Is oil lease a choice between schoolchildren and hunters?
SALT LAKE CITY — Gov. Gary Herbert's chief energy policy adviser said Herbert was not favoring big game hunters over dollars for schoolchildren when he insisted Tuesday that school trust land managers made a "flawed" decision on a oil lease.
"He is not asking for (the School Institutional Trust Lands Administration) to take a hit," said Cody Stewart late Tuesday. "He is not asking them to take one for the team and not get compensated."
School trust officials say they can make hundreds of millions of dollars for schoolchildren by leasing the Book Cliffs 96,000 acres for oil and gas development to Anadarko, which is its fiduciary duty. But Herbert said SITLA needs to hit the pause button.
"I am calling on the SITLA board to reconsider."
He said the agency should step back from its plan, particularly regarding the fate of 18,000 acres in the lower south section he described as land with high conservation value.
“SITLA’s decision to lease the entire Book Cliffs block could be at the expense of a more vital and potentially more valuable land management strategy," Herbert said.
The issue is this: The contract could net the fund as much as $6 million from one well, the fund's portion from $35 million in gross revenues. Multiplied by many wells, the land could be a financial bonanza to the fund that directly goes to local school districts, with local committees deciding how best to help their children at each school.
SITLA's deputy director Kim Christy, in response to Herbert's statements, said it's premature to say what board members may do, but the governor's concerns will be taken under advisement.
The erupting tension over last week's board vote on the lease comes after sportsmen blasted the schools land trust decision to enter into a contract with Anadarko for five years to conduct exploratory oil and gas development on the parcel of land in Uintah and Grand counties.
Casey Snyder, Utah coordinator for Trout Unlimited, said the SITLA vote to execute the contract betrayed months of discussions, undermining a partnership several groups thought they had with the administration.
"We went to bed on Monday night with the world one way and woke up Tuesday with the world a different way," he said.
Snyder said he was pleased with Herbert's reaction.
"This is great news," he said. "We applaud the governor. This shows the commitment of the delegation and his office to this process."
Snyder said schools land trust officials, Trout Unlimited and other groups had been working with Rep. Rob Bishop's office in Washington, D.C., to determine which blocks of land could be part of a larger land exchange. Trout Unlimited had one parcel on its list — the Book Cliffs.
Stewart also referenced the process, noting there had been hundreds of meetings to eke out deals for the so-called "Grand Bargain," pushed by Bishop.
Bishop, in a statement released Tuesday, said the SITLA action throws a new dynamic into the mix.
“The recent SITLA board decision to lease the lower Book Cliffs roadless area complicates the ongoing, collaborative planning effort," he said. "We anticipated that we would encounter some challenges along the way and that there would be complex issues through which we would have to work. The lower roadless area has tremendous values beyond traditional energy resources, and their conservation is a worthwhile endeavor."
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