Energy Exploration & Development

On National Forest System LandsBarry Burkhardt - bburkhardt@fs.fed.us

801-625-5157

Legal Aspects

FS Minerals Policy

My Presentation Will Cover the Following:

Process & Inter-agency Coordination

Questions At the End

Key Legislation - Summary

Mineral Leasing Act of 1920

Mineral Leasing Act for Acquired Lands of 1947

Energy Security Act of 1980

Multiple-Use Sustained-Yield Act of 1960

Mining and Minerals Policy Act of 1970

National Forest Management Act of 1976

Federal Onshore Oil and Gas Leasing Reform Act of 1987

What is the Forest Service Minerals Policy…??

And what is its basis…

The Mining and Minerals Policy Act of 1970

“to foster and encourage private enterprise in the development of economically sound and stable industries, and in the orderly and economic development of domestic resources to help assure satisfaction of industrial, security, and environmental needs”

On August 3, 1995, Chief Jack Ward Thomas established the Forest Service policy from selected wording in the 1970 Act.

Within this context, the national forests and grasslands have an essential role in contributing to an adequate and stable supply of mineral and energy resources while continuing to sustain the land’s productivity for other uses and its capability to support biodiversity goals.

Jack Ward ThomasAugust 3, 1995

“The Congress declares that it is the continuing policy of the Federal Government …”

Citing from the law…

Note: this isn’t just the Forest Service policy, but the policy of the Federal Government

…Made interesting discussion @ Rocky Mt. FLF

Under the Umbrella of the Federal Government Policy, The Forest Service Policy Also States:

The Forest Service will administer its minerals program within the overall context of the principles of ecosystem management.

Lets start with broad scale planning

Forest Plans

National Forest Management Act of 1976

* Requires the development of Forest Plans under the principles of the Multiple-Use Sustained-Yield Act.

- Plan establishes goals and objectives – desired resource conditions

- Defines standards and guidelines for resource management

- Defines Management Areas – “Zoning”

- Strategy for monitoring and evaluation

- May not involve a NEPA analysis…

- A more collaborative process with ongoing public involvement

- Project or implementing decisions would be subject to NEPA analysis – including mineral leasing

New planning Regulations have been proposed and are out for public comment

Current Process – extremely costly & takes 5 years to complete a 10 year plan…

NFMA based on Principles of MUSYAMUSYA states:

“The purposes of this Act are declared to be supplemental to, but not in derogation of the purposes for which the national forests were established…”

“…national forests are established and shall be administered for outdoor recreation, range, timber, watershed, and wildlife and fish purposes.”

“Nothing herein shall be construed so as to affect the use or administration of the mineral resources of national forest system lands…”

Leasing Decisions:

Made during Forest Plan Revision….

Two Options…

Separate Leasing Analysis & Decision

* BLM is normally a cooperating agency since they make the final decision of whether or not to lease.

Energy Security Act of 1980

“Sec. 262: It is the intent of Congress that the Secretary of Agriculture shall process applications for leases of National Forest System lands and for permits to explore, drill, and develop resources …. Notwithstanding the current status of any plan being prepared …”(Forest Plan).

The Federal Onshore Oil and Gas Leasing Reform Act

To insure that the Federal Government received fair market value for leases – it changed the leasing process. All leases are to be offered competitively… bidding process.

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The Federal Onshore Oil and Gas Leasing Reform Act

… The BLM can not issue a lease “over the objection” of the Forest Service. This established a leasing decision where the FS only made recommendations previously.

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The Federal Onshore Oil and Gas Leasing Reform Act

Gave the FS authority to regulate surface disturbing activities on lease.

Procedures for doing so are identified in 36 CFR 228.106-108 and in Onshore Order #1.

Application For Permit to Drill (APD)

Site-specific NEPA analysis is conducted

Can vary from EIS to Categorical Exclusion

Decision space is dependent on the terms of the lease

Must comply with other legal mandatesEndangered Species Act

Various Cultural Resource Laws

Clean Air Act

Clean Water Act

Geophysical Exploration can occur at any time

A lease is not required – and is often done prior to committing funds to acquire leases.

Geophysical exploration requires a FS authorization.

An EA or CE is prepared – typically a CE

Geophysical operations – small short-term impacts that can reduce cumulative or larger impacts – fewer wells drilled

Subsurface operations and well maintenance is BLM authority. FS is only involved if there are new associated surface uses.

This well was drilled without a reserve pit to minimize risk to a perched water table in the area…

Ongoing administration – shared by FS & BLM

FS focuses on surface uses and BLM focuses more on royalty accountability and site security.

Freshly Reclaimed Access Road

Reclaimed Drill Pad

Opportunities…

Drill Site Reclaimed to provide ATV Trailhead…

Oil and Gas development can be done in an environmentally sound manner…

16 Well Locations…Pipelines and flowlines…Production facilities & roads…Daily production to heat 80,000 homes…

“It’s What You Don’t See…

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