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2008-07-16_REVISION - C1980007 (2)
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2008-07-16_REVISION - C1980007 (2)
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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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113LA 2007-213 <br />afford all prospective bidders a fair and equal opportunity and <br />prevent arrangements that diminish competition. <br />B. The Offending Special Stipulations and the arrangements between <br />[UAE] and OSO contravene the MLA, as Amended by the Reform Act, <br />by stifling competition and affording undue advantage to a single <br />bidder. <br />C. The Offending Special Stipulations are unreasonable, overbroad and <br />unduly onerous; the BLM's objectives could have been accomplished <br />through less stringent stipulations that would not have impaired either <br />the ability of bidders (other than Oso) 'to compete for the subject oil <br />and gas leases or the public interest under the MLA. <br />D. The Offending Special Stipulations constitute and effect an improper <br />and illegal delegation of administrative powers and authority. <br />E. The BLM's decision must be reversed because it was premised on a <br />demonstrable error of fact; the subject parcels are being leased for the <br />capture of drillhole gas, not the capture of VAM. <br />F. The BLM's decision must be reversed because it was premised upon a <br />clear error of law; federal methane from the Aberdeen Mine must be <br />leased under the MLA, not disposed of under FLPMA. <br />SOR at 16-17. <br />BLM's Answer defends the stipulations attached to the leases and contends <br />that the lease sale was not anti-competitive, but agrees with the State Director that <br />the leases are not MLA leases at all. Citing the State Director's holding that VAM is <br />not "gas" within the definition at 43 C.F.R. § 3000,0-5, BLM acknowledges that the <br />State Director's belief that VAM was to be captured was misguided, but concludes in <br />any event that neither "VAM [n]or MVG" (mine vent gas) falls within the regulatory <br />definition of "gas." Answer at S. <br />UAE responds in support of the dedston „ t- rimaril;V to defends a,gnnsr <br />Vessels' charges that Oso and UAE engaged is some form of illegal conspiracy under <br />30 U.S.C. § 195(a) (2000). UAE asserts that `9n a world of free competition, the fact <br />that one party (Oso) is successful and another is not in acquiring a contract, alone, <br />does not create grounds for a claim of unfair competition," UAE Answer at 8. UAE <br />acknowledges debate over whether the MLA, applies to the lease at all and "does not, <br />by [its] pleading, concede that the [MLA) is applicable." id. at 4 n.1. <br />175 IBLA 19 <br />16111 'd E[EL 'ON b191 IORA Wd I(I :71 PA67 'Q7 'MnE <br />------- --- --- , i vea QC:CT Qnn7i17/Qn
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