Drilling opponents question Roan lease payments estimate
garfield county correspondent
Opponents of oil and gas drilling on the Roan Plateau are pointing to
figures released earlier this month from a federal agency to criticize
claims that Colorado can earn $1 billion in leasing payments if drilling
goes forward on federal lands in the area.
Figures from the Minerals Management Service, part of the U.S. Department of
Interior, show Colorado reaped $10.7 million so far this year in bonus
payments ” money that winning bidders pay to buy a lease on federal land for
oil, gas and coal development. That’s compared to $15.5 million for all of
last year. The amount the service collected for all onshore and offshore
leasing this year was $893 million.
Critics of oil and gas drilling on the Roan Plateau seized on the numbers,
saying figures about potential leasing revenue on Bureau of Land Management
land on the Roan Plateau are dramatically overstated.
In several statements, Golden-based Americans for American Energy has said
the state could earn about $1 billion from oil and gas leasing on the Roan
AAE reached its figure by multiplying a high-end acre lease payment, which
it pegged at $46,000, and then multiplying the number by the 52,600 acres
available for development in the Roan. The final figure is about $2.4
billion ” with about $1.2 billion going to Colorado and the other half to
the federal government.
“If the total bonus payments in the entire United States don’t amount to $1
billion in 2007, I really doubt the Roan is going to generate $1 billion by
itself,” said Peter Morton, senior resource economist for the Wilderness
Society. “This group has zero credibility.”
Morton said the MMS data is an example that the oil and gas industry is
exaggerating the potential leasing revenues from the Roan.
Greg Schnacke, president and CEO of Americans for American Energy, said in a
response statement that debate about drilling in the Roan Plateau is about
“money and how much consumers stand to gain from this project.”
“Folks can debate the estimates of the bonus bid revenues, which we
developed with the help of the industry, but there’s no debate about the
benefits of this project, which could provide enough clean-burning natural
gas to heat 4 million homes in Colorado for the next quarter century,”
Schnacke said in the statement.
Gov. Bill Ritter is expected to issue his comments about the future of the
Roan Plateau this week. The Interior Department gave Ritter 120 days to
review the BLM’s June management decision, which would allow drilling on
federal land on the plateau top.
Contact Phillip Yates: 384-9117, firstname.lastname@example.org
Support Local Journalism
Support Local Journalism
As a Summit Daily News reader, you make our work possible.
Now more than ever, your financial support is critical to help us keep our communities informed about the evolving coronavirus pandemic and the impact it is having on our residents and businesses. Every contribution, no matter the size, will make a difference.
Your donation will be used exclusively to support quality, local journalism.
Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.
User Legend: Moderator Trusted User