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S.J.R. 10

             1     

RESOLUTION TO CONGRESS REGARDING

             2     
OIL AND GAS DRILLING AND

             3     
EXPLORATION

             4     
2005 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Sponsor: Howard A. Stephenson

             7      Beverly Ann EvansThomas V. Hatch              8     
             9      LONG TITLE
             10      General Description:
             11          This joint resolution urges Congress to address problems in the oil and gas drilling and
             12      exploration permit process.
             13      Highlighted Provisions:
             14          This resolution:
             15          .    urges the United States Congress and Utah's congressional delegation to take
             16      legislative measures to address the more than 400 oil and gas leases that have been
             17      awarded in Utah by the Bureau of Land Management but not issued due to
             18      continuing litigation.
             19      Special Clauses:
             20          None
             21     
             22      Be it resolved by the Legislature of the state of Utah:
             23          WHEREAS, significant reserves of oil have been discovered in Utah;
             24          WHEREAS, many investors are working through the steps to obtain oil and gas leases
             25      from the Utah state office of the Bureau of Land Management;
             26          WHEREAS, for all federal oil and gas leases sold in the state, 50 percent of the
             27      proceeds go to the state of Utah;

             28          WHEREAS, federal oil and gas lease sales for November 2003, totaled $982,387; for
             29      February 2004, $6,325,314; for June 2004, $9,951,502; for September 2004, $28,030,004; and
             30      for December 2004, $521,916;
             31          WHEREAS, although the September 2004 oil and gas lease sales were the largest in
             32      Utah in terms of acreage, roughly 190,000 acres were deferred or deleted from the sale when
             33      the Bureau of Land Management received new information on wilderness characteristics of the
             34      land;
             35          WHEREAS, every parcel available as part of an oil or gas lease is scrutinized prior to
             36      the sale to determine if it can be offered in compliance with, among others, the National
             37      Environmental Policy Act, the Endangered Species Act, and the National Historic Preservation
             38      Act;
             39          WHEREAS, to protect other resources, numerous stipulations and stringent
             40      requirements are placed on the oil and gas leases that are issued;
             41          WHEREAS, currently over 400 oil and gas leases have been awarded but not yet issued
             42      because of litigation instigated by environmental groups;
             43          WHEREAS, groups suing to halt the issuance of the awarded oil and gas leases are not
             44      parties to the sales of the oil and gas leases;
             45          WHEREAS, much of the Bureau of Land Management's time is taken up with
             46      addressing protests of the sales of oil and gas leases;
             47          WHEREAS, millions of dollars that could be invested in the state are being held
             48      pending the outcome of these lawsuits;
             49          WHEREAS, individuals and companies who have purchased oil and gas leases in Utah
             50      or are contemplating a purchase are greatly concerned with how long their funds have remained
             51      tied up in a system that is not performing its intended purpose;
             52          WHEREAS, protests should be addressed up to the time that the oil and gas leases are
             53      awarded, then should be restricted unless an error was made in the plain language of the lease;
             54      and
             55          WHEREAS, unless concerns with the oil and gas lease process are resolved, many
             56      potential investors in Utah oil and gas leases will choose to do business in other states, costing
             57      the state much needed revenues:
             58          NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah

             59      urges the United States Congress and the members of Utah's congressional delegation to take
             60      legislative steps necessary to address Utah's oil and gas drilling and exploration lease issuance
             61      problems.
             62          BE IT FURTHER RESOLVED that the Legislature of the state of Utah urges that
             63      Congress and Utah's delegation act decisively to end the legal delays caused by individuals and
             64      groups who are not a party to the sale of an oil and gas lease.
             65          BE IT FURTHER RESOLVED that a copy of this resolution be sent to the Majority
             66      Leader of the United States Senate, the Speaker of the United States House of Representatives,
             67      the Utah office of the Bureau of Land Management, and to the members of Utah's
             68      congressional delegation.




Legislative Review Note
    as of 1-10-05 10:08 AM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel

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