Udall Wins Language Helping Oil Shale Counties and Surface Owners of Oil and Gas Development in Major Energy Legislation

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UDALL WINS LANGUAGE HELPING OIL SHALE COUNTIES AND SURFACE OWNERS OF OIL AND GAS DEVELOPMENT IN MAJOR ENERGY LEGISLATION

Two provisions sponsored by Congressman Mark Udall (D - Eldorado Springs) were accepted today in the House Natural Resources Committee during its debate on the Energy Policy Reform and Revitalization Act of 2007 (H.R. 2337) a major energy policy bill.

The first provision relates to oil shale developed in Colorado and other surrounding states. After all of the environmental analyses have been completed, Congressman Udall's provision would establish a fund to allocate the money from "bonus bids" from commercial oil shale leases. The money from this fund would be available to help the counties and communities that are directly impacted from oil shale leasing to address those impacts—such as roads, public services and other needs. The fund would not affect the existing system of allocating mineral development royalties to states to address impacts from such development, but would instead augment that system by providing supplemental funds from the "bonus bids" directly to affected counties.

"It reflects my concern about what large-scale commercial development of oil shale can mean for Colorado's Western Slope and the problems it could bring to that mostly rural part of our State," said Udall. "The amendment would allow additional payments to go to the most directly affected counties - those where the leases are located. In Colorado, this likely would include Rio Blanco, Mesa, and Garfield Counties - and it could include some others, in addition to several counties in our neighboring states of Utah and Wyoming. This amendment recognizes that while commercial oil shale has the potential to benefit the entire country, its development can bring substantial problems for the most immediately affected communities. That happened in Colorado in the 1980's, when we went through our last bout of ‘oil shale fever.' My amendment recognizes that it can happen again, and that we should learn from that experience and be ready to help."

The second provision is would add additional land owner notice requirements whenever the federal government leases federal minerals underlying lands owned by a separate private surface owner (the so-called "split-estate" situation). H.R. 2337 includes a provision patterned after Cong. Udall's Western Waters and Farmland Protection Act (H.R. 1180) that would require more cooperation by oil and gas developers with surface landowners. Cong. Udall's amendment expended on this to require that before the federal agencies lease minerals, that it not only notify the surface landowner, but also those who may own conservation easements or hold special use permits on the related surface property. This allows these parties a chance to work with the potential oil and gas lessees to address and potential impacts to their property rights.

"This provision is intended to encourage a more cooperative relationship between the companies with the mineral leases and the surface owners, while still allowing mineral development to occur," said Udall. "We need to make sure that all owners of surface property rights are involved in leasing decisions and can help address impacts. That's what this provision will do."

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