Amy Lueders, BLM New Mexico State Director June 28, 2017 New Mexico EnergyPlex Conference BLM – New Mexico New Mexico EnergyPlex Conference BLM-NM manages: • One of the largest oil and gas programs in the Bureau • Over 45 million acres of mineral estate • Over 2 million acres of Native American (Indian) mineral estate BLM – New Mexico BLM-NM Onshore Oil and Gas Management Program Overview Onshore oil production on federal lands (2014) Source: Office of Natural Resources Revenue. It does not include Indian lands. Onshore gas production on federal lands (2014) BLM – New Mexico BLM-NM Onshore Oil and Gas Management Program Overview BLM – New Mexico October 3, 2016 – NMOGA Annual Meeting Disbursements to State of New Mexico
 FY 2007-2015 2016 New Mexico Lease Summary: • 7,881 Leases (total) • 6,619 Producing Lease (84%) The Carlsbad Field Office manages: • 3,005,350 acres of Federal minerals • 1,852,959 acres are currently leased (61.6%) BLM – New Mexico Statewide Oil and Gas Lease Summary Includes Roswell & Carlsbad Field Offices and Hobbs Field Station Statistics Total mineral royalties/revenues received (dollars) Natural gas produced (million cubic feet mcf) Oil produced (barrels) Approved APDs Oil and gas only royalties Fees, bonus bids, and other mineral revenues and royalties 2015 2016 $730,180,766 $559,953,403 $285,889,691 $74,394,296 683 $627,959,537 833 $455,481,822 $85,920,558 $92,589,286 BLM – New Mexico BLM Pecos District Statistics Some operators are estimating 60 horizontal wells per section Marathon Oil Company, North American Shale Magazine BLM – New Mexico Multi-Pay Development BLM – New Mexico Approved APDs by Field Office
 FY 2007-2017, YTD (*June 21, 2017)
 900 800 700 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 CFO 2012 2013 RFO 2014 2015 2016 2017* BLM – New Mexico APD Statistics for FY 2017, YTD 
 (as of June 21, 2017) Same as slide 3, just has a note in the legend that HFS APDs are included in the CFO count. Not sure if Amy wants to cover that or not, so I included both versions. 600 500 400 300 521 200 371 259 100 177 115 0 13 Pending at Start of FY 2 Received 2 Approved 0 88 13 2 Rejected or Closed Pending as of June Wells Spudded YTD 21, 2017 Carlsbad (incl. Hobbs) Roswell Major project on the radar: Corona Wind Test Project ➢ Application has been filed by Cowboy Mesa Wind LLC. ➢ 200,000 acres total (BLM, State and Private lands) ➢ Planned to connect to the SunZia Transmission Line ➢ Estimated 1500-1750 MW of energy generation ➢ NEPA analysis is currently underway prior to issuance of rightof-way for wind testing. BLM – New Mexico Roswell Area Renewables 1.Making America Safe Through Energy Independence 2.Making America Great Through Shared Conservation Stewardship 3. Making America Safe 4.Restoring Our Getting America Back to Work 5.Serving the American Family BLM – New Mexico National BLM Priorities Hydraulic Fracturing (HF) Rule June 17, 2017 – Proposal to rescind HF Rule Office of Management and Budget (OMB) Currently under review by OMB simmonsandfletcher.com BLM – New Mexico Current BLM Initiatives Waste Prevention Rule June 9, 2017 – • Federal Register Notice published postponing (2 yrs) future compliance dates due to pending litigation BLM – New Mexico Current BLM Initiatives • • • WO priority is on wells >25 years Statewide, there are currently 645 idle wells (7 to >25 years) Field offices will be sending out notices for the operators to plug or produce these wells BLM – New Mexico Idle Well IM Status October 3, 2016 – NMOGA Annual Meeting Current BLM Initiatives Status • AFMSS 2 has been implemented nationally • Currently working to refine AFMSS 2 APD module • Full implementation of all modules anticipated January 2018 BLM – New Mexico AFMSS2 Sundry/Well Completion Modules October 3, 2016 – NMOGA Annual Meeting Current BLM Initiatives • Recruitment and Retention of Staff • Increased Permitting Workload – APDs – Sundries – ROWs • Completion of Resource Management Plan (RMP) • AFMSS 2 Implementation BLM – New Mexico Pecos District Challenges Current and Ongoing Pecos District Office Initiatives Commingling Agreements – Working with industry to increase efficiencies in processing and approval AFMSS II – Industry Training – Working with AFMSS 2 contractor to improve functionality Rights of Way (ROWs) – Working with Operators and 3rd party water contractors to improve communication and processing times for fresh water and produced water temporary pipelines ROWs BLM – New Mexico Overcoming Challenges- • Vernal, Oklahoma and Farmington BLM Offices are assisting with permitting • Carlsbad receives priority in hiring new positions BLM – New Mexico Overcoming Challenges -Assistance • Permian Basin Programmatic Agreement • 2012 Secretarial Potash Order • Implementation of 43 CFRs 3173: Site Security 3174: Oil Measurement 3175: Gas Measurement BLM – New Mexico Overcoming Challenges- Partnerships Pecos District Office is receiving support from all levels: • City, Counties and State • BLM Nationally • Oil and Gas Industry BLM – New Mexico Overcoming Challenges-Support Carlsbad Resource Management Plan (RMP) Revision • Fall 2017 (September) - 90-day public comment period begins • November 2017 through August 2018 - Public comment analysis and revisions (which includes Preliminary Proposed RMP/Final EIS preparation and a subsequent internal review and comment) • September 2018 - Proposed RMP/Final EIS Publication begins • May 2019 - ROD signed BLM – New Mexico RMP Updates Ga 7. 9 9 . 75% of O&G revenue from Federal minerals in NM (2015) $614.8M in revenue (2015); half went to the State 2.1M acres Federal surface 2.8M acres Federal minerals 1M acres reclaimed/restored