Roundtable Letter to Sec. Ken Salazar on Recent Decision to Pull Oil & Gas Leases in Utah
Western Business Roundtable
The Honorable Ken Salazar
Secretary
U.S. Department of the Interior
1849 C Street, NW
Washington, D.C. 20240
Dear Secretary Salazar:
I am writing on behalf of the Western Business Roundtable to express our concern regarding the Department’s recent decision to pull 77 Bureau of Land Management (BLM) oil and gas leases in Utah, based upon the claim that insufficient consultation had occurred between the National Park Service (NPS) and the BLM prior to the regularly scheduled December 2008 sale.
A review of the public record, evidenced by a November 24, 2008 joint press release by BLM and the NPS, is clearly at odds with the Department’s reasoning in this decision. In short, the Department’s decision short-circuited many months of careful and deliberate work and stakeholder consultation by non-partisan civil service professionals from both Agencies.
For example:
-- In the November 24, 2008 joint press statement regarding the December 2008 Quarterly Oil and Gas Lease Sale by the BLM and the NPS, the Agencies outlined the significant consultation process that was followed in making lease these Utah lease determinations: “During subsequent discussions, the BLM district office managers and NPS park superintendents worked together to conduct a parcel-by-parcel review of these prospective lease offerings. Following those discussions, BLM Utah State Director Selma Sierra and NPS Intermountain Regional Director Mike Snyder met today in Salt Lake City to develop a common approach to resolving concerns about this lease sale.”
-- The joint press statement went on to say, that Sierra and Snyder “released a joint statement regarding their collaborative efforts” stating that “BLM and NPS are working toward resolving issues on lease parcels in question, as well as how to proceed with future lease sales. Our agencies restated their commitment to work together on future lease sales and remain in consultation and expect final resolution tomorrow.” Obviously the December lease sale went forward.
-- As further evidence of a consistent pattern of joint consultation and collaboration, the joint press statement announced that “NPS and BLM agreed to renew their 1993 memorandum of understanding regarding how BLM and Park Service work together on prospective lease offerings and are developing a draft of that agreement.”
Given this record, it seems clear that these leases were issued following substantial stakeholder outreach and input. Thus, the subsequent action by the Department to pull the leases sends a highly negative signal to American energy producers, just a time when our political leaders are encouraging greater energy independence. This decision also communicates to the public that political pressure by a small handful of anti-drilling activists can outweigh and disrupt otherwise legal and fair processes that are given high scrutiny by federal land managers.
I’m sure you understand that such a decision also will result in a devaluation of future lease sales because it significantly increases the economic and regulatory uncertainty for companies in future lease sales. This increased “risk premium” will lead to lower bids and reduced revenue to federal, state and local government jurisdictions.
We sincerely hope you will reconsider and reverse the Department’s decision in this matter. Doing so would send a powerful message that your Department, and the Obama Administration, stands behind fair and equitable leasing processes and that you support responsible, properly vetted energy development on public lands.
Sincerely,
James T. Sims
President and CEO
Western Business Roundtable
The Western Business Roundtable is a broad-based coalition of companies doing business in the Western United States. Our members are engaged in a wide array of enterprises, including: manufacturing; retail energy sales; mining; electric power generation and transmission; energy infrastructure development; and oil and gas exploration, development, transportation and distribution. We work to defend the interests of the West and support policies that encourage economic growth and opportunity, freedom of enterprise and a common-sense, balanced approach to conservation and environmental stewardship.
Attachment (1)
cc:
President Obama
Utah Congressional Delegation
Senate Energy and Natural Resource Committee Members
House Natural Resources Committee Members
Utah Governor Huntsman
Utah State Legislature
