With WTI Oil at $113, The Onshore Permitorium Continues -- Includes Niobrara Plays

Link here.

The US Bureau of Land Management began its review of commercial oil sands and tar sands plans issued during President George W. Bush’s administration by publishing a notice of intent to prepare a programmatic environmental impact statement (PEIS) governing allocation of such resources in Colorado, Utah, and Wyoming. 

With the wording of intent, it's easy to see where this is headed.

It said BLM intends to take a hard look at whether it is appropriate to make this acreage available when “there are no economically viable ways yet known to extract and process oil shale for commercial purposes and Utah tar sands are not at present a proven commercially-viable energy source.” 

Several Bakken players have leases pending in or near the areas affected.  Whether they will be affected depends on the specific leases. 

It should go without saying that an entirely separate issue, the threatened sage grouse, is another consideration. 

The US Fish and Wildlife Service also published a notice in the Mar. 23 Federal Register of a petitioned finding to list the sage grouse as a threatened or endangered species, according to BLM’s latest notice. It said that the bird, which is found on some lands allocated for possible oil shale and tar sands leasing, was warranted for listing under applicable Endangered Species Act provisions, but the listing was precluded by higher priority listing actions. 

Apparently they will hold that one in their hip pocket if necessary. Yes, the on-shore permitorium continues. 

The desert tortoise issue was fast-tracked by the administration when it came to wind turbines. Just saying.