United States Department of the Interior BUREAU OF LAND MANAGEMENT Utah State Office 440 West 200 South, Suite 500 salt Lake city, uT 84101-1345 http://www.blm.gov/ut/st/en.html ocT I 8 20t6 N REPLY REFER TO: 3120 (u't-922) CERTIFIED MAIL - Retum Receipt Requested 91 7199 9991 7033 9329 2037 DECISION Terry Tempest Williams Brooke S. Williams dba Tempest Exploration P.O. Box 40 Moose, WY 83012-0040 Oil and Gas Lease Parcel UTU91481 Oil and Gas Lease Parcel UTU91574 Oil and Gas Noncompetitive Lease Offers Reiected Dear Ms. Williams: On February 16,2016, you submitted a noncompetitive lease offer for oil and gas parcel UTU91481 and, on February 18,2016, you submitted a noncompetitive lease offer for oil and gas parcel UTU9157 4. Each offer was made by your signing, dating, and submiuing Form 3 10011 ("Offer to Lease and Lease for Oil and Gas") to the Bureau of Land Management's Utah State Office (BLM), which contains required terms and conditions for an issued oil and gas lease, and may be supplemented by special stipulations attached to t}le lease parcel. Paragraph 1 ofeach Form indicates that the offer is being made by you and Brooke S. Williams doing business as Tempest Exploration. Paragraph 4, directly above the signature line on page 2 ofForm 3100-1, includes among other things, the express commitment of the person making the noncompetitive lease offer to accept and adhere to the requirements of the lease. In pa(icular, Paragraph 4(b) provides in part that the "undersigned agees that signature to this offer constitutes acceptance ofthis lease, including all terms conditions, and stipulations of which offeror has been given notice." A fundamental requirement ofevery oil and gas lease, as stated in Section 4 on page 3 ofForm 3100-1, is the requirement that the "Lessee must exercise reasonable diligence in developing and producing, and must prevent unnecessary damage to, loss of, or waste of leased resources." This diligent development requirement has its basis in the Mineral Leasing Act of 1920, as amended. See 30 U.S.C. $ 187. Thus, an expressed intent by a person offering to purchase a lease to not develop and produce the oil and gas resources on the leasehold would directly conflict with the diligent development requirement and tequire that the offer be rejected. Following your submission of the noncompetitive lease offers for Parcels UTU91481 and UTU9I574, media reports have attributed certain statements to you, and you have made a number of representations in the media and in correspondence to BLM regarding your intentions in the event leases for the parcels are issued to you and/or Tempest Exploration, including the following: In your essay entitled "Keeping My Fossil Fuel in the Ground" that appeared in the Opinion Pages of the New York Times on March 29, 2016, you stated: "We will pay the annual rent for the duration of the l0-year lease and keep whatever oil and gas lies beneath these lands in the ground." In light ofthis statement, Jenna Whitlock, Acting State Director, wrote to you on April 15,2016 restating the diligent development terms and conditions ofan oil and gas lease, and asking that you clarify your intentions. In a letter to Ms. Whitlock dated June 17,2016, you stated that you "choose to hold onto our leases until new technologies can be developed that will allow the oil and gas resources to be developed and bumed without producing climate-warming gases..." In a Living on Earth radio interview with Steve Curwood recorded on July 11, 2016, you stated: "The oil and gas companies that also bought leases, they were given their leases immediately, and, tnrth be told, they have no intention of drilling on those lands either, maybe for different reasons. "' . In your August 16,2016 lerer to this offrce, you and your husband stated: "We believe that requiring us to drill on our leases is a condition that is unique to us that does not apply to the others who purchased leases that day with no intention of drilling." Viewed objectively and in their totality, your express statements to date show intent to not diligently explore for and produce the oil and gas resources underlying the two lease parcels for which you have submitted noncompetitive lease offers. Therefore, since you have stated publicly that you intend to keep the oil and gas resources in the ground and, therefore, not comply with the diligent development requirement plainly set forth in your noncompetitive lease offers (in Section 4 on page 3 ofForm 3100-l), the lease offers are hereby rejected. A refund of the first year's advance rental in the amount of S1,200.00 for lease offer UTU9l48l and $480.00 for lease offer UTU91574, for a total amount of$1.680.00, will be authorized at the end of the appeal period unless this decision is appealed. If this decision is appealed, these advance rental payments will be held until the Interior Board ofLand Appeals issues its decision on the appeal, and if it affirms this decision, the BLM will process a refirnd of the payments. This decision may be appealed to the Interior Board ofLand Appeals (IBLA), Office ofthe Secretary, in accordance with the regulations contained in 43 C.F.R. Part 4 and instructions contained in Form 1842-1 (enclosure). If an appeal is taken, the notice of appeal must be filed in this office (at the address shown on the enclosed Form) within 30 days from receipt ofthis decision. The appellant has the burden of showing that the decision appealed from is in error. If you wish to file a petition for a stay of this decision pursuant to 43 C.F.R. $ 4.21, the petition must accompany your notice ofappeal and show sufficient justification based on the standards listed below. Ifyou request a stay, you have the burden ofproofto demonstrate that a stay should be granted. Standards for Obtainine a Stay A petition for stay is required to show sufficient justification based on the standards listed in 43 C.F.R. $ 4.21(b) (1) which include: (l) The relative harm to the parties ifthe stay is granted or denied; (2) The likelihood ofthe appellant's success on the merits; (3) The likelihood of ineparable harm to the appellant or resource ifthe stay is not ganted; and (4) Whether the public interest favors granting the stay. Ifa petition for stay is submiued with the notice of appeal, a copy ofthe notice of appeal and petition for stay must be served on each party named in the decision from which the appeal is taken, and with the IBLA at the same time it is filed with the Authorized Officer. A copy ofthe notice ofappeal, and statement of reasons and all pertinent documents must be served on each adverse party named in the decision from which the appeal is taken and on the Office ofthe Regional Solicitor, U.S. Department ofthe Interior, 6201 Federal Building 125 South State Street, Salt Lake City, Utah 84138-l 180, no later than l5 days after filing the document with the Authorized Officer and/or IBLA. Ifyou have any questions, please contact Kent Hofftnan, Deputy State Director for Lands and Minerals, at (801) 539-4063. Edwin L. Roberson State Director Enclosure: Forum 1 842- I , Information on Taking Appeals to the Interior Board of Land Appeals Form 1842- l UMTED STATES DEPARTMENT OF THE INTERIOR BUREAU OF LAND MANAGEMENT (September 2006) INFORMATION ON TAKING APPEALS TO THE INTERIOR BOARD OF LAND APPEALS DO NOT APPEAL UNLESS l. This decision is adve$e to you, AND 2. You believe it is inconect IF YOU APPEAI, THE FOLLOWING PROCEDURES MUST BE FOLLOWED A person who wishes to appeal to the Interior Board of Laod Appeals must file in the office ofthe officer who made the decision (not the lnterior Board of Land Appeals) a notice that he wishes to appeal. A person served with the decision being appealed must &ansmit the Notice of Appeal in time for it to be filed in the oftice where it is required to be filed within 30 days after the date of service. If a decision is published in the FEDERAL REGISTER, a person not served with the decision must trans',],iL. Notice oI Appe4l in time for it to be filed within 30 days after the date ofpublicatioo (43 CFR 4.41I and 4.413). I. NOTICE OF APPEAL.,,.,..,.. \I'I{ERE TO FILE 2. NOTICE OF APPEAL,...... Bur€au of Land MaDag€ment, Utah State Ofl'ice,440 West, 200 South, Suite 500, Sah Lake City, Utah 8410t-1145 wlTH COPY TO SOLICITOR,.. 3. STATE}IENT OF REASO\S Regional Solicitor, Room 620 I , I 25 South State Street, Salt Lake Ciry, Ulah 84 I I 1 Within 30 days qfter filingthe Notice ofAppeal, file a complete statement ofthe reasons why you are appealing This must be filed with the United States Department ofthe Interior, Office ofHearings and Appeals, interioi Board ofland Appeals,801 N. Quincy Street, MS 300-QC, Arlington, Virginia 22203. If yoii tully stated y91rr leasoni for appealing when fil.i.ng the Notice ofAppeol, no additional statement is necessary (43 CFR 4.412 and 4.413). W[TI{ COPY TO so1tcIToR............................... Regional Solicitor, Room 6201, 125 Sourh Srate Street, Sah Lake City, {. ADVERSE PARTIES Ulah 841I I Within 15 days after each document is filed, each adverse party named in the decision and the RegioDal Solicitor or Field Solicitor having juisdiction over the State in which the appeal arose must be served with copy of: (a) the lvotice ofAppeal, (b) the Statement of ReasoN, and (c) any other documeDrs filed a (43 CFR 4.413). 5. PROOF OF SER\'ICE Within 15 days after any document is served on an adverse party, file proofofthat service with the Unired Srares Department ofthe Interior, Oflice ofHearings and Appeals, Interior Board of Land Appeals, 801 N. Quincy Street, MS 300-QC, Arlington, Virginia 2220J. This may consist of a certified or registered mail ,,Rerum Receipr Card" signed by the adverse party (43 CFR 4.401(c)). 5. REQUEST FOR ST-{Y............. Except where program-specific regularions place this decision in full force and effect or provide for an automatic stay, the decision becomes effective upon the expiratioD of the time allowed foi filing an appeal unless a petition for a stay is timely filed together with a Notice of Appeal (43 CFR 4.21). If you wiih to file a petition for a stay of lhe effectiveness of this decision during the time that your appeal is being rer ierved by the lnteior Board of LaDd Appeals, the petitiotr for a stay must accompany your rvorice of Appeal (43 CFR 4.21 or 43 CFR 2801.10 or 43 CFR 2881.10). A petition for a stay is required to show sufficienr justificarion based on the standa.ds listed below. Copies of the Notice oI Appedl and Petition for a Stay must tlso be submitted to each party named in this decisioo and to the lnterior Board ofland Appeals atrd to the appropriate Office ofrh€ Solicitor (43 CFR 4-413) at the same time the original documents are filed with this offiCe. Il you request a stay, you have the burden ofproofto demonstrate that a stay should be granted. Stand.rds for Obtaiding . Stav. Except as other\4ise provided by law or other peninent regulations, petition for a stay of a decisioD pendtrg appeal shall shoiv sulficient justification based on the followitrg a standards: (l) the relative harm to the parties ifthe stay is granted or denied, (2) the likelihood ofthe appellanfs success on the merits, (3) the tikelihood of inunediate and irreparable harm if the stay is oot granted, and 141 whether lhe public interest favors granting the stay. Unless these procedures are followed, your appeal will be subject to dismissal (43 identified by serial number ofthe casc being appealed. NOTE: A document is not filed until it is afiually received in relating to procedures and practice involving appeals. /C^hrin,,ad n.d. r\ CFR 4-402)- the proper office (43 CFR 4.401(a)) Be cenain that all communications are See 43 CFR Pan 4, Subpan B for general rules 43 CFR SUBPART I82I-GENERAL INFORMATION are BLM oflices located? (a) ID addition to the Headquarters Office in lvashjngloD, D.C. and seven national level su-p,po l82l.l0 Where-gifnl op"int". t2 State Officis each having several subsidiary offices called Field Offices. The addresses of the State Offices ,i*-i "' "rr,".., "'ii i; th;;"st rec'ent edition of 43 CFR 1821.10. The State ofhce geographical areas of.iurisdictioo are as follows: ;;;;iild Sec. STATE OFFICES AND AREAS OF JLIRISDICTION: Alaska -------- Arizola State Office --- Califomia Alaska State olfice Arizona state Ofhce Califomia Colorado State Office Eastem States Office ---------- ---------New Mexico State OIIice Oresou Slate Oflice ---- Utaf, Srate Office -------Wyomitrg State Office Idaho State Oftice Montaoa State Office Nevada State Office Colorado Arkansas, Iowa, Louisian4 Miuesot4 Missoud atr4 all States east of the Mississippi River Idaho Montan4 Nolth Dakota aod South Dakota Nevada New Mexico, Kansas, Oklahona and Texas Oregon and Washilglod Utah Wyoming 8nd Nebraska (b) A lisr ofrhe oames, addresses, and geographical areas ofjurisdictioo of all Field Offices ofthe Bueau of Land.Management can be obtained at o,'any office'of thJBrireiu of Land Maiagement, hcluding the Washington Office, Bureau ofLand Management' 1849 C Street' if,l Jt"r" "aar*t.tDC 20240NW, washingron, (Form 1842-l; September 2006)