The Western Association of Fish and Wildlife Agencies, who is the managing agency over the Lesser Prairie Chicken, has issued a press release stating that because of the recent court decision, the final listing of the species has not occurred so the agency has reopened enrollment.

FOR IMMEDIATE RELEASE
Nov. 11, 2015
Media Contact: Sean Kyle, 806-252-2766, sean.kyle@wafwa.org

WAFWA Encourages Oil and Gas Company Participation in Lesser Prairie-Chicken Conservation Plan

Recent court decision makes enrollment opportunity available again

The Western Association of Fish and Wildlife Agencies (WAFWA) is encouraging oil and gas companies to enroll oil and gas leases and pipelines in a voluntary program to help conserve the lesser prairie-chicken. Because of a Sept. 1, 2015 federal court decision that vacated protection of the lesser prairie-chicken under the Endangered Species Act, WAFWA’s Candidate Conservation Agreement with Assurances is now open for new enrollments of oil and gas leases and pipelines.
The Candidate Conservation Agreement with Assurances provides industry with predictability for their operations should the lesser prairie-chicken be listed as threatened or endangered under the Endangered Species Act again. The bird was listed as threatened in May 2014, but the Sept. 1, 2015 court decision reversed that protection. Because of that decision, the U.S. Fish and Wildlife Service has approved new enrollments by companies operating within the five range states of Colorado, Kansas, New Mexico, Oklahoma and Texas. The companies are required to implement conservation benefits for lesser prairie chickens and pay enrollment and impact fees for unavoidable impacts, which allow the companies to continue oil and gas production, while contributing to conserving lesser prairie-chicken habitat.

“Since this program began in 2014, more than 180 oil, gas, wind, electric and pipeline companies have enrolled about 11 million acres across the five states, and ha ve committed $47.5 million for
habitat conservation,” said Sean Kyle, WAFWA’s Industry Services Director. “We’ve had great support for this program and we encourage all companies not currently participating to take advantage of this enrollment opportunity.”

WAFWA officials do not know how long this new opportunity will be available. The U.S. Fish and Wildlife Service has asked a federal judge to reconsider the Sept. 1 decision, and depending on the outcome, the
new enrollment period could end. Because of the uncertainty, WAFWA encourages all interested companies to enroll as soon as possible.

WAFWA’s Lesser Prairie Chicken Range-wide Conservation Plan and the Candidate Conservation Agreement with Assurances were developed by state wildlife agency experts in 2013 with input from a wide variety of stakeholders. The Candidate Conservation Agreement with Assurances is one piece of a comprehensive range-wide plan designed to conserve the lesser prairie-chicken.

“Our long-term goal is conservation of the lesser prairie-chicken, regardless of its Endangered Species Act status,” said Alexa Sandoval, Director of the New Mexico Department of Game and Fish and Chairman of the Lesser Prairie-Chicken Initiative Council. “Since the Sept. 1 decision to vacate the listing, we have pursued conservation efforts under the range-wide plan with the same vigor as we did before. We’re pleased to report that our landowner and industry partners are equally committed to continued conservation efforts.”

WAFWA has enrolled over 96,000 acres of farm and ranch land to offset industry development over the last year and a half. In addition, WAFWA has acquired 1,600 acres in permanent conservation and contracted for 8,900 acres of habitat restoration, which will create new habitat for the species.

An abundance of spring rainfall, along with ongoing efforts associated with the range-wide plan and other conservation initiatives, has helped increase the population of birds by approximately 25 percent from 2014 to 2015, according to results from the 2015 range-wide aerial survey. Despite this encouraging news, the population is still low compared to historical numbers, and the threats to the lesser prairie-chicken and its habitat still exist. WAFWA is committed to continued successful implementation of the range-wide plan and the long-term recovery of this iconic grassland bird.

Organized in 1922, the Western Association of Fish and Wildlife Agencies (WAFWA) represents 23 states and Canadian provinces, an area covering nearly 3.7 million square miles of some of North America’s most wild and scenic country. WAFWA supports and promotes the principles of sound resource management and the building of partnerships at the regional, national and international levels in order to enhance wildlife conservation efforts and the protection of associated habitats in the public interest.

The NMOCD has updated their reporting requirements for C-115 production reporting for all operators in New Mexico. The NMOCD has instituted a new reporting code “F” for gas disposition that is flared. Previously this gas was being reported in other disposition categories. In order to reduce the amount of vented and flared gas in New Mexico, industry task force members working with the NMOCD have beta tested the “F” code in sample production reporting and support these efforts to clarify the production reporting records.

Please review your current reporting practices, especially with regard to gas that is vented or flared and ensure your reporting is consistent with NMOCD requirements.

The NMOCD will be conducting outreach training sessions to reinforce this reporting change in the coming months. Please see the attached links at the NMOCD.”

The change will become effective for the November 2015 production month with reporting due by January 15, 2016

The Notice to Operators: Flaring Code Addition to Form X-1215 Production Report is available on our website in the at: http://www.emnrd.state.nm.us/OCD/announcements.html

Or direct to notice:
http://www.emnrd.state.nm.us/OCD/documents/201510-19NoticetoOperators-Flaring.pdf

The Instructions with the changes are available on our website under HOT TOPICS: How do I file a monthly well production report (C-115)
http://www.emnrd.state.nm.us/OCD/ocdonline.html

FYI, I asked, As soon as you roll out the “F” code will operators be able to report “F” code as soon as they are ready which may be prior to the required reporting date?

“Yes. The moment we roll out they will be able to submit flaring (F) dispositions in their C-115’s. This is true whether they are reporting for current or past periods”.

The BLM has just announced that it will extend the comment period for Onshore Order #3 for 28 days, delaying the comment due date to October 9.

Here is a link to the press release:

We encourage our members to send a copy of your comments, or just your thoughts, to Karin Foster. As a member-driven association, we need your input in order to compile the IPANM comments.

This morning we received a copy of an email from the Acting State Director to her employees indicating that the BLM will NOT merge the New Mexico and Arizona State Offices. The letter states;

“The BLM is committed to always looking for ways to align our resources and staff in a way that best serves the public and best supports the important work you do in managing the public lands. In these times of declining budgets and sequestration, we have a particular obligation to seriously consider new ideas that allow us to direct more resources to the programs and operations that are so important to the lands and the people we serve.

In the spirit of this commitment, the BLM explored the possibility of combining the Arizona and New Mexico state offices to better serve the public in the southwest by directing more resources to the district and field office level. The BLM listened carefully to feedback from partners and stakeholders expressing the importance of maintaining separate state offices. After considering this feedback, the BLM has decided not to move forward with a merger. The BLM will maintain both the Arizona and New Mexico state offices and both state director positions.”

The linked informationbelow was released by the BLM last month and is currently being implemented. Please call Jim Rutley with any questions or concerns at (575) 234-5904 or jrutley@blm.gov.

2012 Order SOPA Drill Island Map 2015-09-2.pdf (3 MB)
Review Process in DPA.pdf (305 KB)
Flowchart.pdf (371 KB)
Sample Letter for Notification.pdf (104 KB)
Bone Spring Cross Section.pdf (8 MB)
IM NMPOOOO-2015-001.pdf (41 kb)

On September 1 Chief Robert Junell, Senior United State District Judge of the Western District of Texas, granted summary judgement for plaintiffs in the lesser Prairie Chicken case. Congratulations to the Permian Basin Petroleum Association, Chaves, Roosevelt, Eddy and Lea Counties. Judge Junell found that while the US Fish and Wildlife Service did conduct an analysis for all 15 criteria required under the agency’s policy for evaluation of conservation efforts (PECE), this analysis was neither “rigorous nor valid” as the FWS failed to consider important questions and material information necessary to make a proper evaluation. Accordingly, the court found the FWS acted “arbitrarily and capriciously” which resulted in an unwarranted final rule listing the Lesser Prairie Chicken as a threatened species. Thus, the court VACATED the final rule and listing decision. The FWS will have 60 days to appeal the decision to the Fifth Circuit.

This is the Instruction Memorandum (IM) issued by the BLM last month to “establish a streamlined process for adjudication and approval” of Communitization Agreements (CA). Please feel free to call your local field office with any questions or comments.

CA Process IM.pdf (337 KB)

On August 12th the EPA finalized amendments to new source performance standards (NSPS) for the Oil and Natural Gas Sector under 40 CFR part 60, subpart OOOO. See 80 FR 48262 (Volume 80, Number 155 | Pages 48262–48268). The rule is effective 8/12/2015. Specifically, the new rule changes the definitions of low pressure gas well and storage vessel.

Subpart OOOO Standards of Performance for Crude Oil and Natural Gas Production, Transmission, and Distribution

Section 60.5365(e)(4) is revised to read as follows:

60.5365(e)(4) For each new, reconstructed, or modified storage vessel with startup, startup of production, or which is returned to service, affected facility status is determined as follows: If a storage vessel is reconnected to the original source of liquids or is used to replace any storage vessel affected facility, it is a storage vessel affected facility subject to the same requirements as before being removed from service, or applicable to the storage vessel affected facility being replaced, immediately upon startup, startup of production, or return to service.

Low pressure gas well means a well with reservoir pressure and vertical well depth such that 0.445 times the reservoir pressure (in psia) minus 0.038 times the true vertical well depth (in feet) minus 67.578 psia is less than the flow line pressure at the sales meter.

Returned to service means that a Group 1 or Group 2 storage vessel affected facility that was removed from service has been:

(1) Reconnected to the original source of liquids or has been used to replace any storage vessel affected facility; or

(2) Installed in any location covered by this subpart and introduced with crude oil, condensate, intermediate hydrocarbon liquids or produced water.

Storage vessel means a tank or other vessel that contains an accumulation of crude oil, condensate, intermediate hydrocarbon liquids, or produced water, and that is constructed primarily of nonearthen materials (such as wood, concrete, steel, fiberglass, or plastic) which provide structural support. A well completion vessel that receives recovered liquids from a well after startup of production following flowback for a period which exceeds 60 days is considered a storage vessel under this subpart. A tank or other vessel shall not be considered a storage vessel if it has been removed from service in accordance with the requirements of 60.5395(f) until such time as such tank or other vessel has been returned to service.