Oil is almost never used to generate electric power. When it is, it is usually refinery “leftovers”, residual oil or petroleum coke. The heavies left after fuels like gasoline and diesel are removed.
If the original EIS was found to be ‘in error’, then, the BLM can work it anyway they choose. With such options, they WILL heavily weigh public opinion via hearings.
The decision to withdraw and void a lease is not without economic impact on the lessee oil company. Even so, the real problem is getting adequate compensation from the government for cost and expense incurred by the lessee oil company. The bonus per acre paid the government with a winning bid is easily identified, however, there will be ‘arguments’ and ‘delays’ when considering technical and administrative expenditures that are ‘reasonable’ in the judgement of the government. For the sake of time and
expense, most will ‘settle’ early and in the accounting world, lose money. Even though you are issued a valid lease giving authority to explore for and drill for oil and gas and subsequent to the issue you conduct costly technical operations to further confirm and justify your decision to drill, you may lose it all when the lease is withdrawn. It has become difficult to conduct business with reliance on contracts, agreements between two parties to accomplish an act. When agreements mean nothing........is there anybody out there?
BeGood....Ross