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Testimony:

Before the Subcommittee on Fisheries Conservation, Wildlife, and 
Oceans, Committee on Resources, House of Representatives:

United States General Accounting Office:

GAO:

For Release on Delivery Expected at 9:30 a.m. EST:

Thursday, October 30, 2003:

National Wildlife Refuges:

Improvement Needed in the Management and Oversight of Oil and Gas 
Activities on Federal Lands:

Statement of Barry T. Hill, Director Natural Resources and Environment:

Oil and Gas Activities on Refuges:

GAO-04-192T:

GAO Highlights:

Highlights of GAO-04-192T, testimony before the Subcommittee on 
Fisheries Conservation, Wildlife, and Oceans, Committee on Resources, 
House of Representatives 

Why GAO Did This Study:

The 95-million acres in the National Wildlife Refuge System are the 
only federal lands primarily devoted to the conservation and 
management of fish, wildlife, and plant resources. While the federal 
government owns the surface lands in the system, in many cases private 
parties own the subsurface mineral rights and have the legal authority 
to explore for and extract oil and gas. This testimony is based on an 
August 2003 report (GAO-03-517) in which GAO determined the extent of 
oil and gas activity on refuges, identified the environmental effects, 
and assessed the Fish and Wildlife Service’s management and oversight 
of those activities.

What GAO Found:

About one-quarter (155 of 575) of all refuges have past or present oil 
and gas activities, some dating to at least the 1920s. Activities 
range from exploration to drilling and production to pipelines 
transiting refuge lands. One hundred five refuges contain a total of 
4,406 oil and gas wells—2,600 inactive wells and 1,806 active wells. 
The 1,806 wells, located at 36 refuges, many around the Gulf Coast 
(see figure), produced oil and gas valued at $880 million during the 
last 12-month reporting period, roughly 1 percent of domestic 
production. Thirty-five refuges contain only pipelines. 

The Fish and Wildlife Service has not assessed the cumulative 
environmental effects of oil and gas activities on refuges. Available 
studies, anecdotal information, and GAO’s observations show that the 
environmental effects of oil and gas activities vary from negligible, 
such as effects from buried pipelines, to substantial, such as effects 
from large oil spills or from large-scale infrastructure. These 
effects also vary from the temporary to the longer term. Some of the 
most detrimental effects of oil and gas activities have been reduced 
through environmental laws and improved practices and technology. 
Moreover, oil and gas operators have taken steps, in some cases 
voluntarily, to reverse damages resulting from oil and gas 
activities. 

Federal management and oversight of oil and gas activities varies 
widely among refuges—some refuges take extensive measures, while 
others exercise little control or enforcement. GAO found that this 
variation occurs because of differences in authority to oversee 
private mineral rights and because refuge managers lack enough 
guidance, resources, and training to properly manage and oversee oil 
and gas activities. Greater attention to oil and gas activities by the 
Fish and Wildlife Service would increase its understanding of 
associated environmental effects and contribute to more consistent use 
of practices and technologies that protect refuge resources.

What GAO Recommends:

GAO's August 2003 report made recommendations to improve management 
and oversight of oil and gas activities, including having the 
Department of the Interior seek from Congress any necessary additional 
authority to ensure consistent and reasonable management of all oil 
and gas activities on refuges. In commenting on the report, the 
department generally did not address our recommendations, but did 
raise procedural concerns about GAO’s recommendation that it seek 
additional authority from Congress. Given these concerns, GAO also 
raised this matter to Congress for its consideration.

www.gao.gov/cgi-bin/getrpt?GAO-04-192T.

To view the full product, including the scope and methodology, click 
on the link above. For more information, contact Barry T. Hill at 
(202) 512-3841 or hillbt@gao.gov.

[End of section]

Mr. Chairman and Members of the Subcommittee:

I am pleased to be here today to discuss our recent report on oil and 
gas activities on national wildlife refuges, which we prepared at your 
request.[Footnote 1] The National Wildlife Refuge System is unique in 
that the 95 million acres of land in the system are the only federal 
lands managed primarily for the benefit of wildlife, providing habitat 
for native plants and animals, including endangered or threatened 
species, as well as important way points for migrating species, such as 
ducks, cranes, and eagles. While the federal government owns almost all 
of the surface lands in the system, it does not, in many cases, own the 
subsurface mineral rights. Subject to some restriction, owners of 
subsurface mineral rights have the legal authority to explore for 
mineral resources such as oil and gas and, if such resources are found, 
to extract them. As you know, in our recent report, we (1) determined 
the nature and full extent of oil and gas activities in the National 
Wildlife Refuge System, (2) identified environmental effects of oil and 
gas activities on refuge resources, and (3) assessed the Fish and 
Wildlife Service's management and oversight of these activities.

To obtain a more complete understanding of the extent of past and 
present oil and gas activities within current wildlife refuge 
boundaries, we used national geographic information databases to 
determine how many documented oil and gas wells and transit pipelines 
were located within or immediately proximate to refuge boundaries. We 
also used Fish and Wildlife Service records to identify other evidence 
of oil and gas activities. Premier Data Services, a firm with extensive 
experience in computer-based geographic information systems and oil and 
gas leasing, aided our data acquisition and analysis.

In summary, we found the following:

* About one-quarter (155 of 575) of all refuges have past or present 
oil and gas activity, some dating to at least the 1920s. Activities 
range from exploration to drilling and production to pipelines 
transiting refuge lands. One hundred five refuges contain a total of 
4,406 oil and gas wells--2,600 inactive wells and 1,806 active wells. 
The 1,806 wells, located at 36 refuges, produced oil and gas valued at 
$880 million during the last 12-month reporting period, roughly 1 
percent of domestic production. In addition, oil and gas exploration 
has occurred at 44 refuges since 1994, and 1 or more active pipelines 
are present in at least 107 refuges, 35 of which do not have any other 
oil and gas activity.

* The Fish and Wildlife Service has not conducted any assessments of 
the cumulative environmental effects of oil and gas activities on 
refuge resources. Available studies, anecdotal information, and our 
observations show that the environmental effects of oil and gas 
activities and the associated construction, operation, and maintenance 
of the infrastructure on wildlife and habitat vary in severity, 
duration, and visibility. For example, the environmental effects range 
from infrequent small oil spills and minimal debris from abandoned 
infrastructure to large and chronic spills and large-scale industrial 
development. Some damage, such as habitat loss from infrastructure 
development, may last indefinitely, while other damage, such as 
wildlife disturbance from exploration, is of shorter duration. While 
certain types of damages are readily visible, others, such as changes 
in hydrology or habitat conditions, are more difficult to quantify or 
to link solely to oil and gas activities. Over the years, new 
environmental laws and industry practice and technology have reduced, 
but not eliminated, some of the most detrimental effects of oil and gas 
activities. In addition, oil and gas operators have taken steps, in 
some cases voluntarily, to reverse damages resulting from oil and gas 
activities, but operators have not consistently taken such steps, and 
the adequacy of these steps is not known. The Fish and Wildlife Service 
does not have a complete and accurate record of spills and other damage 
resulting from refuge-based oil and gas activities, has conducted few 
studies to quantify the extent of damage, and therefore does not know 
its full extent or the steps needed to reverse it.

* Federal management and oversight of oil and gas activities varies 
widely among refuges. Some refuges identify oil and gas activities and 
the risks they pose to refuge resources, issue permits that direct 
operators to minimize the effect of their activities on the refuge, 
monitor oil and gas activities with trained personnel, and charge 
mitigation fees or pursue legal remedies if damage occurs. Other 
refuges have fewer or none of these controls in place. We identified 
two primary reasons for this variation. First, the Fish and Wildlife 
Service's legal authority to require operators to obtain permits with 
conditions to protect refuge resources varies considerably, depending 
upon the nature of the mineral rights. Second, refuge managers lack 
sufficient guidance, resources, and training to properly manage and 
oversee oil and gas activities.

Background:

Over the years, we and others have examined the effects on the refuge 
system of secondary activities,[Footnote 2] such as recreation, 
military activities, and oil and gas activities--which include oil and 
gas exploration, drilling and production, and transport. Exploring for 
oil and gas involves seismic mapping of the subsurface topography. 
Seismic mapping requires surface disturbance, often involving small 
dynamite charges placed in a series of holes, typically in patterned 
grids. Oil and gas drilling and production often requires constructing, 
operating, and maintaining industrial infrastructure, including a 
network of access roads and canals, local pipelines to connect well 
sites to production facilities and to dispose of drilling wastes, and 
gravel pads to house the drilling and other equipment. In addition, 
production may require storage tanks, separating facilities, and gas 
compressors. Finally, transporting oil and gas to production facilities 
or to users generally requires transit pipelines.

Department of the Interior regulations generally prohibit the leasing 
of federal minerals underlying refuges.[Footnote 3] In addition, under 
the National Wildlife Refuge System Administration Act of 1966, as 
amended, the Fish and Wildlife Service (FWS) is responsible for 
regulating all activities on refuges. The act requires FWS to determine 
the compatibility of activities with the purposes of the particular 
refuge and the mission of the refuge system and not allow those 
activities deemed incompatible.[Footnote 4] FWS does not apply the 
compatibility requirement to the exercise of private mineral rights on 
refuges. However, the activities of private mineral owners on refuges 
are subject to a variety of other legal restrictions under federal 
law.[Footnote 5] For example, the Endangered Species Act of 1973 
prohibits the "take" of any endangered or threatened species and 
provides for penalties for violations of the act;[Footnote 6] the 
Migratory Bird Treaty Act prohibits killing, hunting, possessing, or 
selling migratory birds, except in accordance with a permit;[Footnote 
7] and the Clean Water Act prohibits discharging oil and other harmful 
substances into waters of the United States and imposes liability for 
removal costs and damages resulting from a discharge.[Footnote 8] Also, 
FWS regulations require that oil and gas activities be performed in a 
way that minimizes the risk of damage to the land and wildlife and 
disturbance to the operation of the refuge. The regulations also 
require that land affected be reclaimed after operations have 
ceased.[Footnote 9]

One-Quarter of Refuges Have Past or Present Oil and Gas Activities:

At least one-quarter, or 155, of the 575 refuges (538 refuges and 
37 wetland management districts) that constitute the National Wildlife 
Refuge System have past or present oil and gas activities--exploration, 
drilling and production, transit pipelines, or some combination of 
these (see table 1).[Footnote 10] Since 1994, FWS records show that 44 
refuges have had some type of oil and gas exploration activities--
geologic study, survey, or seismic mapping. We also identified at least 
107 refuges with transit pipelines. These pipelines are almost 
exclusively buried, vary in size, and carry a variety of products, 
including crude oil, refined petroleum products, and high-pressure 
natural gas. Transit pipelines may also have associated storage 
facilities and pumping stations, but data are not available to identify 
how many of these are on refuges.

Table 1: Number of Refuges with Oil and Gas Activities, by FWS Region:

FWS region: 1 (Pacific); Number of refuges, by category: 
Exploration (survey and seismic work)[A]: 5; Number of refuges, by 
category: Drilling and production (active and inactive oil and gas 
wells)[B]: 20; Number of refuges, by category: Active pipelines 
(transiting refuge lands)[C]: 9; Unduplicated counts, by 
category group: Exploration and/or drilling and production: 22; 
Unduplicated counts, by category group: Exploration, drilling and 
production, and/or pipelines: 24.

FWS region: 2 (Southwest); Number of refuges, by category: 
Exploration (survey and seismic work)[A]: 10; Number of refuges, by 
category: Drilling and production (active and inactive oil and gas 
wells)[B]: 22; Number of refuges, by category: Active pipelines 
(transiting refuge lands)[C]: 24; Unduplicated counts, by 
category group: Exploration and/or drilling and production: 22; 
Unduplicated counts, by category group: Exploration, drilling and 
production, and/or pipelines: 29.

FWS region: 3 (Great Lakes-Big Rivers; Number of refuges, by 
category: Exploration (survey and seismic work)[A]: 1; Number of 
refuges, by category: Drilling and production (active and inactive oil 
and gas wells)[B]: 10; Number of refuges, by category: Active pipelines 
(transiting refuge lands)[C]: 14; Unduplicated counts, by 
category group: Exploration and/or drilling and production: 10; 
Unduplicated counts, by category group: Exploration, drilling and 
production, and/or pipelines: 19.

FWS region: 4 (Southeast); Number of refuges, by category: 
Exploration (survey and seismic work)[A]: 14; Number of refuges, by 
category: Drilling and production (active and inactive oil and gas 
wells)[B]: 28; Number of refuges, by category: Active pipelines 
(transiting refuge lands)[C]: 37; Unduplicated counts, by 
category group: Exploration and/or drilling and production: 34; 
Unduplicated counts, by category group: Exploration, drilling and 
production, and/or pipelines: 45.

FWS region: 5 (Northeast); Number of refuges, by category: 
Exploration (survey and seismic work)[A]: 1; Number of refuges, by 
category: Drilling and production (active and inactive oil and gas 
wells)[B]: 4; Number of refuges, by category: Active pipelines 
(transiting refuge lands)[C]: 6; Unduplicated counts, by 
category group: Exploration and/or drilling and production: 4; 
Unduplicated counts, by category group: Exploration, drilling and 
production, and/or pipelines: 6.

FWS region: 6 (Mountain - Prairie); Number of refuges, by 
category: Exploration (survey and seismic work)[A]: 9; Number of 
refuges, by category: Drilling and production (active and inactive oil 
and gas wells)[B]: 20; Number of refuges, by category: Active pipelines 
(transiting refuge lands)[C]: 15; Unduplicated counts, by 
category group: Exploration and/or drilling and production: 24; 
Unduplicated counts, by category group: Exploration, drilling and 
production, and/or pipelines: 27.

FWS region: 7 (Alaska); Number of refuges, by category: 
Exploration (survey and seismic work)[A]: 4; Number of refuges, by 
category: Drilling and production (active and inactive oil and gas 
wells)[B]: 1; Number of refuges, by category: Active pipelines 
(transiting refuge lands)[C]: 2; Unduplicated counts, by 
category group: Exploration and/or drilling and production: 4; 
Unduplicated counts, by category group: Exploration, drilling and 
production, and/or pipelines: 5.

FWS region: Total; Number of refuges, by category: Exploration 
(survey and seismic work)[A]: 44; Number of refuges, by category: 
Drilling and production (active and inactive oil and gas wells)[B]: 
105; Number of refuges, by category: Active pipelines (transiting 
refuge lands)[C]: 107; Unduplicated counts, by category group: 
Exploration and/or drilling and production: 120; Unduplicated counts, 
by category group: Exploration, drilling and production, and/or 
pipelines: 155.

Sources: FWS, Premier Data Services, and Office of Pipeline Safety.

[A] Based on GAO's analysis of refuge reported data to FWS's Refuge 
Management Information System, 1994-2001.

[B] Based on GAO's analysis of Premier Data Services' nationwide well 
database, January 2003.

[C] Based on GAO's analysis of the National Pipeline Mapping System and 
Refuge Management Information System data, 1994-2001.

[End of table]

Over 4,400 oil and gas wells are located within 105 refuges. Although 
refuges with oil and gas wells are present in every FWS region, they 
are more heavily concentrated near the Gulf Coast of the United States. 
About 4 out of 10 wells (41 percent) located on refuges were known to 
be actively producing oil or gas or disposing of produced water during 
the most recent 12-month reporting period, as of January 2003. Of the 
105 refuges with oil and gas wells, 36 refuges have actively 
producing wells. The remaining 2,600 wells did not produce oil, gas, or 
water during the last 12 months; many of these were plugged and 
abandoned or were dry holes.[Footnote 11] During the most recent 12-
month reporting period, the 1,806 active wells produced 23.7 million 
barrels of oil and 88,171 million cubic feet of natural gas, about 1.1 
and 0.4 percent of total domestic oil and gas production, respectively. 
Based on 2001 average prices, refuge-based production had an estimated 
total commercial value of $880 million.

Substantial oil and gas activities also occur outside but near refuge 
boundaries. An additional 4,795 wells and 84 transit pipelines reside 
within one-half mile of refuge boundaries. The 4,795 wells bound 
123 refuges, 33 of which do not have any resident oil and gas wells. 
The 84 pipelines border 42 different refuges. While FWS does not own 
the land outside refuge boundaries, lands surrounding refuges may be 
designated for future acquisition.

Overall Effects of Oil and Gas Activities Are Unknown, but Those 
Activities Have Diminished Some Refuge System Resources:

The overall environmental effects of oil and gas activities on refuge 
resources are unknown because FWS has conducted few cumulative 
assessments and has no comprehensive data. Available studies, anecdotal 
information, and our observations show that some refuge resources have 
been diminished to varying degrees by spills of oil, gas, and 
brine[Footnote 12] and through the construction, operation, and 
maintenance of the infrastructure necessary to extract oil and gas. The 
damage varies widely in severity, duration, and visibility, ranging 
from infrequent small oil spills and industrial debris with no known 
effect on wildlife, to large and chronic spills causing wildlife deaths 
and long-term soil and water contamination. Some damage, such as 
habitat loss because of infrastructure development and soil and water 
contamination, may last indefinitely while other damage, such as 
wildlife disturbance during seismic mapping, is of shorter duration. 
Also, while certain types of damage are readily visible, others, such 
as groundwater contamination, changes in hydrology, and reduced habitat 
quality from infrastructure development are difficult to observe, 
quantify, and associate directly with oil and gas activities. Finally, 
oil and gas activities on refuges may hinder public access to parts of 
the refuge or FWS's ability to manage or improve refuge habitat, such 
as by conducting prescribed burns or creating seasonal wetlands.

The 16 refuges we visited reported oil, gas, or brine spills, although 
the frequency and effects of the spills varied widely. Oil and gas 
spills can injure or kill wildlife by destroying the insulating 
capacity of feathers and fur, depleting oxygen available in water, or 
exposing wildlife to toxic substances. Brine spills can be lethal to 
young waterfowl, damage birds' feathers, kill vegetation, and decrease 
nutrients in water. Even small spills may contaminate soil and 
sediments if they occur frequently. For instance, a study of 
Atchafalaya and Delta National Wildlife Refuges in Louisiana found that 
oil contamination present near oil and gas facilities is lethal to most 
species of wildlife, even though refuge staff were not aware of any 
large spills.[Footnote 13]

Constructing, operating, and maintaining the infrastructure necessary 
to produce oil and gas can harm wildlife by reducing the quantity and 
quality of habitat. Infrastructure development can reduce the quality 
of habitat through fragmentation, which occurs when a network of roads, 
canals, and other infrastructure is constructed in previously 
undeveloped areas of a refuge. Fragmentation increases disturbances 
from human activities, provides pathways for predators, and helps 
spread nonnative plant species. For example, officials at Anahuac and 
McFaddin National Wildlife Refuges in Texas said that disturbances from 
oil and gas activities are likely significant and expressed concern 
that bird nesting may be disrupted. However, no studies have been 
conducted at these refuges to determine the effect of these 
disturbances. Infrastructure networks can also damage refuge habitat by 
changing the hydrology of the refuge ecosystem, particularly in coastal 
areas. In addition, industrial activities associated with extracting 
oil and gas have been found to contaminate wildlife refuges with toxic 
substances such as mercury and polychlorinated biphenyls (PCBs). 
Mercury and PCBs were used in equipment such as compressors, 
transformers, and well production meters, although generally they are 
no longer used.

New environmental laws and industry practice and technology have 
reduced, but not eliminated, some of the most detrimental effects of 
oil and gas activities. For example, Louisiana now generally prohibits 
using open pits to store production wastes and brine in coastal areas 
and discharging brine into drainages or state waters. Also, 
improvements in technology may allow operators to avoid placing wells 
in sensitive areas such as wetlands. However, oil and gas 
infrastructure continues to diminish the availability of refuge habitat 
for wildlife, and spills of oil, gas, and brine that damage fish and 
wildlife continue to occur. In addition, several refuge managers 
reported that operators do not always comply with legal requirements or 
follow best industry practices, such as constructing earthen barriers 
around tanks to contain spills, covering tanks to protect wildlife, and 
removing pits that temporarily store fluids used during well 
maintenance.

Oil and gas operators have taken steps, in some cases voluntarily, to 
reverse damages resulting from oil and gas activities, but operators 
have not consistently taken such steps, and the adequacy of these steps 
is not known. For example, an operator at McFaddin National Wildlife 
Refuge removed a road and a well pad that had been constructed to 
access a new well site and restored the marsh damaged by construction 
after the well was no longer needed. In contrast, in some cases, 
officials do not know if remediation following spills is sufficient to 
protect refuge resources, particularly for smaller oil spills or spills 
into wetlands.

FWS does not have a complete and accurate record of spills and other 
damage resulting from refuge-based oil and gas activities, has 
conducted few studies to quantify the extent of damage, and therefore 
does not know its full extent or the steps needed to reverse it. The 
lack of information on the effects of oil and gas activities on refuge 
wildlife hinders FWS's ability to identify and obtain appropriate 
mitigation measures and to require responsible parties to address 
damages from past activities. Lack of sufficient information has also 
hindered FWS's efforts to identify all locations with past oil and gas 
activities and to require responsible parties to address damages. FWS 
does not know the number or location of all abandoned wells and other 
oil and gas infrastructure or the threat of contamination they pose 
and, therefore, its ability to require responsible parties to address 
damages is limited. However, in cases where FWS has performed studies, 
the information has proved valuable. For example, FWS funded a study at 
some refuges in Oklahoma and Texas to inventory locations containing 
oil and gas infrastructure, to determine if they were closed legally, 
and to document their present condition. FWS intends to use this 
information to identify cleanup options with state and federal 
regulators. If this effort is successful, FWS may conduct similar 
studies on other refuges.

FWS Management and Oversight of Oil and Gas Activities Varies Widely:

FWS's management and oversight of oil and gas activities varies widely 
among refuges. Management control standards for federal agencies 
require federal agencies to identify risks to their assets, provide 
guidance to mitigate these risks, and monitor compliance.[Footnote 14] 
For FWS, effectively managing oil and gas activities on refuges would 
entail, at a minimum, identifying the extent of oil and gas activities 
and their attendant risks, developing procedures to minimize damages by 
issuing permits with conditions to protect refuge resources, and 
monitoring the activities with trained staff to ensure compliance and 
accountability. However, the 16 refuges we visited varied widely in the 
extent to which these management practices occur. Some refuges identify 
oil and gas activities and the risks they pose to refuge resources, 
issue permits that direct operators to minimize the effect of their 
activities on the refuge, monitor oil and gas activities with trained 
personnel, and charge mitigation fees or pursue legal remedies if 
damage occurs. For example, two refuges in Louisiana collect mitigation 
fees from oil and gas operators that are then used to pay for 
monitoring operator compliance with permits and state and federal laws. 
In contrast, other refuges do not issue permits or collect fees, are 
not aware of the extent of oil and gas activities or the attendant 
risks to refuge resources, and provide little management and oversight.

Management and oversight of oil and gas activities varies for two 
primary reasons. First, FWS's legal authority to require oil and gas 
operators to obtain access permits with conditions to protect refuge 
resources varies considerably depending upon the nature of the mineral 
rights. For reserved mineral rights--cases where the property owner 
retained the mineral rights when selling the land to the federal 
government--FWS can require permits only if the property deed subjects 
the rights to such requirements. For outstanding mineral rights--cases 
where the mineral rights were separated from the surface lands before 
the government acquired the property--FWS has not formally determined 
its position regarding its authority to require access permits. 
However, we believe, based on statutory language and court decisions, 
that FWS has the authority to require owners of outstanding mineral 
rights to obtain permits. Second, refuge managers lack sufficient 
guidance, resources, and training to properly monitor oil and gas 
operators. Current FWS guidance regarding the management of oil and gas 
activities where there are private mineral rights is unclear, according 
to refuge staff. Refuge staff said they also lack sufficient resources 
to oversee oil and gas activities, which are substantial at 
some refuges. Only three refuges in the system have staff dedicated 
full-time to monitoring these activities, and some refuge staff cite a 
lack of time as a reason for limited oversight. Staff also cite a lack 
of training as limiting their capability to oversee oil and gas 
operators; FWS has offered only one oil-and gas-related workshop in the 
last 10 years.

On a related management issue, FWS has not always thoroughly assessed 
property for possible contamination from oil and gas activities prior 
to its acquisition, even though FWS guidance requires an assessment of 
all possible contamination. For example, FWS acquired one property that 
is contaminated from oil and gas activities because staff did not 
adequately assess the subsurface property before acquiring it. After 
acquiring the property, FWS found that large amounts of soil were 
contaminated with oil. FWS has thus far spent $15,000, and a local 
conservation group spent another $43,000, to address the contamination. 
We found that the guidance and oversight provided to FWS regional and 
refuge personnel were not adequate to ensure that the requirements were 
being met.

Conclusions:

The National Wildlife Refuge System is a national asset established 
principally for the conservation of wildlife and habitat. While 
federally owned mineral rights underlying refuge lands are generally 
not available for oil and gas exploration and production, that 
prohibition does not extend to the many private parties that own 
mineral rights underlying refuge lands. The scale of these activities 
on refuges is such that some refuge resources have been diminished, 
although the extent is unknown without additional study.

Some refuges have adopted practices--for example, developing data on 
the nature and extent of activities and their effects on the refuge, 
overseeing oil and gas operators, and training refuge staff to better 
carry out their management and oversight responsibilities--that limit 
the impact of these activities on refuge resources. If these practices 
were implemented throughout the agency, they could provide better 
assurance that environmental effects from oil and gas activities are 
minimized. In particular, in some cases, refuges have issued permits 
that establish operating conditions for oil and gas activities, giving 
the refuges greater control over these activities and protecting refuge 
resources before damage occurs. However, FWS does not have a policy 
requiring owners of outstanding mineral rights to obtain a permit, 
although we believe FWS has this authority, and FWS can require owners 
of reserved mineral rights to obtain a permit if the property deed 
subjects the rights to such requirements. Confirming or expanding FWS's 
authority to require reasonable permit conditions and oversee oil and 
gas activities, including cases where mineral rights have been reserved 
and the property deed does not already subject the rights to permit 
requirements, would strengthen and provide greater consistency in FWS's 
management and oversight. Such a step could be done without infringing 
on the rights of private mineral owners. Finally, FWS's land 
acquisition guidance is unclear and oversight is inadequate, thereby 
exposing the federal government to unexpected cleanup costs for 
properties acquired without adequately assessing contamination from oil 
and gas activities.

In our report, we made several recommendations to improve the framework 
for managing and overseeing oil and gas activities on national wildlife 
refuges, including (1) collecting and maintaining better data on oil 
and gas activities and their environmental effects, and ensuring that 
staff resources, funding, and training are sufficient and (2) 
determining FWS's existing authority over outstanding mineral rights. 
We also recommended that the Secretary of the Interior, in coordination 
with appropriate Administration officials, seek from Congress any 
necessary additional authority over outstanding mineral rights, and 
over reserved mineral rights, to ensure that a consistent and 
reasonable set of regulatory and management controls are in place for 
all oil and gas activities occurring on national wildlife refuges.

The Department of the Interior's response to our recommendations was 
mixed. The department was silent on our recommendations that it should 
collect and maintain better data on oil and gas activities and their 
effects and that it should ensure that staff are adequately trained to 
oversee oil and gas activities. Also, while the department was silent 
on whether it should review FWS's authority to regulate outstanding 
mineral rights, it raised procedural concerns about our recommendation 
that it seek any necessary additional authority from Congress to 
regulate private mineral rights. We continue to believe that our 
recommendation is warranted. In light of the department's opposition, 
we suggested that the Congress consider expanding the FWS's authority 
to enable it to consistently regulate the surface activities of private 
mineral owners on refuges.

Thank you Mr. Chairman and Members of the Subcommittee. That concludes 
my prepared statement. I would be pleased to respond to any questions 
that you may have.

Contacts and Acknowledgments:

For further information on this testimony, please contact Barry T. Hill 
at (202) 512-3841. Individuals making key contributions to this 
testimony included Paul Aussendorf, Robert Crystal, Jonathan Dent, 
Doreen Feldman, and Bill Swick.

FOOTNOTES

[1] U.S. General Accounting Office, National Wildlife Refuges: 
Opportunities to Improve the Management and Oversight of Oil and Gas 
Activities on Federal Lands, GAO-03-517 (Washington, D.C.: Aug. 28, 
2003).

[2] U.S. General Accounting Office, National Wildlife Refuges: 
Continuing Problems with Incompatible Uses Calls for Bold Action, 
GAO/RCED-89-196 (Washington, D.C.: Sept. 8, 1989).

[3] Department of the Interior regulations allow leasing of federal 
minerals underlying refuges in the state of Alaska and in cases where 
federal minerals are being drained by operations on property adjacent 
to the refuge.

[4] 16 U.S.C. §§ 668dd(a), (d).

[5] State laws also may affect the conduct of oil and gas activities.

[6] 16 U.S.C. §§ 1538, 1540. The term "take" means to harass, harm, 
pursue, hunt, shoot, wound, kills, trap, capture, or collect. 16 U.S.C. 
§ 1532(19).

[7] 16 U.S.C. § 703.

[8] 33 U.S.C. § 1321(b).

[9] 50 C.F.R § 29.32.

[10] This analysis does not include coordination areas, which are 
managed by states, or conservation easements, which are not owned by 
FWS. 

[11] Wells that are plugged and abandoned are permanently sealed by 
cementing the well bore. Improperly plugged wells can intrude on fresh 
water supplies or cause fires and seepage.

[12] Brine is water mixed with salts, other minerals, and oil.

[13] North Carolina State University, Department of Environmental and 
Molecular Toxicology, Chemical Contamination at National Wildlife 
Refuges in the Lower Mississippi River Ecosystem, February 2001, for 
the U.S. Department of the Interior.

[14] U.S. General Accounting Office, Standards for Internal Control in 
the Federal Government, GAO/AIMD-00-2131 (Washington, D.C.: 
Nov. 1999).