3 counties sue over canceled oil and gas leases

Three oil- and coal-rich counties in Utah have filed a lawsuit against Interior Secretary Ken Salazar over his decision to cancel 77 oil and gas leases sold by the Bureau of Land Management last December.

Carbon, Uintah and Duchesne counties argue in federal court that Salazar exceeded his authority under two federal statutes — the Mineral Leasing Act and the Administrative Procedure Act — by withdrawing successful lease bids after all of the necessary payments had been made.

The counties allege in a lawsuit filed Wednesday that although Salazar justified his decision on environmental concerns, that explanation conflicts with the federal government's own management plans and environmental studies, which designate the public lands in question as suitable for oil and gas leasing.

"Our actions today are intended to protect our local economy," said Uintah County Commissioner Mike McKee. "We rely heavily on revenue attributable to oil and gas production."

Attorney Michael Lee, who is representing the three counties, said it is simply a matter of Salazar following the law.

"The federal government operates under the law, and those laws grant certain authority, but those same laws limit that authority. We believe that authority has been exceeded in this case; that is what the courts are for."

Lee contends the BLM's Resource Management Plans outlined which parcels were "adequate and appropriate" for gas and oil development, a process which hinged on a seven year exhaustive review that was essentially turned on its head.

"They make it clear unequivocally. That is what they concluded. He (Salazar) didn't like it, changed it and that's not fair, it's not legal."

Salazar rescinded the bids on 77 parcels of BLM land sold at an auction last December, asserting that they were offered up during the Bush administration as the result of a "midnight" decision and lacked adequate environmental review. In defending his decision, Salazar said too many of the parcels where located on the doorsteps of "iconic" national treasures such as Arches National Park and Dinosaur National Monument. Whether any of those parcels will be put out for consideration again is a decision Salazar said is under scrutiny by his office.

Lee said the action to pull the bids on parcels that went through a thorough vetting process financially harms the counties he represents — not only now but for years to come.

"These counties really depend heavily on revenue from oil and gas production within their counties because so much of their land is owned by the federal government," Lee said, stressing too that the industry not only provides money for vital government services but brings in side businesses that help the overall tax base.

If that industry was vanquished from those counties, "it would be financially devastating."

Lee's complaint alleges Salazar's decision to retroactively pull the bids was based on "inaccurate" and "unsubstantiated" information. It seeks an injunction to that action in federal court.

E-MAIL: amyjoi@desnews.com