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Pawnee National Grassland Oil and Gas Leasing Analysis Pawnee National Grassland Oil and Gas Leasing Analysis Final Environmental Impact Statement December 2014 USDA Forest Service Rocky Mountain Region Arapaho and Roosevelt National Forests and Pawnee National Grassland The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, DC 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer. Arapaho and Roosevelt National Forests and Pawnee National Grassland Oil and Gas Leasing Final Environmental Impact Statement December 2014 Weld County, Colorado Lead Agency: USDA Forest Service Cooperating Agency: USDI Bureau of Land Management Responsible Official: Glenn Casamassa Forest Supervisor Arapaho and Roosevelt National Forests and Pawnee National Grassland 2150 Centre Avenue, Building E Fort Collins, CO 80526 970-295-6600 Project Contact: Joshua Milligan Forest Planner Arapaho and Roosevelt National Forests and Pawnee National Grassland 2150 Centre Avenue, Building E Fort Collins, CO 80526 (970) 295-6761 [email protected] Abstract: This Final Environmental Impact Statement (FEIS) has been prepared to document and disclose the estimated environmental impacts of a decision to make available and apply lease stipulations to National Forest System lands within the Pawnee National Grassland. The FEIS analyzes the potential impacts of the Forest-wide land availability determination by using a Reasonable Foreseeable Development Scenario (RFD). The FEIS also proposes lease stipulations and identifies where those stipulations would be applied on future leases when needed on administratively available lands. The proposed action would make approximately 100,000 acres administratively available and close through management direction approximately 3,000 acres. Administratively available lands would include a No Surface Occupancy stipulation. Three alternatives are analyzed in detail in the FEIS and include: Alternative 1: No Leasing; Alternative 2: No Action; and Alternative 3: Proposed Action. Executive Summary The Arapaho and Roosevelt National Forests and Pawnee National Grassland has prepared this Final Environmental Impact Statement (FEIS) to make a leasing decision for the Pawnee National Grassland (PNG). The following is provided as a summary of the major points in the FEIS. In many parts of the United States, National Forest System lands overlie geological formations that may contain oil and/or natural gas. The US Forest Service’s (Forest Service) national policy on minerals is expressed in the Minerals and Mining Policy Act of 1970 and states that the “[e]xploration, development, and production of mineral and energy resources and reclamation of activities are part of the Forest Service’s ecosystem management responsibility.” The Forest Service allows leases on many National Forest System lands for the purpose of drilling wells and extracting oil and/or gas. The Department of Interior, Bureau of Land Management (BLM), acts as the onshore leasing agent for the Federal Government. Forest Service regulations (36 CFR 228.102) developed in response to the Federal Onshore Oil and Gas Leasing Reform Act of 1987 (Leasing Reform Act) require a leasing analysis be completed prior to offering leases on National Forest System lands. The leasing analysis involves two determinations. First, whether lands on the PNG will be administratively available for leasing. Second, what stipulations must be included in any leases issued that are not included in standard lease terms. Stipulations can include timing limitations, controlled surface use, and no surface occupancy. Purpose and Need The purpose of this FEIS is to complete a Grassland wide leasing analysis that complies with the Leasing Reform Act. There is a need for a leasing decision that: 1. Accounts for current environmental considerations and oil and gas demand; 2. Best meets Forest Plan direction; and 3. Fulfills the federal government’s policy to "foster and encourage private enterprise in the development of economically sound and stable industries, and in the orderly and economic development of domestic resources to help assure satisfaction of industrial, security, and environmental needs" (Mining and Minerals Policy Act of 1970) while continuing to sustain the land’s productivity for other uses and capability to support biodiversity goals (Forest Service Minerals Program Policy). Stated briefly, the goal of this FEIS is to analyze different leasing alternatives on the PNG and determine which alternative best meets Forest Plan direction, Forest Service minerals policy, and the public interest. ES 1 Alternatives Because the leasing analysis involves determinations on availability and stipulations, the alternatives analyzed in this FEIS have different combinations of lands available and stipulations. However, because the PNG contains a mixture of private mineral estate, existing leases, and unleased lands, these determinations will apply most directly to the unleased portion of the PNG (approximately 100,000 acres). There are two primary reasons for this. First, approximately 46,000 acres of the PNG lie above private mineral estate. Because the mineral estate is privately held, federal availability determinations and lease stipulations do not apply. Second, approximately 43,000 acres of the PNG are already leased. Because these lease rights are already granted, they will continue under their existing terms until they expire. However, if existing leases expire, the land availability and lease stipulation determinations under this decision will be included in any future leasing decisions on these lands. The FEIS examines three alternatives in detail: (1) No Leasing; (2) No Action; and (3) No Surface Occupancy. Each of these alternatives is described briefly below: Alternative 1-No Leasing The No Leasing Alternative will designate all unleased lands on the PNG as administratively unavailable for lease. This means that no leases could be sold on these lands. Existing leases, if they expired, could also not be leased again. Alternative 2-No Action The No Action Alternative will continue the availability and stipulation determinations made as part of the 1997 Forest Plan. This decision made nearly all lands on the PNG available for leasing and included a mixture of stipulations (timing limitations, no surface occupancy, and controlled surface use). In short, these stipulations allow oil and gas development on the PNG surface so long as it conforms to the stipulations. Alternative 3-No Surface Occupancy The No Surface Occupancy Alternative will designate all unleased lands on the PNG as administratively available for lease. These lands will carry a no surface occupancy stipulation. This stipulation prohibits surface disturbance on the leasehold. In short, leases may be offered for sale, but once purchased, accessing and development of the oil and gas resource cannot occur directly on the surface of the leasehold and must be developed by off-site surface occupancy. The No Surface Occupancy Alternative is the Forest Service’s preferred alternative. ES 2 Potential Oil and Gas Activity on the PNG While a leasing analysis determines if leases can be sold (and under what stipulations), it does not authorize oil and gas development. In order to develop a federal lease, an operator must file an Application for Permit to Drill (APD) with the BLM. This application includes a surface use and drilling plan and must be approved before any development is allowed. The APD is also subject to the NEPA process. Because the leasing analysis does not authorize any development, the Forest Service uses a projection of expected oil and gas development called a Reasonably Foreseeable Development Scenario (RFD). BLM prepared an RFD for the Royal Gorge Field Office, which includes the PNG, in 2012. It projects oil and gas development over the next 20 years. In short, the RFD projects that, if the PNG is entirely available for lease under standard lease terms, that 265 new wells could be drilled in the short term. Of those wells, approximately 234 would remain in the long term. Issues and Concerns Issues and concerns were identified from interdisciplinary team analysis and comments received during the public involvement process. These issues and concerns are summarized below: Many respondents provided comments related to the impacts of hydraulic fracturing on groundwater, surface water, terrestrial wildlife, avian wildlife, soil, scenic, recreation, and air quality resources. They recommended that the EIS include disclosure of impacts to water rights, disposal of fluids, re-injection storage, the probability of leaks, the effects of leaks if they occur, and contamination avoidance measures were requested. Some comments included a recommendation that hydraulic fracturing be prohibited
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