BLM proposes 250-acre land sale to oil company

Policy, politics and progressive commentary

Federal land managers plan to sell nearly 250 acres of public land in east-central Nevada to the state’s only crude oil refinery, the Eagle Springs Refinery, operated by Foreland Refining Corporation.

On Friday, the Bureau of Land Management published a draft environmental assessment detailing the potential sale of hundreds of acres of public land roughly 64 miles southwest of Ely in Railroad Valley to “allow for future expansion of the refinery,” despite the state’s push to move away from fossil fuels.

The Foreland Refinery currently holds a right-of-way permit to operate a petroleum refinery on 40 acres of public land. The sale would transfer those 40 acres of public land underlying the existing oil refinery, as well as about 209 acres of adjacent land, from BLM management to private ownership.

For the past six years, the United States has produced more crude oil than any other country, and nationwide production has risen even more quickly in recent months, according to the U.S. Energy Information Administration.

Nevada is one of the least productive states for crude oil extraction, producing less than 220,000 barrels last year. Much of that oil is sourced from Nevada’s Railroad Valley, where it’s used to make asphalt, diesel fuel and other petroleum products.

The potential expansion of Nevada’s only crude oil refinery could be part of a growing trend. Most of the crude oil produced in the United States is refined in the U.S., according to the EIA. Nationally, crude oil production companies are also expanding their refinery capacity, as U.S. crude oil production skyrockets . In 2023, the U.S. increased its refining capacity by 2% for the second consecutive year.

Federal analysts say oil drilling in the U.S. has declined, but advances in technology have increased well productivity , enabling U.S. producers to extract more crude oil from new wells drilled.

Nevada’s only crude oil refinery is also part of a growing trend of further consolidation of U.S. crude oil and gas companies. Foreland Refining Corporation was acquired by Sky Quarry Inc, a Utah-based crude petroleum and natural gas company, in 2022. According to the EIA, crude oil and gas companies spent more on mergers and acquisitions last year than any year since 2012.

Potential environmental risks

Federal land managers noted the sale is located in a rural area and does not include any new surface disturbances, arguing the land sale itself would not negatively impact Nevada communities, including the Duckwater Shoshone Tribe reservation, located about 20 miles from the refinery.

However, oil refineries are a major source of air pollution. Medical researchers have found that pollutants produced by refineries are strongly associated with decreased lung function and inflammation, preterm delivery, asthma and other respiratory illnesses, and an increased risk of cancer .

Federal land managers with the BLM Tonopah Field Office said they conducted government-to-government consultation with the Duckwater Shoshone Tribe and the Ely Shoshone Tribe in 2021, sending letters describing the land sale to the tribes, but BLM did not hear back.

The Center for Biological Diversity has been pushing back on oil drilling in Railroad Valley for years. If the refinery expanded, the conservation group says, it could degrade wetlands that support the rare Railroad Valley toad — one of the smallest western toad species — and the springfish, which is protected under the Endangered Species Act.

Federal wildlife managers have also expressed concern that oil and gas extraction in Railroad Valley could potentially devastate fragile species that depend on spring-fed wetlands in the valley.

In January, U.S. Fish and Wildlife Service found there were credible threats to the rare toads’ existence that warranted possible federal protections , including oil and gas extraction in Railroad Valley.

“Nevada is roasting through the hottest June in recorded history and the BLM is inexplicably proposing a sweetheart deal for the oil industry to burn even more fossil fuels. It makes no sense,” Patrick Donnelly, Great Basin director at the Center for Biological Diversity, said. “Railroad Valley is a rich and biodiverse landscape full of endangered species and the desert’s most valuable resource: water. We’re in a climate emergency but instead of winding down oil production in Nevada, BLM is throwing fuel on the fire. We don’t intend to stand by and watch that happen.”

Federal land managers are seeking public comments on the proposed sale. BLM will accept comments received on or before Aug. 12.

“BLM is committed to responsible multiple use management of public lands,” said Battle Mountain District Manager Douglas Furtado in a statement . “By making the land sale process accessible and transparent, we ensure that the interested public has an opportunity to provide important and useful information to assist the decision-making process.”

Nevadans who wish to make a public comment can submit online on BLM’s National NEPA Register webpage by clicking the “Participate Now” button in the Dashboard. Comments can also be mailed to the BLM Tonopah Field Office, ATTN: Foreland Refinery Direct Land Sale, P.O. Box 911 (1553 South Main Street), Tonopah, Nevada 89049.

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