BLM Oil and Gas Overview

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. 13211 & 13212 made energy Development No. 1 Priority for Federal Agencies • Oil and Gas Production: • . 1920 – 2006 10 Billion bbl – 67 Trillion cf • . 2006 0.14 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. Currently Leased • StateAcres LeasedBLM Revenue • AK underway 81% • CO 4.6 Million 11 • MT 4.2 Million 4 • NM 5.4 Million 2 • WY 14 Million 1.5 • UT 3.8 Million < • NV 2 Million <

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) • AK 3 NPR-A (NW, South, NE) • AZ 3 • CA 7 • CO 8 NSJB, Roan, SJ FMP/RMP, WRRA • ID 6 • MT 3 Billings (Completed Powder River Basin) • NV 1 (Completed Las Vegas Plan) • NM 2 (Completed Farmington) • OR/WA 2 • UT 6 Vernal • WY 5 All 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

14. CO/NM Air Quality Impact Analyses • Southern Ute Indian Tribe CBM (SUIT/BLM/BIA) 2,000 existing + 420-1,300 new wells NOI 9/1995 - Draft 1/2001 - Final 8/2002 ROD 10/2002 • Farmington RMP (BLM/BOR/FS) 18,000 existing + 10,000-13,275 new wells NOI 8/2000 - Draft 6/2002 - Final 3/2003 ROD 9/2003 • Northern San Juan Basin CBM (BLM/FS) 300 existing + 120-500 new wells NOI 4/2000 - Draft 6/2004 – Final 8/2006 ROD 4/4/2007

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/CO Four Corners Air Quality Task Force • MT/SD/WY Interagency Working Group – Air Quality Task Force • WY Jonah Interagency Mitigation & Reclamation Office – Air Quality Monitoring Plan • UT Unitah Basin Air Quality Study

21. Alaskan Inspection and Enforcement For more information Contact Scott F. Archer Senior Air Resource Specialist 303.236.6400 scott_archer@blm.gov