Oil and Gas Development: Improved Collection and Use of Data Could Enhance BLM's Ability to Assess and Mitigate Environmental Impacts
Fast Facts
The Bureau of Land Management requires oil and gas companies on federal lands to use the Bureau's best environmental management practices. The Bureau also inspects oil and gas wells to verify that the practices are in use and assess how well they actually protect the environment.
However, the Bureau cannot be sure that these practices are in place and working well because its field offices document inspections and use data inconsistently.
We made 6 recommendations to help the Bureau improve its inspection data and monitor how well its best environmental management practices are working.
Examples of Bureau of Land Management's Best Management Practices
Photos of erosion control, a protective grate, secondary containment, and remote monitoring.
Highlights
What GAO Found
The extent to which the Bureau of Land Management (BLM) approved requests for exceptions to oil and gas lease and permit requirements is unknown, primarily because BLM's process for considering these requests and documenting decisions varied across field offices. Oil and gas operators may request exceptions to a permit requirement, such as prohibition of drilling in an area during times of the year when certain wildlife are present. BLM may approve such a request—allowing the operator to continue to drill during a portion of the normally prohibited time—if, for instance, no wildlife are present. GAO's survey of 42 BLM offices found that fewer than half tracked data on exception requests. Additionally, GAO found that the process for considering these requests and documenting decisions varied. BLM does not have a policy requiring field offices to consistently track exception data or documented procedures specifying how requests should be considered and documented. Because BLM does not consistently track exception request data or have a consistent process for considering requests and clearly documenting decisions, BLM may be unable to provide reasonable assurance that it is meeting its environmental responsibilities.
BLM has consistently involved the public in developing lease requirements and, to a lesser extent, permit requirements. For example, GAO reviewed 35 lease sales that occurred from calendar years 2012 through 2015 at the six field offices visited and found that in all cases the field offices provided the public an opportunity to review and comment on lease parcels to be offered for sale. BLM has not generally involved the public in the approval of exception requests. According to BLM's policy, public notification of an exception is not required unless granting it would result in a substantial modification or waiver of a lease requirement, which, according to BLM officials, rarely occurs.
BLM has generally implemented its best management practices policy by including key practices as permit requirements, but it has not consistently documented inspections or used inspection data to assess the policy's effectiveness. The policy identifies four key practices that should be considered for inclusion as permit requirements in nearly all circumstances: (1) painting facilities to blend with the environment, (2) constructing roads to certain BLM standards, (3) implementing interim reclamation, and (4) completing final reclamation. During file reviews at six BLM field offices, GAO found that at least one of the four key practices was included as a permit requirement in almost all of the 109 files reviewed. However, in reviewing documentation of inspections, GAO found that documents were not consistent and not always sufficient to determine whether BLM had verified key practices. GAO further found that BLM generally does not use data collected from inspections to assess the effectiveness of permit requirements in mitigating environmental impacts. BLM does not have guidance specifying how inspections should be documented and how inspection data should be used. Without sufficiently detailed documentation of inspections and effective use of data from inspections, BLM is unable to fully assess the effectiveness of its best management practices policy to mitigate environmental impacts.
Why GAO Did This Study
BLM is responsible for managing oil and gas development on federal lands while mitigating related environmental impacts. BLM seeks to do so, in part, by applying requirements to the leases and drilling permits it issues to operators. These requirements may include environmental mitigation practices outlined in BLM's best management practices policy. In some cases, operators may request exceptions to lease and permit requirements. GAO was asked to examine BLM's efforts to mitigate environmental impacts from oil and gas development.
This report examines the extent to which BLM (1) approved requests for exceptions to lease and permit requirements and how these decisions were made and documented, (2) involved the public in the development of lease and permit requirements and in the approval of exception requests, and (3) implemented and assessed the effectiveness of its best management practices policy. GAO examined laws, regulations, and BLM policies and documents; surveyed and visited BLM field offices; and conducted interviews with BLM officials and other stakeholders.
Recommendations
GAO is making six recommendations, including that BLM develop a policy for tracking and documenting exceptions. Interior generally concurred with GAO's recommendations.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status Sort descending |
|---|---|---|
| Bureau of Land Management | The Director of the Bureau of Land Management should provide additional guidance to field offices on how to collect and use data collected during monitoring inspections and, in doing so, determine and implement an approach for using the data to assess the effectiveness of the agency's mitigation efforts, including its best management practices. |
Open
In February 2024, Interior stated that it was updating its Information Technology system, AFMSS 2, to produce national reports identifying the monitoring inspections BLM conducts and for which resources and assessing whether mitigation efforts have been effective. The Bureau also intends to revise BLM WO IM-2009-224, Use and Application of Fluid Minerals and Environmental Monitoring Program Element - MW, to ensure the use of scientifically based data and more consistent, repeatable methodology. As the BLM incorporates aspects of the Assessment, Inventory, and Monitoring protocols into its oil and gas monitoring, the agency will also implement a reclamation-monitoring database. The BLM will support these improvements with additional training. We will update this when we confirm that these actions have been taken.
|
| Bureau of Land Management | The Director of the Bureau of Land Management should develop bureau-wide written procedures for consistently considering and clearly documenting the information and processes used to make exception decisions. |
Closed – Implemented
In May 2022, Interior officials stated that BLM issued a written policy that updates the policy direction contained in the BLM Washington Office (WO) Instruction Memorandum (IM) 2008-032, Exceptions, Waivers, and Modifications of Fluid Minerals Stipulations and Conditions of Approval, and Associated Rights-of-way Terms and Conditions, to ensure consistent tracking of exception data in field offices across BLM. We reviewed the new memo, IM-2022-003, and found it includes the criteria to consider when considering requests for waivers, exceptions, and modifications for lease stipulations and conditions of approval and how to document the decision in a newly created electronic tracking workbook..
|
| Bureau of Land Management | The Director of the Bureau of Land Management should direct field offices to make the results of exception request decisions available to the public, such as on BLM's public website. |
Closed – Implemented
In May 2022, Interior officials stated that BLM had partially concurred to this recommendation. The officials stated that under existing BLM policies, exception decisions are required to be documented in the appropriate case file. Going forward, the officials stated that the BLM will make these files available to the public upon request. The BLM developed the "Waiver, Exception, and Modification (WEM) Tracking Workbook," to ensure all field offices track and document decisions related to these WEM requests. This workbook is available to all field offices on BLM's Fluid Minerals Surface and Environmental Program SharePoint site.
|
| Bureau of Land Management | The Director of the Bureau of Land Management should clarify guidance related to documentation of environmental inspections to ensure that inspections are documented in a manner that indicates whether all permit requirements were checked as part of the inspection. |
Closed – Implemented
In May 2022, Interior officials state that they had taken actions to update BLM's inspection form. Specifically, on July 15, 2021, BLM updated its Inspection and Enforcement Handbook (H-3160-5), with a list of hyperlinked forms that included a new environmental inspection form. BLM surface inspectors must use ES Inspection Form 3160-33 to ensure that inspections are documented in a manner that indicates whether all permit requirements were checked as part of the inspection.
|
| Bureau of Land Management | The Director of the Bureau of Land Management should establish a policy requiring staff responsible for conducting environmental and monitoring inspections to take standardized training. |
Closed – Implemented
In August 2018, Interior officials stated that a training charter is in the process of being finalized and that BLM's Surface Inspection and Enforcement Certification Handbook is undergoing review and will be issued in August 2018. In October 2018, Interior officials provided documentation demonstrating that BLM had developed and executed a training program for its environmental and monitoring inspection oil and gas staff, which was reinforced by guidance found in its Handbook.
|
| Bureau of Land Management | The Director of the Bureau of Land Management should develop a policy to ensure that field offices consistently track exception data. |
Closed – Implemented
In May 2022, Interior officials stated that BLM issued a written policy that updates the policy direction contained in the BLM Washington Office (WO) Instruction Memorandum (IM) 2008-032, Exceptions, Waivers, and Modifications of Fluid Minerals Stipulations and Conditions of Approval, and Associated Rights-of-way Terms and Conditions, to ensure consistent tracking of exception data in field offices across BLM. We reviewed the new memo, IM-2022-003, and found it includes instructions for documenting waivers, exceptions, and modifications for lease stipulations and conditions of approval in a newly created electronic tracking workbook.
|