U.S. to speed approval for oil, gas exploration on federal land

[thackney]

U.S. to speed approval for oil, gas exploration on federal land
https://www.reuters.com/article/us-usa-oil-permit-idUSKBN19R2U3
Jul 6, 2017

U.S. Interior Secretary Ryan Zinke on Thursday signed an order to hold more lease sales and to speed up approving permits to explore for oil and gas on federal land, a process he said got bogged down under former President Barack Obama.

The order is the latest move by the administration of President Donald Trump to make it easier to drill and mine on federal land, which Zinke said is a source of income for the government.

The Interior Department's Bureau of Land Management is supposed to take 30 days to review applications for permits to drill but Zinke said the average time for processing in 2016 was 257 days.

"I'm directing the BLM to conduct quarterly lease sales and address these permitting issues," Zinke said in a statement. "We are also looking at opportunities to bring support to our front line offices who are facing the brunt of this workload."

There were 2,802 permit applications pending as of Jan. 31, with three quarters of them filed in five field offices in Wyoming, Utah, North Dakota and New Mexico.

On a call with reporters, Zinke did not say how long this streamlining process would take.

"This is not going to be done overnight. What we don’t want is unintended consequences," he said.

Environmental groups criticized the announcement and said that companies have already leased vast amounts of public lands but have held off on drilling due to record low oil prices.

"With historically low gas prices, these companies aren’t using millions of acres of leases they already have, so there’s no reason to hand over even more,” said Chris Saeger, executive director of the Western Values Project....

[txradioguy]

"With historically low gas prices, these companies aren’t using millions of acres of leases they already have, so there’s no reason to hand over even more,” said Chris Saeger, executive director of the Western Values Project....

Leases that are 50 years old aren't producing the amount of oil needed moron.  And the ones that aren't on Federal land that are producing...you and the rest of your tree hugging brethren are trying to block pipelines from them to the refineries.

[IsailedawayfromFR]

Leases that are 50 years old aren't producing the amount of oil needed moron.  And the ones that aren't on Federal land that are producing...you and the rest of your tree hugging brethren are trying to block pipelines from them to the refineries.

As a mineral interest owner, one leases acreage more than once to continue getting bonuses for companies who do not perform under the lease terms.  Why not allow the federal government to get more money?

[montanajoe]

While I think this is a good idea I doubt it will make much difference until there is a substantial increase in the price of oil...

[corbe]

    The majority of the GOOD News these days seems to be coming out of EPA, Energy and NOW Interior, I am thankful to the President for making this possible.  This is already having positive ramifications across the National and even the Global landscape.

[Smokin Joe]

As a mineral interest owner, one leases acreage more than once to continue getting bonuses for companies who do not perform under the lease terms.  Why not allow the federal government to get more money?

There is a clause in every oil and gas lease that holds the lease "by production".

In a nutshell, they keep the lease so long as they are producing oil and/or gas.

The mineral rights owner gets the initial lease payment, and royalties on oil or gas produced, a percentage that varies from 12.5% to as high as 20%, depending on the terms of the lease.

If the oil company doesn't produce oil and/or gas (or at least start drilling, depending on the terms specified) by the end of the lease term, the mineral rights revert to the owner who can lease them out to another company.

[Smokin Joe]

While I think this is a good idea I doubt it will make much difference until there is a substantial increase in the price of oil...

Another Factor is the Methane Rule the Congress failed to kill. The EPA will have to remove that, too.

Expect resistance from the usual ecowhackos.

[IsailedawayfromFR]

There is a clause in every oil and gas lease that holds the lease "by production".

In a nutshell, they keep the lease so long as they are producing oil and/or gas.

The mineral rights owner gets the initial lease payment, and royalties on oil or gas produced, a percentage that varies from 12.5% to as high as 20%, depending on the terms of the lease.

If the oil company doesn't produce oil and/or gas (or at least start drilling, depending on the terms specified) by the end of the lease term, the mineral rights revert to the owner who can lease them out to another company.

and the same holds true of federal lands.

some being considered for lease have been leased before and leasehold lapsed.

Why not go ahead and get another bonus on them for taxpayers if you can?

[IsailedawayfromFR]

While I think this is a good idea I doubt it will make much difference until there is a substantial increase in the price of oil...

Since the federal mineral leasehold comprises 2.5 billion acres, do you think that at least some of this must have some pretty promising opportunities, even at low oil prices?

Or are you taking the argument that since prices are low we save it for extracting at higher oil prices?

[montanajoe]

Since the federal mineral leasehold comprises 2.5 billion acres, do you think that at least some of this must have some pretty promising opportunities, even at low oil prices?

Or are you taking the argument that since prices are low we save it for extracting at higher oil prices?

Not making an argument.  Economics, e.g. supply and demand will determine when this will pan out. The last thing the world oil market needs right now is a great increase in supply but as Smokin Joe points out if all of the useless regulations can be done away with now we will be in much better shape when supply tightens as it always does...

[Smokin Joe]

and the same holds true of federal lands.

some being considered for lease have been leased before and leasehold lapsed.

Why not go ahead and get another bonus on them for taxpayers if you can?

If the lease has expired (lack of production), the lease should go up for auction again. Cut a new deal.

I do not approve of changing existing lease terms which have already been set by contract and held by production or which have not expired yet. That flies in the face of contract law, and has a distinctly Venezuelan taint.