Western Environmental & Public Lands Update Kathleen Sgamma

Outline Key policies Areas for improvement Policy permanence Royalty Policy Committee – Onshore Working Group Impact of the new political climate What happens in Colorado stays in Colorado?

Western Energy Alliance Founded in 1974 as IPAMS 300 member companies Represents independents on federal issues Promotes environmentally responsible development

Differentiation Western regional perspective to Washington Federal environmental and regulatory issues Tip of the spear on public lands Outsized media presence Little Oil aggressive advocacy

New waste prevention rule Fracking rule Leasing policy NEPA policy Federal nexus Categorical exclusions policy Sage grouse plan rewrites

Mitigation policy Onshore order rewrite ESA rules Reducing APD processing times Shutdown activities First quarter lease sales

New bonding policy Colorado sage grouse plan Backlog of ONRR audits Valuation rewrite Onshore order enforcement Lack of direction on litigation

Advocacy Strategy Real Change in the Field Policy Permanence Leasing Environmental analysis Project approvals Policy Permanence Congress Rulemaking Litigation

Success metric is reduced timelines for approvals

Legal Strategy BLM Fracking Rule BLM Methane Rule Sage Grouse Plans Lease Sale Intervention 2015-2018 leases challenged in CO, ID, MT, NV, UT, WY Enviro’s trying to stop future leasing as well

Royalty Policy Committee Onshore Recommendations Overarching “philosophy” Increase competitiveness of federal mineral estate Versus increasing royalty rates Reduce project approval timelines APDs, ROWs, sundries, unit agreements, nominations Issue policy on the use of categorical exclusions Reduce the federal nexus for wells without a majority federal interest

Royalty Policy Committee Onshore Recommendations (con’t) Improve land use planning and project NEPA approvals Scope project NEPA to actual project impacts and limited to best available info Revise and simplify onshore orders 3, 4 and 5 Working on a Notification for Permit to Drill recommendation

Last Two Years

Blue Tsunami in CO & NM Governors Down ballot state-wide officials Legislatures

Prop 112 Soundly Defeated

Urban Areas/Mountain Towns

Suburbs Overcame Liberal Areas

Kathleen Sgamma ksgamma@westernenergyalliance.org (303) 501-1059 Thank you! Kathleen Sgamma ksgamma@westernenergyalliance.org (303) 501-1059