BLM

Fri, 2014-04-11 06:00Ben Jervey
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Oil Industry Cherry-Picks Drilling Data to Mislead Public on Federal Lease Programs

The oil industry and its well-compensated apologists in Congress like to complain that the Obama administration is stalling oil production on public lands. The problem with that argument: it’s demonstrably false.

While plenty of environmental advocates may wish that President Obama was actively working to keep the fossil fuel reserves underground, the data tells a much different story.

In fact, according to new data released by the Department of the Interior, the amount of crude oil produced on onshore federal lands in 2013 was the highest it has been in over a decade.

This hasn’t stopped the oil industry from “distorting and cherry-picking statistics,” in the words of the Center for Western Priorities, to argue for even fewer regulations and more lax permitting processes.

A Tuesday post on the The Daily Caller is representative of the oil industry's spin, and provides a tutorial in cherry-picking data.

The total number of oil and gas drilling leases issued in 2013 reached a nearly three-decade lows, according to the Bureau of Land Management. The bureau says it issued 1,468 drilling leases last year, totaling 1.17 million acres of federal land — the lowest figures since 1988, which is the oldest year for which the BLM has data.

Overall, U.S. oil production has boomed in recent years, but production on federal lands has been falling. The Congressional Research Service reports that oil production on federal lands fell from 1,731,500 barrels per day in 2009 to 1,627,400 barrels per day in 2012, and the total shareof crude oil produced on federal lands fell to 26 percent in 2012 from 33 percent in 2009.

Let’s unpack this a bit.

Fri, 2014-02-07 12:21Ben Jervey
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GAO Hiding Crucial Documents From The Public While Calling for More Transparency in BLM Coal Leases

On Tuesday, the Government Accountability Office released a much-anticipated report about the Bureau of Land Management's coal leasing program, revealing it has stiffed taxpayers over $200 million.

The GAO blames a lack of competition in the bidding process, reliance on outdated and incomplete methods to determine “fair market value” of the coal reserves, a disregard of coal exports and their impact on fair valuation, and a blatant lack of transparency in the leasing program.  

Senator Edward Markey, who had requested the GAO investigation in 2012 while he still served in the House, responded immediately to the report's findings. The GAO didn't address specifics on how much public revenue might have been lost by mismanaged leases and auctions.

Senator Markey explained that based on an examination of the report and other coal leasing documents that were not made public, his staff figured that the the BLM could have earned at least $200 million more for the American public if managed properly. 

Unfortunately, the coal leasing documents investigated by Markey's staff aren't available to the public, which the GAO claims is because of the inclusion of private business information. According to Ned Griffith of the GAO, the information in the report was labeled “sensitive but unclassified” by the Interior Department.

In other words, even though one of the major findings of the GAO report was a troubling lack of transparency, the office itself is shielding from public view these detailed documents about coal leases on public lands. 

Tue, 2014-01-07 14:11Steve Horn
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Days Before Casselton Oil Train Explosion, Obama Signed Bill Hastening Fracking Permits on ND Public Lands

On December 20, both chambers of the U.S. Congress passed a little-noticed bill to expedite permitting for hydraulic fracturing (“fracking”) on public lands in the Bakken Shale basin, located predominantly in North Dakota. And on December 26, President Obama signed the bill into law. 

Days later, on December 30, a Burlington Northern Santa Fe (BNSF) freight train owned by Warren Buffett carrying Bakken fracked oil exploded in Casselton, North Dakota. Locals breathed a smoky sigh of relief that the disaster happened outside the town center. In July 2013, a “bomb train” carrying Bakken oil exploded in Lac-Mégantic, Quebec, killing 47 people

Dubbed the “Bureau of Land Management (BLM) Streamlining Act,” the bill passed unanimously in the Senate as S.244 and 415-1 in the House as H.R. 767, with Rep. Justin Amash (R-MI) serving as the sole “nay” vote and 16 representatives abstaining. Among the abstentions were representatives Peter Defazio (D-OR), Henry Waxman (D-CA) and John Campbell (R-CA).

H.R. 767's sponsor is North Dakota Republican Rep. Kevin Cramer, who received $213,150 from the oil and gas industry prior to the 2012 election, and an additional $29,000 for the forthcoming 2014 elections.

Cosponsors include Wyoming Republican Rep. Cynthia Lummis ($109,050 from the oil and gas industry pre-2012 election, $28,500 in the 2014 election cycle), South Dakota Republican Rep. Kristi Noem ($95,501 from the industry pre-2012 election, $20,400 pre-2014) and Montana Republican Rep. Steve Daines ($124,620 pre-2012 election and $87,412 pre-2014).

S.244 is sponsored by Sen. John Hoeven (R-ND), who has taken $291,237 from the oil and gas industry since his 2010 election to Congress. Cosponsor Sen. Heidi Heitkamp (D-NDreceived $111,050 from the oil and gas industry since her 2012 electoral victory.

Sun, 2013-10-13 12:21Ben Jervey
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BLM's Coal Leasing Woes Continue: New GAO Report Coming This Month

More bad news is coming for the Interior Department’s coal leasing program. This month (or later, if the federal shutdown persists), the U.S. Government Accountability Office is expected to release findings from a year-long investigation into the Bureau of Land Management’s federal coal leasing program, which oversees the auction of coal tracts on publicly owned lands.

You’re forgiven if this sounds familiar. In July, another federal body – Interior’s own Inspector General – condemned the program, releasing a highly critical report that documented a number of flaws in the BLM’s Coal Management Program.

While we’ll have to wait for the GAO’s report to get into the details, it’s safe to assume that it will include serious criticism of the program that seems to be failing on every level. The Inspector General analysis examined specific lease auctions – in one case finding that the taxpaying public was stiffed about $52 million because the BLM was ill-equipped to figure out (or uninterested in figuring) “fair market value” for the coal in a particular tract – but this GAO report will look at the program as a whole, which was plagued by scandal in the early 1980s. Reforms were mandated as a result of a GAO report at the time, but two decades later, many of the changes demanded have still yet to be implemented.

Wed, 2013-10-09 18:00Ben Jervey
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Selective Shutdown: Congressman Raul Grijalva's Petition to Ban Drilling on Public Lands While Public is Locked Out

As the government shutdown drags well into its second week, the gates to America’s national parks, wildlife refuges, and national forests remain closed and the taxpaying public is denied access. Not everyone will be turned away at the gates, however: oil, gas, and coal companies that are already drilling and mining on our public lands can proceed with business as usual.

A quick survey of the contingency plans (see: Bureau of Land Management, Bureau of Ocean Energy Management, National Park Service) of various federal agencies shows how extraction can continue unfettered, even while the rest of of are shut out of our public lands. Today, there are 12 national parks with oil and gas drilling operations underway, and coal mining is widespread across BLM lands, particularly in the Powder River Basin of Wyoming and Montana. 

As Corbin Hair reported on SNL:

The Department of the Interior, which oversees oil and natural gas drilling as well as U.S. public lands, will furlough up to 58,765 of its 72,562 employees, according to its updated plan. National parks will close and reviewing new oil and gas leases will halt, but the DOI will continue monitoring existing operations.

“The majority of the personnel that are excepted are law enforcement, wildland fire, emergency response and security, animal caretakers, maintenance and other personnel that would be focused on the custodial care of lands and facilities and protection of life and property,” the DOI's plan said. On the outer continental shelf, “the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement would continue to ensure the safety of drilling and production operations and issue drilling and other offshore permits, however renewable activities and five year plan work would be terminated.”

At least one elected official recognizes this as unfair and unjust. On October 3, Representative Raul Grijalva of Arizona sent a letter to Secretary of the Interior Sally Jewell and to Secretary of Agriculture Tom Vilsack urging the officials to halt mining and extraction on public lands while the public itself was locked out.

Rep. Grijalva’s letter reads:

Thu, 2013-09-19 14:37Ben Jervey
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An End to Powder River Basin Coal Leases? Second Auction in Two Months Fails to Seal a Mining Deal

The Bureau of Land Management is having a hard time getting rid of our publicly owned coal. For the second time in two months, a federal coal lease auction resulted in no sales.

On Wednesday, the BLM announced that it was officially rejecting the lone bid on the Hay Creek II coal lease tract in Wyoming. The lone bidder, Kiewit Mining Properties, had offered a measly $0.21-per-ton of the estimated 167 million tons of mineable coal in the Hay Creek II tract. The BLM declared that the bid “did not meet fair market value” and rejected it.

Hey, at least we can’t accuse the BLM of literally giving away coal on public lands.

This failure to secure a suitable bid comes on the heels of last month’s stunning news that there were absolutely no bids for the auction of the Maysdorf II tract, also in the Powder River Basin in Wyoming.

If these two failed auctions represent a larger trend, it is that the market for coal has gotten so bad that even the BLM’s bargain bin prices are too high for industry to pay. And, yes, the BLM’s prices are cheap, as they’ve leased over 2 billion tons of coal in the Powder River Basin alone since 2011 at an average of around $1-per-ton.

That price point was criticized in a recent report by the Interior Department’s own Inspector General, which accused the BLM of failing to factor international markets and coal exports into their “fair market values,” and which calculated that for every cent that publicly-owned coal deposits are undervalued, American taxpayers get stiffed by $3 million.

Tue, 2013-08-20 14:02Ben Jervey
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Maysdorf II By the Numbers: BLM's Big Coal Giveaway Tomorrow

Update Aug 23: In a stunning development, there wasn't a single bid at the BLM auction, with Cloud Peak Energy passing up the chance to bid out of fear that it would not be profitable.   

Tomorrow, the Bureau of Land Management will sell off roughly 148 million tons of coal. The BLM is opening the sealed bids for the so-called “Maysdorf II” tract in the heart of the Powder River Basin in Wyoming. The coal will likely be sold to Cloud Peak Energy, which operates the adjacent Cordero Rojo mine, one of the nation's largest strip mine operations. 

Cloud Peak Energy's Tesoro Rojo mine, soon to be expanded. Video by Greenpeace.  

 

According to Joe Smyth of Greenpeace, who penned a great post putting this sale (and another, even larger coal lease scheduled for next month) in the context of President Obama's recent climate announcements, the coal will be sold for roughly $1-per-ton. That represents a deep discount below market rates, which is what you'd expect from a lease auction with only one bidder.

Sat, 2013-04-20 09:21Laurel Whitney
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Tim DeChristopher, Imprisoned For Nearly Two Years, To Be Released On Earth Day

Climate activist Tim DeChristopher is set to be released from prison on Earth Day, this Sunday April 21st, since being incarcerated on July 26, 2011.

Tim DeChristopher created quite a ripple in the activist community when he tried to buy millions of dollars of land in December of 2008 in order to stop the oil and gas industry from snatching it up at an illegitimate auction put on by the outgoing Bush administration. While the incoming Obama administration cancelled the auction, Tim was caught in the fallout, while the rest of the auctioneers presumably roam free.

He was slapped with two federal felony charges - one for making false statements and violating the Federal Onshore Oil and Gas Leasing Reform Act.

Tim's trial was pushed back 6 times over two years and was fraught with maddening plot twists. The judge refused to let Tim use the Necessity Defense or let the jury know crucial facts, including that the auction was illegal. Tim was also prohibited from testifying on how he acted on moral convictions relating to climate change.

His prison term was no less eventful. During March of last year, Tim was thrown in isolated confinement for two and a half weeks after writing correspondence that the Bureau of Prisons (BOP) deemed potentially harmful because it contained the word “threat.” It turned out he was only “threatening” to return a potential legal fund donation from a company whose ethics weren't aligned with his own.

Rumors went around that an unnamed Congressman had put in the order, but investigations never figured out if it was true.

Sat, 2012-11-17 12:21Steve Horn
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Former Clinton and Bush Cabinet Members, Now Oil and Gas Lobbyists, Expect Keystone XL Green Light

The Tar Sands Blockade of TransCanada Corporation's “Keystone XL South” continues in Texas, but former members of the Clinton and George W. Bush cabinets believe the northern half will soon be green-lighted by President Barack Obama. 

In a Nov. 13 conference call led by the Consumer Energy Alliance (CEA), an oil and gas industry front group, CEA Counsel John Northington said he believes a “Keystone XL North” rubber stamp is in the works by the Obama Administration. 

I think the Keystone will be approved in fairly short order by the administration,” Northington said on the call.

Northington has worn many hats during his long career:

[He] served in the Clinton Administration at the Department of the Interior as Senior Advisor to the Director of the Bureau of Land Management. Mr. Northington also served as Special Assistant to the Assistant Secretary for Land and Minerals Management with energy policy responsibility for the former Minerals Management Service and the Bureau of Land Management. Mr. Northington began his government service at the Department of Energy, where he served as White House Liaison, Chief of Staff for the Office of Fossil Energy and Senior Advisor for Oil and Natural Gas Policy.

After his tenure working for the Clinton Administration, he walked through the revolving door and became a lobbyist, representing many clients over the past decade, including the oil and gas industry. Northington has represented ExxonMobil, Devon Energy, CONSOL Energy, and Statoil. ExxonMobil, Devon and Statoil all have a major stake in the tar sands. 

Tue, 2012-05-08 22:20Farron Cousins
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Fracking Disclosure Proposals: Way Too Little, Much Too Late

The federal Bureau of Land Management (BLM) has finally decided to do something about the lack of oversight regarding fracking fluids. A new proposal by the agency would finally require the fracking industry to disclose the chemical cocktails they are injecting into the ground at fracking well sites. The only problem with the proposal is that it would only require disclosure after the chemicals were put into the ground, meaning that the potential for contamination wouldn’t change a bit.

ENS Newswire lays out the basics of the BLM proposal:
  

Now, the BLM proposes three new practices to protect public health, drinking water, and the environment. First, the agency proposes to require the public disclosure of chemicals used in fracking operations on federal and Indian lands after fracturing operations have been completed.

Second, the BLM proposes to require confirmation that wells used in fracturing operations meet appropriate construction standards. The agency says this would improve assurances of well-bore integrity to verify that fluids used in wells during fracturing operations are not escaping.

And third, the agency proposes to confirm that oil and gas operators have a water management plan in place for handling fracturing fluids that flow back to the surface.

While the proposal to force disclosure on fracking fluid contents is a step forward, the fact that they would still be allowed to be injected underground without disclosure is a step backwards.

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