GMUG leases pulled from upcoming energy sale

DELTA —Several energy leases were pulled out of an upcoming sale by the U.S. Forest Service, pending decisions on how to manage Colorado’s roadless areas.

The Forest Service withdrew 15 lease parcels previously listed for competitive bid at the Aug. 14 Bureau of Land Management oil and gas lease sale.

The leases overlie the West Elk Coal Mine leases, and 11 of the 15 parcels are within an inventoried roadless area on the Grand Mesa, Uncompahgre and Gunnison National Forests.

The Forest Service wanted to postpone sale of the leases until completion of the environmental impact statement process for the Colorado Roadless Rule to avoid any potential conflict with the final decisions, officials said.

“We’re not talking about leasing and not leasing,” said Randy Karstaedt, Forest Service regional director of physical resources for the Rocky Mountain Region. “Why we’re waiting is to make sure the manner in which the capture of (methane) gas is authorized and stipulated is consistent with the roadless rule.”

He was optimistic that the leases would be made available following the environmental review process.

Citizen groups previously raised concerns about venting the methane into the atmosphere versus capturing it for energy use. New stipulations drafted as part of the leases would allow methane capture to happen.

Four parcels not in the roadless areas, but part of the postponed leases, were also pulled because the Forest Service wanted to offer the parcels as a block, Karstaedt said. “Once the Roadless Rule becomes final, we will make whatever changes are needed to the lease stipulations.”

When asked why the Forest Service did not pull the leases earlier, Karstaedt said, “We put together these leases and stipulations several months ago. Now we’re getting close to what’s going to be in the draft EIS and the Roadless Rule ... We’re just at a different point and time.”

The timeline for the entire EIS process will depend on the nature and volume of comments, which is very typical for a rulemaking and EIS, Karstaedt said. “Our goal is to get both done by the end of the year.”

In a joint statement, the BLM and Forest Service stated that they agree “providing for the capture and use of coal mine methane, using existing federal leasing authorities, is the right thing to do.”

Withdrawal of these lease parcels will not affect any current or planned coal mining operations at the West Elk Mine, according to the government agencies.

The Forest Service determines where oil and gas leases will be allowed within the National Forest System. The BLM manages the nation’s publicly-owned mineral estate, including the sale of federal mineral leases.

“They (Forest Service officials) wanted to make sure they take those into full account before they offer parcels for sale,” BLM spokesman Jim Sample said. “They decided just to defer leases until plans are done.”

The August sale will include 55,186 acres in 31 parcels in the Roan Plateau Planning Area. Leases on top of the Plateau will require a single federal unit and phased, ridge-by-ridge development, in which only one operator conducts operations on behalf of all lessees.

Contact Lisa Huynh via email at lisah@montrosepress.com