U.S. to look at climate emissions from oil and gas lease sales

BILLINGS, Mont. – The Biden administration announced Friday that industry regulators for the first time have begun analyzing greenhouse gas emissions from federal oil and gas leases on a national scale as they prepare to hold sales in numerous Western states next year amid a fierce debate over federal fossil fuel reserves.

The announcement from the Interior Department’s Bureau of Land Management came as officials released a report saying oil, gas and coal extraction from federal lands produced more than 1 billion tons of greenhouse gases last year. That’s about one-fifth of all U.S. energy-related emissions.

President Joe Biden campaigned on promises to end new drilling on public lands to help combat climate change.

But his attempt to suspend new leases while oil and gas sales underwent a sweeping review was blocked by a federal judge in Louisiana.

Including greenhouse gas emissions in lease sale reviews lets the administration highlight what scientists say are the increasing “social costs” of climate change – from rising sea levels and wildfires to public health problems.

Democrats and many environmentalists want to factor those costs upfront into lease sales.

They argue that failing to do so amounts to an industry subsidy.

Republicans counter that emissions have been declining in the U.S. and placing more obstacles to development will hurt both the industry and U.S. economy.

Environmental assessments that include a greenhouse gas analysis will be released in coming days for lease sales planned early next year in Colorado, Montana, North and South Dakota, Nevada, New Mexico, Utah, Wyoming and other states, administration officials said.Newly sworn in land bureau director Tracy Stone-Manning said the agency wants to develop public lands responsibly and make sure climate impacts are considered.

“We will continue to exercise the authority and discretion provided under law to conduct leasing in a manner that fulfills the Interior Department’s legal responsibilities,” Stone-Manning said in a statement.

The change comes amid rising energy prices that have exposed the administration to sharp attacks from Republicans.

The ranking GOP member of the U.S. Senate Energy and Natural Resources Committee, Wyoming’s John Barrasso, said in response to Stone-Manning’s announcement that the added scrutiny of leases would “hamstring American energy.”

“Tracy Stone-Manning and the Bureau of Land Management want to build new regulatory road blocks for oil and gas leasing on America’s federal lands,” Barrasso said. “This draft plan will result in less American energy production, fewer jobs for energy workers, and more frivolous lawsuits from environmental activists.”

Federal agencies previously conducted reviews of potential greenhouse gas impacts from individual lease sales following court orders.

Officials in many cases concluded the emissions were miniscule on a global scale.

But environmentalists have long maintained those reviews were too narrow, and ignored the cumulative impact of huge tracts of public lands in multiple states and offshore in the Gulf of Mexico being leased for oil, gas and coal extraction.

The bureau said its future lease sale assessments also will look at impacts to air and water quality, wildlife habitat and “quality of life for nearby communities.”

Andrew Black with the National Wildlife Federation said including the full costs of energy development was crucial to understanding its impacts.

“It’s really an important justice issue and step forward for dealing with the ethical and moral responsibilities to these communities,” said Black, who worked for Stone-Manning at the federation before she joined the administration. “You’re looking at this not just as an environmental issue, but what the climate effects are on communities that are encountering devastating droughts, fires, flooding.”