BLM’s policy identifies four key practices that should be considered as  lease or permit requirements in nearly all circumstances: (1) painting of  facilities to blend with the surrounding environment, (2) design and  construction of roads in accordance with BLM guidance, (3) interim  reclamation, and (4) final reclamation. In August  2013, we reviewed BLM’s processing of drilling permit applications and  other efforts to protect the environment. The Extent to Which BLM Approves Exception Requests Is Unknown, and BLM Field Office Processes for Considering These Requests and Documenting Decisions Vary

The extent to which BLM approves requests for exceptions to  environmentally related lease and permit requirements is unknown  because BLM does not have comprehensive or consistent data on these  requests. The Extent to Which BLM Approves Requests for Exceptions to Lease and Permit Requirements Is Unknown

BLM does not have consistent data on requests for exceptions to lease  and permit requirements. These officials further stated that BLM does not have a policy  requiring its field offices to consistently track these exception data. BLM Field Office Processes for Considering Exception Requests and Documenting Decisions Vary

BLM field office processes for considering exception requests and  documenting decisions on them varied from fiscal years 2009 through  2015, and the reasons for the decisions were not always clear from the  documentation. BLM Consistently Involved the Public in Developing Lease Requirements

In 2010, BLM introduced bureau-wide reforms to the oil and gas leasing  process, and since the implementation of these changes, it has  consistently involved the public in the development of lease requirements,  as part of the lease sale process. We reviewed 35 lease sales that occurred from calendar years 2012  through 2015 at the 6 field offices we visited. In all cases the field offices  provided the public with an opportunity to review and comment on the  environmental assessment associated with parcels to be offered for sale,  and some of the comments provided by the public pertained to proposed  lease requirements. According to BLM’s policy, public notification is not required  unless granting an exception would result in a substantial modification or  waiver of a lease requirement. BLM Has Generally Implemented Its Best Management Practices Policy but Has Not Consistently Documented Inspections or Used Data to Assess the Policy’s Effectiveness

BLM has generally implemented its best management practices policy by  including key practices as permit requirements. Our review of 109  randomly selected well files at six BLM field offices found that at least one  of the four key practices had been included as a permit requirement in  nearly all of the files we reviewed. Our file review found that the narrative format, in some cases, resulted in  inspection documents that did not contain sufficient detail to indicate  whether permit requirements had been verified. In addition, without a policy requiring employees responsible for  conducting environmental inspections to complete formal training, BLM  may be unable to ensure that its employees receive the training. BLM Has Not Effectively Used Monitoring Inspection Data to Assess the Effectiveness of Its Best Management Practices Policy

BLM field offices conduct monitoring inspections but have not effectively  used data collected during these inspections to assess the effectiveness  of mitigation activities, such as those carried out under BLM’s best  management practices policy. Conclusions

BLM is responsible for managing oil and gas development on federal  lands while also mitigating the environmental impacts of such  development. Operators can request exceptions to these requirements,  and BLM can decide to approve requests if certain criteria are met. Additionally, BLM staff across field offices are not  using a consistent process for considering and clearly documenting  exception decisions. Develop a policy to ensure that field offices consistently track exception data. Appendix I: Objectives, Scope, and Methodology

This appendix details the methods we used to assess the Department of  the Interior’s Bureau of Land Management’s (BLM) efforts to mitigate  environmental impacts from oil and gas activities. Specifically, this report  examines the extent to which BLM (1) approved requests for exceptions  from lease and permit requirements intended to mitigate environmental  impacts, and how these decisions were made and documented; (2)  involved the public in the development of lease and permit requirements  and in the approval of exception requests; and (3) implemented its best  management practices policy and assessed its effectiveness in mitigating  environmental impacts.
Why GAO Did This Study

BLM is responsible for managing oil and gas development on federal lands while mitigating related environmental impacts. BLM seeks to do so, in part, by applying requirements to the leases and drilling permits it issues to operators. These requirements may include environmental mitigation practices outlined in BLM's best management practices policy. In some cases, operators may request exceptions to lease and permit requirements. GAO was asked to examine BLM's efforts to mitigate environmental impacts from oil and gas development.
This report examines the extent to which BLM (1) approved requests for exceptions to lease and permit requirements and how these decisions were made and documented, (2) involved the public in the development of lease and permit requirements and in the approval of exception requests, and (3) implemented and assessed the effectiveness of its best management practices policy. GAO examined laws, regulations, and BLM policies and documents; surveyed and visited BLM field offices; and conducted interviews with BLM officials and other stakeholders.

What GAO Found

The extent to which the Bureau of Land Management (BLM) approved requests for exceptions to oil and gas lease and permit requirements is unknown, primarily because BLM's process for considering these requests and documenting decisions varied across field offices. Oil and gas operators may request exceptions to a permit requirement, such as prohibition of drilling in an area during times of the year when certain wildlife are present. BLM may approve such a request—allowing the operator to continue to drill during a portion of the normally prohibited time—if, for instance, no wildlife are present. GAO's survey of 42 BLM offices found that fewer than half tracked data on exception requests. Additionally, GAO found that the process for considering these requests and documenting decisions varied. BLM does not have a policy requiring field offices to consistently track exception data or documented procedures specifying how requests should be considered and documented. Because BLM does not consistently track exception request data or have a consistent process for considering requests and clearly documenting decisions, BLM may be unable to provide reasonable assurance that it is meeting its environmental responsibilities.
BLM has consistently involved the public in developing lease requirements and, to a lesser extent, permit requirements. For example, GAO reviewed 35 lease sales that occurred from calendar years 2012 through 2015 at the six field offices visited and found that in all cases the field offices provided the public an opportunity to review and comment on lease parcels to be offered for sale. BLM has not generally involved the public in the approval of exception requests. According to BLM's policy, public notification of an exception is not required unless granting it would result in a substantial modification or waiver of a lease requirement, which, according to BLM officials, rarely occurs.
BLM has generally implemented its best management practices policy by including key practices as permit requirements, but it has not consistently documented inspections or used inspection data to assess the policy's effectiveness. The policy identifies four key practices that should be considered for inclusion as permit requirements in nearly all circumstances: (1) painting facilities to blend with the environment, (2) constructing roads to certain BLM standards, (3) implementing interim reclamation, and (4) completing final reclamation. During file reviews at six BLM field offices, GAO found that at least one of the four key practices was included as a permit requirement in almost all of the 109 files reviewed. However, in reviewing documentation of inspections, GAO found that documents were not consistent and not always sufficient to determine whether BLM had verified key practices. GAO further found that BLM generally does not use data collected from inspections to assess the effectiveness of permit requirements in mitigating environmental impacts. BLM does not have guidance specifying how inspections should be documented and how inspection data should be used. Without sufficiently detailed documentation of inspections and effective use of data from inspections, BLM is unable to fully assess the effectiveness of its best management practices policy to mitigate environmental impacts.

What GAO Recommends

GAO is making six recommendations, including that BLM develop a policy for tracking and documenting exceptions. Interior generally concurred with GAO's recommendations.