Sequestration could slow energy leases, reduce revenues

Posted: Mar 1, 2013

Written by

Great Falls Tribune
Oil pump

The Bureau of Land Management estimates there would be 300 fewer onshore oil and gas leases issued on its lands if budget cuts occur Friday, delaying prospective production from those lease tracts and deferring royalty payments to the treasury.

Likewise, delays in coal leasing will defer as much as $50 million to $60 million from the treasury for each sale delayed. The BLM shares revenues generated from both of these programs with local and state governments.

Development of oil and gas as well as coal on federal lands will slow down because of cuts in programs that issue permits for new development, plans for new projects, conduct environmental reviews, and inspect operations, the BLM said. Leasing of new federal lands for future development also will be delayed, with fewer resources available for agencies to prepare for and conduct lease sales.

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