Challenges and Opportunities for Increased Access to On-shore Federal Lands Natural Gas Technologies What’s New & What’s Next Orlando, FL January 30-February 2, 2005 U.S. DOE National Energy Technology Laboratory (NETL) Office of Fossil Energy

Strategic Center for Natural Gas and Oil Authors  David Alleman Environmental Technology Manager Strategic Center for Natural Gas and Oil U. S. Department of Energy Tulsa, OK  Viola Rawn-Schatzinger CDO Technologies, Inc. Tulsa, OK

Strategic Center for Natural Gas and Oil

Federal Lands Resource  BLM administers 507 million acres of Federal Land  Represents 1/5 of all U. S. land  68% of all oil and gas reserves are on Federal Lands  Mostly in the Rocky Mountain States and Alaska

Strategic Center for Natural Gas and Oil U. S. Demand for Natural Gas  Use: 23 trillion Tcf / year  Production:19 Tcf / year  Shortfall: 4 Tcf / year  Minerals Management Service 58% (362Tcf) lies offshore  Outer Continental Shelf is in decline

Strategic Center for Natural Gas and Oil Challenges to Federal Lands Access  41 million fewer acres available in 2004 than in 1999  Complicated regulations and standards  Protect environment and provide multiple use  Conflicts between uses  Grazing rights  Water rights  Mineral Rights  Timber Production  Recreation  Mineral development  No access  Limited Access  Split Estates

Strategic Center for Natural Gas and Oil Energy Policy and Conservation Act  Mandated by Congress 2000  Inventory oil and gas resources in the U. S. and the potential for recovery  Departments of:  Interior  Energy  Agriculture  BLM lead organization  EPCA Phase I  Published January 2003

Strategic Center for Natural Gas and Oil Interior West Map  Paradox/San Juan Basins  Uinta/Piceance Basins  Greater Green River Basin  Powder River Basin  Montana Thrust Belt

Strategic Center for Natural Gas and Oil Interior West  Resource  138 Tcf natural gas  3,854 MMbbl oil  1,255 fields  Recoverable Reserves  53% of oil reserves  60% of natural gas reserves

Strategic Center for Natural Gas and Oil Access Restrictions Natural Gas  11% Closed  26%Restricted  63% Standard Lease Terms

Strategic Center for Natural Gas and Oil Access Restrictions Oil  15%Closed  28% Restricted  57%Standard Lease Terms

Strategic Center for Natural Gas and Oil Leasing Stipulation Categories  1 to 3No leasing  4Leasing with no surface occupancy  5 to 8Leasing with timing limitations (9 months, 6-9 months, 3-6 months, 3 months)  9Leasing with controlled surface use  10 Standard lease terms

Strategic Center for Natural Gas and Oil Challenges  Increased cost and delays in permitting  Areas where mineral rights can be leased, but the surface can’t be occupied.  Roadless areas or limited roads  Seasonal restrictions  Breeding/winter habitat of wildlife  1,265 Endangered Species in U. S.  Spatial restrictions  Distance from streams  Restricted Topographic features

Strategic Center for Natural Gas and Oil Public Concerns  Split Estates controversy  Fears over surface land rights  Disturbance of soils, vegetation, livestock and hunting rights  Permanent damage from pollution of surface waters  Lease terms

Strategic Center for Natural Gas and Oil Restrictions based on Wildlife  Raptor nests  Sage Grouse leks  Breeding habits of various birds and mammals  Big game migrations patters/ winter ranges  Big game calving areas/seasons  Waterfowl migration

Strategic Center for Natural Gas and Oil How DOE can Help  Provide an Energy Policy Perspective  Sound Science  Assess restrictions  Assess impacts  Smaller Footprint  Horizontal drilling  Smaller drilling pad  Improved waste handling  Improved Data Management & Decision Tools

Strategic Center for Natural Gas and Oil DOE / BLM Federal Lands Technology Partnership  Provide sound science to determine impacts of oil and gas development – support appropriate protections  Develop tools to allow faster, environmentally sound decision-making

Strategic Center for Natural Gas and Oil Alaskan Tundra Travel  Scientific study of ice and permafrost depth for ice roads and heavy equipment movement  North Slope season opened 3 weeks earlier in 2004  Adequate protection of tundra  Extended operational season enables exploration and production

Strategic Center for Natural Gas and Oil Joint DOE/BLM projects in Rocky Mountains  Studies on Environmental Impacts  Methane seepage in San Juan Basin  Historic leakage and brine spills in Oklahoma  CBNG studies on water, vegetation, soils and erosion issues  Studies of wildlife breeding habits and land use  Sage grouse study used to determine impacts of natural gas drilling activities in Wyoming

Strategic Center for Natural Gas and Oil DOE Oil and Gas Research Program Promote increased development of oil and gas resources on Federal Lands AND increased environmental protection  Provide technologies to lower the cost of compliance  Provide sound science for environmental protection  Provide data-management and decision- making tools to speed sound permitting decisions