Dems warn sequester will lower federal oil and gas revenue

The BLM will process between 300 and 400 fewer drilling permits and issue 150 fewer leases because of the sequester, the report said. The bureau also has already canceled two lease sales because of the cuts, it noted.

On top of that, Democrats said two coal sales would not occur this year because of the budget reductions, saying the Treasury Department would take a hit of between $50 million and $60 million.

The $85 billion worth of government-wide spending cuts left little discretion as to how agencies could implement reductions, irritating department heads and lawmakers from both sides of the aisle.

The sequester will also restrict air pollution monitoring, wildfire management and hazardous and nuclear material cleanup, the Democrats' report said.