New Mexico oil, gas group raps Biden move to halt leasing around national park

The New Mexico Oil and Gas Association has called on the Biden Administration to work with all potential stakeholders following its Nov. 15 proposal for 20-year drilling ban around a national historic monument in the state, calling the decision "arbitrary."

New oil and gas leasing within 10 miles of Chaco Culture National Historical Park will be prohibited as officials consider withdrawing federal land from development for 20 years. The effects of the prohibition are uncertain because the area is a patchwork of state, private, federal and tribal holdings.

"Arbitrary limits on development in the region will only disrupt the largest and most successful part of New Mexico's economy and will rob local communities of jobs and economic growth opportunities," the New Mexico group said in a statement. "While the administration has missed an early opportunity to engage with all stakeholders to ensure the longevity of Chaco Canyon, we hope future discussions can yield policies that are firmly rooted in science."

Located in northwestern New Mexico, the Chaco Canyon area is positioned in the San Juan Basin. Although the New Mexico portion of the basin currently produces 1.22 Bcf/d, its volumes have declined steadily for more than a decade, according to data by S&P Global Platts Analytics. Under current drilling and completion activity, is projected to fall slowly to 1 Bcf/d by 2026. Approximately 90% of Bureau of Land Management-managed energy and mineral resources in the area are leased, in addition to more than 40% of those managed by the Bureau of Indian Affairs. The proposed withdrawal would not affect existing rights of lease holders, according to the BLM.

Interior Secretary Deb Haaland has formally proposed the withdrawal of approximately 325,000 acres of federal minerals under nearly 950,000 surface acres from eligibility for leasing and mining under applicable federal laws. The proposed withdrawal will be published in the Federal Register in the next few weeks, initiating a 60-day comment period.

"Chaco Canyon is a sacred place that holds deep meaning for the Indigenous peoples whose ancestors lived, worked, and thrived in that high desert community," Haaland said. "Now is the time to consider more enduring protections for the living landscape that is Chaco, so that we can pass on this rich cultural legacy to future generations. I value and appreciate the many Tribal leaders, elected officials and stakeholders who have persisted in their work to conserve this special area."

The vast bulk of all drilling activity in New Mexico has shifted to the Permian Basin, in the state's southeast corner. The activity has propelled New Mexico to the second-most prolific oil-producing state, trailing only neighboring Texas.