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Regulatory Uncertainty and Production Impacts

Regulatory Uncertainty and Production Impacts. Duane Zavadil Bill Barrett Corporation. Land Ownership. APDs Waiting. Resource Area # Pending APDs Days Pending. Buffalo 1256 293 Farmington 187 321 Pinedale 119 189 Vernal 175 189.

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Regulatory Uncertainty and Production Impacts

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  1. Regulatory Uncertainty and Production Impacts Duane Zavadil Bill Barrett Corporation

  2. Land Ownership

  3. APDs Waiting Resource Area # Pending APDs Days Pending Buffalo 1256 293 Farmington 187 321 Pinedale 119 189 Vernal 175 189

  4. “Optimistic” Time Requirements for NEPA Compliance 1 year 2 years Categorical Exclusion or DNA 2 weeks to 6 months Single Well/ROW EA 6 months $2-3 K Small Exploratory Or Development EA 1 year Field Development EIS 2 years Large Field EIS or RMP 2 ½ + years

  5. Cost of NEPA Compliance $2.5 MM $1-2 MM $250 K $20 K $2-3 K

  6. Photo by: Robert Mueller Other “Multiple Use” Resources • Archeological Resources • Cultural Resources • Paleontological Resources • Threatened and EndangeredSpecies • Species of Special Concern • Visual Resources • Hunting • Recreational Vehicles • Raptors • Soils • Range/Grazing • Air Quality • Water Quality • Flood Plains • Riparian Areas • Prime and Unique Farmland • Wild and Scenic Rivers • Wilderness and WildernessStudy Areas • Aquatic Species / Fishing • Wild Horses • Areas of CriticalEnvironmental Concern

  7. Typical Seasonal Restrictions J F M A M J J A S O N D Mule Deer Wintering Elk Wintering Mule Deer Fawning Elk Calving Sage Grouse Mating Raptor Nesting Spotted Owl Nesting Burrowing Owl Nesting Big Horn Sheep Lambing Sage Grouse Wintering Mountain Plover Nesting Pending Southwest Flycatcher Nesting Dessert Tortoise Moose No Disturbance

  8. Anti-Oil and Gas Spending Local Groups: Western Organization of Resource Councils $757,000 Northern Plains Resource Council $ 864,000 Powder River Basin Resource Council $296,000 Greater Yellowstone Coalition $1,815,000 San Juan Citizens Alliance $177,531 Oil and Gas Accountability Project $262,000 Wyoming Outdoor Council $661,000 Southern Utah Wilderness Alliance $1,890,000 Total $7,099,000 (2001 Tax Returns)

  9. Anti-Oil and Gas Spending National Groups: Sierra Club $75,440,000 Earth Justice $17,965,000 Natural Resource Defense Council $55,697,000 Wilderness Society $24,119,000 Total $173,221,000 (2001 Tax Returns)

  10. Cumulative Impacts • Supply Shortages • Limited Capital Availability • Equity Devaluation • Drainage/Inefficient Production • Disproportionate State and Fee Production • Inadequate Pipeline Capacity/Basis Differential Spikes

  11. Active Rig Count

  12. Current Federal Energy Production Efforts Rocky Mountain Energy Council White House Task Force on Energy Streamlining Energy-Oriented Political Appointees Natural Gas Supply Hearings Energy Bill Provisions? Oil and Gas Instructional Memoranda(6) Department of Interior’s Implementation Plan for President’s Energy Policy WIA Settlement

  13. Needed Actions • Affirmative Support of Energy Development • Encourage Market Solutions • Reverse Engineer Regulatory Capacity • Employ Private Sector Models

  14. Improving Federal Lands Access Employ Private Sector Model • Establish Production Goals and Reverse Engineer Organization • Create Group to Understand and Promote Development • Reorganize to Separate Regulatory and Development Roles • Perform “Spec” NEPA for Exploratory Activities • Coordinate/Negotiate with Sister Agencies • Allocate a Portion of Royalties to Promotion/Management • Production Incentives

  15. Improving Federal Lands Access • Prompt Decision Making • Resource Specialist Prioritization • Mineral Staffing • State-Wide/Region Wide NEPA Teams • NEPA/FONSI Guidance Policy • Energy Education • Final Resolution of Wilderness Study Areas

  16. State Regulatory Reforms • Strengthen and Streamline NPDES Program • Resolve Interstate Issues with Montana • Establish “Fixed” Water Quality Targets • Confirm Right of In-Stream Flow • -Appropriate Organization, Staffing, and Capabilities • -Monitor and Adapt

  17. State Regulatory Reforms (continued) • Increase “Responsiveness” of Air Quality Program • Increase Flexibility For Movement and • Replacement of Compressors and Dehys • Reduce Permit Processing Times • Employ General Permits for Minor Sources • -Monitor and Adapt

  18. Industry Responsibilities • Agency Involvement • Political Advocacy • Public Acceptance

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