Regulatory Uncertainty

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Regulatory Uncertainty and Production Impacts
Duane Zavadil Bill Barrett Corporation
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Land Ownership
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APDs Waiting
Resource Area Pending APDs Days Pending
Buffalo 1256 293 Farmington 187
321 Pinedale 119 189 Vernal 175 189

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(No Transcript)
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Optimistic Time Requirements for NEPA Compliance
1 year
2 years
Categorical Exclusion or DNA
2 weeks to 6 months
Single Well/ROW EA
6 months
2-3 K
Small Exploratory Or Development EA
1 year
Field Development EIS
2 years
Large Field EIS or RMP
2 ½ years
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Cost of NEPA Compliance
2.5 MM
1-2 MM
250 K
20 K
2-3 K
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Other Multiple Use Resources

• Archeological Resources
• Cultural Resources
• Paleontological Resources
• Threatened and EndangeredSpecies
• Species of Special Concern
• Visual Resources
• Hunting
• Recreational Vehicles
• Raptors
• Soils
• Range/Grazing

• Air Quality
• Water Quality
• Flood Plains
• Riparian Areas
• Prime and Unique Farmland
• Wild and Scenic Rivers
• Wilderness and WildernessStudy Areas
• Aquatic Species / Fishing
• Wild Horses
• Areas of CriticalEnvironmental Concern

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Typical Seasonal Restrictions
J F M A M J J A S O N D
Mule Deer Wintering
Elk Wintering
Mule Deer Fawning
Elk Calving
Sage Grouse Mating
Raptor Nesting
Spotted Owl Nesting
Burrowing Owl Nesting
Big Horn Sheep Lambing
Sage Grouse Wintering
Mountain Plover Nesting
Pending
Southwest Flycatcher Nesting
Dessert Tortoise
Moose
No Disturbance
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Anti-Oil and Gas Spending
Local Groups
Western Organization of Resource Councils
757,000 Northern Plains Resource Council
864,000 Powder River Basin Resource Council
296,000 Greater Yellowstone Coalition 1,815,00
0 San Juan Citizens Alliance 177,531 Oil
and Gas Accountability Project
262,000 Wyoming Outdoor Council
661,000 Southern Utah Wilderness
Alliance 1,890,000 Total 7,099,000
(2001 Tax Returns)
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Anti-Oil and Gas Spending
National Groups
Sierra Club 75,440,000 Earth
Justice 17,965,000 Natural Resource Defense
Council 55,697,000 Wilderness
Society 24,119,000 Total 173,221,000
(2001 Tax Returns)
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Cumulative Impacts

• Supply Shortages
• Limited Capital Availability
• Equity Devaluation
• Drainage/Inefficient Production
• Disproportionate State and Fee Production
• Inadequate Pipeline Capacity/Basis Differential
  Spikes

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Active Rig Count
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Current Federal Energy Production Efforts
Rocky Mountain Energy Council White House Task
Force on Energy Streamlining Energy-Oriented
Political Appointees Natural Gas Supply
Hearings Energy Bill Provisions? Oil and Gas
Instructional Memoranda(6) Department of
Interiors Implementation Plan for Presidents
Energy Policy WIA Settlement
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Needed Actions

• Affirmative Support of Energy Development
• Encourage Market Solutions
• Reverse Engineer Regulatory Capacity
• Employ Private Sector Models

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Improving Federal Lands Access
Employ Private Sector Model

• Establish Production Goals and Reverse Engineer
  Organization
• Create Group to Understand and Promote
  Development
• Reorganize to Separate Regulatory and Development
  Roles
• Perform Spec NEPA for Exploratory Activities
• Coordinate/Negotiate with Sister Agencies
• Allocate a Portion of Royalties to
  Promotion/Management
• Production Incentives

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Improving Federal Lands Access

• Prompt Decision Making
• Resource Specialist Prioritization
• Mineral Staffing
• State-Wide/Region Wide NEPA Teams
• NEPA/FONSI Guidance Policy
• Energy Education
• Final Resolution of Wilderness Study Areas

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State Regulatory Reforms

• Strengthen and Streamline NPDES Program
• Resolve Interstate Issues with Montana
• Establish Fixed Water Quality Targets
• Confirm Right of In-Stream Flow
• -Appropriate Organization, Staffing, and
  Capabilities
• -Monitor and Adapt

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State Regulatory Reforms (continued)

• Increase Responsiveness of Air Quality Program
• Increase Flexibility For Movement and
• Replacement of Compressors and Dehys
• Reduce Permit Processing Times
• Employ General Permits for Minor Sources
• -Monitor and Adapt

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Industry Responsibilities

• Agency Involvement
• Political Advocacy
• Public Acceptance