The Independent Petroleum Association of New Mexico (IPANM) has joined a coalition of oil and gas trade associations in filing a lawsuit against the Bureau of Land Management (BLM). The coalition, led by Western Energy Alliance, is challenging the new BLM Fluid Mineral Leases and Leasing Process Rule that was introduced last month. The lawsuit was filed in U.S. District Court in the District of Wyoming.
According to IPANM, the new rule disregards extensive technical comments provided by industry groups, which argue that small, independent producers will face significant restrictions in acquiring federal leases under the new guidelines.
In a statement regarding the legal action, IPANM Executive Director Jim Winchester said: “IPANM believes this legal action is necessary to preserve the foundational intent of the BLM to promote fair and equal public land use. IPANM is disappointed Secretary Haaland fails to consider the negative economic ramifications of this overreaching rule to those already in poverty in her home state.”
The new rule includes provisions that would greatly restrict eligible federal land from leasing, contradicting BLM’s mission to promote mixed land use. According to IPANM, these leasing restrictions could reduce revenues through lost royalty payments and significantly decrease bonus payments to New Mexico. These funds are critical for education, public safety, and support for impoverished communities.
The lawsuit requests that the court invalidate and vacate the new BLM leasing rule on grounds that it conflicts with existing law.
Other trade associations joining the lawsuit include the New Mexico Oil & Gas Association (NMOGA), North Dakota Petroleum Council, Petroleum Association of Wyoming, and Utah Petroleum Association. Legal representation for these associations is being provided by Alexander K. Obrecht, Mark S. Barron, and L. Poe Leggette from Baker & Hostetler LLP.
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