Subcommittee, this is about an hour and 50 minutes. The subcommittee on energy and Mineral Resources will come to order. The subcommittee is meeting today to hear testimony on examining access to oil and Gas Development on federal lands. I ask unanimous consent that the gentleman from arkansas and mr. Westerman be able to sit with the subcommittee. That objection so ordered. This will allow us to hear from our witnesses sooner and help members keep to their schedules. Therefore i ask unanimous consent that all other members Opening Statements be made part of the hearing record if they are submit today the subcommittee clerk by 5 00 p. M. Today. With that objection so ordered. And i ask there not be any type of disruption regarding the testimony given here today. It is important that we respect the decorum and rules of the committee of the house and to allow the members of the public to hear our proceedings. Today the subcommittee will exam access to oil and gas. Our subcommittee is holding a hearing in several weeks about offshore developments. Federal mineral estates are owned by all americans. And the bureau of management is obligated to responsibly manage and develop these resources. Onshore gas and oil accounts are roughly 20 of the Oil Production and integral to our nations security. Due in large part to the overwhelming administrative burdens of the federal Mineral Development process. Not only has the administration inherited a backlog of 3,000 drill applications but an incredible burdensome legeratory scheme that discourages investment and development. It is critical we develop these obstacles to assess and insure a fair return to the American People. There are many factors that influence an operators decision to release hidrocaydrocarbons. Market conditions are no excuse for poor policies or for the federal government failing to up hold its statutory obligations. In fact many operators avoid federal lands due to quantifiable risk and uncertainty with producing a schematic. The current federal oil and gas leasing and Committee Process are fraught with uncertainty, dupeication, and delay. It can take years and parcels nominated for release were explicitly retracted from the auction. This requirement has not been enforced for years. Furthermore, once an operator has successfully navigated the federal leasing scheme, the leasing must still proceed through the application for permit to drill or apb process, which could setback drilling for over a year. It makes operational and Financial Planning nearly impossible and is a development to the locality, state and the American People. Despite the complications and inefficiencies of leasing under the Previous Administration, we are confident the new administration will take the time to optimize. He shared some of steps hes taken to recommit in up holding its mission. In addition to increasing program folding, hes committed to increase program performance. We look forward to performing Practical Solutions that optimize a responsible developmental process. With that i now recognize the Ranking Member for his statements. Thank you. Thank you, mr. Chairman. First, i want to compliment you and all the members on both sides of the aisle of this committee. Theyve been bipartisan, cooperative. Theyve been instructive. And today i think its going to be a lurlt bit contentious, but i hope that doesnt i do oppose letting oil and gas industry call all the shots on how to manage those lands that are owned by all americans. You know in all of the above policy does not mean we dont set priorities. And i am concerned about our priorities. Its only taken five months and nearly every move on energy this administration has made could have come right outofthe executive boardrooms of the Petroleum Institute or the National Mining association. And that may actually be the case that now occupy high ranking positions at 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 on 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 did the Obama Administration put it in place and did one oil and gas or coal company complain about it . If so, its gone. In no place is it important to balance as well as Economic Development than on American Public lands. But this idea of balance, this idea that some areas should be protected while others can we developed is at least endangered now and soon that could be gone too. To quote the acting assistant secretary to help the free markets help determine when and where Energy Development on public lands is feasible. That means the idea these lands, which belong to all americans, should be managed in a way that ensure they are here for our children and our grandchildren. That idea is now gone. Instead the administration is operating under the idea that the department of the interior should become a service station for the oil and gas industry. Which lands would you like to lease . Where and how was do you want to drill . What regulations do you want us to repeal . Are these National Monuments getting in your way . Just let us know. The department of interior is apparently here to keep you happy. Secretary zincy paid lip service 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 suffer a 16. 3 million cut. Weve seen this movie before. Weve seen an administration where an Energy Policy was literally written by big oil. During the eight years of the Bush Administration the only measure of success was how many drilling permits it could issue. But what did we get interior Department Officials thrown in jail, regulators doing drugs and literally getting into bed with people they should have been regulating and a thirst that put Safety Standards on a back burner according to the president ial oil spill commission. When it comes to giving the keys to our public lands, to our oil and gas industry, President Trump has made the Bush Administration look look, the fact is oil and Gas Companies are doing just fine in our public lands and in our oceans. Despite the misleading statistics theyre going to throw around today. Kind of complete with that that Oil Statistics is up 59 since 2008. Offshore production is at a record high. Companies have more than 7500 approved drilling permits theyre not using and 26 million acres of public land under lease to be developed. Shows you from i believe its the year what, 2008 right through 2015, the federal onshore Oil Production and how its increased every single year up to 2015. And 2016 was slightly below 15 was above all the other years. So in kind of closing, i just want to say our new quest for Energy Dominance, whatever that means, means that never is nothing is enough. We must do more. Hunting, fishing, hiking, camping, boating, offroading, razing, all the use of our public lands are now second class. Oil and gas are dominant. Now, chairman, we have an opportunity in this subkmitdy to ensure the oil and energies reflect the use of public lands for all of our constitchiants not just for the interest of a few billionaires. I understand your desire and you sent out a few days ago the title of this hearing would be focusing on onshore, and i will try to abide by that. However, the title of the hearing was really called examining access to oil and Gas Development on federal lands. And as you know our outer continental shell is really defined as submerge said lands lying seaward of coastline. And ms. Mcgregor is responsible for over seeing offshore and onshore, so there may be some questions coming up. So just letting you know that so you understand. I thank you for that. I want to get to the acting secretary of minerals and Land Development of the u. S. Department of interior. And now im going to yield the man from the department of mexico. I want to introduce the new mexico oil and Gas Association. As director of that hes watched our permitting times increase from around 200 land days to get a permit to something over 400. And he was formerly the secretary of new Mexico Environmental Department where he has a strong reputation for balancing Energy Developments and responsible environmental stewardship. Ryan, appreciate you being here to testify today. Yield back. Thank the gentleman. Our next witness is mr. Mark, the professor of law, governor nelson, utahs energy of office of energy and development. And we want to remind the witnesses they must limit their statements to five minutes. But their entire statement will be applied to the hearing document. I will let the entire panel testify before we ask questions. And now what i do is well recognize ms. Mcgregor for her testimony. Welcome back. Thank you, chairman bisp, chairman gosol, members of the chair committee. My name is Kate Mcgregor and im currently serving as the acting secretary for the energy and Land Development. The bureau of Ocean Energy Management, the bureau of safety enforcement and the bureau of Land Management. I appreciate the opportunity to testify on the oil and gas program, which plays a Critical Role in our Nations Energy economy. The bom manages 200 surface acres and including alaska. Production on managed lands can are 7 of the nations on shore oil, 10 of natural gas and 41 of coal produced domestically as well as approximately 18 megawatts of renewable until. Last year the bom oil and gas energy generated 1. 56 billion in royalties, bonus payments and bonus bids, all of which were shared with states. States and counties used these funds for roads, schools and municipal needs. Public lands are integral to the administrations America FirstEnergy Agenda and the secretarys priority to maintain dominance and generating revenue and creating and sustaining jobs throughout our country. Access to responsible Energy Development on these lands begins with the planning and leasing process. Ten years ago the blm had nearly 45 million acres under oil and gas lease. Today were at 27 million acres. This is nearly identical to the total area currently designate it as areas of critical environmental concern, also known as acecs which stand add over 24 million acres. This is nearly 10 of all blm managed lands in the United States. In 2016 the blm designated 8. 2 million acres, the most acec acreage since 1980. This is one example of designations that limit how public lands may be used. Responsible Energy Production and conservation need not be mutual reply exclusive. That is why it is vitally important, secretary zenke, to restore our multiple use mission and strike the appropriate balance in on shore leasing that allows for job creation in rural america. This is about restoring balance. Under secretary zenkes leadership the department and the blm has been proactive in prioritizing responsible Energy Production on public land including by secretarial order. Order 3349 aims to remove burdens on Energy Production while promoting job growth for working american families. And the National Petroleum preserve alaska helping to unleash alaskas Energy Potential and increase input in the trans alas can pipeline. Under secretary zinkes leadership the blm has had more sales, offered more acreage and generated more revenue in the First Six Months of 2017 than the same time last year and were just getting started. The blm plans to hold 14 additional lease sales this year. Still promoting access to public lands does not come without its challenges. Im sure all members of this committee are in close contact with state and local leaders who do not hesitate to communicate their frustration. It is the secretarys goal to restore trust and improve relationships with our state and local partners. Many of whom rely upon the Economic Activity and revenues that come from responsible oil and Gas Production on public lands in the west. For example, the u. S. Census burro found that rural new mexico has one of the highest poverty rates in the country, yet rural new mexico is also home to some of the most Promising Oil and natural gas deposits in the entire world. These resources are tremendous source of jobs, Economic Growth and revenue for these rural communities. This is why the Administration Remains committed to promoting responsible oil and Gas Production that creates jobs, promotes robust economy and contribute to Americas Energy security. There are multitude of factors that affect access to federal oil and Gas Resources, and the department and the blm are reviewing all of these and taking action where possible to encourage Development Opportunities and improve efficiencies without cutting corners on our duty to ensure that these activities are done in a smart and environmentally responsible way. Thank you for the opportunity to testify today, and i will be happy to answer any questions. Thank you, ms. Mcgregor. I now remember mr. Phin for his five minutes. Thank you. Thank you, chairman gosar, chairman bishop, Ranking Member lowenthal, and staff. My name is ryan flynn, executive director for oil and Gas Association of new mexico. Prior to taking over, i was the secretary of environment and Natural Resource trustee in the state of new mexico and worked in State Government for approximately six years, almost six years. Prior to taking this role. I want to thank representative pierce for recognizing me. I want to recognize representative pierce as well, who just had to step out of the room, but he has been a tremendous leader in his district, his home to one of the most resilient and productive oil and gas plays in the world, the great Permian Basin. I want to talk to you a little about new mexicos oil and gas industry and talk to you about challenges to oil and Gas Development on federal land in new mexico and suggest some opportunities for improving blms operations in new mexico. I want to be very clear that my goal here today is not in any way, shape or form to criticize blm individually. We have had a tremendous working relationship with blm staff and leadership and we look forward to continuing that working relationship moving forward. Like any large agency, there are several opportunities for improvement and i believe secretary zenke has inherited a difficult situation but he is more than capable and up to the task for turning things around in a positive direction. New mexicos oil and gas industry is the most important economic industry to the state of new mexico. Last year in 2016 new mexicos oil and gas industry contributed 1. 6 billion to the states general fund, our budget. That equalled roughly 25. 8 of the budget last year in 2016, the total budget was about 6. 2 billion. In the last 10 years oil and gas typically contributes about a third directly to the states general fund. This money goes directly to roads, hospitals, schools, who are that infrastructure in the state would not be possible without the oil and gas industrys contribution. Our industry also employees over 100,000 people in the state of new mexico, a state with about 1. 8 million people. New mexico also 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, even the average wage on the oil and gas rig is about 75,000 a year. Nationally new mexico is one of the top Energy Producing states in the country, ranking fifth in crude Oil Production and eighth in natural Gas Production. Even during a prolonged period of low prices, new mexicos oil and gas industry remained resilient. In the last eight months we have seen major acquisitions and purchases in new mexico totaling over 13 billion. The new mex