This is the accessible text file for GAO report number GAO-10-670 
entitled 'Onshore Oil and Gas: BLM's Management of Public Protests to 
Its Lease Sales Needs Improvement' which was released on August 30, 
2010. 

This text file was formatted by the U.S. Government Accountability 
Office (GAO) to be accessible to users with visual impairments, as 
part of a longer term project to improve GAO products' accessibility. 
Every attempt has been made to maintain the structural and data 
integrity of the original printed product. Accessibility features, 
such as text descriptions of tables, consecutively numbered footnotes 
placed at the end of the file, and the text of agency comment letters, 
are provided but may not exactly duplicate the presentation or format 
of the printed version. The portable document format (PDF) file is an 
exact electronic replica of the printed version. We welcome your 
feedback. Please E-mail your comments regarding the contents or 
accessibility features of this document to Webmaster@gao.gov. 

This is a work of the U.S. government and is not subject to copyright 
protection in the United States. It may be reproduced and distributed 
in its entirety without further permission from GAO. Because this work 
may contain copyrighted images or other material, permission from the 
copyright holder may be necessary if you wish to reproduce this 
material separately. 

Report to the Chairman, Committee on Natural Resources, House of 
Representatives: 

United States Government Accountability Office: 
GAO: 

July 2010: 

Onshore Oil and Gas: 

BLM's Management of Public Protests to Its Lease Sales Needs 
Improvement: 

GAO-10-670: 

GAO Highlights: 

Highlights of GAO-10-670, a report to the Chairman, Committee on 
Natural Resources, House of Representatives. 

Why GAO Did This Study: 

The development of oil and natural gas resources on federal lands 
contributes to domestic energy production but also results in concerns 
over potential impacts on those lands. Numerous public protests about 
oil and gas lease sales have been filed with the Bureau of Land 
Management (BLM), which manages these federal resources. 

GAO was asked to examine (1) the extent to which BLM maintains and 
makes publicly available information related to protests, (2) the 
extent to which parcels were protested and the nature of protests, and 
(3) the effects of protests on BLM’s lease sale decisions and on oil 
and gas development activities. To address these questions, GAO 
examined laws, regulations, and guidance; BLM’s agencywide lease 
record-keeping system; lease sale records for the 53 lease sales held 
in the four BLM state offices of Colorado, New Mexico, Utah, and 
Wyoming during fiscal years 2007-2009; and protest data from a random 
sample of 12 of the 53 lease sales. GAO also interviewed BLM officials 
and industry and protester groups. 

What GAO Found: 

While BLM has taken steps to collect agencywide protest data, the data 
it maintains and makes publicly available are limited. Although in 
2007 BLM required its staff to begin using a module, added to its 
lease record-keeping system, to capture information related to lease 
sale protests, GAO found that the information BLM collected was 
incomplete and inconsistent across the four reviewed BLM state offices 
and, thus, of limited utility. Moreover, in the absence of a written 
BLM policy on protest-related information the agency is to make 
publicly available during the leasing process, each state office 
developed its own practices, resulting in state-by-state variation in 
what protest-related information was made available. As a result, 
protester groups expressed frustration with both the extent and timing 
of protest-related information provided by BLM. In May 2010, the 
Secretary of the Interior announced several agencywide leasing reforms 
that are to take place at BLM. Some of these reforms may address 
concerns raised by protester groups, by providing earlier 
opportunities for public input in the lease sale process, thereby 
potentially giving stakeholders more time to assess parcels and decide 
whether to file a protest. 

A diverse group of entities protested the majority of parcels BLM 
identified in its lease sale notices during fiscal years 2007 through 
2009 in the four states, for a variety of reasons. GAO found that 74 
percent of parcels whose leases were sold competitively during this 
period by BLM state offices in Colorado, New Mexico, Utah, and Wyoming 
were protested. In examining a random sample of lease sales, GAO found 
that protests came from various entities, including nongovernmental 
organizations representing environmental and hunting interests, state 
and local governments, businesses, and private individuals. Their 
reasons for protesting ranged from concerns over wildlife habitat to 
air or water quality to loss of recreational or agricultural land uses. 

The extent to which protests influenced BLM’s leasing decisions could 
not be measured because BLM’s information does not include the role 
protests played in its decisions to withdraw parcels from lease sale. 
Regardless, BLM officials stated that the protest process can serve as 
a check on agency decisions to offer parcels for lease. In reviewing 
BLM’s lease sale data in the four selected states during fiscal years 
2007 through 2009, GAO found that 91 percent of the time, BLM was 
unable to issue leases on protested parcels within the 60-day window 
specified in the Mineral Leasing Act. Industry groups expressed 
concern that these delays increased the cost and risk associated with 
leasing federal lands. GAO found that, despite industry concerns, 
protest activity and delayed leasing have not significantly affected 
bid prices for leases; if protests or subsequent delays added 
significantly to industry cost or risk, it would be expected that the 
value of, and therefore bids for, protested parcels would be reduced. 
In addition, because federal lands account for a small fraction of the 
total onshore and offshore nationwide oil and gas output, the effects 
of protests to BLM leasing decisions on U.S. oil and gas production 
are likely to be relatively modest. 

What GAO Recommends: 

GAO recommends that BLM (1) revisit the way it tracks protest 
information and in so doing ensure that complete and consistent 
information is collected and made publicly available and (2) improve 
the transparency of leasing decisions and the timeliness of lease 
issuance. Interior concurred with GAO’s recommendations. 

View [hyperlink, http://www.gao.gov/products/GAO-10-670] or key 
components. For more information, contact Frank Rusco at (202) 512-
3841 or ruscof@gao.gov. 

[End of section] 

Contents: 

Letter: 

Background: 

BLM Maintains and Makes Publicly Available Incomplete and Inconsistent 
Information Related to Protests to Its Lease Sales: 

Most Parcels Identified for Lease Were Protested by a Diverse Group of 
Entities for a Variety of Reasons: 

Effects of Protests on BLM's Leasing Decisions and Overall Oil and Gas 
Development Activities Were Difficult to Determine: 

Conclusions: 

Recommendations for Executive Action: 

Agency Comments: 

Appendix I: Objectives, Scope, and Methodology: 

Appendix II: Protest Information from a Sample of Lease Sales in Four 
Selected State Offices, Fiscal Years 2007-2009: 

Appendix III: Description of Litigation on Selected Lease Sales: 

Appendix IV: Comments from the Department of the Interior: 

Appendix V: GAO Contact and Staff Acknowledgments: 

Tables: 

Table 1: Extent to Which BLM's Module Is Missing Protested Parcels, 
from a Sample of 12 Lease Sales, by State Office, Fiscal Years 2007- 
2009: 

Table 2: Protest Information on Parcels Whose Leases Were 
Competitively Sold, by State Office, Fiscal Years 2007-2009: 

Table 3: Protests Filed in a Sample of 12 Lease Sales, Fiscal Years 
2007-2009: 

Table 4: Numbers of Protested Parcels and Timeliness, by State Office, 
Fiscal Years 2007-2009: 

Table 5: Count of Protests Filed in a Sample of 12 Lease Sales, by 
State Office, Fiscal Years 2007-2009: 

Table 6: Groups and Individuals Filing Protest Letters in a Sample of 
12 Lease Sales, by State Office, Fiscal Years 2007-2009: 

Table 7: Reasons for Filing Protests, as Cited in Protest Letters from 
a Sample of 12 Lease Sales in Four State Offices, Fiscal Years 2007- 
2009: 

Table 8: Chronology of Events Surrounding the Roan Plateau Lease Sale: 

Figures: 

Figure 1: Onshore Oil and Gas Leasing Activity on Federal Lands, 
Fiscal Years 1988-2009: 

Figure 2: Prices of Crude Oil and Natural Gas in Relation to U.S. Oil 
and Gas Development Activity, 1990-2009: 

Abbreviations: 

BLM: Bureau of Land Management: 

LR2000: Legacy Rehost System 2000: 

NEPA: National Environmental Policy Act: 

[End of section] 

United States Government Accountability Office: Washington, DC 20548: 

July 30, 2010: 

The Honorable Nick J. Rahall, II: 
Chairman: 
Committee on Natural Resources: 
House of Representatives: 

Dear Mr. Chairman: 

As development of the nation's domestic sources of oil and natural gas 
intensified during the past decade, so did concern over the 
environmental impact of such development. The number of challenges by 
the public, largely in the form of protests, or objections, to federal 
onshore oil and gas leasing decisions has also been high, prompting 
debate over the effects of these protests on leasing and development 
activities on federal lands. Disagreement among and criticism by 
interested parties--ranging from energy industry and conservation 
groups to state and local governments--have been escalating, with 
potential ramifications for oil and gas development on federal lands, 
as well as for proposed legislation and policy reforms. Differences 
center on who or what kind of entities object to oil and gas 
development decisions, the responsiveness of federal agencies to 
protests, and whether such protests encourage the responsible 
management of these resources or, rather, unnecessarily impede 
industry access to federal energy resources. 

The Bureau of Land Management (BLM), within the Department of the 
Interior (Interior), is responsible for managing oil and gas resources 
that lie under federal lands and under private lands for which the 
federal government retains mineral rights; in fiscal year 2009, 
federal lands accounted for 5.8 percent of the nation's total oil 
production and 12.8 percent of total natural gas production.[Footnote 
1] The majority of oil and gas development on federal lands occurs in 
the western states, particularly in the Mountain West. For example, in 
fiscal year 2009, the states of Colorado, New Mexico, Utah, and 
Wyoming accounted for 70 percent of the oil produced on federal lands 
and 93 percent of the natural gas. 

To manage its responsibilities, BLM administers its programs through 
its headquarters office in Washington, D.C.; 12 state offices; and 
several subsidiary field offices. BLM headquarters develops 
regulations and guidance for the agency, and the state offices are 
responsible for administering the leasing of federal oil and gas 
resources. Each BLM state office is required to conduct oil and gas 
lease sales at least four times a year if public lands it manages are 
available for leasing, and BLM receives nominations of lands for 
leasing. At such lease sales, energy companies bid competitively to 
buy the right to lease the parcels for oil and gas exploration and 
extraction. The highest bidder is declared the winner and typically 
then buys a lease, paying the amount bid for the parcel(s). The lease 
holder also pays BLM rent each year on nonproducing land or royalties 
on any oil or gas that is extracted. 

At the various phases of oil and gas resource development--from 
planning and leasing to exploration and operations--several mechanisms 
allow the public to challenge BLM's decisions. During the leasing 
phase, the public can present challenges through protests, appeals, 
and litigation. Through protests, challengers essentially ask BLM to 
reconsider its proposed decision to offer a parcel or parcels of land 
for lease. An appeal is a request to the Interior Board of Land 
Appeals--a body of administrative judges within Interior--to review 
BLM's decision to dismiss or deny a protest.[Footnote 2] The public 
can also challenge BLM's leasing decisions through litigation brought 
in a federal court. 

In 2004, we reported on the extent to which BLM gathered and used data 
on protests and other public challenges to manage its oil and gas 
program.[Footnote 3] We found that BLM's agencywide system for 
recording leasing information was used inconsistently across the 
agency to track protest information and that the system tracked only 
limited protest data. We also found that BLM state offices used 
multiple independent data collection systems, and these systems could 
not be integrated with one another or with the agencywide system. 
Because BLM lacked consistent and readily available nationwide data on 
public challenges related to its leasing decisions, we recommended 
that BLM standardize the collection of public challenge data in its 
new agencywide automated system for selling leases and issue clear 
guidance on how public challenge data should be entered into the new 
system. In 2007, BLM added a module to its lease record-keeping system 
to capture, among other things, information related to lease protests. 

In light of continuing debate about public challenges, including 
protests, you asked us to review federal oil and gas lease sale 
decisions since our last report. Our objectives were to examine (1) 
the extent to which BLM maintains and makes publicly available 
information related to protests, (2) the extent to which parcels were 
protested and the nature of protests, and (3) the effects of protests 
on BLM's lease sale decisions and on oil and gas development 
activities. 

To conduct this work, we reviewed relevant laws, regulations, and BLM 
guidance. We interviewed officials in BLM headquarters and BLM state 
offices in Colorado, New Mexico, Utah, and Wyoming.[Footnote 4] We 
also interviewed representatives from the energy industry, state 
government, and nongovernmental organizations and discussed their 
concerns about BLM's lease sale and protest process, including the 
effects--both actual and potential--associated with protests to oil 
and gas lease sales. We analyzed BLM's agencywide lease record-keeping 
system, called Legacy Rehost System 2000 (LR2000), to determine what 
protest data the agency maintains, how the data are used by the 
agency, and the data's reliability. We also reviewed the process 
followed by each BLM state office for reviewing protests and providing 
information related to such decisions to the public, which included 
assessing information available on BLM's Web site and through other 
sources and synthesizing information gathered during our interviews. 
To understand the extent to which parcels were protested and the 
nature of protests, we reviewed protest information available in 
LR2000, information available in notices of lease sales, and sales 
results from BLM state offices for the 53 lease sales held in the four 
state offices from fiscal year 2007 through fiscal year 2009. These 
lease sales comprised 6,451 parcels covering roughly 6.9 million acres 
of land. We also randomly selected for further analysis a sample of 12 
of these 53 lease sales, to include 1 lease sale in each of the four 
state offices in each fiscal year from 2007 through 2009. The 12 lease 
sales comprised 1,244 parcels covering approximately 1.4 million acres 
of land. For each lease sale in our sample, we obtained all submitted 
protest letters and BLM's responses to these letters, analyzed whether 
each parcel included in the lease sale was protested, and interviewed 
BLM state office leasing officials. For protested parcels, we analyzed 
information on who filed the protest and for what reasons, the outcome 
of the protest, reasons for BLM's withdrawing any parcels from lease 
sales, and whether BLM's decision was appealed or litigated. To 
further examine the effects of protests, we reviewed BLM data on time 
frames and competitive bid prices for all pending and issued leases 
during fiscal years 2007 through 2009 in the four state offices. To 
examine long-term relationships between various measures of energy 
development and nationwide market prices of oil and gas, we analyzed 
U.S. oil and gas production data from the Energy Information 
Administration over the period from 1990 through 2009. We assessed the 
reliability of these data and found them to be sufficiently reliable 
for the purposes of this report. Appendix I presents a more detailed 
description of our scope and methodology. 

We conducted this performance audit from June 2009 through July 2010, 
in accordance with generally accepted government auditing standards. 
Those standards require that we plan and perform the audit to obtain 
sufficient, appropriate evidence to provide a reasonable basis for our 
findings and conclusions based on our audit objectives. We believe 
that the evidence obtained provides a reasonable basis for our 
findings and conclusions based on our audit objectives. 

Background: 

The Mineral Leasing Act of 1920 charges Interior with responsibility 
for oil and gas leasing on federal lands and on private lands where 
the federal government has retained mineral rights.[Footnote 5] 
Several other statutes and regulations also affect oil and gas leasing 
and development on federal lands. For instance, the protection of 
resources that may be affected by oil and gas activity is governed by 
resource-specific laws, such as the Clean Air Act, the Clean Water 
Act, and the Endangered Species Act. Under the National Environmental 
Policy Act (NEPA), federal agencies are to evaluate the likely 
environmental effects of proposed projects, including oil and gas 
lease sales, through an environmental assessment or, if projects are 
likely to significantly affect the environment, a more detailed 
environmental impact statement.[Footnote 6] In addition, under the 
Federal Land Policy and Management Act, BLM manages federal lands for 
multiple uses, including recreation; range; timber; minerals; 
watershed; wildlife and fish; and natural scenic, scientific, and 
historical values, as well as for the sustained yield of renewable 
resources. BLM manages oil and gas development on federal lands using 
a three-step process. First, BLM develops areawide land use plans, 
called resource management plans, specifying what areas will be open 
to oil and gas development and the conditions to be placed on such 
development. Second, BLM may issue leases for the development of 
specific sites within an area, subject to requirements in the plans. 
Finally, a lessee may file an application for a permit to drill, which 
requires BLM review and approval. 

BLM's lease sale process includes several key steps: 

* Nomination of lands for sale. Interested members of the public and 
industry can nominate lands for competitive lease by sending to a 
particular BLM state office letters expressing interest in specific 
tracts of land desired for lease. BLM itself may also identify parcels 
for potential lease, although the majority of parcels leased in recent 
years have been nominated by the oil and gas industry. Parcels 
nominated for lease can vary in size; in the contiguous 48 states, the 
maximum size of a parcel nominated for competitive lease is 2,560 
acres.[Footnote 7] 

* Review of parcels. Parcels nominated for lease are evaluated by BLM 
field staff to determine whether the proposed land is available to be 
leased and whether it conforms with BLM policies, regulations, and 
land use plans. If the parcel is determined to be available, the 
potential impacts of oil and gas leasing on the environment are then 
evaluated as required under NEPA. If required, leasing restrictions 
(called stipulations) are added to the proposed parcel to mitigate 
potential impacts of leasing. 

* Notice of lease sale. Once BLM has completed its reviews of 
nominated parcels, it identifies those parcels it has determined may 
be offered at the lease sale. These eligible parcels are included in a 
public "notice of competitive lease sale," which is to be published at 
least 45 days before the lease sale. BLM may, however, withdraw, or 
defer, parcels included in the lease sale notice at any time before 
the lease sale takes place. Such parcels may be subsequently offered 
in a future lease sale if the agency conducts further review and 
determines the parcels' suitability for leasing. 

* Public protest period. The publication of a lease sale notice starts 
the public protest period, in which concerned entities can file a 
protest to BLM's inclusion of any or all parcels in that lease sale 
notice. Included in the lease sale notice is guidance to the public on 
the process to follow for protesting BLM's decision to offer lands 
identified in the notice. Under BLM guidance, the agency considers 
only protests received at least 15 calendar days before the date of 
the lease sale, generally providing 30 days for the public to submit 
protests. BLM dismisses a protest if the protest lacks a statement of 
reasons to support it. Although BLM aims to review and resolve 
protests before lease sales, if it cannot do so, it may elect to 
include protested parcels in a lease sale. In such cases, BLM resolves 
the protests before issuing leases for those parcels. If BLM finds a 
protest to have merit, the agency does not issue leases for the 
affected parcels, and it refunds any payments made. 

* Competitive lease sale. The lease sale itself is a public auction, 
with leases sold to the highest qualified bidder. Federal oil and gas 
leases operate under a system in which the lessee receives the right 
to develop and produce oil and gas resources under a specified time 
frame and conditions in exchange for certain payments, including a 
lump-sum payment called a bonus bid.[Footnote 8] Under the Mineral 
Leasing Act, "leases shall be issued within 60 days following payment 
by the successful bidder of the remainder of the bonus bid, if any, 
and the annual rental for the first lease year,"[Footnote 9] thus 
completing the lease transaction.[Footnote 10] BLM policy also directs 
agency staff to resolve any protests related to a parcel before 
issuing the lease on that parcel.[Footnote 11] The company pays annual 
rent on the leased parcel until it begins to produce oil or gas (at 
which time, the lease owner or operator pays royalties on the volume 
of oil and gas produced) or until the lease expires or ends. Parcels 
that do not receive competitive bids are available noncompetitively 
the day after the sale and remain available for leasing for up to 2 
years after the competitive lease sale date. The Energy Policy Act of 
1992 requires BLM to offer all competitive and noncompetitive leases 
at 10-year primary terms. 

Over the past two decades, the number of federal onshore oil and gas 
leases BLM has issued, as well as the number of acres, have varied. 
Leasing activity was highest at the beginning of the period, with more 
than 9,000 leases and over 12 million acres leased in fiscal year 
1988. Both the number of leases and area leased then fell sharply for 
several years, and in recent years the number has fluctuated between 
2,000 and about 4,500 leases, and the area did not exceed 5 million 
acres leased (see figure 1). 

Figure 1: Onshore Oil and Gas Leasing Activity on Federal Lands, 
Fiscal Years 1988-2009: 

[Refer to PDF for image: combined line and vertical bar graph] 

Fiscal year: 1988; 
Leases issued each fiscal year: 9,234; 
Acres leased each fiscal year: 12.2 million. 

Fiscal year: 1989; 
Leases issued each fiscal year: 8,352; 
Acres leased each fiscal year: 7.8 million. 

Fiscal year: 1990; 
Leases issued each fiscal year: 6,552; 
Acres leased each fiscal year: 5.5 million. 

Fiscal year: 1991; 
Leases issued each fiscal year: 5,465; 
Acres leased each fiscal year: 4.4 million. 

Fiscal year: 1992; 
Leases issued each fiscal year: 3,990; 
Acres leased each fiscal year: 3.2 million. 

Fiscal year: 1993; 
Leases issued each fiscal year: 4,040; 
Acres leased each fiscal year: 3.2 million. 

Fiscal year: 1994; 
Leases issued each fiscal year: 4,159; 
Acres leased each fiscal year: 3.8 million. 

Fiscal year: 1995; 
Leases issued each fiscal year: 4,528; 
Acres leased each fiscal year: 3.9 million. 

Fiscal year: 1996; 
Leases issued each fiscal year: 3,375; 
Acres leased each fiscal year: 2.5 million. 

Fiscal year: 1997; 
Leases issued each fiscal year: 4,182; 
Acres leased each fiscal year: 3.5 million. 

Fiscal year: 1998; 
Leases issued each fiscal year: 4,105; 
Acres leased each fiscal year: 3.6 million. 

Fiscal year: 1999; 
Leases issued each fiscal year: 3,075; 
Acres leased each fiscal year: 3.6 million. 

Fiscal year: 2000; 
Leases issued each fiscal year: 2,900; 
Acres leased each fiscal year: 2.7 million. 

Fiscal year: 2001; 
Leases issued each fiscal year: 3,289; 
Acres leased each fiscal year: 4.0 million. 

Fiscal year: 2002; 
Leases issued each fiscal year: 2,384; 
Acres leased each fiscal year: 2.8 million. 

Fiscal year: 2003; 
Leases issued each fiscal year: 2,022; 
Acres leased each fiscal year: 2.1 million. 

Fiscal year: 2004; 
Leases issued each fiscal year: 2,699; 
Acres leased each fiscal year: 4.2 million. 

Fiscal year: 2005; 
Leases issued each fiscal year: 3,514; 
Acres leased each fiscal year: 4.3 million. 

Fiscal year: 2006; 
Leases issued each fiscal year: 3,985; 
Acres leased each fiscal year: 4.7 million. 

Fiscal year: 2007; 
Leases issued each fiscal year: 3,499; 
Acres leased each fiscal year: 4.6 million. 

Fiscal year: 2008; 
Leases issued each fiscal year: 2,416; 
Acres leased each fiscal year: 2.6 million. 

Fiscal year: 2009; 
Leases issued each fiscal year: 2,072; 
Acres leased each fiscal year: 1.9 million. 

Source: BLM. 

[End of figure] 

The issuance of a lease starts a series of steps toward exploring for 
and producing oil, gas, or both on the leased land. Along the way, 
variables such as the market price of oil and gas and the costs of 
infrastructure influence industry's estimates of the economic 
viability of pursuing development on leased lands. Lease owners may 
analyze available geologic information and conduct seismic or other 
testing to ascertain the land's oil or gas potential and find the 
resource. Companies may also try to acquire leases for surrounding 
parcels to ensure they have sufficient acreage to make exploration and 
production worthwhile. If companies believe that economically viable 
reserves exist on their leased lands, they may begin preparing for 
drilling, including completing environmental studies required to apply 
for drilling permits. Before an oil and gas company can drill on 
federally leased lands, it must submit to BLM an application for a 
permit to drill. Once such permits are approved, companies may begin 
exploration or development activities, including building roads to 
well sites, drilling wells, and constructing pipelines and pipeline 
facilities needed to transport the oil and gas to market. This entire 
process can take as little as a few years or as long as 10 years, and 
ultimately, leased areas may not necessarily contain oil and gas in 
commercial quantities. 

BLM Maintains and Makes Publicly Available Incomplete and Inconsistent 
Information Related to Protests to Its Lease Sales: 

Although BLM has taken steps to collect information related to 
protests to its lease sales, we found that the information it 
maintained and made available publicly was incomplete and inconsistent 
across the four state offices we reviewed. In addition, protester 
groups have raised concerns about the timing and extent of publicly 
available information. In May 2010, the Secretary of the Interior 
announced several agencywide leasing reforms that are to take place at 
BLM, some of which may address concerns raised by protester groups, by 
providing the public with earlier and more consistent data on which 
parcels may become available for leasing, thereby giving these groups 
longer to consider or prepare protests. 

BLM Collects Agencywide Protest Data, but These Data Are of Poor 
Quality and Limited Utility: 

Although BLM has taken steps to collect agencywide protest data, we 
found that these data were incomplete, inaccurate, inconsistent or 
ambiguous, and therefore of limited utility. To better track protests, 
BLM in 2007 required its staff to begin using a new module, which it 
had added as a component of its LR2000 lease record-keeping system 
specifically to capture, among other things, information related to 
lease sale protests. All parcels included in a lease sale notice are 
to be entered into LR2000, each with an assigned serial number and 
other basic information, including location and acreage. In addition, 
for each protested parcel, staff are to enter into the LR2000 module 
who filed the protest; reasons for the protest; and the outcome, or 
status, of the protest. The module should therefore contain complete 
information on every parcel listed in lease sale notices that was 
protested during the lease sale process. These parcels include parcels 
deferred before a competitive lease sale, parcels sold at a 
competitive lease sale, and parcels that did not receive a bid at a 
competitive lease sale. 

Concerning the completeness of the data, we found that some data 
identifying parcels that had been protested were missing from the 
module, particularly in the case of parcels that were deferred. We 
compared the module's data with protest records obtained from BLM 
state offices for a random sample of 12 of the 53 lease sales held in 
Colorado, New Mexico, Utah, and Wyoming during fiscal years 2007 
through 2009. For this sample, we found that the four state offices 
varied in the extent to which data identifying protested parcels had 
been entered into the module, ranging from fully complete to missing 
information on deferred parcels, and potentially missing information 
on parcels that had not been sold at a competitive lease sale (see 
table 1). Specifically, data obtained from BLM state offices in our 
sample showed that 68 parcels were protested and deferred. When we 
looked for these same data in the module, however, we found that 28 of 
the parcels--over 40 percent of deferred and protested parcels in our 
sample--were missing. Although the results from our sample of 12 lease 
sales cannot be generalized to all 53 lease sales, the extent of 
missing information we found suggests that information on protested 
parcels beyond our sample could also be missing. 

Table 1: Extent to Which BLM's Module Is Missing Protested Parcels, 
from a Sample of 12 Lease Sales, by State Office, Fiscal Years 2007- 
2009: 

BLM state office: Colorado; 
Deferred parcels: No parcels missing; 
Sold at a competitive lease sale: No parcels missing; 
Not sold at a competitive lease sale: No parcels missing. 

BLM state office: New Mexico; 
Deferred parcels: Three parcels missing; 
Sold at a competitive lease sale: One parcel missing; 
Not sold at a competitive lease sale: Not possible to determine if 
parcels missing[A]. 

BLM state office: Utah; 
Deferred parcels: Seventeen parcels missing; 
Sold at a competitive lease sale: No parcels missing; 
Not sold at a competitive lease sale: No parcels missing. 

BLM state office: Wyoming; 
Deferred parcels: Eight parcels missing; 
Sold at a competitive lease sale: No parcels missing; 
Not sold at a competitive lease sale: Not possible to determine if 
parcels missing[A]. 

Source: GAO analysis of BLM data. 

Note: The sample included 12 lease sales, with 1 lease sale in each 
state office each year, in fiscal years 2007, 2008, and 2009. 

[A] The state office used different tracking codes for parcels listed 
in lease sale notices than it used to identify parcels entered in the 
module. When these parcels were not sold at a competitive lease sale, 
we were unable to reliably match the tracking codes for these parcels 
with the tracking codes in the module to determine whether all 
protested parcels had been entered into the module. We were able to 
match these codes, using the competitive lease sale results, when 
parcels were sold at a competitive lease sale. 

[End of table] 

Further, when we examined protest data available in the module for all 
53 lease sales, we found that protest information recorded in the 
module was inaccurate, inconsistent or ambiguous, and therefore of 
limited utility. For example, we found that the field in the module 
identifying the status of a protest was left blank or read "pending" 
for more than 1,100 parcels, even when leases for those parcels had 
already been issued. In such cases, any protests would presumably have 
been resolved, either because the protest was deemed to have no merit 
or because concerns raised in the protests were addressed. We also 
found that BLM state offices often used the same term in the module to 
describe different outcomes in the leasing process. For example, in 
some cases, the term "dismissed" was used for protests to parcels that 
had been deferred, without indicating whether the agency had deemed 
the protest to have merit. In other cases, the term "dismissed" was 
applied to parcels for which protests had been found by the agency to 
be without merit, and the parcels had been leased. In addition, much 
of the information was entered into the module so generically that it 
was difficult to discern what the information meant. Specifically, BLM 
guidance calls for staff to enter the reason for a protest, but the 
corresponding data field is limited to 255 characters (approximately 
three lines of text). In practice, staff in the four state offices 
entered only basic information, such as two-or three-word phrases, 
without explanation or a reference to fuller information contained in 
the protests themselves. For example, staff in the Colorado and 
Wyoming state offices often listed "environmental concerns" as the 
issue raised in protests. In matching descriptions of issues in the 
module with the original protest letters, however, we found that 
"environmental concerns" included a broad range of issues, including 
concerns over threats to sensitive species or water quality, as well 
as economic issues such as loss of recreational or agricultural land 
uses. 

BLM officials at both headquarters and state offices told us that 
although staff are entering protest data into the module, they are not 
using protest information from the module to monitor protest activity 
but instead rely on other sources of information. According to a BLM 
headquarters official, to monitor protests to lease sales, 
headquarters officials rely on regular briefing memos provided by the 
state offices for each lease sale, rather than review information in 
the module. Similarly, across each of the four state offices, BLM 
officials said that instead of the module, they use their own 
detailed, informal spreadsheets to track protest activity and their 
responses, which they can easily maintain and organize, often lease 
sale by lease sale. BLM officials acknowledged that maintaining 
protest information is important, although they also said that the 
LR2000 module is not the most efficient or effective way to do so. BLM 
state officials added that not only is the module's software unable to 
extract and summarize data easily, but it is also inefficient for 
entering certain information into the module. For example, if a 
protest letter covers multiple parcels, initial protest information, 
including who protested and the reasons for the protest, can be 
entered into the module once and automatically applied to multiple 
parcels in a single batch. But after BLM resolves and responds to the 
protest, the module's software does not allow the response to be 
entered once and applied automatically to the batch of parcels, 
instead forcing the outcome of the protest to be entered separately 
for each of the parcels. According to BLM state office officials, this 
process can be time-consuming. (During the period of our review, the 
total number of parcels in a lease sale notice ranged from 13 to 265.) 

Protest-Related Information Varies across BLM State Offices, and 
Protester Groups Have Raised Concerns about This Information: 

We found that the amount of protest-related information BLM makes 
publicly available varies across the four state offices in our review. 
For example, the Utah state office is the only office of the four to 
provide protest letters, as well as BLM's responses, on its Web site. 
[Footnote 12] Similarly, only the New Mexico state office publishes on 
its Web site an advance list of the parcels under consideration for 
inclusion in a notice of lease sale. The other three state offices do 
not make this information available on their Web sites, although a BLM 
Wyoming state office program manager said the office would provide 
this information upon request. According to BLM guidance, the agency 
uses preliminary parcel lists primarily to request concurrence and 
stipulation recommendations from selected federal or state entities. 
Generally, such lists are not available to the public and do not 
constitute official notice of a proposed BLM action, according to the 
guidance. Nonetheless, protester groups we spoke with stated that they 
wanted information in a time frame that was more conducive to 
meaningful public participation. Specifically, several representatives 
of protester groups said that because the protest period was generally 
the one opportunity BLM provided for public input during the lease 
sale decision-making process, it was critical that they have enough 
time to thoroughly review each parcel included in a lease sale notice 
before the formal 30-day protest period.[Footnote 13] 

In addition, we found that the four state offices rarely make publicly 
available detailed reasons for deferring parcels before a competitive 
lease sale or provide information on whether or when deferred parcels 
might be considered for a future lease sale. According to BLM 
officials, the agency did not have written policy or guidance that 
included the specific information the agency was to make publicly 
available or when. Instead, each state office developed its own 
practices, resulting in state-by-state variation in both what 
information was made available and the timing of its release.[Footnote 
14] BLM officials also said that in general, all documents supporting 
a lease sale decision--including parcel reviews conducted with other 
federal, state, and local entities; recommendations from BLM field 
offices regarding the leasing of parcels; and protest letters and 
decisions--would be available for review by the public upon request. 
Some protester groups we spoke with stated that although BLM's 
deferral of protested parcels from a lease sale achieved their 
intended result, they nevertheless could not determine from publicly 
available information whether this outcome was tied to reasons raised 
in their protests. They also said they lacked information from BLM as 
to whether deferred parcels would be offered at a future sale or to 
what extent their concerns would be factored into BLM's future 
decision making on those parcels. 

In May 2010, the Secretary of the Interior announced several 
agencywide leasing reforms that are to take place at BLM. Some of 
these reforms may address some concerns raised by protester groups, by 
providing the public with earlier and more consistent data about which 
parcels may become available for leasing. BLM field offices are to 
provide a new 30-day public review-and-comment period that precedes 
the 30-day protest period. Doing so will potentially give stakeholders 
longer to review parcels and decide whether to file a protest and, if 
so, longer to prepare the protest. The reforms also require BLM state 
offices to make available on their Web sites their responses to 
protest letters filed during the protest period after a notice of 
lease sale. According to BLM, among other goals, the intent of these 
changes (which we have not evaluated) is to provide meaningful public 
involvement, as well as more predictability and certainty, in the 
leasing process. 

Most Parcels Identified for Lease Were Protested by a Diverse Group of 
Entities for a Variety of Reasons: 

Most parcels identified in BLM lease sale notices from fiscal year 
2007 through fiscal year 2009 in Colorado, New Mexico, Utah, and 
Wyoming were protested; protests came from a diverse group of 
entities, including nongovernmental organizations representing 
environmental and hunting interests, state and local governments, 
businesses, and private individuals. These groups and individuals 
listed a wide variety of reasons for their protests, including 
concerns that oil and gas activity would (1) impair fish and wildlife 
habitats or air and water quality or (2) adversely affect recreational 
or agricultural uses of the land. 

Most Parcels Identified for Lease Sale Were Protested: 

Overall, we found that 74 percent of parcels whose leases were 
competitively sold in the 53 lease sales that took place in the four 
state offices from fiscal years 2007 to 2009 were protested, although 
this percentage varied considerably by state (see table 2). 

Table 2: Protest Information on Parcels Whose Leases Were 
Competitively Sold, by State Office, Fiscal Years 2007-2009: 

BLM state office: Colorado; 
Parcels with competitively sold leases: 677; 
Parcels protested: 630; 
Percentage protested: 93%. 

BLM state office: New Mexico; 
Parcels with competitively sold leases: 1,008; 
Parcels protested: 575; 
Percentage protested: 57%. 

BLM state office: Utah; 
Parcels with competitively sold leases: 624; 
Parcels protested: 478; 
Percentage protested: 77%. 

BLM state office: Wyoming; 
Parcels with competitively sold leases: 2,745; 
Parcels protested: 2,043; 
Percentage protested: 74%. 

BLM state office: Total; 
Parcels with competitively sold leases: 5,054; 
Parcels protested: 3,726; 
Percentage protested: 74%. 

Source: GAO analysis of BLM data. 

Note: In analyzing the universe of data available for the four state 
offices, we evaluated only leases that were sold competitively. We did 
so because our sample showed that protest data from BLM's module were 
generally complete for parcels that were sold competitively, while 
data for deferred and unsold parcels were potentially incomplete. 
Competitively sold leases represented 5,054 (78 percent) of the 6,451 
parcels contained in the 53 lease sale notices for the four state 
offices. 

[End of table] 

Similarly, in our review of a sample of lease sales, we found that 
most parcels were protested. To gain a further understanding of the 
extent of protests beyond those parcels competitively sold (in other 
words, to capture parcels deferred before lease sale and those that 
did not sell competitively), we examined protest information for our 
random sample of 12 of the 53 lease sales. Overall, we found that 
1,035 of the 1,244 parcels (about 83 percent) in our sample were 
protested over the 3 fiscal years, although the number of parcels that 
were protested varied across the state offices (see table 3). We also 
found that at least half the parcels were protested for each lease 
sale in our sample (see appendix II). Of the 1,035 protested parcels 
in our sample, 68 parcels (about 7 percent) were deferred before lease 
sales; BLM dismissed protests for 763 parcels (about 74 percent); and 
as of March 2010, BLM had yet to issue responses for protests to 204 
parcels (about 20 percent). 

Table 3: Protests Filed in a Sample of 12 Lease Sales, Fiscal Years 
2007-2009: 

BLM state office: Colorado; 
Parcels in lease sale notices: 193; 
Parcels protested: 173; 
Percentage protested: 90%. 

BLM state office: New Mexico; 
Parcels in lease sale notices: 281; 
Parcels protested: 205; 
Percentage protested: 73%. 

BLM state office: Utah; 
Parcels in lease sale notices: 201; 
Parcels protested: 198; 
Percentage protested: 99%. 

BLM state office: Wyoming; 
Parcels in lease sale notices: 569; 
Parcels protested: 459; 
Percentage protested: 81%. 

BLM state office: Total; 
Parcels in lease sale notices: 1,244; 
Parcels protested: 1,035; 
Percentage protested: 83%. 

Source: GAO analysis of protest data obtained from BLM state offices. 

[End of table] 

Parcels Were Protested for a Variety of Reasons by Nongovernmental 
Organizations, Governments, Businesses, and Individuals: 

We found that a diverse group of entities filed protests for parcels 
included in our sample of lease sales, including nongovernmental 
organizations, governments, businesses, and individuals (see appendix 
II). Many of the nongovernmental organizations were environmental 
organizations; for example, the Center for Native Ecosystems was 
listed as a party on 13 of the 86 protest letters across three state 
offices in our sample.[Footnote 15] Other nongovernmental 
organizations representing hunting, fishing, and recreational 
interests also commonly filed protests. Governments included both 
state and local governments, such as a state natural resource 
department and county commissioners. Businesses were represented by 
ranching and recreational interests, and private individuals were 
often residents concerned that their lifestyles or properties would be 
affected by the proposed leasing activity. In many instances, several 
groups jointly filed a single protest letter. For example, for one 
lease sale in New Mexico, multiple businesses--representing ranching, 
recreational, and other interests--and several nongovernmental 
organizations submitted a protest letter. Similarly, in one lease sale 
in Wyoming, an association of churches signed a protest letter 
alongside five nongovernmental conservation organizations. In 
addition, according to BLM officials, the agency also often received 
"repeat" protests, where the same groups raised issues they had 
previously raised in protests that BLM had dismissed in earlier lease 
sales; "blanket" protests, where all the parcels identified in a lease 
sale notice were protested for general reasons; or "mass duplicate 
protests," where multiple entities filed the same letter. For our 
sample of protest letters, we did not analyze the extent to which any 
of the protests fell into these categories. 

In our analysis of each of the 86 protest letters in our sample, we 
found that the reasons cited for the protests varied considerably. We 
found that the reasons outlined in the letters generally fell into 
four broad areas: alleged impacts on fish and wildlife and their 
habitats; degradation of the natural environment, such as air or water 
quality; effects on human uses, such as recreation or agriculture; or 
potential violations of statutes or policies (see appendix II). For 
instance, many of the letters stated that certain parcels identified 
for oil and gas leasing were located on lands of high conservation 
value and that oil and gas activities would disrupt important species' 
habitats, such as sage grouse breeding and nesting sites; migratory 
routes and winter ranges for big game, such as elk and mule deer; or 
the riparian habitats of sensitive fish species, such as cutthroat 
trout. Several of the letters stated that because some of the parcels 
were located in areas that had been proposed for or had received a 
wilderness or other conservation designation, leasing the area to oil 
and gas development would come into direct conflict with that proposed 
designation. Many of the letters also raised concerns that oil and gas 
development on the land would affect use of the land for recreational 
or business-related purposes, including hunting, fishing, hiking, 
horseback riding, ranching, and other agricultural uses. In addition, 
entities filing protests frequently raised concerns that offering 
certain parcels for lease would violate particular statutes or 
policies. For instance, a number of the protest letters stated that 
offering certain parcels for lease would be in potential violation of 
the Federal Land Policy and Management Act because leasing those 
parcels would be inconsistent with BLM's current land use plans or 
responsibility to ensure that public lands were not unnecessarily or 
unduly degraded. Other protest letters stated that BLM had potentially 
neglected to (1) conduct sufficient site-specific environmental 
analyses, (2) identify potential adverse environmental effects, or (3) 
consider an adequate range of alternatives when selecting certain 
parcels for lease sale--allegations that, if true, could put BLM in 
violation of NEPA. 

Effects of Protests on BLM's Leasing Decisions and Overall Oil and Gas 
Development Activities Were Difficult to Determine: 

We could not measure the extent to which protests influenced BLM's 
leasing decisions through the information BLM maintains because the 
agency did not document the role protests played in its decisions to 
defer parcels; protests were, however, associated with delays in 
leasing. In addition, we found that despite industry concerns, 
protests did not significantly affect bid prices and that the effects 
of protests on nationwide oil and gas production in the near term are 
not likely to be significant. 

The Extent to Which Protests Affected BLM's Lease Sale Decisions Could 
Not Be Measured: 

We could not measure the extent to which protests affected BLM's lease 
sale decisions because of limited information BLM maintains on 
protests. Not only were protest data incomplete, but BLM did not 
consistently document the reasons for its deferrals or the extent to 
which it found protests to have merit. In our review of a sample of 12 
lease sales in the four state offices, we found that when BLM deferred 
a protested parcel before the lease sale, the agency did not provide 
the reasons for the deferral in its response to the protest letter. 
Rather, BLM stated that because the parcel was deferred, the protest 
was "dismissed as moot" or the parcel was "not subject to protest." 
For such deferrals, BLM did not indicate whether the protest had merit 
or to what extent, if at all, the protest factored into the agency's 
decision to defer the parcel. Similarly, although in principle a 
protest could also play a role in BLM's decision to modify the acreage 
or stipulations on a parcel, in reviewing BLM's responses to the 
protest letters in our sample, we could not determine if BLM made any 
such changes because of a protest. 

BLM officials explained that many interacting factors influenced 
leasing decisions, and it was not always possible to specify the 
extent to which protests affected their decisions. In our sample of 
protested parcels deferred before lease sales, however, we found that 
issues similar to those raised in the protest letters were often cited 
by BLM officials as the reason for deferrals. Specifically, we found 
that for 56 of the 68 deferred protested parcels in our sample, the 
reasons BLM cited were similar to issues raised in the protest letters 
for those same parcels. For example, several conservation groups 
protested the lease sale of several parcels in Utah's February 2007 
lease sale because, according to the protest letter they filed 
jointly, recent archaeological research showed that a particular 
mountain gap had special significance as an ancient astronomical 
observatory. According to BLM officials, BLM deferred the sale of 
these parcels, on which they had already placed some restrictions to 
oil and gas development, so they could further review the area's 
importance as a cultural resource and the potential need for 
additional protection. On the other hand, some protested parcels were 
deferred for administrative reasons unrelated to issues cited in 
protest letters. For example, the New Mexico state office deferred one 
parcel from its July 2008 lease sale after it determined that land 
within the parcel was already under lease. 

BLM officials provided anecdotal accounts in which protests influenced 
their decisions, and they acknowledged that the protest process can 
serve as a check on agency decisions to offer parcels for lease sale. 
In some instances, according to the officials, protests brought issues 
to their attention that they may not otherwise have factored into 
their decision making and therefore ultimately improved their 
decisions. For example, according to a BLM Colorado state office 
program manager, the office deferred the lease sale of several parcels 
after a conservation group alerted the office through the protest 
process that the parcels potentially contained habitat for a 
threatened plant species, as well as areas that had been designated 
for state and national historic and natural preservation. Similarly, 
officials in the New Mexico state office said they deferred the lease 
sale of multiple parcels after reviewing information submitted by 
protesters, including a letter submitted by the New Mexico Department 
of Game and Fish, and determining that the areas contained key habitat 
for the desert bighorn sheep, a state endangered species, and that 
further review of the lands' leasing suitability would therefore be 
warranted. 

In addition, some protests resulted in appeals to the Interior Board 
of Land Appeals or litigation in federal court, which could have 
ultimately affected BLM's leasing decisions. Although data were not 
available to determine how many appeals or legal challenges were 
associated with the protests submitted during the period of our 
review, we did examine appeals and litigation associated with our 
sample of lease sales. Within our sample, one appeal to the Interior 
Board of Land Appeals was filed by a group that had protested parcels 
included in Wyoming's April 2008 lease sale. The board dismissed this 
appeal in October 2009, holding that the protesting organization 
lacked standing to appeal because it failed to establish that it or 
any of its members had used, or in the future would use, any of the 
protested parcels. In addition, groups filed lawsuits challenging 
BLM's lease sale decisions from New Mexico's July 2008 lease sale and 
Colorado's August 2008 lease sale; both cases were pending as of May 
2010 (see appendix III). 

Leases on Protested Parcels Were Often Delayed: 

We found that a majority of leases for protested parcels in the four 
state offices from fiscal year 2007 through 2009 were issued after the 
60-day window specified in the Mineral Leasing Act.[Footnote 16] BLM 
officials explained that, starting in the early 2000s, the overall 
number of protests rose in tandem with an increase in oil and gas 
development activities and an increase in activities in contentious 
areas, such as those potentially containing wilderness-quality lands 
or areas that had not before been leased for oil and gas. According to 
BLM officials, responding to the large number of protests, some of 
which raised complex issues, increased staff workloads and made it 
difficult for them to respond to protests and issue leases within the 
60-day window. 

When we examined lease issuance time frames for all competitively sold 
leases for parcels from the 53 lease sales held in the four state 
offices during fiscal years 2007 through 2009, we found that BLM was 
able to issue leases within the 60-day window for almost all 
unprotested parcels.[Footnote 17] But BLM was not able to meet this 
window for almost 91 percent of the protested parcels it sold 
competitively during this time. The percentage varied by state office: 
In New Mexico the percentage was about 52 percent, while in the other 
three state offices it was more than 91 percent, ranging up to almost 
100 percent in Wyoming (see table 4). The Wyoming state office 
prepared one consolidated response to all protest letters filed for a 
particular lease sale, and thus, a BLM official explained, leases were 
not issued for any protested parcels until concerns raised in each of 
the protests were resolved and BLM had responded. 

Table 4: Numbers of Protested Parcels and Timeliness, by State Office, 
Fiscal Years 2007-2009: 

Colorado: [Empty]. 

BLM state office: Colorado; 
Protested parcels: Late: Number: 581; 
Protested parcels: Late: Percentage: 94.8%; 
Protested parcels: On time: Number: 32; 
Protested parcels: On time: Percentage: 5.2%; 
Protested parcels: Total: Number: 613; 
Protested parcels: Total: Percentage: 100%. 

BLM state office: New Mexico; 
Protested parcels: Late: Number: 299; 
Protested parcels: Late: Percentage: 52.3%; 
Protested parcels: On time: Number: 273; 
Protested parcels: On time: Percentage: 47.7%; 
Protested parcels: Total: Number: 572; 
Protested parcels: Total: Percentage: 100%. 

BLM state office: Utah; 
Protested parcels: Late: Number: 403; 
Protested parcels: Late: Percentage: 91.4%; 
Protested parcels: On time: Number: 38; 
Protested parcels: On time: Percentage: 8.6%; 
Protested parcels: Total: Number: 441; 
Protested parcels: Total: Percentage: 100%. 

BLM state office: Wyoming; 
Protested parcels: Late: Number: 2,039; 
Protested parcels: Late: Percentage: 99.9%; 
Protested parcels: On time: Number: 2; 
Protested parcels: On time: Percentage: 0.1%; 
Protested parcels: Total: Number: 2,041; 
Protested parcels: Total: Percentage: 100%. 

BLM state office: Total; 
Protested parcels: Late: Number: 3,322; 
Protested parcels: Late: Percentage: 90.6%; 
Protested parcels: On time: Number: 345; 
Protested parcels: On time: Percentage: 9.4%; 
Protested parcels: Total: Number: 3,667; 
Protested parcels: Total: Percentage: 100%. 

Source: GAO analysis of BLM data. 

Note: The 3,667 parcels evaluated in this analysis whose leases were 
competitively sold include protested parcels for which leases were 
issued, as well as protested parcels whose leases were sold as of 
March 2010 but whose leases had not been issued. In total, leases for 
3,726 protested parcels were competitively sold during our review 
period, but we excluded 59 of these parcels from our analysis because 
BLM indicated that leases for these parcels had been canceled or 
because errors in the data precluded their use. 

[End of table] 

The time it took BLM to issue the leases also varied. For the 
protested parcels for which leases were issued, about 46 percent were 
issued within 6 months, about 54 percent were issued within 6 months 
to 1 year, and less than 1 percent took up to 2 years.[Footnote 18] In 
addition, as of March 2010, BLM had not issued leases for more than 
1,200 protested parcels (representing about 24 percent of all parcels 
sold competitively during this time), the majority of which were from 
lease sales held during fiscal year 2009 in Utah and Wyoming. While 
our analysis is consistent with the assertion from BLM officials that 
an increased workload from protests resulted in delays issuing leases, 
it was not sufficient to establish a cause-and-effect relationship 
because the available data did not allow us to examine whether factors 
other than protests, such as other workload demands in the state 
office, may also have contributed to lease issuance delays. 

Despite Concerns, Protest Activity and Delayed Leasing Have Not 
Significantly Affected Bid Prices, and Near-Term Effects on Nationwide 
Oil and Gas Production Are Not Likely to Be Significant: 

We found that protest activity did not systematically decrease bid 
prices for leases during the period we reviewed and that overall 
effects on near-term nationwide oil and gas production are not likely 
to be significant, despite industry concerns over protests and delays 
in issuing leases. Specifically, industry officials we spoke with said 
that if an energy company cannot count on timely issuance of leases, 
it could be hard-pressed to make fully informed decisions on how to 
develop a group of leased parcels. If the lease on one parcel within a 
group is delayed, for example, a company may not find it cost-
effective or feasible to develop the rest of the parcels in that 
group. In some cases, companies are concerned that capital may be tied 
up while BLM is resolving protests and deciding whether to issue the 
companies' leases. Because companies make payments to BLM at the time 
of lease sale, they may find themselves financially constrained while 
awaiting BLM's decision and at the same time have no assurance that 
BLM will grant their leases.[Footnote 19] According to industry 
representatives, uncertainty over protested parcels--including delays 
in lease issuance, parcels' ultimate availability, and additional 
restrictions that may be placed on them--might lower the amount 
potential lessees may be willing to bid for those parcels. In 
addition, industry representatives expressed concern that the delays 
and uncertainty related to protests could result in reduced acreage 
available for leasing and therefore ultimately also limit domestic oil 
and gas production. 

The results of our analysis showed no systematic effect of measures of 
protest activity on bid prices, although our analysis did not account 
for all possible determinants of bid prices.[Footnote 20] For example, 
when we compared the average bid price per acre for protested parcels 
against the average bid price per acre for unprotested parcels for 
lease sales held in the four state offices during fiscal years 2007 
through 2009, we did not find a systematic effect of protest activity 
on bid price. In the 29 lease sales where estimation was possible, we 
found that for 3 lease sales in Wyoming, the average bid price per 
acre was significantly higher for unprotested parcels than for 
protested ones.[Footnote 21] In 3 other lease sales in Colorado, New 
Mexico, and Utah, however, we found a significant association between 
higher bid price per acre and protested parcels. In the 23 other 
sales, we found no statistically significant correlation. Similarly, 
when we analyzed the number of protests per parcel and average bid 
prices, we did not find a systematic effect. Here, in the 36 lease 
sales where estimation was possible, we found that for 4 of them--1 in 
Colorado and 3 in Wyoming--higher average bid prices per acre were 
associated with fewer protests. For 2 lease sales in New Mexico and 
Utah, the converse was true, and lower average bid prices per acre 
were associated with fewer protests. In the 30 other sales, there was 
no significant relationship. Finally, for the number of days of delay 
in issuing leases on protested parcels, we found no consistently 
significant statistical relationship with lower average bid price. 
[Footnote 22] 

While industry representatives also expressed concern that protest 
activity could result in reduced acreage available for leasing, it was 
not possible to determine the extent to which acreage was withheld 
from leasing as a result of protests because BLM did not document 
whether protests influenced its decisions to defer parcels from lease 
sales. During the period of our review, about 1 million acres, or 15 
percent, of the approximately 6.9 million acres of land included in 
the lease sale notices in the four state offices were deferred before 
lease sale. Given the limitations of BLM's data, however, we could not 
determine how much of this deferred acreage was protested or, for 
deferred acreage that was protested, whether it was subsequently 
leased in a later sale. This deferred acreage thus represents an upper 
limit to the potential acreage that could have been withheld from 
leasing because of protests to date in the four state offices. In 
addition, BLM had not yet resolved protests filed on another 1.4 
million acres, or about 20 percent, of the approximately 6.9 million 
acres of land identified in the lease sale notices, and resolution of 
many of these protests has been on hold following direction from BLM 
headquarters to await specific policy changes before resolving pending 
protests. For instance, according to officials in the Wyoming state 
office, the office was directed not to issue protest responses for its 
protested parcels--which included more than 1,000 parcels covering 
approximately 1.2 million acres for parcels protested during our 
review period--until the parcels' suitability for leasing was reviewed 
in light of new guidance covering sage grouse habitat and wilderness 
policy. As a result, it is too early to determine the effects of 
protests on the acreage where protests have yet to be resolved, and 
ultimately it may not be possible to distinguish the effects of 
protests from the effects of simultaneous policy changes. Further, 
because oil and gas producers generally have up to 10 years from a 
lease's issuance in which they can begin developing the lease, the 
effect of leasing decisions may not be felt for several years after 
the lease sale. 

At the national level, the near-term effect of protests on U.S. oil 
and gas production is likely to be relatively modest because federal 
lands account for a small fraction of the total onshore and offshore 
nationwide oil and gas output. Specifically, in fiscal year 2009, 
federal lands accounted for 5.8 percent of the nation's total oil 
production and 12.8 percent of total natural gas production. Assuming 
the federal share of production remains comparable in the future, and 
production on federal lands falls by 15 percent (the percentage of 
deferred acreage), nationwide oil production would be reduced by 0.9 
percent, and natural gas production would fall by 1.9 percent. If, in 
addition to the 15 percent of deferred acreage, BLM were to withdraw 
the acreage represented by the additional 20 percent of protested 
parcels whose protest decisions were still pending--a total reduction 
of 35 percent--the corresponding combined loss nationwide would be 2.0 
percent for oil and 4.5 percent for natural gas. 

With the current supply of federal lands already under lease, however, 
oil and gas development and production may be able to increase along 
with any demand for such production. Of federal lands that are 
currently leased, 12 million acres are producing oil or gas, whereas 
33 million acres have not been developed. Factoring in both federal 
onshore and offshore leases, a total of 67 million acres have not been 
developed, while 22 million acres are producing oil or natural gas. 
While they may not all contain viable resources, some of these 67 
million acres may provide a buffer for the energy industry--federal 
lands or waters that could be developed--if producers wanted to 
respond to market conditions with a rapid rise in development and 
production activity. Energy industry representatives said that while 
various factors influence a company's decision to develop leases, the 
prices of oil and gas are a big driver. We examined the movements of 
oil and gas prices from 1990 through 2009 in relation to development 
activities as measured by oil and gas wells drilled and found that 
percentage changes in the prices of oil and gas closely paralleled 
percentage changes in development activity (see figure 2). The peaks 
and troughs in the patterns of these variables largely overlapped, 
strongly suggesting that during the past two decades, development 
activity reacted quickly and proportionally to changes in the prices 
of oil and gas.[Footnote 23] 

Figure 2: Prices of Crude Oil and Natural Gas in Relation to U.S. Oil 
and Gas Development Activity, 1990-2009: 

[Refer to PDF for image: 2 multiple line graphs] 

Calendar year: 1990; 
Change in Oil prices: 19%; 
Change in Exploratory and developmental oil wells drilled: 21.7%; 
Change in Natural gas prices: -3.9%; 
Change in Exploratory and developmental natural gas wells drilled: 
16.8%. 

Calendar year: 1991; 
Change in Oil prices: -14%; 
Change in Exploratory and developmental oil wells drilled: -3.3%; 
Change in Natural gas prices: -6%; 
Change in Exploratory and developmental natural gas wells drilled: 
-13.6%. 

Calendar year: 1992; 
Change in Oil prices: -5.6%; 
Change in Exploratory and developmental oil wells drilled: -25.1%; 
Change in Natural gas prices: 4.8%; 
Change in Exploratory and developmental natural gas wells drilled: 
-13.6%. 

Calendar year: 1993; 
Change in Oil prices: -11.5%; 
Change in Exploratory and developmental oil wells drilled: -2.8%; 
Change in Natural gas prices: 16%; 
Change in Exploratory and developmental natural gas wells drilled: 
22.5%. 

Calendar year: 1994; 
Change in Oil prices: -7.3%; 
Change in Exploratory and developmental oil wells drilled: -20.1%; 
Change in Natural gas prices: -9.9%; 
Change in Exploratory and developmental natural gas wells drilled: 
-4.3%. 

Calendar year: 1995; 
Change in Oil prices: 5.1%; 
Change in Exploratory and developmental oil wells drilled: 11.8%; 
Change in Natural gas prices: -18.1%; 
Change in Exploratory and developmental natural gas wells drilled: 
-13.2%. 

Calendar year: 1996; 
Change in Oil prices: 17%; 
Change in Exploratory and developmental oil wells drilled: 11.9%; 
Change in Natural gas prices: 36.6%; 
Change in Exploratory and developmental natural gas wells drilled: 
12.8%. 

Calendar year: 1997; 
Change in Oil prices: -7.2%; 
Change in Exploratory and developmental oil wells drilled: 19.2%; 
Change in Natural gas prices: 6.6%; 
Change in Exploratory and developmental natural gas wells drilled: 
17.3%. 

Calendar year: 1998; 
Change in Oil prices: -29.4%; 
Change in Exploratory and developmental oil wells drilled: -33.2%; 
Change in Natural gas prices: -14.8%; 
Change in Exploratory and developmental natural gas wells drilled: 
-0.5%. 

Calendar year: 1999; 
Change in Oil prices: 31.7%; 
Change in Exploratory and developmental oil wells drilled: -38.2%; 
Change in Natural gas prices: 9.7%; 
Change in Exploratory and developmental natural gas wells drilled: 
-0.1%. 

Calendar year: 2000; 
Change in Oil prices: 51.4%; 
Change in Exploratory and developmental oil wells drilled: 87.3%; 
Change in Natural gas prices: 61.9%; 
Change in Exploratory and developmental natural gas wells drilled: 
52.7%. 

Calendar year: 2001; 
Change in Oil prices: -16.1%; 
Change in Exploratory and developmental oil wells drilled: 9.8%; 
Change in Natural gas prices: 6.6%; 
Change in Exploratory and developmental natural gas wells drilled: 
29.7%. 

Calendar year: 2002; 
Change in Oil prices: 2.1%; 
Change in Exploratory and developmental oil wells drilled: -23.9%; 
Change in Natural gas prices: -25.3%; 
Change in Exploratory and developmental natural gas wells drilled: 
-21.5%. 

Calendar year: 2003; 
Change in Oil prices: 15.1%; 
Change in Exploratory and developmental oil wells drilled: 19.8%; 
Change in Natural gas prices: 60.3%; 
Change in Exploratory and developmental natural gas wells drilled: 
19.6%. 

Calendar year: 2004; 
Change in Oil prices: 28.9%; 
Change in Exploratory and developmental oil wells drilled: 8.1%; 
Change in Natural gas prices: 8%; 
Change in Exploratory and developmental natural gas wells drilled: 
16.6%. 

Calendar year: 2005; 
Change in Oil prices: 30.1%; 
Change in Exploratory and developmental oil wells drilled: 22.3%; 
Change in Natural gas prices: 28%; 
Change in Exploratory and developmental natural gas wells drilled: 
17.9%. 

Calendar year: 2006; 
Change in Oil prices: 13.3%; 
Change in Exploratory and developmental oil wells drilled: 24.2%; 
Change in Natural gas prices: -15.3%; 
Change in Exploratory and developmental natural gas wells drilled: 
15.8%. 

Calendar year: 2007; 
Change in Oil prices: 5.4%; 
Change in Exploratory and developmental oil wells drilled: 2.9%; 
Change in Natural gas prices: -5.9%; 
Change in Exploratory and developmental natural gas wells drilled: 
1.3%. 

Calendar year: 2008; 
Change in Oil prices: 29.5%; 
Change in Exploratory and developmental oil wells drilled: 27.6%; 
Change in Natural gas prices: 19.7%; 
Change in Exploratory and developmental natural gas wells drilled: 
3.5%. 

Calendar year: 2009; 
Change in Oil prices: -36.2%; 
Change in Exploratory and developmental oil wells drilled: -23.3%; 
Change in Natural gas prices: -52.2%; 
Change in Exploratory and developmental natural gas wells drilled: 
-44.2%. 

Sources: GAO analysis of data from the Bureau of Labor Statistics and 
the Energy Information Administration. 

Note: Prices and development measures reflect nationwide onshore and 
offshore oil and gas activity. Oil prices are given in 2009 dollars 
per barrel, prices for natural gas in 2009 dollars per 1,000 cubic 
feet. Change is plotted as (1) the percentage change from year to year 
in oil or gas prices and (2) the percentage change from year to year 
in the number of exploratory and developmental wells drilled, which 
shows how the two variables have moved together over the past two 
decades. 

[End of figure] 

Conclusions: 

BLM must continue to balance interest in developing the nation's 
domestic sources of oil and natural gas on federal lands with ensuring 
that such development is done in an environmentally responsible manner 
and in line with its mandate to manage these lands for multiple uses. 
The protest period provided before new oil and gas leases are issued 
allows the public an opportunity to comment on a parcel before the 
right to develop that parcel passes to a private company, and protests 
provide an opportunity for BLM to carefully examine lease sale 
decisions in light of the issues that protests raise. This protest 
process has its trade-offs, however. Specifically, issues raised in 
protests can help BLM ensure that the best leasing decisions are made, 
but protests have also been associated with delays and may increase 
industry uncertainty over the availability of federal lands for oil 
and gas leasing. Although BLM has taken steps to collect agencywide 
protest data, when we tried to evaluate the effects of protests, we 
were hindered by the incompleteness, inconsistency, and ambiguity of 
these data. Protester groups have also been dissatisfied with BLM's 
lack of protest-related information. Without more robust protest 
information, BLM, Congress, and the public lack a full picture of 
protest activity and how protests affect leasing decisions. As 
Interior reforms the leasing process, BLM has an ideal opportunity to 
(1) revisit how it maintains protest-related information and makes it 
publicly available and (2) develop the means to respond to protests 
and issue leases with fewer delays, without compromising the 
thoroughness of review. 

Recommendations for Executive Action: 

To improve the efficiency and transparency of BLM's process with 
regard to protests of its lease sale decisions and to strengthen how 
BLM carries out its responsibilities under the Mineral Leasing Act, we 
recommend that the Secretary of the Interior direct the Director of 
BLM to take the following two actions: 

* revisit the agency's use of the module for tracking protest 
information and, in so doing, determine and implement an approach for 
collecting protest information agencywide that is complete, 
consistent, and available to the public and: 

* in implementing the Secretary of the Interior's leasing policy 
reform issued in May 2010, take steps to improve (1) the transparency 
of leasing information provided to the public, including information 
to explain the basis of agency decisions to include or exclude 
particular parcels in a lease sale and, to the extent feasible, 
documentation of the role, if any, that protests played in final lease 
decisions, and (2) the timeliness of lease issuance, without 
compromising the thoroughness of review. 

Agency Comments: 

We provided the Department of the Interior with a draft of this report 
for review and comment and received a written comment letter from 
Interior (see appendix IV). In its written comments, Interior 
generally agreed with our findings and concurred with our 
recommendations. The department also identified specific actions it 
has taken and plans to take to implement these recommendations. With 
regard to our first recommendation, about revisiting BLM's use of the 
module for tracking protest information, Interior wrote that by the 
end of calendar year 2011, BLM will determine if the module can be 
redesigned or if another application would be more effective and will 
implement an approach to better track protest-related information. In 
addressing our second recommendation, on improving the transparency of 
its lease decisions and the timeliness of lease issuance, Interior 
wrote that its onshore leasing reform policies will provide the 
increased public participation, transparency, and timeliness called 
for in the recommendation. Interior's letter states that with leasing 
reform, there will be additional environmental review and a new 
opportunity for public comment and that adjustments to the "lease 
parcel list" may be made on the basis of public comments received. We 
stress, however, that as any adjustments to parcel lists are made, it 
will be important for BLM to explain and document the rationale behind 
its decisions to include or exclude particular parcels in a lease 
sale. Interior's letter also stated that the department believes its 
ability to adequately address a protest within required time frames 
will be addressed by posting the lease sale notice 90 days before 
lease sale (instead of 45 days), extending the period BLM has to 
evaluate and respond to protests before a lease sale. 

As agreed with your office, unless you publicly announce the contents 
of this report earlier, we plan no further distribution until 30 days 
from the report date. At that time, we will send copies of this report 
to the appropriate congressional committees, Secretary of the 
Interior, Director of the Bureau of Land Management, and other 
interested parties. In addition, the report will be available at no 
charge on the GAO Web site at [hyperlink, http://www.gao.gov]. 

If you or your staff members have any questions about this report, 
please contact me at (202) 512-3841 or ruscof@gao.gov. Contact points 
for our Offices of Congressional Relations and Public Affairs may be 
found on the last page of this report. GAO staff who made major 
contributions to this report are listed in appendix V. 

Sincerely yours, 

Signed by: 

Frank Rusco: 
Director, Natural Resources and Environment: 

[End of section] 

Appendix I: Objectives, Scope, and Methodology: 

This report examines (1) the extent to which the Bureau of Land 
Management (BLM) maintains and makes publicly available information 
related to protests, (2) the extent to which parcels were protested 
and the nature of protests, and (3) the effects of protests on BLM's 
lease sale decisions and on oil and gas development activities. 

For all three report objectives, we reviewed relevant laws, 
regulations, and Department of the Interior and BLM guidance. We 
interviewed officials in BLM headquarters and visited and interviewed 
officials from BLM state offices in Colorado, New Mexico, Utah, and 
Wyoming. (The New Mexico state office has jurisdiction over Kansas, 
Oklahoma, and Texas, as well as New Mexico, and the Wyoming state 
office has jurisdiction over Wyoming and Nebraska. The data presented 
in this report for the New Mexico and Wyoming state offices include 
data for all the states under their jurisdiction.) We selected these 
four states because collectively they accounted for 69 percent of oil 
and 94 percent of natural gas produced on federal lands from fiscal 
year 2007 through fiscal year 2009 and, according to BLM headquarters 
officials with whom we spoke, received a high number of protests to 
their lease sales over this same period. In addition, we interviewed 
stakeholder groups, including representatives from the energy 
industry, state government, and nongovernmental organizations, to 
discuss their concerns about BLM's lease sale and protest process, 
including the effects--both actual and potential--associated with 
protests to BLM oil and gas lease sales. 

To conduct our work, we obtained and analyzed BLM data from three 
different sources. First, using lease sale records from the BLM state 
offices for the 53 lease sales held in the four selected state offices 
from fiscal year 2007 through 2009, we gathered data on each of the 
parcels contained in the lease sale notices, including parcel number, 
acreage amount, and whether the parcel was deferred or the acreage was 
modified before lease sale.[Footnote 24] The 53 lease sales comprised 
6,451 parcels covering 6.9 million acres of land. For those parcels 
that were offered at lease sale, we gathered data on final acreage 
amounts and whether the parcels sold competitively (that is, during 
the lease sale auction; parcels unsold at auction may be leased 
noncompetitively later). For parcels that sold competitively, we also 
recorded the winning bid amount per acre, as well as the total bid 
amount. Second, we obtained lease information from the agency's lease 
record-keeping system, Legacy Rehost System 2000 (LR2000), for all 
leases issued in the four state offices from fiscal year 2007 through 
March 25, 2010, including the type of lease (competitive or 
noncompetitive), the lease sale date, and the date the lease was 
issued. Third, for fiscal years 2007-2009, we obtained protest 
information from BLM's "public challenge module," which it developed 
as a component of LR2000 to track protests, among other things, to its 
lease sales. (BLM required staff to begin entering protest information 
in the module starting in 2007.) Using unique identifiers assigned to 
each parcel, we then matched the records obtained from the three data 
sources and merged them to conduct various data analyses. 

To determine the reliability of the three data sources, we interviewed 
officials responsible for the data and data systems; reviewed system 
documentation including manuals, users' guides, and guidance; and 
performed electronic and logic tests of the data. On the basis of our 
assessment, we concluded that the lease sale record data and the 
LR2000 lease data were sufficiently reliable for our purposes. To 
further assess the completeness of the protest information contained 
in the module, we compared the module's data with protest records 
obtained from BLM state offices for a random sample of 12 of the 53 
lease sales held in the four state offices during fiscal years 2007-
2009.[Footnote 25] The 12 lease sales comprised 1,244 parcels covering 
roughly 1.4 million acres of land.[Footnote 26] From our assessment of 
the module, we found that it did not contain complete records: While 
the module was sufficiently reliable in containing parcels that sold 
competitively, it did not always contain records for parcels BLM 
withdrew (deferred) before lease sales. Additionally, we found that 
the protest-related information the module did contain was not always 
complete, accurate, or consistent and therefore was not reliable. 

To determine what information BLM makes publicly available related to 
protests, we reviewed the process followed by each BLM state office 
for reviewing protests and providing information about such decisions 
to the public, which included interviewing BLM state office officials, 
reviewing protest-related information available on BLM's Web site and 
through other sources, and synthesizing information gathered during 
our interviews with stakeholder groups. To determine the extent to 
which parcels were protested and the nature of protests, we compared 
BLM's lease sale records with the data available in BLM's public 
challenge module. In addition, we further reviewed protest information 
for our random sample of 12 lease sales. Specifically, for each lease 
sale in our sample, we obtained and analyzed all submitted protest 
letters, which totaled 86, and BLM's responses to these letters. We 
analyzed information on whether each parcel included in the notice for 
each of these lease sales was protested and, for protested parcels, 
the outcome of the protests, including whether BLM's protest decisions 
were subsequently appealed or litigated. We also analyzed information 
on the groups filing the protests and their reasons for filing them 
(see appendix II).[Footnote 27] For protested parcels BLM deferred 
from lease sales, we also interviewed BLM state office leasing 
officials about the reasons they deferred these parcels and compared 
their reasons with the protest letters for the same parcels. 

To determine the extent to which protests could affect the timing of 
BLM's lease sale decisions, we analyzed data on all parcels BLM sold 
competitively in the four state offices during fiscal years 2007-2009, 
using BLM's lease sale records, lease issuance dates from LR2000, and 
protest information from the public challenge module. Specifically, 
for all parcels sold competitively during this period whose leases had 
been issued or remained unissued as of March 25, 2010, we calculated 
the length of time between each parcel's sale date and lease issuance 
date. We based our determination of whether a lease was issued late on 
the date of the lease sale plus 15 days to allow for the 10 business 
days that winning bidders have to submit required payments to BLM. We 
cross-tabulated the data into a three-way table and examined the 
association among whether a parcel was issued late, whether it was 
protested, and the state in which the parcel was located. In 
conducting tests of statistical significance, we found that protested 
parcels were significantly more likely to be issued late, even after 
accounting for state office. Given the data available, however, we 
were unable to examine the association between whether a lease was 
issued late and other potentially relevant factors, including workload 
in the state offices, the number of protests, the validity of concerns 
raised in protest letters, and the amount of review that was required 
by BLM to resolve protests. Thus, although our analysis is consistent 
with the hypothesis that protests contribute to lease delays, it is 
not sufficient to establish a cause-and-effect relationship. 

To examine the extent to which protests could affect the bid prices of 
leases, we analyzed BLM's lease sale and protest data for all 
competitively sold leases for parcels in the four state offices during 
fiscal years 2007-2009. Specifically, to determine if bids and protest 
activity were associated, we conducted several statistical analyses. 
We analyzed data on the price of bids per acre and several measures of 
protest activity, including whether the lease sale was protested, the 
number of protests received for a specific parcel, and various 
measures of delay in issuing leases on protested parcels after a lease 
sale.[Footnote 28] We conducted a separate statistical analysis for 
each lease sale in each of the four state offices, which allowed us to 
control for location (at the state office level) and for factors that 
might vary over time, such as oil and natural gas prices.[Footnote 29] 

To analyze the extent to which protests could affect oil and gas 
development activities, we collected and analyzed national data on oil 
and gas development and production activities, specifically, the 
number of exploratory and developmental wells drilled and data on oil 
and gas prices from the Bureau of Labor Statistics and the Energy 
Information Administration. To assess the ability of development and 
production in the oil and gas industries to respond to changes in oil 
and natural gas prices, we analyzed how movements in those prices from 
1990 through 2009 changed in relation to development and production 
activities over the same period. To determine the proportion of 
federal lands that were leased, the proportion leased and under 
production, and how these proportions compared with total oil and gas 
production nationwide, we obtained from BLM and analyzed oil and gas 
leasing and production data on federal lands, and we obtained U.S. 
production data from the Energy Information Administration; these data 
were for fiscal year 2009. We assessed the reliability of these data 
and found them to be sufficiently reliable for the purposes of this 
report. 

We conducted this performance audit from June 2009 through July 2010, 
in accordance with generally accepted government auditing standards. 
Those standards require that we plan and perform the audit to obtain 
sufficient, appropriate evidence to provide a reasonable basis for our 
findings and conclusions based on our audit objectives. We believe 
that the evidence obtained provides a reasonable basis for our 
findings and conclusions based on our audit objectives. 

[End of section] 

Appendix II: Protest Information from a Sample of Lease Sales in Four 
Selected State Offices, Fiscal Years 2007-2009: 

The following tables present information based on our review of a 
sample of 12 lease sales held in the state offices of Colorado, New 
Mexico, Utah, and Wyoming from fiscal year 2007 through fiscal year 
2009. The tables are based on a total of 86 protest letters associated 
with the 12 sampled lease sales. 

Table 5: Count of Protests Filed in a Sample of 12 Lease Sales, by 
State Office, Fiscal Years 2007-2009: 

Fiscal year 2007: 

BLM state office (lease sale): Colorado (August); 
Parcels in lease sale notice: 109; 
Parcels protested: 104; 
BLM action on protested parcels: Deferred: 10; 
BLM action on protested parcels: Dismissed: 94; 
BLM action on protested parcels: Pending[A]: 0. 

BLM state office (lease sale): New Mexico (July); 
Parcels in lease sale notice: 114; 
Parcels protested: 73; 
BLM action on protested parcels: Deferred: 1; 
BLM action on protested parcels: Dismissed: 72; 
BLM action on protested parcels: Pending[A]: 0. 

BLM state office (lease sale): Utah (February); 
Parcels in lease sale notice: 79; 
Parcels protested: 76; 
BLM action on protested parcels: Deferred: 14; 
BLM action on protested parcels: Dismissed: 5; 
BLM action on protested parcels: Pending[A]: 57. 

BLM state office (lease sale): Wyoming (April); 
Parcels in lease sale notice: 159; 
Parcels protested: 96; 
BLM action on protested parcels: Deferred: 0; 
BLM action on protested parcels: Dismissed: 96; 
BLM action on protested parcels: Pending[A]: 0. 

Fiscal year 2007: Total; 
Parcels in lease sale notice: 461; 
Parcels protested: 349; 
BLM action on protested parcels: Deferred: 25; 
BLM action on protested parcels: Dismissed: 267; 
BLM action on protested parcels: Pending[A]: 57. 

Fiscal year 2008: 

BLM state office (lease sale): Colorado (August); 
Parcels in lease sale notice: 46; 
Parcels protested: 31; 
BLM action on protested parcels: Deferred: 0; 
BLM action on protested parcels: Dismissed: 31; 
BLM action on protested parcels: Pending[A]: 0. 

BLM state office (lease sale): New Mexico (July); 
Parcels in lease sale notice: 80; 
Parcels protested: 80; 
BLM action on protested parcels: Deferred: 2; 
BLM action on protested parcels: Dismissed: 78; 
BLM action on protested parcels: Pending[A]: 0. 

BLM state office (lease sale): Utah (June); 
Parcels in lease sale notice: 13; 
Parcels protested: 13; 
BLM action on protested parcels: Deferred: 3; 
BLM action on protested parcels: Dismissed: 0; 
BLM action on protested parcels: Pending[A]: 10. 

BLM state office (lease sale): Wyoming (April); 
Parcels in lease sale notice: 265; 
Parcels protested: 218; 
BLM action on protested parcels: Deferred: 0; 
BLM action on protested parcels: Dismissed: 218; 
BLM action on protested parcels: Pending[A]: 0. 

Fiscal year 2008: Total; 
Parcels in lease sale notice: 404; 
Parcels protested: 342; 
BLM action on protested parcels: Deferred: 5; 
BLM action on protested parcels: Dismissed: 327; 
BLM action on protested parcels: Pending[A]: 10. 

Fiscal year 2009: 

BLM state office (lease sale): Colorado (September); 
Parcels in lease sale notice: 38; 
Parcels protested: 38; 
BLM action on protested parcels: Deferred: 10; 
BLM action on protested parcels: Dismissed: 28; 
BLM action on protested parcels: Pending[A]: 0. 

BLM state office (lease sale): New Mexico (April); 
Parcels in lease sale notice: 87; 
Parcels protested: 52; 
BLM action on protested parcels: Deferred: 9; 
BLM action on protested parcels: Dismissed: 43; 
BLM action on protested parcels: Pending[A]: 0. 

BLM state office (lease sale): Utah (March); 
Parcels in lease sale notice: 109; 
Parcels protested: 109; 
BLM action on protested parcels: Deferred: 11; 
BLM action on protested parcels: Dismissed: 98; 
BLM action on protested parcels: Pending[A]: 0. 

BLM state office (lease sale): Wyoming (February); 
Parcels in lease sale notice: 145; 
Parcels protested: 145; 
BLM action on protested parcels: Deferred: 8; 
BLM action on protested parcels: Dismissed: 0; 
BLM action on protested parcels: Pending[A]: 137. 

Fiscal year 2009: Total; 
Parcels in lease sale notice: 379; 
Parcels protested: 344; 
BLM action on protested parcels: Deferred: 38; 
BLM action on protested parcels: Dismissed: 169; 
BLM action on protested parcels: Pending[A]: 137. 

Total for 3 fiscal years: 
Parcels in lease sale notice: 1,244; 
Parcels protested: 1,035; 
BLM action on protested parcels: Deferred: 68; 
BLM action on protested parcels: Dismissed: 763; 
BLM action on protested parcels: Pending[A]: 204. 

Source: GAO analysis of protest data obtained from BLM state offices. 

[A] As of March 2010. 

[End of table] 

Table 6: Groups and Individuals Filing Protest Letters in a Sample of 
12 Lease Sales, by State Office, Fiscal Years 2007-2009: 

BLM state office, lease sale date (parcels in lease sale 
notice/parcels protested): Colorado, August 2007 (109/104): 

Group or individual filing protest letter: Alamosa Riverkeeper; 
Number of protested parcels in letter: 9. 

Group or individual filing protest letter: Amigos Bravos; 
Number of protested parcels in letter: 9. 

Group or individual filing protest letter: Center for Native 
Ecosystems; 
Number of protested parcels in letter: 104. 

Group or individual filing protest letter: Conejos County Board of 
Commissioners; 
Number of protested parcels in letter: 9. 

Group or individual filing protest letter: Costilla County Board of 
Commissioners; 
Number of protested parcels in letter: 9. 

Group or individual filing protest letter: Private individuals (2); 
Number of protested parcels in letter: 9. 

Group or individual filing protest letter: Private individuals (2); 
Number of protested parcels in letter: 9. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 9. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 9. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 9. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 9. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 9. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 9. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 4. 

Group or individual filing protest letter: Private individuals (2); 
Number of protested parcels in letter: 1. 

Group or individual filing protest letter: Private individuals (2); 
Number of protested parcels in letter: 1. 

Group or individual filing protest letter: San Luis Valley Ecosystem 
Council; 
Number of protested parcels in letter: 9. 

Group or individual filing protest letter: The Wilderness Society, 
Colorado Environmental Coalition, San Juan Citizens Alliance, Western 
Colorado Congress, Friends of the Yampa, San Luis Valley Ecosystem 
Council; 
Number of protested parcels in letter: 11. 

Group or individual filing protest letter: Theodore Roosevelt 
Conservation Partnership; 
Number of protested parcels in letter: 56. 

Group or individual filing protest letter: Western Resources Advocates 
on behalf of the Colorado Environmental Coalition, Colorado Mountain 
Club, San Juan Citizens Alliance, The Wilderness Society; 
Number of protested parcels in letter: 9. 

BLM state office, lease sale date (parcels in lease sale 
notice/parcels protested): Colorado, August 2008 (46/31): 

Group or individual filing protest letter: Aspen Valley Land Trust; 
Number of protested parcels in letter: 1. 

Group or individual filing protest letter: Center for Native 
Ecosystems; 
Number of protested parcels in letter: 31. 

Group or individual filing protest letter: Colorado State Department 
of Natural Resources; 
Number of protested parcels in letter: 31. 

Group or individual filing protest letter: Earthjustice and Western 
Resource Advocates on behalf of Colorado Environmental Coalition, 
Colorado Mountain Club, Center for Native Ecosystems, Colorado Trout 
Unlimited, Environment Colorado, National Wildlife Federation, Natural 
Resources Defense Council, Rock the Earth, Sierra Club, The Wilderness 
Society, Wilderness Workshop; 
Number of protested parcels in letter: 31. 

Group or individual filing protest letter: Gunnison County Board of 
County Commissioners; 
Number of protested parcels in letter: 31. 

Group or individual filing protest letter: National Wildlife 
Federation, Colorado Wildlife Federation; 
Number of protested parcels in letter: 31. 

Group or individual filing protest letter: Pitkin County Commissioners; 
Number of protested parcels in letter: 31. 

Group or individual filing protest letter: Private individuals 
(13,031); 
Number of protested parcels in letter: 31. 

Group or individual filing protest letter: Private individuals (1,600); 
Number of protested parcels in letter: 31. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 31. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 31. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 31. 

Group or individual filing protest letter: Sierra Club and private 
individuals (2,239); 
Number of protested parcels in letter: 31. 

Group or individual filing protest letter: Trout Unlimited National, 
Colorado Trout Unlimited; 
Number of protested parcels in letter: 31. 

BLM state office, lease sale date (parcels in lease sale 
notice/parcels protested): Colorado, September 2009 (38/38): 

Group or individual filing protest letter: Center for Native 
Ecosystems; 
Number of protested parcels in letter: 35. 

Group or individual filing protest letter: Colorado State Department 
of Natural Resources, Division of Wildlife; 
Number of protested parcels in letter: 5. 

Group or individual filing protest letter: Congressman John T. Salazar; 
Number of protested parcels in letter: 4. 

Group or individual filing protest letter: National Wildlife 
Federation, Colorado Wildlife Federation; 
Number of protested parcels in letter: 7. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 38. 

Group or individual filing protest letter: Theodore Roosevelt 
Conservation Partnership; 
Number of protested parcels in letter: 19. 

Group or individual filing protest letter: Western Resource Advocates 
on behalf of Colorado Environmental Coalition, Center for Native 
Ecosystems, San Luis Valley Ecosystem Council; 
Number of protested parcels in letter: 16. 

Group or individual filing protest letter: Wolf Springs Ranches Inc.; 
Number of protested parcels in letter: 2. 

BLM state office, lease sale date (parcels in lease sale 
notice/parcels protested): New Mexico, July 2007 (114/73): 

Group or individual filing protest letter: Forest Guardians, Dine 
CARE, New Mexico Wildlife Federation; 
Number of protested parcels in letter: 73. 

BLM state office, lease sale date (parcels in lease sale 
notice/parcels protested): New Mexico, July 2008 (80/80): 

Group or individual filing protest letter: Western Environmental Law 
Center on behalf of Amigos Bravos; Albuquerque Wildlife Federation; 
Arroyo Hondo Land Trust; Back Country Horsemen of New Mexico, Lower 
Rio Grande Chapter and Middle Rio Grande Chapter; Bell Fine Jewelry; 
Caudill Enterprises/Caudill Custom Stocks; Common Ground United; 
Defenders of Wildlife; EcoFlight; Environment New Mexico; Masonry 
Structures, Inc.; New Mexico Trout; New Mexico Wilderness Alliance; 
New Mexico Wildlife Federation; Oil and Gas Accountability Project, a 
program of EARTHWORKS; Rancho Cerro Pelon; Reflective Images, Inc.; 
Rio Grande Return; Rocky Mountain Clean Air Action; San Juan Citizens 
Alliance; Southwest Environmental Center; Upper Gila Watershed 
Alliance; Viva Rio Arriba Ranch; 
Number of protested parcels in letter: 51. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 51. 

Group or individual filing protest letter: WildEarth Guardians; 
Number of protested parcels in letter: 80. 

BLM state office, lease sale date (parcels in lease sale 
notice/parcels protested): New Mexico, April 2009 (87/52): 

Group or individual filing protest letter: Western Environmental Law 
Center on behalf of Amigos Bravos, Center for Biological Diversity, 
Common Ground United, Natural Resources Defense Council, New Mexico 
Wildlife Federation, San Juan Citizens Alliance, Southwest 
Consolidated Sportsmen, WildEarth Guardians; 
Number of protested parcels in letter: 52. 

BLM state office, lease sale date (parcels in lease sale 
notice/parcels protested): Utah, February 2007 (79/76): 

Group or individual filing protest letter: Center for Native 
Ecosystems, Forest Guardians; 
Number of protested parcels in letter: 69. 

Group or individual filing protest letter: Southern Utah Wilderness 
Alliance, Natural Resources Defense Council, The Wilderness Society, 
National Trust for Historic Preservation; 
Number of protested parcels in letter: 14. 

Group or individual filing protest letter: Vessels Coal Gas, Inc.; 
Number of protested parcels in letter: 3. 

BLM state office, lease sale date (parcels in lease sale 
notice/parcels protested): Utah, June 2008 (13/13): 

Group or individual filing protest letter: Center for Native 
Ecosystems; 
Number of protested parcels in letter: 10. 

Group or individual filing protest letter: Red Rock Forests, private 
individual; 
Number of protested parcels in letter: 13. 

Group or individual filing protest letter: Theodore Roosevelt 
Conservation Partnership; 
Number of protested parcels in letter: 12. 

BLM state office, lease sale date (parcels in lease sale 
notice/parcels protested): Utah, March 2009 (109/109): 

Group or individual filing protest letter: Center for Native 
Ecosystems; 
Number of protested parcels in letter: 97. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 95. 

Group or individual filing protest letter: Red Rock Forests; 
Number of protested parcels in letter: 29. 

Group or individual filing protest letter: Theodore Roosevelt 
Conservation Partnership; 
Number of protested parcels in letter: 67. 

BLM state office, lease sale date (parcels in lease sale 
notice/parcels protested): Wyoming, April 2007 (159/96): 

Group or individual filing protest letter: Biodiversity Conservation 
Alliance, Wyoming Outdoor Council, Center for Native Ecosystems, 
Powder River Basin Resource Council, Clark Resource Council, Friends 
of the Red Desert; 
Number of protested parcels in letter: 68. 

Group or individual filing protest letter: Center for Native 
Ecosystems, Biodiversity Conservation Alliance; 
Number of protested parcels in letter: 47. 

Group or individual filing protest letter: Theodore Roosevelt 
Conservation Partnership; 
Number of protested parcels in letter: 21. 

BLM state office, lease sale date (parcels in lease sale 
notice/parcels protested): Wyoming, April 2008 (265/218): 

Group or individual filing protest letter: Biodiversity Conservation 
Alliance, Center for Native Ecosystems, Wyoming Outdoor Council, Clark 
Resource Council, Wyoming Wilderness Association; 
Number of protested parcels in letter: 45. 

Group or individual filing protest letter: Center for Native 
Ecosystems, Biodiversity Conservation Alliance; 
Number of protested parcels in letter: 209. 

Group or individual filing protest letter: National Audubon Society; 
Number of protested parcels in letter: 33. 

Group or individual filing protest letter: Private individuals (2); 
Number of protested parcels in letter: 2. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 2. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 2. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 2. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 2. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 2. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 2. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 2. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 2. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 2. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 2. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 2. 

Group or individual filing protest letter: Private individual; 
Number of protested parcels in letter: 2. 

Group or individual filing protest letter: Theodore Roosevelt 
Conservation Partnership; 
Number of protested parcels in letter: 73. 

Group or individual filing protest letter: Wyoming Outdoor Council, 
Natural Resources Defense Council, Wyoming Chapter of the Sierra Club, 
The Wilderness Society, Biodiversity Conservation Alliance, Wyoming 
Association of Churches; 
Number of protested parcels in letter: 2. 

Group or individual filing protest letter: Wyoming Wilderness 
Association; 
Number of protested parcels in letter: 2. 

BLM state office, lease sale date (parcels in lease sale 
notice/parcels protested): Wyoming, February 2009 (145/145): 

Group or individual filing protest letter: Biodiversity Conservation 
Alliance, Wyoming Outdoor Council; 
Number of protested parcels in letter: 145. 

Group or individual filing protest letter: Center for Native 
Ecosystems, Biodiversity Conservation Alliance; 
Number of protested parcels in letter: 106. 

Group or individual filing protest letter: National Outdoor Leadership 
School, High Wild and Lonesome Horseback Adventures, LLC; 
Number of protested parcels in letter: 5. 

Group or individual filing protest letter: Theodore Roosevelt 
Conservation Partnership; 
Number of protested parcels in letter: 72. 

Group or individual filing protest letter: Trout Unlimited; 
Number of protested parcels in letter: 1. 

Group or individual filing protest letter: Western Resource Advocates 
on behalf of National Audubon Society, Audubon Wyoming; 
Number of protested parcels in letter: 28. 

Group or individual filing protest letter: Wyoming Outdoor Council, 
The Wilderness Society, Natural Resources Defense Council, 
Biodiversity Conservation Alliance, Greater Yellowstone Coalition; 
Number of protested parcels in letter: 8. 

Source: GAO analysis of protest data obtained from BLM state offices. 

[End of table] 

To analyze the reasons for filing protests, we reviewed each of the 86 
protest letters associated with the 12 lease sales in our sample. To 
document the concerns raised in each letter, we developed categories 
through an inductive process that involved reviewing a small number of 
protest letters and then identifying natural groupings, or categories, 
of concerns. Two analysts then independently reviewed the letters and 
compared the categories. Table 7 presents the overall categories of 
concern we encountered and illustrates the types of concerns we 
identified in reviewing the protest letters. 

Table 7: Reasons for Filing Protests, as Cited in Protest Letters from 
a Sample of 12 Lease Sales in Four State Offices, Fiscal Years 2007- 
2009: 

Category of concern: Fish and wildlife and their habitats; 
Concerns cited: 
* Effects on sensitive species or their habitats, including species 
listed as endangered, threatened, or candidates under the Endangered 
Species Act, or species otherwise identified as sensitive, such as 
sage grouse, native fish species, or bald eagles; 
* Effects on fish and wildlife species not identified as sensitive, 
including impacts on population, health, behavior, or habitats, such 
as the breeding and nesting sites of birds, migratory routes and 
winter ranges for big game such as elk and mule deer, or the riparian 
habitats of fish species. 

Category of concern: Natural environment; 
Concerns cited: 
* Water quality, such as impacts from sedimentation, polluted runoff 
contaminating surface or ground water, water supply or drinking water 
quality, or watershed health; 
* Air quality, including increased emissions of carbon dioxide, carbon 
monoxide, nitrous oxide, methane, or air particulates, or impacts on 
the ozone layer; 
* Other environmental concerns, such as noise pollution, climate 
effects from greenhouse gas emissions, soil erosion, or wilderness 
characteristics. 

Category of concern: Human use; 
Concerns cited: 
* Public enjoyment and use, including impacts on hunting, fishing, 
hiking, biking, camping, horseback riding, scenic views, and human 
health and safety; 
* Cultural sites, such as potential harm to ancestral grounds, 
historic sites, and other archaeological or paleontological resources; 
* Livelihood and economies, such as concerns about livestock and 
agricultural productivity, impacts on local businesses, state revenues 
from leasing, and rural and noneconomic values including ways of life 
and suburban encroachment. 

Category of concern: Alleged violations of statute or policy; 
Concerns cited: 
* Potential violations of federal laws, including the Clean Air Act, 
Clean Water Act, Endangered Species Act, Federal Land Policy and 
Management Act, National Environmental Policy Act, Mineral Leasing 
Act, and National Historic Preservation Act; 
* Potential violations of Interior or BLM policies or guidance, 
including Interior policy on analyzing potential climate change 
impacts when undertaking planning and management activities and BLM 
guidance on how to manage species with special status or on 
determining the adequacy of environmental analyses before making 
leasing decisions. 

Source: GAO analysis of protest data obtained from BLM state offices. 

[End of table] 

[End of section] 

Appendix III: Description of Litigation on Selected Lease Sales: 

This appendix describes litigation surrounding several of BLM's oil 
and gas lease sales held during fiscal years 2007-2009: New Mexico's 
April and July 2008 lease sales of parcels across New Mexico, 
Colorado's August 2008 lease sale of parcels atop the Roan Plateau in 
northwestern Colorado, and Utah's December 2008 lease sale of parcels 
in eastern Utah.[Footnote 30] 

New Mexico's April and July 2008 Lease Sales: 

In March 2008, several environmental and community organizations filed 
a protest opposing the leasing of all 51 parcels located in the state 
of New Mexico that BLM identified in its lease sale notice for its 
April 2008 lease sale, arguing, among other things, that BLM failed to 
adequately analyze the environmental effects of greenhouse gas 
emissions that would result from past, present, and future oil and gas 
development on BLM lands. In April 2008 BLM carried out the lease sale 
after removing 40 of the 100 originally proposed parcels from the 
sale, and in July it dismissed the protests on the remaining parcels 
that were offered at the lease sale.[Footnote 31] The agency noted 
that on receipt of the groups' protest letter, it directed each BLM 
field office in New Mexico to prepare a new environmental assessment 
to analyze the potential impacts from lease exploration and 
development and to account for potential greenhouse gasses during 
exploration, development, and transportation. 

In May 2008, BLM announced the next lease sale, identifying 80 
parcels, to be held in July. Numerous groups filed protests against 
all the parcels located in New Mexico, raising issues similar to those 
that were raised at the April sale. BLM field offices completed their 
greenhouse gas environmental assessments just before the July sale. 
BLM held the sale in July, offering 78 parcels for lease, and 
dismissed all the protests the following October. In January 2009, 
several of the groups that had filed protests challenged the April and 
July 2008 New Mexico lease sales in federal court.[Footnote 32] The 
groups argued, among other things, that BLM's planning and decision-
making process for the lease sales failed to address the global-
warming impacts of the oil and gas development, in violation of the 
National Environmental Policy Act, the Federal Land Policy and 
Management Act, and Department of the Interior Secretarial Order 3226. 
[Footnote 33] As of May 2010, this case was pending. 

Colorado's August 2008 Lease Sale: 

In June 2007, BLM approved a resource management plan providing for 
oil and gas development on the Roan Plateau. In August 2008, BLM 
conducted a lease sale including parcels on top of the plateau, all of 
which were protested by multiple groups. The Assistant Secretary of 
the Interior for Lands and Minerals dismissed the protests related to 
the parcels on the plateau, and BLM issued these leases in September 
2008. Environmental organizations filed a lawsuit challenging both the 
resource management plan and the lease sale, arguing that these 
actions violated the National Environmental Policy Act and the Federal 
Land Policy Management Act.[Footnote 34] Four settlement conferences 
have occurred, the most recent in May 2010, but the parties did not 
reach agreement, and as of May 2010, the case was pending. See table 8 
for a more detailed chronology of the events surrounding the Roan 
Plateau lease sale. 

Table 8: Chronology of Events Surrounding the Roan Plateau Lease Sale: 

Date: November 1997; 
Action: National Defense Authorization Act for Fiscal Year 1998 (Pub. 
L. No. 105-85, § 3404(a)) transfers management authority over the Roan 
Plateau Planning Area from the Department of Energy to BLM. 

Date: November 2000; 
Action: BLM begins its resource management plan amendment process for 
the transferred lands. 

Date: November 2004; 
Action: BLM issues a draft environmental impact statement for the 
resource management plan amendment. 

Date: October 2006; 
Action: BLM receives 42 protest submissions by the close of the public 
protest period. 

Date: June 2007; 
Action: BLM amends the Glenwood Springs Field Office resource 
management plan to provide for oil and gas development atop the Roan 
Plateau. BLM dismisses all protests against the proposed plan. 

Date: December 2007; 
Action: Colorado's governor requests BLM to limit oil and gas 
development atop the plateau. 

Date: March 2008; 
Action: BLM further amends the resource management plan to designate 
additional protected acreage atop the plateau, although less than the 
amount Colorado requested. 

Date: June 2008; 
Action: BLM announces it will offer for leasing in August all BLM 
lands available for mineral development on the plateau. 

Date: July 2008; 
Action: Environmental groups challenge BLM's approval of the resource 
management plan amendment and proposed lease sale in federal court, 
alleging that these actions violated (1) the National Environmental 
Policy Act by, among other things, failing to analyze a reasonable 
range of alternatives to the plan's oil and gas development approach 
and (2) Federal Land Management Policy Act by failing to ensure 
compliance with the Clean Air Act's ozone requirements (Colorado 
Environmental Coalition v. Salazar, D. Col., Case 1:08-cv-01460-MSK- 
KLM). The state of Colorado files a protest to the lease sale, 
asserting that the sale fails to protect valuable fish and wildlife 
habitat, will not maximize economic return to the state, and could 
result in the state's not receiving its share of mineral bonuses and 
royalties. Several environmental groups file protests as well, making 
arguments similar to those in the lawsuit. 

Date: August 2008; 
Action: BLM holds a lease sale for all of its lands atop the plateau 
designated as available for oil and gas development. 

Date: September 2008; 
Action: Assistant Secretary of the Interior for Lands and Minerals 
dismisses the protests against the lease sale. Because the Assistant 
Secretary, rather than a BLM official, dismisses the appeals, 
protesters cannot appeal the dismissals to the Interior Board of Land 
Appeals. 

Date: October 2008; 
Action: BLM issues the leases for all parcels sold at the lease sale. 

Date: March 2009; 
Action: Settlement discussions begin in Colorado Environmental 
Coalition v. Salazar. 

Date: May 2010; 
Action: Latest settlement discussions fail to produce agreement. 

Source: GAO analysis. 

[End of table] 

Utah's December 2008 Lease Sale: 

In December 2008, BLM's Utah state office held a lease sale offering 
over 100 parcels in eastern Utah, many of which were protested. In 
January 2009, in response to a lawsuit by several environmental 
groups, a federal district court entered a temporary injunction 
against the sale of 77 of the parcels after concluding that the groups 
had established a likelihood of success on their claims that the lease 
sale violated the National Environmental Policy Act, the Federal Land 
Policy and Management Act, and the National Historic Preservation Act. 
[Footnote 35] 

In February 2009, the Secretary of the Interior concluded that the 
issues raised by the court, along with other concerns that had been 
raised about the lease sale, merited a special review. Citing 
controversy over the degree of coordination between BLM and the 
National Park Service regarding some of the parcels offered for sale, 
as well as over the adequacy of BLM's environmental analyses 
associated with the parcels, the Secretary issued a memorandum to 
BLM's Utah state office, directing it to withdraw the 77 parcels 
covered by the injunction from further consideration in this lease 
sale.[Footnote 36] 

In May 2009, several winning bidders and three Utah counties filed 
suits in federal district court in Utah, seeking to compel the 
government to issue the leases.[Footnote 37] The bidders and counties 
argued, among other things, that the Secretary's action violated a 
provision of the Mineral Leasing Act stating that "leases shall be 
issued within 60 days following payment by the successful bidder of 
the remainder of the bonus bid, if any, and the annual rental for the 
first lease year."[Footnote 38] The government contends that nothing 
in the 60-day provision prevents the Secretary from withdrawing a 
parcel from consideration in a lease sale at any time before lease 
issuance. As of May 2010, these cases were still pending. 

[End of section] 

Appendix IV: Comments from the Department of the Interior: 

United States Department of the Interior: 
Office Of The Secretary: 
Washington, DC 20240: 

July 14, 2010: 

Mr. Frank Rusco: 
Director, Natural Resources and Environment: 
Government Accountability Office: 
441 G Street, N.W. 
Washington, DC 20548: 

Dear Mr. Rusco: 

Thank you for the opportunity to review and comment on the Government 
Accountability Office (GAO) draft report entitled, "BLM's Management 
of Public Protests to Its Lease Sales Needs Improvement," (GA0-10-
670). The Department of the Interior (Department) appreciates the 
recognition of its efforts toward collecting agency-wide protest data 
and implementing leasing reform policies to improve public involvement 
and transparency for lease sales. The GAO's draft report contains two 
recommendations "to improve the efficiency and transparency of BLM's 
process with regard to protests of its lease sale decisions and to 
strengthen how BLM carries out its responsibilities under the Mineral 
Leasing Act." The Department generally agrees with the findings and 
concurs with the two recommendations. 

The GAO first recommends that BLM "revisit the way it tracks protest 
information and in doing so ensure that complete and consistent 
information is collected and made publicly available." The Department 
concurs with Recommendation 1. The Public Challenge Module reviewed in 
the draft report has not been a useful tool for the Bureau of Land 
Management (BLM) or the public. While policy and data entry standards 
have been established to collect relevant information regarding 
protests, appeals, and litigation, the system as established has 
limited utility because the collection of public challenge data has 
been incomplete and inconsistent. The BLM will revisit the agency's 
use of this module and determine if the module can be redesigned, if a 
commercial off the shelf (COTS) application would be more effective, 
or if the existing LR2000 case recordation system can be modified to 
effectively collect and make available public challenge data. Once 
analyzed, the BLM will implement an approach to better track protest-
related information by the end of calendar year 2011. 

The GAO next recommends that the BLM improve (a) "the transparency of 
leasing information provided to the public" with respect to the basis 
for its leasing decisions; and (b) "the timeliness of lease issuance, 
without compromising the thoroughness of review". The Department 
concurs with Recommendation 2. As acknowledged in the draft report, 
the BLM is implementing new onshore leasing reform policies that will 
provide earlier opportunities for public input in the lease sale 
process. The Department believes that these reform policies will 
provide the increased public participation and transparency suggested 
under Recommendation 2. Prior to leasing reform, most lease sales were 
based solely on the prior NEPA analysis conducted in support of the 
Resource Management Plan (RMP). Prospective lease sale parcels 
received a field office review prior to the sale to ensure conformance 
with the RMP. With leasing reform, prospective lease parcels will now 
undergo additional environmental review and a new opportunity for 
public comment. Adjustments to the unsigned NEPA documents and lease 
parcel list may be made based on the public comments received. Prior 
to the lease sale the public will be afforded the opportunity to 
protest individual parcels. The results of the protest resolution may 
also be incorporated into the NEPA document and associated decision. 
The BLM will post all associated NEPA documents along with all protest 
response decisions for each sale on that state's web page. The posted 
NEPA documents and protest response decisions will provide the public 
with insight into the role these protests played on lands offered, and 
if these protests influenced the BLM's decision to lease a parcel. The 
Department believes implementation of this new process will address 
the transparency and public access concerns under Recommendation 2. 

Recommendation 2 also called for improving the timeliness of lease 
issuance. To address this concern, the Notice of Competitive Oil and 
Gas Lease Sale will now be posted 90 days before a sale (as compared 
to using the required minimum period of 45 days), This extended 
timeframe will continue to provide the public with an opportunity to 
protest specific parcels in a lease sale, and will also provide a 
better opportunity for the BLM to evaluate and respond to protests 
prior to the sale, The Department believes that this will improve the 
BLM's ability to adequately address a protest within the timeframes 
required for lease issuance under the Mineral Leasing Act. 

If you have any questions about this response please contact LaVanna 
Stevenson-Harris, BLM Audit Liaison Officer, at 202-912-7077. 

Sincerely, 

Signed by: 

Wilma A. Lewis: 
Assistant Secretary: 
Land and Minerals Management: 

[End of section] 

Appendix V: GAO Contact and Staff Acknowledgments: 

GAO Contact: 

Frank Rusco, (202) 512-3841 or ruscof@gao.gov: 

Acknowledgments: 

In addition to the individual name above, Tim Minelli, Assistant 
Director; Catherine Bombico; Adam Bonnifield; Mark A. Braza; Ellen W. 
Chu; Bernice Dawson; Justin Fisher; Charlotte Gamble; Alyssa M. 
Hundrup; Richard P. Johnson; Michael Kendix, Michael Krafve; Jena 
Sinkfield; Douglas Sloane; and Jeff Tessin made key contributions to 
this report. 

[End of section] 

Footnotes: 

[1] The Bureau of Ocean Energy Management, Regulation, and Enforcement 
(formerly the Minerals Management Service), also within Interior, is 
responsible for managing offshore oil and gas resources under federal 
jurisdiction. This report does not include offshore leases. 

[2] The Interior Board of Land Appeals is part of Interior's Office of 
Hearings and Appeals. It reviews and adjudicates appeals concerning 
Interior's land management and mineral resource decisions, including 
leasing decisions made by BLM state offices. 

[3] GAO, Oil and Gas Development: Challenges to Agency Decisions and 
Opportunities for BLM to Standardize Data Collection, [hyperlink, 
http://www.gao.gov/products/GAO-05-124] (Washington, D.C.: Nov. 30, 
2004). 

[4] The New Mexico state office has jurisdiction over Kansas, 
Oklahoma, and Texas, as well as New Mexico, and the Wyoming state 
office has jurisdiction over Wyoming and Nebraska. The data presented 
in this report for the New Mexico and Wyoming state offices include 
data for all the states under their jurisdiction. 

[5] The Mineral Leasing Act of 1920 (Pub. L. No. 66-146 (1920)), as 
amended, and the Mineral Leasing Act for Acquired Lands (Pub. L. No. 
80-382 (1947)), as amended, provide the legislative authority for 
federal oil and gas leasing. BLM's oil and gas leasing regulations are 
located at 43 C.F.R. pt. 3100. BLM cannot issue leases for National 
Forest System lands over the objection of the U.S. Forest Service. 43 
C.F.R. § 3101.7-1(c). Generally, for lands administered by other 
agencies, BLM must either obtain the consent of (for acquired lands) 
or consult with (for public-domain lands) the agency responsible. 43 
C.F.R. § 3101.7-1(a),(b). 

[6] BLM also documents compliance with NEPA using a "determination of 
NEPA adequacy," where the agency determines that a proposed action is 
adequately covered by an existing environmental assessment or 
environmental impact statement. 

[7] In Alaska, the maximum size of a competitively leased parcel is 
5,760 acres. 

[8] This bonus bid is a onetime amount equal to the amount of the 
highest bid. There is a minimum bonus bid that BLM will accept of $2 
per acre or fraction thereof, but there is no maximum bid. 

[9] 30 U.S.C. § 226(b)(1)(A). On the day of the lease sale, the 
minimum bonus bid of $2 per acre and the first year's rent are due to 
BLM. Winning bidders then have an additional 10 business days to pay 
the remainder of any additional bid amount that was made above the $2 
minimum. 

[10] SUWA v. Norton, 457 F.Supp.2d 1253, 1255-56 (D. Utah 2006). 

[11] Bureau of Land Management, Oil and Gas Adjudication Handbook: 
Competitive Leases, BLM Manual Handbook H-3120-1 (Washington, D.C., 
1993), 39. BLM regulations state that the authorized officer may 
suspend the offering of a specific parcel while considering a protest 
or appeal against its inclusion in a notice of competitive lease sale. 
43 C.F.R. § 3120.1-3. 

[12] In March 2010, BLM's Wyoming state office posted on its Web site 
the protest letters it received from its June 2008 lease sale forward. 

[13] During its land use planning under the Federal Land Policy and 
Management Act of 1976, as amended (43 U.S.C. § 1701 et seq.), in 
which BLM determines, among other things, which lands in a planning 
area may be available for leasing, BLM provides opportunities for 
public involvement and comment, as well as a specific protest period, 
before finalizing its land use plans. It is not uncommon, however, for 
many years to pass between the time the land use plan is issued and 
when a specific parcel is reviewed for lease sale. Our review focuses 
only on the information made publicly available during the lease sale 
process. 

[14] In contrast, for its land use planning, BLM has developed 
specific agencywide policy for the process to be followed for 
reviewing protests, including a goal of resolving protests to the land 
use plan within 100 days of the close of the protest period and making 
final reports on the resolution of protests available to the public 
via the Internet. 

[15] The stated mission of the Center for Native Ecosystems is to use 
the best available science to participate in policy and administrative 
processes, legal actions, and public outreach and education to protect 
and restore native plants and animals in the Greater Southern Rockies. 

[16] We express no view on whether the Mineral Leasing Act requires 
BLM to issue leases before the 60-day period expires, even if protests 
are pending for those leases, because this issue is in litigation in 
federal district court in Utah. See appendix III for a description of 
this litigation. 

[17] Of the 1,316 competitively sold leases for parcels that were not 
protested, we found that all leases were issued within the 60-day 
window, except for leases on 23 parcels. For these leases, BLM 
officials explained that lease issuance was delayed because they were 
waiting for the lessee to submit required paperwork to join the parcel 
to a unit already in place or they were resolving protests for other 
parcels in the lease sale; for one lease, issuance was delayed because 
of staffing issues. 

[18] An additional five leases, which represent less than 0.25 percent 
of the leases issued during this period for protested parcels, were 
issued after 2 years. 

[19] According to BLM officials, as of May 2010, the agency was 
holding more than $84 million in industry payments for unissued leases 
in Wyoming and more than $10 million in Utah. 

[20] Energy companies take a number of factors into consideration when 
making leasing and other oil and gas development decisions. These 
factors may include the regulatory environment, the proximity of 
parcels to existing productive wells, and geologic information likely 
to indicate the potential productivity of a parcel. We were unable to 
control for all these factors in our analysis, although we did control 
for parcel size, factors that vary over time (such as oil and gas 
prices), and state office location. 

[21] Although a total of 53 lease sales were held during this period 
in the four state offices, some of the lease sales had too few 
observations to conduct the analyses. For example, for lease sales 
where all parcels in the lease sale were protested--so no comparison 
with unprotested parcels was possible--it was not possible to measure 
any effect on bonus bid per acre. 

[22] Because delays in issuing leases occur after a lease sale (that 
is, after leases have been sold to a winning bidder), a delay itself 
could not directly affect bids during that sale. Nevertheless, delays 
are often associated with protests, as our analysis showed, and delays 
may reflect features of protested parcels that bidders might already 
know of that would cause them to offer lower bids, or bidders may be 
reluctant to bid as much if potential delays are possible. 

[23] The relationships illustrated by the figure reflect correlation 
coefficients between percentage change in oil prices and percentage 
change in wells drilled for oil, and between percentage change in gas 
prices and percentage change in gas wells drilled, equal to 62 percent 
and 77 percent, respectively. 

[24] Colorado held 12 lease sales during this period, New Mexico held 
12, Utah held 11, and Wyoming held 18, for a total of 53. 

[25] To ensure representation of each state office (Colorado, New 
Mexico, Utah, and Wyoming) in each fiscal year in our overall sample, 
we randomly sampled the lease sales from each state office and each 
fiscal year separately and compiled our overall sample from these 
results. We excluded Utah's December 2008 lease sale from the list of 
sales from which we drew our sample because this sale was the subject 
of Interior-level reviews, and the status of this sale is the subject 
of pending litigation (see appendix III). 

[26] Because of small sample size, we cannot generalize the results 
from our sample to the entire population of lease sales. 

[27] We found that for some lease sales in our sample, additional 
protest letters were filed after BLM's deadline. We reviewed these 
letters, but because BLM declined to consider these letters, we did 
not include them in our count of protests or our analyses of who 
protested and why. 

[28] We recognize that delays in issuing leases do not occur until 
after the lease sale, so such delays cannot affect sale bids directly. 
It is still possible, however, that long delays might reflect other 
factors potentially affecting lease development that are not captured 
in the data, and such factors might be known to bidders before the 
lease sale and affect their behavior or bid pricing. 

[29] Other factors--such as proximity to existing productive wells, 
geologic information, and other technical information about the likely 
productivity of the area--may affect bid prices, but we were unable to 
control for them because data were not available. 

[30] GAO expresses no views as to the merits of any of the legal 
arguments in these pending cases. 

[31] According to BLM officials, the agency removed 39 of these 40 
parcels from the sale for reasons related to litigation not associated 
with the protests. 

[32] Amigos Bravos et al v. United States Bureau of Land Management et 
al., Civ. No. 09-37 (D.N.M. filed Jan.14, 2009). 

[33] Section 3 of Order 3226, as in effect at the time the complaint 
was filed, states: "Each bureau and office of the Department [of the 
Interior] will consider and analyze potential climate change impacts 
when undertaking long-range planning exercises, when setting 
priorities for scientific research and investigations, when developing 
multi-year management plans, and/or when making major decisions 
regarding the potential utilization of resources under the 
Department's purview." This direction specifically applies to 
"planning and management activities associated with oil, gas and 
mineral development on public lands." Two days after the Amigos Bravos 
complaint was filed, Interior amended Order 3226 to, among other 
things, remove the specific reference to oil, gas, and mineral 
development activities. Order 3226, amendment No. 1 (Jan. 16, 2009). 
In September 2009, Interior repealed the amendment, thus restoring the 
original language of the order. 

[34] Colorado Environmental Coalition v. Salazar, Civ. No. 08-1460 (D. 
Colo. filed July 11, 2008). 

[35] Southern Utah Wilderness Alliance v. Allred, 2009 WL 765882, Civ. 
No. 08-2187 (D.D.C. Jan. 17, 2009). 

[36] The Secretary directed BLM not to accept the high bids on the 77 
contested leases and withdrew the leases from further consideration. 
By this time, however, BLM had already accepted the winning bidders' 
initial payments (including bonus bids and first-year rents) of each 
lease sold. The agency subsequently refunded those payments. In the 
Allred case, plaintiffs challenged the adequacy of the lease sale, as 
well as certain resource management plans in Utah that identified 
specific areas as available for oil and gas leasing. Because the 
leases were withdrawn, plaintiffs did not pursue the lease sale 
portion of the case, but as of March 2010, the resource management 
plan portion of the case was pending. A list of the 77 leases is 
available at [hyperlink, 
http://www.blm.gov/wo/st/en/info/newsroom/2009/february/table_of_utah_oi
l.html] (visited April 27, 2009). 

[37] Impact v. Salazar, Civ. No. 09-435 (D. Utah filed May 13, 2009); 
Twilight Resources v. Salazar, Civ. No. 09-442 (D. Utah filed May 13, 
2009); Uintah County v. Salazar, Civ. No. 09-440 (D. Utah filed May 
13, 2009). 

[38] 30 U.S.C. § 226(b)(1)(A). 

[End of section] 

GAO's Mission: 

The Government Accountability Office, the audit, evaluation and 
investigative arm of Congress, exists to support Congress in meeting 
its constitutional responsibilities and to help improve the performance 
and accountability of the federal government for the American people. 
GAO examines the use of public funds; evaluates federal programs and 
policies; and provides analyses, recommendations, and other assistance 
to help Congress make informed oversight, policy, and funding 
decisions. GAO's commitment to good government is reflected in its core 
values of accountability, integrity, and reliability. 

Obtaining Copies of GAO Reports and Testimony: 

The fastest and easiest way to obtain copies of GAO documents at no 
cost is through GAO's Web site [hyperlink, http://www.gao.gov]. Each 
weekday, GAO posts newly released reports, testimony, and 
correspondence on its Web site. To have GAO e-mail you a list of newly 
posted products every afternoon, go to [hyperlink, http://www.gao.gov] 
and select "E-mail Updates." 

Order by Phone: 

The price of each GAO publication reflects GAO’s actual cost of
production and distribution and depends on the number of pages in the
publication and whether the publication is printed in color or black and
white. Pricing and ordering information is posted on GAO’s Web site, 
[hyperlink, http://www.gao.gov/ordering.htm]. 

Place orders by calling (202) 512-6000, toll free (866) 801-7077, or
TDD (202) 512-2537. 

Orders may be paid for using American Express, Discover Card,
MasterCard, Visa, check, or money order. Call for additional 
information. 

To Report Fraud, Waste, and Abuse in Federal Programs: 

Contact: 

Web site: [hyperlink, http://www.gao.gov/fraudnet/fraudnet.htm]: 
E-mail: fraudnet@gao.gov: 
Automated answering system: (800) 424-5454 or (202) 512-7470: 

Congressional Relations: 

Ralph Dawn, Managing Director, dawnr@gao.gov: 
(202) 512-4400: 
U.S. Government Accountability Office: 
441 G Street NW, Room 7125: 
Washington, D.C. 20548: 

Public Affairs: 

Chuck Young, Managing Director, youngc1@gao.gov: 
(202) 512-4800: 
U.S. Government Accountability Office: 
441 G Street NW, Room 7149: 
Washington, D.C. 20548: