U.S. Fish and Wildlife Service
Opportunities Remain to Improve Oversight and Management of Oil and Gas Activities on National Wildlife Refuges
Gao ID: GAO-07-829R June 29, 2007
The mission of the Department of the Interior's (DOI) Fish and Wildlife Service (FWS) includes administering a national network of refuges for the conservation, management, and, where appropriate, restoration of fish, wildlife, and plant resources and their habitats within the United States for the benefit of present and future generations. The refuges are unique in that they are the only federal lands managed primarily for the benefit of wildlife. The refuge system's 95 million acres, which represent more than 14 percent of all federal lands and are found in every state, include land that has always been federally owned and land that has been acquired from others. While the federal government owns almost all of the surface lands in the system, in many cases it does not own the subsurface mineral rights. Subject to some restrictions, owners of subsurface mineral rights have the legal authority to explore for mineral resources such as oil and gas and to extract resources that are found. In August 2003, we reported that oil and gas activities were occurring on many wildlife refuges and that little was known about the effects of those activities on refuge resources. We also reported that FWS oversight of oil and gas activities needed improvement, in part because of uncertainties related to FWS's authority to require oil and gas operators to obtain access permits before conducting exploration and production activities. In addition, we reported that FWS guidance regarding land acquisition was unclear and potentially exposed the federal government to situations where it could unknowingly acquire contaminated land. To address these deficiencies, we made a number of recommendations that, if implemented, we believed would improve FWS's ability to protect refuge resources. On May 3, 2007, we briefed House Committee on Natural Resources staff on the extent to which FWS had taken corrective measures to address the problems that we previously identified. We reported that FWS has taken steps to implement some of our recommendations, but we believe that more action is needed. We consider all but one of the recommendations from our 2003 report to be open. This document provides further details about the findings and recommendations in our 2003 report and the status of FWS actions to implement those recommendations.
DOI stated that it partially concurred with our assessment of its progress in implementing our recommendation regarding adequate training for staff responsible for overseeing oil and gas activities. In particular, DOI disagreed that, as we wrote in the draft briefing document, the training should be required for appropriate personnel. Instead, DOI stated that voluntary enrollment was sufficient. Our intent in suggesting that training be required was to ensure that appropriate personnel attended. We accept DOI's assurances that the training has been well received and attended, and its claim that making the training mandatory at this time is not necessary. We expect that DOI would change this policy if it finds in the future that appropriate personnel are not seeking such training. Accordingly, we will close this recommendation. Additionally, DOI stated that it does not believe that our recommendation from the 2003 report that the Secretary of the Interior and the Director of FWS work with DOI's Office of the Solicitor to seek from Congress any necessary additional authority over outstanding and reserved mineral rights is necessary. DOI asserted that it is able, under its existing authorities, to effectively manage and oversee oil and gas development activities on national wildlife refuges and that it is able to do so without infringing on the private property rights of mineral owners. We appreciate DOI's belief that it can protect the public's surface interests in national wildlife refuge lands with the authority it currently has. However, we do not believe that DOI has adequate information on which to base this claim. In particular, FWS has not comprehensively assessed the extent of the damages occurring on refuge lands due to oil and gas activities and it has yet to publicly clarify the extent of its current authority over private mineral rights. We continue to believe that such information is necessary for DOI to adequately inform the Congress regarding the need for additional authority. Moreover, we believe it is for Congress, not DOI, to weigh the needs of the refuge lands and the interests of mineral owners and, ultimately, to determine what oversight authority would be appropriate. Before Congress can do so, DOI must inform the Congress as to what authority FWS might require to adequately protect refuge resources.
GAO-07-829R, U.S. Fish and Wildlife Service: Opportunities Remain to Improve Oversight and Management of Oil and Gas Activities on National Wildlife Refuges
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United States Government Accountability Office:
Washington, DC 20548:
June 29, 2007:
The Honorable Nick J. Rahall, II:
Chairman:
Committee on Natural Resources:
House of Representatives:
The Honorable Madeleine Z. Bordallo:
Chairwoman:
Subcommittee on Fisheries:
Wildlife and Oceans:
Committee on Natural Resources:
House of Representatives:
The Honorable Ron Kind:
House of Representatives:
Subject: U.S. Fish and Wildlife Service: Opportunities Remain to
Improve Oversight and Management of Oil and Gas Activities on National
Wildlife Refuges:
The mission of the Department of the Interior's Fish and Wildlife
Service (FWS) includes administering a national network of refuges for
the conservation, management, and, where appropriate, restoration of
fish, wildlife, and plant resources and their habitats within the
United States for the benefit of present and future generations. The
refuges are unique in that they are the only federal lands managed
primarily for the benefit of wildlife. The refuge system's 95 million
acres, which represent more than 14 percent of all federal lands and
are found in every state, include land that has always been federally
owned and land that has been acquired from others. While the federal
government owns almost all of the surface lands in the system, in many
cases it does not own the subsurface mineral rights. Subject to some
restrictions, owners of subsurface mineral rights have the legal
authority to explore for mineral resources such as oil and gas and to
extract resources that are found.
In August 2003, we reported that oil and gas activities were occurring
on many wildlife refuges and that little was known about the effects of
those activities on refuge resources.[Footnote 1] Specifically, we
reported that 155 of the 575 FWS-managed refuges had past or current
oil and gas exploration, production, or pipeline activities, including
over 1,800 active and 2,600 inactive oil and gas wells. While available
studies, anecdotal information, and our observations indicated that
environmental damage had occurred, FWS had not assessed the cumulative
environmental effects of oil and gas activities on refuge resources. We
also reported that FWS oversight of oil and gas activities needed
improvement, in part because of uncertainties related to FWS's
authority to require oil and gas operators to obtain access permits
before conducting exploration and production activities. In addition,
we reported that FWS guidance regarding land acquisition was unclear
and potentially exposed the federal government to situations where it
could unknowingly acquire contaminated land. To address these
deficiencies, we made a number of recommendations that, if implemented,
we believed would improve FWS's ability to protect refuge resources.
On May 3, 2007, we briefed House Committee on Natural Resources staff
on the extent to which FWS had taken corrective measures to address the
problems that we previously identified. We reported that FWS has taken
steps to implement some of our recommendations, but we believe that
more action is needed. For example, FWS has made progress in developing
a database to collect information on the nature and extent of oil and
gas activities and their effect on refuge resources. However, the
database is not yet in use and FWS has no estimate for when it will be
in place nationwide. In addition, FWS has developed an estimate of the
staffing levels needed to oversee oil and gas activities but has not
yet sought sufficient resources to fund the needed positions. And,
while FWS reported to us that it has worked with the Department of the
Interior (DOI) to determine the extent of the FWS's authority to
require permits from oil and gas operators, FWS has yet to make that
determination public. In summary, we consider all but one of the
recommendations from our 2003 report to be open.
The enclosed briefing document provides further details about the
findings and recommendations in our 2003 report and the status of FWS
actions to implement those recommendations (see enc. I). We conducted
our follow-up review from April 2007 through May 2007 in accordance
with generally accepted government auditing standards.
We provided DOI with a draft of this report and the enclosed briefing
document for review and comment. In reply, DOI commented that, in
general, it agreed with the majority of our conclusions that pertain to
FWS (see enc. II). DOI also provided additional details regarding its
actions to implement recommendations from our 2003 report. We have
incorporated these clarifications in this report as necessary.
DOI stated that it partially concurred with our assessment of its
progress in implementing our recommendation regarding adequate training
for staff responsible for overseeing oil and gas activities. In
particular, DOI disagreed that, as we wrote in the draft briefing
document, the training should be required for appropriate personnel.
Instead, DOI stated that voluntary enrollment was sufficient. Our
intent in suggesting that training be required was to ensure that
appropriate personnel attended. We accept DOI's assurances that the
training has been well received and attended, and its claim that making
the training mandatory at this time is not necessary. We expect that
DOI would change this policy if it finds in the future that appropriate
personnel are not seeking such training. Accordingly, we will close
this recommendation.
Additionally, DOI stated that it does not believe that our
recommendation from the 2003 report that the Secretary of the Interior
and the Director of FWS work with DOI's Office of the Solicitor to seek
from Congress any necessary additional authority over outstanding and
reserved mineral rights is necessary. DOI asserted that it is able,
under its existing authorities, to effectively manage and oversee oil
and gas development activities on national wildlife refuges and that it
is able to do so without infringing on the private property rights of
mineral owners.
We appreciate DOI's belief that it can protect the public's surface
interests in national wildlife refuge lands with the authority it
currently has. However, we do not believe that DOI has adequate
information on which to base this claim. In particular, FWS has not
comprehensively assessed the extent of the damages occurring on refuge
lands due to oil and gas activities and it has yet to publicly clarify
the extent of its current authority over private mineral rights. We
continue to believe that such information is necessary for DOI to
adequately inform the Congress regarding the need for additional
authority. Moreover, we believe it is for Congress, not DOI, to weigh
the needs of the refuge lands and the interests of mineral owners and,
ultimately, to determine what oversight authority would be appropriate.
Before Congress can do so, DOI must inform the Congress as to what
authority FWS might require to adequately protect refuge resources.
- - - --:
As agreed with your offices, unless you publicly announce the contents
of this report earlier, we plan no further distribution until 30 days
from the report date. At that time, copies of this report will be sent
to interested congressional committees and the Secretary of the
Interior. We will also make copies available to others upon request. In
addition, this report will be available at no charge on the GAO Web
site at [hyperlink, http://www/gao/gov].
If you or your staffs have any questions, please contact me on (202)
512-3841 or at nazzaror@gao.gov. Contact points for our offices of
Congressional Relations and Public Affairs may be found on the last
page of this report. Key contributors to this report were Kevin Bray,
Ross Campbell, John Delicath, and Trish McClure.
Signed by:
Robin M. Nazzaro:
Director, Natural:
Resources and Environment:
Enclosure I:
Briefing for House Natural Resources Committee:
Why GAO Did This Study:
In 2003, GAO issued a report on the U.S. Fish and Wildlife Service‘s
(FWS) management and oversight of privately held oil and gas operations
on wildlife refuges. GAO made several recommendations to the Department
of the Interior and FWS to improve oversight. In response to the
growing demand for domestic energy sources, there has been increased
pressure to pursue oil and gas development on federal lands, and some
are concerned about the impact of oil and gas activities on federal
resources if they are not properly managed. In this context, you asked
us to determine the extent to which FWS had implemented the
recommendations from our 2003 report and whether additional actions are
necessary to properly oversee and manage oil and gas operations.
Background:
The mission of the National Wildlife Refuge System is to administer a
national network of lands and waters for the conservation, management,
and, where appropriate, restoration of fish, wildlife, and plant
resources and their habitats within the United States for the benefit
of present and future generations. While the federal government owns
almost all of the surface lands in the system, in many cases it does
not own the subsurface mineral rights. Subject to some restrictions,
owners of subsurface mineral rights have the legal authority to explore
for mineral resources such as oil and gas and to extract resources that
are found.
In August 2003, we reported the following:
* Of the 575 FWS-managed refuges, 155 had past or current oil and gas
exploration, production, or pipeline activities. As of December 2002,
4,406 active and inactive oil and gas wells were located on 105
refuges. The 1,806 active wells, located on 36 refuges, produced about
1.1 percent and 0.4 percent of total domestic oil and gas production,
respectively.
* FWS had not assessed the cumulative environmental effects of oil and
gas activities on refuge resources. Available evidence indicated that
effects varied from negligible to substantial. Some effects had been
reduced through improvements in industry practices.
* Federal management and oversight of oil and gas activities varied
widely among refuges. The variation occurred because of differences in
authority to oversee private mineral rights and because refuge managers
lacked guidance, resources, and training.
* FWS‘s legal authority to require oil and gas operators to obtain
access permits that contain conditions designed to protect refuge
resources varies depending upon the nature of the mineral rights. For
’reserved“ mineral rights”cases where the property owner retained the
mineral rights when selling the land to the federal government”FWS can
require permits only if the property deed subjects the rights to such
requirements. For ’outstanding“ mineral rights”cases where the mineral
rights were separated from the surface lands before the government
acquired the property”FWS had not formally determined its position
regarding its authority to require access permits. We reported that
based on statutory language and court decisions, we believe FWS has the
authority to require owners of outstanding mineral rights to obtain
permits.
• FWS‘s land acquisition guidance was unclear and oversight was
inadequate, thereby exposing the federal government to unexpected
cleanup costs for properties contaminated by hazardous substances,
including oil and gas.
Accordingly, we made numerous recommendations to FWS to address these
deficiencies. We also suggested that the Congress consider providing
FWS with greater authority to oversee private mineral rights.
Scope and Methodology:
To determine the extent to which FWS has implemented corrective actions
to address the problems we identified in 2003, we reviewed agency
documents and relevant laws, analyzed agency responses to written
questions, and interviewed agency officials. This work was conducted in
accordance with generally accepted government auditing standards in
April and May 2007.
Prior GAO Products:
GAO, National Wildlife Refuges: Opportunities to Improve the Management
and Oversight of Oil and Gas Activities on Federal Lands, GAO-03-517.
Washington, D.C.: August 28, 2003.
GAO's Recommendations from 2003 and FWS's Actions to Implement Them:
Collect and Maintain Better Data on Oil and Gas Activities:
1. We recommended that FWS collect and maintain better data on the
nature and extent of oil and gas activities and the effects of those
activities on refuge resources.
Agency Actions:
FWS reported to us that it began working with the Environmental
Protection Agency (EPA) in October 2006 to evaluate whether an oil and
gas database used by EPA”the Site Assessment Reconnaissance Tracking
System”could be adapted to suit FWS‘s needs.
According to FWS, the system includes geospatial location information,
site photographs, spill information, and an action tracking log.
FWS told us that it is a priority to complete the evaluation process in
2007.
FWS‘s initial estimate is that it will cost approximately $2 million to
create an initial inventory of all wells and pipelines on the 155
refuges. Populating and maintaining the database with inspection
results would add yearly costs.
FWS is considering a pilot test of the database in Region 4 (which
includes Louisiana).
FWS told us that once a funding source is identified, the agency plans
to hire contractors to conduct the initial phases of data collection
and database population. Once that is completed and the database is
operational, FWS will use existing staff to conduct day-to-day oil and
gas facility inspections.
GAO Analysis:
We consider this recommendation to be open.
It appears to us that the EPA database contains many data elements that
would be needed to manage oil and gas activity on refuges and is a
reasonable starting point for the development of an FWS system.
It is not clear when the database will be implemented on a systemwide
basis.
2. We recommended that FWS determine the level of staffing necessary to
adequately oversee oil and gas operations and seek the necessary
funding to meet those needs through appropriations, the authority to
assess fees, or other means.
Agency Actions:
A team of FWS managers, working with staff from the National Park
Service‘s Geological Resources Division, determined that a total of 45
positions are needed to oversee oil and gas activities for the national
wildlife refuge system, including 32 refuge oil and gas specialists, 7
regional coordinators, and a 6-person Mineral Resources Team.
FWS reported to us that under current budget circumstances, creating 45
positions is not feasible.
According to FWS, if additional funding becomes available, it will
create three new positions to form a national Mineral Resources Team.
FWS has used damage fees to hire oil and gas staff specialists in Texas
and Louisiana to conduct damage assessments, mitigate or restore
damage, and monitor or study the recovery of damaged resources.
FWS told us that it is ’strongly considering“ initiating a process to
expand its authority nationally to retain fees collected for damages.
GAO Analysis:
We consider this recommendation to be open.
FWS used reasonable factors to determine necessary staffing levels,
namely comparing staff levels with the National Park Service for
comparable activities and assessing expected increases in oil and gas
activities on refuge lands.
However, one could argue that reaching parity with National Park
Service staffing levels would require more than 45 FWS positions.
* The Park Service has 13 dedicated positions to manage over 700 wells
in 12 parks. This equates to just over 1 person per park, and about 54
wells per person.
* FWS has 4,400 wells on 105 refuges. A staffing level of 45 equates to
less than 1 person for every 2 refuges and almost 100 wells per person.
* FWS does not appear to be taking aggressive steps to adequately staff
the agency‘s management and oversight of oil and gas activities. In
general, FWS is planning for reductions in overall refuge staffing
levels and conceded to us that the loss of staff will have a
significant effect on all programs within the refuge system, including
oil and gas management.
Ensure that Agency Staff Are Trained:
3. We recommend that FWS ensure that staff are adequately trained to
oversee oil and gas activities.
Agency Actions:
FWS developed a new training manual and conducted three training
sessions in Texas, North Dakota, and Louisiana. A fourth session is
tentatively scheduled for September 2007 in Alaska.
FWS plans to offer one course per year starting in FY 2008.
FWS personnel involved with natural resource management or enforcement
concerning oil and gas facilities are ’strongly encouraged,“ but not
required, to attend the training.
FWS is working on a handbook entitled Management of Oil and Gas on
National Wildlife Refuges to provide guidance to refuge managers. FWS
told us that the handbook would be available to personnel in August or
September 2007.
FWS believes that it has met the requirement of this recommendation.
GAO Analysis:
We are closing this recommendation in recognition of FWS‘s actions.
However, we have several comments on those actions.
* We believe that FWS should monitor the attendance at its training
classes to ensure that personnel with oil and gas responsibilities are
enrolling. If voluntary enrollment does not prove adequate, then
mandatory enrollment might be needed.
* In our view, a key element of training concerns FWS‘s authority to
require permits for oil and gas activities. However, FWS‘s training
manual states that the question of permitting authority for outstanding
mineral rights is ’unresolved.“ We believe that the handbook will be a
more meaningful document than the training manual if it directly
addresses the issue of authority over private mineral rights. According
to FWS, the handbook will address legal authorities, including mineral
ownership, and implementing regulations. Although FWS testified in
October 2003 that the handbook would be ready in December 2004, it is
still not available.
Enhance Permit Authorities for Oil and Gas Activities:
4. We recommended that the Secretary of the Interior and the Director
of FWS should work with the Department of the Interior‘s (DOI) Office
of the Solicitor to determine FWS‘s existing authority to issue permits
and set reasonable conditions regarding outstanding mineral rights and
to report the results of its determination to Congress.
According to FWS, it is considering seeking”but has not sought”a formal
opinion from DOI‘s Office of the Solicitor regarding FWS‘s authority to
issue permits for outstanding mineral rights.
However, FWS told us that it has consulted with the Office of the
Solicitor regarding its authorities to issue permits for nonfederal oil
and gas operations on refuge lands.
According to FWS, the Office of the Solicitor has reviewed and
concurred with the language in the draft FWS handbook on oil and gas
management regarding FWS‘s authorities.
FWS will not reveal the solicitor‘s position on this question until it
releases the handbook on oil and gas management.
GAO Analysis:
We consider this recommendation to be open until the Secretary and FWS
report the results of their determination to the Congress.
Comments from the Department of the Interior:
Enhance Permit Authorities for Oil and Gas Activities:
5. We recommended that the Secretary of the Interior and the Director
of FWS should work with DOI‘s Office of the Solicitor to seek from
Congress, in coordination with appropriate administration
officials”including those within the Executive Office of the
President”any necessary additional authority over such [outstanding]
rights, and over reserved mineral rights, so that FWS can apply a
consistent and reasonable set of regulatory and management controls
over all oil and gas activities occurring on national wildlife refuges
to protect the public‘s surface interests.
Agency Actions:
In October 2003, FWS testified that it did not see the need for
additional legislative authority”similar to that available to the
National Park Service and the Forest Service”regarding outstanding or
reserved mineral rights. FWS has maintained this position in its
response to our recent inquiries.
In response to our request for comments on a draft of this product, DOI
stated its belief that it does not require additional authority to
manage oil and gas activities where the mineral rights have been
reserved. DOI also said that additional authority would require
permitting for operators who own the subsurface mineral rights and that
FWS is able to effectively manage oil and gas activities on refuges
without infringing on the private property rights of mineral owners.
GAO Analysis:
We consider this recommendation to be open.
We appreciate DOI‘s belief that it can protect the public's surface
interests in national wildlife refuge lands with the authority it
currently has. However, we do not believe that DOI has adequate
information on which to base this claim. In particular, FWS has not
comprehensively assessed the extent of the damages occurring on refuge
lands due to oil and gas activities and it has yet to publicly clarify
the extent of its current authority over private mineral rights. We
continue to believe that such information is necessary for DOI to
adequately inform the Congress regarding the need for additional
authority. Moreover, we believe it is for Congress, not DOI, to weigh
the needs of the refuge lands and the interests of mineral owners and,
ultimately, to determine what oversight authority would be appropriate.
Before Congress can do so, DOI must inform the Congress as to what
authority FWS might require to adequately protect refuge resources.
Briefing:
GAO Contributors:
If you have any questions concerning this briefing, please contact
Robin M. Nazzaro, Director, Natural Resources and Environment, at (202)
512-3841. Other key contributors to this briefing were Kevin Bray,
Ross Campbell, John Delicath, and Trish McClure.
Recommendations and Actions (cont.):
Improve Land Acquisition Guidance to Avoid Problems:
6. We recommended that FWS clarify guidance and better oversee its land
acquisition process so that all hazardous substances and environmental
problems, as well as future cleanup costs, are fully identified prior
to acquisition and that unexpected costs are avoided.
Agency Actions:
October 2003”FWS testified that it believed that existing policies were
sound but that they could be further improved.
June 2004”FWS wrote to GAO stating that its policies were clear but
that it would issue a Director‘s Order in FY 2004 reaffirming the
importance of conducting thorough environmental site assessments for
all sites, including properties with oil and gas activities.
FWS has now decided to revise the policy rather than issue a Director‘s
Order. The agency stated the following reasons for its change in plans:
* Director‘s Orders are temporary.
* In November 2005, EPA issued regulations describing environmental
site assessment practices. Those regulations became effective in
November 2006 and FWS needs to address them in its revised policy.
* FWS has assembled a team to work on revising its policy but cannot
complete that task until
- DOI and the U.S. Department of Agriculture issue guidance for
addressing the new EPA regulations and
- DOI revises its land acquisition policy after issuing the guidance.
In its comments on a draft of this report, DOI said that its guidance
for addressing the new EPA regulation is under review and is expected
to be completed by the end of 2007.
GAO Analysis:
* We consider this recommendation to be open.
* We are not yet able to evaluate DOI or FWS changes to policy.
* The revised FWS policy will not be available until at least 2008.
* We note that improved guidance must also be accompanied by adequate
implementation and oversight.
[End of section]
Enclosure II: Comments from the Department of the Interior:
United States Department of the Interior:
Fish And Wildlife Service:
Washington, D.C. 20240:
June 14, 2007:
Ms. Robin Nazzaro:
Director, Natural Resources and Environment:
U.S. Government Accountability Office:
441 G Street, N.W.:
Washington, D.C. 20548:
Dear Ms. Nazzaro:
Thank you for providing the Department of the Interior with the
opportunity to review and comment on U.S. Government Accountability
Office Draft Report "Opportunities Remain to Improve Oversight and
Management of Oil and Gas Activities on National Wildlife Refuges" GAO-
07-829-R dated May 2007. Within the Department, the U.S. Fish and
Wildlife Service (Service) has worked diligently to improve its
management of oil and gas activities on refuge lands and to implement
the recommendations of the GAO. In general, we agree with the majority
of the GAO's conclusions that pertain to the Service. We have provided
specific comments below.
In addition to the minor editorial comments that the Service previously
provided to GAO regarding the draft report, the enclosure provides
technical comments, as well. We hope these comments will assist you in
preparing the final report. Again, thank you for the opportunity to
review and comment on the GAO's Draft Report.
Sincerely:
Signed by:
Assistant Secretary for Fish,
Wildlife and Parks:
FOOTNOTES
[1] GAO, National Wildlife Refuges: Opportunities to Improve the
Management and Oversight of Oil and Gas Activities on Federal Lands,
GAO-03-517 (Washington, D.C.: August 28, 2003).
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