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Planning for Stakeholder Involvement in a Coal Bed Methane Project

Planning for Stakeholder Involvement in a Coal Bed Methane Project. Scot Anderson Davis Graham & Stubbs LLP Denver, Colorado. The lesson from the field – most stakeholders have learned how to assure their role in project approval process.

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Planning for Stakeholder Involvement in a Coal Bed Methane Project

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  1. Planning for Stakeholder Involvement in a Coal Bed Methane Project Scot AndersonDavis Graham & Stubbs LLPDenver, Colorado

  2. The lesson from the field – most stakeholders have learned how to assure their role in project approval process

  3. The Business Case for Planning for Stakeholder Involvement • Efficient Project Approval • Avoid Delay • Avoid Litigation Costs • Good Will • Access to Financing • Meet Legal Requirements • Comply with Company Business Policies

  4. Identifying Stakeholders in CBM Projects • Governmental • Federal – BLM, EPA, MMS, FWS, Forest Service • State – Oil and Gas regulations, land agencies • Local – County and City • Tribal • Each has its own motivations, interests, and expectations.

  5. Identifying Stakeholders in CBM Projects Landowners Mineral lessors Surface owners Nearby landowners Neighbors

  6. Identifying Stakeholders in CBM Projects Competing Interests • Owners of other minerals • Owners of other oil and gas rights • Water rights owners

  7. Identifying Stakeholders in CBM Projects Other Interests • Environmental Groups • Business Interests • Competitors • Shareholders

  8. Evaluating Stakeholder Interests Stakeholder Types • Supportive • Marginal • Opposing • Mixed Blessing

  9. Evaluating Stakeholder Interests • What is the stakeholder’s stake in a project? Is it legitimate? • Project proponent’s perception may not be the same as public perception • What is the power of a stakeholder? • What is the proponent’s social responsibility to the stakeholder? • Direct interest, indirect interest, or general interest?

  10. Assessing Stakeholder Role 1. Stakeholders with a veto 2. Stakeholders with a right to be compensated 3. Stakeholders with a right to participation 4. Stakeholders with a right to consultation 5. Stakeholders who should be informed Source: Breaking New Ground, Report of the Mining, Minerals and Sustainable Development Project at 58 (2002)

  11. Use a table to assess stakeholder role

  12. EnLibra Enlibra Principles • National Standards, Neighborhood Solutions - Assign Responsibilities at the Right Level • Collaboration, Not Polarization - Use Collaborative Processes to Break Down Barriers and Find Solutions • Reward Results, Not Programs - Move to a Performance- Based System • Science For Facts, Process for Priorities - Separate Subjective Choices from Objective Data Gathering • Markets Before Mandates - Pursue Economic Incentives Whenever Appropriate • Change A Heart, Change A Nation - Environmental Understanding is Crucial • Recognition of Benefits and Costs - Make Sure All Decisions Affecting Infrastructure, Development and Environment are Fully Informed • Solutions Transcend Political Boundaries - Use Appropriate Geographic Boundaries for Environmental Problems

  13. Some Principles of Stakeholder Involvement • Plan ahead – don’t let opponents gain leverage because you have run out of alternatives • Get information out in a manageable, transparent format • Be prepared to tell your story • Be prepared to solve legitimate problems • Think against yourself – what will opponents say about your proposal • All politics is local

  14. Be Ready for these Questions: • Produced Water • Disposal • High SAR • Effect on groundwater and water rights • Road Building • Noise • Air Pollution • Waste Water Pits • Trucks and Traffic • Hydraulic Fracturing

  15. Some positives to accentuate: • Taxes, royalties • Low cost production • The need for energy • CBM’s ability to satisfy that need in the near term • Directional drilling • Environmental protection

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