Reform of On-Shore Oil and Gas Leasing

April 1, 1987 Resolutions

Number: 1987-06

 

WHEREAS, the leasing of federal oil and gas rights through the lottery and the over-the-counter leasing systems have contributed to fraud and abuse and deprived the public of fair market value for its resources; and

WHEREAS, the inability of the U.S. Department of the Interior to determine “known geologic structures” has resulted in only a small fraction of valuable oil and gas lands being leased competitively; and

WHEREAS, the speculation in oil and gas leases has been a primary cause of the overleasing of federal lands, far in excess of needs for exploration and development; and

WHEREAS, the widespread leasing of federal lands has made planning for, and management of, the impacts of oil and gas development upon wildlife and the environment extremely difficult; and

WHEREAS, the cumulative impacts from the development of oil and gas fields pose significant threats to the viability of big game populations, the recovery of threatened and endangered species, and other wildlife values of the public lands; and

WHEREAS, on-shore oil and gas leases are issued for lands with significant natural resources despite the fact that the land management agency has concluded that development and production of the oil and gas is incompatible with the continued viability of such natural resources;

NOW, THEREFORE, BE IT RESOLVED that the National Wildlife Federation in annual meeting assembled March 19-22, 1987, in Quebec City, Quebec, Canada, hereby declares that there is an urgent need for reform of the Federal Government’s on-shore oil and gas leasing system; and

BE IT FURTHER RESOLVED that the National Wildlife Federation believes that the following principles should be incorporated into any reform and revision of the laws and policies relating to the leasing of public land oil and gas resources:

  1. On-shore oil and gas leases should be issued competitively to ensure the receipt of fair market value, to curb fraud and abuse, and to discourage excessive speculation;
  2. On-shore oil and gas leasing should be conducted after the federal land management agencies have examined, consistent with the National Environmental Policy Act and other applicable laws, the potential adverse impacts from field development on wildlife and the environment, including cumulative impacts, and have reasonably determined how to prevent and mitigate such impacts;
  3. Increased revenues from obtaining fair market value for federal leases should be used to enhance wildlife and recreational resources, with a priority placed upon those facing the most significant impacts from development; and
  4. On-shore oil and gas leases should not be issued for wilderness study areas, campgrounds and recreation areas, crucial wildlife habitat, and other lands with significant natural resources when this non-commodity use is incompatible with eventual oil and gas development and production, unless off-site directional drilling is possible; and

BE IT FURTHER RESOLVED that any reform of federal on-shore oil and gas leasing laws and policies should require implementation expeditiously and in a manner which balances the Nation’s need for domestic energy supplies with the need to protect the wildlife, recreational and natural resource values of the public lands.