidders are notified that no lease will be issued until the protests are resolved.

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