American Oil and Gas Reporter - March 2018 - 31

* Pneumatic controller equipment;
* Pneumatic diaphragm pump equipment;
* Storage vessel equipment; and
* Leak detection and repair.
The draft also indicates BLM plans to
make requirements of the 2016 final rule
conform to policies in effect prior to its
adoption with regard to:
* Gas capture;
* Downhole well maintenance and
liquids unloading; and
* Measuring and reporting volumes
of gas vented and flared.
BLM says it is not proposing to revise
the royalty provisions or the royalty-free
use provisions of the 2016 final rule.
Vice President Dan Naatz says the Independent Petroleum Association of America "welcomes BLM's efforts to revise
its rule making and to pursue a more
achievable regulation that serves to prevent
waste and conserve resources while encouraging energy development on America's public lands."
He adds, "The 2016 rule . . . is redundant of other federal and state rules designed to minimize methane emissions
on public lands and, in many cases, conflicts with effective state regulations."
In its Federal Register notice, which
BLM notes started a 60-day comment
period, the agency specifically requests
input on ways it can incentivize the capture, reinjection or beneficial use of
natural gas.
Leasing Memorandum
BLM says the purpose of IM 2018034, "Updating Oil and Gas Leasing Reform-Land Use Planning and Lease Parcel
Reviews," is "to simplify and streamline
the leasing process to alleviate unnecessary
impediments and burdens, to expedite
the offering of lands for lease, and to
ensure quarterly oil and gas lease sales
are held consistently in accordance with
the Mineral Leasing Act."
The IM may be viewed at
https://www.blm.gov/policy/im-2018-034.
It replaces IM 2010-117, which was
issued by BLM in May 2010. The purpose
of that memorandum was to increase
public involvement in developing master
leasing plans (MLPs) as well as collect
information on other natural resource
values before making leasing decisions
(AOGR, June 2010, pg. 18). It directed
BLM to change its policies regarding
public participation in potential lease
sales and required interdisciplinary reviews
of available data as well as on-site visits
to parcels before leasing.
That order "created duplicative layers
of National Environmental Policy Act re-

view," IM 2018-034 states. "This policy,
therefore, eliminates the use of MLPs.
BLM will not initiate any new MLPs or
complete ongoing MLPs under consideration as land use plan amendments."
Further, the IM says BLM will not
routinely defer leasing when waiting for
a resource management plan amendment
or revision to be signed. Rather, when
making leasing decisions, the agency directs its field offices to exercise discretion
consistent with existing RMPs and to
consult with Washington before deciding
to defer leasing any parcels.
The IM directs state/field offices to
hold quarterly lease sales when eligible
lands are available for lease, and states,
"BLM will no longer use a rotating schedule for lease sales as described in IM
2010-117."
The new IM authorizes state/field offices
to determine the appropriate form of NEPA
compliance documentation and directs that,
"If . . . the authorized officer confirms that
the proposed leasing action has been analyzed adequately in existing NEPA document(s) and is in conformance with the
approved RMP, a determination of NEPA
adequacy will be used to document NEPA
compliance for the leasing decision."
IM 2018-034, which BLM says is effective immediately, limits the public
protest period to 10 days, commencing
the day a sale notice is posted.
Dismiss Lawsuit
The Western Energy Alliance says
it is encouraged by the new leasing
memorandum. President Kathleen Sgamma, who at the time was director of
government affairs for the Alliance's
predecessor organization, the Independent Petroleum Association of Mountain
States, warned IM 2010-117 would
"create an endless cycle of analysis
that will serve only to slow energy development without commensurate benefit to the environment."
In August 2016, the Alliance challenged
BLM's rotating lease sales in the U.S.
District Court for the District of New
Mexico, pointing out that many states
were holding fewer than half of the quarterly lease sales required by law (AOGR,
September 2016, pg. 14).
In response to IM 2018-034, Sgamma
reports the Alliance has dismissed that
lawsuit. "Rotating sales meant that leases
in booming areas such as the Permian
Basin in New Mexico would come up
for sale only once in a year, whereas
areas where there was no interest would
result in null lease sales. If a company
caught the cycle wrong, it could result in
lease nominations taking a few years to
come up for sale," she remarks.
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American Oil and Gas Reporter - March 2018

Table of Contents for the Digital Edition of American Oil and Gas Reporter - March 2018

Contents
American Oil and Gas Reporter - March 2018 - 1
American Oil and Gas Reporter - March 2018 - 1
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American Oil and Gas Reporter - March 2018 - 3
American Oil and Gas Reporter - March 2018 - 4
American Oil and Gas Reporter - March 2018 - Contents
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