1. NPR-3 Natrona County, WY 9,481 ac Sale price: $45M Buyer: Stranded Oil Resources Closed 1/30/15

2. NPR-3 Disposal Background/History Created by Executive Order in 1915 ≈ Public Domain Land Withdrawal Teapot Dome Scandal – 1920’s 1970’s – DOE custody – oil production & sales 1990’s – legislation directed sale – When costs exceed revenue – “Commercially accepted practices” – DOE reported intent to sell in 2012 Pres. Warren G. Harding

3. NPR-3 Disposal Process Solicitation for Broker Services (oil industry) IFQ to ID potential bidders Site visits, document review – Oil field info. – PSA form – Title info. IFB – sealed bid – Price only, no changes to terms of sale – $500K deposit due with bid Refunded to all but winning & backup bidders

4. NPR-3 Disposal Multi-Disciplinary Team RMOTC staff FE HQ staff Meagher Energy Advisors (oil broker) Local law firm GSA Utilization & Disposal MA GC

5. NPR-3 Disposal Challenges “Commercial practices” v Govt. requirements Continuity of oilfield operations Timely transfer of State permits Deadline for conveyance – appropriations ending NHPA – Consultation process schedule – Conservation Easement on 491ac Solutions Expertise of broker, GSA, local counsel RMOTC staff, broker outreach to industry Local counsel, DOE environmental counsel Weekly conference calls, shared sense of urgency Bifurcated closing – Mineral estate, bulk of surface – Surface of conservation easement lands

6. Questions? David Steinau david.steinau@hq.doe.gov 202-287-1503