DE-FC26-06NT42937

Goal
The objective of this research project is to evaluate practices that are common and key to moving oil and gas exploration and production forward by identifying and minimizing impacts from the most notable issues delaying or curtailing E&P activities. Reducing impacts from E&P activities by engaging in a broad-based stakeholder approach with organizations such as landowners, ranchers, farmers, and other concerned citizens, as well as State and Federal agencies and industry, is the approach. The goal is to lead to practices that ultimately overcome impedances or delays in development of new energy resources.

Performers
Interstate Oil and Gas Compact Commission (IOGCC), Oklahoma City, OK
ALL Consulting, Inc., Tulsa, OK

Results
Research has been conducted to gather and evaluate data pertinent to common practices and mitigation strategies. A wide range of documents and information sources have been reviewed that discuss environmental mitigation practices for various aspects of onshore oil and gas development, as well as those presenting issues of concern voiced by non-governmental organizations (NGOs). This has allowed identification of many potential environmental issues for further research. Several professional meetings have been attended by project personnel, allowing discussions and interviews with numerous representatives of regulatory agencies, the oil and gas E&P industry, and interested NGOs. This has significantly contributed to the identification of issues appropriate for further research. Activities of interest engaged by ALL Consulting staff during this reporting period include:

• Participation in and follow-up to BLM public hearings to identify and discuss public concerns associated with the Supplement to the Montana Statewide Oil and Gas Environmental Impact Statement and Amendment of the Powder River and Billings Resource Management Plans and also the Miles City Filed Office Resource Management Plan.
• Annual meetings sponsored by the Montana Petroleum Association and the IOGCC.
• Met with numerous BLM Field Offices to discuss reclamation requirements, categorical exclusions, and adaptive management issues related to oil and gas development projects.
• Met with various oil and gas producers to discuss air emissions, produced water, and wildlife issues.
• Continued research on greater sage-grouse population trends within the Powder River Basin of Montana and Wyoming to examine the potential extent of impact resulting from oil and gas development compared to those in areas unaffected by such development.
• Met with an industry group in Denver to discuss NEPA issues and options to streamline oil and gas development.
• Discussed mitigation measures applicable to an old historic oilfield with BLM (Cody, WY), including how to manage the development in an old field while also attempting to manage future reclamation.
• Met with BLM (Miles City, MT) concerning numerous evolving issues relative to ongoing oil and gas development in an old field that has split estate with a shallow gas field developed stratigraphically above the older oil development – and the desire by BLM for multiple operators to work together.
• Met with Wyoming Oil and Gas Conservation Commission regarding development issues in Wyoming, including problems the State is having with various BLM offices in the State.
• Worked with industry to evaluate methods of development in an area of eastern Texas where there are wetlands so as to minimize wetlands disturbances and allow development to move forward expeditiously.
• Met with the Ohio Department of Natural Resources regarding rule making in Ohio effecting oil and gas development in urban areas.
• Met with the Oklahoma Corporation Commission, including a meeting by invitation only, regarding how the OCC will deal with development proposed around a large reservoir in southeastern Oklahoma that is a water supply for Oklahoma City.
• Visited a natural gas field in southwestern Wyoming developed in a wilderness area (sand dunes) where oil and gas development must co-exist with recreation, wildlife studies/management, and management of a unique natural resource. Evaluated reclamation processes potentially applicable to the area.
• Met with members of the Global Climate Change panel (University of Tulsa; McAfee & Taft; and Devon Energy).
• Participating in an ODEQ Subcommittee workgroup on air rule revisions regarding excess emissions.

Information gathered and researched from existing sources, interviews, and meetings with interested parties during this reporting period have indicated the potential benefit of producing targeted reports discussing focused environmental impacts issues such as: 1 - wildlife, 2 - air pollution, and 3 - a range of issues related to surface damages. These have been further evaluated under Phase II (Impact Analysis) of the project. The preparation of documents summarizing the research (Phase III) has also begun.

Benefits
Development of the Adverse Impact Reduction Handbook addresses the key objective of this research, which is to overcome the issues of impedance or delays for E&P activities. Ultimately, this activity could lead to more effective and efficient production of domestic crude oil and natural gas and minimizing unnecessary lawsuits and surface owner complaints.

Background
In many instances, efforts to reduce impacts resulting from E&P activities do not include input from organizations representing landowners, ranchers, farmers, and other concerned citizens. Lacking this avenue of input can result in practices that ultimately do not achieve the desired result. With that in mind, the proposed research effort will strive to gain input from a broad variety of sources—including NGOS, local governmental bodies (e.g., conservation districts), farmers/ranchers, industry, State and Federal agencies, and others. Through the project activity, the research team will evaluate practices that are common and key to moving development forward and that also cause the most notable issues relative to delaying or curtailing E&P activities. This will include exploration/exploitation activities, such as seismic, to development activities, such as installing gathering and flow lines, and would continue through reclamation. The result of the project will be a handbook that summarizes through case studies those issues that offer the most significant impacts relative to impedances or delays to onshore E&P activities. The handbook will suggest approaches to minimizing or mitigating impacts. Practices and variations will be outlined and detailed. Further, the researchers’ goal is to provide benefit analysis of various practices to serve as a starting point for choosing practice options and perhaps also for non-industry people to understand the advantages and disadvantages of various approaches.

Summary
The scope of work for this project consists of five tasks conducted in three phases over a 24 month period. The tasks are overseen by a PAC made up of oil and gas agency directors, State and Federal agency representatives, and industry representatives. The approach to conducting the research in Phase I is to gather and compile information via the Internet and other published sources, leverage existing DOE and other agency studies, and through personal contacts with State and Federal agency personnel, industry representatives, and other stakeholders via e-mail, telephone interviews and field visits. The resulting comparisons and summary documents will be evaluated and analyzed by senior staff at the various oil and gas agencies and by Bureau of Land Management and Environmental Protection Agency personnel participating on the PAC. The final phase will be the documentation of the findings in a handbook and the development of a Web site to host the report, associated interim documents, and related project resources. Conclusions will also be shared publicly through a series of reports, technical presentations, and workshops.

Current Status (February 2008)
The project is nearing completion of the second quarter of its second year.

Project Start: August 21, 2006
Project End: August 20, 2008

Anticipated DOE Contribution: $370,125
Performer Contribution: $97,600 (20 percent of total)

Contact Information
NETL – Virginia Weyland (virginia.weyland@netl.doe.gov or 918-699-2041)
IOGCC – Gerry Baker (gerry.baker@iogcc.State.ok.us or 405-525-3556, ext. 112)