The Bureau of Land Management in Colorado (BLM) has said it will issue oil and gas leases in the natural gas-prone watersheds of the town of Palisade and the city of Grand Junction in the southern Piceance Basin, but it will suspend those leases for up to one year, directing that oil and gas development be delayed to allow the lessee to work with the two jurisdictions to prepare a “community-based development plan” to address additional community concerns.

Other aspects of the decision issued Aug. 3 include the addition of a “no surface occupancy” stipulation proposed by the lessee encompassing approximately 960 acres in the Palisade watershed, which provides additional assurance of protection of specific town water facilities. BLM will also require the lessee to submit site specific Plans of Development (POD) for any projected development activities prior to authorizing any surface disturbing activities. Any PODs will undergo National Environmental Policy Act review with additional public involvement.

“We have taken the time to ensure a thorough review of all aspects of this sensitive issue. We believe we have followed all applicable law, regulation, and policy, ensured protection of the water resource, provided the opportunity for a community plan to be developed, and required a POD prior to any surface disturbing activity taking place,” said Sally Wisely, BLM Colorado state director. “We are committed to make sure this is done right.”

Oil and gas leasing in the Palisade and Grand Junction watersheds was initially proposed for the May 2005 oil and gas lease sale. The proposed leasing was deferred from that sale to allow coordination with local officials and to ensure appropriate stipulations were in place. Prior to the sale, BLM expanded the lease stipulations, including a watershed protection stipulation, in response to requests by the two jurisdictions.

The February lease sale included approximately 765 acres within the Grand Junction’s watershed and 11,280 acres within Palisade’s watershed. On its own initiative, BLM said, the lessee has committed to working with the local communities and other parties to prepare a community development plan. A similar plan has already been developed between the towns of Rifle, Silt and New Castle with energy company Antero Resources. The concept of a community development plan has been endorsed by various officials and members of the public.

Oil and gas leasing has occurred within the Palisade Watershed for decades, and there are two plugged and abandoned wells in the watershed. Through the years, there have been well over 50 leases issued. Most of the leases expired having never been drilled on and have again become available for leasing. In the Grand Junction watershed, leasing has also occurred over the years — most recently in 1999 and again in 2000. Twelve wells lie within the city watershed.

Under direction from the Leasing Reform Act of 1987, BLM follows its Resource Management Plans (RMPs) when making oil and gas leasing decisions. The Grand Junction RMP, which included a complete environmental impact analysis and extensive public comment, made these areas available for leasing.

However, BLM received 38 protests for 106 parcels covering 110,821 acres prior to the February lease sale. Successful bidders on these protested parcels were notified that no lease would be issued until resolution of the protests.

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