1 BLM Oil and Gas Overview Scott F. Archer USDI – BLM National Science & Technology Center September 13, 2007

2 Background USDI – Bureau of Land Management administers 260 million acres surface lands Plus 700 million acres federal mineral estate (Surface 21% WESTAR – Mineral Estate 60% WESTAR) Federal Government’s No. 1 source of income until Federal Income Tax, then creation of Minerals Management Service (1982) $ 8 Billion/year 2001 National Energy Policy Development Group Executive Orders No & made energy Development No. 1 Priority for Federal Agencies Oil and Gas Production: – Billion bbl – 67 Trillion cf Billion bbl – 2.1 Trillion cf “Resources v. Reserves” (BLM ~80%)

3 Federal Land Policy Management Act Section 102(a)(8) – The Congress declares that it is the policy of the United States that – the public lands be managed in a manner that will protect the quality of … air and atmospheric … values; Section 202(c)(8) – In the development and revision of land use plans, the Secretary shall – provide for compliance with applicable pollution control laws, including State and Federal air … pollution standards or implementation plans; Section 203(c) – The Secretary shall insert … a provision authorizing revocation or suspension …upon a … finding of a violation of … applicable State or Federal air … quality standard or implementation plan; Section 302(b) – In managing the public lands the Secretary shall, by regulation or otherwise, take any action necessary to prevent unnecessary or undue degradation of the lands.

4 BLM’s Role Leasing Specific Project Approval Royalties and PILT NEPA analyses Applications for Permit to Drill Stipulations and Conditions of Approval Inspection and Enforcement

5 StateAcres LeasedBLM Revenue AKunderway81% CO4.6 Million11 MT4.2 Million 4 NM5.4 Million 2 WY14 Million 1.5 UT3.8 Million < NV2 Million < Currently Leased

6 Future Reserves Estimate to contribute: BLM 21 Billion bbl – 186 Trillion cf AK w/ANWR 17 Billion bbl – 65 Trillion cf ANWR only 7.2 Billion bbl – 6.3 Trillion cf

7 Leasing

8 Land Use Plans (pending/underway) AK3NPR-A (NW, South, NE) AZ3 CA7 CO8NSJB, Roan, SJ FMP/RMP, WRRA ID6 MT3Billings (Completed Powder River Basin) NV1(Completed Las Vegas Plan) NM2(Completed Farmington) OR/WA2 UT6Vernal WY5All O&G, esp Jonah, Rawlins, Pinedale

9 Royalties

10 NEPA Documents

11 Modeling Domain Analysis Protocol

12 Existing Oil and Gas Development in the San Juan Basin

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14 CO/NM Air Quality Impact Analyses Southern Ute Indian Tribe CBM (SUIT/BLM/BIA) 2,000 existing ,300 new wells NOI 9/ Draft 1/ Final 8/2002 ROD 10/2002 Farmington RMP (BLM/BOR/FS) 18,000 existing + 10,000-13,275 new wells NOI 8/ Draft 6/ Final 3/2003 ROD 9/2003 Northern San Juan Basin CBM (BLM/FS) 300 existing new wells NOI 4/ Draft 6/2004 – Final 8/2006 ROD 4/4/2007

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16 Near-Field Receptor Grid

17 Results of Air Quality Modeling Cumulative impacts from NSJB and Farmington RMP sources are predicted to exceed visibility thresholds at Mesa Verde National Park and Weminuche Wilderness Class I Areas. Cumulative impacts could be reduced if state-of-the-art NOx emission controls were required on new O&G-related emission sources. Contributors: – Existing and Predicted O&G Development: NM: approx. 20,000 existing wells (approx. 10,000 proposed) CO: approx. 2,500 existing wells (approx. 1,000 proposed) – NM power plants and residential growth O&G development is currently in compliance with standards but has the potential to exceed thresholds in the future.

18 Continuing Actions FLMs continue cooperation with Ozone Task Force and forming Four Corners AQ Task Force Farmington RMP and NSJB APD Approvals (with additional NEPA) –requires NOx 2.0 gm/hp-hr wellhead engines >15 hp CDPHE Revision to Regulation No. 7 (O&G Emission Controls) –Natural gas engine >500 hp controls (>100 hp delayed by 6 months) Nitrogen oxides (2.0 gm/hp-hr by 7/2007, 1.0 gm/hp-hr by 2010) Carbon monoxide (4.0 gm/hp-hr by 7/2007, 2.0 gm/hp-hr by 2010) Non-methane hydrocarbons (1.0 gm/hp-hr by 7/2007, 0.7 gm/hp-hr by 2010) –Glycol dehydrators >15 TPY VOC – 90% control by 5/2008 –Condensate tanks >20 TPY VOC – 95% control by 5/2008 Further recommendations to be proposed by Four Corners AQTF –Small and large reciprocating engine controls (NSCR/SCR/OxyCatalyst) –Drill rig engine controls (SCR/SNCR) –“Green” completions Proposed NSPS for natural gas combustion engines (gm/hp-hr) –Over 25 but under 50 hp CO- 2; NMHC – 0.7; NOx – 1 (Jan 2011) –Over 50 but under 500 hp CO- 2; NMHC – 0.7; NOx – 1 (Jan 2011) –Over 500 hp CO- 2; NMHC – 0.7; NOx – 1 (July 2010)

19 Interagency Task Force NM/CO Air Quality Regulators and FLMs established an interagency task force to develop and implement a more comprehensive air quality impact assessment Features –Enforcement by State Air Quality Regulators –Involves “stakeholders” (public, environmental & industry) –Could limit potential visibility and lake chemistry impacts –Could require revised emission source inventory and modeling –Could expand analysis region and issues of concern –Could address other emission source growth (power plants) –Could require a tracking system to implement –Currently operational Five work groups – Cumulative effects, Monitoring, Oil & Gas, Power Plants, Other sources Final Task Force Report due December 2007

20 Additional Activities Working Groups: NM/COFour Corners Air Quality Task Force MT/SD/WYInteragency Working Group – Air Quality Task Force WYJonah Interagency Mitigation & Reclamation Office – Air Quality Monitoring Plan UTUnitah Basin Air Quality Study

21 Alaskan Inspection and Enforcement For more information Contact Scott F. Archer Senior Air Resource Specialist