Managing Natural Gas & Oil Resources on Federal Lands on Federal Lands Colorado Bureau of Land Management

How Did Federal Lands Become Available for Leasing? Historical Background-it isn’t new Leasing Laws – Mineral Leasing Act (1920) – Mineral Leasing Act for Acquired Lands (1947) – Federal Onshore Oil and Gas Leasing Reform Act (1987) – Energy Policy Act (2005) – Most provide for 50% royalty sharing with the State – BLM is responsible for all onshore oil and gas leasing of Federal lands – BLM has management responsibility for Federal and Indian onshore oil and gas operations (1983)

Leasing and the Federal Land Management Agencies Department of Interior – Bureau of Land Management Department of Agriculture – Forest Service Each Federal Agency makes its own determination on availability of lands for leasing and the conditions under which development may occur

The BLM Legislative Mission Federal Land Policy and Management Act of 1976 (FLPMA) – Unified Legislative Mandate for BLM – Lands Retained in Federal Ownership – Guidelines for Public Land Use Planning Development of Resource Management Plans/Environmental Impact Statements for each Field Office – Management on the basis of Multiple Use and Sustained Yield

Fast Forward to Today It all starts with a plan! Resource Management Plans (RMPs) outline uses of public land Federal and State agency involvement is KEY Public participation Reasonable Foreseeable Development (RFD) scenario - number of wells for cumulative impacts RMP identifies lands open to leasing and any stipulations, i.e. mitigating measures

Leasing Process Summary Competitive lease sales held quarterly Most parcels nominated Expressions of Interest (EOI) Adjudicative review Documentation of NEPA adequacy (DNA) & stipulation verification Other surface management agency involvement (Forest Service, other Federal, State) Posted 60 days before sale for public review In Mesa County, also posted on Mesa County web site—can access by legal description, assessor parcel number, or address

Leasing Process Summary, Cont’d Protest period - must be filed 15 days before sale Sale process - oral auction - any citizen or registered corporation can bid Minimum bid - $2 per acre Leases not issued until protests resolved Lease issued for 10 years-expires unless held by production Appeals to Interior Board of Land Appeals (IBLA)

Parcel Deferrals During the DNA review process, parcels are identified for deferral due to NEPA reasons. After lease sale notice, parcels may still be deferred based upon protest issues. What about during RMP revision? See Washington Office IM Change 1

What is a lease? Contract with binding terms Standard form – cannot be modified Provides: – Rights of and direction to lessee (private individual or company) – Direction to lessor (federal government) for administering operations on the lease

Operations on leases are subject to … Standard lease terms Land management plan guidance Lease stipulations Applicable laws