The Department of the Interior (DOI) has received tremendous criticism about its rapacious oil and gas leasing program, which continues to target the West's most fragile lands even though far more permits have been issued than the industry can possibly drill. In response to that criticism, DOI in August 2004 produced a fact sheet, Producing Energy and Protecting Wildlife for America, that unfortunately contains a number of misstatements. Here are some point-by-point rebuttals to the fact sheet, which is available at http://www.doi.gov/initiatives/wildlife_energyfactsheet.pdf.

Mandatory Leasing?

DOI claim: "Congress requires that every 3 months the BLM offer to lease lands where 1) there has been interest expressed in leasing and 2) BLM's land use plan allows for the leasing. ..." 

Reality:  The Mineral Leasing Act requires that lease sales be held at least quarterly, but DOES NOT require that BLM lease any particular lands, whether nominated by industry or not. Rather, these lands "may be leased by the Secretary." The Supreme Court has held that the word "may" provides the Secretary the discretion whether or not to lease any given tract.  [Udall v. Tallman, 380 U.S. 1, 4 (1965)(the Mineral Leasing Act provides the "Secretary discretion to refuse to issue any lease at all on a given tract")]. Although Interior officials consistently ignore this discretion and assert that they are required by law to issue leases on the public lands, oil and gas leasing has been a discretionary activity under the Mineral Leasing Act since 1920.

BLM Leases Carefully?

DOI Claim:   "BLM leases carefully. Every lease contains a standard stipulation designed to protect air, water, wildlife, historic and cultural resources as well as require reclamation. Leases may also include any number of 1,000 additional stipulations to further protect important resources. Many of these lease stipulations are designed to protect wildlife and are a necessary part of producing oil and gas in an environmentally responsible way. BLM takes these stipulations seriously…"

Reality:   The Bush Administration has authorized sales of oil and gas leases in areas identified by the BLM itself as worthy of wilderness consideration. And policies issued by the Bush Administration discourage the BLM from imposing protective stipulations on federal oil and gas leases. For example, according to an "instruction memorandum" issued by BLM Director Clarke on July 28, 2003, "When reviewing lease stipulations…consideration must be given to the least restrictive constraint necessary to meet the resource protection objective.  Stipulations developed in land use plans many years ago may no longer be appropriate for meeting current environmental protection requirements…"  During the past three years, the BLM has allowed hundreds of "exceptions" (temporary waivers to protective lease stipulations) demanded by the oil and gas industry.

Number of Acres Under Production

DOI claim: "Less than one percent of BLM's surface acreage or the federal mineral acreage have oil and gas production ongoing." 

Reality:   In fact, 42 million acres (15 percent) of the 272 million surface acres managed by BLM are currently under lease and more than 11 million acres (or roughly 4 percent) are in production, based on 2002 figures.

The Price of Leases

DOI claim:  "Oil and gas leases are sold through competitive bids (not for $2 per acre)..."

Reality: The minimum acceptable bid for oil and gas leases established in Sec. 17(b)1(B) of the MLA is in fact $2/acre, and if there is no competitive bidding for lease tracts at the oral auction, the tracts are available "over the counter" the next day for $2/acre plus a $75 filing fee.

Where the Money Goes

DOI claim: …40% of the revenue from the BLM's onshore oil and gas program goes into the Land and Water Conservation Fund. 

Reality:  Not so.  No revenue from onshore oil and gas lease sales or royalties goes into the Land and Water Conservation Fund.  It goes instead into the "Reclamation Fund," an account at the Treasury Department established to fund Bureau of Reclamation water projects. (Royalty revenue from oil and gas wells on the Outer Continental Shelf, however, are distributed to the Land and Water Conservation Fund.)

Mandatory Best Management Practices?

DOI claim: BLM is now requiring every field office to consider requiring the use of certain "best management practices," known as BMPs, to reduce impacts on visual and other natural resources. If the BMPs are made part of the drilling permit and go through an environmental analysis they are MANDATORY." 

Reality: According to the June 22 DOI press release quoting Assistant Secretary Watson, "It is important to note that BMPs are neither minimum or mandatory standards…"