DECISION MEMO. Newfield Exploration Company Mineral Proposal PDU ASH #K1MB Compartment 16

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1 DECISION MEMO Newfield Exploration Company Mineral Proposal PDU ASH #K1MB Compartment 16 USDA Forest Service Region 8 National Forests & Grasslands in Texas Sabine National Forest Angelina/Sabine Ranger District Tract S-1a-I, B.H. Simpson Survey A-365 & J.C. Williams Survey A-788 Shelby County, Texas DECISION I have decided to approve the issuance of a Surface Use Plan of Operations (SUPO) for Newfield Exploration s development of the PDU ASH #K1MB gas well as proposed with standard modification. The modification incorporates the inclusion of the National Forests & Grasslands in Texas (NFGT) Oil and Gas Standards and Guidelines, Appendix B of the 1996 Revised Land and Resource Management Plan for the National Forests and Grasslands in Texas (the Plan), and other conditions for approval which will assist in the management and administration of this activity. Development of the PDU ASH #K1MB gas well includes accessing, drilling, testing, completing and producing the well and the installation and construction of the associated access road and pipeline right-of-ways (ROW). The SUPO is a binding part of the Application for Permit to Drill authorized by the Bureau of Land Management (BLM). The purpose of the well is to explore hydrocarbon deposits on a federal lease within administrative compartment 16 of the Sabine National Forest. The location for the PDU ASH #K1MB gas well, access road and pipeline ROW is in Shelby County, approximately 5 miles east of Shelbyville, Texas. The PDU ASH #K1MB well pad location is about 400 feet by 500 feet in size and located on the south side of Farm to Market (FM) The well access road ROW is 82 feet in length by 80 feet in width at its widest point. The 8 foot wide pipeline ROW will lay adjacent to the well access road ROW to a connection at the intersection of FM 2694 and the well access road. A Special Use Permit will be issued for the pipeline once it is installed. The total project covers an area of about 4.64 acres (well pad 4.47 acres, and access road/ pipeline ROW 0.17 acre) and will require removal of merchantable timber. Operations will occur on lease TXNM-61390, 26413, & and would include the following performed by the Operator: Clearing and leveling of a 4.47 acre site for the drill pad. Constructing approximately 82 feet of road to access the well pad Drilling a water well for drilling supply water on the well pad Newfield Exploration Company PDU ASH #K1MB Gas Well& Pipeline ROW SUP Page 1 of 5

2 Moving in and rigging up drilling equipment. Conducting drilling operations for approximately 4 weeks until the wells are drilled to the target horizon. Testing each well for production capability. Installing approximately 82 feet of pipeline within the access road ROW Issuing a Special Use Permit to authorize the pipeline after installation. Installation of production facilities including tank battery and compressor. Plugging of well and rehabilitation of all disturbed areas if and when well is not producible. Reduction of well pad size to accommodate production and re-vegetation of reduced area. If the well proves to be potentially capable of production, Newfield Exploration will cement the casing in the well and prepare it for additional testing under applicable BLM and State requirements. Depending on results of production testing, production equipment could be installed on the well site, additional wells may be drilled on the same location, or the well could be plugged and the site reclaimed. Exposed soil will be seeded, fertilized, and mulched (if needed) upon completion of approved work. To prevent the introduction and spread of Non Native Invasive Plant Species (NNIPS) to the project area during construction and rehabilitation efforts, only an agency approved seeding mixture will be used, straw or hay for mulching will be certified weed free and there will be follow up monitoring of the revegetation work for potential NNIPS. The monitoring and the follow up treatment for NNIPS will be completed in accordance to the Plan and the 2008 Non Native Invasive Plant Species (NNIPS) Environmental Assessment (EA) for the National Forests and Grasslands in Texas. This project is categorically excluded from documentation in an environmental assessment (EA) or an environmental impact statement (EIS) for the following reasons (36 CFR (a)): 1) Past projects, which are similar to the proposed action, have had no significant effects, individually or cumulatively, and no extraordinary circumstances exist in this proposal that might cause the action to have significant effects upon the human environment. 2) This proposal is consistent with and similar to the categories of action which may be excluded from documentation in an EIS or an EA as described in (36 CFR (e)(17)). No floodplains, wetlands, municipal watersheds, congressionally designated areas, inventoried or potential roadless areas, or research projects are involved in the proposed project area (36 CFR (b)). I have considered the effect of this project on climate change, as well as the effect of climate change on this project. Any resulting greenhouse gas emission would not be measurable on a global scale. As indicated by the project specific biological evaluation (BE # ), the proposed action has a determination of not likely to adversely affect red-cockaded woodpecker and no effect on any other federally listed or proposed threatened and endangered species. As for Regional Forester s Sensitive Species, the proposed action has a determination of no impact on any Region 8 sensitive species. This Biological Evaluation is based upon the best available science, Newfield Exploration Company PDU ASH #K1MB Gas Well& Pipeline ROW SUP Page 2 of 5

3 including peer-reviewed scientific literature, state and federal agency reports and management input, discussions with scientists and other professionals, and ground-based observations. As indicated in the Heritage Resources Survey project titled A Cultural Resource Survey of the Newfield Exploration Company PDU Ash #K1MB Well pad, Pipeline, and Access Road in Compartment 16, Shelby County, Texas, the proposed action will have no effect on heritage resources (sites) that are eligible for the National Register of Historic Places (NRHP) or on any other site that has not been evaluated for NRHP eligibility. The State Historical Preservation Officer (SHPO) concurred with this report on December 21, In accordance with the requirements of the National Historic Preservation Act of 1966 (NHPA), Executive Order 13007, the American Indian Religious Freedom Act (AIRFA), and others, consultation with the Caddo Nation of Oklahoma and The Alabama-Coushatta Tribe of Texas has been conducted and has identified no concerns. Visual resources will be minimally impacted. The effects on water quality will range from minimal to no effect during the life of this project. In relation to air quality, the proposed actions will not cause the National Ambient Air Quality Standards or Class II Areas to be violated. PUBLIC INVOLVEMENT A scoping letter was mailed to the current list of potentially interested or affected parties on March 31, This project was originally denoted as Newfield Exploration Company PDU ASH #K1MB Gas Well& Pipeline ROW SUP on the Schedule of Proposed Actions. Two responses were received during the scoping period. The first response was from a Tribal contact that had no objection to the project. The second response was from Stine Timber Management, Inc. with the following concerns: 1. Transportation/Traffic Safety. a. Comment: Sign and enforce traffic safety requirements. Response: Any person or entity operating on National Forest System land is subject to the federal, state, and county traffic rules in place for that area, including speed limits. These rules are enforced by federal, state and county law enforcement agents. The FS is continuously working on road signage. b. Comment: Rock with limestone. Response: The use of limestone is not required. 2. Soil and Water a. Comment: Protect streams adjacent to pad sites from drilling residue spills. Response: Before the pad is built, the FS meets with the well owner and they work together to lay out the well pad avoiding streamside protection zones and 100-year floodplains as defined in the Amended National Forests and Grasslands in Texas Forest Plan (the Plan). A trench is built around the drilling rig and associated equipment. Any runoff from the rig or equipment including spill and rainwater is collected in the lined trench and funneled into a holding tank and hauled off to an approved disposal site. The well pad is designed to have a gentle slope so that rainwater will run off the site. Silt fences, hale bales, or other material is placed where the runoff occurs to capture any silt. On all these operations, operators are required to follow Forest Service standards and Newfield Exploration Company PDU ASH #K1MB Gas Well& Pipeline ROW SUP Page 3 of 5

4 guidelines. The sites are inspected every year at a minimum and weekly during drilling operations. b. Comment: Seed with native wildlife mix and fertilize pipeline locations. Response: Exposed soil is fertilized and seeded with native or non persistent forbes and grasses as required by Attachment #3 Restoration of Disturbed Areas which is part of the SUPO Conditions of Approval and/or recommendations from the Forest Botanist. c. Comment: Construct waterbar placement as determined by percent slope standards in the Plan. Response: All water bars that may be necessary will follow Plan standards and guidelines. These requirements are part of the SUPO Conditions of Approval and the Clauses in the Special Use Permit. d. Comment: Protect any spring locations with buffer widths as specified in the Forest Plan. Response: Known or discovered perennial and intermittent water sources including springs will be protected with buffers according to the Plan. Meeting with the well owner as described above in 2a helps to identify and avoid any known water sources. These requirements are part of the SUPO Conditions of Approval and the Clauses in the Special Use Permit. e. Comment: Prohibit land farming. Response: Land farming has not been requested and is not allowed on the National Forest System land in Texas. 3. Visual Resource a. Comment: Follow VQO s (Visual Quality Objective) for FM 2694 per pad location b. Comment: Follow VQO s for FM 2694 per road design specifications. Response to a and b: The VQO for this road is partial retention. The SUPO Conditions of Approval call for standard environmental colors to be used on all production equipment and for visual barriers/screening to be used if deemed necessary. 4. Timber a. Comment: Assess for PNV (present net value) of timber. b. Comment: Assess for highest timber stumpage value Response to a and b: Currently the Forest Service sells the wood at the current market value and does not assess future value. The public and internal scoping did not lead to any information that would result in a change of the project Decision. Documentation of public involvement is on file at the District Office on State Highway 21 just east of Milam, Texas. FINDING REQUIRED BY OTHER LAWS This project is consistent with the management direction, including standards and guidelines, in the Plan as amended. IMPLEMENTATION Implementation of this decision may begin on or after the date of the signature of the Deciding Official below. Newfield Exploration Company PDU ASH #K1MB Gas Well& Pipeline ROW SUP Page 4 of 5

5 ADMINISTRATIVE REVIEW OR APPEAL OPPORTUNITIES This action is not subject to appeal pursuant to 36 CFR (f). For further information on this decision contact, William E. Taylor, Jr. at (409) or Holly Erimias, 2221 N. Raguet, Lufkin, Texas 75904, (936) Signature:_/s/ William E. Taylor, Jr. WILLIAM E.TAYLOR, JR. Angelina/Sabine District Ranger Sabine National Forest 5050 Highway 21 East Hemphill, TX _January 9, 2012 Date 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 a 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) (voice and TDD). To file a complaint of discrimination write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, S.W., Washington, D.C or call (800) (voice) or 202) (TDD). USDA is an equal opportunity provider and employer. Newfield Exploration Company PDU ASH #K1MB Gas Well& Pipeline ROW SUP Page 5 of 5