Salazar issues order on NM potash, oil & gas development

Washington — U.S. Secretary of the Interior Ken Salazar on Dec. 3 issued a new Secretarial Order to facilitate the co-development of oil, natural gas, and potash resources within the 500,000-acre Designated Potash Area (DPA) in southeast New Mexico. “This comprehensive strategy will allow us to move beyond years of disagreement and litigation between the energy and potash industries and provides a balanced approach that will strengthen New Mexico’s economy,” he said. Both The Mosaic Co. and Intrepid Potash Inc., the two potash companies operating in the basin, participated on the Joint Industry Technical Committee, which worked to find a solution to the longstanding issue. The final strategy, first released in July (GM July 16, p. 14) provides greater certainty to mineral lessees and for the orderly development of resources. The DPA contains significant deposits of both potash and oil and gas, most of which is managed by the Bureau of Land Management (BLM). The DPA currently produces 75 percent of the potash mined in the U.S. and has nearly 800 federal oil and gas leases. The Order calls for the use of emerging technologies associated with horizontal drilling and production of oil and gas to help minimize impacts and surface disruption. The designation of Development Areas where oil and gas wells could be drilled from one or more Drilling Islands will reduce the number of roads, power lines, and other facilities that can impact potash resources and the safety of potash miners. These techniques will result in more orderly development and greater recovery of all the products. The Order also encourages regular, constructive discussion among the industries and the BLM, and provides an industry forum to jointly address any concerns that arise in specific situations. Drilling for oil and gas will be permitted only in the event that the lessee establishes to the satisfaction of an Authorized Officer – BLM – that such drilling will not interfere with potash mining and likewise, no potash mining or exploration can unreasonably interfere with the orderly development and production of oil and gas leases. The final order, along with the notice of availability on the analysis of comments received on the draft order, will be published in the Federal Register. More information on the Secretarial Order is available on the BLM’s website, http://www.blm.gov/nm/potashorder.