BLM’s decision could affect oil industry

Dave Galt, executive director of the Montana Petroleum Association, feels a recent decision by the Bureau of Land Management could greatly affect the future oil industry in Montana.

Galt explains the BLM was facing a lawsuit from three organizations – the Montana Environmental Information Center, Wild Earth Guardians and Earthworks – regarding oil and gas lease sales. The suit said the oil and gas development and global warming impacts the environment, and that BLM failed to address the impacts.

“The BLM decided, after they thought about it, that they wanted to settle the case,” Galt said. “They didn’t want to go to court.”

That decision suspends 61 oil and gas leases in Montana that were granted in 2008 pending a new environmental analysis. Galt said the parcels cover a total of 37,000 acres throughout the state including some acres in Richland and Roosevelt counties. Other counties affected include Carbon, Sweet Grass, Stillwater, Musselshell, Phillips, Custer, Sheridan, Fallon, Broadwater, Gallatin, Fergus, Garfield, Golden Valley and Beaverhead.

“The oil and gas industry is one of the few business sectors that is actually adding jobs in Montana and has been throughout this recession,” Galt said. The 61 oil and gas leases represent not only future jobs but also economic opportunities for the nearby communities that would benefit from energy development activities.

There’s no time schedule when the new environmental analysis will take place.

“I’m real concerned with this issue,” Galt said. “If we have to deal with climate changes, what will this lead us to?”

Galt is afraid of the affects on the industry if federal legislators and the Environmental Protection Agency (EPA) get more involved.

“This is just their foot in the door. If the federal government feels this is an effective measure, it has to be watched,” Galt said.

In November 2009, Galt testified in an Energy and Telecommunications Interim Committee hearing in Helena concerning greenhouse gases.

Galt’s comments included, “EPA has issued proposed rules stating that CO2 is a threat to public health. This endangerment finding has yet to be approved by the EPA. If EPA makes such a finding, there will be significant impacts to every business in America. Treating CO2 as a public health threat not only requires EPA to heavily regulate it under the Clean Air Act; but it also opens the door to citizen lawsuits against any businesses that emit CO2. There are already lawsuits in the process. Recently, the Second Circuit Court of Appeals reversed a local court that refused to hear a case regarding alleged global impacts of CO2 from local utilities. This action is being watched across the country and will be a serious impact to any business with CO2 emissions.”

Galt also told legislators, “EPA continues to advance regulations that will have a negative impact on our operations. They offer a huge disincentive to drilling new wells. If the proposed federal legislation and regulations are enacted, the consequences for Montana and our industry will be of an unprecedented magnitude.”

Galt doesn’t feel more restrictions from the government are what Montanans need or want.

“I would guess that if you were to ask a resident of Jordan or Bainville if he or she feels it is more important to have jobs and school funding or to reduce the greenhouse gases in their counties, they would first of all not be aware of any air quality problems in areas that are known for their wide open spaces,” Galt said. “Secondly, they would probably put the interests of working people and school children ahead of the energy-killing agenda of the Wild Earth Guardians. Just a guess.”

editor@sidneyherald.com