Central Montana Times

U.S. Senator Steve Daines (R-Mont.) spearheaded a group of Republican colleagues in introducing a Congressional Review Act resolution to overturn the Bureau of Land Management’s (BLM) recent Fluid Mineral Leases and Leasing Process. The new rule would significantly increase royalties, rates, minimum bids, costs, and bonding requirements for oil and gas producers on federal lands, potentially making it impossible for small energy producers to continue operations.

"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,” said Daines.

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).

Various industry representatives voiced their support for the resolution:

Patrick Montalban, Chairman of the National Stripper Well Association, said: “This is yet another very clear example of the administration using a ‘whole of government approach’ to weaponize the regulatory process in its continued effort to wipe out small oil and gas operators."

Kathleen Sgamma, President of Western Energy Alliance stated: "There are just 37 orphan wells out of more than 90,000 wells on federal lands... Small companies do not have access to bonds at the reasonable rates that large companies do... Western Energy Alliance appreciates that Senator Daines is introducing a CRA resolution to overturn a rule that seeks to perpetuate energy price inflation well into the future.”

Mallori Miller, Vice President of Government Relations at the Independent Petroleum Association of America (IPAA), applauded Senator Daines for leading the charge to repeal this hastily-written BLM Rule.

Holly Hopkins, VP of Upstream Policy at the American Petroleum Institute (API), welcomed Sen. Daines’ efforts to overturn this overly burdensome land management regulation.

Alan Olson, Executive Director of the Montana Petroleum Association, appreciated Senator Daines efforts to overturn these devastating rules promulgated by the Biden administration.

Gordon Oelkers, Vice President of the Montana Association of Oil, Gas, and Coal Counties expressed concern that the BLM has continued to push forward the increase in bond amounts despite recent rejections by Congress.