MEMORANDUM To: Laura Riley, Deputy Commissioner Thru: Dana Vackar Strang, Director of Field Operations Michael Perry, Assistant Commissioner of Field Operations From: Will Barnes, Deputy Director of Field Operations Subject: SI-0183 Alisa Ogden/Murchison Well Pad site Date: January 13, 2017 This Self-Initiated Report is filed in response to a request by grazing lessee Alisa Ogden (GO-1866) related to the siting of the Jawbone 3 & 4 well pad by Murchison Oil Co. in Lot 3 of T25S R26E in Eddy County. Ms. Ogden is concerned that the well pad is located in extremely fragile erodible soils and that it will create deep head cuts, high levels of sediment transport and degraded rangeland downstream from the well pad. The site was inspected by Will Barnes, Casey Hendricks, Megan Boatright and Robert Kasuboski on Wednesday January 11, 2017. There are several concerns. The pad is located on a hillslope in low infiltration, erodible gypsum dominated soils. The southern end of the pad is marked by an old road that is now incised and already drains the swale on either side. Construction of the pad will require that a significant portion of the hill be cut away and the material pushed into the drainage as fill. Purportedly, the cut-wall will be 37 feet deep. The outer edge of the pad will likely obstruct the natural hydrologic flow pattern in the valley and will require a hard barricade to protect the outer wall of the pad. In addition, the increase in runoff from precipitation, caused by the impermeable surfaces of the pad will cause head-cutting in the drainage and will need to be addressed. In addition, increased erosion in the valley will drain ground water flows and will degrade the remaining forage resources that are not directly impacted by the pad. We strongly recommend that a drainage plan addressing erosion and runoff accompany the pad design. In addition, this drainage is located in Zone C of the impending Texas Hornshell Mussell CCAA which will eventually require attention to sediment flows headed toward the Black River. It would be best to address those concerns now before the pad is built. In addition, three individuals of the state endangered plant Gypsum buckwheat, Eriogonum gypsophilum was discovered in the northwest corner of the proposed well pad site. Gypsum buckwheat is federally listed as threatened, and state listed as endangered in New Mexico. If the well pad is constructed, the population identified will be permanently removed. Best Management Practices would suggest that a biological survey be conducted to determine the extent of potential impacts. If presence of the species is confirmed, it is recommended that the pad be re-located. A larger group of Gypsum buckwheat was located on the BLM side of the ridge adjacent to the well pad site. Endangered species are regulated by the United States Fish and Wildlife Service under the Endangered Species Act [ESA]—Title 16 USC Chapter 35 §§ 1531-1544. Specifically, §9(a)(2)(B) of the ESA states that it is unlawful “to remove and reduce to possession any such species [listed plant] from areas under Federal jurisdiction; maliciously damage or destroy any such species on any such area; or remove, cut, dig up, or damage or destroy any such species on any other area in knowing violation of any law or regulation of any State.” The objective of NMAC §19.21.2 is “to prevent the extinction or extirpation of native plant species in the state of New Mexico.” Pursuant to this rule, the taking of endangered species is prohibited. “Taking” means “the removal, with the intent to possess, transport, export, sell, or offer for sale any of the plants listed in 19.21.2.9 NMAC, from the places in the state of New Mexico where they naturally grow.” (NMAC §19.21.2.7(C)). [For more information related to the regulation of state listed plants in New Mexico, please contact Daniela Roth, State Botany Program Coordinator, EMNRD at 505-476-3347 or Daniela.Roth@state.nm.us.] If potential disturbance of listed plants may occur due to proposed lessee activities, State Land Office policy states that the lessee will be notified of the occurrence and provided with the applicable state law. See, the New Mexico endangered plant species rule NMAC §19.21.2. http://164.64.110.239/nmac/parts/title19/19.021.0002.pdf Recommendation: We recommend that a biological survey, as well as a drainage plan accompany the siting of this pad, and suggest that this pad would be better placed elsewhere in less fragile soils in an area not occupied by any listed species. Note: On January 23, 2017, before this memo could be completed, Robert Kasuboski reported that the well pad called Jawbone 3 & 4 had already been constructed, and that the company plans to put a frac pond in the drainage, and a pipeline across the ridge toward the Black River. He learned these plans from a discussion with Ms. Ogden, the grazing lessee. We reiterate our recommendation that biological surveys should be ordered prior to any further construction, and that erosion control structures be designed to manage the increased runoff from this development. This situation is an example of how field review prior to installation of oil & gas infrastructure could be beneficial to the trust. ! Map 1. Showing location of the well pad called Jawbone 3 & 4 in Lot 3 of T25S R26E. ! Map 2. Showing close-up view of the top of the section along the gypsum ridgeline and the old road, faintly visible south of the section line and to the north of the drainage. The well pad extends from the section line to the road cut. ! Soil Map: The gray zone represents Gypsum land-Cottonwood complex 0-3 percent slopes, and shows that the entire well pad is located in this Gyp Upland Ecological Site. From the NRCS Web Soil Mapping site. ! Topo Map: Showing elevation change of 40 feet from northern boundary of the section (NE corner of the well pad) to the old road which is at the SW corner of the pad. ! ! The red leafed plant is Gypsum buckwheat (Eriogonum gypsophilum) and is one of the individual plants discovered inside the well pad site on January 11, 2017. This is the second Gypsum buckwheat plant discovered inside the well pad site on January 11, 2017. ! This is the third Gypsum buckwheat plant discovered inside the well pad site on January 11, 2017.