XTO Energy Inc. Maranon #H1 and Orinoco #B1 Gas Well

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1 DECISION MEMO XTO Energy Inc. Maranon #H1 and Orinoco #B1 Gas Well National Forest & Grasslands in Texas Sabine National Forest Angelina/Sabine Ranger District Shelby County, Texas DECISION I have decided to approve the Surface Use Plan of Operations (SUPO) for XTO Energy Inc. s development of the Maranon #H1 and Orinoco #B1 gas wells as proposed with standard modification. The modification incorporates the inclusion of the National Forest and Grasslands in Texas (NFGT) Oil and Gas Standards and Guidelines, Appendix B of the 1996 Revised Land and Resource Management Plan for the National Forest and Grasslands in Texas (the Plan), and other Conditions of Approval which will assist in the management and administration of this activity. Development of the Maranon #H1 and Orinoco #B1 gas wells includes accessing, drilling, testing, completing, and producing the wells. The wells SUPO are a binding part of the Application for Permit to Drill authorized by the Bureau of Land Management (BLM). The Maranon #H1 and Orinoco #B1 gas wells will be drilled, tested, and completed on the XTO Tiber #1H well pad which is permitted and scheduled for construction in the fall of Therefore, the project will involve no new ground disturbance. If the wells are successful, the produced gas will be transported in the permitted Tiber #1H pipeline. The proposed project uses the 8.12 acre area of the permitted Tiber #H well pad and is located in administrative Compartment 30 approximately 14 miles southeast of Shelbyville, Texas, in Shelby County. If these wells prove to have viable gas production capability, XTO will cement the casing in the wells and prepare them for additional testing under applicable BLM and State requirements. Depending on results of production testing, additional wells may be drilled on the same location, or the wells could be plugged. Operations would occur on leases TXNM-71594, TXNM-71595, TXNM-71596, and TXNM and would include the following performed by the Operator: Moving in and rigging up drilling equipment. Conducting drilling operations for approximately 3 months until the wells are drilled to the target horizon. Testing the wells for production capability. Installation of production facilities including tank battery and compressor. PURPOSE OF DECISION The purpose of the project is to approve the Surface Use Plan of Operations (SUPO) for XTO Energy Inc. s development of the Maranon #H1 and Orinoco #B1 gas wells. The wells are proposed to extract Page 1 of 5

2 federal minerals pursuant to Federal oil and gas leases TXNM-71594, TXNM-71595, TXNM-71596, and TXNM consistent with Federal lease rights. The proposed wells are required to develop energy resources, thus reducing U.S. dependence on imported supplies, and the meet the intent of Executive Order dated May 18, 2001 and the Energy Policy Act of 2005 which emphasize the development of domestic oil and natural gas reserves for supply and economic stability. CATEGORICAL EXCLUSION & EXTRAORDINARY CIRCUMSTANCES This action 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). There are no extraordinary circumstances that would warrant further analysis and documentation in an EA or EIS. Taken into account were resource conditions identified in agency procedures that should be considered in determining whether extraordinary circumstances might exist (36 CFR (b)): Federally listed threatened or endangered species or designated critical habitat, species proposed for Federal listing or proposed critical habitat or Forest Service sensitive species As indicated by the Tiber #1H project specific biological evaluation (BE # ) the proposed action has a determination of not likely to adversely effect on the red-cockaded woodpecker, while all other proposed, threatened, or endangered species on the Sabine National Forest will have a no effect. This Biological Evaluation is based upon the best available science, including peerreviewed scientific literature, state and federal agency reports and management input, discussions with scientists and other professionals, and ground-based observations. Flood plains, wetlands, or municipal watersheds No floodplains, wetlands, municipal watersheds are involved in the proposed project area. Congressionally designated areas such as wilderness, wilderness study areas, or national recreation areas None are present. Inventoried roadless areas or potential wilderness areas None are present. Research natural areas None are present. American Indians and Alaska Native religious or cultural sites and Archaeological sites, or historic properties or areas As indicated in the Heritage Resources Survey Report, Cultural Resources Survey of the Tiber #1H Project Area, Compartment 30, Sabine National Forest, Shelby County, Texas (R ) on the Sabine National Forest, by Christopher Goodmaster, and the Cultural Resources Survey of the Loa, La Plata, and Tiber Pipelines Shelby County, Texas (R ) on the Sabine National Forest, by Todd McMakin, proposed actions 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. Page 2 of 5

3 The State Historical Preservation Officer (SHPO) concurred with the, Cultural Resources Survey of the Tiber #1H Project Area, Compartment 30, Sabine National Forest, Shelby County, Texas report on July 3, 2015 and the Cultural Resources Survey of the Loa, La Plata, and Tiber Pipelines Shelby County, Texas report on May 22, 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, The Alabama-Coushatta Tribe of Texas has been conducted and has identified no concerns. Visual resources and water quality will not be impacted. In relation to air quality, the proposed actions will not cause the National Ambient Air Quality Standards or Class II Areas to be violated. The effect of this project on climate change has been considered, as well as the effect of climate change on this project. Any resulting greenhouse gas emission would not be measurable on a global scale. PUBLIC INVOLVEMENT A letter outlining the proposed action and requesting input was mailed to the current list of potentially interested or affected parties on August 5, This project is denoted as the XTO Energy Inc. Maranon #H1 and Orinoco #B1 Gas Wells project on the Schedule of Proposed Actions. Two responses were received. One response was from the Choctaw Nation of Oklahoma with a request for a copy of the State Historic Preservation Officer concurrence letter for the project and the document was provided. The second response was received from the National Wild Turkey Federation (NWTF) with the following comments/concerns: Comment: NWTF supports the establishment of multiple well heads on single pad sites as is proposed for the Maranon #H1 and Orinoco #B1 gas wells. Consolidation and minimization of construction activities within the National Forests is important to the wellbeing and sustainability of the resource and should be utilized as much as practicality allows. Response: Thank you for your comment. It has been noted. Comment: NWTF has reviewed the USDA Forest Service Decision Memo for the XTO Energy, Inc. Tiber #1H Gas Well dated July 21, It is understood that drilling of the Maranon #H1 and Orinoco #B1 wells will not impact any additional habitat beyond what is identified as the project footprint for the Tiber #1H well site, access road, and pipeline. Should no additional habitat be impacted, it is the opinion of NWTF that the research and information gathered and analyzed for the Tiber #1H well site, access road, and pipeline is sufficient to warrant drilling of the Maranon #H1 and Orinoco #B1 gas wells without further reservations. Response: Thank you for your comment. It has been noted. Comment: NWTF suggests that, if practicable, the three (3) months designated for construction activities be July-September to minimize disturbance to breeding and nesting birds. Response: Timing of construction operations is dictated by many factors such as, design criteria in the Biological Evaluation, protection stipulation in the Cultural resource reports, specialist report Page 3 of 5

4 recommendation, weather and soil conditions, and the lease holder s business development restraints. Effort is made to protect forest resources when mandated by law and/or where practical. Comment: NWTF suggests that construction activities for the infrastructure associated with the Maranon #H1 and Orinoco #B1 gas wells (i.e. Tiber #1H well site, access road, and pipeline) be subject to, at a minimum, the standards and guidance set forth in the USDA Forest Service document FS-990a National Best Management Practices for Water Quality Management on National Forest Land Systems Volume 1: National Core BMP Technical Guide (April 2012). Response: The 1996 Revised Land and Resource Management Plan, National Forest and Grasslands in Texas (the Plan) provides standards (requirements) and guidelines for conducting, managing, and permitting activities such as roads, pipelines, and well oil and gas well development on the National Forest and Grasslands in Texas. The Plan requires these activities to fulfill statutory obligations from all applicable laws and regulations such as the Clean Water Act and Endangered Species Act. The Plan s Appendix B Mineral Operations Clauses and Attachments, as well as, the wells Surface Use Plan of Operations Conditions of Approval provide specific guidance for resource protection. All of these resources mirror the guidance provided in the National Best Management Practices for Water Quality Management on National Forest System Lands Volume 1: National Core BMP Technical Guide (April 2012). Comment: NWTF suggests that BMP monitoring be conducted on the project site during and within three (3) months post construction by the USDA Forest Service or qualified third party to ensure that all standards outlined in, or identified upon review of, FS-990a are being met. Response: Monitoring and evaluation is a fundamental part of the Plan. The well s Surface Use Plan of Operations Conditions of Approval also provides specific guidance for monitoring. Monitoring continues on all aspects of the project (road, pipeline, and well pad) for the life of the project until the activity is removed and reclamation is successful. Public and internal scoping responses were considered in the making of this Decision. Information received did not 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. FINDINGS REQUIRED BY OTHER LAWS AND REGULATIONS The project was designed in conformance with the 1996 Revised Land and Resource Management Plan for the National Forests and Grasslands in Texas (the Plan). The actions of this decision are consistent with direction in Appendix B-Mineral Operations Clauses and Attachments and Management Area 1 (Upland Forest ecosystems), Management Area 2 (Red-cockaded Woodpecker Emphasis), 4 (Streamside Management Zones), and 10b (Special Use Permit Sites) of the Plan. ADMINISTRATIVE REVIEW (APPEAL) OPPORTUNITIES Pursuant to 36 CFR (f), this decision is not subject of a higher level of review. Page 4 of 5

5 IMPLEMENTATION DATE Implementation may begin immediately. CONTACT For further information on this decision, contact District Ranger, Kimpton M. Cooper, 5050 State Highway 21 East, Hemphill, TX 74948, phone /s/ Kimpton M. Cooper September 15, 2015 Kimpton M. Cooper District Ranger Angelina and Sabine National Forests 5050 State Highway 21 East Hemphill, Texas Date USDA is an equal opportunity provider, employer, and lender. Page 5 of 5