BLM Bureau of Land Management Oil and Gas Permitting Process Expediting Oil and Gas Development in Western States Kent Hoffman

BLM Selected Statutes Relevant to Energy Leasing and development Mineral Leasing Act Federal Onshore Oil and Gas Leasing Reform Act National Environmental Policy Act Federal Land Management and Policy Act National Forest Management Act Endangered Species Act National Historic Preservation Act Combined Hydrocarbon Leasing Act CWA, CAA, MTBA, SMCRA, etc., etc.,etc.,

BLM Well Permitting (Continued) Review and Processing of Drilling Application The Operator Submits: 1.Application Form 2.Well Plat / Map 3.Drilling Plan 4.Surface Use Plan of Operations (Including access route)

BLM Well Permitting (Continued) Review and Approval of the Operator’s APD Geology Blowout Prevention Casing Program Cementing Program Mud Program Testing & Logging Pressures and Potential Hazards Directional Design Drilling Plan Includes:

BLM Well Permitting (Continued) Review and Approval of the Operator’s APD Existing Roads New Access Roads Location of Existing Wells Location of Proposed Production Facilities Location of Water Supply Construction Materials Surface Use Plan of Operations includes:

BLM Well Permitting (Continued) Review and Approval of the Operator’s APD Waste Management Ancillary Facilities Well Site Layout Plans for Surface Reclamation Surface Ownership Surface Use Plan of Operations includes: (Continued)

BLM Well Permitting (Continued) Upon receipt of complete APD package:  Confirm Valid Lease (Rights Adjudication)  Conduct on-site inspection, cultural and T&E inventories, etc. (road, pad, pipeline, etc.)  Site specific environmental analysis conducted and documentation prepared (NEPA Compliance)  Conditions of Approval developed as site specific mitigation measures (Attached to Permit)  APD approved and drilling monitored  Production verification and compliance

Utah BLM - Applications for Permit to Drill (Federal & Indian) 8 9/30/2013

BLM  Increased Use of Electronic Processes AFMSS 2.0 e-commerce filings  Operators Familiar with Land Use Plans More complete applications Avoidance/mitigation of problem areas  Maintain “Real Time Communication” Focus work on priorities and redirect if conditions change  National Environmental Policy Act (NEPA) Need innovative solutions to shorten preparation timeframes, while still achieving compliance  Statute of Limitations (MLA & APA) 90 days vs. 6 years Some thoughts regarding improving permitting and development...

Thank You Kent Hoffman Utah Deputy State Director Lands and Minerals Division Bureau of Land Management