United States Department of the Interior Bureau of Land Management New Mexico State Office 1474 Rodeo Road P.O. Box 27115 Santa Fe, New Mexico 87502-0115 www.nm.blm.gov In Reply Refer To: 9213 (93000) N 4000 3160 July 25, 2003 EMS Transmission - 7/25/03 Instruction Memorandum NM-2003-056 Expires: 09/30/2004 To: FM’s From: Deputy State Director, Resource Planning, Use, and Protection Subject: Oil and Gas Activity Coordination with Grazing Permittee/Lessees Program Areas Oil and Gas Program and Range Management Program. Purpose The BLM New Mexico has committed to improve our communication with grazing permittees/lessees regarding oil and gas development on public lands. The IM establishes procedures for Field Offices to follow to ensure alignment among offices regarding notification and participation of livestock grazing permittees/lessees about oil and gas activities on public lands. This effort is part of our overall commitment to employ the Secretary’s Four C’s (communication, consultation, and cooperation to accomplish conservation) with the various public land users, while seeking a balance in multiple resource use, development, and conservation. Background In the past, Field Offices routinely provided surface owners overlying Federal mineral leases the opportunity to participate in the predrill visit to an oil and gas well location. We have not always offered the same opportunity to the grazing permittees/lessees. 2 Improved coordination and integration of the grazing permittee/lessee operations with oil and gas activity would follow the public land management prescriptions outlined by the Secretary’s Four C’s. The Secretary of the Interior has established the Four C’s as the central core of the Department’s mission. Our mission in the BLM is to sustain the health, diversity, and productivity of the public lands (productive harmony) for the use and enjoyment of present and future generations. As we manage the public lands, we should look for opportunities to build new partnerships between our agency and public land users. The workload faced by the Field Offices has grown in complexity as greater demands are placed on the public lands. We have to be particularly sensitive to the impacts of our decisions on local communities and the people who make a living on the land as we develop policy. We would like to enhance the relationships already built with the local public land users, especially as we balance the development of widespread oil and gas resources in regard to the existing grazing permittee/lessee operations. Policy/Actions We are establishing the following as beginning steps in meeting the Department’s objectives. Oil and gas Applications for Permit to Drill (APD), Plans of Development, unitization, and field development proposals signal the oil and gas lessee’s intention to develop their resource. Once notified of an operator’s intent to develop based on geological reservoir characteristics, well spacing and setbacks, including operational needs, the BLM’s responsibility is to ensure timely analysis and authorization using the best available data. During the BLM review of these applications and proposals, the BLM conducts its analysis to determine whether the proposed location is sound both from a technical and environmental standpoint. It is important that the BLM utilize the most recent data regarding impacts to public land resources, including notification and coordination with existing grazing operations that depend on public lands. Onsite schedules and authorizations of permits must remain on schedule as prescribed by the Onshore Oil and Gas Order Number One. 1. During the APD permitting process, prior to the onsite predrill meeting, it is the responsibility of the Field Office Manager to ensure timely notification by telephone, if possible, to the affected grazing permittee/lessee. If it is not possible to reach the permittee/lessee by telephone, a notice should be mailed by the most rapid means possible. The intent is to inform the permittee/lessee of the proposed well location; extent of surface disturbance; the duration of the drilling operation in a sufficient manner to receive meaningful input; and especially if they are unable to participate at the onsite, alerts the permittee/lessee of the availability of the analysis if they choose to comment. The permittee should be notified to improve cooperation between competing surface uses in oil and gas areas. The BLM encourages participation in face-to-face dialog at the onsite for better communication of ideas and overall understanding. 3 2. Final reclamation approval and inspection of oil and gas drill pads and facility sites will not be made without at least notifying the specific grazing permittee/lessee. The Field Office will enforce the prescribed Conditions of Approval for the well site; and the Authorized Officer, determines when final reclamation has been satisfied. Budget Implications Budget impacts should not be significant, but the Field Office staff should realize a heightened awareness of providing customer service to our grazing permittee/lessee stakeholders. Coordination If you have any questions regarding implementation of this IM, please contact Carsten Goff, Deputy State Director, at (505) 438-7488, or Bob Alexander at (505) 438-7428, or Steve Wells at (505) 438-7438 from the Resource staff. Signed by: Carsten F. Goff Distribution WO (220), LS, Rm. 314 - 1 WO (310), LS, Rm. 501 - 1 NM (930, R. Alexander) - 1 NM (930, S. Wells) - 1 Authenticated by: Marcy Romero Staff Assistant