Oil and gas companies sue feds over leasing delays

Posted on October 20, 2010 by Bob Berwyn

A schematic gives a simplified idea of how we drill for natural gas.

Court case may heat up the battle over western energy development

By Bob Berwyn

SUMMIT COUNTY — Oil and gas companies have decided to play offense in the ongoing turf war over energy development on public lands in the West. The Western Energy Alliance, representing more than 400 oil and gas and oil producers and related businesses, filed a lawsuit in U.S District Court, charging the delays in the federal leasing program are illegal, not to mention costly for the industry.

Specifically, the alliance claims the U.S. Department of Interior has not met its obligation to issue leases within the legal deadline. The group claims that $45 million worth of leases are locked up in regulatory limbo, and also acknowledges that the lawsuit is a volley in tug-of-war over regulation and environmental protection versus energy development.

In a statement issued Oct. 18, the alliance charged that federal agencies — especially the Bureau of Land Management — are delaying permits, creating arbitrary stumbling blocks to project approvals, failing to issue leases and even canceling leases in some cases. (more…)

Filed under: BP Gulf oil spill, energy, Environment, gas drilling, oil drilling, Summit County Colorado | Tagged: , , , , , , , , , | Leave a Comment »

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