Energy Policy Act of 2005 - Sec. 365 Pilot Project To Improve Federal Permit Coordination Permit Streamlining Pilot Upda

1. Energy Policy Act of 2005 - Sec. 365 Pilot Project To Improve Federal Permit Coordination Permit Streamlining Pilot Update James Gazewood, Petroleum Engineer, WY-921 Section 365 - Performance Assessment Project Manager Geospatial 2007 Conference May 7-11, 2007

2. Presentation Outline • Section 365 Background • Year One Pilot Accomplishments • Pilot Performance Summary • Overview of Performance Measures • Innovative Approaches • Application of Information Technology • Wrap-up / Q&A’s / Discussion

3. Section 365 -- Background • Project to Improve Federal Permit Coordination • Creates a Pilot Project to Improve Federal Permit Coordination in Seven Western BLM Field Offices • Field Offices are: • Carlsbad, New Mexico • Farmington, New Mexico • Vernal, Utah • Glenwood Springs, Colorado • Rawlins, Wyoming • Buffalo, Wyoming • Miles City, Montana

4. Section 365 -- Background (cont’d) • Project to Improve Federal Permit Coordination (cont’d) • Participating Federal Agencies: USFS, USF&WS, EPA, USACE, MMS, BOR and BIA • Staff expertise in laws for: endangered species, clean water and air, NEPA, cultural resources and planning • By 90-days sign MOU with USDOI, USDA, EPA & USACE • May add 5 State Governments to MOU • 30-days later, Federal agencies to assign staff to Pilot Offices • 90-days later, assigned staff to report to Pilot Offices • DOI to assign additional personnel to the 7 Field Offices to ensure effective implementation of the Act – includes inspection and enforcement

5. Section 365 -- Background (cont’d) • Project to Improve Federal Permit Coordination (cont’d) • 3 year report to Congress – Contract to Booz-Allen-Hamilton to measure changes and identify best practices and needed improvements • Annual status reports for years one and two • Compare office processes – Adapt during pilot effort if appropriate • Identify legal, policy, and operational changes needed • Expect critical oversight by Congress

6. Pilot Project Key Outcomes • Focus on interagency coordination and cooperation • Streamline processes, encourage innovation, improve information sharing, increase interagency efficiency, and eliminate duplication between Federal and state agencies • Increase ability to process Applications for Permit to Drill (APDs) in a more timely manner • Improve customer services through a more consistent approach among BLM Field Offices and greater certainty in processing time requirements • Maintain or enhance high standards of safety and environmental protection through effective I&E program • Promote responsible stewardship of Federal subsurface and surface resources

7. Presentation Outline • Section 365 Background • Year One Pilot Accomplishments • Pilot Performance Summary • Overview of Performance Measures • Innovative Approaches • Application of Information Technology • Wrap-up / Q&A’s / Discussion

8. Overall Accomplishments • National Interagency MOU signed October 24, 2005 • Two weeks ahead of deadline • Significant increase in interagency coordination • Fundingdistributed to Federal partners • Pilot Office staffing basically complete (with additions ongoing) • Performance improvements in Pilot Offices • Innovative approaches being developed and implemented • Performance Measures identified, data collection initiated

9. Interagency Memorandum of Understanding • In addition, MOUs signed with State agencies in MT, NM & WY

10. Federal Agency Funding $20,300,000

11. Pilot Office Staffing - Federal • 149.5 Federal target positions identified. • 135.5 (91%) hired as of 4-01-07 • Most positions reported February, March and April, 2006 • BLM - 116 hired, 9 remaining • USFWS - 8 hired, 5 remaining • USFS - 6 hired, 0 remaining • USACE - 3.5 hired, 0 remaining • BIA - 1 hired, 0 remaining • BOR - 1 hired, 0 remaining

12. Pilot Office Staffing – State Agencies • MT DEQ – 1 air and 2 water quality positions, Miles City • MT Dept of Fish, WL, & Parks – 1 biologist, Miles City • NM Oil Conservation Division – 2 inspectors, CFO & FFO • WY DEQ - 1 water permitting position, Cheyenne • WY G&F – 2 biologist positions, BFO & RFO • WY SHPO – 0.5 archeologist position – Initiating MOU • CO DNR – Discussions Ongoing • Other State Agency contact ongoing

13. Presentation Outline • Section 365 Background • Year One Pilot Accomplishments • Pilot Performance Summary • Overview of Performance Measures • Innovative Approaches • Application of Information Technology • Wrap-up / Q&A’s / Discussion

14. Performance Improvements • Initial focus Year One was Applications for Permit to Drill (APDs) and inspection and enforcement • Pilot Offices processed 15% more APDs in FY 2006 • Pilot Offices received 29% more APDs in FY 2006 • Pilot Offices processed 20% more Rights of Way in FY 2006 • Pilot Offices completed 39% more inspections in the past two years

15. APDs Processed – 2001 to 2006, Pilot Offices and all Bureau of Land Management

16. APDs Received and Processed - 2006

17. APD Outcomes - FY 2006

18. Presentation Outline • Section 365 Background • Year One Pilot Accomplishments • Pilot Performance Summary • Overview of Performance Measures • Innovative Approaches • Application of Information Technology • Wrap-up / Q&A’s / Discussion

19. Performance Measures • Significant effort by Booz-Allen-Hamilton to identify and validate performance measures. • Critical Foundation for Three Year Report to Congress • Is the basis for data collection for years two and three and beyond

20. Measures Development Approach • Developed the means and measures to assess progress in implementing the Pilot Project on a regular basis • Visited the 7 BLM Pilot Project Field Offices • Solicited Pilot Office input on recommended performance measures with emphasis on interagency process improvement • Verified and refining measures • Identified Pilot Office site-specific processes and issues • Assessing how Pilot Implementation is proceeding for Year Two • Initiating improved performance data collection • Modifying measures based on input from the 7 BLM Pilot Project Field Offices and Interagency Partners

21. Pilot Performance Categories

22. Interagency Performance Measures 1

23. Business Processes Measures 2

24. Stakeholder Responsiveness Measures 3

25. Financial Accountability Measures 4

26. Presentation Outline • Section 365 Background • Year One Pilot Accomplishments • Pilot Performance Summary • Overview of Performance Measures • Innovative Approaches • Application of Information Technology • Wrap-up / Q&A’s / Discussion

27. Innovative Approaches • Improved Interagency Coordination • More frequent contacts • Information sharing • Priority support • Comprehensive strategies to increase permit processing efficiency • Plan of Development (PODs) • Geographic Area Plans (GAPs) • Standard Operating Practice (SOP) Agreements • Section 390 - Statutory Categorical Exclusions (CXs) • Large area extent (block) cultural and wildlife surveys

28. Innovative Approaches (Cont’d) • Improving Responsiveness to Stakeholders • Pre-permit planning support • Surface compliance monitoring • Operator outreach meetings • Use of Contracted Support Services • NEPA analysis • Cultural resources inventory and protection • Assessment of operator compliance • GIS and IT systems and data support • Recruitment and Hiring • National level recruitment coordination • Hiring and retention incentives

29. Presentation Outline • Section 365 Background • Year One Pilot Accomplishments • Pilot Performance Summary • Overview of Performance Measures • Innovative Approaches • Application of Information Technology • Wrap-up / Q&A’s / Discussion

30. Innovative Approaches • Application of Information Technology • #1 - Permit and project status tracking • Stand-alone AFMSS-related extensions such as automated operator notice (letter) generation • Spreadsheets / databases with improved interagency consultation and operator response status tracking • Spreadsheets / databases to capture, track and status project-level permitting data and processes (POD, GAP, data to support the NEPA document generation process [CISCoAT]) • Inspection-related – Activity tracking and automated inspection forms to support an AFMSS Portable Field Inspection concept

31. Innovative Approaches • Application of Information Technology (Cont’d) • #2 - Business process automation • Need for full electronic permit / report submission (critical need to bring WIS back online and support operator batch permitting • NEPA analysis and documentation (EA, CX and FONSI), cumulative impact and COA tracking and monitoring • For both BLM & USFS (e.g., BFO NEPA CISCoAT) • Full automation of the cultural survey review process (NM/WY) • Industry’s use of the CRISP GIS Tool (Show surveys) • CRM Tracker (survey submission to BLM on to SHPO) • Critical need for AFMSS PFI capabilities (“Whole Enchilada”) • Cover downhole & surface compliance inspections

32. Innovative Approaches • Application of Information Technology (Cont’d) • #3 - Geographic Information Systems (GIS) • Publish BLM resource, lease stipulation and land status GIS information for online or CD-ROM use by industry • Now accepting operator submission of GIS-based project permit information. New Onshore Order No. 1 Geospatial Database Rqmts • Now using predictive and visual resource modeling to best locate facilities and to minimize surface impacts • Full integration and utilization of GIS-based data for use by BLM permit and inspection personnel to support daily workloads (e.g., real-time use of stips, COAs, automated field maps, etc.) • Now working to develop interagency project permitting GIS-based web portals (Wyoming Governor’s S&S Project [WOGCC/DEQ/SEO/BLM])

33. Innovative Approaches • Application of Information Technology (Cont’d) • #4 - Interfacing with State Agencies / Commissions • MOUs with DEQs, G&F and O&G Commission evolving to include • Data sharing • System to system interfacing • Cooperative system development and maintenance • BLM Pilot Offices depend very heavily on state commission websites and want to expand or solely utilize such capabilities • Due to Cobell constraints, became mission critical to BLM • For a number of states, commission websites are easy to use, flexible and provide more capabilities than BLM’s • BLM & Commission process convergence has begun in Pilots • Take-up of of GWPC’s RDBMS by BLM Pilot Offices • One Stop Permitting – Interagency / Industry completion of electronic submission standard (WITSML / ePermit XML)

34. Presentation Outline • Section 365 Background • Year One Pilot Accomplishments • Pilot Performance Summary • Overview of Performance Measures • Innovative Approaches • Application of Information Technology • Wrap-up / Q&A’s / Discussion

35. Next Steps • Build and maintain contact networks between agencies and between Pilot Offices • Collect performance measures data from all agencies • Design automated performance reports • Analyze year two results, Report to Congress foundation established • Develop Fluid Minerals IT Optimization Strategy as a part of the Year Three Congressional Report

36. Summary & Challenge • SignificantProgress in Year One • Innovation, improved interagency processes and efficiency, better customer service, and enhanced environmental stewardship must be our focus for the coming years

37. Section 365 Pilot Update Questions or Comments?