Document 914QN8wLr2KmMXpbQYzBamEDD

Gudance Document ABCDE Start Date Fnazaton (XX20XX) (XX20XX) Afected EO 13771 and or HghEst mate Agency Sub-agency RIN/Agency Referenced Identifier Recommendation (if applicable) Number Agency Action Title BLM Oil and Gas; Hydraulic Fracturing on Federal and Indian Lands, 80 Fed. Reg. 16128 Type of Agency Action Preliminary Summary Regulation The BLM final 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 of hydraulic fracturing coupled with advanced horizontal drilling technology. This technology has opened large portions of Federal and Indian lands to oil and gas development. Effects Some provisions of the rule add regulatory burdens that unnecessarily encumber energy production, constrain economic growth, and prevent job creation. Portions of the rule also overlap with current Environmental Protection Agency provisions. Timeframe Expected Start Date (XX/20XX) 03/2017 Expected Finalization (XX/20XX) 12/2017 Energy Industry Affected Oil BLM Waste Prevention, Production Subject to Regulation The "Venting & Flaring Rule" is formally the Waste Prevention, Production Subject to Royalties, and Resource Conservation rulemaking 05/201/ J6/2U18 Oil Royalties, and Resource Conservation, 81 Fed. that replaced the requirements related to venting, flaring, and royalty-free use of gas contained in the 1979 Notice to Lessees and Reg. 83008 Operators of Onshore Federal and Indian Oil and Gas Leases, Royalty or Compensation for Oil and Gas Lost (NTL-4A). These regulations are codified at new 43 CFR subparts 3178 and 3179. The recent rulemaking also includes provisions to make regulatory and statutory authority consistent with respect to royalty rates that may be levied on competitively offered oil and gas leases on Federal lands. Effects Some provisions of the rule add regulatory burdens that unnecessarily encumber energy production, constrain economic growth, and prevent job creation. Portions of the rule also overlap with current Environmental Protection Agency provisions. Identified in EO 13777 No Costs or Cost Savings (Present Value Monetized $millions/year in 2016 dollars) y .. Range, if available Low Estimate High Estimate 7 percent 3 percent 7 percent 3 percent 7 percent 3 percent Length of Time that Cost Savings Occur (in years) How Implementation will be Tracked Mandated by Necessary for the Public Interest Consistent with the Policy Set Forth in Section 1 of EO 13783 Required to be Reviewed -$20 -$24 -$12 -$14 -$27 -$32 10 Implementation will be tracked internally by the No Yes No Yes Bureau of Land Management. The point of contact will be Timothy Spisak. No N/A N/A $69 $101 $79 $115 10 Implementation will be tracked internally by the No Yes No Yes Bureau of Land Management. The point of contact will be Timothy Spisak. BLM IM 2010-117, Oil and Gas Leasing Reform - Policy Description The purpose of this IM was to establish a process for ensuring orderly, effective, timely, and environmentally responsible 06/2017 10/2017 Oil No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes Land Use Planning and Lease Parcel Reviews leasing of oil and gas resources on Federal lands. The leasing process established in this IM was intended to create more certainty and predictability, protect multiple-use 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 IM was also intended to reduce the backlog of unissued leases. Effects The IM has resulted in longer time frames to provide analysis and responses to protests and appeals, as well as longer lead times for districts to clear parcels for sale. It has also resulted in increased workload and staffing needs to conduct additional upfront environmental analysis. BLM IM 2013-101, Oil and Gas Leasing Reform - Policy Description This IM announces the incorporation of Master Leasing Plans (MLP), Chapter V, into H-1624-1 - Planning for Fluid 06/2017 10/2017 Oil No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes Master Leasing Plans (MLPs) Mineral Resources and establishes a process for integrating an MLP into the land use planning process Effects This IM has been extended lead times for leasing while the BLM completes the public scoping and analysis for Master Leasing Plans. In addition, many areas have also been removed from leasing in recent years through the MLP process. BLM IM 2013-177, National Environmental Policy Policy Description This IM directs all oil and gas leasing offices to 1) ensure Resource Management Plan conformance; 2) evaluate the 06/2017 09/2017 Oil No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes Act (NEPA) Compliance for Oil and Gas Lease adequacy of existing NEPA analysis and documentation; and 3) complete any necessary new or supplemental NEPA analysis and Reinstatement Petitions documentation before approving a Class I or Class II oil and gas lease reinstatement petition. Effects This IM has 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. BLM IM 2016-140, Implementation of Greater Sage- Policy Description This IM provides guidance on prioritizing implementation decisions for BLM oil and gas leasing and development, to be 06/2017 09/2017 Oil No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes grouse Resource Management Plan Revisions or consistent with Approved Resource Management Plan Amendments for the Rocky Mountain and Great Basin Greater Sage-grouse Amendments - Oil & Gas Leasing and Regions and nine Approved Resource Management Plans in the Rocky Mountain Greater Sage-grouse Region (collectively referred to as Development Sequential Prioritization the Greater Sage-grouse Plans). This IM applies to activities in the areas covered by both the Rocky Mountain and Great Basin Regions Records of Decision, issued by the BLM in September 2015. This IM also contains reporting requirements for communication between State Offices and the Washington Office. Effects This IM requires additional analysis and staff time to screen parcels and weigh potential impacts to the Greater Sage-grouse before the parcels are offered for leasing. It also requires additional analysis and staff time to process drilling permit approvals near Greater Sage-grouse areas. Onshore Orders Nos. 3, 4 and 5 Regulation Description These three concurrent rulemakings updated and replaced Onshore Orders for site security, oil measurement, and gas TBD TBD Oil 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 of Federal Regulations at 43 CFR part 3170. These rulemakings were prompted by external and internal oversight reviews that found many of the BLM s production measurement and accountability policies to be 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. Effects Combined, the new regulations improve the ability of the BLM to ensure accurate measurement, accountability, and proper reporting of oil and gas produced from Federal and Indian land in order to ensure that taxpayers and Indian tribes receive their fair share of royalty due. The new regulations also provide a process for approving new technology that meets defined performance goals. However, the regulations impose new cost burdens on operators. The cost estimates for each individual rule are as follows Order 3 $31.2 million in one-time costs, plus a $11.7 million increase in annual operating costs. The average compliance cost per entity (operator) for this rule is under $6,000 per year for the first three years after the rule becomes effective, and just over $3,000 per year thereafter. Order 4 $3.3 million in one-time costs, plus a $4.6 million increase in annual operating costs. The average compliance cost per entity (operator) for this rule isjust over $1,500 per year for the first three years after the rule becomes effective, and just over $1,200 per year thereafter. Order 5 $23.3 million one-time cost, plus $12.1 million increase in annual operating costs. The average compliance cost per entity (operator) for this rule isjust over $5,300 per year for the first three years after the rules becomes effective, and just under $3,300 per year after that. No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes BLM IM 2014-156, Supplemental Guidance on Policy Description This IM informs State Directors that they must provide the BLM Washington Office with a justification when seeking a 07/2017 09/2017 Coal No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes Processing Royalty Rate Reduction Applications royalty rate reduction (RRR). A copy of their draft decision must accompany the justification when requesting Washington Office concurrence. Further, this IM augments and reiterates the existing policy for processing RRR applications. Effects This policy has resulted in a delay to the processing of RRR applications as it has imposed an additional level of review of the BLM State Directors decisions. However, assuring that all RRRs meet the necessary regulatory standards is imperative considering the public and Congressional scrutiny surrounding these actions. BLM IM 2017-035, Publicly Accessible Bureau of Policy Description This IM responds to stakeholder suggestions for improved access to information on the Federal coal program, and replaces 07/2017 09/2017 Coal No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes Land Management Websites for Information the policy and guidance previously provided in WO-IM-2014-159, Publicly Accessible Bureau of Land Management Websites for Coal Regarding Federal Coal Program Leasing, Leasing Information. This IM directs BLM offices to post and update specified Federal coal program information on BLM publicly Exploration Licensing, and Royalty Rate accessible websites, including (1) information about Federal coal lease applications and leases, lease modification applications, and lease Reductions modifications; (2) information about exploration licensing applications and exploration licenses; (3) information about royalty rate reduction applications; and (4) summary information on the Federal coal program. Effects 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 regular job functions related to maintenance and processing of coal leases and applications. 1 of 2 BLM IM 2017-037, Waste Mine Methane Policy Policy Description Establishes national policies and processes for voluntary activities by operators to capture waste mine methane from 0 7/2017 10/201/ Coal No i'BD i'BD 'i'BD i'BD i'BD i'BD iBD iBD No Yes No Yes underground coal or other solid mineral mines. These policies will allow waste mine methane to be put to productive use, including offering it for sale, instead of venting it to the atmosphere. Effects 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, additional costs could be incurred by the operator. However, it is assumed that the operator would only choose to implement the activities if the benefits outweigh the costs. 2 of 2 Agency Sub-agency RIN/Agency Referenced Identifier Recommendation (if applicable) Number Agency Action Title BLM Oil and Gas; Hydraulic Fracturing on Federal and Indian Lands, 80 Fed. Reg. 16128 Type of Agency Action Preliminary Summary Regulation The BLM final 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 of hydraulic fracturing coupled with advanced horizontal drilling technology. This technology has opened large portions of Federal and Indian lands to oil and gas development. Effects Some provisions of the rule add regulatory burdens that unnecessarily encumber energy production, constrain economic growth, and prevent job creation. Portions of the rule also overlap with current Environmental Protection Agency provisions. Timeframe Expected Start Date (XX/20XX) 03/2017 Expected Finalization (XX/20XX) 12/2017 Energy Industry Affected Oil BLM Waste Prevention, Production Subject to Regulation The "Venting & Flaring Rule" is formally the Waste Prevention, Production Subject to Royalties, and Resource Conservation rulemaking 05/201/ J6/2U18 Oil Royalties, and Resource Conservation, 81 Fed. that replaced the requirements related to venting, flaring, and royalty-free use of gas contained in the 1979 Notice to Lessees and Reg. 83008 Operators of Onshore Federal and Indian Oil and Gas Leases, Royalty or Compensation for Oil and Gas Lost (NTL-4A). These regulations are codified at new 43 CFR subparts 3178 and 3179. The recent rulemaking also includes provisions to make regulatory and statutory authority consistent with respect to royalty rates that may be levied on competitively offered oil and gas leases on Federal lands. Effects Some provisions of the rule add regulatory burdens that unnecessarily encumber energy production, constrain economic growth, and prevent job creation. Portions of the rule also overlap with current Environmental Protection Agency provisions. Identified in EO 13777 No Costs or Cost Savings (Present Value Monetized $millions/year in 2016 dollars) y .. Range, if available Low Estimate High Estimate 7 percent 3 percent 7 percent 3 percent 7 percent 3 percent Length of Time that Cost Savings Occur (in years) How Implementation will be Tracked Mandated by Necessary for the Public Interest Consistent with the Policy Set Forth in Section 1 of EO 13783 Required to be Reviewed -$20 -$24 -$12 -$14 -$27 -$32 10 Implementation will be tracked internally by the No Yes No Yes Bureau of Land Management. The point of contact will be Timothy Spisak. No N/A N/A $69 $101 $79 $115 10 Implementation will be tracked internally by the No Yes No Yes Bureau of Land Management. The point of contact will be Timothy Spisak. BLM IM 2010-117, Oil and Gas Leasing Reform - Policy Description The purpose of this IM was to establish a process for ensuring orderly, effective, timely, and environmentally responsible 06/2017 10/2017 Oil No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes Land Use Planning and Lease Parcel Reviews leasing of oil and gas resources on Federal lands. The leasing process established in this IM was intended to create more certainty and predictability, protect multiple-use 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 IM was also intended to reduce the backlog of unissued leases. Effects The IM has resulted in longer time frames to provide analysis and responses to protests and appeals, as well as longer lead times for districts to clear parcels for sale. It has also resulted in increased workload and staffing needs to conduct additional upfront environmental analysis. BLM IM 2013-101, Oil and Gas Leasing Reform - Policy Description This IM announces the incorporation of Master Leasing Plans (MLP), Chapter V, into H-1624-1 - Planning for Fluid 06/2017 10/2017 Oil No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes Master Leasing Plans (MLPs) Mineral Resources and establishes a process for integrating an MLP into the land use planning process Effects This IM has been extended lead times for leasing while the BLM completes the public scoping and analysis for Master Leasing Plans. In addition, many areas have also been removed from leasing in recent years through the MLP process. BLM IM 2013-177, National Environmental Policy Policy Description This IM directs all oil and gas leasing offices to 1) ensure Resource Management Plan conformance; 2) evaluate the 06/2017 09/2017 Oil No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes Act (NEPA) Compliance for Oil and Gas Lease adequacy of existing NEPA analysis and documentation; and 3) complete any necessary new or supplemental NEPA analysis and Reinstatement Petitions documentation before approving a Class I or Class II oil and gas lease reinstatement petition. Effects This IM has 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. BLM IM 2016-140, Implementation of Greater Sage- Policy Description This IM provides guidance on prioritizing implementation decisions for BLM oil and gas leasing and development, to be 06/2017 09/2017 Oil No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes grouse Resource Management Plan Revisions or consistent with Approved Resource Management Plan Amendments for the Rocky Mountain and Great Basin Greater Sage-grouse Amendments - Oil & Gas Leasing and Regions and nine Approved Resource Management Plans in the Rocky Mountain Greater Sage-grouse Region (collectively referred to as Development Sequential Prioritization the Greater Sage-grouse Plans). This IM applies to activities in the areas covered by both the Rocky Mountain and Great Basin Regions Records of Decision, issued by the BLM in September 2015. This IM also contains reporting requirements for communication between State Offices and the Washington Office. Effects This IM requires additional analysis and staff time to screen parcels and weigh potential impacts to the Greater Sage-grouse before the parcels are offered for leasing. It also requires additional analysis and staff time to process drilling permit approvals near Greater Sage-grouse areas. Onshore Orders Nos. 3, 4 and 5 Regulation Description These three concurrent rulemakings updated and replaced Onshore Orders for site security, oil measurement, and gas TBD TBD Oil 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 of Federal Regulations at 43 CFR part 3170. These rulemakings were prompted by external and internal oversight reviews that found many of the BLM s production measurement and accountability policies to be 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. Effects Combined, the new regulations improve the ability of the BLM to ensure accurate measurement, accountability, and proper reporting of oil and gas produced from Federal and Indian land in order to ensure that taxpayers and Indian tribes receive their fair share of royalty due. The new regulations also provide a process for approving new technology that meets defined performance goals. However, the regulations impose new cost burdens on operators. The cost estimates for each individual rule are as follows Order 3 $31.2 million in one-time costs, plus a $11.7 million increase in annual operating costs. The average compliance cost per entity (operator) for this rule is under $6,000 per year for the first three years after the rule becomes effective, and just over $3,000 per year thereafter. Order 4 $3.3 million in one-time costs, plus a $4.6 million increase in annual operating costs. The average compliance cost per entity (operator) for this rule isjust over $1,500 per year for the first three years after the rule becomes effective, and just over $1,200 per year thereafter. Order 5 $23.3 million one-time cost, plus $12.1 million increase in annual operating costs. The average compliance cost per entity (operator) for this rule isjust over $5,300 per year for the first three years after the rules becomes effective, and just under $3,300 per year after that. No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes BLM IM 2014-156, Supplemental Guidance on Policy Description This IM informs State Directors that they must provide the BLM Washington Office with a justification when seeking a 07/2017 09/2017 Coal No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes Processing Royalty Rate Reduction Applications royalty rate reduction (RRR). A copy of their draft decision must accompany the justification when requesting Washington Office concurrence. Further, this IM augments and reiterates the existing policy for processing RRR applications. Effects This policy has resulted in a delay to the processing of RRR applications as it has imposed an additional level of review of the BLM State Directors decisions. However, assuring that all RRRs meet the necessary regulatory standards is imperative considering the public and Congressional scrutiny surrounding these actions. BLM IM 2017-035, Publicly Accessible Bureau of Policy Description This IM responds to stakeholder suggestions for improved access to information on the Federal coal program, and replaces 07/2017 09/2017 Coal No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes Land Management Websites for Information the policy and guidance previously provided in WO-IM-2014-159, Publicly Accessible Bureau of Land Management Websites for Coal Regarding Federal Coal Program Leasing, Leasing Information. This IM directs BLM offices to post and update specified Federal coal program information on BLM publicly Exploration Licensing, and Royalty Rate accessible websites, including (1) information about Federal coal lease applications and leases, lease modification applications, and lease Reductions modifications; (2) information about exploration licensing applications and exploration licenses; (3) information about royalty rate reduction applications; and (4) summary information on the Federal coal program. Effects 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 regular job functions related to maintenance and processing of coal leases and applications. 1 of 2 BLM IM 2017-037, Waste Mine Methane Policy Policy Description Establishes national policies and processes for voluntary activities by operators to capture waste mine methane from 0 7/2017 10/201/ Coal No i'BD i'BD 'i'BD i'BD i'BD i'BD iBD iBD No Yes No Yes underground coal or other solid mineral mines. These policies will allow waste mine methane to be put to productive use, including offering it for sale, instead of venting it to the atmosphere. Effects 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, additional costs could be incurred by the operator. However, it is assumed that the operator would only choose to implement the activities if the benefits outweigh the costs. 2 of 2