BLM Announces New Oil Shale Research, Development
and Demonstration Effort on Public Lands

In a move that will advance America’s efforts to boost domestic oil production and in response to growing interest from high-technology groups, the Bureau of Land Management today announced terms and conditions for oil shale research, development and demonstration on public lands.  The BLM is publishing a new, final oil shale lease form in a notice in today’s Federal Register.

The BLM’s aim is to promote commercially viable and environmentally sound oil shale technology in the United States, which holds more than 50 percent of the world’s oil shale resources, or the equivalent of 2.6 trillion barrels of oil.  This is 20 times more than total U.S. oil resources of 116.5 billion barrels.  The BLM’s action today supports President Bush’s National Energy Policy, which seeks a diverse supply of affordable energy for American families and businesses.

“Our data show that oil shale is an energy resource with staggering potential,” said Tom Lonnie, the BLM’s Assistant Director for Minerals, Realty and Resource Protection.  “Developing oil shale can help us increase domestic oil production while reducing our dependence on foreign energy supplies.”

Lonnie noted that in the West, where most BLM-managed land is located, the oil shale in Colorado, Utah, and Wyoming underlies 16,000 square miles, with 72 percent of that shale on Federal land.  “U.S. companies are developing promising technologies to release oil from shale rock,” Lonnie said.  “They are requesting the opportunity to access public lands to test these new technologies, and the BLM is taking action to facilitate this access.”

In today’s Federal Register notice, the Bureau calls on interested parties to nominate public lands for oil shale research, development, and demonstration activities; the nominations must be received within 90 days of today’s notice.

The final lease form sets the terms and conditions for oil shale research, development and demonstration (RD&D) operations.  The RD&D lease may contain a preference right for conversion to a commercial lease upon demonstration of a successful method for producing oil from shale rock. 

The BLM manages more land – 261 million surface acres – than any other Federal agency. Most of this public land is located in 12 Western States, including Alaska. The Bureau, with a budget of about $1.8 billion, also administers 700 million acres of sub-surface mineral estate throughout the nation. The BLM’s multiple-use mission is to sustain the health and productivity of the public lands for the use and enjoyment of present and future generations. The Bureau accomplishes this by managing such activities as outdoor recreation, livestock grazing, mineral development, and energy production, and by conserving natural, historical, and cultural resources on the public lands.

 – BLM –