Group Challenges Another Oil, Gas Lease Sale

Western Environmental Law Center is challenging today's sale of 80 parcels of federal land in New Mexico and three other states.

FARMINGTON -- Western Environmental Law Center is challenging today's sale of 80 parcels of federal land in New Mexico and three other states.

It's the second protest filed by the Environmental Law Center on behalf of numerous environmental groups and individuals, and affects 80 parcels totaling 62,777 acres of federal land in New Mexico, Oklahoma, Kansas and Texas. Fifty-one parcels, or 43,169 acres, are in New Mexico.

The Bureau of Land Management tossed protests filed in April 2008 by Western Environmental Law Center and WildEarth Guardians to its April sale of 61 natural gas leases.

The result is the leases sold during the April 16 sale will be awarded effective Aug. 1 to the bidders who purchased them.

The two pro-environment organizations alleged federal laws mandated BLM undertake a series of complex analyses of the impacts to global warming and climate change from potential greenhouse gas emissions before opening up the 61 parcels for oil and gas development. Eighteen of the parcels are in San Juan County.

BLM's argument is that Environmental Assessments, prepared by BLM field offices, addresses greenhouse gas emissions during the lease sale process.

"The agency has taken, and will continue to explore, significant actions to reduce the amount of greenhouse gases released into the atmosphere," a BLM press release states. "BLM requires that operators minimize flaring and venting of natural gas during production operations ... BLM estimates that greenhouse gas emissions (in New Mexico) have been reduced by 50 percent or more since 1980."

Fifteen days before today's sale came Western Environmental Law Center's second protest on behalf of 24 organizations and individuals. Those represented include San Juan Citizens Alliance, whose New Mexico staff organizer, Mike Eisenfeld, is based in Farmington.

Eisenfeld's main issue is that the industry's emissions are not being analyzed, result in air pollution, lost product, and are wasteful.

"BLM seems to think that a cursory exam is OK, but we think if we don't get it done during the lease phase, it won't happen," he said. "They think they can take action later and mitigate the problems, but they don't even know what they have out there."

The protests, he added, are "the only real way we can get them to address this issue."

As it did the first time, WELC takes BLM to task for its failure to address global warming, climate change and the adverse consequence of that failure to environmental groups' concerns.

"We are thus compelled to emphasize, once again, that oil and gas production, processing, transmission and distribution activities emit greenhouse gas pollution into the atmosphere, contributing to global warming and climate change," the protest states.

It references the "spiderweb" of oil and gas infrastructure on the landscape, which it states must be addressed by BLM as it plans its oil and gas management decisions.

John Roe, principal engineer of Dugan Production Corp., said the company also watches BLM's properties offerings with drilling opportunities in mind. The continued protests on behalf of environmental groups, he said, indicate they will "use any avenue they can to slow the sales down."

"BLM said they did consider the (greenhouse gas) effects. Somewhere they have to balance the impact that's created by drilling versus the benefits derived," Roe said. "It would be to BLM's benefit to take action to make this stop happening."

Hanson Stuart, BLM's director of External Affairs, said exhibits comprising part of the latest protest are too big to comment on quickly.

"They total 10 inches thick of two accordion files," he said. "We can't assess them quickly. We will have to convene another meeting of field offices to examine them point by point."

The Santa Fe office of BLM supervises activities in New Mexico, Oklahoma, Kansas and Texas.

BLM's leases are awarded for a 10-year period. Royalties from the oil and gas harvested from the properties produce 12.5 percent royalties to the federal government, of which New Mexico receives 48 percent. Last year the state's share was more than $500 million.