1. 2/18/991 Oil and Gas Environmental Program Program Review February 18, 1999

2. 2/18/99 2 Environmental Level III Team DAVID ALLEMAN, NPTO JOHN FORD, NPTO NANCY HOLT, NPTO DEXTER SUTTERFIELD, NPTO GARY WALKER, NPTO MICHAEL NOWAK, FETC BILL HOCHHEISER, HQ NANCY JOHNSON, HQ

3. 2/18/99 3 Goals and Objectives Government Role BALANCE: Economic GrowthEconomic Growth Environmental ProtectionEnvironmental Protection Energy SupplyEnergy Supply Revenue from Federal LandsRevenue from Federal Lands

4. 2/18/99 4 Goals and Objectives DOE Role b Sound Science b Lower-Cost Compliance Technologies b Federal-State-Industry Dialogue b Regulatory Impact Analysis

5. 2/18/99 5 MISSION Maximize Recovery of Oil and Gas by Reducing the Cost of Effective Environmental Protection

6. 2/18/99 6GOALS b Enable Industry to Reduce Compliance Costs and Improve Environmental Performance b Promote Cost-Effective, Risk-Based Regulatory Decisions b Improve Communication and Tech Transfer Among Governments, Industry, and the Public

7. 2/18/99 7 APPROACH b Regulatory Impact Analysis b Regulatory Streamlining b Risk Assessment/Data Management b Technology Development

8. 2/18/99 8 What’s New b Federal Lands Technology Partnership b Remediation b Air Quality b Data Management b Streamlining

9. 2/18/99 9 Schedule and Milestones Reduced Costs

10. 2/18/99 10 Schedule and Milestones BAGI

11. 2/18/99 11 Schedule and Milestones Data Management

12. 2/18/99 12 Major Successes in 1998 b TRI - Convinced EPA to Delay Inclusion of Oil and Gas b Alaska Study on Lease Stipulations b AOR - Texas Expanding Appication of AOR’s - $50 Million b Environmental Manuals - KY and Rocky Mountains b Model State Regulations for NORM b RBDMS - Generic Version Distributed b BAGI - Demonstrated Van-Mounted Unit for Distribution Systems: Began Discussions with EPA

13. 2/18/99 13 Planned Accomplishments 1999 & 2000 b Downhole Oil-Water Separation - Field Test 2 Technologies, Developing New Technology - $500 million b Synthetic Muds - Presumptive Rulemaking Proposed by EPA b TRI Pilot - Colorado - $100 Million b Plasma-Assisted Catalysis: Reduced Diesel Emissions at Reduced Cost b BAGI - Refinery Test: Revolutionize LDAR Requirements - $300 Million b Air Tracers - Regional Haze b Federal Lands Technology Partnership - Improving Access by Demonstrating Environmental Performance

14. 2/18/99 14 Oil Environmental Budget* ($ K)

15. 2/18/99 15 Oil E&P Environmental Budget* ($ K)

16. 2/18/99 16 Gas Environmental Budget ($K)

17. 2/18/99 17 Issues b Low Prices Abandonments Abandonments Reduced ComplianceReduced Compliance b Partnership Funding b Gas Program Funding - Lost $600K

18. 2/18/99 18 Opportunities b Synthetic Muds - Data Collection and Monitoring b Federal Lands Access b Data Management b Air Quality Regional HazeRegional Haze ParticulatesParticulates