Document wg9XEkqjvm81B3K1RLk0L0yLV

To: Richard Cardinale[richard_cardinale@ios.doi.gov] Cc: Michael Nedd[mnedd@blm.gov]; John Ruhs[jruhs@blm.gov]; Kathleen Benedetto[kathleen_benedetto@ios.doi.gov]; Kristin Bail[kbail@blm.gov]; Timothy Spisak[tspisak@blm.gov] From: Mali, Peter Sent: 2017-05-11T15:48:35-04:00 Importance: Normal Subject: BLM Submission re: Section 2 of E.O. 13783 Received: 2017-05-11T15:51:27-04:00 BLM Sec2 EO13783.xlsx Rich: Attached please find BLM's completed spread sheet in response to Section C of S.O. 3349 (Section 2 of E.O. 13783). Please let me know if you have questions or would like more information. Peter Mali Acting Deputy Division Chief, National Conservation Lands National Wilderness Program Lead Bureau of Land Management Office: (202) 912-7179 Mobile: (202) 503-7460 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 Preliminary Summary Timeframe Expected Start Date (XX/20XX) Expected Finalization (XX/20XX) Regutation 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 ofthe rule add regulatory burdens that unnecessarily encumber energy production, constrain economic growth, and prevent job creation. Portions ofthe rule also overlap with current Environmental Protection Agency provisions. 03/2l7 \2J20M BLM Waste Prevention, Production Subject to Royalties, and Resource Conservation, 81 Fed. Reg. 83008 Regulator The "Venting & Flaring Rule" is formally the Waste Prevention, Production Subject to Royalties, and Resource Conservation rulemaking that 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 (NTL-4A). These regulations are codified at new 43 CFR subparts 3178 and 3179. The recent rulemaking also includes provisions to make regulator 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 ofthe rule add regulatory burdens that unnecessarily encumber energy production, constrain economic growth, and prevent job creation. Portions ofthe rule also overlap with current Environmental Protection Agency provisions. 5/20l7 06/2018 BLM BLM BLM IM 2010-117, Oil and Gas Leasing Reform Land Use Planning and Lease Parcel Reviews PciHcy Description The purpose of this IM was to establish a process for ensuring orderly, effective, timely, and environmentally responsible 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 ofnatural 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 ofunissued 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. 06/2017 10/2017 IM 2013-101, Oil and Gas Leasing Reform Master Leasing Plans (MLPs) Policy Description This IM announces the incorporation ofMaster Leasing Plans (MLP), Chapter V, into H-1624-1 - Planning for Fluid 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. 06/2017 10/2017 IM 2013-177, National Environmental Policy Act (NEPA) Compliance for Oil and Gas Lease Reinstatement Petitions PciHcy Description This IM directs all oil and gas leasing offices to 1) ensure Resource Management Plan conformance; 2) evaluate the adequacy of existing NEPA analysis and documentation; and 3) complete any necessajy new or supplemental NEPA analysis and 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. 06/2017 09/2017 BLM IM 2016-140, Implementation of Greater Sagegrouse Resource Management Plan Revisions or Amendments - Oil & Gas Leasing and Development Sequential Prioritization Policy Description This IM provides guidance on prioritizing implementation decisions for BLM oil and gas leasing and development, to be consistent with Approved Resource Management Plan Amendments for the Rocky Mountain and Great Basin Greater Sage-grouse Regions and nine Approved Resource Management Plans in the Rocky Mountain Greater Sage-grouse Region (collectively referred to as the Greater Sage-grouse Plans). This IM applies to activities in the areas covered by both the Rocky Mountain and Great Basin Regions Records ofDecision, 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 stafftime 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 stafftime to process drilling permit approvals near Greater Sage-grouse areas. 06/2017 09/2017 Onshore Orders Nos. 3, 4 and 5 Regulator 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. 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 ofthe Government Accountability Office concerns for high risk with regard to the Department s production accountability. Effects Combined, the new regulations improve the ability ofthe 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, andjust 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 is just 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 is just over $5,300 per year for the first three years after the rules becomes effective, and just under $3,300 per year after that. TBD TKD BLM BLM BLM IM 2014-156, Supplemental Guidance on Processing Royalty Rate Reduction Applications Policy Description This IM informs State Directors that they must provide the BLM Washington Office with ajustification when seeking a 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 ofRRR applications as it has imposed an additional level ofreview ofthe 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. 07/2017 09/2017 IM 2017-035, Publicly Accessible Bureau of Land Management Websites for Information Regarding Federal Coal Program Leasing, Exploration Licensing, and Royalty Rate Reductions Pohcy Description This IM responds to stakeholder suggestions for improved access to information on the Federal coal program, and replaces the policy and guidance previously provided in WO-IM-2014-159, Publicly Accessible Bureau ofLand Management Websites for Coal Leasing Information. This IM directs BLM offices to post and update specified Federal coal program information on BLM publicly 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 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. 07/2017 09/2017 IM 2017-037, Waste Mine Methane Policy PHcy Description Establishes national policies and processes for voluntary activities by operators to capture waste mine methane from 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 ofthe activities outlined in the policy are voluntary and will only be implemented ifboth the BLM and the mine operator agree. Ifthe 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 ifthe benefits outweigh the costs. 07/2017 10/2017 1 of 2 Energy Industry Affected Oil Identified in No Costs or Cost Savings (Present Value Monetized $millions/year n 2016 dollars) 3 Range, if available Low Estimate Hieh 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 Policy Set Forth in Required to be Reviewed 13783 -$20 -$24 -$12 -$14 -$27 -$32 10 Implementation will be tracked internally by the No Yes Bureau ofLand Management. The point of contact will be Timothy Spisak. No Yes Oil No N/A N/A -$69 -$101 -$79 -$115 10 Implementation will be tracked internally by the No Yes No Yes Bureau ofLand Management. The point of contact will be Timothy Spisak. Oil No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes Oil No TBD TBD TBD TBD TBD TBD TBD Oil No TBD TBD TBD TBD TBD TBD TBD Oil No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes TBD No Yes No Yes TBD No Yes No Yes Oil No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes Coal No TBD TBD TBD TBD TBD TBD TBD Coal No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes TBD No Yes No Yes Coal No TBD TBD TBD TBD TBD TBD TBD TBD No Yes No Yes 2 of 2 Type of Agency Action Regulation Order Guidance Document Policy Other Energy affected Yes/no Oil Yes Natural Gas No Coal N/A Nuclear Unknown Renewables Multiple (see summary) Other EO 13771 EO 13777 EO 13771 & EO 13777 No N/A Unknown