Little Snake Resource Managment Plan

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Impact to State Land Board The Department asked the State Land Board Staff to undertake an analysis to evaluate the impacts of the revised DOW recommendation on potential revenues to the school trust. While the impacts are somewhat speculative because of the many variables that come into play when assessing potential lease value, the staff determined that the modified DOW proposal did not present an unacceptable adverse impact to the trust. Some leasing opportunities may be deferred or lease rates may decrease to some degree in the critical areas of Greater Sage-Grouse habitat as a result of the modified DOW recommendations but, again, those impacts are not deemed unacceptable by the State Land Board Staff. Vermillion Basin As you are aware, energy development in Northwest Colorado is proceeding at an unprecedented pace. Since the previous State Administration's May 2006 proposal regarding the Vermillion Basin, the BLM has announced plans to drill as many as 22,000 wells in the White River National Forest as part of the White River's Resource Management Plan, 12,000-15,000 wells in the Glenwood Springs and Kremmling areas, and now more than 3,000 wells in the Little Snake Management Plan. In addition, the adjacent areas in Wyoming and Utah are experiencing similar aggressive expansions of gas development. Virtually every BLM Planning Area in Northwest Colorado is under revision and almost all revisions are driven by energy development. Within this sea of development, there are special places of unique environmental,wildlife or archeological value that may require interim protection without sacrificing national energy interests. The Vermillion Basin, a 77,000-acre unleased block of land, is one such place. Currently,the Vermillion is a fragile, untrammeled, stark, intimidating landscape not found elsewhere in Colorado. It provides a beauty, solitude and recreational value for many people within and outside of Colorado. Importantly, the Vermillion represents only 2%of the "high potential" gas reserves in the Little Snake Planning Area. In light of these factors, we support a 20 year"no lease" option for the area during the life of the Little Snake RMP. We do not believe such a decision will impact gas production to any measurable degree. The state and federal government will preserve the option of revisiting any leasing decisions for natural gas development upon the expiration of the plan. We note that this approach to defer any leasing and drilling decisions for the Vermillion was supported by over 75,000 public comments. Pressure to open Colorado's special places to gas drilling has increased the value of these last untrammeled areas which have unfortunately been compromised as our nation's energy demands have outstripped our ability to produce cheap fossil fuels.