Public Lands: Federal Oil and Gas Leases; Bidding Process Criminal Law: Making False Statements

摘要

The Bureau of Land Management (BLM) conducts quarterly auctions of oil and gas leases pursuant to statute. 30 U.S.C. § 226(b)(1)(A). BLM regulations require a minimum bid of $ 2.00/acre. 43 C.F.R. § 3120.1-2(c). In December 2008, BLM planned to auction some 131 parcels in Utah. The sale generated substantial public controversy and some attempts to enjoin the sale. The defendant participated in a protest on the date of auction but then also registered as a potential bidder by signing a form whereby he certified that: "any bid submitted by the undersigned . . . is a good faith intention ... to acquire an oil and gas lease on the offered lands." The defendant then participated in the bidding on the parcels, driving up the bids and actually winning some 14 parcels with bids totaling nearly $1,800,000. Pursuant to BLM policy the defendant was obligated to tender a down payment of some $81,238 which he failed to do. Two federal criminal statutes are implicated by the defendant's actions, to wit 18 U.S.C. § 1001 and 43 U.S.C. § 1212 which criminalize the knowing and willful making of any false, fictitious or fraudulent statements. A federal grand jury issued a two-count indictment against the defendant. Count 1 charged him with organizing or participating in a scheme, plan or agreement to circumvent or defeat the provisions of the Federal Onshore Oil & Gas Leasing Reform Act in violation of 30 U.S.C. § 195(a)(1).