Environmental Law

More Trial Coverage

By Walter James

On April 1, 2009, Tim DeChristopher was indicted for violating the Federal Onshore Oil and Gas Leasing Reform Act and making false statements in connection with the bidding process.   

A little background before the meat.  In 1987, Congress enacted the Federal Onshore Oil and Gas Leasing Reform Act (?Act?), which was intended to make significant changes to the regulations for oil and gas leasing.  Essentially, the Act established a competitive bidding process for oil and gas leases and was designed to address provisions in the former non-competitive leasing system that were criticized for allowing fraud, abuse and excessive speculation.  The Act established procedures that must be followed by the Bureau of Land Management in conducting the oral bidding process and established requirements for those engaged in the competitive bidding process.

Tim DeChristopher was indicted because the government alleges that on December 19, 2008, he organized and participated in a ?scheme, arrangement, plan, and agreement to defeat the provisions? of the Act by interfering with the competitive bidding process of the sale of federal oil and gas leases.  The indictment alleges that he did this by attending an auction for oil and gas leases in Salt Lake City and representing himself as a bona fide bidder.  Of course, the government alleges he was not.  DeChristopher filled out the necessary forms and bid on and purchased oil and gas leases.  The government alleges that DeChristopher did not have the intention or the means to acquire these oil and gas leases and that this violated 30 U.S.C. § 195(a)(1) and is punishable by 30 U.S.C. § 195(b).  The government also alleges that DeChristopher made false statements when he filled out and signed the "Bidder Registration Form, " that certified he had a good faith intention to acquire an oil and gas lease on lands offered for auction.  

What is going to be truly interesting about this case is that the University of Montana blog that covered the W.R. Grace case will also be logging about this case, so we will get hourly updates of the trial and testimony.  The trial is currently set for late March, early April. 

This is an ongoing development of a project that I am involved in to develop a national ?environmental crimes trial blog? that will bring you hourly/daily updates on what is happening in environmental crimes cases throughout the country.  It is a real challenge because it will involve the cooperation of, among others, the USDOJ, the USEPA, the US Attorneys? offices, local prosecutors, defense counsel, judges, and law schools and journalism schools across the country.  Kind of like herding cats at times.  My friends at the University of Montana (Andrew King-Ries and Nadia White) are spearheading this aspect of the adventure.  Look for Tracy Hester at University of Houston, Lee Paddock at Georgetown and Alexandra Dunn at Pace to join the fray as well.  Also, a shout out to Kris Dighe and Fred Burnside for their contributions.  There are a few other guys behind the scenes besides me (who will get special recognition later).

More later.

As always, feel free to contact me via e-mail at walter.james@jamespllc.com.

Full post as published by Environmental Crimes Blog on February 11, 2010 (boomark / email).