Feds look to uphold oil and gas leases in Carlsbad that lawsuit wants overturned

Federal land managers sought to uphold public land leases sold to oil and gas companies for drilling in the Carlsbad area amid a lawsuit filed by a local environmental group who wants the sale overturned.

The Bureau of Land Management sold several leases of public land around Carlsbad to oil and gas companies in 2021, providing the acreage for fossil fuel development within the booming Permian Basin.

In January 2023, Carlsbad-based Citizens Caring for the Future, along with Santa Fe-based WildEarth Guardians and the Western Environmental Law Center sued the BLM and parent agency the Department of Interior, arguing the federal government conducted inadequate environmental analysis in approving the lands for lease to the industry.

On April 22, the BLM published the results of a subsequent environmental analysis of the leases in question using updated guidelines and regulations instituted by the DOI in the interim and finding the leases still held up against federal requirements. In its most recent analysis, the BLM reported it found “no significant impact” to oil and gas operations on the contested lands. The agency proposed the leases be maintained.

The BLM opened a public comment period on its latest report until May 21. Comments can be submitted on the agency’s website.

Kayley Shoup with Citizens Caring for the Future said the group was "disappointed" in the BLM's proposal, arguing growing oil and gas operations in southeast New Mexico were damaging to the environment.

"Sadly, the updated analysis fails to take into account the realities we face here in the Permian, such as a lack of strict adherence to state and federal air quality standards and a need to conserve water as our region faces aridification," Shoup said. "Every action, no matter how big or small, matters as human beings work to address climate change."

More: Environmentalists sue New Mexico over impacts from the oil and gas industry

What lands are being contested?

About 5,942 acres on 32 parcels surrounding Carlsbad in southeast New Mexico were offered in the least in January 2021. If operated, the BLM estimated these lands would produce about 5.4 million barrels oil, 31.3 billion cubic feet of natural gas and 18.6 million barrels of produced water. A barrel is about 42 gallons. The operations would disturb about 144 acres of surface, read the BLM’s report.

Shoup said the nomination of the lands was part of a pattern by the administration of President Joe Biden ignoring the impacts of pollution and continuing to support fossil fuels in the Permian Basin and nationwide.

"The decision to move forward with nominating every single lease that was challenged reflects the BLM and the Biden Administration's grave misunderstanding of that simple truth," Shoup said. "Sadly the federal government's  sacrifice of Southeast New Mexico will not only impact those of us here but in the world over."

Why does the BLM believe drilling won't impact air quality?

The report supplemented the BLM’s previous analysis as to air quality, greenhouse gas emissions.

The BLM argued leasing the lands did not guarantee that any wells or oil and gas operations would occur, and that it anticipated no “substantial air resource impacts” from the leasing decision. Drilling would only occur after an application to permit drilling (APD) filed by an operator was approved by the BLM, which would undergo additional air pollution analysis, read the report.

“The Proposed Action does not authorize or guarantee the number of wells analyzed herein,” read the BLM’s environmental analysis.

The report did include development assumptions, the BLM contended, and the agency said emissions could occur during while wells were drilled but would be “short-term” while other continual emission would come from infrastructure like storage tanks or flares during operations. These emissions would not significantly contribute to air pollution in the Permian Basin, the report read, as the 32 wells represent about 0.16 percent of wells in the area in the foreseeable future.

Emissions would also decline as construction was completed, and ongoing well operations would be subject to federal rules ensuring they comply with air quality standards at both the state and federal levels, the report read.

More: 'Forever chemicals' found in Pecos River - What does that mean for your health?

Will the leases affect cultural resources?

About 64 percent of the nominated acreage was known to contain potential cultural resources, and eight archeological sites were documented within the 32 parcels, the report read. Three of those were determined eligible for the National Register of Historic Places, but no known cultural properties were found within the lands. The BLM said no historic properties would be impacted the leasing decision.

Does oil and gas threaten endangered species?

Two federally listed bird species the least tern and western willow flycatcher were known to occur in the are along with a fish species the Pecos gambusia, read the report. Two federal threatened species the piping plover and Pecos bluntnose shiner and a species being considered for federal protection the Wright’s marsh thistle were also known to dwell amid the lands proposed for oil and gas.

Since the initial leases in 2021, the lesser prairie chicken known to live in the region was listed as endangered, but the BLM found none of the parcels leased were in its occupied range.

The BLM said its biologists found the leases would comply with all federal wildlife regulations.

Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on the social media platform X.

This article originally appeared on Carlsbad Current-Argus: BLM wants to uphold Carlsbad oil and gas leases amid local lawsuit