By Zack Colman - 11/09/12 02:07 PM ET

The Interior Department on Friday issued a final plan to close 1.6 million acres of federal land in the West originally slated for oil shale development.

The proposed plan would fence off a majority of the initial blueprint laid out in the final days of the George W. Bush administration. It faces a 30-day protest period and a 60-day process to ensure it is consistent with local and state policies. After that, the department would render a decision for implementation.

The move is sure to rankle Republicans, who say President Obama’s grip on fossil fuel drilling in federal lands is too tight.

Interior’s Bureau of Land Management cited environmental concerns for the proposed changes. Among other things, it excised lands with “wilderness characteristics” and areas that conflicted with sage grouse habitats.

Under the plan, 677,000 acres in Colorado, Utah and Wyoming would be open for oil shale exploration. Another 130,000 acres in Utah would be set aside for tar sands production.

The administration and Democrats said that while the plan would curtail what was originally sought for oil shale development, it still opens up a significant amount of land that was previously unavailable for the energy production method.

The administration noted the plan pushed forward Friday also included two research, development and demonstration (RD&D) leases for oil shale development.

"The proposed plan supports the Administration’s all-of-the-above approach to explore the full potential our nation’s domestic energy resources and to develop innovative technology and techniques that will lead to safe and responsible production of resources, including oil shale and tar sands, which industry recognizes are years from being commercially viable, but require RD&D today," Interior spokesman Blake Androff said.

Sen. Mark Udall (D-Colo.) praised the plan, saying the administration exercised the right amount of caution on oil shale development, which has not yet been brought to commercial scale and brings concerns about the amount of water used in the practice.

"I am glad the Interior Department is taking measured steps to encourage research and development of our oil shale resources. With water being one of our most precious commodities in the West, I have concerns about the potential impacts of commercial oil shale development. Nonetheless, I look forward to seeing this technology explored further," Udall said in a Friday statement.

Oil shale development is not to be confused with drilling into shale formations for oil and natural gas. The practice, which involves separating hydrocarbons bound up in rocks, has not been widely executed since Exxon's failed Colorado venture in the 1980s.

Bobby McEnaney, senior lands analyst with the Natural Resources Defense Council, praised Interior Secretary Ken Salazar for the proposed final plan.

“By significantly reducing the acreage of wilderness potentially available for leasing, Secretary Salazar is laying out a creative, thoughtful and more responsible approach in managing some of our most precious resources,” McEnaney said in a Friday statement.

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