DECISION RECORD Environmental Assessment (EA), WY-070 …

DECISION RECORD Devon Energy Production Company, L.P., Davis Family 31 Plan of Development (POD)

Environmental Assessment (EA), WY-070-EA14-24 Bureau of Land Management, Buffalo Field Office, Wyoming

DECISION. The BLM approves Devon Energy Production Company, L.P. (Devon.) Davis Family 31 POD Plan of Development (POD) gas and oil well applications for permit to drill (APDs) described in Alternative B of the environmental assessment (EA), WY-070-EA14-24. This approval includes the wells' support facilities.

Compliance. This decision complies with:

Federal Land Policy and Management Act of 1976 (FLPMA) (43 USC 1701); DOI Order 3310. Mineral Leasing Act of 1920 (MLA) (30 U.S.C. 181); including the Onshore Oil and Gas Orders. National Environmental Policy Act of 1969 (NEPA) (42 USC 4321). National Historic Preservation Act of 1966 (NHPA) (16 USC 470). Buffalo Resource Management Plan (RMP) 1985 and Amendments.

BLM summarizes the details of the approval of Alternative B below. The EA includes the project description, including specific changes made at the onsites, and site-specific mitigation measures.

Well Site. BLM approves 2 APDs and support facilities:

Well Name

Well #

Twp Rng Sec

Qtr

Lease #

1 Davis Family Fed

314772-3PH

47 72

31

SWSE WYW143942

2 Davis Family Fed

064672-3PH

47 72

31

SWSE WYW145531

Limitations. There are no denials or deferrals. Also see the conditions of approval (COAs).

THE FINDING OF NO SIGNIFICANT IMPACT (FONSI). Analysis of Alternative B of the EA, WY-070-EA14-24, and the FONSI (incorporated here by reference) found Devon proposal for Davis Family Fed POD will have no significant impacts on the human environment, beyond those described in the PRB FEIS. This project tiers to Project 785 EA, WY-070-EA10-238, and incorporates by reference Project 808 EA, WY-070-EA11-284 EA, and incorporates by reference Bolt Multi-Well Pad Project EA, WY-070-EA13-16, and incorporates by reference Longbow Multi-Well Pad Project EA, WY-070-EA1313, and incorporates by reference Ballista Flatbow EA, WY-070-EA13-15, and incorporates by reference Durham Ranches 1 POD, WY-070-EA13-83, which found no significant impacts to the environment. There is no requirement for an EIS.

This Project Tiers & Incorporates by Reference NEPA Analyses, in Addition to the PRB FEIS.

Project Name

NEPA Document Well Type & # Approval

Project 785 Project 808

WY-070-EA10-238 WY-070-EA11-284

Oil/7 Oil/40

10/18/2010 9/21/2011

Bolt Multi-Well Pad Project Longbow Multi-Well Pad Project

Ballista/Flatbow Project Durham Ranches 1 POD

WY-070-EA13-16 WY-070-EA13-13 WY-070-EA13-15 WY-070-EA13-83

Oil/18 Oil/12 Oil/40 Oil/4

3/12/2013 4/10/2013 8/9/2013 2/21/2013

DR, Davis Family 31 POD

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ENVIRONMENTAL ASSESSMENT (EA), WY-070-EA14-24 Devon Energy Production Company, L.P., Davis Family 31 POD

Bureau of Land Management, Buffalo Field Office, Wyoming

1. INTRODUCTION

BLM provides an EA for Devon Energy Production Company, L.P. (Devon.) Davis Family 31 POD oil and gas well applications for permit to drill (APDs). BLM's jurisdiction for this proposal is downhole as the 2 wells are both fee, fee, federal titled. This invokes BLM IM-2009-078 and WY SDR-2011-010. This site-specific analysis tiers into and incorporates by reference the information and analysis in the Final Environmental Impact Statement and Proposed Plan Amendment for the Powder River Basin Oil and Gas Project (PRB FEIS), WY-070-02-065, 2003, and Project 785 EA, WY-070-EA10-238, Project 808 EA, WY-070-EA11-284 EA, Bolt Multi-Well Pad Project EA, WY-070-EA13-16 Longbow MultiWell Pad Project EA, WY-070-EA13-13, Ballista Flatbow EA, WY-070-EA13-15, Durham Ranches 1 POD, WY-070-EA13-83, and the PRB FEIS and Record of Decision (ROD) per 40 CFR 1508.28 and 1502.21. One may review these documents at the BLM Buffalo Field Office (BFO) and on our website: . These APDs are pursuant to the Mineral Leasing Act for the purpose of exploring or developing oil or gas and do not satisfy the categorical exclusion directive of the Energy Policy Act of 2005, Section 390 because this proposal is in a developed field supported by a NEPA document older than 5 years from the date possible to spud these wells.

Congress made a 4-part process for federal fluid mineral decisions under the long-term needs of multipleuse. First is the land use / resource management plan (RMP); here the PRB FEIS and ROD amendment to the BFO RMP. Second are the decisions of whether and, if so, under what conditions, to lease lands for fluid mineral development. Courts held leasing decisions are an almost irrevocable resource commitment. Third, (this phase) is deciding on the proposed APD: the site-specific analysis, and mitigation. Fourth is the monitoring and reclamation of wells and their features. (Pendery 2010)

Jurisdiction. BLM's jurisdiction for this proposal is mixed in this federal action of developing federal minerals from non-federal locations. The BLM's duty in this jurisdictional federal action is: 1) an analysis, 2) disclosure of effects, 3) monitor and supervise activities immediately related to downhole actions to include production and royalties, and 4) provide recommended mitigation measures.

1.1. Background Devon submitted the notices of staking (NOSs) for these wells on April 12, 2013. BLM conducted onsite inspections on June 18, 2013. The onsites evaluated the proposal and modified

it to mitigate environmental impacts. Devon submitted the applications for permit to drill (APDs) on September 3, 2013 to the BLM. The BLM sent post-onsite deficiency letters to Devon on September 24, 2013. BLM received revised APDs on August 27, 2013 for adjustments made at the on-sites and to correct

various deficiencies. Company continued to submit revisions/deficiencies as they finalized them through November 5,

2013 March, 2011.

EA, Davis Family Fed 31

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1.2. Need for the Proposed Project BLM's need for this project is to determine whether, how, and under what conditions to support the Buffalo Resource Management Plan's (RMP) goals, objectives, and management actions (2003 Amendment) with allowing the exercise of the operator's conditional lease rights to develop fluid minerals on federal leases. BLM incorporates by reference here, the APD information (40 CFR 1502.21). Conditional fluid mineral development supports the RMP and the Mineral Leasing Act of 1920, the federal Land Policy Management Act (FLPMA), and other laws and regulations.

1.3. Decision to be Made The BLM will decide whether or not to approve the proposed development, and if so, under what terms and conditions agreeing with the Bureau's multiple use mandate, environmental protection, and RMP.

BLM Washington Office Instruction Memorandum (IM) No. 2009-078 established policy and procedures for processing federal applications for permit to drill (APD) for directional drilling into federal mineral estate from multiple well pads on non-federal locations. In accordance with IM No. 2009-078 drilling, and producing the subject wells is a federal action. Construction, operation, and reclamation of infrastructure on non-federal land are not federal actions. Drilling and producing mitigations are in Conditions of Approval (COAs) for Conventional Application for Permit to Drill. In accord with IM No. 2009-078 an APD approval is a federal undertaking under section 106 of NHPA, even when the resulting impacts are non-federal land. Actions that intentionally, significantly, and adversely affect a historic property with the intent to avoid the requirements of NHPA Section 106 are in violation of NHPA Section 110(k) and require the field office to deny the APD. The BLM's inspection and enforcement authority and responsibility would include compliance with any mitigation or other conditions established for approval of the APD as a result of the NHPA and ESA consultation. Find cultural mitigation in COAs for Conventional Application for Permit to Drill.

It is the BLM's responsibility and obligation to analyze the full effects of the action, and identify mitigation measures, regardless of the BLM's authority to enforce the mitigation. The BLM must identify mitigation measures that would reduce or eliminate the effects of a non-federal action when it is a connected action to the BLM proposed action (see the NEPA handbook, section 6.8.2.1.1, connected Non-federal Actions). Identifying mitigation outside of the BLM's jurisdiction alerts other agencies that can implement the mitigation. The probability of the other agencies implementing the mitigation measures is likely to occur, although those agencies may vary parameters recommended by the BLM.

Full effects of the action and recommended mitigation measures can be found in the Davis Family 31 POD, WY-070-EA14-24 and BLM Recommended Mitigation Measures (RMM) for Conventional Application for Permit to Drill.

1.4. Scoping and Issues BLM posted the proposed APDs for 30 days and will timely publish the EA, any finding, and decision on the BFO website. This project is similar in scope to other fluid mineral development the BFO analyzed. External scoping is unlikely to identify new issues, as verified with recent fluid mineral EAs that BLM externally scoped. External scoping of the horizontal drilling in Crazy Cat East EA, WY-070-EA13-028, 2013, in the PRB area received 3 comments, revealing no new issues.

The BFO interdisciplinary team (ID team) conducted internal scoping by reviewing the proposal, its location, and a resource (issue) list (see administrative record), to identify potentially significantly affected resources, land uses, resource issues, regulations, and site-specific circumstances not addressed in the tiered analysis or other analyses incorporated by reference. This EA will not discuss resources and land uses that are not present, unlikely to receive significant or material affects, or that the PRB FEIS or other analyses adequately addressed. This EA addresses the project's potentially significant site-specific

EA, Davis Family Fed 31

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impacts that were unknown and unavailable for review at the time of the PRB FEIS analysis to help the decision maker come to a reasoned decision. The project area is clearly lacking wilderness characteristics as it lacks federally owned surface.

Project issues include: Air quality Soils and vegetation: site stability, reclamation potential, and invasive species Water: ground water, quality, and quantity of produced water, surface water. Wildlife: raptor productivity, migratory birds, special status species Cultural: National Register eligible sites

BLM analyzed the following issues in the PRB FEIS and they do not present a substantial environmental question of material significance to this proposal:

Geological resources Transportation & access Cave and karst resources Mineral resources: locatable, leasable-coal, salable Fire, fuels management, and rehabilitation Tribal treaty rights

Rights of way & corridors Paleontological resources Visual resources

Forest products

Lands & realty Wet land and Riparian

Wilderness characteristics Livestock & grazing Recreation Areas of critical environmental concern

Socio-economic resources Environmental justice

2. PROPOSED PROJECT AND ALTERNATIVES

2.1. Alternative A ? No Action The no action alternative would deny these APDs requiring the operator to resubmit APDs that complies with statutes and the reasonable measures in the PRB RMP Record of Decision (ROD) in order to lawfully exercise conditional lease rights. The PRB FEIS considered a no action alternative, pp. 2-54 to 262. The BLM keeps the no action alternative current using the aggregated effects analysis approach ? tiering to or incorporating by reference the analyses and developments approved by the subsequent NEPA analyses for adjacent and intermingled developments to the proposal area.

2.2. Alternative B Proposed Action (Proposal) Overview. Devon proposes drilling and developing 2 horizontal oil wells into federal mineral estate from one proposed well pad on a non-federal location owned by Wyo Davis Family LP. The proposed project includes an area of approximately 46 acres are 100% private surface. The proposed well is 25 miles northwest of Wright, Campbell County, Wyoming. The primary objective is to drill to the Parkman formation 6373 and 6441feet total vertical distance. The surface hole location is shown on the well table. The bottom hole location for the Davis Family Fed 064672-3PH is 460' FSL (from the south line) and 1980 FEL (from the east line) (SWSE), Lot 22, Section 6, T46N, R72W. The bottom hole location for the Davis Family Fed 314772-3PH is 460' FSL (from the south line) and 1980 FEL (from the east line) (NWNE), Lot 6, Section 31, T47N, R72W. Devon Davis proposes drilling the Family Fed 314772-3PH and the Davis Family Fed 064672-3PH, (private surface over private mineral estate). The drilling and construction of the Family Fed 314772-3PH and the Davis Family Fed 064672-3PH will result in a well pad approximately 6.84 acres of new surface disturbance. The well bores will be approximately 50 feet apart on the expanded well pad. Company will use approximately 10.12 miles of existing improved road and proposes construction of 0.15 miles of improved road.

EA, Davis Family Fed 31

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Table 2.1. Well, Pad, and Lease List ? Surface hole (SHL) and Bottom hole (BHL)

#

Name

Well # Twp Rng Sec Qtr

SHL

BHL

1 Davis Family Fed 314772-3PH 2 Davis Family Fed 064672-3PH

47N 72W

31 SWSE

Fee

WYW143942 WYW145531

Drilling, Construction and Production Design Features Include: - Construction of 1 drilling pad with dimensions of approximately 560 feet by 350 feet plus cut and fill,

and 1 attached hydraulic fracturing (HF) pad approximately 175 feet by 200 feet accounting for 6.84 acres of disturbance including the cut and fills, the spill pile, and the topsoil piles. - Once drilling begins, the operator anticipates drilling times of 2 to3 weeks for each horizontal well. The HF process for the horizontal wells will take an additional 1 to 3 weeks. - After drilling and HF, the well pad areas will be reduced for the production phase by reclamation of disturbed areas created during construction not needed during the production phase. - A road network consisting of proposed improved roads 1.29 acres/ 0.15 miles of crown and ditch template road as access to the well pads. Road disturbance will be reduced to approximately 0.37 acres after interim reclamation. Approximately 22.24 acres/10.12 miles of existing improved access used for coalbed natural gas (CBNG) and oil field traffic will be used in addition to the proposed crown and ditch template road as access to the well pads. One 18-inch culverts will be installed in (see map A or C (administrative record (AR)) for the proposed culvert location). - During construction and drilling phases, truck traffic will include rig and ancillary equipment mobilization, drilling water and completion water hauling, and delivery of large production facility equipment such as 500 bbl. tanks, etc. - ADT (anticipated daily traffic) during the drilling phase (2 to 3 weeks) of each individual well is estimated to be 2 large water trucks and 6 pickups trucks per day. - There is existing 3-phase overhead power in the project area. Devon proposed 1 power drop as shown on Devon's maps A and C. The power drop will disturb approximately 0.13 acres. - Best management practices (BMPs) to be employed can be found in the surface use plans of operations (SUPO) of APDs pp. 14. - If determined to be economically viable, the well would be put into production. Production facilities that would be placed on the site include the wellhead, pumping unit, oil tanks, water tanks, circulating pump, a flare, a vapor recovery unit, a treater, and possibly a gas separator. - All production facilities and buildings on these sites will be painted Covert Green within 6 months of completion. - The Davis Family 31 POD will be drilled using a closed loop and water based mud system. Drilling water will be stored on location in 3 500-bbls frac masters. An additional 2 500-bbls frac masters will on site to store heavy drilling fluids. - Drill cuttings will be properly screened, treated to break down hydrocarbons, and stored on location in a lined and bermed area. The berms will be constructed using spoil and will be approximately 60 feet by 150 feet. 2 cutting pits will be required for each pad location. - All fluids will be disposed of at one of the WDEQ permitted facilities listed on pp. 5 and 6 of the Davis Family 31 POD SUPO. - Landowners within 0.5 mile of the proposed wells were offered a water well agreement. - It is anticipated that 15,000 bbls of water will be needed for drilling. - Fresh water operations will be trucked from the Enl. Lindsey #6 water well, (SEO permit #P199696.0W) located in the SENW Section 18, T46N R 72W. The Enl. Lindsey #6 water well produces approximately 1000 bls/day. - Fresh water used for drilling and cementing will be obtained from outside the POD boundary and hauled to location by transport truck using the existing and proposed roads or by a temporary 4 inch polyline will be laid across the surface from the Enl. Lindsey #6 water well to the location. The

EA, Davis Family Fed 31

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location and distances of the line are found in the surface use plan of operations and Devon's maps A and C. - The well pad location will be fenced during drilling and HF operations so as to effectively keep out wildlife, livestock, unauthorized personnel, and unauthorized vehicle access. - If a well is not found to be economically viable, all areas disturbed during construction would be reclaimed in accordance with the project reclamation plans (refer to Section 10 Plans for Reclamation for details).

Drilling and Completion Water Sources and Amounts For a detailed description of design features and construction practices associated with the proposed project, refer to the surface use plan (SUP) and drilling plan included with the APD. Also see the APD for maps showing the proposed well location and associated facilities described above. - For HF phase, the operator intends to use an above ground, steel ring storage tank that will store

approximately 40,000 bbls of fresh water. The ring will sit adjacent to the Davis Family Fed 3147723PH/064672-3PH well location on a 200 x 200 foot level pad. The location of the storage ring pad is shown on Maps A, C, and D. - Devon will require 10 to 20 500 bbl frac masters on location during well HF operations. They will be used for storage and mixing of chemicals, storage of flow back water, and they are used as a storage vessel to heat the water just prior to pumping it downhole. - ADT during the HF phase of each individual well (1 to 3 weeks) is estimated to be 4 large water trucks and 6 pickups trucks per day. - ADT during the production phase will decrease to 1 to 2 pickup trucks per day. - Devon anticipates it needs 30,000 bbls of water for HF activities.

BLM incorporated and analyzed the implementation of committed mitigation measures in the SUP and drilling plan, in addition to the COAs in the PRB FEIS ROD, as well as changes made at the onsite.

Table 2.2. Anticipated Drilling and Completion Sequence And Timing (per well)

Drilling and Completion Step

Approximate Duration

Build location (roads, pad, and other initial infrastructure) Mob rig Drilling (24/7)

14-21 days 5-9 days1 20 days2

Schedule/logistics for completion

20 days

Completion (setup, completion, demobilization)

5-8 days

1 Depending on distance and need to add supplemental drilling equipment, such as skidding plates.

2 By comparison, approximately 2 days are required to drill a CBNG well. Source: ICF 2012

Table 2.3. Disturbance Summary for Davis Family Fed 314772-3PH and Davis Family Fed 064672-

3PH wells/pad:

Construction Disturbance

Interim Disturbance

Facility

(Short Term)

(Long Term)

Number of Horizontal Wells

2

2

Engineered Pads (including

attached frac pad)

1 (6.84)

1 (2.29 acres)

New Template Roads

0.15 mi (1.29 acres)

0.15 mi (0.37 acres)

Power Drops

1 ( 0.13 acres)

1 ( 0.13 acres)

Overhead Power

Existing

Existing

Total Acre Disturbance

8.26 Acres

2.79 Acres

EA, Davis Family Fed 31

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