Watching Government Iogcc targets BLM's 'endangered snails'

With Patrick Crow from Washington, D.C. [email protected] Cristine Hansen, executive director of the Interstate Oil and Gas Compact Commission, has fired a broadside at the Bureau of Land Management. She told the Independent Petroleum Association of America's recent annual meeting that BLM has been moving at a snail's pace to implement an administration proposal to "devolve" its oil and gas inspection, enforcement, and environmental compliance responsibilities to states and Indian

Nov. 25, 1996

3 min read

Cristine Hansen, executive director of the Interstate Oil and Gas Compact Commission, has fired a broadside at the Bureau of Land Management.

She told the Independent Petroleum Association of America's recent annual meeting that BLM has been moving at a snail's pace to implement an administration proposal to "devolve" its oil and gas inspection, enforcement, and environmental compliance responsibilities to states and Indian tribes.

Progress has been so slow that a House committee recently demanded BLM develop a plan within 60 days for spinning off those functions (OGJ, Oct. 14, p. 30). BLM later replied that it could not comply in so little time.

Iogcc is ramrodding the issue for the producing states. Hansen told IPAA "we have not been able to get BLM to sit down with us and discuss that plan."

Less cost seen

Currently, BLM collects and administers federal leases and shares 50% of the royalties with the respective states, after administrative expenses are deducted.

States think they can perform those operations far cheaper, resulting in more revenues for both state and federal governments after the 50% split.

For instance, Hansel said BLM spends $1.7 million/year for its Oklahoma lease operations, but "there are almost no federal lands or leases in Oklahoma."

The sticking point seems to be that states want BLM to agree on a performance standard that would essentially merge the state and federal requirements, while BLM wants its own rules enforced.

Hansen insisted, "States are not interested in replicating the federal program."

She said independent producers would benefit from having to comply with only one set of regulations in a particular state-not federal and state.

She said the Interior Department apparently fears western states are using the talks to cloak some sort of a land grab.

Insincerity claimed

Hansen said BLM "wasn't sincere" in its initial devolvement proposals. "What they were offering the states wasn't what the states were interested in."

She said, "BLM is not negotiating with us. They're not interested in turning these programs over to the states.

"It was because of the reluctance of BLM that the states decided to get a little more aggressive.

"To BLM, the issue is money and jobs. There would be a need for fewer people if the states took it over."

She said as an example of its insincerity, BLM opened negotiations first with Maryland-which has only a gas storage field with 11 wells-and waited until last week to open talks with Wyoming, the state with the most production on federal lands.

Hansen said, "So far no state has said they're not interested, which I think has surprised BLM."

On another issue, Hansen said the 29 producing states that belong to Iogcc still plan to propose a national energy strategy, filling a void they claim exists at the federal level.

But Iogcc now plans to develop the policy through the National Governors Association, which is expected to begin work on it next year.