Document 7Ok8raD8M4Y979Zeb8ZGjY0vB

INTERNAL DELIBERATIONS - DO NOT DISTRIBUTE Input into July Draft E.O. 13783 Energy Report I. Executive Summary II. Recommendations for Alleviating or Eliminating Burdensome Actions A. Climate Change Actions B. Mitigation Actions C. Coal-Related Policy Instruction Memorandum (IM) 2014-156, "Supplemental Guidance on Processing Royalty Rate Reduction Applications " 1. Description. This IM informs BLM State Directors that they must provide the BLM Washington Office (WO) with ajustification when seeking a royalty rate reduction (RRR). A copy ofthe State's draft decision must accompany thejustification when requesting WO concurrence. Further, this IM augments and reiterates the existing policy for processing RRR applications. This policy has resulted in a delay to the processing ofRRR applications as it has imposed an additional level ofreview of the BLM State Directors ' decisions. However, the BLM should assure that all RRRs meet the necessary regulatory standards, considering the public and Congressional scrutiny surrounding these actions. 2. Opportunities to Address Burden or Other Issues of Concern. This policy is currently under review and may undergo revision to better define the process and offer a streamlined approach that shortens the review period. The BLM expects to produce a revised IM in the first quarter ofFY 2018. 3. Anticipated Benefits. The BLM expects the primary benefits to be a more efficient process that maintains an adequate review of the RRR application and a greater measure of certainty The certainty will improve industry applicants ' abilities to confidentlyprepare mine operations and coal production planning, because a response will take weeks to months rather than months to years. 4. Measuring Success. The BLM will measure success by reduced confusion and RRR application review timeframes, assuming all necessary information has been provided by the proponent. 5. Interim Methods. There are no variances or waivers available to provide interim compliance on RRR requests. However, the WO and the BLM States can work together to prioritize the existing RRR requests and identify an approach that will move the existing RRR requests along as quickly as can be expected with existing staff, workload, andpriorities while concurrently developing the revisedpolicy. 1 INTERNAL DELIBERATIONS - DO NOT DISTRIBUTE Policy IM2017-035, "Publicly A ccessible Bureau ofLand Management Websites for Information Regarding Federal Coal Program Leasing Exploration Licensing and Royalty Rate Reductions " 1. Description. Through this IM, the BLM responded to stakeholder suggestions for improved access to information on the Federal coal program, and replaced WO-IM2014-159 titled "Publicly Accessible Bureau ofLand Management Websites for Coal Leasing Information. " The 2017 IM directs BLM offices to post and update specified Federal coal program information on BLMpublicly accessible websites, including: (1) information about Federal coal lease applications and leases, lease modification applications, and lease modifications; (2) information about exploration licensing applications and exploration licenses; (3) information about RRR applications; and (4) summary information on the Federal coal program. Initially, BLM coal specialists will need to devote time to gathering existing coal leasing data for compilation and posting to the web; however, the BLM does not anticipate that the time involved will have a long-term measurable impact on the specialists ' regularjob functions related to maintenance and processing of coal leases and applications. 2. Opportunities to Address Burden or Other Issues of Concern. The BLM's new policy lifted the burden on responding to public and other requests for coal information, including Freedom ofInformation Act (FOIA) requests, which this policy will minimize and largelyprevent. The BLM expects to complete implementation ofthe policy in the first quarter ofFiscal Year (FY) 2018. 3. Anticipated Benefits. The new IM will allow BLM specialists to work on coal applications more, because they will be working on information requests less. The new policy will have direct benefits to coal applicants by reducing the time it takes to fully review their applications. 4. Measuring Success. The BLM will measure success by quantifying the number of time-consuming requests before and after public availability of the coal program information. 5. Interim Methods. This policy is internal to the BLM and results from the burden of responding to public and other requests for coal program information. As such, there are no compliance requirements specific to the coal program and coal proponents. During the interim period, the BLM will continue to have coal program staff use work hours to appropriately respond to each coal program information request that the BLM receives. Policy IM2017-037, "Waste Mine Methane " 1. Description. This IM establishes national policies and processes for voluntary activities by operators to capture waste mine methane from underground coal or other solid mineral mines. This policy will allow waste mine methane to be put to productive use, including offering it for sale, instead of venting it to the 2 INTERNAL DELIBERATIONS - DO NOT DISTRIBUTE atmosphere. All of the activities outlined in the policy are voluntary and will only be implemented if both the BLM and the mine operator agree. If the BLM and operator agree to implement the activities, the operator could incur additional costs. However, the BLM assumes that the operator would only choose to implement the activities ifthe benefits outweigh the costs. 2. Opportunities to Address Burden or Other Issues of Concern. This policy will likely not create a significant burden on the proponent because it provides for voluntary compliance based on mutual agreement between the proponent and the BLM. The proponent will likely not assume voluntary compliance without economic benefit to the proponent's bottom line. The BLM anticipates completing review and revision ofthis policy in the first quarter ofFY2018. 3. Anticipated Benefits. The policy may encourage companies to add profit to their operations, provide the Federal government with additional gas production royalties, and reduce the level ofmethane vented to the atmosphere. 4. Measuring Success. The BLM will measure and evaluate the frequency with which companies explore the potential use of voluntary compliance to enhance the profitability of their coal mining operations over the next decade or so. 5. Interim Methods. Coal mining companies maypropose methane capture operations as a part of their plan of operation at any time. The BLM could require variance or waivers on interim compliance. D. Indian Energy Actions - not applicable to WO-300 E. Energy-Related Information Collections under the Paperwork Reduction Act- not applicable to WO-300 F. Grant Programs - not applicable to WO-300 G. Restrictions in Acquisition Policy and Regulations - not applicable to WO300 H. Other Actions that Potentially Burden Development or Use of Energy Regulation, Oil and Gas; Hydraulic Fracturing on Federal and Indian Lands, 80 Fed. Reg. 16128 I. Description. The BLMfinal rule on hydraulic fracturing serves as a complement to update existing regulations designed to ensure the environmentally responsible development of oil and gas resources and protection of other downhole zones on Federal and Indian lands. The BLM initiated the rule in response to the increasing use and complexity ofhydraulic fracturing coupled with advanced horizontal drilling technology. This technology has opened large portions ofFederal and Indian lands to oil and gas development. Some provisions of the rule add regulatory burdens that 3 INTERNAL DELIBERATIONS - DO NOT DISTRIBUTE unnecessarily encumber energyproduction, constrain economic growth, andprevent job creation. Portions of the rule also overlap with current Environmental Protection Agency provisions. 2. Opportunities to Address Burden or Other Issues of Concern. Due to on-going litigation and court-ordered stay, this regulation has never gone into effect and therefore has not become a burden on energy-producers. This regulation is planned to be rescinded. 3. Anticipated Benefits. In states that currently regulate hydraulic fracturing proponents will be under only one set ofregulations and, as such, the rule has the potential to offer a reduction in the regulatory burden by being under one regulation rather than two. 4. Measuring Success. Since the regulation was never implemented, there is not prior experience with which to compare. The situation will be status quo with the existing regulations that have been in place for over twentyyears. 5. Interim Methods. The interim state is the status quo of the existing regulations. These are very simple regulations regarding hydraulic fracturing and no particular variances, waivers or interim compliance measures are required. Regulation, Oil and Gas; Waste Prevention, Production Subject to Royalties, and Resource Conservation, 81 Fed. Reg 83008 1. Description. The "Venting & Flaring Rule," formally known as the "Waste Prevention, Production Subject to Royalties, and Resource Conservation" rule, replaced the requirements related to venting flaring and royalty-free use ofgas contained in the 1979 "Notice to Lessees and Operators of Onshore Federal and Indian Oil and Gas Leases, Royalty or Compensation for Oil and Gas Lost" (NTL4A). The BLM codified the new rule at new 43 CFR subparts 3178 and 3179. The recent rulemaking includes provisions to make regulatory and statutory authority consistent with respect to royalty rates thatmay be levied on competitively offered oil and gas leases on Federal lands. Some provisions of the rule add regulatory burdens that unnecessarily encumber energyproduction, constrain economic growth, and preventjob creation. Portions of the rule also overlap with current Environmental Protection Agencyprovisions. 2. Opportunities to Address Burden or Other Issues of Concern. To reduce the regulatory burden on the energy industry, the BLM is revising the regulation to delay the phased-in implementation dates. This will provide industry additional time to plan for and engineer responsive infrastructure modifications that will comply with the regulation. The BLM expects to complete the revision of the regulation in the fourth quarter ofFY 2018. 3. Anticipated Benefits. Because the revised regulation will provide significant additional phase-in time to oil andgas operators, the BLM expects industry to have 4 INTERNAL DELIBERATIONS - DO NOT DISTRIBUTE sufficient time to design and acquire compliant infrastructure that will lower the cost of compliance and spread that cost over more time. 4. Measuring Success. The BLM will measure success in reducing the burden from the Waste Prevention regulation by industry acceptance and work with industry to develop metrics, including key timelines or benchmarks. 5. Interim Methods. The completed regulation provided a phase-in period for waste prevention requirements which has not expired. The revised regulation provides for a longer phase-in of the waste prevention requirements. No additional variances or waivers ofinterim measures are needed beyond those provided in the regulation. Policy, Oil and Gas; IM 2010-117, "Oil and Gas Leasing Reform - Land Use Planning and Lease Parcel Reviews " 1. Description. This IM establishes a process for ensuring orderly, effective, timely and environmentally responsible leasing of oil and gas resources on Federal lands. This IM was intended to create more certainty and predictability protect multipleuse values when the BLM makes leasing decisions, provide for consideration of natural and cultural resources as well as public involvement with an awareness of the surrounding land ownership. The BLM intended the IM to reduce the backlog of unissued leases. The IM has resulted in longer time frames to provide analysis and responses to protests and appeals, as well as longer lead times for BLM Districts to clear parcels for sale. It has also resulted in increased workload and staffing needs to conduct additional upfront environmental analysis. 2. Opportunities to Address Burden or Other Issues of Concern. The BLMhas undertaken an effort to revise the leasing reform policy and to streamline the process, from receiving an Expression ofInterest to competitively offering the nominated acreage in a lease sale. Under leasing reform, the process can last up to 16 months and sometimes longer from acres nominated through offered at a lease sale. The BLMis examining ways to significantly reduce this time. The BLMplans to have completed revising the leasingprocess in the first quarter ofFY 2018. 3. Anticipated Benefits. A shorter time interval from nomination to sale will reduce the amount of time that nominated acreage is in the BLM's hands and likely reduce the number ofnominated acres awaiting competitive sale at anygiven moment. This will more quicklyprovide industry a level of certainty on the acreage theyhold, allowing industry to plan exploration or production strategies earlier, and to be flexible in responding to changing market conditions. 4. Measuring Success. The reduction in the average time from acreage nomination to offering at sale will be BLM's measure ofsuccess. The BLM does not control what acreage industry nominates because industrymarket conditions can fluctuate dramatically up and down; therefore, total nominated acreage awaiting sale is not likely to be a measure ofsuccess. 5 INTERNAL DELIBERATIONS - DO NOT DISTRIBUTE 5. Interim Methods. Until the BLM can complete the policy revision, the BLMis setting quarterly lease sale acreage targets to address the acreage currently nominated. The BLMis also identifying ways to augment staffsupport forpotential sales in those offices with the greatest numbers ofacres nominated. Policy, Oil and Gas; IM 2013-101, "Oil and Gas Leasing Reform - Master Leasing Plans (MLPs) " 1. Description. This IM announces the incorporation ofMaster Leasing Plans (MLP), further explained in Chapter V of the BLM Handbook H-1624-1, titled "Planning for Fluid Mineral Resources." The IM establishes a process for integrating an MLP into the land use planningprocess. The BLMhas extended this IMseveral times while the BLM completes the public scoping and analysis for MLPs. In addition, many areas previously open to leasing have also been removed from leasing in recentyears through the MLPprocess. 2. Opportunities to Address Burden or Other Issues of Concern. The BLMhas undertaken an effort to revise the leasing reform and MLPpolicy and to re-establish the BLMField Office Resource Management Plans (RMP) as the source oflands available for fluid minerals leasing The BLM is currentiy evaluating existing MLP efforts with the goal ofending this approach. The BLM expects to rescind this IM and complete the revision of the above BLM Handbook, as well as any other relevant BLMhandbooks, in the first quarter ofFY2018. 3. Anticipated Benefits. Because this change will re-establish the RMP as the source ofland allocation decisions for fluid minerals, it will result in less National Environmental Policy Act (NEPA) analysis and a shorter timeframe for acreage nominations to make it to a competitive lease sale. Since extra time and NEPA analysis adds to uncertainty for industry, removing these process steps has the effect ofdecreasing uncertainty 4. Measuring Success. The primary measure ofsuccess in removing regulatory burden from the rescission of the MLPpolicy will be in the elimination ofrelated nominated acreage sale deferral pending completion ofNEPA. While there will continue to be acreage sale deferrals for various reasons, completion ofMLP NEPA will no longer be one of them. The time frames will be shorter. 5. Interim Methods. There are no interim compliance requirements, waivers or variances needed or that would really help. However, BLM's review ofMLP efforts will result in the cancellation ofat least those in the verypreliminary stage. Policy, Oil and Gas; IM2013-177, "National Environmental Policy Act (NEPA) Compliance for Oil and Gas Lease Reinstatement Petitions" 1. Description. This IM directs all BLM oil and gas leasing Field Offices to: 1) ensure RMP conformance; 2) evaluate the adequacy of existing NEPA analysis and 6 INTERNAL DELIBERATIONS - DO NOT DISTRIBUTE documentation; and 3) complete any necessary new or supplemental NEPA analysis and documentation before approving a Class I or Class II oil and gas lease reinstatementpetition. This IMhas resulted in additional analysis and review time that often involves another Surface Management Agency and, in some instances, has led to adding new lease stipulations prior to lease reinstatement. 2. Opportunities to Address Burden or Other Issues of Concern. The lease reinstatements were once at the level ofa ministerial review. IM2013-177 changed that in significant ways, resulting in additional NEPA review and significantly greater timeframes for completing the reinstatement. Rescinding this policy will greatly reduce timeframes to make decisions on lease reinstatement requests. BLM expects to complete review of this policy in the first quarter ofFY 2018. 3. Anticipated Benefits. BLM expects that changes to this policy will place the emphasis back on existing NEPA analysis and information, which will significantly shorten the time it takes to consider a lease reinstatement request. The policy changes will provide greater certainty and reduced expense for energy development companies. 4. Measuring Success. The BLM will measure the reduction in burden in terms ofthe average time it takes to consider a complete lease reinstatement request. 5. Interim Methods. Similar to MLPs, in the interim, the BLMmust identify and evaluate where each current lease reinstatement request is to understand the degree to which it is possible to expedite its consideration. There are no other interim measures, waivers or variances that are relevant to the process. Regulation, Oil and Gas; Onshore Orders Nos. 3, 4 and 5 1. Description. These three concurrent rulemakings updated and replaced Onshore Orders for site security, oil measurement, and gas measurement regulations that had been in place since 1989. The recent rulemakings resulted in new site security, oil measurement, and gas measurement regulations for onshore Federal and Indian oil and gas production and are codified in the Code ofFederal Regulations at 43 CFR part 3170. External and internal oversight reviews prompted these rulemakings and found that many ofthe BLM's production measurement and accountabilitypolicies were outdated and inconsistently applied. The new rules also address some of the Government Accountability Office concerns for high risk with regard to the Department's production accountability. Combined, the new regulations improve the BLM's ability to ensure accurate measurement, accountability andproper reporting of oil and gas produced from Federal and Indian land, to ensure that taxpayers and Indian tribes receive their fair share ofroyalty due. The new regulations also provide a process for approving new technology that meets defined performance goals. 7