BLM Proposes Opening 336,000 Acres Near Chaco Canyon to Oil and Gas Leasing
According to Oklahoma Energy Today, the Bureau of Land Management has proposed opening 336,425 acres of public land in New Mexico’s Greater Chaco Region to oil and gas leasing, reversing protections put in place under the Biden administration in 2023.
Regulatory Reversal and Timeline
The BLM launched a seven-day public comment period on March 31, 2026, as the first step toward undoing Public Land Order 7923, which had placed the lands surrounding Chaco Culture National Historical Park off-limits to extractive development for 20 years. If the proposal advances, new leasing and drilling would be permitted on federal lands within 10 miles of the park, including parcels directly bordering its boundaries.
The proposal drew immediate pushback from environmental groups and Native American leaders. “Chaco Culture National Historical Park has incalculable ecological and historical value. It is too special to be exposed to oil and gas drilling,” said Ellen Montgomery, Environment New Mexico Great Outdoors Director. Maude Dinan, New Mexico program manager for the National Parks Conservation Association, called the move “an attack on cultural heritage, community health, and all that our national parks were created to protect.” Chaco Canyon is a UNESCO World Heritage Site with cultural history dating to the mid-800s.
What It Means for Subcontractors
- Watch the comment period closely. The seven-day window that opened March 31 closes around April 7. If the proposal moves forward, lease sales could follow within months, giving field service companies in New Mexico limited time to position themselves.
- New Mexico operators will need crews. The Greater Chaco Region sits in the San Juan Basin, already an active gas-producing area. Additional federal leasing would expand opportunities for drilling, completions, pipeline, and site prep contractors already working in the region.
- Expect permitting friction. Opposition from tribal nations and environmental groups is strong. Contractors working near the park boundary should anticipate potential legal challenges that could delay project timelines, and build contingency into scheduling and mobilization plans.
- Monitor BLM’s final decision. The proposal still faces regulatory review and likely legal challenges before any leases are issued. Subcontractors should track BLM New Mexico updates at blm.gov/office/new-mexico-state-office rather than assuming near-term access.
