George Lea before House Appropriations Subcommittee
on Interior and Related Agencies for FY 2009


March 13, 2008

George Lea, President
Public Lands Foundation

Thank you Mr. Chairman for this opportunity to present your committee with our views on the Bureau of Land Management's (BLM) budget request for FY 2009.  As a national, non-profit organization principally of retired but still dedicated former BLM employees, the Public Lands Foundation (PLF) has a unique body of knowledge, expertise and experience in public land management.  We are the only national membership organization dedicated solely to the protection and professional multiple use management of BLM public lands. As retirees, believe we can now offer an objective and non-bureaucratic view of what is really happening to the public lands and suggestions for improvement.  It is important that the Committee understand that while we are supportive of BLM and its programs, we are not a "captive" of the Bureau and are independent in our views.  Our mission's primary focus is on improving the condition of the land and its natural resources and keeping the public lands in public hands. We strive to improve the effectiveness of BLM by encouraging professionalism among employees and to increase the public's understanding of and support for the proper scientific management of these lands.

Overview-While the demands upon BLM public lands continue to increase, yet the total net budget request of $977.4 million, a decrease of $5.8 million from the 2008 level.   It is significant to note that BLM will return more than $6.2 billion in receipts in 2009, yes that is not a mistake but $6.2 billion, with 44% of the receipts returned directly to States and Counties to support roads, schools and other community needs.  We are unaware of any federal agency that returns such receipts compared with its budget.  BLM emphasizes inclusion of local input in the process of conserving the environment and is a model of President Bush's idea of cooperative conservation.  In addition to 258 million surface acres BLM, also is responsible for 700 million acres of federal mineral estate throughout the nation.  That is nearly a billion acres of precious assets making BLM the largest steward of Federal lands. We support the requested budget, particularly the increases to implement the Healthy Lands Initiative. However we see certain shortfalls in emphasis and/or the need for increased dollars in FY 2009 principally to increase staffing, in the following high priority programs, to enable the Bureau to adequately address urgent natural resources issues:

Personnel Needs

BLM's budget is directed towards the work force requirements needed to put trained natural resource specialists on the ground to manage the land. BLM's programs are labor intensive and do not lend themselves to contracting.  Any man-power or budget reductions will not only directly affect BLM's ability to properly manage and protect the public lands, but also would have a negative impact on the generation of receipts to the States, Counties and the US Treasury.   Budgets often contain the false assumption that, with a smaller budget and fewer personnel the workload will decrease and less work needs to be accomplished.  That is not the case for natural resources management agencies.  It is the constant need to protect the land and the natural resources and the public's increasing service demands that drive the budget requirements. For example the 2000 Census found the West to be the fastest growing region of the Nation; nine of the 12 fastest growing states are in the West where the growth rate averages 27% per decade more than twice the national average of 13%. To demonstrate this constant need to protect the land, more than 22 million people live within 25 miles of the land the Bureau manages and the BLM lands have become the outdoor recreation playground of the West.  In 2009, over 58 million visitors are expected to participate in recreational activities on BLM lands. BLM has always been the forgotten "step-child" in the family of Federal land management agencies and has never had the personnel needed to match its responsibilities. Once again we believe the Committee needs to know the personnel needs of BLM and should encourage BLM to develop a five-year program to bring BLM's work force to a level adequate to protect the resources and perform the work needed.

Healthy Lands Initiative- (+$5,000,000) We support a $15 million total increase for the Healthy Lands Initiative. Mr. Chairman, there is a lot of good work being done on the ground under this program, much of it in partnerships with private organizations, and we support a $5 million increase over the requested budget   This new program is directed towards lessening the impact of energy development and other resource use activities such as grazing, fire and recreation on the potential conflicts with the needs of wildlife and habitat conservation in six priority geographic areas.  To a large extent the areas to receive special consideration are the sagebrush dominated landscapes associated with managing at-risk species, such as the sage grouse, to prevent listing of the grouse and to better assure recovery for other listed as threatened and endangered.

Selling public lands- The 2009 BLM budget suggests legislation is needed to stimulate the selling public lands to help reduce the Federal budget deficit in 2009.  The PLF strongly objects to a policy of accelerated selling of the public lands. The Committee is reminded that the Federal Land Policy and Management Act (FLPMA) of 1976 contain adequate authority for BLM to sell lands. Reducing the federal deficit in any meaningful degree would require a massive disposal of the public lands, which the public will not support.  PLF does not support retaining all public lands in public ownership. There are scattered, isolated parcels of BLM lands that should be in private ownership, and there are BLM lands in the vicinity of growing Western cities and towns that are needed for urban expansion.  However, the bulk of the BLM lands have become the outdoor playgrounds of the West and the public has repeatedly and strongly opposed any large-scale disposal of the BLM lands. The BLM budget before this committee again proposes that the Federal Land Transportation Facilitation Act be amended to allow BLM to sell all lands identified suitable for disposal in all updated management plans.  FLPMA already provides BLM this authority.  However, the budget proposal would direct that a portion of the proceeds from   the sale of BLM managed lands be available for the acquisition of other non-federal lands (in-holdings) in national parks, refuges and monuments.  We object to using BLM lands as a "cash cow" in this manner. The public land system that BLM administers have the same importance and integrity as the land system managed by the National Park Service, for example, and that integrity needs to be respected. All federal land management agencies, including the Forest Service, have many lands that are difficult to manage and that could be sold.  Congress should provide the authority that these agencies need to sell these lands with the proceeds going to the acquisition of in-holding lands within that agency rather than to rely on selling BLM lands.

Wild Horse and Burros (+2,000,000)- The budget proposes a very modest increase for this program in FY 2009.  The Committee is reminded that once the wild horse and burro population levels is down to Appropriate Management Levels (AML), each year approximately 20%, the annual reproductive increment, of the population must be removed to keep the population with in the AML. BLM estimates they will have approximately 31,000 animals in contract holding facilities where the animals must be held until they die of natural causes.  BLM has no alternative.  This is ridiculous!  There are more animals held in these facilities than roam the public lands.  These holding costs consume over half of the BLM's wild horse and burro program ($18,000,000) each year and it keeps climbing. In previous years Congress has provided additional funding in order to remove animals for the public lands to reach the AML and it would be most unfortunate to not to provide an increase in FY2009

Range Improvement Fund-   The FY2009 BLM budget again proposes to eliminate the Range Improvement Fund ($10 M) to further deficit-reduction efforts.  Originally this proposal was based on the assumption that   the Department would change the grazing regulations to give title to range improvements to grazing permittees thus reducing the need for the range improvement fund and give the grazing permittee an incentive to bear the costs of such improvements.  As a result of a court decision, these regulations have noww been abandoned by BLM.  It should be noted that the current grazing regulations encourages grazing permittees to contribute towards range improvement projects and further protects a permittee's financial investment in improvements by authorizing a grazing permittee to be reimbursed for their financial contribution to range improvements should they loose the use of such improvements.  It is also important that the Committee understand that the Range Improvement Fund is not used exclusively to benefit the grazing permittee.  The fund is also used on high priority watersheds to maximize the potential for overall improvement and protection of those watersheds by improving the vegetation, habitat conditions and health of rangeland ecosystems to benefit livestock, fish and wildlife habitat, riparian values, watershed protection and other resource values.  The funds are thus not tied to an individual grazing permit or a specific grazing allotment but used for a rather wide variety of projects not necessarily benefiting directly a grazing permittee.  The benefits to the Range Improvement Fund out-weigh the small contributions to deficit reduction that eliminating the fund would make.  For the above reasons, the PLF does not support the budget proposal.

Oil and Gas Management-+($2,000,000) Increased funding to supervise oil and gas operations on the ground is needed over the increases granted in FY2008. According to a December 17, 2007 report by the Subcommittee on Royalty Management to the Royalty Policy Committee, which is chartered under the Federal Advisory Committee Act, BLM role in production accountability reviews needs to be strengthened to ensure that all royalties are being reported and collected properly.

Renewable Energy- + ($2,000,000) With the increase in the cost of energy and the need for alternative energy sources the number of applications for wind and solar facilities on public lands has mushroomed.  Currently BLM has a backlog of 137 solar and 173 wind applications awaiting BLM's actions. The Bureau need funding to process these applications and we suggest that the BLM be given the authority to retain the fee receipts from renewable energy applications as is the case with some of the other energy activities, i.e. Oil and Gas and Geothermal.

Illegal Immigrants Impacting Public Lands (+$2,000,000)-Undocumented aliens continue to cross from Mexico into the United States, crossing public lands administered by BLM, and continue to damage or destroy valuable natural and cultural resources, abandon vehicles, pollute with their trash and human waste, and create serious safety risks to employees and the visiting public. Increased funding is required to mitigate these damages, repair infrastructure, improve signage, and close mine shafts.  BLM is responsible for managing 8.8 million acres of borderlands.

Fire Fighting Funds--As the Committee knows BLM has historically borrowed funds from programs that carry over funds from year to year to pay fire fighting costs. The borrowed money is repaid through supplemental appropriations. This system has generally worked well. However, should these funds not exist, this would cause serious disruption of on-going programs. It is our understanding that the Forest Service has such a problem, as may other federal land management agencies. The procedures for funding fire suppression should be changed. The cost of funding fire suppression should be taken out of the agency's budgets and made available by a separate fire suppression fund

Recreation and Visitor Services Program (+$10,000,000) Despite the fact that recreation uses of BLM lands are increasing exponentially, the FY 2009 budget for this program proposes a substantial decrease. In many respects the recreational uses on public lands is a dominant feature on the landscape and a major element in the economy of the western states.  Issues related to increased urbanization of the west and continuous advances in technology, particularly motorized recreation and increased off-highway vehicle (OHV) use, have overwhelmed the many BLM field offices especially in fast growing urban areas.  Issues such as irresponsible target shooting, rampant OHV use, vandalism, trash dumping are generating considerable resource damage and visitor safety concerns. Increase funding is required to improve on-the-ground management of OHV, mapping and signing of roads and trails, and increasing law enforcement and BLM patrol efforts.  BLM's current recreation challenge-cost share program is one of the most effective in the Department of Interior, often leveraging resources and funding at about 4 to 1, sometimes even as great 10 to 1.

Cultural Resources- (+$3,000,000) We are disappointed to see the reduction in this important program particularly when the program received a long overdue an increase for FY2008.  We have been asking for the Congress for many years to recognize the extensiveness   and value of the public lands as a national storehouse of cultural and historic treasures. With the increase in recreational uses of the BLM lands, these cultural resources require constant protection, restoration and surveillance.

Cost Recovery- The 2009 budget again proposes to repeal provisions of Section 365 of the Energy Policy Act, which prohibits BLM from implementing cost recovery fees for processing APDs.  This change would allow BLM to make permanent the recovery of the cost of processing these types of applications. We support this change.   The total cost of processing a permit averages $4,500.  The industry objects to paying a processing fee, a minor cost that surely would not severely impact the financing of exploration nor reduce the number of permit applications.  More than 10,000 APDs are anticipated in 2009.

Fixed costs-We encourage the Committee to fully fund BLM's fixed costs.

Mr. Chairman, we hope these comments for priorities for BLM's FY 2009 budget request and our ideas for changes will be of value to your committee.  We remain sincere in our efforts to see the public's land managed well. George Lea, President

Selling public lands

On May 10 the House Appropriations Committee killed the Administrations’ proposal (thanks in no small measure to PLF members who let their representative know their view of such proposals) to sell BLM lands to reduce the budget deficit. However this land sale may well resurface during this session of Congress or the next for that matter or it may take different routes. For example Congressional representatives in Idaho and Utah have introduced bills into Congress, which would sell and transfer significant amounts of federal land, mostly BLM land, to individuals or local and state governments.  A notable change in tactics has emerged in these new bills.  It is known as the “Quid Pro Quo Template” where in exchange for designating wilderness area, BLM lands are sold or transferred out of federal ownership.  The PLF supports the establishment of new formal wilderness areas but not as part of “horse trading “ with BLM lands.  Wilderness legislation should be considered, as in the past, strictly on the merits of the wilderness quality of the area and not as a “Trojan Horse” for selling public lands. Equally the disposal of public lands should be addresses for the merits involved as developed through the planning system and not as part of a quid pro quo wilderness   In addition FLPMA and BLM’s land use planning system both have set the nation’s policy for the disposal of public lands and the establishment of wilderness areas.  Those processes should be allowed to proceed from the bottom up and not circumvented top down, by Congress.   Congress’s role in all of this is to establish the policy for land disposal as has been done in FLPMA and the establishment of wilderness areas in the Wilderness Act. There have been several cases of quid pro quo wilderness (or maybe it is in reality a quid pro quo public land disposal) areas.  The most recent quid pro quo wilderness was the Lincoln County Conservation, Recreation and Development Act of 2004 in Nevada to establish 768,000 acres of wilderness north of Las Vegas while trading off water pipelines rights-of-ways across public lands, conveying over 18,000 acres of BLM lands to the County, and selling 100,000 acres of BLM lands to the highest bidder.  The “slippery slope” to disposal of public lands we have spoken of is getting wider and slipperier.  We do not support retaining all public lands in public ownership.  However, what is needed is a comprehensive analysis of a BLM land tenure plan that is thoroughly and openly debated on a national scale before proceeding further with a quid pro quo BLM land disposal program.   

Public Lands to be sold for Debt Relief

The Southern Nevada Public Land Management Act (SNPLA) has brought in so much money, almost $1.8 billion in the last couple of years, that the Administration has proposed to take 70 % of the land sales receipts and send it to the US Treasury to pay down the ballooning federal deficit.  SNPLA became law in 1998 to authorize BLM to sell land needed for town expansion around Las Vegas.  The law provides for the State of Nevada and local governments to receive 15% of the proceeds for water resource projects and parks and 85% is allocated the federal agencies for acquisition of conservation land around the state.  This new policy to sell our national assets to reduce our national debt is of course dumb and short sited.  To reduce the deficit, first expenditures should be reduced and brought under control.  And as expected other counties in Nevada and other states such as Idaho are considering similar measures. And so once again the public lands are looked upon as the “Cash Cow”, as an unlimited source of new money.  It wasn’t too many years ago that the then current Administration proposed to sell public land assets as a quick way to cover the expanding federal debt.  Those efforts, after many millions of federal dollars were spent in going through the motions to do so faded away, but not forgotten.  Lets hope this current try will also go nowhere.  There will be special situations as in the case of Las Vegas, that surrounding public lands would be better in private ownership.  The Public Lands Foundation is committed to keeping the public lands public and available for all the citizens to enjoy. 

Energy  

Within the last few years the pace of exploration for natural gas and coal bed methane has exploded. The well density planned is beyond what anyone has considered and the geographical scope may stretch along the entire Rocky Mt Front, from Montana to New Mexico. For example, the Powder River Basin is looking at more than 50,000 coal-bed methane wells being drilled just for gas in the immediate future or in Meeker, Colorado over 1900 wells are planned in 2004. The total number of wells planned in the Front Range area is unknown. We could be talking about a 40-acre gas field stretching from Wyoming south to New Mexico. Unless public opinion forces the administration to back off and let BLM start managing this development with large spacing like 640 acres or more with directional drilling from one pad, the Rocky Mountains will be one huge industrial zone similar to the congested oil fields of Texas. The sheer magnitude of the surface disruption from well pads, roads and pipelines, to say nothing of the traffic, air quality and water quality degradation, and the lost of other uses of the land, will far surpass anything we've ever dreamt of. It is mind-boggling. The new proposed energy bill calls for the oil & gas industry to be exempted from the Clean Water Act. They are already exempt from the Hazardous Materials Act. Also the only way to produce coal bed methane is to dewater the formation to release the gas. All this poor quality water must be dealt with in an environmental sound manner.

Gas companies are planning a drilling program based on 5 to 10 acre down-hole spacing. Directional drilling should be required, particularly on deep structures, but neither the land management agencies nor State regulatory agencies seem inclined to require directional drilling until the surface spacing gets down to 20 acres. At that spacing there is 660' between the well bores. Subtract another 300' of disturbed ground-150' from the well bores-for the well pads, subtract another 100' for cuts and fills and we're talking just roughly 300' of undisturbed ground between well sites. Of course this doesn't include the access roads and pipelines. Directional drilling is a perfected technology that has improved tremendously within the last 5 years. .

The biggest objection is that it’s a new way of doing things. However, some companies are used to directional drilling and do not have a problem with it. In many cases these companies use it a lot, without agency requirements, because they save money with every directional hole because of the savings from pads, roads etc they don’t have to build. This is with off the shelf technology.

BLM has got to start managing this gas exploration. They can’t just react to whatever the gas industry asks for and give it to them.

Sincerely,
George Lea President,
Public Lands Foundation 
Cc: NM State Director