Association of New Mexico Annual Meeting August 3, 2016 New Mexico - PowerPoint PPT Presentation

BLM BLM – New Mexico August 3, 2016 – IPANM Annual Meeting Independent Petroleum Association of New Mexico Annual Meeting August 3, 2016 New Mexico

BLM – New Mexico August 3, 2016 – IPANM Annual Meeting BLM-NM Onshore Oil and Gas Management Program Overview BLM has: • 245 million acres of land • 700 million acres of subsurface estate • Nearly 1/3 of the nation’s mineral estate

BLM – New Mexico August 3, 2016 – IPANM Annual Meeting BLM-NM Onshore Oil and Gas Management Program Overview BLM-NM has: • One of the largest oil and gas programs in the Bureau • Over 45 million acres of mineral estate • Over 2 million acres of Native American (Indian) mineral estate

BLM-NM Onshore Oil and Gas BLM – New Mexico August 3, 2016 – IPANM Annual Meeting Management Program Overview Onshore oil production on Onshore gas production on federal lands (2014) federal lands (2014) Source: Office of Natural Resources Revenue. It does not include Indian lands.

BLM – New Mexico NM Oil and Gas Lease Statistics August 3, 2016 – IPANM Annual Meeting (July 18, 2016) Producing Producing Office Leases Leased Acres Leases Leased Acres Carlsbad 4,366 3,573 1,899,934.030 1,574,142.17 Farmington 2,545 2,336 1,831,996.974 1,681,452.184 Las Cruces 54 4 59,927.38 5,793.31 Rio Puerco 44 23 46,191.07 26,605.56 Roswell 892 562 590,840 398,307.44 Socorro 1 52 0 82,795.42 0 Taos 115 113 83,436.83 82,239.97 Totals 2 8068 6611 4,595,121.704 3,768,540.630 Footnotes: 1 Socorro has no producing leases, but about 70,000 acres of leases are committed to the Cottonwood Canyon CO 2 Unit and are currently held by the unit 2 About 82% of leases and leased acres are in producing status

BLM – New Mexico FY 2016 Lease Sale Proceeds August 3, 2016 – IPANM Annual Meeting July 18, 2016 Number Percent of Region of Overall Bonus Sales* Bonus Bid Bids Received CO 2 $10,222,673 22.1370% ES 3 $1,710 0.0036% MT/DK 2 $145,614 0.3153% NV 3 $31,028 0.0672% NM 2 $28,586,361 61.9031% UT 2 $330,546 0.7158% WY 2 $6,861,288 14.8580% Total 16 $46,179,220 100.00%

BLM – New Mexico August 3, 2016 – IPANM Annual Meeting Approved APDs, FY 2007-2016 (*through July 18, 2016) 900 800 700 600 Major Natural Gas 500 Infill Drilling Program 400 Oil and Gas Prices Drop 300 Price of Natural 200 Gas Falls 100 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* Permian Basin San Juan Basin In 2012, Oil Price rises; Bone Springs Play heats up; Start of Mancos-Gallup Horizontal Well Development in San Juan Basin

Approved APDs by Field Office BLM – New Mexico August 3, 2016 – IPANM Annual Meeting FY 2007-2016, YTD (July 18, 2016) 1200 1000 800 600 400 200 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016* CFO RFO FFO RPFO

BLM – New Mexico August 3, 2016 – IPANM Annual Meeting APD Statistics for FY 2016, YTD (as of July 18, 2016)

Average APD Approval Times BLM – New Mexico August 3, 2016 – IPANM Annual Meeting (*as of July 18, 2016) 180 160 140 120 100 80 60 40 20 0 Total Days Total Operator Days Total BLM Days Carlsbad Roswell Farmington

Disbursements to BLM – New Mexico August 3, 2016 – IPANM Annual Meeting State of New Mexico FY 2007-2014 Disbursement $700,000,000.00 $600,000,000.00 $500,000,000.00 $400,000,000.00 $300,000,000.00 $200,000,000.00 $100,000,000.00 $0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015

BLM – New Mexico August 3, 2016 – IPANM Annual Meeting Partnerships Permian Basin • programmatic agreement Implementation • 2012 Sec. Potash Order Shut-in well policy • development

BLM – New Mexico August 3, 2016 – IPANM Annual Meeting Current BLM Initiatives Hydraulic Fracturing (HF) Rule o June 21, 2016 – U.S. District Court in Wyoming struck down HF rule. BLM will appeal at the 10 th Circuit simmonsandfletcher.com

BLM – New Mexico August 3, 2016 – IPANM Annual Meeting Current BLM Initiatives Venting and Flaring Proposed Rule o Comment period closed April 22, 2016 o Received 330,000 comments Status o Comment review and technical changes o Publish Fall 2016

BLM – New Mexico August 3, 2016 – IPANM Annual Meeting Current BLM Initiatives Onshore Orders 3, 4, and 5 o Onshore Order 3: Site Security o Onshore Order 4: Oil Measurement o Onshore Order 5: Gas Measurement Status o Preparing final rules o Publish late summer 2016

BLM – New Mexico August 3, 2016 – IPANM Annual Meeting Current BLM Initiatives Onshore Order 1: Approval of Operations Electronic filing of o NOS/APDs via AFMSS2 Status o Proposed rule published July 28 th o https://federalregister.gov/a/2016 -17400 o Comments accepted until August 29 th

BLM – New Mexico August 3, 2016 – IPANM Annual Meeting Current BLM Initiatives AFMSS2 APD/NOS Module Status o Implemented AFMSS 2 in BLM NM o Staggered start o Full implementation by Oct. 2016

BLM – New Mexico August 3, 2016 – IPANM Annual Meeting Current BLM Initiatives Shut-in Well Policy • Concerns temporary abandonment procedures and shut in well requirements • One consistent policy • Guidance to field offices and operators Status • Field Offices currently reviewing • Finalize in early August

RMP Updates BLM – New Mexico August 3, 2016 – IPANM Annual Meeting Carlsbad Resource Management Plan (RMP) Revision • September 2016 - 90-day public comment period begins • January 2017 - Public comment analysis and revisions • Winter 2017-2018 - Proposed RMP and ROD published Farmington RMP-A: Mancos-Gallup Amendment • Draft document expected in 2017 Tri-County RMP: Supplemental Draft EIS • Summer 2017 – Publish Supplemental Draft EIS

BLM – New Mexico August 3, 2016 – IPANM Annual Meeting stions? Questions?