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Montana leaders respond to Biden's pause on oil drilling

by CHAD SOKOL
Daily Inter Lake | January 28, 2021 12:00 AM

President Joe Biden emphasized job creation in the renewable energy sector Wednesday as he signed another slate of executive orders tackling climate change, while Montana's congressional Republicans again lamented that his actions will kill jobs in the fossil fuel industry.

A week after rejoining the international climate treaty known as the Paris Agreement and halting construction of the Keystone XL oil pipeline, Biden on Wednesday signed orders that establish climate change as a national security priority and pause new oil and gas leases on federal lands and waters. He also set a goal to conserve 30% of federal lands and waters by 2030, while seeking ways to double offshore production of wind energy, among other things.

Biden called climate change "an existential threat" and said many of his actions will create jobs. For example, he said one move directing the federal government to purchase a massive fleet of electric vehicles "will mean 1 million new jobs in the American automobile industry."

BIDEN'S ACTION on oil and gas leases will not cancel existing leases, shut down existing wells or prevent companies from drilling with already-issued permits. Conservation groups supporting the move said oil and gas companies have secured enough leases and permits to continue drilling for years to come, even if no new permits are issued.

According to the National Wildlife Foundation, more than 26 million acres of federal land already are under lease, and more than half of that land has yet to be developed for drilling. The foundation argued taxpayers are short-changed when oil and gas companies lease federal land for as little as $1.50 an acre.

"Oil and gas companies do not have to put down enough money to clean up their drilling sites, thanks to outdated bonding rates. If companies go bankrupt and abandon their wells, taxpayers are on the hook to clean up contaminated drinking water, polluted air and impaired wildlife habitat," the foundation said in a fact sheet on its website.

"There's a ton of abandoned wells out there that are leaking methane, and taxpayers are going to be on the hook for cleaning those up," said Mary Jo Brooks, a spokeswoman for the National Wildlife Foundation.

MONTANA REPUBLICAN Sen. Steve Daines criticized Biden's decision to stop granting new leases.

"This is another blow to made-in-America energy, jobs and our Montana way of life," Daines said in a statement. He added Biden's order "will kill nearly 1 million American jobs."

As evidence for the jobs claim, Daines' office cited a study commissioned by the American Petroleum Institute, the main trade group for the U.S. oil and gas industry.

A spokesman for Rep. Matt Rosendale said the Republican congressman also opposes the pause on oil and gas leases because it will kill jobs and diminish revenue to state and local governments.

The National Wildlife Foundation acknowledged the pause "could pose challenges for workers and communities that have powered the nation for generations" and called on the Biden administration to invest in clean-energy job programs.

"In the short term, President Biden should ask Congress to make investments in affected states and tribes, as well as investments in programs that would put people to work restoring our public lands, such as abandoned mine cleanup and plugging and reclaiming orphaned wells," the foundation said.

U.S. Sen. Jon Tester, the lone Democrat representing Montana in Congress, urged the Biden administration to quickly complete its review of fuel leasing and permitting practices. Tester's office said about 1.9 million acres of federal land were under lease in fiscal 2019, but only about a third of that land was producing oil.

"These lands belong to taxpayers, and with less than half of currently leased acres producing, we need to ensure Montanans are getting a fair return for the natural resources on their property," Tester said in a statement. "The federal government should not be wasting taxpayer dollars on bureaucratic red tape or thousands of unused leases, but that effort cannot come at the expense of Montana jobs. That’s why I’ll hold the Biden administration accountable to completing a review in a timely manner."

Whitney Tawney, director of Montana Conservation Voters, praised Biden's effort to attack climate change after the Trump administration largely ignored the problem or dismissed it as a hoax.

"After four years of disastrous decisions from Washington, we desperately need to take ambitious steps to protect our environment, our climate and our public lands for all Americans, our kids and future generations," Tawney said in a statement. "The president’s actions are a giant leap in the right direction. These orders prioritize job creation by investing in infrastructure needed to fight climate breakdown, they deliver environmental justice, and they put science and common sense back into the decision-making process."

DAINES AND Rosendale this week continued criticizing Biden for nixing the Keystone XL, accusing the president of ceding to "far-left" elements of his party. The pipeline was planned to run through Montana and five other states, transporting crude oil from the tar sands of Alberta, Canada, to the Gulf Coast.

Rosendale appeared on the conservative station Newsmax on Tuesday, arguing Canadian crude oil will still be transported by truck or rail on its way to refineries.

"The most efficient and safe way to transport those products would have been to utilize the Keystone XL pipeline," Rosendale said. "So this is nothing more than another theater that the Democrats are using, and that the hard left of the Biden party has drawn him to, in order to make some kind of statement."

Republican Gov. Greg Gianforte also urged Biden to reconsider the move, noting the pipeline was supported by Democratic Govs. Steve Bullock and Brian Schweitzer.

Daines' office said he plans to introduce a bill that would circumvent Biden and reauthorize the Keystone XL.

Tester's office last week said he continued to support the pipeline and was "reviewing appropriate next steps." Asked about Daines' proposed bill, a spokesman for Tester said Wednesday the senator wouldn't take a stance on any piece of legislation before it is formally introduced and details are available.

Reporter Chad Sokol can be reached at 758-4434 or csokol@dailyinterlake.com