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For Immediate Release
January 6, 2010

IPAA: Regulations Restricting Access to American Energy Resources Create De Facto Ban on Energy Development = Weakened Economy and National Security

WASHINGTON - Barry Russell, president and CEO of the Independent Petroleum Association of America (IPAA), issued the following statement today in response to Interior Secretary Salazar's announcement to increase regulations on oil and natural gas leasing on federal lands in 2010:

"The new regulations announced today by Sec. Salazar are not consistent with an American energy policy that provides more jobs and revenues and strengthens national security. They will further restrict access to oil and natural gas resources on onshore federal lands, which an overwhelming majority of Americans want and deserve.

"From 2008 to 2009, the Department of Interior issued roughly 40 percent fewer new oil and gas leases in the Intermountain West. It also collected less than one-tenth the revenue from oil and gas lease sales in 2009 than it did in 2008. These additional regulatory hurdles will only exacerbate these numbers in the future.

"The Bureau of Land Management (BLM) should not limit the scope of oil and gas lease offerings or stop the industry from nominating lands to be considered for possible leasing. America's independent producers, who responsibly drill 90 percent of the wells in the United States, realize that operating on federal lands requires a partnership with the federal land management agencies; however, the industry's expertise should be taken into account. It is, in fact, the thousands of small, entrepreneurial wildcatters who explore for the resources and are willing to take the risk to find and safely develop these resources.

Below are a list of IPAA's main concerns with the new regulations for oil and gas leasing on federal lands:

"While America's independent producers recognize the importance of coordinating with other interested parties when operating on federal lands, we do not see the need to further expand the consultation process that is already in place as it will only lead to more delay and confusion for small producers.

"The IPAA strongly supports the use of categorical exclusions outlined in the 2005 Energy Bill. Efforts to revise or only allow the use of categorical exclusions under "extraordinary circumstances" will significantly limit the ability of independent producers to utilize these important and common sense tools. We believe that decisions regarding oil and natural gas development are best made at the field office level rather than the top down approach being advocated in these regulations.

"This initiative will add great bureaucracy, delay and confusion to the oil and gas leasing process on federal lands. The current leasing process on federal lands works, and if small changes need to be made to the system, BLM has the ability to make those corrections.  The concept of developing a master leasing plan will only create the potential for litigation and protest on every oil and gas lease issued by the agency.

"We believe that energy production and environmental responsibility are not mutually exclusive. If any country is best suited for responsible energy development, it is America. Independent producers employ the best technology available to help us find, develop and deliver affordable energy while dramatically reducing our footprint. And it is America's independent producers who stand ready to deliver this reliable, affordable homegrown energy to Americans who are demanding it."