Lands

The Obama administration’s proposed fee hikes and new fees for onshore and offshore production on federal lands in the fiscal year (FY) 2011 budget would add to the jobless rate and drain revenues from the federal coffers, both of which would aggravate the economic climate, said Sen. Robert Bennett (R-UT) Tuesday.

Pennsylvania Gov. Ed Rendell said his decision to push for a tax on natural gas extraction in the Marcellus Shale followed the results of the state’s recent public lands lease sale, which brought in twice the revenue that state officials had expected.

Pennsylvania Gov. Ed Rendell said his decision to once again push for a tax on natural gas extraction in the Marcellus Shale followed the results of the state’s public lands lease sale, which last week brought in twice the revenue that state officials had expected.

While Obama administration policies may tend to discourage the development of natural gas on public lands, environmental czar Carol Browner last Monday said natural gas is critical to the nation’s energy future.

More of Pennsylvania’s public lands may be auctioned for natural gas leasing next year after an offering Tuesday on 32,000 acres generated $128.5 million — twice the revenue budgeted.

While Obama administration policies may tend to discourage the development of natural gas on public lands, environmental czar Carol Browner Monday said natural gas is critical to the nation’s energy future.

More than 21,000 acres of federal lands in New Mexico, Oklahoma, Texas and Kansas will be offered for oil and natural gas leasing by the Bureau of Land Management (BLM) Wednesday, but leasing of acreage near proposed wilderness and national conservation areas has been deferred or removed until the agency receives guidance from Washington, DC.

Development of the emerging Eagle Ford Shale play in South Texas got a boost from Enterprise Products Partners LP, which agreed to provide natural gas transportation and processing services to an undisclosed producer. The agreement, with “one of the largest and most active producers in this emerging play,” covers more than 150,000 acres, said Enterprise CEO Michael Creel. The shale formation, which is known as the “Eagle Ford” and the “Eagleford” play, is beneath or near some of Enterprise’s Texas energy assets. Because of the proximity of Enterprise infrastructure in the South Texas play, only “modest” capital expenditures will be needed for the partnership to begin providing the transportation and processing services required under the agreement, said Creel. No additional financial details were provided.

Despite wildlife concerns voiced by the Wyoming Game and Fish Department, the state’s Office of State Lands and Investments has recommended approval of a special lease to Cimarex Energy Co. to build a natural gas processing and carbon sequestration plant.