Swamp Stomp
Volume 16, Issue 36
The Obama administration is being taken to court by oil and gas producers. They allege that the “keep it in the ground” movement has caused a slowdown in their lease sales. The suit was brought to court by The Western Energy Alliance (WEA) on August 11, 2016 in the U.S. District Court for the District of New Mexico. They challenge that the Bureau of Land Management (BLM) has not held up part of the Mineral Leasing Act by not having quarterly oil and gas lease sales.
“Notwithstanding the bluster of special interest groups that disregard the contribution independent producers make to domestic prosperity and national security, the overlooked point is that the ‘keep it in the ground’ approach is inconsistent with controlling law,” said Mark Barron, a BakerHostetler attorney representing WEA. “With this lawsuit, we seek to ensure that Congress’ explicit legal directive — not cute lobbying slogans — drives federal land administration.”
Included in the complaint is a list of BLM state offices that the oil and gas industry believe have held lease sales too infrequently. Some of the examples included are the New Mexico state office that held two lease sales in fiscal 2015. In the 2016 fiscal year, the Montana and Dakotas’ office will hold a maximum of two lease sales. Though the Colorado office was slightly higher in fiscal 2015 holding three lease sales, they are only holding two in fiscal 2016. The oil and gas industry alleges that there needs to be at least four lease sales in a fiscal year according to the Mineral Leasing Act.
Those against the “keep it in the ground” approach used by the Bureau of Land Management say that holding inconsistent lease sales actually harms the environment.
“The failure to hold regular lease sales consistent with the Mineral Leasing Act’s mandate results in unnecessary delays for — and can completely halt — development of certain federal minerals,” BakerHostetler attorney Alex Obrecht said in a statement. “But more important, limiting leasing restricts operators’ ability to plan projects so that waste is reduced and development is executed in the most environmentally sensitive manner.”
Over 300 oil and gas producers and service companies that work in the West are represented by The Western Energy Alliance.
“Through protests and petitions, the Keep-It-in-the-Ground movement is trying to coerce BLM into violating the law by stopping all leasing on federal lands,” WEA’s Kathleen Sgamma said in a statement. “Yet without doing anything, activists could achieve the same goal just by leaving BLM to its own devices. Western Energy Alliance is simply asking the courts to compel BLM to follow decades-old law and hold quarterly lease sales in every oil and natural gas state.”
Do you agree with the “keep it in the ground” movement? Do you think there should be more frequent lease sales? Is the Bureau of Land Management violating the Mineral Leasing Act by holding less frequent lease sales? Who do you believe should win this case and why?
Source: Gilmer, Ellen. “OIL AND GAS: Industry Lawsuit Targets ‘keep It in the Ground'” E&E Publishing. E&E Publishing, LLC, 11 Aug. 2016. Web. 12 Aug. 2016.