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BLM Oil and Gas Overview

Scott F. ArcherUSDI – BLMNational Science &Technology Center

September 13, 2007

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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%)

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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.

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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

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• State Acres Leased BLM 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 <

Currently Leased

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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

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Leasing

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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

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Royalties

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NEPA Documents

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Modeling Domain

Analysis Protocol

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Existing Oil and Gas Development in the San Juan Basin

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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

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Near-Field Receptor Grid

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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.

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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)

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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

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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

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Alaskan Inspection and Enforcement

For more information

Contact

Scott F. Archer

Senior Air Resource Specialist

303.236.6400

scott_archer@blm.gov