Those disappointed in a plan to manage 3.6 million acres of federal public land spread across Southwest Wyoming feel a reversal of fortune rising with recent efforts to steer the document back in the direction of more drilling.
The Rock Springs Field Office of the Bureau of Land Management notified cooperating agencies last week that it would move forward with amending the region’s controversial Resource Management Plan (RMP).
Critics of the plan include corporate leaders, the Petroleum Association of Wyoming, Gov. Mark Gordon and local county commissioners.
They are disappointed in the RMP’s approach to oil and gas drilling, and they point to recent research from the University of Wyoming as evidence that the current plan pushed through by the Biden administration will harm the state’s oil and gas industry.
The UW researchers concluded that while the BLM attempted to balance conservation with development in the RMP, the plan "has brought on significant debate among various stakeholders due to potential impacts on industries within the region, predominantly related to energy development."
A UW study reveals the RMP could cost the state up to $245 million in lost revenue over four years, with oil and gas production taking a major hit that could ripple through local tax coffers.
The Center for Energy Regulation and Policy Analysis (CERPA) posted these findings June 4, the same day Gov. Gordon issued a statement accusing the Biden administration of backing an RMP that harmed Wyoming’s energy sector.
“I am encouraged that this process is beginning,” said Gordon. “This is an opportunity to correct a flawed document, and I am confident that the process will be honest and responsive.”
Like an epic athletic competition headed into overtime, those watching from the sidelines look at this as a big deal for the future of energy development on public land in Wyoming.
Over A Decade
“There is a lot up in the air regarding regulations being pulled back and reevaluated at the federal level,” said CERPA Director Matt Fry. “The Rock Springs RMP has been a major discussion for over a decade, and it will be interesting to see if what is ultimately adopted is favorable to Wyoming.”
“We hope that this paper will serve as a valuable resource for those involved in the decision-making process,” Fry added in a statement. “Wyoming constituents from various interest groups invested significant time in providing input, and we want to ensure that any federal actions align with the best interests of Wyoming.”
Paul Ulrich, vice president at Jonah Energy, has tracked the RMP for more than 12 years and said the existing plan "clearly reflected the priorities of the (Biden) administration and clearly did not reflect the priorities of the citizens of Wyoming.”
"The economic loss, the job loss, the lost opportunities that the existing RMP brought to Wyoming, need to be fixed," Ulrich said.
The UW analysis found that various restriction scenarios in the controversial federal land plan could lead to revenue losses ranging from $40.8 million to $245 million through 2028.
Under the most restrictive scenario examined by UW researchers, oil production could decline by more than 100 million barrels and gas production by over 27 billion cubic feet through 2028.
The study examined three key restriction categories: fluid mineral closures, no surface occupancy designations and managing visual resources.
Economic Stakes
Ulrich suggested the potential opportunities for Wyoming’s oil and gas industry are significant if realized properly.
"If the opportunity we collectively see is realized, there's going to be significant tax income," he said. "There'll be additional good jobs. And that continues to build on itself as existing development expands.”
He noted that with modern technology, the industrial outlook for Southwest Wyoming continues to evolve and is different from even just a few years ago.
"We can be much more efficient with much less environmental impact than the original oil and gas ‘reasonably foreseeable development’ scenario that the BLM relied on for the original RMP contemplated,” Ulrich said.
Sweetwater County Commissioner Taylor Jones, whose county encompasses much of the planning area, said local officials learned of the amendment decision through U.S. Rep. Harriet Hageman's office.
Jones said the county had been fighting the plan since BLM chose to go in a "hugely detrimental" direction after years of stakeholder input.
"At that point with the (Biden) administration in place, they didn't care what we wanted in Wyoming or in Sweetwater County," Jones said. "Now we have a chance at this."
Jones said most constituents he's spoken with are optimistic about the amendment process, though he cautioned that the final outcome remains uncertain.
"There's now the possibility that we can have a reasonable resource management plan, whereas in the past that was just an impossibility," Jones said.
Public Divisions
The summary of comments on the original RMP is 149 pages long.
In it, industry representatives speak up.
Devon Energy, which operates in the area, emphasized that oil and gas development is "a principal or major use of public lands" under federal law and like other industry voices, warned against overly restrictive regulations that could harm local economies.
The Petroleum Association of Wyoming noted that energy development provides "millions of dollars each year in royalties, bonuses ad valorem and severance taxes" along with high-paying local jobs.
Companies stressed the need for flexibility in drilling techniques and opposed blanket requirements for directional drilling, arguing such decisions should be made on a case-by-case basis considering geological and economic factors. Several firms noted that modern drilling technologies allow operators to "do more with less impact" while reducing surface disturbance.
Environmental groups, however, called for stronger protections.
The Wyoming Outdoor Council requested that four large areas — Jack Morrow Hills, Adobe Town, Little Mountain and Cedar Mountain — totaling nearly 2 million acres be made unavailable for future oil and gas leasing.
The organization argued these areas contain "wilderness, geologic, wildlife, recreation, and archaeological values" incompatible with industrial development.
Conservation groups also raised concerns about hydraulic fracturing and water contamination, requesting comprehensive groundwater monitoring and restrictions on chemicals used in drilling operations.
The Wyoming Wildlife Federation called for mandatory timing restrictions during wildlife breeding seasons and "no surface occupancy" buffers around crucial habitat areas.
The controversy and argument over how to manage this huge 3.6 million-acre area isn’t over.
"We don't know exactly what this means and in detail,” said Jones, the Sweetwater County commissioner. "But just stay tuned.”
David Madison can be reached at david@cowboystatedaily.com.
