The Department of the Interior announced this week significant changes to oil and gas leasing procedures on public lands, further opening the door to energy development opportunities in Wyoming and across the nation.
The Department of the Interior introduced a streamlined oil and gas leasing process Tuesday designed to complete parcel reviews within six months, cutting previous timeframes that ranged from eight to 15 months nearly in half.
At the same time, Rep. Harriet Hageman passed legislation out of the U.S. House to expedite the appeals process when projects are denied.
"Under President Trump's leadership, we are ending the unnecessary delays and bureaucratic roadblocks that have held back American energy production for too long," said Acting Assistant Secretary for Land and Minerals Management Adam Suess.
"This policy puts us on a fast track to Energy Dominance — opening up more federal land for responsible development, cutting review times nearly in half, and sending a clear message that the United States is serious about job creation, low energy costs, and putting American energy first,” Suess added.
Industry Relief
The news comes as welcome relief to Wyoming's oil and gas sector, which has long advocated for what it describes as more efficient leasing procedures.
"We have been calling for a streamlined and transparent oil and gas leasing process for years,” said Ryan McConnaughey, VP and director of communications for the Wyoming Petroleum Association. “Current leasing decisions happen behind closed doors, with deferrals often being handed down without input or explanation.
“There are currently thousands of deferred acres in Wyoming with no direction on how to get them out of limbo. Given our state's reliance on federal lands for oil and natural gas production, we welcome the Administration's efforts to reduce roadblocks and unleash Wyoming's potential."
Under the updated policy, BLM will no longer defer parcels prior to completing National Environmental Policy Act reviews.
Instead, lease parcel reviews will be conducted simultaneously with the National Energy Policy Act compliance process, according to the department's announcement.
Addressing Backlogs
Steve Degenfelder, a landman with Kirkland Oil and Gas in Casper, noted there's significant demand for leasing in Wyoming because of the polices of the previous presidential administration.
"There is quite a pent-up demand for leasing considering the 606,000 acres that BLM deferred in the last fouryears, along with the 4-plus-million acres that is on their website as previously requested to be offered for leasing," Degenfelder said.
He emphasized that leasing represents just the first step in energy development.
"The leasing process starts years before drilling can ever commence because we still have to do geology, geophysics and engineering then look at capital availability along with rig, tubular and services availability,” he said. “It's a long process and not one that you just get a lease today and call a rig out tomorrow. But the first step is getting the lease in hand.”
Degenfelder also said the shorter turnaround is important for companies.
"Having a six-month time period from nomination to lease offering will be a welcome change from the Biden Administration," he said, though he expressed concern about implementation. "I hope the Trump administration has the buy-in from local staff or at least the ability to direct them or the process could be fraught with delays and/or lawsuits."
Alternative Reviews
The Interior Department is also offering expedited environmental review options that could dramatically reduce wait times for projects.
"BLM Wyoming continues to have conversations with oil and gas operators and other proponents regarding alternative NEPA opportunities," J. Elizabeth Peace, senior public affairs specialist at the Department of the Interior, told Cowboy State Daily. "At this time, there are no current projects in Wyoming using the alternative NEPA procedures."
These alternative procedures could reduce review time under the National Environmental Policy Act from years to as few as 14 days, according to the department.
Appeals Reform
Simultaneously, Hageman’s recent legislation is shaking up the administrative appeals process.
The House of Representatives passed Congresswoman Hageman's Expedited Appeals Review Act (EARA)on Tuesday.
The legislation aims to provide people and businesses appealing before the Department of the Interior's Board of Land Appeals (IBLA) an opportunity to file for expedited review, allowing them to more quickly to bring cases to court.
"The government works for the people, not the other way around," Hageman stated. "The EARA creates an alternative path for expedited review, allowing stakeholders to request an accelerated decision of their appeals within six months of the request."
Hageman earned praise from her colleagues for the bill.
“As of today, there are more than 650 backlogged appeals before the Interior Board of Land Appeals, some a decade old,” said House Natural Resource Committee Chairman Bruce Westerman, R-Arkansas. “Ms. Hageman’s bill will revive the process and ensure appellants get their day in court by requiring the board to issue final decisions in a timely manner. I thank her for her work on this bill.”
Renewable Uncertainty
The administration's energy policy changes appear to welcome clean energy projects on public land, though there are conflicting signals coming from the Trump administration.
On Wednesday the Interior Department announced a proposed rescission of rules governing solar and wind energy development on public lands.
"Eliminating the Biden administration's preferential treatment of unaffordable, unreliable 'intermittent' projects and dismantling excessive, one-sided restrictions on traditional energy sources like oil, gas and critical minerals will unlock the full potential of America's natural resources," said Secretary of the Interior Doug Burgum.
The rescission would eliminate rate reductions that previously favored renewable energy development while still allowing renewables "to play a part in achieving American Energy Dominance," according to the press release.
The BLM stated, “By rolling back policies seen as obstructive to traditional energy industries, the Interior is paving the way for greater innovation, job creation, and economic opportunity — while reaffirming its dedication to responsible stewardship of America’s vast public lands.”
How this evolving federal policy for energy development on public land will shake out for companies looking to develop wind and solar remains unclear.
The House Ways and Means Committee drafted a package this week that would begin phasing out the core clean electricity production and investment tax credits, as well as the nuclear production credit, after 2028.
The credits would be reduced to 80% in 2029, 60% in 2030, 40% in 2031, and eliminated entirely after 2031, according to the Tax Foundation.
Also, a class-action lawsuit filed by a coalition of 18 attorneys general representing 17 states and the District of Columbia continues. The lawsuit accuses the Trump administration of hindering the development of wind energy.
David Madison can be reached at david@cowboystatedaily.com.
