IPANM (May 16, 2024) — Yesterday, the Independent Petroleum Association of New Mexico (IPANM) joined a coalition of oil & gas trade associations across the country led by Western Energy Alliance in filing a lawsuit challenging the Bureau of Land Management (BLM) Fluid Mineral Leases and Leasing Process Rule that was pushed out last month. The new rule ignores extensive technical comments provided by IPANM and other industry groups that demonstrate how small, independent producers will be severely restricted in acquiring federal leases in the future. The coalition’s lawsuit was filed in U.S. District Court in the District of Wyoming.
Regarding yesterday’s filing, IPANM Executive Director Jim Winchester offered the following statement:
“IPANM believes this legal action is necessary to preserve the foundational intent of the BLM to promote fair and equal public land use. IPANM is disappointed Secretary Haaland fails to consider the negative economic ramifications of this overreaching rule to those already in poverty in her home state.”
Additional provisions of the new rule will greatly restrict eligible federal land from leasing, which runs contrary to BLM’s stated mission to promote mixed land use, including the development of available mineral rights through federal oil & gas leasing. The impact of leasing restrictions will diminish revenues through lost royalty payments and substantially reduce bonus payments to New Mexico that provide critical funds for education, public safety, and assistance to impoverished communities. The lawsuit asks the court to invalidate and vacate the new BLM leasing rule on the grounds that it runs contrary to existing law.
Additional trade associations joining the lawsuit include the New Mexico Oil & Gas Association (NMOGA), North Dakota Petroleum Council, Petroleum Association of Wyoming, and Utah Petroleum Association. The associations are represented by Alexander K. Obrecht, Mark S. Barron, and L. Poe Leggette of Baker & Hostetler LLP.
