Welcome to Community Briefing Concerning Proposed Gas Drilling Near Monument and Palmer Lake

1. Welcome to Community Briefing Concerning Proposed Gas Drilling Near Monument and Palmer Lake

2. Agenda and introductions: • Introduction to “FRERC”---Chris Amenson • Why are we here?---Fred Lanyon • What is involved in exploratory drilling? Bill Benson • Area case studies of similar explorations-- Gloria Lanyon • Community Discussion---Chris Amenson

3. Introductions: • Front Range Environmental Resource Coalition is a community group and legal entity (501 c 3) • Officers are: Chris Amenson, Glenn Yoder, Gloria Lanyon, Fred Lanyon • Memberships are interested parties from local HOAs • Red Rock Ranch, Red Rock Reserve • Forest View Estates I & II, III & IV • Shiloh Pines, Forest View Acres • Cloven Hoof • Communities invited to participate---Palmer Lake, Monument

4. Goals of FRERC • To gather information relevant to our community of the risks involved in gas drilling in the Mt. Herman area • To communicate that information to residents and businesses • To focus our possible responses and communicate them to relevant parties • To provide a means to seek to ensure best efforts at adequate controls.

5. The Scope of the Matter by Fred Lanyon

6. Dyad Petroleum Company of Midland, TXhas leased approximately 21,000 acres in our Front Range area from the Forest Service for "wildcat" exploration for natural gas. • The exploration is allowed under the 1982 Forest Service management plan. • That plan was formulated before the population explosion that currently abuts the Pike National Forest in the Tri-Lakes Area. • Dyad Petroleum currently has two applications before the Forest Service and Bureau of Land Management (BLM) for review.

7. Dyad Petroleum's plans call for directional drilling under Mt. Raspberry which is immediately behind the Red Rocks Ranch subdivision. • Potentially two 5-acre drilling pads would be cleared from the mixed conifer forest. • An access road would be be built to the drilling pad. • Retaining ponds would be constructed for each well.

8. If the initial wells are commercially successful then Dyad plans to build a gas collection and compression facility on Mt. Herman road about 1/3 mile from the corner of Mt. Herman and Red Rocks Roads near where the white Forest Service signs are located.

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11. The Forest Service Environmental Impact Statement (EIS) draft is in internal review and approval and should be released soon (next few weeks?). • After the EIS draft release there will be a 30 day public comment period followed by a Forest Service rework of the EIS in response to comments obtained and then final release of the EIS.

12. The Process and its inherent risks—Bill Benson

13. A Case Study (where things didn’t go as anticipated) by---Gloria Lanyon

14. Pinedale, Wyoming A Cautionary Tale

18. HEALTH ISSUES WHICH RESULTED • Contamination of surface & groundwater • Dust and air pollution • Soil contamination • Noise pollution • Light pollution • Stress related to living in an industrial zone

19. SAFETY ISSUES • Potential home fires and explosions (Clark, Wyoming) • Potential of fires or pollution from accidents or improper worker conduct; e.g., blowouts • Increased community crime from new workers

21. DECLINE IN QUALITY OF LIFE • Water well depletion or loss • Degradation of water quality • Land disturbance / soil erosion • Vegetation die-off & introduction of noxious weeds • Damage to roads • Traffic congestion • Loss of wildlife • Loss of aesthetics from industrialization of wild landscapes

22. WATER QUALITY EFFECTED • Local wells have been tested and contained benzene and TPH (total petroleum hydrocarbons)(Pinedale Roundup 5/18/06, 9/27/07; Denver Post 9/9/06) • High mountain lakes have shown degradation in the Bridger Wilderness including oxygen deficiency, acidification from drilling rig emissions harming prized trout fisheries & delicate aquatic ecosystems( Pinedale Roundup 5/18/06 & Upper Green River Valley Coalition) • Federal regulations don’t require drilling companies to reveal chemicals used in their drilling

23. WILDLIFE LOSS • Pinedale’s valley is home to 25 species listed as threatened or endangered, Bald Eagle, Mountain Plover, Northern Goshawk, Peregrine Falcon. Wintering ground for elk, pronghorn antelope. • By 2005, an estimated 46% of winter mule deer herd had already disappeared (Pinedale Roundup 10/13/2005) • There has been a 51% decline of male sage grouse on their lakes, (sage grouse are considered a harbinger species)(Pinedale Roundup 10/13/2005)

24. AIR QUALITY DECLINE • The nation’s cleanest air now has turned to a constant brown haze over Pinedale (Upper Green River Valley Coalition, 4/10/2006) • Wyoming Dept. of Environmental Quality issued two Ozone Advisories for 3/23 and 3/24 for the Upper Green River Valley in Sublette County. These were the 4th and 5th Ozone Advisories from DEQ within 27 days between February & March, 2008 (Pinedale Online! 3/23/08) • BLM’s own analysis suggests that level of development could diminish air quality as far north as Grand Teton National Park (Denver Post 9/9/06)

28. Final Comments and Open Discussion Chris Amenson

29. Dyad is a privately-held company of eight people, located in Midland, TX. I could find no outstanding litigation concerning them. • We twice invited Dyad Petroleum Company to come tonight to discuss with us what they plan, and how they would protect our environment. • Dyad declined to come to meet with us tonight, indicating that “…it is premature for me to be meeting with your group. The Drilling Permit has not been issued and it is still not definite that a permit will be granted.” • “…if a well is drilled as planned, I would suggest a meeting with a few of your community leaders with the US Forest Service would be helpful.”

30. This proposed drilling is in our back yard. If notus, who? If not now, when? Will you help keep our neighborhood? ê

31. Critical Success Factors… • Enhance information flow to all of us. • Ensure accountability for responsible parties. • Heighten public awareness through communication • Being willing to fund for critical costs

32. Call to Action… Accountable Entities Dyad Petroleum BLM Potential Community Impact US Forest Service Natural Setting Local Gov’t Water Boards Wildlife Habitat HOA’s Awareness Information Air/Water Quality Community Meetings Noise/Traffic Media /Press Property Values Lessons Learned (Pinedale)

33. Communication Coverage… Cloven Hoof Forest View Acres Red Rock Ranch Fred and Gloria Lanyon Shiloh Pines Marianne LaRivee Forest View I & II Glenn Yoder Forest View III & IV Lowell Pierce ê

34. We Believe… Factual Understanding

35. We Believe… Factual Understanding + Community Involvement

36. We Believe… Factual Understanding + Community Involvement + Unity of Purpose

37. We Believe… Factual Understanding + Community Involvement + Unity of Purpose = Best Possible Outcome

38. Things You Might Consider: • E-mail Jeff Hovermale to get a copy of the EIS sent to you: jhovermale@fs.fed.us • Get in touch with your state and federal representatives to let your opinion be known and heard. Tell them you will hold them accountable. Their e-mail addresses can be found at: www.leg.state.co.us/Clics/CLICS2008A/csl.nsf/directory?openframeset • Attend the Comment Forum to be held by US Forest Service---date to be announced. • Keep up to date by frequently checking in at the FRERC website: www.frerc.org

39. Things You Might Consider: • Tell your friends and neighbors about what is being considered and to get involved. • Hold your local town governments (Monument and Palmer Lake) accountable for protecting your water and air. Let them know you will. • Come to the next open meeting we will have---once the EIS is released and we have an opportunity to review and comment upon it.

40. Help we can use---labor and money! • Representing your neighborhood. • Review of the upcoming Environmental Impact Statement ---do you know a person or an organization who has the skills to critique the EIS report? • Not now, but likely soon, we will need tax deductible financial contributions from community members who want to do their best to protect out community. Money will be used only for evaluation costs and legal expenses. • Will you help us help you? • Will you stay involved? Give us your e-mail.

41. Next Steps… • EIS – Review and Comment • Deciding on follow-up meeting plans Thank you for coming tonight.