Government and industry lawyers faced off against environmental lawyers in
federal court yesterday, arguing over whether a panel of judges should
freeze oil and gas development near the Chaco Canyon region of northwest
New Mexico.

Western Environmental Law Center lawyer Kyle Tisdel kicked off the morning
at the 10th U.S. Circuit Court of Appeals in Denver with environmentalists'
position that new oil and gas drilling permitting should be halted in the
contentious area while a lower court considers whether the Bureau of Land
Management properly considered the environmental impacts.

The U.S. District Court for the District of New Mexico last summer rejected
the group's request for a preliminary injunction, prompting the appeal.

Though oil and gas development has occurred in New Mexico's San Juan Basin
for decades, WELC, WildEarth Guardians and a Navajo environmental group
argue that drilling in the basin's Mancos Shale threatens the environment,
ancient tribal artifacts and modern Navajo communities near Chaco Culture
National Historical Park (*EnergyWire*
<http://www.eenews.net/energywire/stories/1060021627>, July 13, 2015).

BLM's most recent resource management plan and associated environmental
impact statement (EIS) for the area are from 2003. The agency is working on
an update and has been approving shale wells in the area by performing
individual environmental assessments that are tiered to the existing EIS.

Tisdel said he thought the three-judge panel was receptive to the groups'
arguments.

"I think arguments went well, and we're keeping our fingers crossed," he
said. If the environmentalists win, he said, "hopefully that will be a
sign" to Judge James Browning to rule for the environmental groups in the
underlying merits of the case.

Counterarguments came from Justice Department attorney Emily Polachek,
representing BLM, and Holland & Hart attorney Hadassah Reimer, representing
oil and gas companies -- including major area operators WPX and Encana. DOJ
and BLM do not comment on ongoing litigation, and a spokesman for Encana
did not respond by deadline to a request for comment.

Tisdel said he thought the court was wary of industry and BLM's position
that the agency's decision to revise the 2003 risk management plan does not
mean all permitting must stop until that is complete, particularly given
the field's economic benefits.

"Judge Browning in the district court bought those arguments," he said.
"But they seemed to go over less well at the 10th Circuit."

The judges hearing the case are Paul Kelly, a George H.W. Bush appointee; Monroe McKay, 
a Carter appointee; and Carlos Lucero, a Clinton appointee.

Ellen M. Gilmer <http://www.eenews.net/staff/Ellen_M_Gilmer>, E&E reporter
Published: Wednesday, March 9, 2016