How is Oil and Gas Developed on Public Lands?

Land Use Plan
Every 10-15 years, federal land management agencies including the Bureau of Land Management and Forest Service must produce land and resource management plans. These plans guide future land management and, among other things, identify areas suitable for oil and gas development. Because it is impossible to predict future development scenarios accurately, these plans generally are speculative and do not include site-specific analysis of impacts. Many plans remain outdated. There are numerous steps to this process and several at which the public can provide input. Find out more about the land use planning process here.

Lease Nomination
Private companies nominate specific parcels of land for oil and gas development. The responsible federal agency reviews the nomination and, if it determines the land is suitable for development, the agency may hold a competitive lease sale for the nominated lands. No public participation or comment period for lease nominations exist. If serious objections arise to the leasing of public lands, the public's only recourse is to protest the lease sale to the federal agency. Even during an ongoing lease protest, however, the agency can continue with the lease sale.

Leasing
The federal land management agency sells leases to the highest bidder. Standard leases last 10 years.

Permitting
Before development can begin, the lease holder must file an application for a permit to drill with the BLM and secure other necessary permits. The federal agency reviews the application and completes an on-site visit before approving or modifying the application. Unless a categorical exclusion is employed, the National Environmental Policy Act (NEPA) generally requires the federal agency to produce an environmental assessment at this time.

Development
Once the federal land management agency approves the permits, development and production can begin.

Reclamation and Restoration
The last company operating a well in a project area is responsible for final reclamation of the well site and restoration of the land. Unfortunately, many old wells that no longer produce oil or gas remain on our public lands without proper reclamation or restoration ever taking place.