Central Montana Times

U.S. Senator Steve Daines (R-Mont.) has spearheaded an effort among Republican colleagues to introduce a Congressional Review Act resolution. The resolution aims to overturn the Bureau of Land Management’s (BLM) recent Fluid Mineral Leases and Leasing Process rule, which is said to impose significant financial burdens on small oil and gas producers operating on federal lands.

Daines criticized President Joe Biden's energy policies, stating, “Joe Biden set out on an anti-American energy war path on Day One, and ever since Montana’s small oil and gas producers have been a target. This new BLM rule will drive producers out of business, raise costs for Montana families and force the U.S. to run to our adversaries to meet our energy needs. It must be reversed.”

Joining Daines in introducing this resolution were Senators Jim Risch (R-Idaho), Cynthia Lummis (R-Wyo.), John Hoeven (R-N.D.), Pete Ricketts (Neb.), Mike Lee (Utah), John Barrasso (R-Wyo.), Mike Crapo (R-Idaho), Cindy Hyde-Smith (R-Miss.), Dan Sullivan (R-Ala.), and Ted Cruz (Texas).

Several industry figures voiced their support for the initiative. Patrick Montalban, Chairman of the National Stripper Well Association, argued that the administration was using regulatory processes as weapons against small oil and gas operators. He warned that such actions could lead to higher energy prices, potential supply shortages, increased reliance on foreign energy sources, job losses in small towns, and unclear environmental benefits.

Kathleen Sgamma, President of Western Energy Alliance, pointed out that there are only 37 orphan wells out of more than 90,000 wells on federal lands. She argued that this figure does not justify the BLM's proposed 20-fold increase in bonding amounts.

Mallori Miller from the Independent Petroleum Association of America (IPAA) and Holly Hopkins from the American Petroleum Institute (API) also applauded Senator Daines' efforts to overturn what they see as an overly burdensome regulation.

Alan Olson, Executive Director of the Montana Petroleum Association, expressed concern about the potential financial jeopardy for small Montana oil and gas producers. Gordon Oelkers, Vice President of the Montana Association of Oil, Gas, and Coal Counties, echoed this sentiment and stressed the importance of oil and gas development for energy security and local government funding.