Regulatory Uncertainty and Production Impacts Duane Zavadil Bill Barrett Corporation.
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Transcript of Regulatory Uncertainty and Production Impacts Duane Zavadil Bill Barrett Corporation.
Regulatory Uncertaintyand
Production Impacts
Duane Zavadil
Bill Barrett Corporation
Land Ownership
Resource Area # Pending APDs Days Pending
Buffalo 1256 293
Farmington 187 321
Pinedale 119 189
Vernal 175 189
APDs Waiting
BLM Average Approval Timeframes
77
96
175
137
84
0
20
40
60
80
100
120
140
160
180
200
1998
1999 2001
2002
2003
2000Not
Available From
AFMSS System Due to Court Order
“Optimistic” Time Requirements for NEPA Compliance
$2-3 K
Large Field EISor RMP
1 year 2 years
Field DevelopmentEIS
Small Exploratory Or Development EA
Single Well/ROW EA
CategoricalExclusion or DNA
2 weeks to 6 months
6 months
1 year
2 years
2 ½ + years
Cost of NEPA Compliance
$1
$100
$10,000
$1,000,000
Cost
CatagoricalExclusion or
DNA
SingleWell/ROW EA
SmallExploratory orDevelopment
EA
FieldDevelopment
EIS
Large Field EISor RMP EIS
$2-3 K$20 K
$250 K
$1-2 MM $2.5 MM
Other “Multiple Use” Resources
• Archeological Resources
• Cultural Resources
• Paleontological Resources
• Threatened and EndangeredSpecies
• Species of Special Concern
• Visual Resources
• Hunting
• Recreational Vehicles
• Raptors
• Soils
• Range/Grazing
• Air Quality
• Water Quality
• Flood Plains
• Riparian Areas
• Prime and Unique Farmland
• Wild and Scenic Rivers
• Wilderness and WildernessStudy Areas
• Aquatic Species / Fishing
• Wild Horses
• Areas of CriticalEnvironmental Concern
Photo by: Robert MuellerPhoto by: Robert Mueller
Typical Seasonal Restrictions
Mule Deer Wintering
Elk Wintering
Mule Deer Fawning
Elk Calving
Sage Grouse Mating
Raptor Nesting
Spotted Owl Nesting
Burrowing Owl Nesting
Big Horn Sheep Lambing
Sage Grouse Wintering
Mountain Plover Nesting
Southwest Flycatcher Nesting
Dessert Tortoise
Moose
Pending
No Disturbance
J F M A M J J A S O N D
Anti-Oil and Gas Spending
Local Groups:
Western Organization of Resource Councils $757,000Northern Plains Resource Council $ 864,000Powder River Basin Resource Council $296,000Greater Yellowstone Coalition $1,815,000San Juan Citizens Alliance $177,531Oil and Gas Accountability Project $262,000Wyoming Outdoor Council $661,000Southern Utah Wilderness Alliance $1,890,000
Total $7,099,000
(2001 Tax Returns)
National Groups:
Sierra Club $75,440,000Earth Justice $17,965,000Natural Resource Defense Council $55,697,000Wilderness Society $24,119,000
Total $173,221,000
Anti-Oil and Gas Spending
(2001 Tax Returns)
Cumulative Impacts
•Supply Shortages
•Limited Capital Availability
•Equity Devaluation
•Drainage/Inefficient Production
•Disproportionate State and Fee Production
•Inadequate Pipeline Capacity/Basis Differential Spikes
Active Rig Count
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Dry
Gas
Oil
Current Federal Energy Production Efforts
Rocky Mountain Energy Council
White House Task Force on Energy Streamlining
Energy-Oriented Political Appointees
Natural Gas Supply Hearings
Energy Bill Provisions?
Oil and Gas Instructional Memoranda(6)
Department of Interior’s Implementation Plan for President’s Energy Policy
WIA Settlement
Needed Actions
•Affirmative Support of Energy Development
•Encourage Market Solutions
•Reverse Engineer Regulatory Capacity
•Employ Private Sector Models
•Establish Production Goals and Reverse Engineer Organization
•Create Group to Understand and Promote Development
•Reorganize to Separate Regulatory and Development Roles
•Perform “Spec” NEPA for Exploratory Activities
•Coordinate/Negotiate with Sister Agencies
•Allocate a Portion of Royalties to Promotion/Management
•Production Incentives
Improving Federal Lands AccessEmploy Private Sector Model
Improving Federal Lands Access
•Prompt Decision Making
•Resource Specialist Prioritization
•Mineral Staffing •State-Wide/Region Wide NEPA Teams
•NEPA/FONSI Guidance Policy •Energy Education
•Final Resolution of Wilderness Study Areas
State Regulatory Reforms
•Strengthen and Streamline NPDES Program
-Resolve Interstate Issues with Montana
-Establish “Fixed” Water Quality Targets
-Confirm Right of In-Stream Flow
-Appropriate Organization, Staffing, and Capabilities
-Monitor and Adapt
State Regulatory Reforms(continued)
•Increase “Responsiveness” of Air Quality Program
-Increase Flexibility For Movement and Replacement of Compressors and Dehys
-Reduce Permit Processing Times
-Employ General Permits for Minor Sources
-Monitor and Adapt
Industry Responsibilities
•Agency Involvement
•Political Advocacy
•Public Acceptance