Transcripts For CSPAN2 Hearing Focuses On Oil And Gas Development On Federal Lands 20170705

It is an hour and 50 minutes. Your first look at morning markets and breaking [inaudible conversations] [inaudible conversations] the subcommittee on Energy Resources will come to order. Coming to hear testimony on oil and Gas Development on federal land. I ask unanimous consent the gentleman from arkansas, mr. Westerman relapse of the subcommittee and participate in the hearing. Without objection so ordered. Under Committee Rule for us, and the oral Opening Statement with the ranking minority members in the vice chair. This will allow us to hear from our witnesses sooner and help members keep to their schedules. Therefore i ask unanimous consent all other members Opening Statements he made part of the hearing record and be submitted to a clerk by 5 00 p. M. Today. Without objections ordered. Now, i ask that theyre not dna type of restriction regarding the testimony here today. Its important to respect the department and the rules of the committee of the house and build other members of the public to hear our proceedings. Today the subcommittee will examine access to oil and Gas Development on on short federal lands that are subcommittee holding a hearing in several weeks to discuss offshore oil and Gas Development and we ask for members to reserve all usher questions for the next hearing. Federal mineral states around by all americans and the bureau of Land Management is obligated to respond fully manage these resources. Im sure federal oil and gas account for roughly 20 of american production is integral to our Nations Energy independence and security. However, nonfederal production far outpaces federal production figures due in large part to the overwhelming administrative burdens of the federal Mineral Development process. Not only has the new administration inherited the applications, but incredibly burdensome scheme that discourages investment and development. It is critical we evaluate the obstacles to assess and ensure a fair return to the American People. Many factors influence and operators position to develop hydrocarbons including oil price, geology and transmission infrastructure. While some may point to low Commodity Prices as a reason to withhold production, Market Conditions are no excuse for policies or for the federal government going to uphold the statutory obligations. In fact, many operators avoid federal lands due to an quantifiable risk level of certainty with the leasing of permitting schematic. The current federal oil and gas process are fraught with uncertainty, duplication and delayed, disney land for development can take years and parcels nominated explicitly retracted from the option. Although the mineral leasing act requires the blm to hold the scales to available lands, the requirement has not been enforced for years. Furthermore, once an operator successfully navigated the leasing scam, it may still proceed through the application for a permit to drill for apd review process which could set drilling back over a year. Uncertainty, delayed risk presented throughout the process make operational and Financial Planning nearly impossible and is a detriment to the state of the American People. Despite the complications and inefficiencies of permitting under the Previous Administration promoter confident that the administration will take time to carefully examine and optimize the processes. Secretary zinke, friend and former member of the committee testified before us last week and share the steps hes taking to recommit to upholding its mission. In addition to increasing programming and field office performance. We are grateful for the department of the interior steps in the right direction and look forward to finding a practical solution that optimize the responsible developmental process. With that, i recognize the Ranking Member for his statements. Thank you. Thank you, mr. Chairman. At first i want to compliment you and i want to compliment all the members on both sides of the aisle of this committee as we been doing so well in our last few meetings. Theyve been bipartisan. Theyve been cooperative, constructive and today is a little bit more contentious and i hope that doesnt end. Mr. Chairman, i dont oppose oil and Gas Development of public lands, but i do oppose letting oil and gas industry call the shots on how to manage those lands. And all of the above policy does not mean we dont set priorities and i am concerned about our priorities. Its only taken five months in nearly every move on energy that this administration has made good come right out of the executive boardrooms in the American Petroleum institute or the National Mining association. That may actually be the case given the number of oil gas and coal lobbyist that now occupy high ranking positions at the interior department, Energy Department and the Environmental Protection agency and in the white house. Rules to protect public health, gone. Rules to protect our land, air and water and cut down pollution, gone. Rules to protect fish and wildlife gone. Rules to make sure that companies are paying their fair share, gone. The standard seems to be the Obama Administration and plays and one oil and gas or coal company complain about it. If so, it is gone. And no places it more important to balance multiple uses, Environmental Protections as well as Economic Development on americas public lands. This idea of balance, this idea that some areas should be protected while others can be developed is at least endangered now and soon that could be gone, too. She put the statement of the act and assistant secretary, Americas Free market will help determine where and when Energy Development on public lands is feasible. That means the idea that these lands which belong to all americans should be managed in a way that will ensure that they are here for children and grandchildren. That idea is now gone. Instead, the administration is operating under the idea that the department of interior should become a service station for the oil and gas industry. Which lands would you like least . Where and how fast you want to drill . What regulations do you want to repeal . Are these National Monuments getting in your way . Just let us know. The department of an carrier is apparently here to keep you happy. Secretary zinke paid lipservice to the idea of supporting all forms of energy, to be in favor of the all of the above policy. But if we look at his budget, it increases oil and gas and coal programs by 34 million while renewables separate 1,523,000,000 cut. In fact, the fossil fuel program increasing this to be the only one in the entire in your budget that has been increased. We seen this movie before. Cucina were Energy Policy was literally written a big oil. During the eight years of the Bush Administration, the only measure of success of the bureau of Land Management with how many drilling permit that could issue. What did we get . Interior Department Officials thrown in jail, regulators doing drugs and getting into bed with the people they were supposed to be regulating and the thirst for mineral revenues that put Safety Standards on the back burner and helped to contribute to the deepwater rights and according to the president ial oil spill commission. When it comes to giving cues for public lands, to the oil and gas industry, President Trump has made the Bush Administration look bush lead. The fact is oil and Gas Companies are doing just fine on our public lands and in our oceans. Despite the misleading statistics that they are going to throw around today. Oil statistics really show Oil Production of public lands is up 59 since 2008. Offshore production is at a record high. Companies have more than 7500 approved drilling permits they are not using and 26 million acres of public land to be developed. It shows you i believe it the year 2008 rate through 2015, the federal onshore Oil Production and how its increased every single year up to 2015 and 2016 was slightly below, but above all the other years. So kind of closing, i just want to say my new quest whatever that means, means that never is never nothing is enough. Hunting, fishing, camping, hiking, voting, offered a, all the public lands are now second class. Oil and gas is dominant. Mr. Chairman, we have an opportunity to ensure Energy Policies reflect the multiple uses of publicly and for the benefit of all of our constituents, not just special interest of a few billionaires. I just want to say in closing, i understand your desire sent out two days ago that the title of the hearing would be focused on onshore and i would abide by that. The title of the hearing is really called examining on federal lands and as he nor outer Continental Shelf is defined as submerged lands lang siewert of the coastline and ms. Mcgregor is responsible for say offshore notch or development. Just letting you know. I thank the gentleman for the clarification. Im going to get now to introducing our witnesses. The first one is a familiar face, Katherine Macgregor acting assistant director at the u. S. Department of the interior. I wouldve time to the gentleman from new mexico to introduce the next witness. Thank you, mr. Chairman. Are they to introduce ryan flynn, executive director of the new mexico Gas Association and he has watched the permitting on our wells increase for around 200 days, mandate to get permit to something over 400. He was formally the secretary and strong reputation for balancing Energy Developments in environmental stewardship. I yield back. I thank the gentleman. Our next witness is mark scacchi, professor of law at colorado boulder law school. Dr. Laura nelson covers the office of energy and development. We remind the witnesses under Committee Rules they must limit oral statements of five minutes. Their entire statement will appear in the record. Microphones are not automatic so youll have to push the button through the first four minutes is great and then will turn yellow and when you see red, please summarize. I let the entire panel testify before we ask questions and now will recognize mr. Gregor for testimony. Welcome back. Thank you, bishop, members of the subcommittee, very good to be back here today. I loved working here with both majority and minority staff. Many of. Many with Kate Mcgregor currently serving as acting assistant secretary at the department of the interior where responsibility is the management of four bureaus in the reclamation and enforcement of Ocean Energy Management, Bureau Safety enforcement in bureau of Land Management. I appreciate the opportunity to testify in the program which plays a Critical Role in our Nations Energy economy. The image economy. Manage in june of 45 million acres in 7 million subsurface acres, most of which are located in western states including alaska. Production on lands accounts for 7 of her nations onshore oil. 10 of natural gas and 31 of coal produced domestically as well as 18,000 megawatts of Renewable Energy. The program generated over 1,256,000,000,000 in royalties and bonus bids, all of which were shared with state. To use the funds were other important municipal needs. Public lands are integral to America First Energy Agenda to maintain u. S. Energy dominance by growing Domestic Energy production in creating and sustaining jobs throughout a country. Access to responsible Energy Development begins at the planning and leasing process. 10 years ago they had nearly 45 million acres appeared to be a 27 million acres. Nearly identical to the total area doesnt needed as critical Environmental Concerns also known as acc which stand at over 24 million acres. Nearly 10 of all managed lands in the United States. They designated a. 2 million acres. The most since 1980. This is one example of designations that limit how public lands may be used. The Energy Production need not be mutually exclusive. That is why its vitally important to restore multiple use mission and strike the appropriate balance of us job creation in rural america. This is about restoring balance. Undersecretary thank yous leadership in the department and the alum have been proactive and responsible Energy Production on public lands including secretarial orders to remove duplicate of burdens while promoting for hardworking families. Order 3352 will jumpstart production in the Petroleum Reserve alaska helping to unleash the Energy Potential and increase the transalaska pipeline. Efforts have shown to be effective undersecretary thank yous leadership with more acreage and generating more revenue in the First Six Months in the same time last year. We are only just getting started. Bom plans 14 additional resales here. Promoting access to publicly and does not come without challenges. Im sure all members of the committee are in close contact with state and local leaders who do not hesitate to communicate frustrations. The secretarys goal to restore trust to their state and local partners, many who rely upon a to b. In revenues that come from oil and Gas Production on public lands. For example, the Census Bureau has found rural new mexico is one of the highest poverty rates in the country. World mexico is home to the most promising gas deposits in the entire world. Resources are a tremendous source of jobs, Economic Growth in revenue for communities. This is why the Administration Remains committed to promoting responsible oil and Gas Production that creates jobs from a robust economy contributes to security. A multitude of factors in the department are reviewing all of these and taking action or possible to encourage Development Opportunities and improve efficiencies without cutting corners to ensure activities are done in a smart and environmentally responsible way. Thank you for the opportunity to testify today ill be happy to answer any questions. I now recognize mr. Flynn for his five minutes. Thank you from a german, chairman bishop, members of the subcommittee on staff. Training is ryan flynn executive director for the oil and Gas Association. Prior to taking over as the secretary trustee in the state of new mexico. I worked in State Government for approximately six years. Almost six years prior to taking this role. I wanted to thank representative pearce who just had to step out of the room, but its been a tremendous leader on his district to one of the most resilient and productive oil and gas in the world, the great basin. A lot of talk about mexicos oil and gas industry and some challenges to oil and Gas Development on federal land in new mexico and suggest opportunities for improving new mexico. I want to be clear my goal here today is not in any way, shape or form to criticize bln individually. Weve had a chum and its working relationship with blm staff and leadership and look forward to continuing to work in relationship moving forward. Like any large agency come under several opportunities for improved opportunities for improved a. I. Believes secretary zinke has inherited a difficult situation, but is more than capable enough to the task for turning things around in a positive direction. Mexicos oil and gas industry is the most important economic industry to a state of new mexico. Last year 2016 in mexicos oil and gas industry insured 1. 6 trillion to her budget. That equals roughly 2500 of the budget last year but fixed . 2 billion. Oil and gas simply contributes either directly to the states general fund. This money goes directly to road, hospitals, schools were the infrastructure would simply not be possible without the oil and gas. They employ 100,000 people, about 120 million people. New mexico has one of the highest poverty rates in the country with almost a quarter of our population living below the federal poverty line. Oil and gas jobs are extremely attractive in our state given the average wage raises 75,000 a year. New mexico is one of the top Energy Producing states in the country ranking fifth in crude oil and natural Gas Production. A prolonged period of low prices come in a mexicos and gas industry has remained resilient. The last eight months is a major acquisitions of purchases in new mexico totaling over 13 billion. In new mexico portion of the northern Delaware Basin has been a focal point of the expensive basis oil and gas acquisitions of the world. Calendar year 2016, new mexico is the largest producer of oil and gas from a federal land accounting for 78 Million Barrels of oil and over 770,000 cubic feet of natural gas. New mexico the biggest challenge to oil and Gas Development in new mexico remains regulatory uncertainty and eln. The best illustration of the issue is to look at the basin and development in west texas compared to development in mexico. As of june 16, 2017, there were 59 rigs running in new mexico versus 309 in the texas permian. The main difference is the bureau of Land Management. Blms Carlsbad Field Office takes approximately 250 days to process a drilling permit. Right of ways takes approximately a year or more depending on the field office. Overall, blm suffers from a lack of staffing, a poorly defined encumber some new system, access to programs and systematic irregularities in the permit processing protocol. These delays translate directly to lost revenue for federal and state stakeholders alike. Our estimates are approximately 124 million in federal royalties in 831,000 state is deferred each day on the current accolade at offices in new mexico. This Financial Impact is huge in a state like new mexico where we face a prolonged budget issues in light of Oil Nashville Market Pricing for oil and gas. I will conclude by noting that there are many opportunities in new mexico such a simple edits to the program, agreements with state regulatory authorities to transfer some of the processing permits from blm to state offices like our Oil Conservation division and blm making use of the existing law such as categorical exclusions to allow for review and approval of permit. Thank you very much, mr. Chair. Thank you, mr. Flynn. Which are now recognizes mr. Squillance or his five minutes. Thank you, chairman go sour and Ranking Member lowenthal for the opportunity to testify. I am a professor of law at the university of colorado law school. I begin my written testimony by asking that we each commit to each other that we will engage in a meaningful way on important issues that are the subject of this hearing and i am offering this testimony today in the hopes that we can have a constructive dialogue. I want to make three points regarding oil and gas programs on federal lands. Oil and Gas Production on federal lands remain strong despite a weak market and lackluster interest in new leases and development. Second, efforts to accelerate leasing and development under Current Marketing conditions are misguided because what they could do is block of federal oil and Gas Resources even as they deny the Public Affair returned on these valuable assets. In this regard, by the way, the focus really should eat unproven and reforming our oil and revenue policies at the federal level, which are much in need of reform. Finally, if we are going to have oil and Gas Development on public lands, it has to be preceded by appropriate environmental analysis and planning. My judgment is entirely inappropriate to use their federal lands for industrial scale oil and Gas Development. Let me turn to the first question about oil and Gas Production. As acknowledged in my written testimony, the number of federal leases, the amount of acreage under lease in the amount of new leases issued a leases issued about a client in recent years. But here is the thing. Federal onshore Oil Production more than doubled between fiscal year 2008 and 2015. A number of federal producing this is has never been higher. If you look at the year 2016, the amount of federal land producing oil and gas was higher than only one year out of the last 10. What is remarkable about these statistics is that it is all happening at a time of weakening demand. Just a few figures here to support that claim. First of all, federal land under production amounts to less than 47 of the federal land and was under lease. In 2016, the industry did not even bid on two thirds of the leases offered by the blm. I should note in 2015 theyve been only 15 of the leases offered. Right now we have 7500 apbs approved and are not being drilled upon and that is the most others ive heard that weve ever had. They offer 2180 for drilling permit on fewer than 39 of these permit. Either way, by contrast when a number of the 70 and 80 range. So what is going on here . That takes me to my second point with Market Conditions. I want to make two observations. When i last looked at the market price for oil on monday, the price is at a low level. On monday west texas is up 42. 46 a barrel. That obviously has an impact on the interest for the oil and gas industry. As another important point they need to recognize. The place for oil and gas which have driven development in recent years have been not to be found on federal land. The Permian Basin, which mr. Flynn talked about is one of them. Are the most part, these are on private lands in other areas. These try to sell these leases will get low prices. Essentially giving away these valuable federal resources and that doesnt make sense. We have to be lucky not leases in approving more atvs. The state of texas charges 25 on oil, twice what the federal government charges in my home state of colorado, 20 on offshore lands, 18. 75 cents. If we are going to use public lands for oil and Gas Development we need to be smart about it. I dont oppose oil and Gas Development on public lands but for now at least, all of us rely to some extent on Oil Production, Gas Production, for power generation, but we need to recognize we can accommodate these interests without doing damage to our public lands. If we could show the slides. Mister flynn talked about the Permian Basin in texas, those who have not been here i urge you to go. This goes on for miles in every direction and it is not the kind of thing i think we want for our public lands. This is private land but on our public lands we are to be doing things like appropriate planning, doing appropriate environmental analysis and if it takes more time we owe that to the American People to make sure if we have development we do it right. I dont oppose the filament of public lands for some oil and Gas Development but it is different from our private land, these are multiple use lands and we need to make sure we do better than we have done on public lands and we cant do this if we are denying the blm adequate resources in funding and personnel. Good management requires proper funding. I look forward to your questions and discussion of these issues. The chair recognizes doctor nelson for five minutes. Good morning, thank you. I want to thank chairman bishop for the opportunity to be here today. I serve as entity advisor to the governor of utah, governor gary herbert and i am going to be focusing primarily on our Energy Resources. The Natural Resource state includes mining and agriculture and critical Natural Resources but also includes our national and state parks as well. We believe in balancing use and conservation and we this is the best approach to leveraging all of our resources to generate revenue and create jobs so focusing on energy in particular, this is an important aspect of our economy, it contributes 9 to our gross state product, it is 2. 2 of state wages although it is only 1. 1 of our employment numbers, it indicates these are very high paying jobs, have already been points discussed and contribute 73 million in revenue most recently in 2015. These revenues are important to utah. They provide education to our students and also provide many other Critical Services that have already been mentioned. Much of the country, utah is dependent on Natural Resource development, experiences booms and busts in the Natural Resource development and since 2014 utah has been experiencing a decline in production activity related to oil and gas. This is in large part driven by lower Commodity Prices which are a function of Market Conditions. Just to give you an example of the impact Oil Production in 2015 was around 41 Million Barrels a year in utah. In 2016 it was 31 Million Barrels. Matching our 2012 levels. Natural Gas Production has been on the decline since 2012. We believe nonetheless that if we access our resources we can create new opportunities for development of these commodities. As Commodity Prices rationalize this is going to be critical. What we need to do is create a regulatory path that allows sustained growth in jobs especially in those communities that have been impacted by the past years decline in oil and gas activities. In utah our overall rate of unemployment as of may 2017 was 3. 2 . In oil and gas, they are very dependent on jobs in these sectors and their unemployment rates are 5. 9 and 6. 6 respectively so we truly believe access to our resources, coupled with and all of the above Energy Strategy can create sustained growth in the developed activity and associated jobs and revenue. Utah is a public land state, 70 of our land is federally owned, so getting it right when it comes to leasing and permitting is key if we are going to deliver on the promise of energy and mineral opportunities. In utah as i mentioned 70 federally managed, this leads often times to lengthy permitting schedules and especially when compared to the permitting schedules for applications for permits to drill of our Utah Division of oil, gas and mining, we are not convinced the federal process delivers results that are more robust than those provided through our effective and efficient state agency. The Energy Policy act of 2005 specifies the bureau of Land Management must approve applications for permit to drill a pds within 30 days but we understand the average permit time is closer to 220 days and depending on the field office it is not uncommon for it to take years. Our recommendation is very simple, to resolve the lengthy time it takes to approve applications to drill, to allow the primacy to be allocated to our division of oil, gas and mining were generally states where they are willing and have shown they are capable of taking over this process. This is in no way disparaging to blm or the division is the department of interior in particular but just to provide an opportunity for those agencies to focus on their broader mandate of multiple land use. We recognize currently that doi and blm do not have authority to delegate primacy for regulation, in particular permitting and enforcement of oil and Gas Production to the states for production occurring on federal land. However, we recognize the primacy may be accomplished by one of two actions. First of all congressionally directed legislation, or application of the federal permit streamlining Pilot Project established as part of the Energy Policy act of 2005. In september of 2014 the u. S. Senate approved best 240, the blm permit process improvement act of 2014 that among other things makes permanent the federal streamlining project program so we believe assigning primacy, delegation of oil and Gas Development where appropriate to states would allow better efficiency and better environmental outcomes and would also free up the resources the gentle to the lady is over time. Your testimony will be in full. Think the panel for their testimony, reminding members the committee imposes a 5 minute limit on questions. The chairman will recognize members for questions they wish to ask and i will start with myself. Mister flynn. These policy changes put in place in 2010 internal memo 2010117 has resulted in a situation where the blm is not fulfilling the mineral leasing act requirement to hold a lease sale in every oil and gas state quarterly. Only one sale was held in the state of new mexico in 2016, sales and lower interest was canceled and not replaced by sales in other areas of the permian and san juan basin. What impact does the rotational sale schedule have on oil and Gas Development considering the texas permian is right across the border and how does this affect the budget of the state of new mexico . Thank you for the question. The impact is profound from both an economic and jobs perspective. Approximately one third, give or take a couple Percentage Points from in a given year of our budget is derived from severance taxes by the oil and gas industry so when the state of new mexico is not attracting activity we are suffering from an Economic Perspective. The federal royalty, nearly 50 of the federal royalty paid comes back to the state of new mexico so we derive benefits from our severance package as well as our share of the federal royalties are paid. Each drilling rig constitutes 50 to 100 highpaying jobs so each rig that is drilled on the texas side of the border means 50 to 100 highpaying jobs, 75,000 a year going to texas instead of new mexico and that trickles down and has an impact throughout our economy. Those workers are spending money on restaurants, buying goods and paying more taxes, when buying different goods and paying for services. New mexicos budget is dependent on the oil and gas industry, we certainly is an industry support efforts to diversify the budget. However the fact remains that we are the foundation of the budget and when we suffer the state suffers. From a budget perspective we just had a special session to deal with the shortfall because of low market prices where we had to account for 100 million deficit and next year we have the current projections which are inherently inaccurate so we are facing another budget deficit of perhaps 250 million. This impact is profound in new mexico where our jobs and economy is dependent on the oil and gas industry. You said 50 . It is 48 since the murray ryan budget. Miss mcgregor. In your written testimony you state since taking off office, the Quarterly Sales in every office, you also highlight the successful, february 2017 sale the generated 129 million. What in your opinion precluded Quarterly Sales during the Previous Administration . Thank you for the question. I cant speak to the Previous Administration of decision whether to hold lease sales or not hold lease sales. It is statutorily required . It is in the mineral leasing act. I cant speak to the fact that we had more lease sales this year than last year. 11 lease sales were canceled or postponed last year alone. We are hoping to continue forward with our schedule of lease sales but we believe leasing can be done economically even in these price conditions, just to touch back on mark squillaces, and there is no lowballing the goes on was when we conduct leases, this actually ensures that each lease that is sold is reaching fair market value threshold. Yesterday the bureau of Ocean Energy Management announced we rejected ten bids, 10 million for bids that were made that did not reach fair market value threshold so we conduct our lease sales in accordance with federal law and we will make sure taxpayers getting fair market value. My time is short so i will acknowledge the Ranking Member for his time. Miss mcgregor, i mentioned earlier when i quoted your testimony, Americas Free markets will help determine where and when Energy Development on public lands is feasible. To me that is a troubling statement. It sounds an awful lot like an admission that the oil, gas and Coal Industries will control the location and timing of energy to element on our public lands, then the Energy Counselor today, to the secretary, is quoted as saying we are moving towards, quote, and Energy Dominance public policy. My first question is do you agree with the policy statement in the federal land policy and Management Act that states it is the policy of the United States the public lands be managed in a manner that will protect the quality of scientific, scenic, historical, ecological, environmental, air and atmospheric, Water Resources and archaeological values, do you support that statement . Absolutely. I also support the areas that speaks to managing and balancing multiple uses of land. Thank you. Do you also believe in that balance between that and also exploration, production of oil lease is bad . There are times it is necessary to override the wishes of the free market . Just to speak to that i believe the statement that is the sector and bureau of Land Management will control where and when leases are hold. It is not true. It will be a measured development that of course preserves the multiple use of the land and varied uses. You do believe there are times that you will overstay or protect those values to override the wishes . I absolutely do. I know there are areas that will be more treasured and special than others but i think we can strike the appropriate balance. That is what we are trying to find on this because we have real concerns that the policy has moved us away from that balance and not towards that balance. I understand your concerns and i think the entire planning process at the bureau of Land Management will ensure that we manage well and that we find that balance. Lets talk about according to the blm budget there were 2552 drilling permits currently pending at the end of the last fiscal year and it seems like taking care of this backlog and issuing permits as quickly as possible is a high priority for the department and i believe that is true. It is good to be efficient. Permit processing shouldnt take longer some of the visions of been raised that we dont need to tell people out there that there is a huge back log of permits, at the risk of not doing a thorough environmental reviews, not evaluating protest or dealing with other activities because is it not true that the number of unprocessed permits is the lowest it has been since 2005. We have the smallest backlog we have had in over a decade. Is that not true . Im sure that is true but a backlog is still a backlog. Thank you for stating that it is true. At the end of 2015 there were over 7500 of those this is the most in a decade, drilling permits that companies have still not used which is the most was we have the most drilling permits and smallest backlog. That have not been used is that not true . It is correct that we have 700950 approved but not yet drilled in this year. That is also the most we had in this decade. Im not sure. I can get back to you. Lets get back to the data. Ranking member wrote to the secretary in april looking for the number of permits that have been approved but not used at the end of fiscal year 2016. That is what he has done. He has written to that last week the secretary said there was no need to answer letters because they can call us with the information. Im asking you will you please ask the secretary to either call me or you can call me with that data and you can text me. You are going to give me your number . Yes i am. I will be happy to work with your office on fulfilling that. Thank you and i yelled back. I recognize the chairman of the full committee, Mister Bishop from utah. When you call me if i gave you the number . Sure. If you could add the information it would be nice. Let me ask mister flynn and doctor nelson for just a second, there are questions. 39 of the leases out there are not being taken, why would a company not bid on something, and administration would actually put out for bid . Why would they not go for that very quickly . It is too difficult to provide a single answer. It would depend on the geology. 16 seconds to give me a number of answers. Depends what you are bidding on first and foremost. They would be considering the productive prudential. Is there a possibility the bids would not have enough resources to make it practical . Or that those lands would be so litigation prone that it would not be worth going for them . Absolutely. That may be one of the reasons it would be possible for any administration past or present to be so devious they put out bids for leases they knew would not be acceptable . Mister chair. You have a vision of their heart. Doctor nelson, let me go to you. We are talking how cheap the royalties are on federal land was why would a company not try to pill the cheaper royalty rates . Why would they go to steal private land to pay more money . The question can be answered pretty simply. What we have seen in terms of leases that are offered is there are very few parcels offered at a single time. You are well aware, chairman bishop, Companies Look to maximize resources and if they cant block up the Resource Plan they are not going to bid, irrespective of what royalty requirements are. I hope that is an answer. Only reason someone would bid on federal land is to make money in the longer it takes to permit the longer it takes to go through to get those areas, simply means it is not profitable. They are willing to pay more money if they could be in production which should be an idea for the federal government that if we can guarantee you are going to be in production, the permitting process goes through, people would be willing to pay more to do that. Doctor nelson, are there other examples how land can be stopped from production . Would there be projects that can be established shown that they are worthy and all of a sudden they need electricity or power to go into that plant, the federal government could block rights for the power going to make the entire project worthless . Would that ever happened . Yes. In my district . Yes. Infrastructure is critical and often times must cross federally managed land and so it does sometimes inhibit the ability to develop a project even after a lengthy leasing process, then the need to secure these things for the infrastructure. Let me go up for you. There are some native american tribes who rely on Energy Development, they dont have gaming opportunities. Examples in prior administrations going to implement the programs, the tracking devices and programs which inhibited their ability to do that. There are several examples where Energy Producing tribes did reach out and issue Public Comment on concerns for responsible production on their land. They were not just dealing with that, the epa got involved with shutdown any production they would have Going Forward. Is doi considering reforms that would delegate permitting process and Regulatory Authority . It is something i would be happy to talk to your staff and your office about. That sounds like an interesting idea we would be willing to discuss. I do know that there was a lot to talk about. If indeed a company was held to federal standards, the state actually held the permitting process could such a system actually worked to facilitate faster permitting . We believe it would and we would like to move forward with assigning that for approval of applications to our Utah Division of gas and mining and other states that have proven the capability. I am over. That is my rule that i violated. Thank you for your answers and for being here and spending time and talking about this. Before i recognize the gentlewoman from massachusetts we are having a hard time hearing from you. Take your microphone and move it closer to you and speak to the microphone and get closer to it. And we are in the midst of a clean energy revolution, messages of the loan, jobs in the Clean Energy Sector have grown by 75 since 2010 and it is now an 11 billion industry across the entire commonwealth. We reached a significant milestone this past march when 10 of electricity came from wind and solar. Many individual states the percentage of electricity generated by wind and solar is higher. Our nations public lands stand to play a significant role in this transition to clean energy. The Obama Administration bureau of Land Management approved permits on public land for utility scale solar facilities, wind farms and geothermal plants and set a goal of approving projects that would generate 20,000 mw of clean energy by 2020. I believe this committee and the new administration should be working to ensure public lands are supporting renewable Energy Development, where it is appropriate and all of the above framework to help decolonize our electric grid, support job creation and increase royalty payments to taxpayers and local communities. Welcome back to the committee. This issue of supporting renewables the bureau of Land Management fiscal year 18 budget request includes a 13 million cut to Renewable Energy programs. This was budgeted for activities such as Public Outreach and Stakeholder Engagement and making sure permits are reviewed in a timely manner. Your written testimony outlines many steps this administration is taking to rush approval of oil and Gas Development but no similar steps for Renewal Development was how will you ensure that Renewable Energy projects have proper funding and staff levels to ensure similarly timely reviews and are you considering similar targets as the Obama Administration did for renewable Energy Development . Thank you for the question. We are definitely supportive of all energy jobs not engaged in picking winners or losers in any way. And they were already permitted and will continue to be permitted on federal land and appropriate areas that have already been determined. When i said we have 18,000 megawatts of approved or noble energy much of that is still remaining to be installed so we are aware that there will be permitting on continued work for the bureau of Land Management to allow these projects to move forward in a responsible manner. I leave by focusing on the permitting process in general and making sure we are looking at efficiencies across the board it will benefit all Energy Producers on federal lands including Renewable Energy producers. You are abiding by the obama admin station goals . We will ensure Renewable Energy is permitted in an appropriate and smart timeframe. Are you setting new goals for the Trump Administration in this area . The Trump Administration, secretary has been clear on priorities moving forward and restoring allens on those lands which include all energy and based on the acreage and numbers taken care of in the last administration. Digging out of a little bit of a hold to restore that balance but we will prioritize all energy jobs on federal lands. As the Trump Administration touted all of the above Energy Strategy, renewables article he admitted and although you are looking to see through obama permits, not looking for additional ones, i do think a responsible Energy Production does call for more thought through plan as to how to maintain some balance given the extraordinary Job Opportunities we see in massachusetts and that im sure present a real opportunity across this country. Professor mark squillace, in your experience are fossil fuels given preferential treatment in terms of development on public lands . Push your button please. It varies from each administration but the Budget Proposal from the Trump Administration seems to clearly favor fossil fuels over Renewable Energy. That is one indication. What i would say about that more broadly is the United States has a responsibility to address the problem of Climate Change in the longterm Going Forward and if it is going to do that it needs to manage the decline of fossil fuels. Fossil fuels are going to decline because of Market Conditions irrespective of the other issues we have been talking about is what we need to manage the climate in a responsible way because if we dont we will see the kind of economic dislocations we have seen already with the coal industry and we will see Going Forward with oil and gas. The gentlemans time is expired. I think the gentleman. Lets acknowledge the gentleman from colorado, mister lamborn. A couple questions but before i ask let me say when you are on this side of the deus i found you to be one of the hardest working, most dedicated people i ever met and i think the country is fortunate to have you doing what you are doing now. So keep that up. So i am going to say, you said in your testimony the blm is adding features to enhance the new electronic apd processing system, the automated fluid mineral support system and plans to decommission parts of the fryer apd processing systems, improve automation capacity and better match the blm resources to permit activities. That is what you said. Using internetbased bidding and enhancing electronic processing of apds is what the subcommittee has been pushing for for a long time. Tell us a little more about this. I would be happy to talk about that. The more enhanced internetbased program when it comes to filing apds i recognize new mexico in their field office has a Different Program so we are working out the details of how these programs can work better together, to make sure we have a better program, processing apds through internetbased going to help us in many ways, eliminating hopefully a lot of discrepancies, right now the blm has a permitting timeframe of 257 days. We are trying to get to 90 days and by statute we recognize we are supposed to be at 30 days. We think utilizing this internetbased meme and harnessing that would be able to find ways, our staff compares it to turbotax but allowing folks to fill in the data and make sure data doesnt get filed until it is fully complete is one of the areas that will be helpful and increase transparency for folks on the committee and general public, and folks on the front line facing on a daily basis especially in areas like casper, wyoming. With internetbased leasing, the bureau of Land Management, we are moving to that model and our folks internally are noticing base fitting, we are seeing in uptick in participation, more people can attend the least sales online and increased revenues coming in but we are still analyzing the details of what we are seeing in those least sales and hoping to get something up the hill eventually that provides more information on that. Thank you. At the end of fiscal year 2016 the blm oversaw 40,000 leases across the country. This may sound like a lot but is actually the lowest number of leases since fiscal year 1985, 30 years ago. Despite the fact the mineral leasing act requires leases be held more frequently, if the secretary deems it necessary the blm has canceled or failed to hold the required sales so what will the Current Administration do to correct this . We are committing to making sure we find we are going to find the appropriate areas to conduct lease sales and we will conduct those least sales and we are aiming to do quarterly least sales. It is important to talk about leasing. In the example that 2014 was one of the highest producing years coming in that year alone in north dakota an example of a project that came online that initially produced 4200 to 6000 barrels of oil a day, in 2014, great project got through the process, more wells might be drilled there. It was least 15 years before in 2001. Long lead times to get from least to production. That is why leasing and having certainty in the leasing process is key because Companies Take time to develop these resources and have to allocate their own Economic Resources to do that. Thank you for your testimony. I yelled back. The gentleman from florida is recognized for five minutes. I appreciate the discussion today. We need to make sure we are not just focusing on 20th century jobs but 21st century jobs. In our state we have avoided trying to have just oil and gas economy. Theres a big push among a lot of states who are addicted to oil and gas jobs that havent diversify their economy like florida and a lot of other state so there is a lot of pressure to maximize as much as possible but we still have gas and oil for homes and cars and goods so obviously in the near future we need to keep up the demand but if we look to the future we need to make sure we are addressing Climate Change, pushing Renewable Energy, making sure we are conserving our parks and Natural Resources and protecting our coastline. In florida is more about tourism and agriculture then oil and gas and that is something with the disastrous bp oil spill in the gulf that wrecked the western part of the state for a year plus and we are still getting reimbursed for that but i want to focus on issues that are addressed by speakers here. According to our commission, leasing times from 20052015 have been 190 to 220 days under the bush and Obama Administrations and now it is 250. What specifically are you recommending to get is from 257, something you mentioned, back down to that average range of 190 to 220 . Thank you for your question. There are very few blm land in florida but this is important an important issue to you but what we are doing is prioritizing areas where there is a good return to the american taxpayer and one area is an american first Energy Agenda. Would have done so far is create priorities, start looking at vacancies in the field. Two weeks ago i was in carlsbad, new mexico in casper the wyoming visiting some of these folks, 21st century jobs, some of the folks out there who are processing these permits and talking to them about what exactly they need to move these permits in a more responsible time. Efficiencies that will be forthcoming to us but none today. Doctor mark squillace, we have 192 out of 213 million acres eligible for leases, talking 10 less. Is this 10 of land feasible for leases . Is this something we dont need to be pursuing . Let me answer that in a different way, congressman. The concern is when you are deciding whether you want to lease oil and gas on public lands, we go through a landuse planning process and what happens made so much of the land available for leasing so there is the initial judgment that has to be made but the way the leasing occurs is nominations from industry. Industry decides what lands they put up for leasing and they did on them. That has not worked robustly in recent times because there hasnt been that much interest. There are certain areas. If there is a reduction in leasing is it supply, demand or regulatory issue . Primarily a demand issue. Americans are reducing their demands on oil and gasoline to less desire for leases. I want to emphasize one important point about the regulatory should because there has been a lot of discussion about regulations to limit development. As i tried to point out in my original testimony the problem is we are dealing with public land and it is necessary, not just legally required but necessary that we focus on what the consequences are of full field developed of oil and Gas Resources on our public lands. That kind of develop and can be devastating. It has happened a lot on our private lands. Much more problematic on public land. There is a regulatory component that it is a necessary component designed to make sure we are protecting all the resources we talked about. It has taken 257 days a looks like we will have plenty of time to review. The gentleman from virginia is recognized. I would like to think the witnesses for joining us today. Mister flynn and doctor nelson, i want to get you come from states with significant acres of federal lands. Obviously that does have an impact on your state. The question is what type of impact, you spoke earlier about the Economic Impacts of what happens on those lands and lack of activity that generates economic activity, i wanted to get a little more detail not only how it affects the state but how does it affect local economies, and what do you see from the standpoint of having to deal as you talked about budget deficits keeping economies going, how do you deal with massive amount of public land, looking at ways to make sure they generate revenue and looking at the regulatory hurdles that are there for Energy Development on those lands. I want to get you and doctor nelsons perspective from your viewpoint. Two quick answers. One that would not really go to the economic but from an Economic Perspective it boils down to Infrastructure Projects. From local development perspective, roads and sewers are the bread and butter of city and council, local government officials, they are in the front lines of governing, you interact with them constantly in your districts. I interact with them in my prior role and my current role and less revenue means less Infrastructure Projects for roads, sewers, Drinking Water systems, the second issue i would point out, we talked about the Economic Issues but the delays processing rightofways, if Climate Change is an issue you believe is important, like i do, then one of the key infrastructure challenges we see to reducing emissions from vending is related to infrastructure, to reduce flaring events the rightofway approval, not being processed contributes to the problem when it comes to Greenhouse Gas emissions. Beyond the economic issue there are profound environmental impacts associated with the difficulties, processing not only permits to drill but rightofway approval. Doctor nelson. Thank you. I understand what mister flynn has said, in use our we have 29 counties, 23 to 24 of those are Rural Counties and this is where the preponderance of federally managed lands are. To the extent that access to development of those lands is limited where it is appropriate has significant impact. This is where we see high levels of unemployment and limited opportunities for diversification, the Economic Development which in turn does drive the diverse city in the infrastructure that is required to meet needs for Natural Resource Development Also lends itself to other industrial and commercial developments so you are creating a conundrum when you limit access for those communities that are dependent on that initial thing. You have heard concerns from both of these states, the state and local level about making sure the highest and best use of those lands are under federal control. To make sure these states, to deal with the issues they have to deal with . Thank you for the question. Every state has different infrastructure needs and different economies and goals. Of these states being represented today would like to see responsible federal oil and natural Gas Development on their land. The good news for them is that is a primary this administration starting with the white house, we are allocating our resources and making sure we are addressing not only planning issues, on the planning side of things we are striking the appropriate balance to find the right acreage to lease but also when it comes to permitting, addressing back log not just for abds but rightofway and making sure we get through those in a responsible timeframe, folks that invest on federal lands, any building project, doesnt have to be oil and gas, can get through and have a reliable permitting process. I yelled back. Miss america on his recognized. Thank you, mister chairman. I spent the last several years sitting at the city councilmember where i had an oil company that wanted to come into my town to drill 34 oil and water injection wells on land and out into the santa monica bay. I have seen time and time again where big oil tries to come in and take over urban areas and take over areas that are having more environmental pollution. We read about spills happening all the time whether they are on land or offshore. I was disturbed to hear that the president wanted to open up coastlines again to drilling. I think today we have heard i would say an assault on our federal lands. Sometimes i look at this stuff and i think this administration is talking points are coming right out of big oil. One of the things im hearing about is something called Energy Dominance. Mark squillace, they talked a lot about this. Can you explain what that means . Do you think it is something we should strive for on our public lands . Interesting question but i dont know that i can answer what exactly in Energy Dominance means but it is the wrong word. I dont think any of us should be looking at dominance. We should be looking at being energy smart and energy smart to some extent is about what we have been talking about today, and all of the above strategy but one that recognizes perils of Climate Change and the risks we face if we continue to develop fossil fuels at a pace that is simply not sustainable given the challenges of Climate Change we talked about. If we think of it in that way it is appropriate to allow fossil fuel development to decline in an appropriate way, manage the decline in a responsible way and shift our economy so that we are relying more and more on renewable and other forms of energy that do not cause the problem we have seen. What do you think the impact is going to be if we start doing more oil drilling on public lands, to the environment and the global Climate Change problem we have . As i mentioned in my testimony im not opposed to oil and Gas Development on public land but it is fundamentally different from oil and Gas Development on private lands because these are public lands. If we are going to have it we need to have appropriate planning to make sure we are doing it responsibly. With all the great technologies we have right now we do horizontal drilling in ways that allow multiple wells to be put on a single pattern to minimize the footprint on public land but if we dont do sufficient advanced planning and dont do the kinds of environmental analyses that are required for appropriate development of those resources we lose the opportunity to make these advantages available to us. There is an appropriate way to do it. I think we need to recognize it cant go on forever, we do have response abilities globally to deal with the fossil fuel issue in a timely way but if we are going to have it we can do it responsibly. Im proud to be in california where we have been leading the charge and moving toward Renewable Energy investing and knowing there is great Economic Development in that as opposed to the fossil fuel industry, thank you, i yelled back. The gentleman from new mexico, mister pierce recognized for five minutes. Thank you, appreciate the conversation we are having today, thanks to we do our panelists. Mark squillace, you have comments on the second page of your testimony about the leasing, 2 an acre, that section is in there because you feel it is inappropriate, a give away. Why is that section there . You are asking about the bonus bids. The 2 an acre if they dont sell it is a little energetic when talking about the issues. Many people are saying they need more staff. Can you address that question for new mexico . Sure. And a Pilot Program should be enacted. That created additional funding, additional Staff Members to be hired including two offices in new mexico and carlsbad office, they were able to increase the applications they processed by 10 a number of days it took to process the apds increased so they got less efficient by 40 . Jumped in and helped out. Same people working the same agency took much longer and my studies showed it to double. I know that whatever mister lambert from colorado said about your performance seemed to go well so i will identify with that also but thanks for visiting the state and look forward because these delays do affect us. 3 miles from the texas border, i can see all those rigs running over there in texas that should be running in new mexico but cant get the apds permitted so the companies have the option to drill there or here, i can see the effect of permitting today so it is not a level playing field, people in choose the best economic opportunity, we will drill on private land instead of trying to wrestle with the government and that hurt states like new mexico and the federal government and it hurts our job base in new mexico so mister chairman, i extend my time, thanks for your acknowledgment blue shield back. Mister byers recognized. Katherine mcgregor, i see the interior department is considering recombining the Ocean Management energy with the bureau of safety and environmental enforcement. The reason they exist is the deepwater horizon tragedy. The agency that existed is the Management Service and when the agency wasnt mired in scandal it was dealing with a sharply conflicting message promoting and regulating offshore drilling. The creation of a dedicated offshore states regulator are separate from leasing agency, the key recommendations of the president ial oil spill commission. Senator bob graham, a cochair to the commission was quoted saying when he heard the news of the potential accommodation, quote, i heard no indication why we are doing this. It is 7 years after this disaster, this is one of the key steps in mitigating the chances of repetition. I believe it cant be to address problems with permitting. We looked at the first five months of this year, january through may, approved 324 permits with 20 pending. Sound like firing on all cylinders. What is the evidence you have that shows combining them would be in the Public Interest . Thank you for that question. When it comes to the offshore we want to make sure we are ensuring that the bureaus that lease and conduct inspections are doing their jobs and doing them well. When it comes to the split into three agencies cover the original split broke out, the office of Natural Resources revenue known as honor which was split and left eventually was itself split into two separate agencies. As we look at reorganization probably within the department. The discussion on whether or not they should be recombined is ongoing and internal but i hear your comments and im happy to take those back with me today. The secretary talked about thinking of massive reorganizations and everything should be on the table but please remember the reason they were split in the first place so you dont have the fox guarding the hen house. Governor gary herbert sent a letter to ed robertson asking the bureau not to do that next to the national park, governor herbert said, quote, visitors come from around the world to see the lush landscape surrounded by towering iconic sandstone slips and the preservation of this unique experience is important to the surrounding communities, their economy is dependent on recreation and tourism. Do you believe other local communities and economies and communities in utah that similarly depend on recreation and tourism should have a say in how oil and gas leases in their local communities are managed . Yes. Utah as i provided in my written testimony and opening remarks today, we are a Natural Resource state and that includes national and state parks and balancing use in conservation and we also are very collaborative state in working with local communities which our key position is this occurs best when permitting happens at the state level that you have that local interest, local control. Assigning primacy for the permitting process associated with apd is best managed through the state, not to diminish the importance of blm in the overall management, multiuse of federal lands but just to provide the more efficient in the processes. I hardly agree on the need for local input, local engagement but how do you balance the rights of americans who live across the country, the other 49 states who owned that land and have their rights represented by federal agencies . That is a big question to answer. One thing i would point out is federally managed to land, the preponderance of those lands are different across the country. 70 , go to alaska it is even higher. We are limited in our ability to create revenue across the federally managed lands, a condition that doesnt exist in all states across the country so i think we have to take that into consideration as well. Lands were federally owned at the time utah was admitted as a state. Alaska too. Thank you, i yield back. Also multiple use limiting the dictations of public lands that are very different. Absolutely. Ms. Nelson, if you have the right to be able to do what you are suggesting it would still be absolutely you as well wouldnt it . Absolutely. We saw the responsible Energy Development because you we are doing it in and environmentally sensitive way. It was interested when i was reading your testimony ms. Mcgregor. Talking about some of the planning for americas future act which enumerates all of the above. The chairman has a bill for streamlining some of what we are seeing. We are seeing now multiple use, not just traditional fuel sources but also i believe he noted some of the nontraditional sources being developed on the public land as well. I do find it interesting listening to some of the comments from colleagues, the Ranking Members talking about multiple use on the land. If you please, 5000 acres, did they put up a big fence so nobody can hike, hunt, fish on those lands . Not to my knowledge. So there is still multiple use even though we have a responsible check for. Yes, sir. I think some of my colleagues sitting here today are witnesses that can speak more to the technologies that are available from this to get extended reach drilling and minimize impact to surface acreage. Maybe you would like to be able to speak today doctor as well in terms of lessening the impact. My friend from colorado was talking about lessening the impact. Have we developed technologies to not only be able to responsibly access resources but to be able to minimize the impact on public land . Yes. The same technologies that really have led to the oil and natural gas revolution that we have today. Significantly limit service impact. In fact, utah is currently looking at how it applies the rules for horizontal drilling to ensure we have all of those same Environmental Standards in place. What we are seeing is absolutely fewer drilling rigs required and fewer paths being developed for drilling as a result of these technologies. I appreciate that. And i have an opportunity to be in colorado and we were looking up onto blm land. And they said we have a lease and i said when he planning to drill . And they said we are ready are but it is from one pad. No Service Development going on and still be able to responsibly develop that resource. Ms. Mcgregor, maybe on a different topic here, going to the Master Leasing Programs. Essentially, that is viewed to be able to intend to address the specific conflicts prior to leasing and drilling. Would you maybe describe this . What i can say sir, in the wake of the United States Congress Making a determination and passing legislation to throwback the regulation we are taking on an indepth look at the planning process. Because whatever product members have on either side of the aisle the planning process at the Department Takes on average 5 to 7 years, often more. So as we look at planning in the department and consider how we can do things more efficiently, we are evaluating whether the Master Leasing Program is an added step on top of an existing planning process. Does it actually increase efficiencies or is it another step . When looking at that as well as many other issues. And i was little encouraged because that is one thing we have heard a number of our constituents in terms of terms of the different time frames. We have regulations mr. Chairman, that i believe we will be able to streamline those regulations. Look at the overlap and to be able to do it in a responsible way could i appreciate all of you taking the time to be here. My time is expired. Thank you. You are recognized. Thank you. I would like to clarify. The contribution of federal land to the overall Energy Production, particularly in the oil and gas portfolio. It is my understanding that we have seen a reduction and i want to be clear what im saying. In the percentage of oil and gas that our federal lands were provided to the Overall Energy Domestic Energy production. Is that your understanding for example in the last several years . Specifically in fiscal year 16 we did see a down take and natural gas and Oil Production. I think im looking at the memo here for the committee between fiscal year 2010 and 2015. Federal production fell to 21 percent of total production. Number two, again, i just want to make sure i am getting this right. Making reference to the memo at the end of fiscal year 2016 they oversaw a total of 20,143 leases across the country. This is the lowest number of federal leases since fiscal year 1985. Is that your understanding . That is correct. Thank you. Mr. Flynn, changing gears a little bit. Can you comment or respond perhaps to comments ive heard in the past about folks staying with federal land that is something all americans should enjoy therefore states that post Energy Production of federal land should not benefit from the revenue sharing formula . Mr. Chair, representative, i think they said are burdened with the production should absolutely be deriving benefits from that and in all honesty, everyone should be part of the debate i think people who are living closest to the activity should have the loudest voice. And moving forward. I think from an industry perspective, we wholeheartedly respect and work collaboratively with the communities we operate in. So the communities that host and those that are closest should have the biggest voice and should share in the revenues . Is that accurate . Restating what you said. Yes. Number two, the United States benefits i think to the tune of 10 percent from the think that is an appropriate return for the federal government . Mr. Chair, is not really not my place to determine that. I will leave it up to you to figure that out. Make sure youre getting a fair share on the investment. Doctor nelsons you care to comment on that same question . I think i share the same sentiment as mr. Flynn. I guess the one thing i would add is that in states are heavily burdened with federal land, and i say burdens because just often the Economic Opportunities are limited because of those lands that consideration needs to be given to how royalties are assigned to states that have other, more limited Economic Opportunities. You also have benefit from tourism and other things as a result of National Parks and other by the way, as i understand those National Parks the investment goes back into maintain the resources. So ms. Mcgregor, can i ask you a question . I think that mr. Flynn and doctor nelson is made very convincing comments about the relationship between production and revenue sharing. Can you help me understand or distinguish between offshore production and onshore . The distinction between just apply mr. Flynns comment about proximity and hosting and the loudest voice. Should offshore states, should they be treated in a desperate manner . I think i know we are going with this congressman. [laughter] pretty sure you recognized it about five minutes ago. Federal revenues are absolutely, federal revenues from natural gas are absolutely critical to the budget. In so many different ways they lend themselves to various initiatives throughout the government. I believe also with the land and Water Conservation Fund Acquisition of federal land as well. Are there states benefiting more off the coast of louisiana than actually the state of louisiana . I the entire United States benefits from offshore Energy Production. And other states disproportionately benefit from it. I cannot. Guest that. As a result of land and water tough choices were made in this budget but this is what a balanced budget look like. I am aware revenue sharing is important to coastal restoration, and a variety of activities in the state of louisiana. We are committed to under our state you are sitting there smiling because that red light is on. In the commonwealth of virginia i have more to talk about but i want to thank you all for your consideration. I yield back. And the woman from wyoming is our final witness. Thank you. I would like to thank all of you for being here today. In particular ms. Mcgregor. I cannot tell you how refreshing it is to have somebody who is an executive branch who has clearly got such a Firm Understanding of these issues and to hear, to know that you have been looking at the challenges we are facing. That is very appreciated. As you well know, we have spent a large part of the last eight years and beyond dealing with the real disconnect between washington and the policies that were made here and what is happening on the ground. I wanted to ask if you could continue a little bit in terms of the question that mr. Soto asked when you cut off. And that is that i appreciate hearing both from you today about the steps being taken to deal with the backlog of apds. But can you talk about in terms of the field offices as you look at the electronic permitting process, and these internetbased solutions could how is that translating on the ground . What steps will also include perhaps moving people in wyoming in particular, i know we shifted folks. But we really appreciate the change in policy but have yet to see a real you know, breaking of the backlog. Could you talk more specifically about on the ground how this will affect the movement of apds . Absolutely. Getting out there was so helpful. To see what our folks in with the state is doing to keep wyoming, you know, wyoming is an Energy Powerhouse and we want to see it stay that way. But we recognize we need to work better with state and local partners to make sure that we are reducing time frames when it comes to the permitting backlog and dealing with a variety of different processes. The processes we deal with that managed the land supporting your state and local communities. When it comes to staffing, i think you know, that is part of the recipe to dealing with some of this. Blm wide we have 325 people working on permitting across all of blm offices. But they are currently 90 vacancies. What we are doing in accordance with the secretarys priorities, when it comes to Energy Exploration production on federal lands, we are looking right now at our top five busiest offices and one of those is casper. Casper i think is perhaps closest to number one. And we are recruiting right now to fill vacancies that are needed. To make sure that we are getting staffing out to the front lines. Again, which is another one of the secretaries priorities. We are trying to hire out where we need the individuals to get through this workload. And you know, i find the worker to be inspiring. Because that means, that is just good news for the people of wyoming and for the entire country. But we also recognize that permits, when folks talk about permits not being used, they do expire after two years. We do receive a 9500 fee for every single permit filed. We are looking to make sure the resources stay where they are needed. And that we have some mobility within field offices so that if we are doing things online, maybe buffalo folks who might not be as busy can help folks in casper or maybe we could grow that two more nationwide movement so that folks dont have to fly in just to help fix backlogs. And we can be more nimble to the variety of development that occurs in accordance with economics and geology of a different area. Dinky. In terms of a related issue, the planning process. You know, i was very pleased that we were able to pass a repeal of planning 2. 0 and have the president sign it. Could you talk a bit more about how that planning process is going to be focused on ensuring we get more local voices into the whole land use management process as well . Absolutely. Another priority of the secretary is restoring trust. Especially in the west. For state and local communities that we have to work with day in and day out because they actually feel the brunt of the choices made in washington on lands in the west. You know, the planning 2. 0 process aimed to do a lot of things. But did reduce some of the time frames for those communities to have Public Comment. So, i think from the get go we are going to work with our state and local communities. Get their feedback on how we can they clearly will have thoughts and how we can improve our federal planning process. We are also asking our team to think broadly and to think different. And come up with bold new ideas that we can take and get help with other federal partners to make things happen a little more quickly. I am hoping that we can be successful here because frankly, having a planning process that takes 5 to 7 years and in some cases there are examples of much more, that is not a workable solution for anyone. We need to be better at working with these communities so we can get these leases up and have them land managed better. Thank you very much. I thank you for bring up that there are plenty of vacancies that need to be filled in order to do the work property. We need to get a notice to our Senate Colleagues to get those confirmed and felt. I thank the witnesses for their valuable testimony and members for their questions. Members of the committee may have additional questions for the witnesses and will ask you to respond to those in writing. On the Committee Members must submit questions three Business Days after the hearing. This will be held for 10 days for responses. If there is no further business. Without objection the subcommittee stands adjourned. Thank you. [inaudible conversations]. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] this afternoon on cspan2, a conversation about Charter Schools and developing countries. With the Liberian Education minister in his countrys experiment with Charter Schools. That is of the American Enterprise institute live at 4 00 p. M. Eastern. Here on cspan2. Thursday at 7 00 p. M. Eastern, joint American History tv. For a live tour of the museum of the American Revolution in philadelphia. Museums president and ceo Michael Quinn and collections and exhibitions Vice President , scott stevenson, will introduce artifacts and exhibits throughout the museum. Including George Washingtons war tent and a piece of the old northbridge from the battle of concord. Hear stories about the American Revolution and participate in the live program with your phone calls and tweets. Watch American History t. V. Live from the history of the American Revolution museum. On cspan3. President trump this morning departed washington for europe. First he will go trs