1. BLM 2008 NFMC EPA of 2005 - Section 365 Permit Streamlining Pilot Update James Gazewood BLM Wyoming State Office

2. BLM 2008 NFMC Pilot Progress Key Results -- During the Pilot’s first two years, BLM has been able to:  Provide industry with the permits needed to develop energy for the Nation.  Significantly improve environmental stewardship and mitigate resource impacts Overview of Accomplishments  Funding Distribution to Federal Partners  Pilot Office Staffing  Performance Improvements in Pilot Offices  Performance Measures  Next Steps / Deliverables PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008

3. BLM 2008 NFMC Pilot Year Two Accomplishments  Pilot Offices have reduced pending APDs by 12% during FY 2007  APD/ROW NEPA process times have decreased by 25% From 81 to 61 days, due to co-location of agency staff and associated communication and process improvements  Increased I&E: A substantial (22%) increase in the number of inspections An enhanced field inspection presence leading to earlier detection of compliance problems before they result in major violations Increased outreach, where BLM is sharing with the Industry, technical and environmental expectations, which aids the Industry in reducing violations PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008

4. BLM 2008 NFMC Federal Agency Funding FY06 and FY07 Department/AgencyFY06 BudgetFY07 Budget Percent Increase or Decrease U.S. Department of the Interior Bureau of Land Management$16,000,000$19,490,00021.80% Fish and Wildlife Service$2,135,000$1,440,000-32.6% 1 Bureau of Reclamation$725,000 0.00% Bureau of Indian Affairs$100,000 0.00% Minerals Management Service$0 0.00% U.S. Department of Agriculture Forest Service$885,000$1,172,00032.40% U.S. Department of the Army Army Corps of Engineers$455,000 0.00% Environmental Protection Agency$0 0.00% TOTAL$20,300,000$23,382,00015.20% PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008 1 Denotes USFWS decreased their FY07 funding request due to the availability of carryover funds from FY06

5. BLM 2008 NFMC Pilot Staffing Trends for FY06 and FY07 PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008 FY06 Total Federal and State Allocated Pilot Positions = 159.50 FY07 Total Federal and State Allocated Pilot Positions = 207.25

6. BLM 2008 NFMC Pilot Office Staffing – Federal Agencies  194.25 Federal positions allocated through FY07  164.25 Federal positions onboard (85% hired) Federal AgencyAllocated FTEOnboard FTERemaining FTE BLM164143(87%)21 USFWS15.7510.75(68%)5 USFS96(67%)3 USACE3.53.5 1 (100%)0 BIA10(0%)1 BOR11(100%)0 Total194.25164.25(85%)30 PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008 1 Denotes USACE utilized existing FTE to support Pilot

7. BLM 2008 NFMC Pilot Office Staffing – State Agencies  13 State positions allocated through FY07  4 State positions onboard (31% hired) State AgencyAllocated FTEOnboard FTERemaining FTE MT FWP11(100%)- MT DEQ31(33%)2 WY G&F20(0%)2121 WY DEQ10(0%)1 WY SHPO10(0%)1 CDOW10(0%)1212 COGCC10(0%)1212 UT SHPO10(0%)1 NMOCD22(100%)- Total134(31%)9 PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008 1 Denotes positions currently under candidate selection (FY08) 2 Denotes positions currently under hold or discussion (FY08)

8. BLM 2008 NFMC Performance Improvements  Year One focused on recruiting positions  Year Two focused on enhancing interagency collaboration and environmental stewardship  In FY07, Industry submitted 2,388 (30%) less APDs This decrease in applications was due to: Lack of pipeline capacity and lower oil and gas commodity prices Capital expenditure delays Availability constraints on drilling and service equipment Available balance of FY06 APDs now being drilled PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008

9. BLM 2008 NFMC Performance Improvements  617 (11%) more APD’s were processed in FY07 than were received - reducing the total EOY pending APDs by 8% Compared to processing only 81% of APDs received in FY06 Fewer new applications during FY07 has allowed staff to reduce pending APD’s The 62% of the 4,263 pending APD’s are incomplete or have been deferred due to litigation, pending planning or major NEPA Individually 2 offices carried the bulk of pending complete APD’s Farmington has 310 pending applications, Vernal has 1,254 PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008

10. BLM 2008 NFMC APDs Processed for Non-Pilot / Pilot Offices PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008

11. BLM 2008 NFMC APDs Received, Processed, and Pending PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008

12. BLM 2008 NFMC Total Permits (APDs / ROWs) Requiring / Not Requiring Federal Interagency Reviews PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008 requiring Federal Interagency Reviews not requiring Federal Interagency Reviews

13. BLM 2008 NFMC Performance Improvements  Pilot Offices completed 22% more inspections in FY07 Conducted 78% more environmental inspections (3,365 in FY06 to 5,976 in F07) – Comprising 55% of all FY07 inspections  Other demonstrated improvements Development of site-specific and programmatic interagency resource protection agreements Enhanced interagency on-the-ground resource monitoring and mitigation Increased outreach sessions for industry and other stakeholders PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008

14. BLM 2008 NFMC Total Inspections for All Pilot Offices (Required, Planned and Completed) PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008

15. BLM 2008 NFMC Total Inspections by Inspection Type for All Pilot Offices PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008

16. BLM 2008 NFMC Performance Measures Pilot Goals Aligned to Performance Categories INCREASE INTERAGENCY COLLABORATION IMPROVE BUSINESS PROCESSES IMPROVE RESPONSIVENESS TO STAKEHOLDERS IMPROVE FINANCIAL ACCOUNTABILITY  Increase efficiency by identifying and implementing new or improved interagency collaborative practices  Improve interagency data sharing and utilization  Assess the effectiveness of a variety of interagency process improvements  Enhance working relationships among participating agencies  Increase pilot office resources to process APDs, sundry notices, and ROWs in a more timely and consistent manner  Increase pilot office resources to improve I&E activities  Improve pilot office productivity and flexibility by adopting improved APD, sundry notice, ROW, and I&E business processes  Create greater certainty in permit processing time using more consistent permitting processes amongst offices  lessen decision appeals or litigation by maintaining high standards for permitting, compliance, and environmental protection  Promote responsible stewardship of federal subsurface and surface resources  Place Section 365 funding resources where they will provide the best return  Determine most effective use of funding by assessing business processes, time, and resources expended  Identify and apply best business practices where most beneficial for the desired return PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008

17. BLM 2008 NFMC Measures Development Approach  Year two focused on refining performance measures for interagency coordination, environmental resource stewardship, and stakeholder responsiveness  Several new performance measure attributes added  Formalized the performance measure data requirements and reporting templates to facilitate the data collection process  Established a Year Two Report Collaborative Development Team comprised of Pilot office, agency and WO members PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008

18. BLM 2008 NFMC Next Steps/Deliverables  Complete the Year Three Final Report for Congress Continue collection and refine performance measures for Year Three Report Completed second (final) round of pilot office site visits and agency interviews to identify Year Three Report Recommendations Conducted interagency Pilot Workshop at National Fluid Minerals Conference Conduct a Pilot Project stakeholder satisfaction analysis  Expand Pilot Project communication framework Developed a Web-based Microsoft SharePoint Pilot Project communication resource Develop simple Web-based Pilot Project performance indicator dashboard resource for easy access by a variety of users Continue internal and external outreach opportunities  Recognize exceptional Pilot office performance or innovation PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008

19. BLM 2008 NFMC Next Steps / Deliverabiles (Cont’d)  Ongoing Development of the Year Three Report to Congress: Recent Pilot Workshop Review of Draft of Report Outline Conducted Breakout Group Discussions on Pilot Findings (Improvements and Challenges) for Y3R Recommendations Interagency Collaboration and Collocation Human Resources Business Process Improvements Environmental Stewardship Information Technology Section 365 Pilot Workshop Summary - May 21, 200719

20. BLM 2008 NFMC Next Steps / Deliverabiles (Cont’d) Development of Report Business Case is being undertaken to incorporate quantitative measures and qualitative aspects of the Pilot’s interagency performance - key to making a case to Congress for Pilot extension Quantitative Aspects Performance Data Financial Feasibility Qualitative Aspects Performance Categories Human Resources Information Technology Section 365 Pilot Workshop Summary - May 21, 200720

21. BLM 2008 NFMC Questions or Comments? James Gazewood, Project Manager Pilot Project Performance Assessment Contract BLM Wyoming State Office 307.775.6272 jim_gazewood@blm.gov PLA 2008 Annual Meeting - NEPA-Permitting Seminar - June 11-12, 2008