GOVERNMENT

BLM plans to sell new oil and gas leases after moratorium

Apr 19, 2022, 10:07 AM
oil and gas leases...
Heater treaters used to process oil, gas and water produced from a well at a fracking site near Roosevelt are pictured on Sunday, March 13, 2022. Photo credit: Scott G Winterton, Deseret News

SALT LAKE CITY — The Bureau of Land Management plans to sell oil and gas drilling leases on 144,000 acres of federal land on June 28th.

It’s the first time the Biden administration has allowed lease sales since it took office.

The Salt Lake Tribune reports only one parcel of the land to be offered for leasing is in Utah, and it’s only 160 acres.

The Interior Department is responding to a lawsuit filed by oil and gas drilling interests. Its decision has drawn criticism from environmental groups, who blame the ongoing use of fossil fuels for climate change.

Those purchasing new leases will pay a significantly higher royalty for the oil and gas they produce. Oil industry leaders say the administration’s reluctance to lease federal land is contributing to higher fuel prices, although developing leases typically takes years and many leases sit undeveloped.

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BLM plans to sell new oil and gas leases after moratorium