Pub. 2 2020-2021 Issue 2

Untangling the Impacts of the Biden Administration Actions on Oil and Gas A s you have doubtless heard, the Biden administration has been hurriedly progressing their policy agenda, starting on day one with the Department of Interior Order 3395 and swif tly following with an Executive Order from the president himself on tackling the climate crisis at home and abroad . While we share in the mission to set forth a sustainable vision for future generations, we clearly have a dif ferent definition of “sustainable.” Let ’s unpack what these actions mean for Utah. DOI Order 3395 • 60-day suspension of delegated authority for anyone other than nine individuals in D.C. to approve: ◦ New oil, gas, mining approvals ◦ Resource management plans ◦ Right of ways ◦ National Environmental Policy Act approvals ◦ RS2477 road decisions Executive Order “Tackling the Climate Crisis at Home and Abroad” • Open-ended ban on new federal natural gas and oil leasing • Comprehensive review and reconsideration of Federal fossil fuel permit- ting and leasing practices — consideration of greenhouse gas emissions and climate change • Increasing royalties associated with coal, oil, and gas • Accounting for climate costs • Carbon pollution-free electricity sector no later than 2035 • Conserving at least 30% of our lands and waters by 2030 Let ’s start with some basics — Utah is ninth in the nation in oil production, 13th in natural gas, seventh for non-fuel mineral production, and 11th in coal. This wealth of resources and local decision-making on our energy mix has allowed our natural resource industries to be the backbone powering our state’s economic development. Utah enjoys stable and low-cost energy, which lured the I.T. sector to establish Silicone Slopes and is driving our position as the fourth fastest-growing state in the U.S. . If the Biden policies stand, we risk losing that backbone and the resulting momentum to continue to successfully grow our state. These policies impact every single Utahn, but they disproportionately impact rural Utah. Roughly two-thirds of the state of Utah is federal lands, most of that located in rural Utah. Locally produced oil and natural gas are critical drivers of our economy, with 56% of our wells located on federal lands. Coupled with the fact that the oil and gas industry provides some of the highest-paying jobs Continued on page 8 7 UP DATE