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2008-07-16_REVISION - C1980007 (2)
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2008-07-16_REVISION - C1980007 (2)
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Entry Properties
Last modified
8/24/2016 3:34:43 PM
Creation date
7/18/2008 1:36:22 PM
Metadata
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Template:
DRMS Permit Index
Permit No
C1980007
IBM Index Class Name
REVISION
Doc Date
7/16/2008
Doc Name
IBLA Decision Regarding Methane and MLA Leasing
From
Office of Hearing and Appeals
Type & Sequence
TR111
Email Name
TAK
Media Type
D
Archive
No
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IBLA 2007-213 <br />Addressing Vessels' arguments that the special stipuladons violate the 1V" <br />the State Director denied that the MLA applies at all. He stated that <br />because VAM is artificially created in the mine and discharged through <br />a mechanical ventilation system at the earth's sui face, it does not meet <br />the definition of gas found in 43 C.F.R. § 3000.0-5(a): <br />Gas means any fluid, either combustible or noncombustible, <br />which is produced in a natural state from the earth <br />and which maintains a gaseous or rarefied state at ordinary <br />temperatures and pressure conditions. <br />Thus, pollutant VAM is not subject to leasing or regulation under the <br />[MLA.). VAM, if it is a resource with commercial value, is more <br />appropriately subject to the authority of [BLPMA) section 102(a) (8) <br />and (9), and Section 302(b). Consequently, BLM has chosen to modify <br />the standard form 3200-24, Offer to Lease and Lease for Geothermal <br />Resources, removing as much as practical any references to the rights <br />commonly associated with an oil and gas lease. <br />Decision at 3 (italicized emphasis ours, bold emphasis in original).9 <br />Vessels appealed. By orders dated July 18, and July 26, 2007, this Board <br />granted motions to intervene submitted by UAE and Oso, respectively. <br />In an extensively detailed set of legal arguments, Vessels repeats and enhances <br />its prior arguments that what it calls the "Offeading Special Stipulations" 3, 4, and .5 <br />are illegal under the MLA, that the allegedly competitive lease sale was and- <br />competitive because it favored only Oso, that BLM and Oso conspired to ensure that <br />only Oso could reasonably bid on the leases, and that UAE and Oso committed <br />violations of 30 U.S.C. § 195 (a) (2000), by engaging in a scheme to violate the <br />MLA.t° In Vessels' terms, the several issues are as follows: <br />A. Oil and gas lease sales under the MLA, as amended by the <br />Federal Onshore Oil and Gas Leasing Reform Act of 1987, must <br />9 The State Director also addressed Vessels' arguments regarding unitization and <br />bonding. As Vessels does not pursue these arguments in this appeal, we do not <br />address them. <br />" MLA section 411 30 U:S.C. § 195(a)(1) (2000), makes it unlawful to "organize or <br />participate in any scheme, a n-angenient, plan, or agreement to circumvent or defeat <br />the provisions of this chapter or its Implementing regulations." <br />175 IBLA 18 <br />1 Z/l i 'l CC cct ION viol ] Pn Wd11) ; It 3C?Q7. '47. Nnr <br />vea ur:cr unnzir.z/no
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