Jonah Energy ties its employees' compensation directly to reducing emissions from company operations, the company's vice president said Thursday as Wyoming leaders lined up to condemn a federal ruling that threw out approval for the future of the Jonah Field.
The ruling cites Clean Air Act impacts for halting a large 3,500-well Jonah project.
Jonah Vice President Paul Ulrich said the Jonah Field proper is nearing the end of its development life, making the Normally Pressured Lance Project that’s the focus of the ruling critical to the company's future.
"Our future was NPL," he said on the “Cowboy State Daily Show With Jake” on Thursday morning. "I can't overstate how damaging this could be for the future of the oil and gas industry in the state."
He also said the company’s environmental track record is excellent.
"I'm very proud of what Jonah's been able to accomplish the last decade in our emission reductions," said Ulrich. "It's led us to be one of the leaders globally in the industry."
Ulrich said the company earned a Level 5 gold standard rating from the Oil and Gas Methane Partnership 2.0, which he described as the most comprehensive emissions reporting and reduction framework in the global oil and gas industry.
The company voluntarily obtained air permits from the Wyoming Department of Environmental Quality for its drill rig fleet — permits that weren't legally required, Ulrich said.
Still, the Interior Board of Land Appeals (IBLA) on Tuesday vacated the Bureau of Land Management's 2018 approval of the Normally Pressured Lance Project, which would have authorized up to 3,500 wells on 141,000 acres west and south of the existing Jonah Field.
"This decision stems from our voluntary commitment to obtain permits from the state of Wyoming that weren't legally required because we felt it was the right thing to do in demonstrating that we were serious about reducing our emissions," Ulrich said.
"And these types of efforts should be rewarded, certainly not contorted into a legal liability,” he added
Ulrich said the company is evaluating potential next steps, including asking the IBLA to reconsider.
"We're looking at all of our legal options, up to and including asking the IBLA to reconsider this broad-brush decision," Ulrich said. "We fully expect the BLM and the state of Wyoming to follow suit."
He criticized the judges for vacating the entire decision rather than sending specific issues back to BLM for correction.
"A more reasonable path would have been to remand this portion of the decision for reanalysis to the BLM," Ulrich said. "I'm very confident in BLM's ability to answer this effectively and work with us and work with the state of Wyoming."
Environmental Response
Rebecca Sobel, climate and health program director at WildEarth Guardians, which brought the seven-year legal challenge, said Interior Secretary Doug Burgum does have the authority to overturn an IBLA decision because it is an administrative court within his agency.
"But that is a very, very rare thing that would happen because again, we're dealing with an administrative referee in the IBLA," Sobel told Cowboy State Daily. "If there were another appeal of this, it would go back to federal court."
"The interesting thing about the Clean Air Act is it's not political," insisted Sobel. "It's about math. You measure air pollution, the math doesn't lie."
Sobel continued, saying that the IBLA “hasn't invented new rules. It just applied existing Clean Air Act requirements. … This ruling says follow the law, show the math, protect Wyoming's air and land. It doesn't shut anything down permanently."
Others Respond
Gov. Mark Gordon called the decision “wrong-headed" and vowed to fight it.
"This action is unwarranted and misguided," said Gordon. "It demonstrates we have more work to do to bring wisdom back to the federal government.”
Gordon added that, "Wyoming will aggressively pursue all options available to us to ensure this decision does not stand and to protect the state's authority over air quality within our border."
U.S. Sen. John Barrasso, R-Wyoming, called the decision "absurd" and a direct threat to Wyoming's energy future.
"Jonah Energy has a long and successful track record of balancing energy development with environmental stewardship," Barrasso said. "With 3,500 planned wells, the Normally Pressured Lance Project would tap trillions of cubic feet of natural gas, create jobs, and generate billions of dollars in royalties for communities in our state. We will keep fighting to ensure this vital energy project moves forward."
His Republican Wyoming colleague U.S. Sen. Cynthia Lummis said the decision "undermines state authority and rewards out of state environmental extremists."
"Jonah Energy went above and beyond during this process and for years has been a leader in reducing emissions," Lummis said. "This shortsighted decision by the IBLA certainly warrants reevaluation."
Agency Review
The BLM office in Cheyenne told Cowboy State Daily it is reviewing the decision and considering next steps.
"Any potential future remedy may include additional environmental analysis and opportunities for public involvement," the agency said in a measured statement released Wednesday in response to the IBLA decision.
Offering a more robust rebuttal, the Petroleum Association of Wyoming said it is "appalled" by the ruling.
"This decision puts the whole project at risk, jeopardizing Wyoming jobs and millions of dollars that fund K-12 education and so much more," said Ryan McConnaughey, vice president and director of communications for PAW.
"Sublette County operators, like Jonah Energy, are globally recognized for their work in air monitoring and emissions controls," McConnaughey said. "Their work has resulted in Sublette County meeting or exceeding federal ozone standards for years."
David Madison can be reached at david@cowboystatedaily.com.
