Oil groups say Biden halting permits unevenly

President Joe Biden's administration is unevenly enforcing its decision to pause most oil and gas permitting on federal land, according to industry officials who say it is disrupting their operations.

The allegedly uneven treatment of "sundries," which authorize minor changes to existing permits, has been a source of further uncertainty for operators on federal land, industry officials say. Operators seek sundry notices to make minor permit changes, such as changing the path of a well that has already been approved.

"Not allowing these [sundries] to go through during the moratorium really does hinder oil and gas companies' ability to do business and can risk already-invested capital," Petroleum Association of Wyoming communications director Ryan McConnaughey said. "Sundries are a common thing and fairly routine."

The source of confusion stems from a 20 January order from the US acting interior secretary that subjected new drilling permits to a high-level review at the US Interior Department for at least 60 days. That halted the regular process where the Bureau of Land Management's (BLM) local field offices handle day-to-day review of drilling permits.

But the permitting order also carved out exceptions for "existing operations," which Biden political appointees said should not be disrupted by the order. BLM field offices as a result have in some cases approved minor changes to permits, while other field offices will not, according to industry officials.

"There has indeed been inconsistency among field offices, which is hardly surprising with a rushed order that did not consider implementation issues," Western Energy Alliance president Kathleen Sgamma said. "Sundries are necessary as conditions change in the field for ongoing development, which was not supposed to have been affected by the acting secretary's order."

The permitting issue has drawn attention on Capitol Hill, and could be brought up as the US Senate considers confirming US representative Deb Haaland (D-New Mexico) to become the next head of the Interior Department.

"At least one oil and gas producer has reported to me that BLM is permitting activities in New Mexico that it is not permitting in Wyoming," US Senate Energy and Commerce Committee ranking member John Barrasso (R-Wyoming) wrote last week in a letter to the acting US interior secretary.

The Interior Department and BLM did not respond to specific questions about permitting at field offices. The Interior Department said its "targeted pause does not impact existing operations or permits for valid, existing leases, which are continuing to be reviewed and approved."

Oil and gas industry officials say one of the largest concerns is the uncertainty over whether the administration will extend the permitting pause after its planned expiry on 21 March. BLM since Biden took office has only approved three new drilling permits, according to a federal database, compared to 490 drilling permits over the same time last year. That may not be an immediate issue for large operators with a backlog of permits, industry officials say, but it is a problem for small companies.

"Some of our smaller and midsize operators do not have that luxury," McConnaughey said.

By Chris Knight