A tiny lizard that is native to a small area in southeastern New Mexico and west Texas is kicking up a storm of controversy in the Permian play.

The dunes sagebrush lizard, which tops out at 2.8 inches long, is packing a mighty roar for such a small creature. Some operators in the Permian have fears that the lizard -- and efforts to protect it -- could deliver a blow to prospecting and production in nine counties across the two states, an area that the industry says is responsible for providing 20% of onshore oil production in the United States.

The U.S. Fish and Wildlife Service is trying to determine if the dunes sagebrush lizard is an endangered species. If that eventually becomes the case, the lizard and its habitat -- the shinnery oak plant that is abundant in dessert sand dunes in the nine-county sprawl -- would be subject to federal protection. For oil and gas operators, that could mean activity within the lizard's domain could be restricted or possibly eliminated.

A ruling by Fish and Wildlife regarding the lizard's endangered status was expected to be made in mid-December. However, on Dec. 1 the agency announced that it approved a six-month extension to further study the lizard’s extinction status.

The decision produced a swell of relief from the industry and its backers -- and for good reason. A year earlier, Fish and Wildlife unveiled a proposal to add the lizard to its endangered list. In a Dec. 14, 2010, report in the Federal Registry, the agency reported that pipelines and oil and gas production have, in part, destroyed and fragmented the lizard's habitat. Fish and Wildlife also claimed that the lizard had disappeared from most of its traditional habitat in the region and that off-road vehicles were causing it to become extinct in Crane County, Texas.

A Nov. 30 news release from the Permian Basin Petroleum Association (PBPA) refuted the agency's 2010 findings. The PBPA news release further claimed that "the federal government appears to have broken its own laws and rules" by violating a section of the Endangered Species Act that mandates coordination with state and local agencies before determining the lizard's status.

The PBPA, based in Midland, Texas, quoted Greg Nibert, chairman of the Chaves (New Mexico) County Commission, in its Nov. 30 release. "We are extremely disturbed by the [Fish and Wildlife Service's] repeated refusals to meet with us. Should they approve the listing, we will consider their prior refusals to meet an abuse of discretion that we will pursue through all available legal channels," he said.

Also quoted was Crane [Texas] County Judge John Farmer, who emphasized that the tiny lizard's future status is no little deal.

"[The county] will blow away in the dust should the [endangered] listing go through," he said.

Those who oppose that the lizard be given endangered status have 45 days to state their cases, according to Fish and Wildlife. The agency is soliciting input from concerned governmental agencies, the scientific community, industry or any other interested party concerning the proposed rule in light of this additional information.

Fish and Wildlife also acknowledged that it has received new information about the lizard from sources outside the agency, including an unsolicited peer review.

Written comments must be received by close of business on Jan. 18, 2012, the agency said. For more information on how and where to submit comments, and to download the appropriate documents, visit the Fish and Wildlife website.