American Oil and Gas Reporter - August 2023 - 20

IndustryDigest
the position. " New Mexico's oil and gas
industry continues to provide a bright
future, and I am committed to leading
our association toward a sustainable and
prosperous path, " she relates. " Together,
we will work tirelessly to create
innovative solutions that benefit both
our state and the environment and
address the opportunities and challenges
of our industry. " ❒
BLM Federal Lease Sales
Attract Middling Attention
WASHINGTON-The U.S. Bureau
of Land Management Wyoming State
Office conducted a competitive oil and
gas lease sale on June 30, selling 67 of
116 parcels covering 69,149 of 127,014
acres for $14.78 million. On the same
day, BLM's eastern states office sold all
129 acres it offered in Michigan and
Louisiana for $224,026.
Although federal law requires BLM
to hold quarterly oil and gas lease sales,
Wyoming Governor Mark Gordon
notes, this summer's lease sale was the
first in more than a year, as well as the
first sale conducted since Congress
passed the Inflation Reduction Act,
which includes provisions such as
increased bid minimums, nomination
fees, increased royalty rates and the
elimination of noncompetitive leasing.
" While I am pleased that a sale has
occurred, it comes with the recognition
that this is not even a quarter of a loaf, "
Gordon assesses. " Quarterly lease sales
have not been held, and the additional
costs to Wyoming oil and gas producers
have a chilling effect on the ability of
producers to bid. The fact that our
producers participated to the degree
they did is a credit to the Wyoming oil
and gas industry. Their efforts mean
Wyoming will continue to provide
energy for the nation, even though they
do so with increasing pressure from
Washington to give up. "
Initially, more than 250,000 acres
were proposed, but that was slashed
nearly in half, Gordon notes, and 49
parcels received no bids. In prior
years, many of these parcels could
have been sold through the
noncompetitive bid process.
According to Petroleum Association
of Wyoming President Pete
Obermueller, the government's move to
eschew noncompetitive leasing may
have suppressed industry interest. " I am
not sure it was used very much in other
places, but it was a pretty big tool in
Wyoming, " he said on the " Platts
Capital Crude " podcast.
Obermuller went on to express doubt
that the lease sale signaled an effort to
resume the legally-required leasing
schedule. " It does not seem like it's
going to get back on track, and I don't
think the Biden administration has any
intention of getting (lease sales) back on
track, " he said. " They don't show any
intention of complying with the Mineral
Leasing Act, which is why we, along
with the state of Wyoming, have filed
suit in federal court over that issue, to
try to force action there. "
The environmental assessment,
maps, parcel lists, notice of competitive
lease sale and proposed lease
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American Oil and Gas Reporter - August 2023

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