Bitterroot Range, Montana
BLM
U.S. DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
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Oil & Gas Development Process

Below is a table describing the development process of oil & gas leases on public lands, with details on issuing an Application for Permit to Drill (APD) and estimates for the time involved.


 ActionTime
BLM Land Use Planning
 

A Management Framework Plan, or a stand-alone leasing decision, must be in place, which identifies which lands are available for mineral leasing. Many Resource Management plans are outdated, and are being updated. Some mineral leasing decisions are being delayed until updated land use plans are completed.

Land Use Plan: 3 to 5 years

Environmental
Impact
Statement: 18 months to 5 years

Leasing Process
 To obtain a federal lease, a company nominates a parcel they are interested in developing to the BLM State Office that oversees it. That office reviews the parcel for availability, lease stipulations, conformance with land use plan, etc. Lease stipulations are determined and attacjed to the parcel prior to being made available for bid. Stipulations are identified in the BLM's land use plans and may be reviewed a second time by the state game and fish department as well as other state and federal agencies prior to the lease sale to assure mitigation measures are adequately delineated.Up to 6 months

 

 The parcel is offered at a competitive lease sale. Each BLM state is required to have four lease sales every year. (The number of sales varies in different offices based on public demand and parcel availability). The lease is issued with a primary term of ten years unless it is producing in paying quantities, at which point the lease continues until the resource can no longer be produced in paying quantities.
State and Local Permitting
 

The oil and gas operator must obtain the proper state and local government authorizations in order to develop the lease. These include permits for drilling, water discharge, conformance with state air quality requirements, water disposal, highway use and access, etc. In some cases, the operator can submit an application for permit to drill (APD) to the BLM simultaneously. In other cases, state authorizations  such as a storm water permit for construction activities are part of the APD package that is submitted to the BLM.

Some state or local permits can be granted within days; others take several weeks to months.

BLM APD processing (these activities happen concurrently)

 
BLM must notify the applicant within 10 days of receiving the APD and stating that either the package is complete or specifying what additional information is required to make the application complete. The BLM must approve the APD within 30 days after considering the package complete or notify the applicant of: (1) Any actions that the operator can take to get approval; and (2) What steps, such as National Environmental Policy Act (NEPA) or other regulatory compliance, remain to be completed and the schedule for completion of these requirements.

Environmental
Impact
Statement: 18 months to 5 years

 

 

BLM must determine that the APD is complete within 10 days, or specify missing information to the applicant. If deficiencies are not communicated, BLM must approve the APD in 30 days or provide a schedule with timeframes to complete the APD approval.  

 BLM reviews the APD. Each APD contains a drilling plan and a surface use plan of operations. 
 A petroleum engineer and a geologist review the drilling plan to ensure the company will protect downhole resources such as aquifers and other minerals, and the drilling program meets the BLM's minimum requirements for opertions. 
 The land law examiner reviews the APD for required information and legal location (i.e. does the operator have a legal right to drill? Is the operator within spacing requirements?  Is there a bond in place?).
 The Surface Use Plan of Operations is reviewed by many specialists including a natural resource specialist, archeologist, wildlife biologist, etc.
 BLM conducts an onsite inspection with the operator, appropriate surface managing agency, and/or the surface owner (if private surface).
 At the onsite, the BLM inspects the well location for safety or environmental issues and possible right-of-way concerns.
 BLM reviews the proposed ancillary facilities such as water discharge lines and discharge points, gas flow lines, and central collection facilities, power lines, and access needs to these facilities.
 The BLM and operator consult with the private surface owner, if any. The BLM may also consult with the state fish and game agency to ensure the BLM's wildlife permit conditions of approval are adequate.
 BLM approves individual wells with a site specific environmental review tiered to the Resource Management Plan or field development plan EIS (on large field development).

For larger projects, an EIS may be required.

 The APD may be denied or approved with Conditions of Approval (COA) which are site-specific mitigation measures designed to protect the environment. The operator must conduct operations in conformance with laws, regulations, lease stipulations, Resource Management Plan, and the approved APD.

An adversely affected party can file a State Director Review (SDR). This adds 30 days or more. An SDR can be appealed to IBLA, which can add up to 3 years.

Clearances
 

The BLM archaeologist reviews cultural survey reports as a requirement for all surface activities. The archeological report is normally performed by a contract archaeologist who submits the report to BLM for review, approval or rejection. A consultation letter is sent to the State Historic Preservation Officer (SHPO).

Timeframe is dependent on workload.

 BLM biologists review all proposed activities to ensure important plant species and wildlife habitat are adequately protected.

Inspections

 The BLM typically conducts inspections during the drilling, operation, reclamation, and abandonment of the well and well location. 
Lifecycle
 

When an oil or gas well is no longer capable of producing in paying quantities, BLM approves the operator's well plugging and abandonment operations, and monitors reclamation of the well location, road, and all related facilities. The operator will not be relieved of any liabilities associated with the well until the entire loctoin has been successfully reclaimed.