Sale of Colorado drilling rights SETS ONSHORE RECORD

[flashl]

Judith Kohler | The Associated Press

8/14/2008 -

GOLDEN, Colo. — An auction of federal oil and gas leases on Colorado's Roan Plateau generated nearly $114 million on Thursday, a record for onshore energy lease sales in the lower 48 states.

The U.S. Bureau of Land Management's auction of leases on 31 parcels covering 54,631 acres marked a major milestone in a multiyear battle over drilling on the western Colorado landmark.

It netted more than 10 times the state's previous highest-grossing federal auction — $11.8 million in February 2006.

The BLM estimates the plateau about 180 miles west of Denver contains 9 trillion cubic feet of recoverable natural gas.

[rockymountaindem]

1. We're not exactly happy about it:

From the Grand Junction Sentinel:

"GOLDEN — Both opponents and supporters of a federal drilling plan for the Roan Plateau are lamenting what they say is disappointing revenue from Thursday’s leasing of the area for oil and gas development.

The Bureau of Land Management’s lease auction of more than 55,000 acres in its Roan Plateau planning area near Rifle Thursday yielded about $114 million, or an average of $2,084 per acre.

That’s well below the $300 million high-end estimate the BLM had said the leasing of the Roan might generate, not to mention the $2 billion the industry advocacy group Americans for American Energy had said last year might be bid for the leases.

In a news release, Colorado Gov. Bill Ritter said the BLM’s actions shortchanged Coloradans. He had called for phasing leasing of the plateau top, which he says would have increased revenue and better protected the environment.

The lease revenue will be split between the federal and state governments.

“Today is a sad day for Colorado. It’s a missed opportunity — one we will never get back, one that falls squarely on the shoulders of the Bush administration, which is rushing through bad fiscal policy in its waning days,” Ritter said.

U.S. Reps. John Salazar and Mark Udall, and Sen. Ken Salazar, all Colorado Democrats, also criticized the outcome of the leasing of the Roan. But Americans for American Energy president Greg Schnacke said politicians such as Ritter and Ken Salazar depressed values of the Roan leases through their efforts to stop the leasing from going forward."

http://www.gjsentinel.com/news/content/news/stories/2008/08/14/081508_1a_roan_lease_sale.html