E&
P
STORM
WATER
OVERVIEW
Domestic
Onshore
Energy
E&
P
STORM
WATER
OVERVIEW
Domestic
Onshore
Energy
May
10,
2005
Road
to
Domestic
Energy
Road
to
Domestic
Energy
Road
to
Domestic
Energy:

Geological
&
Geophysical
Road
to
Domestic
Energy:

Geological
&
Geophysical

1st
st
look
at
look
at
subsurface
subsurface

Define
geologic
Define
geologic
target
using
target
using
surface
surface
geophysical
geophysical
equipment
equipment

Subsurface
driven
Subsurface
driven
The
Road
to
Domestic
Energy:

Land
Leasing
The
Road
to
Domestic
Energy:

Land
Leasing

Leases
have
terms,

Leases
have
terms,

penalties,
deadlines
penalties,
deadlines
and
a
expiration
date
and
a
expiration
date
that
drives
a
project
that
drives
a
project
timeline
timeline

Leases
have
multiple
Leases
have
multiple
surface
and
surface
and
subsurface
owners
subsurface
owners

Split
Estates;
surface
Split
Estates;
surface
and
mineral
and
mineral
ownership
different
ownership
different

Multiple
mineral
lease
Multiple
mineral
lease
agreements
and
agreements
and
requirements
requirements

Competitive
situation
Competitive
situation

The
lease
situation
The
lease
situation
drives
our
clock
drives
our
clock
The
Road
to
Domestic
Energy:

Permitting
The
Road
to
Domestic
Energy:

Permitting

There
are
numerous
There
are
numerous
permit
considerations
permit
considerations
 
Private
Private
 
State
State
 
Federal
Federal

Oil
&
Gas
Agency
Oil
&
Gas
Agency
 
Drilling
Drilling
 
Construction
Construction
 
Pipeline
ROW
Pipeline
ROW

Environmental
Protection
Environmental
Protection
 
Air
Air
 
Water
Water
 
Waste
Waste
 
Historical
&
Cultural
Historical
&
Cultural
 
Vegetation
&
Wetlands
Vegetation
&
Wetlands
 
Wildlife
Wildlife
The
Road
to
Domestic
Energy:

Construction
The
Road
to
Domestic
Energy:

Construction

Exploration
or
Exploration
or
development
well
development
well
 
lease
road
lease
road
 
well
pad
well
pad

Access
Right
of
Ways
Access
Right
of
Ways
have
to
accommodate
have
to
accommodate
environmental
and
environmental
and
surface
conditions
surface
conditions

Allow
for:

Allow
for:

 
Surface
sensitivities
Surface
sensitivities
 
Landowner
requests
Landowner
requests
 
Surface
structures
Surface
structures
 
Balance
surface
Balance
surface
conditions
to
reach
conditions
to
reach
subsurface
target
subsurface
target
The
Road
to
Domestic
Energy:

Production
The
Road
to
Domestic
Energy:

Production
If
Successful
If
Successful
 
Well
finalized
Well
finalized
 
Rig
moves
off
Rig
moves
off
 
Production
Production
equipment
installed
equipment
installed
 
O&
G
to
sales
and
O&
G
to
sales
and
water
to
disposal
water
to
disposal
 
Drill
site
reduced
Drill
site
reduced
and
reseeded
and
reseeded
 
 
Foot
Print
Foot
Print 

reduced
reduced
If
Unsuccessful
If
Unsuccessful
 
Plug
&
Abandon
Plug
&
Abandon
 
Restore
location
Restore
location
Storm
Water
Comparison:
Real
Estate
vs.
Oil
&
Gas
Storm
Water
Comparison:
Real
Estate
vs.
Oil
&
Gas
Real
Estate
Development
Real
Estate
Development
Oil
&
Gas
Development
Oil
&
Gas
Development

Static
Plan
Static
Plan

Blueprint
Designed
Upfront
Blueprint
Designed
Upfront

Construction
Follows
Blueprint
Construction
Follows
Blueprint

Real
Estate
is
All
Surface
Real
Estate
is
All
Surface

Dynamic
Plan
Dynamic
Plan

Design
As
We
Go
Design
As
We
Go

Each
Well
Tells
a
Geologic
Story
Each
Well
Tells
a
Geologic
Story

Oil
&
Gas
is
Sub
Oil
&
Gas
is
Sub­
Surface
Dependent
Surface
Dependent
=
Storm
Water
Comparison:
Real
Estate
vs.
Oil
&
Gas
Storm
Water
Comparison:
Real
Estate
vs.
Oil
&
Gas
Real
Estate

Surface
Use
Driven

Land
Owned

Timeline
more
Flexible

Planning
Certainty

Metropolitan/
Centralized

Single
Site
SW
Administration






Oil
&
Gas

Subsurface
Driven

Land
Leased

Timeline
Is
Critical

Uncertainty

Remote/
Decentralized

Scattered
Multi
Site
SW
Administration






Because
of
differences
E&
P
needs
regulatory
flexibility
Because
of
differences
E&
P
needs
regulatory
flexibility
"
One
Rule
Does
Not
Fit
All
Industries
One
Rule
Does
Not
Fit
All
Industries"
Cost
Cost
Future
State
Future
State
*
Refer
to
Department
of
Energy
2005
Cost
Impact
Study
*
Refer
to
Department
of
Energy
2005
Cost
Impact
Study

US
Drilling
Wells:

US
Drilling
Wells:

30,000
per
year
30,000
per
year

SWPPP
Implementation:

SWPPP
Implementation:

$
5,000
to
$
15,000
per
well
$
5,000
to
$
15,000
per
well

Well
Construction
Size:

Well
Construction
Size:

2
to
10
acres
2
to
10
acres
Current
State
Current
State

Government
Government
 
Recordkeeping
Recordkeeping
 
Inspection
Inspection
 
Monitoring
Monitoring
 
Permit
approvals
timeline
increases
Permit
approvals
timeline
increases
 
Staff
Staff
 
Administrative
burden
Administrative
burden

Industry
Industry
 
Increased
Increased
 
notice
of
intent
notice
of
intent 
filing
filing
 
Delayed
NOI
approval
Delayed
NOI
approval
 
Annual
cost
burden
$
150
Annual
cost
burden
$
150­$
450
million*

$
450
million*

 
Limited
qualities
resources
Limited
qualities
resources
 
Lease
expiration
risks
are
real
Lease
expiration
risks
are
real
Summary
 
Take
Away
Summary
 
Take
Away

Intent
of
Storm
water
regulations
are
to
protect
Intent
of
Storm
water
regulations
are
to
protect
surface
waters
from
sediment
and
erosion
surface
waters
from
sediment
and
erosion
runoff
created
by
construction
activities
runoff
created
by
construction
activities

Covered
Oil
&
Gas
Process
Covered
Oil
&
Gas
Process

Comparisons/
Differences
between
Oil
&
Gas
Comparisons/
Differences
between
Oil
&
Gas
and
Real
Estate
and
Real
Estate

Stormwater
Regulations
Are
Not
Manageable
Stormwater
Regulations
Are
Not
Manageable
For
Oil
&
Gas
For
Oil
&
Gas
Conclusion
 
Take
Away
Conclusion
 
Take
Away
There
is
a
better
alternative
than
the
There
is
a
better
alternative
than
the
proposed
stormwater
rule
change:

proposed
stormwater
rule
change:


No
Storm
water
permit
No
Storm
water
permit

Implementation
of
RAPPS
for
all
Oil
&

Implementation
of
RAPPS
for
all
Oil
&

Gas
construction
will
control
sediment
Gas
construction
will
control
sediment
and
erosion
runoff
and
erosion
runoff

Implementation
of
RAPPS
for
all
Oil
&

Implementation
of
RAPPS
for
all
Oil
&

Gas
construction
Gas
construction
E&
P
STORM
WATER
OVERVIEW
E&
P
STORM
WATER
OVERVIEW
May
10,
2005
