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Allard Announces Anvil Points Certification

Press Release

Location: Washington, DC


Clean-up Certification Will Bring Millions of Dollars to Colorado

U.S. Sen. Wayne Allard (R-Colo.), announced today that the Bureau of Land Management (BLM) has taken the critical step of officially ‘certifying' that adequate funds are available for the clean-up of the Anvil Points site near Rifle in Western Colorado. This step allows Colorado to start receiving millions of dollars in royalty payments from the natural gas currently being generated from the Naval Oil Shale Reserve (NOSR). The area has already generated over $25 million in royalties this year, yet Colorado has not been eligible to receive revenue generated on the NOSR pending certification.

"Certification from BLM means that Colorado will now get our share of revenue from this development and that is excellent news," said Allard. "The national energy debate will undoubtedly continue, but I have spent years working with the Department of the Interior to cross this threshold and ensure that Colorado gets our share. The four or five hundred million dollars from these royalties over the next 20 years could fund many important needs for Western Slope communities and our state."

"Last winter, you asked that we review how we could meet the requirements more quickly so that Colorado could receive the economic benefits of mineral revenues," said Assistant Secretary Allred of Land and Minerals Management. "The Department has been working diligently since your request. Through coordination and hard work, certification has occurred. I want to thank you for your leadership on this issue."

Click HERE. to view the certification letter.

Allard has repeatedly emphasized the importance of the clean up to prevent Colorado's loss of royalties. The timing of certification is particularly important in light of an upcoming lease sale for the Roan Plateau, currently scheduled for August 14. This lease sale is anticipated to generate as much as $1 billion at the time of the sale in the form of bonus bids. Without the Dept. of the Interior certification before August 14, Colorado would have lost half of the generated revenue. Certification of the clean-up will ensure that Colorado will receive its' rightful half share of royalty revenue.

Allard is an advocate for taking the royalty sharing process one step further, offering a 2007 legislative proposal that would direct royalties to local communities affected by development. The estimated nine trillion cubic feet of recoverable natural gas under the federal lands in the Roan area, according to Allard, should represent revenue specifically for local western slope communities. Click HERE. for more information regarding Allard's legislation.

BLM estimates that federal revenue from oil and natural gas royalties and lease sales are expected to generate between $857 million and $1.13 billion over the next 20-years. The State of Colorado could receive an estimated $428 to $565 million as the state's share of federal royalties and federal leases.

"Development on top of the Plateau is the result of a lengthy and thoughtful planning process that has put the needs of Colorado first," said Allard. "The development is one of the most environmentally conscious plans ever created, representing over seven years of collaboration between local, state and federal officials. It will be conducted in a staged, ridge-by-ridge approach, and minimize wildlife habitat fragmentation."

Allard supports the BLM's plan to confine development on the Plateau to corridors along existing roads, limiting surface disturbance on top to one percent, or approximately 350 acres, at any one time. This phased approach to development encourages innovation in minimizing disturbance and reclaiming disturbed areas.

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