MAXIMIZE YOUR MAXIMIZE YOUR OPPORTUNITIESOPPORTUNITIES

JUMPSTART YOUR PROJECTJUMPSTART YOUR PROJECT

OPPORTUNITIESOPPORTUNITIES

How will you gain project approval? How will you gain project approval?

((Pre[NEPA]-planningPre[NEPA]-planning))

Why do you want to do it? Why do you want to do it?

((Purpose and NeedPurpose and Need))

What do you want to do?What do you want to do?

((Project DescriptionProject Description))

PRE-PLANNINGPRE-PLANNINGFrom concept to project definition…From concept to project definition…

internal first stepsinternal first steps

Develop BIG picture description of future project.Develop BIG picture description of future project.– Project area location/definition.Project area location/definition.– How many wells? Surface density? Spacing?How many wells? Surface density? Spacing?– Seismic: source line miles, types of sources.Seismic: source line miles, types of sources.

Explain Explain rationalerationale behind big picture description. behind big picture description.– Reservoir characteristics.Reservoir characteristics.– Area-specific eArea-specific emerging technologies (directional/horizontal merging technologies (directional/horizontal

drilling).drilling).– Varying mineral ownerships/surface owners, collocated wells.Varying mineral ownerships/surface owners, collocated wells.

Determine operational capacities Determine operational capacities time frame for project. time frame for project.– # of drill rigs in operation, etc.# of drill rigs in operation, etc.– Seismic: survey crew/helicopter/data acquisition crew Seismic: survey crew/helicopter/data acquisition crew

availability.availability.

PRE-PLANNINGPRE-PLANNING

Initiate agency contact - objectivesInitiate agency contact - objectives

To secure agency buy-in and lay groundwork for expedited To secure agency buy-in and lay groundwork for expedited project approval.project approval.

Preliminary knowledge of issues as seen by managing Preliminary knowledge of issues as seen by managing agency.agency.

Demonstrate company’s understanding of resource issues.Demonstrate company’s understanding of resource issues.

Better ability to refine scope of project and project time Better ability to refine scope of project and project time frame.frame.

Suggest a preferred NEPA approach.Suggest a preferred NEPA approach.

Confirm project consistency with land use plan.Confirm project consistency with land use plan.

Value / positive result depends on agency/company culture Value / positive result depends on agency/company culture and staff.and staff.

PRE-PLANNINGPRE-PLANNINGInitial (BIG picture) meetingInitial (BIG picture) meeting

Contact likely lead agency first, then meet with Contact likely lead agency first, then meet with allall involved agencies.involved agencies.

Explore possible interagency MOU, if several Explore possible interagency MOU, if several agencies.agencies.

Bring project description Bring project description overview overview and maps.and maps.

Discuss NEPA contractor selection in preparation for Discuss NEPA contractor selection in preparation for next next meeting.meeting.

Review agency approval process steps Review agency approval process steps in detail, with in detail, with time linestime lines..

Identify possible sources of delays (example: NOI or Identify possible sources of delays (example: NOI or NOA review, Section 7 consultation).NOA review, Section 7 consultation).

PRE-PLANNINGPRE-PLANNINGResultsResults

Viability of scope and timing for project.Viability of scope and timing for project.

Identify most obvious sources of delay.Identify most obvious sources of delay.– Funding opportunities.Funding opportunities.– Staff support.Staff support.

Confirmation of land use plan consistency.Confirmation of land use plan consistency.– If not, agency determines if project warrants additional If not, agency determines if project warrants additional

consideration.consideration.– Plan amendment/plan revision/new plan needed.Plan amendment/plan revision/new plan needed.– Or, modify project to conform to scope of the land use Or, modify project to conform to scope of the land use

plan.plan.

Assessment of agency cooperation / enthusiasm and its Assessment of agency cooperation / enthusiasm and its willingness to work together to secure project approval.willingness to work together to secure project approval.

Introduction of key players: POCs within agency and Introduction of key players: POCs within agency and company, possible cooperating agencies.company, possible cooperating agencies.

PURPOSE AND NEEDPURPOSE AND NEEDPurposePurpose: Agency objectives for considering : Agency objectives for considering a non-agency action.a non-agency action.– Regulatory framework for consideration of Regulatory framework for consideration of

proposed action and other resource objectives.proposed action and other resource objectives.

NeedNeed: Company objectives: Company objectives– Who, what ,why, where, when.Who, what ,why, where, when.– Describe resource opportunities or resource Describe resource opportunities or resource

problems.problems.

PURPOSE AND NEEDPURPOSE AND NEEDWhy is the P&N important?Why is the P&N important?

Basis of alternatives evaluation.Basis of alternatives evaluation.

““Purpose” provides the basis for development of Purpose” provides the basis for development of alternatives to Proposed Action by relating it to alternatives to Proposed Action by relating it to other agency objectives.other agency objectives.

““Need” sets the minimum standards that the Need” sets the minimum standards that the alternatives must meet.alternatives must meet.

Fully analyzed alternatives Fully analyzed alternatives must must meet the P&N.meet the P&N.

ApprovedApproved alternative alternative must must meet the P&N.meet the P&N.

Cannot preclude legitimate, reasonable Cannot preclude legitimate, reasonable alternatives.alternatives.

PURPOSE AND NEEDPURPOSE AND NEEDExample: Geophysical P&NExample: Geophysical P&N

To determine whether to attempt to develop hydrocarbon To determine whether to attempt to develop hydrocarbon resources, pursuant to its rights under valid existing oil and gas resources, pursuant to its rights under valid existing oil and gas leases granted by the BLM.leases granted by the BLM.

To determine with greater certainty the potential for occurrence of To determine with greater certainty the potential for occurrence of oil and gas resources in geologic formations underlying the project oil and gas resources in geologic formations underlying the project area;area;

To verify and/or supplement the existing subsurface geologic data; To verify and/or supplement the existing subsurface geologic data;

To generate new data that may be used to more accurately locate To generate new data that may be used to more accurately locate potential reservoirs of commercial quantities of hydrocarbons in potential reservoirs of commercial quantities of hydrocarbons in areas where geophysical surveys and/or drilling have not areas where geophysical surveys and/or drilling have not occurred;occurred;

To eliminate some areas from future exploratory drilling, and To eliminate some areas from future exploratory drilling, and focus well-drilling activity in only those areas where the resource focus well-drilling activity in only those areas where the resource is most likely present; andis most likely present; and

To reduce unnecessary drilling and construction of associated To reduce unnecessary drilling and construction of associated roads, well pads, and other surface disturbances that would roads, well pads, and other surface disturbances that would otherwise be needed to evaluate the subsurface formations and otherwise be needed to evaluate the subsurface formations and possible reservoirs. possible reservoirs.

PURPOSE AND NEEDPURPOSE AND NEEDExample: Well exploration and development P&NExample: Well exploration and development P&N

Allow COMPANY to exercise its legal right to reasonably drill and Allow COMPANY to exercise its legal right to reasonably drill and develop its leaseholds and extract the leased hydrocarbons from develop its leaseholds and extract the leased hydrocarbons from the subsurface;the subsurface;

Add to the existing knowledge of the complex subsurface geology Add to the existing knowledge of the complex subsurface geology and reservoir characteristics of the Paradox fold and fracture belt;and reservoir characteristics of the Paradox fold and fracture belt;

Further define drilling and completion techniques necessary to Further define drilling and completion techniques necessary to produce hydrocarbons from reservoirs in the Paradox fold and produce hydrocarbons from reservoirs in the Paradox fold and fracture belt;fracture belt;

Provide additional data with which to evaluate future well spacing;Provide additional data with which to evaluate future well spacing;

Confirm or disprove the interpretation of seismic data obtained Confirm or disprove the interpretation of seismic data obtained from a 2001 geophysical survey;from a 2001 geophysical survey;

Provide additional data for use in evaluating the level of activity of Provide additional data for use in evaluating the level of activity of future drilling in the Paradox fold and fault system; future drilling in the Paradox fold and fault system;

Allow natural gas to be transported to a nearby mine where it Allow natural gas to be transported to a nearby mine where it would be utilized to operate the existing infrastructure; andwould be utilized to operate the existing infrastructure; and

Contribute to available domestic oil supply if the wells are Contribute to available domestic oil supply if the wells are productive.productive.

PROJECT DESCRIPTIONPROJECT DESCRIPTIONHow are you going to meet your P&N?How are you going to meet your P&N?

Development of a sDevelopment of a strategictrategic project plan may not project plan may not be straightforward.be straightforward.

Pre-planning can shape/modify the scope and Pre-planning can shape/modify the scope and time frame of the project.time frame of the project.

PD may be (PD may be (somewhatsomewhat) issue-driven.) issue-driven.

PROJECT DESCRIPTIONPROJECT DESCRIPTIONScope and time frame: Scope and time frame: Ask for what you want!Ask for what you want!

Initial project scope and time frameInitial project scope and time frame((companycompany) )

Land Use Plan consistencyLand Use Plan consistency

Approval time frame (agency)Approval time frame (agency)

Modified scope and time frame Modified scope and time frame (possible company re-appraisal)(possible company re-appraisal)

PROJECT DESCRIPTIONPROJECT DESCRIPTIONConceptual or site-specific?Conceptual or site-specific?

Approach determined by the scope of the project and flexibility of Approach determined by the scope of the project and flexibility of the project.the project.– ExampleExample: This EA discusses the purpose, need, and potential : This EA discusses the purpose, need, and potential

environmental impacts of drilling three exploratory oil and gas wells environmental impacts of drilling three exploratory oil and gas wells and is a site-specific analysis of potential impacts to the human and is a site-specific analysis of potential impacts to the human environment that may result from drilling 3 exploratory oil and gas environment that may result from drilling 3 exploratory oil and gas wells. The three wells were proposed under individual APDs.wells. The three wells were proposed under individual APDs.

– ExampleExample: The Company proposes to drill approximately 1,800 new : The Company proposes to drill approximately 1,800 new wells as infill wells to all productive formations beneath the project wells as infill wells to all productive formations beneath the project area. Of these proposed new wells, the company intends to drill area. Of these proposed new wells, the company intends to drill approximately 630 completions by either deepening an existing well approximately 630 completions by either deepening an existing well bore or by drilling a twin well on the existing pad.bore or by drilling a twin well on the existing pad.

Conceptual approach: Describe operational details in a broad way, Conceptual approach: Describe operational details in a broad way, but with as many details as possible.but with as many details as possible.

PROJECT DESCRIPTIONPROJECT DESCRIPTIONGeneral operational detailsGeneral operational details

Example:Example: Approximately 20 temporary staging areas would be Approximately 20 temporary staging areas would be located on public lands where the pipeline would cross a road. located on public lands where the pipeline would cross a road. The numbers and locations of staging areas on private lands are The numbers and locations of staging areas on private lands are yet to be determined. The preliminary locations of staging areas yet to be determined. The preliminary locations of staging areas on public lands would be chosen to result in the maximum use of on public lands would be chosen to result in the maximum use of existing disturbance; however the final determination of the existing disturbance; however the final determination of the number and location of the staging areas would be cooperatively number and location of the staging areas would be cooperatively chosen by the agency and the pipeline construction company.chosen by the agency and the pipeline construction company.

Example:Example: Gas will be transported from the wellhead via gathering Gas will be transported from the wellhead via gathering pipelines to two centralized compressor stations located within pipelines to two centralized compressor stations located within the project area but owned by Another Company. Each station the project area but owned by Another Company. Each station consists of two 1,500 HP compressors. The existing compressors consists of two 1,500 HP compressors. The existing compressors are expected to maintain acceptable pressure levels within the are expected to maintain acceptable pressure levels within the existing and new gathering system; however, additional existing and new gathering system; however, additional supplemental compression may be needed to accommodate supplemental compression may be needed to accommodate increased volume, throughput, and field pressure needs.increased volume, throughput, and field pressure needs.

PROJECT DESCRIPTIONPROJECT DESCRIPTIONThe NEPA analysis will consider the The NEPA analysis will consider the

most conservative option.most conservative option.

Example:Example: “Produced water will be trucked to 5 to “Produced water will be trucked to 5 to 10 evaporation ponds, each requiring 10 acres, 10 evaporation ponds, each requiring 10 acres, for disposal.”for disposal.”

Example:Example: “The Company proposes to drill “The Company proposes to drill between 2,000 and 3,400 new well bores on new between 2,000 and 3,400 new well bores on new and existing pads. Between 1,000 and 1,700 new and existing pads. Between 1,000 and 1,700 new well pads would be required.”well pads would be required.”

Within each example, which scenario will be Within each example, which scenario will be analyzed?analyzed?

PROJECT DESCRIPTIONPROJECT DESCRIPTIONInclude “existing environment”Include “existing environment”

Date, “as of…,” sets baseline.Date, “as of…,” sets baseline.

Keep it current.Keep it current.

Exploratory or well development projectExploratory or well development project: Number : Number of active wells, number of current locations, miles of active wells, number of current locations, miles of access road, current produced water disposal, of access road, current produced water disposal, gas and oil processing and disposition, remote gas and oil processing and disposition, remote monitoring, truck access/frequency.monitoring, truck access/frequency.

Geophysical projectGeophysical project: Wells (active and P&A), prior : Wells (active and P&A), prior seismic surveys, available roads.seismic surveys, available roads.

PROJECT DESCRIPTIONPROJECT DESCRIPTIONAddressing issuesAddressing issues

Applicant-committed environmental protection measures.Applicant-committed environmental protection measures.

Allow agency options for additional mitigation.Allow agency options for additional mitigation.

Include what makes sense.Include what makes sense.– Company will comply with all applicable rules, regulations, Company will comply with all applicable rules, regulations,

and guidelines.and guidelines.– Company will perform resource surveys as needed and Company will perform resource surveys as needed and

determined by the agency.determined by the agency.

Don’t promise too much (Don’t promise too much (at least initiallyat least initially).).– Company will pave 20 miles of county road needed for Company will pave 20 miles of county road needed for

access.access.– Company will perform offsite mitigation, as determined by Company will perform offsite mitigation, as determined by

the NEPA analysis.the NEPA analysis.

PROJECT DESCRIPTIONPROJECT DESCRIPTIONAlternatives ConsideredAlternatives Considered

Include them as part of your agency submission.Include them as part of your agency submission.

Helps the agency to formulate its own alternatives.Helps the agency to formulate its own alternatives.

Address the resources you know to be of concern.Address the resources you know to be of concern.

Explain your rationale in detail.Explain your rationale in detail.– ExampleExample: The Company considered an alternate pipeline : The Company considered an alternate pipeline

route that would increase the offset from a MSO nest route that would increase the offset from a MSO nest adjacent to the proposed route. The Company adjacent to the proposed route. The Company determined that it would be able to construct near the determined that it would be able to construct near the nest during certain times of the year and not affect the nest during certain times of the year and not affect the owls.owls.

Alternatives that you considered (but rejected) may be fully Alternatives that you considered (but rejected) may be fully analyzed in the NEPA document.analyzed in the NEPA document.

SUMMARYSUMMARYPre-planPre-plan: Approach the agency early.: Approach the agency early.

Purpose and needPurpose and need: Clear and detailed.: Clear and detailed.

Project descriptionProject description: Detailed, with operational : Detailed, with operational flexibility, up-front mitigation, and the alternatives flexibility, up-front mitigation, and the alternatives you you considered.considered.

Set a date for the official kickoff meeting.Set a date for the official kickoff meeting.

Bring P&N, project description, and Bring P&N, project description, and alternatives considered.alternatives considered.

Bring NEPA contractor if possible)Bring NEPA contractor if possible)

And you’re off…And you’re off…

MAXIMIZE YOUR MAXIMIZE YOUR OPPORTUNITIESOPPORTUNITIES