Devon Energy Could Benefit from Government Decision in Montana







The move by the Obama administration to finally give up a several year running fight over oil and gas leases on land outside Montana’s Glacier National Park has a direct bearing on Oklahoma City-based Devon Energy. The land is considered sacred to the Blackfoot tribes and Devon Energy has several of the 17 leases remaining on a 6,200 acre site.

The decision came after U.S. District Judge Richard Leon blasted the government over its delay in ending the fight, and accused the government of trying to run out the clock on a lawsuit filed by Solenex LLC. Solenex is a Louisiana company that sued to drill for oil and gas on the land.

At least 17 leases remain on the land in northwest Montana’s Badger-Two Medicine area and Devon Energy holds most of them. The Blackfoot tribe contends the leases were illegally issued in 1982. What will happen to the leases is unknown but last fall, U.S. Agriculture Secretary Tom Vilsack urged that they be canceled. He made the recommendation in a letter to Interior Secretary Sally Jewell.

“Today’s action honors Badger-Two-Medicine’s rich cultural and natural resources and recognizes the irreparable impacts that oil and gas development would have on them,” said Jewell upon learning of the government’s decision.

“We’re pushing to have all the leases terminated,” said Blackfeet Tribal Chairman Harry Barnes. “It’s considered a very spiritual place, a base for spirituality from whence a lot of power comes for the Blackfeet people.”

Over the years, dozens of leases were sold but over the years, while the government stalled and hoped the leases would expire, many were retired or surrendered by the owners. But Devon Energy held on to the leases it holds.

The lawsuit filed by Solenix was in 2013 as the company tried to force a decision by the INterior Department. Solenix attorneys plan to challenge any cancellation and point how the lease went through several environmental reviews over the years and was never said to be invalid.