Guardians Calls for Halt to Auctioning Public Lands for Fracking in Nevada

Oil and Gas Industry: "Something very weird is going on in Nevada"

Denver—WildEarth Guardians today called on the U.S. Bureau of Land Management to immediately halt new public lands oil and gas leasing in Nevada, citing industry concerns that current interest is not legitimate and may be coming from disreputable companies. 

“With the oil and gas industry itself questioning why so much of Nevada is being targeted for fracking, we need to put the brakes on this sham process,” said Jeremy Nichols, Climate and Energy Program Director for WildEarth Guardians.  “The Bureau of Land Management has a duty to stand up for the American public, it really is time for a pause and a reassessment of whether any public lands should be leased period.” 

In a letter to Bureau of Land Management officials today, Guardians cited recent comments from the President of the Western Energy Alliance, a western U.S.-based oil and gas industry trade association, which called into question the legitimacy of oil and gas leasing in the State of Nevada.  

In response to “expressions of interest” submitted by purported representatives of the oil and gas industry, the Bureau of Land Management is currently weighing whether to auction off millions of acres of public lands for fracking in Nevada.  In a news article, the Western Energy Alliance President commented that these “expressions of interest” “do not appear to be from reputable companies.”  She also commented: 

“Something very weird is going on in Nevada...[t]he [expressions of interest]...do not reflect any industry interest.” 

An “expression of interest” is basically a demand from the oil and gas industry for the Bureau of Land Management to auction off public lands for fracking.  In response to “expressions of interest,” which can be submitted anonymously, the agency spends taxpayer dollars and agency resources to process them and ultimately offer the lands for sale.  

With purported oil and gas industry interests submitting millions of acres of “expressions of interest” that apparently are not legit, the Bureau of Land Management is effectively spending taxpayer dollars and public resources on what amounts to a sham. 

“This is about good stewardship of public resources,” said Nichols.  “For the Bureau of Land Management to allow disreputable companies to tie up its hands at the expense of taxpayers is an affront to the American public and a black mark on the agency’s integrity and credibility.” 

The State of Nevada is extremely marginal for oil and gas development.  Over the years, while the Bureau of Land Management has attempted to lease public lands for fracking, the agency has little to show for its efforts.  Currently, there are 627 leases covering 1,124,320 acres in the state, but only 37—or 2.4% of all leased acreage—are actually producing oil and gas. 

In June of this year, the Bureau of Land Management attempted to auction off 106 lease parcels, yet only three received any bids.  In March of 2017, the agency attempted to offer 67 parcels, yet only 20 received bids.  Most parcels were sold for $2.00 an acre, the lowest price allowed by federal law. 

“Whether this is out of control speculation or a malicious attempt by anonymous parties to tie up public resources, the Bureau of Land Management has to do something,” said Nichols.  “With industry itself questioning the wisdom of attempting to lease public lands for fracking in Nevada, something has to change.” 

Guardians called on the agency not only to halt new oil and gas leasing, but to reject all pending “expressions of interest” and to conduct a comprehensive assessment of whether oil and gas leasing should actually be allowed in Nevada.  Under federal law, the Bureau of Land Management has broad discretion to decide when and where to lease public lands for fracking.


 

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