1. Oil & Natural Gas Development in the West: Thoughts on Improving the Process 2014 Utah Governor’s Energy Summit Ursula Rick, PhD June 4, 2014

2. Overview Regulatory environment Ensure regulators have the resources they need Productive communication between agency staff and industry – What can industry do to improve the process?

3. Uncertain Regulatory Environment Ex. uncertainty about ozone in Uinta Basin – Winter ozone science, which emissions form ozone – EPA and state non-attainment timeline – Requirements post non-attainment designation A continuous stream of prosed rules creates an uncertain environment for future development –Measure the effectiveness of current rules before proposing new ones –Allow time for technology development and innovation in methods for reducing environmental impact

4. Regulatory Environment on Public Lands Conflicting or duplicative rules –Ex. EPA, BLM, states, and local governments all have rules or conditions for air emissions –Respect statutory authority of various agencies

5. Resources for Regulators

6. BLM Pilot Office Reauthorization The Energy Policy Act of 2005 designated 7 Field Offices Rather than seven static pilot offices, a flexible system whereby 50% of the $6,500 APD fee remains at the FO of origin to ensure funding is commensurate with volume Funds may be used only for minerals leasing and permitting activity To prevent the past practice of using Pilot Office revenues to reduce oil and natural gas program appropriations, FO funding is established as a baseline in the BLM budget with the APD fees as a supplement to the baseline operations, not a substitute Rep. Bishop and Sen. Tom Udall working on legislation

7. What Can Industry Do to Improve the Process?

8. Leasing 101 Our members met with BLM Wyoming State Office for a Leasing 101 workshop Helps us ensure our information to BLM is correct and complete through entire process Build and maintain relationships with BLM staff to quickly address issues in applications

9. Permitting 101 Our staff is planning permitting 101 workshops later in 2014 Will cover permitting and NEPA process Would like to have Leasing and Permitting 101s in other states

10. Thank You