CHAPTER 3 THE FEDERAL ONSHORE OIL AND GAS LEASING REFORM ACT OF 1987: ISSUES TO BE RESOLVED BY BLM

• Jurisdiction: United States

Federal Onshore Oil and Gas Leasing Reform Act of 1987
(Mar 1988)
CHAPTER 3
THE FEDERAL ONSHORE OIL AND GAS LEASING REFORM ACT OF 1987: ISSUES TO BE RESOLVED BY BLM
John F. Shepherd
Holland & Hart
Denver, Colorado

1. How will BLM determine which lands to offer for competitive leasing?

a. The Act does not require BLM to offer all available lands.

b. Lands are not available for noncompetitive leasing until they are first offered for competitive leasing. § 5120(a).

2. Does the $2 minimum bid requirement apply to gross or net acres? This is important where the U.S. owns less than a 100% interest in the oil and gas.

a. Safe approach is to assume gross acres, but BLM should address this in its regulations.

3. When will lands not receiving a minimum bid be eligible for noncompetitive leasing?

a. The Act states that the lands shall be offered "promptly" within 30 days. § 5102(a). BLM could make the lands available the day after the lease sale, or it could conceivably wait the full 30 days.

b. Will the lands be continuously available for over-the-counter noncompetitive leasing, or will BLM only make the lands available periodically through simos or the like?

4. What kind of noncompetitive...