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Montana Petroleum Association
HEARD IT THROUGH THE PIPELINE
October 28, 2008
Montana Wildlife Federation Sues the Montana Board of Oil and Gas on MEPA Issues:
October 9, 2008, the Montana Wildlife Federation (MWF) and the National Wildlife Federation (NWF) filed a three-count complaint against the Montana Board of Oil and Gas Conservation (MBOGC) alleging that it has been violating the Montana Environmental Policy Act (MEPA) and the Montana Constitution by issuing permits to drill in the Cedar Creek Gas Field without having an updated programmatic EIS, by using allegedly inadequate environmental assessments (EAs), and by failing to examine cumulative impacts of developments there since 2003. The plaintiffs ask the Court to declare that the MBOGC’s checklist EA, which it uses for all well proposals at Cedar Creek, is inadequate under MEPA, and, in particular, that twelve well applications submitted by Fidelity Exploration & Production Company and approved by the MBOGC, are in violation of MEPA. Plaintiffs also ask the Court to issue an injunction against the MBOGC preventing it “from further issuing well drilling permits until a programmatic review has been performed under MEPA on the Cedar Creek Gas Field.” Plaintiffs claim, in particular, that previous environmental reviews did not examine wildlife issues and ask that a new programmatic EIS, specifically examining cumulative impacts on Sage Grouse, be required before the MBOGC may approve any more wells. The MBOGC estimates that roughly 71 new wells each year have been drilled in the last five years and it anticipates the same pace of drilling in the future. This lawsuit puts such proposals at issue.
Montana Department of Revenue Administrative Rule Change:
The MDOR has filed an administrative rule change relating to personal, industrial and centrally assessed property taxes. This is the annual update of the trending and depreciation table for personal and industrial properties. The Montana Taxpayers Association has clarified with the department these rules do not apply to the valuation of centrally assessed properties as referenced in the title of the notice and on page 2158. The rules can be viewed at: http://mt.gov/revenue/formsandresources/administrativerules/hearingproposalnotices.asp Please refer to MAR notices 42-2-799.
Environmental Protection Agency Grants Fort Peck Tribe UIC Primacy.
The EPA has granted the Fort Peck Tribe primacy for the underground injection control program effective November 28. The federal register notice is attached
WELCOME NEW MEMBERS (8/30/08 – 10/28/08):
Galt Aviation; Montana Overthrust Management, LLC; and XTO Energy Inc.
Articles of Interest
This is a very interesting political philosophy editorial rarely seen in today’s papers. I was unable to get a link to the editorial in the Livingston Enterprise but there is an attached scan. I recommend taking a minute to read it!
UPCOMING MEETINGS
MPA Board of Directors Meeting – November 20, 2008 – Crowne Plaza Hotel, Billings , MT., 7:30 am.
MPA Legislators’ Brunch – January 25, 2009 – The Montana Club, Helena, MT 10:30 am – 1:00 pm
Montana Petroleum Association
HEARD IT THROUGH THE PIPELINE
Executive Director's Note:
There are quite a few interesting reports, and many have attachments, in this issue of the Heard it Through the Pipeline. Some articles relate to the upcoming election from an issue perspective. I have two requests, please take a minute to review this issue and any attachments of interest, and feel free to share with all your employees. Secondly, this coming election will have a huge bearing on the oil and gas industry in Montana. Please encourage everyone you know or work with to take the time to vote. Montana has very easy absentee ballot provisions and you can register up to the election. If you need any advice or guidance please feel free to contact Dave at the MPA office or visit http://www.montanavotes.net/
Legislative Briefing Tour:
The Montana Petroleum Association 2008 Legislative Briefing tour is complete with stops in 14 cities and town across the state. A big thanks to those who helped with sponsorship or participation. It is good for local legislators and county commissioners to have an opportunity to visit with industry professionals, ask questions and share concerns. Compared to previous MPA legislative tours the 2008 tour had more legislative participation than any tour since 2000. MPA focused on two issues, access to public lands and the impact that increasing protests from hunter/angler groups are having on energy development; and tax issues that we may face in the upcoming session. The MPA legislative power point presentation is available at http://www.montanapetroleum.org/ under articles and reports. Also attached to this news letter is a summary of the presentation attendees and a list of those who attended. MPA intends to develop a DVD of a shortened presentation with an audio explanation and send it to every elected legislator before the session begins in January. Any MPA member interested in a copy of the DVD should let Bobbie know (MPA@montanapetroleum.org ) and they will be mailed to you when completed in late November.
One question that we received numerous times was what kinds of legislative changes industry would like to see in the upcoming session. If you have any thoughts or legislative ideas please contact dave@montanapetroluem.org.
Sportsman's Value Mapping Project:
Theodore Roosevelt Conservation Partnership has been involved developing a map that illustrates areas of Montana hunters and anglers hold in high regard as prime recreational areas. The following article in Montana Outdoors, explains the TRCP project: http://fwp.mt.gov/mtoutdoors/HTML/articles/2008/TRCPmapping.htm
Apparently this is some type of pilot project for the TRCP for identifying areas that are important to hunters and anglers. The question is what value will this effort have in the continuing debate over the energy/wildlife interface? I have received the maps that accompany the project and we are working to find a method to make them available to MPA members. In the meantime, if you can envision the State of Montana, then envision what lands in Montana are Native American reservations; all the rest of the State is then valuable to hunters and anglers. As the article explains, 85% of Montana has high value to hunters and anglers. The interesting fact that I notice is that in every area in Montana that has gas and oil development is also high value hunting or fishing ground. It therefore stands to reason that energy development, hunting and fishing are all compatible.
Wildlife Bill Draft in Montana:
Attached is a copy of a bill draft to give the Montana Department of Fish, Wildlife and Parks more input into oil and gas permits. This bill is modeled after legislation that has passed in Colorado last year.
Butte Area BLM Resource Management Plan:
The final RMP is available for review at the following site. The protest period closes October 27th, 2008
http://www.blm.gov/mt/st/en/fo/butte_field_office/rmp/proposed.html
Fish, Wildlife, Parks BMP Meeting in Sidney:
At the request of the Montana Department of Fish, Wildlife and Parks the MPA is helping form a meeting in Sidney for local oil and gas operators to discuss wildlife concerns of the department and best management ideas that could be implemented. Please see the attached brochure. Please let MPA know if you plan to attend, mpa@montanapetroleum.org
DEQ Rule hearing for Terminal Piping:
After months of working within MPA and with the Department of Environmental Quality, rules for terminal piping under the jurisdiction of the Underground Storage Program are finally published. The hearing will be on November 5th at 10:30 AM at the DEQ building in Helena. The final rule notice can be viewed at the following address:
http://deq.mt.gov/dir/legal/Notices/17-277pro.pdf
2009 Legislative Session
In just a few short months the 2009 Legislative session will convene in Helena. MPA will again be providing weekly summary of highlights and an ongoing bill analysis sheet that tracks MPA bills of interest and any changes to the status of those bills. MPA will post the highlights in our members only section of at http://www.montanapetroleum.org/ . If you do not have an ID and Password please contact bobbie@montanapetroleum.org.
League of Conservation Voters Poll:
The League of Conservation Voters has commissioned an energy related poll and the results may be of interest to some of you. There are questions involving coal bed methane development, biodiesel and Montana's production tax incentive. The responses do not favor our industry. Please review the survey on the following website: http://www.mtvotersedfund.org/system/files/PressPoll20081015.pdf. I am interested in your comments. One question I have is what is the level of interest in doing our own poll? The survey results have already been sent to many Montana Senators who have holdover positions and you can assume that all of the elected policy makers, state and local, will have these results by the beginning of January.
BLM Online Spill Reporting Form:
This link will take you to a form with all the required information for spill reporting to BLM. Copies can be printed for files or faxing, or to electronically submit spill reports to the appropriate BLM Field Office.
If you have any questions regarding the content or use of this form please contact Jim Albano at 406.896.5111.
http://www.blm.gov/mt/st/en/prog/energy/oil_and_gas/operations/spills.html
IOGCC Request for Information:
I received the following letter from Debbie Shippman at the IOGCC. Members interested in participating should contact Debbie Shipman at debbie.shipman@iogcc.state.ok.us
I recently began working for IOGCC performing research and writing for
grant-funded projects. Currently, I am studying the effects of technology on
the regulatory environment. By this I mean technology such as wireless
communications, online databases etc. and E&P technologies such as new
drilling fluids or plugging materials. Could you please put me in touch with
someone within your company or producer's association who has a good sense
of the past, current, and near-term regulatory situation in your state? In
order to give you an idea of the information I am seeking, I have attached a
list of questions that I hope to have answered. I am not attempting to
perform a formal survey; my expectation is to have conversations with the
people who can best help me understand the impact of new technology in the
various states and to share technology-related successes and challenges.
I appreciate your help with this and hope that your company will find the
resulting report useful.
Debbie Shippman
Interstate Oil and Gas Compact Commission
Federal Project Manager/Technical Writing Specialist
405-525-3556 ext.119
ARTICLES of INTEREST
Northern Plains chapter launched.
http://www.helenair.com/articles/2008/10/17/local/85lo_081017_plains.txt
Trout Unlimited concerned with Oil and Gas Development: Attached PDF
Interesting Summation on Environmentalists Strategy from MPA Member Holland and Hart...attached PDF
UPCOMING MEETINGS
MPA Board of Directors Meeting - November 20, 2008 - Crowne Plaza Hotel, Billings, MT., 7:30 am.
MPA Legislators' Brunch - January 25, 2009 - The Montana Club, Helena, MT 10:30 am - 1:00 pm
