Q: What is the BLM doing today?

A: The Bureau of Land Management today released an interdisciplinary review of a report on an oil and gas lease sale conducted by the agency in Utah in December 2008.

Q: Why is the BLM issuing this report?

A: On Jan. 17, 2009, a federal district court temporarily restrained the BLM from issuing 77 oil and gas leases sold in the December auction. The court concluded that the plaintiffs who had sued to block issuance of the leases had established “a likelihood of success on the merits” regarding their claims that the sale violated the National Environmental Policy Act, the Federal Land Policy and Management Act and the National Historic Preservation Act.

On Feb. 6, Interior Secretary Salazar concluded that the issues raised by the court, along with other concerns that had been raised about the lease sale, merited a special review.  Accordingly, Secretary Salazar directed that the leases be withdrawn and bonus payments be returned to the bidders. He then requested that Deputy Secretary Hayes form a departmental team that would evaluate the sale and make recommendations regarding the matter.

Q: What did the interdisciplinary team look at?

A: The interdisciplinary and Deputy Secretary teams did the following: an examination of the administrative record that accompanied the auction of the 77 parcels; an inspection of the parcels in question via overflight or on-the-ground inspection; interviews of BLM, National Park Service, and other Interior officials involved in lease-related decision-making; a listening session with state and local officials and representatives; a public town hall meeting held in Vernal, Utah in May 26; and conference calls with industry representatives and conservation groups.

Q: What did the BLM and Park Service review recommend BLM do to improve its leasing program?

A: The review recommends that the BLM take a leadership role in developing a comprehensive interagency strategy to address energy leasing, development, and related air quality concerns for Utah and other western states.

The review also recommends: increasing the level of coordination and collaboration in dealing with oil and gas leasing and development, both at the Federal level and the state level; studying the use of interdisciplinary field reviews for all proposed lease sales; and improving interdisciplinary participation in identifying lease parcels to be offered.

Q: What did the review recommend be done with the 77 parcels?

A: Of the 77 parcels reviewed, the review recommends the following: leasing 17 of the parcels; deferral of 52 parcels; and withdrawal of 8 parcels.  Deferral means that the parcels might not be leased until necessary corrections are made to the associated leasing documents, or until conditions are such that leasing would assist in the orderly development of the oil and gas resource.   Deferral could also mean removal of the parcels from leasing.  The recommendation to remove 8 parcels from leasing was the direct result of field reviews that found that leasing was inappropriate due to critical resource values and /or the apparent lack of net benefit to be gained from leasing. 

Q: Will BLM reinstate the leases to the high bidders on the 18 parcels that the review recommends be leased?

A: In February 2009, the Secretary directed BLM to remove from further leasing consideration the 77 parcels addressed in the report.  BLM notified the successful bidders that the parcels were removed from consideration and all monies received for the parcels were returned.  Under these circumstances, BLM regulations require that the parcels be reoffered for leasing.  There is no provision for reinstatement.

Q: The Hayes report said the BLM team should determine which parcels would be reoffered to original bidders. Why isn’t this happening?

A: The BLM team did determine that 17 parcels could be reoffered without any deferral.  BLM regulations require that any reoffering be done through a competitive leasing process.

Q: What about the concerns that leasing in the area could degrade air quality around national parks and other sensitive areas?

A: The review also suggests that a number of parcels could be offered for sale without the development of additional air quality models; however, air quality studies were recommended for other groups of parcels. 

The review recommends that the BLM take a leadership role in developing a comprehensive interagency strategy to address air quality concerns related to energy leasing and development for Utah, and perhaps Colorado, New Mexico, Wyoming and Montana as well. Resource management plan decisions could subsequently be modified as they pertain to oil and gas development once the results of regional air quality models developed by this interagency group are made available.

The team also recommends that locations for regulatory air quality monitoring stations, and measurement parameters appropriate for these stations, be identified.

Q: What actions has the BLM taken to ensure that oil and gas lease sales aren’t sabotaged by disruptive bidders?

A: The BLM has taken short-term actions to better safeguard competitive oil and gas lease auctions from bidding activity that is disruptive and contrary to conducting the public’s business.  These efforts include: validating the identity of registering bidders; ensuring that bidders are responsible and qualified through the application of an enhanced bidder form; and instituting disincentives for submitting fraudulent or protest bids through enhanced language in lease sale notices, bidder registration forms, and use of formal billing and collection processes.