FINWIRES · TerminalLIVE
FINWIRES

US Weighs Opening Utah's Ouray Wildlife Refuge to Oil, Gas Leasing

By

The US Department of the Interior's Bureau of Land Management is weighing a proposal to allow oil and gas leasing on about 5,200 acres of federal mineral estate beneath Utah's Ouray National Wildlife Refuge near Vernal, the agency said in a statement Wednesday.

The BLM intends to prepare a Resource Management Plan Amendment and associated environmental assessment to the Vernal Resource Management Plan, and has opened a 30-day public scoping period to gather comments on the proposal, according to a Federal Register notice set to publish Thursday.

The planning area lies in Uintah County, where the US Fish and Wildlife Service manages the surface acreage as part of the refuge.

The agency is weighing two preliminary alternatives, a "No Action Alternative" to keep the refuge closed to leasing and a "Proposed Action" that would open the underlying minerals to leasing subject to a no-surface-occupancy stipulation.

Under that restriction, any lease development would have to be carried out through directional or horizontal drilling from well pads outside the refuge boundary, according to the notice.

The BLM said it identified seven preliminary issues for analysis in the planning process and is inviting public comment on the planning criteria.

The process will also address potential effects on threatened and endangered species and cultural resources under the Endangered Species Act and the National Historic Preservation Act, the notice said.

The agency cited the National Environmental Policy Act of 1969 and the Federal Land Policy and Management Act of 1976, along with the Mineral Leasing Act, as part of its planning framework.

The BLM said the effort aligns with Secretary's Order 3418, which supports President Donald Trump's executive order "Unleashing American Energy," aimed at expanding energy exploration and production on federal lands.

Comments on the proposal and planning criteria will be accepted until Oct. 5, 2026, according to the BLM.

The BLM will also hold a public meeting scheduled for 5-7 p.m. on Sep. 22 at the Vernal Field Office, according to BLM's statement.

The BLM said oil and gas development on its managed lands in Utah provides the state a $3 billion economic boost, with BLM oil and gas activity nationwide contributing an additional $177 billion to the US economy.

Bloomberg reported Wednesday that the existing Vernal Resource Management Plan, completed in 2008, currently bars all oil and gas access beneath the refuge, reversing restrictions last affirmed under the George W. Bush administration.

The Trump administration has also opened Alaska's Arctic National Wildlife Refuge to drilling, exempted offshore oil development in the Gulf of Mexico from the Endangered Species Act, and reduced royalty rates, air quality controls and other environmental safeguards, according to Bloomberg.

Related Articles

Commodities

Market Chatter: Refineries to Maintain East Texas Output as Tropical Storm Edouard Nears

As Tropical Storm Edouard approaches the US Gulf Coast, Motiva, Exxon Mobil (XOM) and TotalEnergies (TTE) plan to maintain scheduled production at their East Texas refineries, Reuters reported Tuesday, citing people familiar with operations.Exxon Mobil's Beaumont and TotalEnergies' Port Arthur refineries sent contractors home Tuesday, while maintaining normal staffing levels among their own employees, the sources said.Motiva, Exxon Mobil and TotalEnergies did not immediately reply to' request for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

$TTE$XOM
Commodities

US Natural Gas Update: Futures Rebound in Late Trade on Hotter Weather, Stronger LNG Demand

US natural gas prices rebounded in after-hours trade into positive territory on Tuesday as weather forecasts called for hotter-than-normal temperatures through the first half of September and restored LNG feedgas demand after the conclusion of maintenance at export facilities.The front-month Henry Hub price and the continuous contract both rose by 0.37% to $2.946 per million British thermal units.The October 2026 contract slipped 3 cents to settle at $2.90/MMBtu on Tuesday, Pinebrook Energy Advisors' Energy Buyers' Guide said. It said prices rebounded later on revised forecasts predicting widespread above-normal temperatures over the next several days. That should keep power-generation demand elevated and limit storage injections in the near term, it said.NatGasWeather.com said it was calling for very strong demand over the next seven days. It said the southern and eastern US will be hot to very hot, w/highs in the 90s to 100s degrees Fahrenheit, including many major East Coast cities.However, Vaisala predicted temperatures would fall below normal in the populous Northeast at the beginning of this weekend, Barchart said.High temperatures last week kept power burn at a high level. Celsius Energy reported that the average powerburn for the week ended Aug. 30 was 46.3 Bcf/d, 3.8 Bcf/d above the same period a year ago.Meanwhile, production remains quite ample. BNEF put US production on Tuesday at 114 Bcf/d, up 5.5% over the same day last year. Trading Economics said average output in the Lower 48 states reached about 111.5 Bcf/d in August, surpassing July's record of 110.7 Bcf/d.Gelber & Associates said Energy Transfer's Hugh Brinson Pipeline is set to reach its full Phase I capacity on Tuesday. The new system adds 1.5 Bcf/d of Permian takeaway capacity, relieving constraints around Waha and allowing more West Texas supply to reach demand centers and downstream markets across Texas.That increase in deliverability is being treated as an immediate loosening of the broader supply picture, particularly as additional Permian volumes can now move toward Katy, Carthage, and the Gulf Coast.On the export side, NatGasWeather.com said LNG exports have been soft all summer and near to under 18 Bcf most days and aided by Freeport LNG partially offline due to maintenance. But LNG is stronger the past several days and back to near or over 19 Bcf/day as Freeport returns to full service. Stronger LNG aided gains Monday, although natural gas prices are a few cents lower today. Barchart, citing BNEF, said LNG feedgas demand for Tuesday hit 19.5 Bcf/d, up 12% over this time last week.

Commodities

US Power Update: Power Prices Mostly Higher; Natural Gas Holds Largest Generation Share

US wholesale electricity markets were mostly higher on Tuesday afternoon, with Midcontinent Independent System Operator's intraday prices reaching $585.46 per megawatt-hour, according to data from GridStatus.io.Electric Reliability Council of Texas' real-time locational marginal price stood at $28.27/MWh at 4 p.m. ET. Net load reached 49.04 gigawatts, with natural gas making up the largest share of the generation mix at 42.1%.California Independent System Operator's real-time LMP came in at $15.46/MWh at 4 p.m. ET. Net load was negative 0.5 GW, with solar making up the largest share of the generation mix at 71.3%.Southwest Power Pool's real-time LMP was $60.16/MWh at 4 p.m. ET. Net load reached 45.88 GW, while natural gas accounted for the largest portion of the generation mix at 41.4%. Prices reached an intraday peak of $471.67/MWh at 1:50 p.m. ET.PJM's real-time LMP came to $259.89/MWh at 4 p.m. ET. Net load stood at 136.58 GW, with gas representing the largest share of the generation mix at 45.2%. Prices rose to an intraday high of $519.47/MWh at 4:40 p.m. ET.MISO's real-time LMP was $132.63/MWh at 4 p.m. ET. Net load came in at 99.74 GW, with natural gas making up the largest share of the generation mix at 36.3%. Prices climbed to $585.46/MWh at 2:50 p.m. ET.New York Independent System Operator's real-time LMP stood at $35.84/MWh at 4 p.m. ET. Net load reached 21.89 GW, while dual-fuel sources accounted for the largest share of the generation mix at 33.9%.New England Independent System Operator's real-time LMP came in at $37.16/MWh at 4 p.m. ET. Net load was 13.14 GW, with natural gas accounting for the largest share of the generation mix at 52.3%.Independent Electricity System Operator's real-time LMP stood at $47.21/MWh at 4 p.m. ET. Net load reached 20.95 GW, with nuclear providing the largest share of the generation mix at 41.5% at 3:55 p.m. ET.The National Weather Service's Climate Prediction Center forecasts temperatures to remain above normal across much of the central and eastern US from Sept. 9 to Sept. 15, with near-normal readings across parts of the West.