US hunting ground off-limits to drillers
Upstream, Friday May 2
By Dann Rogers
Two years after the release of a US national energy strategy designed to boost domestic production, the industry still complains about restricted access to federal lands while environmentalists counter that a "for sale" sign covers most of the western states.
About one-third of the land in the US is controlled by the federal government and most of that is located in the west. The National Petroleum Council estimates that 63% of future natural gas resources in the west are under government lands.
"The intent of the federal government was clearly to use executive orders to streamline the well permit application process," says Lee Fuller, vice president of government relations for the Independent Petroleum Association of America.
"That hasn't happened because of a well-orchestrated litigation campaign by anti-development groups on resource management plans and environmental impact statements.
"We've heard that in some Bureau of Land Management (BLM) regional offices, up to 50% of their funding has been redirected from hiring more personnel to handle permits and put toward litigation support."
According to the American Gas Association (AGA), the increases in gas reserve estimates have not been matched by growth in ability to access those supplies and deliver them to consumers.
"It makes no sense for laws and regulations to promote greater use of natural gas for increased national energy independence and environmental reasons, while at the same time conflicting regulations hamper the ability of producers to bring enough supply to market to meet this growing demand," says AGA president David Parker.
One of the main battlegrounds is the Powder River basin in Wyoming and Montana, which is thought to hold up to 45 trillion cubic feet of coalbed methane gas.
The Department of Energy analysed activity on 29 million acres of land in the area, 16 million of which are owned by the federal government.
The study found that 1% of the resources were off-limits because they were under national parks and wilderness areas that are closed by statute. Another 29% are completely off-limits due to administrative actions by federal agencies. Some 38% of the gas resource is available, but with various types of leasing stipulations that prevent access during various lengths of time of the year.
The remaining 32% is available with standard lease terms, which still contain numerous environmental requirements.
The administration of President George W. Bush had forecast the drilling of 75,000 coalbed methane wells over the coming decade but a moratorium was imposed last year pending completion of another environmental impact statement (EIS).
"The EIS was completed on 18 February, but no decision has yet been announced," says Dru Bower of the Petroleum Association of Wyoming.
"We expect that result anytime, but under our rules if some group already challenged the EIS they have the right to contest it further in federal court.
"I expect a legal challenge if the EIS is approved."
Opposition to drilling is being spearheaded by a coalition of environmentalists and ranchers who say they want to protect private property rights.
"The Bush administration has welcomed energy companies with open arms -- offering speedier drilling proposals, easier access to oil and gas deposits on public lands, reduced royalty payments and environmental restrictions," says a report by the National Resources Defence Council.
An official from the Energy Department says the issue has become bogged down because different groups interpret the various studies on federal access differently.
"This isn't Iraq. We can't just impose the federal will on the states.
"The smoking gun to open these lands to production is probably a clear cut, credible study showing the amount of resources and restrictions on them.
"It will allow Washington to pressure the states into allowing more drilling." |
