Federal Onshore Oil and Gas Leasing Reform Act of 1987, United States

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September 4, 2008, 10:21 pm

Through the Federal Onshore Oil and Gas Leasing Reform Act of 1987, which amended the Mineral Leasing Act of 1920, US Congress granted the USDA Forest Service the authority to make decisions and implement regulations concerning the leasing of public domain minerals on National Forest System lands containing oil and gas. The Act changed the analysis process from responsive to proactive. Prior to enactment, companies applied for a lease followed by a governmental analysis of the land; the Act forced the Forest Service to analyze lands and then offer appropriate sites for leasing. The Forest Service had to verify that the lease was in compliance with the Forest Plan and the National Environmental Policy Act (NEPA).

Once those requirements were met, the Bureau of Land Management (BLM) became responsible for leasing the land, which consisted of 570 million acres of BLM, National Forest, and other federal and private lands. The BLM would first offer the lands for lease through competitive oral auctions. Public domain lands not sold at auction became available for two-year leasing. Those who filed for leasing before the auction had priority on receiving the leases not bid on in the auction. These new regulations were implemented in March of 1990.

Further Reading

Citation

Kubiszewski, I. (2008). Federal Onshore Oil and Gas Leasing Reform Act of 1987, United States. Retrieved from http://editors.eol.org/eoearth/wiki/Federal_Onshore_Oil_and_Gas_Leasing_Reform_Act_of_1987,_United_States