Federal Government Could Slash Oil Lease Opportunities in a Top Producing State
By Kim Jarrett | The Center Square
(Worthy News) – The U.S. Bureau of Land Management’s updated Resource Management Plan for North Dakota could cost the state $34 million a year for the next 30 years, North Dakota officials said in a protest filed with the agency.
The plan announced in August bans oil and gas leased on 4 million acres, which is about 99% of federal lands in the state, according to Gov. Doug Burgum. Forty-four percent of federally-owned fluid mineral acreage would also not be available for leasing.
“The State is ranked 3rd in the United States among all states in the production of oil and gas,” the state said in its letter. “The State produces approximately 400 million barrels of oil per year and 1.1 trillion cubic feet of natural gas per year. Implementation of BLM’s preferred “Alternative D” will result in severe adverse economic impacts to the State, in addition to the significant interference with sovereign State functions.”
The policy violates the Federal Land Policy and Management Act of 1976 by seeking to regulate non-federal lands, according to the state. The plan would make it difficult to develop minerals located on State Trust Lands.
“The State holds title to the mineral, and in many cases also the surface, estates of these lands,” the protest letter said. “The Proposed RMP would do the same to large amounts of State and private lands. The State collects revenue from the use and management of State Trust Lands, including oil and gas development, to support its public education system. The State further collects revenue from oil and gas development on State and private lands to support education and its general fund.”
Burgum said he also plans to challenge the plan in an appeals process used by governors.
“This overreaching plan from the Biden-Harris administration threatens our nation’s energy security and puts the long-term reliability and affordability of our power grid at risk by placing thousands of oil, gas and coal acres off-limits to leasing,” Burgum said in a statement. “It’s also a huge missed opportunity for the federal government, which could earn billions of dollars from those leases and use that revenue to ease the burden on American taxpayers,” Burgum said. “Instead of driving up energy costs for consumers with this proposed RMP, we urge BLM to select an alternative plan that ensures proper resource development, respects state’s rights and is consistent with federal law, sound science and economic realities.”