BLM Scraps 2Q Oil and Gas Lease Sales

The Bureau of Land Management (BLM) has announced that it will not hold oil and gas lease sales in the second quarter (2Q) of 2021.

The BLM said the decision does not impact existing operations or permits for valid, existing leases, which it said continue to be reviewed and approved. It also noted that it remains committed to managing its programs in a way that restores balance on public lands, creates jobs, and provides a path to align the management of America's public lands with the nation's climate, conservation, and clean energy priorities. 

The decision to scrap 2Q lease sales comes amid the Interior Department’s ongoing review of the federal oil and gas program. This review is assessing, among other issues, whether the current leasing process provides taxpayers with a fair return for extraction of the nation’s oil and gas resources, how to ensure it complies with applicable laws, such as the National Environmental Policy Act, and the United States’ trust responsibilities, and how it will take into account climate change and environmental justice, according to the BLM.

The organization highlighted that, in recent years, courts have found the current leasing process in violation of various governing laws, invalidating both the BLM’s guidance and a number of lease sales. In connection with the review, the BLM said it will analyze and ensure that any future leasing complies with applicable law— including requirements for evaluating greenhouse gas emissions and climate change impacts—to better withstand administrative and judicial review.

The BLM stated that the Trump administration conducted a fire sale of public lands and waters, offering more than 25 million acres onshore during the past four years. Just 5.6 million of these were purchased, the BLM highlighted. Offshore, more than 78 million acres were offered for lease to oil, gas, and mineral development, and only five million acres were purchased, the BLM noted.

Part of the U.S. Department of the Interior, the BLM manages more than 245 million acres of public land located primarily in 12 Western states, including Alaska. It also administers 700 million acres of sub-surface mineral estate throughout the nation. Last month, the senate voted to confirm Debra Haaland to lead the Department of the Interior.

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