BLM New Mexico Working Together for All New Mexicans Thanks for inviting me. BLM’s multi-use mission. Kayaking photo is on Black River, if anyone asks. Tim Spisak, BLM NM/OK/TX/KS State Director Energyplex June 25, 2019

BLM Mission Sustain the health, diversity, and productivity of America’s public lands for the multiple use and enjoyment of present and future generations. View of Capitan and Guadalupe Peak (Guadalupe National Park) looking towards Texas (photo taken on BLM land near TX border).

Leadership New State Leadership Tim Spisak, State Director Steve Wells, Associate State Director New Acting BLM Director Casey Hammond New Secretary of Interior Priorities Casey Hammond serves as Principal Deputy Assistant Secretary of Land and Minerals Management exercising the authority of the Director of the Bureau of Land Management.  In addition to his direct responsibility for the BLM, Casey’s post as Principal Deputy Assistant Secretary gives him a policy-making role for three other key agencies within the Department of the Interior – the Bureau of Safety and Environmental Enforcement, the Bureau of Ocean Energy Management, and the Office of Surface Mining Reclamation and Enforcement. Casey’s career in public service includes more than 15 years working on public lands issues in various capacities within the United States House of Representatives.  He worked primarily for the Committee on Natural Resources, including time with the Subcommittee on Public Lands and Environmental Regulation, and the Subcommittee on National Parks, Forests, and Public Lands – serving as both Professional Staff and as Senior Advisor.  Since joining the Department of the Interior immediately after President Trump’s January 2017 inauguration, Casey has championed the Administration’s priorities of improving recreational access to public lands, restoring trust with the public, and reducing unnecessary regulatory burdens.  Casey is from Costa Mesa, California, and a graduate of Brigham Young University.  He now resides in Virginia. David Bernhardt serves as the 53rd Secretary of the U.S. Department of the Interior.  He was confirmed by the U.S. Senate on April 11, 2019.   Bernhardt is an avid hunter and angler and recently served on the Board of Game and Inland Fisheries for the Commonwealth of Virginia. He also led the International Boundary Commission between the United States and Canada and was responsible, along with his Canadian counterpart, for maintaining the 5,525 mile international boundary between these two nations. He has in-depth experience in legal matters concerning active regulations and rule-makings, with years of legal experience in both the government and the private sector. His expertise ranges from the Endangered Species Act to Outer-Continental leases, from mining royalties to Indian Affairs. From 2001 to 2009, he held several positions within the Department of the Interior, including serving as Solicitor. Prior to that, he served then-Secretary Norton as a deputy solicitor, deputy chief of staff and counselor to the Secretary, and as director of Congressional and Legislative affairs and counselor to the Secretary. A native of Rifle, Colorado, Bernhardt earned a B.A. in political science with a minor in business administration from the University of Northern Colorado in Greeley in 1990. He graduated with honors from the George Washington University National Law Center in 1994 and is admitted to various state and federal court bars. He is married to Gena Bernhardt. They have two children and reside in Arlington, Virginia. Secretarial Priorities  Enhancing the visitor experience at our National Parks and public lands by better meeting our infrastructure and maintenance needs; - Delegating greater authority and accountability closer to the front line in our organization and modernizing the Department to better meet the needs of today and tomorrow; -Working to ensure meaningful consultation and self-determination for Tribes, Alaska Native communities, and our territories; - Building a meaningful conservation stewardship legacy by expanding public access for sport and recreation opportunities on public lands; - Collaborating with states to protect and improve the North American Wildlife Conservation Model, while continuing the move toward shared conservation stewardship; -Modifying or eliminating unneeded and unnecessary regulations; - Administering the appropriate development of all forms of energy on our Federal lands and the Outer Continental Shelf; - Ensuring that actions taken by the Department and its Bureaus reflect the development and promotion of a culture of ethical compliance and a workplace free of harassment; - Implementing the John D. Dingell, Jr. Conservation, Management, and Recreation Act; and - Modifying our business practices and processes to eliminate unnecessary steps and duplicative reviews, while maintaining rigorous environmental standards.

BLM New Mexico manages: One of the largest oil and gas programs in the Bureau More than 45 million acres of mineral estate More than 2 million acres of Native American (Indian) mineral estate

BLM NM: A Leader in Oil and Gas Production BLM NM consistently leads the Bureau in annual oil production and is a major contributor to the total amount of gas produced from Federal lands each year. Over the past five years, annual oil production from BLM NM lands has nearly doubled. The US is currently the top oil producer in the world, with the Permian Basin accounting for nearly 1/3 of the nation’s output.

Onshore Oil Production Total Production from BLM-Managed Lands 239,239,394 bbl In 2018, oil production on Federal lands in Eddy and Lea Counties accounted for 44% of the total oil produced on Federal lands.

Onshore Oil Production Onshore Gas Production Onshore Oil Production Total Production from BLM-Managed Lands 3,301,062,165 mcf In 2018, gas production on Federal lands in Eddy and Lea Counties accounted for 14% of the total gas produced on Federal lands.

Onshore Oil Production Oil and Gas Revenue Onshore Oil Production Total Revenue from BLM-Managed Lands $3,760,200,669 In 2018, revenues generated from O&G development on Federal lands in Eddy and Lea Counties amounted to $2,151,805,916 or 57% of the total O&G revenue generated from Federal lands.

Onshore Oil Production Oil and Gas Lease Sale Results Onshore Oil Production Top Five States – Lease Sale Categories Total Bonus Bids Received 9/2018 NM $972,384,680 9/2016 NM $145,556,170 9/2017 NM $130,855,717 2/2017 WY $128,978,446 8/2008 CO $113,853,914 Total Bonus Bid for One Parcel 9/2018 NM $102,086,520 9/2016 NM $76,680,000 4/2004 NM $27,945,000 8/08 CO $25,252,000 9/2017 NM $24,037,760 Average Bid per Acre per Sale 9/2018 NM $19,143 12/2017 NM $14,428 9/2016 NM $10,490 9/2017 NM $8,535 1/14 MT $7,742 Highest Bid Per Acre for a Parcel 9/2018 NM $95,001 12/2017 NM $40,001 9/2017 NM $37,559 9/2016 NM $35,500 September 2018: Highest Grossing Oil and Gas Lease Sale in BLM History!

Onshore Oil Production Oil and Gas Lease Sale Schedule 2019 Onshore Oil Production JUNE Utah June 11 New Mexico June 20 Wyoming June 25-26 Colorado and Eastern States June 27 JULY Montana July 30 SEPTEMBER New Mexico Week of September 2 Eastern States, Nevada, and Utah Week of September 9 Wyoming Week of September 16 Colorado, Montana Week of September 23 NOVEMBER New Mexico Week of November 4 DECEMBER Eastern States, Nevada, Utah and Wyoming Week of December 9 Alaska December 11 Colorado and Montana Week of December 16

Onshore Oil Production Applications for Permit to Drill Onshore Oil Production FY 2019 Top-5 High Activity Field Offices Field Offices APDs Received APDs Approved Total APDs Processed Average Processing Time (Days) OPR FED Total Carlsbad+Hobbs 1491 1035 1072 64 48 112 Dickinson (Fed+Ind) 498 470 567 71 39 110 Bakersfield 206 133 135 30 14  44 Casper 190 236 244 75 121 196 Vernal (Fed+Ind) 117 130 256 90 122 213 Top-5 Totals 2502 2004 2274 BLM Averages (Days) Total for Rest of BLM 672 667 739 BLM Totals 3174 2671 3013 65 53 118

Average Number of Days to Process Applications for Permit to Drill Processing Times Onshore Oil Production Average approval times once the Carlsbad Field Office receives a complete application Year Average Number of Days to Process 2016 2017 238 days 119 days 2018 2019 72 days 48 days

AFMSS2 Updates APDx will implement new user interface New features will include return APD, auto-archive after APD approval, tie to NOS. Well Information System (WIS) will be replaced in 2020.

AFMSS2 Updates New Portal Launch Page/APDx in training module since April. New Release Portal Launch Page and APDx will update in July. Weekly WebEx training sessions through July 11.

Waste Prevention Replacement Rule (83 FR 49134) Effective November 27, 2018; affects 2016 rule: Reduces unnecessary compliance burdens, is consistent with the BLM’s existing statutory authorities, and re-establishes longstanding requirements that had been replaced. Rescinds requirements pertaining to waste-minimization plans, gas-capture percentages, well drilling, well completion and related operations, pneumatic controllers, pneumatic diaphragm pumps, storage vessels, and leak detection and repair (LDAR). Revises other provisions related to venting and flaring and adds provisions regarding deference to appropriate State or tribal regulation in determining when flaring of associated gas from oil wells will be royalty-free.   Onshore Orders 3/4/5 modifications in progress; draft regulations coming soon.

Carlsbad Resource Management Plan The Plan will replace the current 1988 Carlsbad RMP, as amended in 1997 and 2008. Estimated publication date August 2019; approved RMP/Record of Decision, December 2019. Currently addressing public comments. The Carlsbad Proposed Resources Management Plan (Proposed RMP) and Final Environmental Impact Statement (Final EIS) is being developed to revise and replace the current 1988 Carlsbad RMP, as amended in 1997 and 2008. The Carlsbad Proposed RMP/Final EIS provides proposed future management direction for public lands and resources within the BLM CFO planning area, comprised of 6.2 million acres, of which 2.1 million surface acres and 2.7 million subsurface acres are BLM-administered. The RMP decisions would apply to the BLM-managed lands and Federal mineral estate. The estimated publication date of the Proposed RMP/Final EIS Notice of Availability (NOA) is August 2019 and for the Approved RMP/Record of Decision (ROD) NOA, December 2019. BLM New Mexico and SWCA (RMP Contractor) are currently revising the Carlsbad Proposed RMP/Final EIS to incorporate adjustments to the document based on public comments and new information since publication of the Draft RMP, including Washington Office comments. The comments are extensive and include several major issues including water, air quality, the Reasonable Foreseeable Development Scenario (RFDS), leasing stipulations, lands with wilderness characteristics, and Areas of Critical Environmental Concern in the preferred Alternative C. Major revisions being made include the removal of the ACEC designation from the Gypsum Soils area (60,000 acres approx.) in the preferred Alternative C and modification of management tiers for Lands with Wilderness Characteristics units under Alternatives C and D. No protection of wilderness characteristics as a priority over other multiple uses would be provided under these alternatives. Need for issuance of RFDS decision: A decision on the RFDS should be made as soon as possible in order to not delay the expedited schedule further. The purpose of a RFDS is to provide a reasonable projection of the most likely anticipated oil and gas activity in a given area, supported by a clearly stated set of assumptions and data inputs. RFDS are prepared for Bureau of Land Management RMPs and are used to forecast the potential impacts of oil and gas development on other resources and land uses. The current RFDS is from 2014. If the RFDS is modified, the underlying analysis of impacts to other resources would need to be updated to reflect the changed impact forecast. For instance, if the RFDS is available in November 2019, assuming it started in July 2019, the air impacts analysis would be complete in November 2020, and revisions to the Proposed RMP/Final EIS would be completed in March 2021.

Being Good Neighbors Oil and Gas Industry Working with Grazing Community Impacts of oil and gas development Public safety Access Water issues Site reclamation Many ranches (approximately 15 allotments) in the Carlsbad Field Office, particularly long standing ranches in southern Lea County, have recently sold to companies (oil, investment, potash). Companies’ interest mainly lie in acquiring water rights for freshwater, mineral material (caliche, sand), and controlling access on fee lands (partnerships with operators and infrastructure companies). Besides money, ranchers may be selling out simply due to the impacts of development on their grazing operations. Traffic, noise, dust, spaghetti networks of surface pipelines, cut fences, and gates left open increase likelihood of cattle being hit by vehicles, wander off the ranch, and restrict livestock movement across surface developments. The trend is expected to continue west into Eddy County.

Questions? Thank you!