HIM LIBRARY 88064021 VOLUME I October 2008 Public Lands USA: Use, Share, Appreciate The Bureau of Land Management is responsible for the stewardship of our public lands. It is committed to manage, protect, and improve these lands in a manner to serve the needs of the American people for all times. Management is based on the principles of multiple use and sustained yield of our nation’s resources within a framework of environmental responsibility and scientific technology. These resources include recreation; rangelands; timber; minerals; watershed; fish and wildlife; wilderness; air; and scenic, scientific, and cultural values. BLM Library Denver Federal Center Bldg. 50, OC-521 P.O. Box 25047 Denver, CO 80225 i BLM/MT/PL-08/016 United States Department of the Interior U.S. DEPARTMENT OF THE INTERIOR SUREAU OF LAND MANAGEMENT BUREAU OF LAND MANAGEMENT Montana State Office 5001 Southgate Drive IN REPLY TO: 1610 Billings, Montana 59101-4669 http://www.blm.gov/mt October 10, 2008 Dear Reader: The Bureau of Land Management (BLM) has prepared the Final Supplement to the Montana Statewide Oil and Gas Environmental Impact Statement and Proposed Amendment of the Powder River and Billings Resource Management Plans (FSEIS). This proposed plan amendment is a result of U.S. District Court issued orders, dated February 25, 2005, and April 5, 2005, requiring BLM to prepare a Supplemental EIS to evaluate a phased development alternative for coal bed natural gas production. The U.S. District Court also advised the BLM to include the proposed Tongue River Railroad in the cumulative impact analysis and analyze the effectiveness of water well mitigation agreements. The FSEIS is a reissue of the original BLM 2003 Montana Statewide Oil and Gas Environmental Impact Statement and Amendment of the Powder River and Billings Resource Management Plans (RMPs) (Statewide Document). With the exception of minor edits, new text supplementing the Statewide Document is shaded gray for easy identification. The Bureau of Indian Affairs; Crow Tribe; Department of Energy; Environmental Protection Agency; Lower Brule Sioux Tribe; Montana Board of Oil and Gas Conservation; Montana Department of Environmental Quality; U.S. Army Corps of Engineers; and Big Horn, Carbon, Golden Valley, Musselshell, Powder River, Rosebud, Treasure, and Yellowstone counties participated in the development of the SEIS as Cooperating Agencies. The FSEIS was developed in accordance with the National Environmental Policy Act of 1969, as amended (NEPA), and the Federal Land Policy and Management Act of 1976 (FLPMA). It is based on Alternative H, the preferred alternative in the Draft Supplement to the Montana Statewide Oil and Gas Environmental Impact Statement and Amendment of the Powder River and Billings Resource Management Plans (DSEIS), which was released on February 2, 2007; and the DSEIS Supplemental Air Quality Analysis which was released on December 12, 2007. The proposed land use amendment is described by Alternative H in the FSEIS. Changes between the DSEIS and FSEIS are indicated in text boxes inset at the beginning of each chapter. The FSEIS contains the effects of adopting the proposed land use plan amendment, a summary of written and verbal comments received during the public review periods on the DSEIS and the supplemented air quality analyses, and a response to comments. The BLM has initiated activities to coordinate and consult with the Montana Governor on the FSEIS. Prior to the issuance of a record of decision and approval of the FSEIS, the Governor will be given the opportunity to identify any inconsistencies between the proposed land use plan amendment and state or local plans and to provide recommendations in writing during the 60-day consistency review period required by the BLM land use planning regulations (43 CFR 1610.3-2). The Assistant Secretary, Land and Minerals Management, in the Department of the Interior is the responsible official for this proposed land use plan amendment. This proposed amendment is not subject to administrative review (protest) under the BLM or Departmental regulations (34 CFR 1610.5-2). ITEM HAS BEEN DIGITIZED FLPMA and its implementing regulations provide land use planning authority to the Secretary, as delegated to the Assistant Secretary. Because the Record of Decision is to be signed by the Assistant Secretary, Land and Minerals Management, it will be the final decision for the Department of the Interior. As required by NEPA, the Environmental Protection Agency will publish a Notice in the Federal Register announcing the availability of the FSEIS. Because there is no administrative review of the decision, the Record of Decision will not be signed until at least 30 days after the Notice of Availability for the FSEIS appears in the Federal Register (see 40 CFR 1506.10[b]). The Department of the Interior will wait until the Governor's consistency review has been completed before signing and issuing the Record of Decision for the land use plan amendment. There are a limited number of hard-copy books available upon request. If you would like a book, or have any questions, please contact the BLM Miles City Field Office at (406) 233-2800. Sincerely, Gene R. Terland State Director, Montana/Dakotas FINAL SUPPLEMENT TO THE MONTANA STATEWIDE OIL & GAS 'd.O&x' ENVIRONMENTAL IMPACT STATEMENT AND PROPOSED AMENDMENT OF THE POWDER RIVER AND BILLINGS RESOURCE MANAGEMENT PLANS Bureau of Land Management October 10, 2008 Recommended by: James M. Sparks, Billings Field Manager Recommended by: M. Elaine Raper, Miles City Field Manager Approved by: Gene R. Terland, State Director, Montana/Dakotas ITEM HAS BEEN DIGITIZED Final Supplement to the Montana Statewide Oil and Gas Environmental Impact Statement and Proposed Amendment of the Powder River and Billings Resource Management Plans Lead Agency: U.S. Department of the Interior, Bureau of Land Management (BLM) Type of Action: Administrative Jurisdiction (Planning Area): the planning area is BLM-administered lands and minerals in the Powder River Resource Management Plan (RMP) (Powder River, Carter, and Treasure counties and portions of Big Horn, Custer and Rosebud counties) and the Billings RMP (Carbon, Golden Valley, Musselshell, Stillwater, Sweet Grass, Wheatland, and Yellowstone counties and the remaining portion of Big Horn County). The planning area contains about 1,506,011 acres of federally managed surface, and 5,009,784 acres of federal mineral estate. Abstract: As a result of lawsuits filed against the BLM’s Record of Decision (ROD), the U.S. District Court issued orders, dated February 25, 2005, and April 5, 2005, that required the BLM to prepare a Supplemental Environmental Impact Statement (SEIS) to evaluate a phased development alternative for coal bed natural gas (CBNG) production. The U.S. District Court also issued an order, dated February 25, 2005, advising the BLM to include the proposed Tongue River Railroad in the cumulative impact analysis and analyze the effectiveness of water well mitigation agreements. The Final SEIS (FSEIS) is a reissue of the original EIS/Amendment: Montana Statewide Oil and Gas Environmental Impact Statement and Amendment of the Powder River and Billings Resource Management Plans (Statewide Document). This SEIS provides additional information and analyses regarding the topics identified by the U.S. District Court. It is intended to expand on the information presented in the Statewide Document. The FSEIS analyzes three phased development alternatives (F, G, and H) for managing oil and gas resources in the planning area. As a result, the BLM selected a new preferred alternative (H). This alternative would amend the Resource Management Plans and allow coal bed natural gas (CBNG) exploration and development while minimizing impacts on environmental resources. ABS-1 SUMMARY SUMMARY Introduction This summary discusses the following information: • The planning area analyzed in the SEIS. In 2003, the Bureau of Land Management (BLM) and • The federal agencies responsible for preparing the State of Montana jointly prepared the Montana the SEIS. Final Statewide Oil and Gas Environmental Impact Statement and Proposed Amendment of the Powder • A brief explanation of what CBNG is and why it River and Billings Resource Management Plans occurs in coal beds. (Statewide Document). For the BLM, the Statewide • A summary of the purpose of and need for the Document analyzed the environmental impacts SEIS. associated with the exploration and development of oil and gas resources, including coal bed natural gas • An explanation of how the SEIS conforms with (CBNG) in the Powder River and Billings Resource the Powder River and Billings RMPs. Management Plan (RMP) areas. The BLM Record of Decision (ROD) for the Statewide Document, • A description of the environmental issues approved on April 30, 2003, amended the Powder discussed in Chapters 3, 4, and 5 of the SEIS. River and Billings RMPs to change existing land use The Planning Area decisions regarding the development of oil and gas resources, including CBNG exploration and The planning area for the SEIS encompasses the development. BLM-administered lands and minerals in the Powder As a result of lawsuits filed against the BLM’s ROD, River and Billings RMP areas (Map 1-1). The the U.S. District Court issued orders, dated February planning area excludes those lands administered by 25, 2005, and April 5, 2005, that required the BLM to other agencies such as the Forest Service; and 1) prepare a Supplemental Environmental Impact sovereign tribal governments, such as the Crow Tribe statement (SEIS) to evaluate a phased development of Indians, and the Northern Cheyenne Tribe. Indian alternative for CBNG production, 2) include the allotted lands are also excluded from the planning proposed Tongue River Railroad in the cumulative area. The BLM will make oil and gas decisions based impact analysis and to 3) analyze the effectiveness of on the Statewide Document and this SEIS for the oil water well mitigation agreements. and gas estate it administers within the Powder River and Billings RMP areas. See the location map on the The Final SEIS (FSEIS) provides additional next page. information and analyses regarding the topics identified by the U.S. District Court. It is intended to Preparers of the SEIS expand on the information presented in the Statewide Document, not replace it. The FSEIS has been The BLM is the lead agency responsible for prepared according to the National Environmental preparing the SEIS. The information and proposed Policy Act (NEPA) of 1969, as amended, and the decisions discussed in the plan are not final until the Federal Land Policy and Management Act of 1976, BLM signs a ROD. The ROD will be signed no as amended. It considers the three topics identified sooner than 30 days after the FSEIS is published. The above at a programmatic planning level. BLM will take any protests into account before Additionally, the FSEIS updates the Statewide signing the ROD. Document with new information and reflects any changes in policies, regulations, or activities since What does the Summary Include? that document was approved. Summaries of monitoring data and the results of studies completed The sections in this summary are the same as the five major since the Statewide Document was finalized have chapters within the FSEIS. In most cases, second-level been incorporated to update the public. These headings in the summary cover the same information as the additions can be found in Chapter 3 under the same headings in the Draft SEIS (DSEIS). Readers of this individual resource topics as well as in appropriate summary with questions should go to the parallel chapter or appendices. section in the FSEIS. SUM-1 SUMMARY Chapter 1: The following cooperating agencies and tribes assisted the BLM in the preparation of the DSEIS: Purpose and Need • U.S. Environmental Protection Agency (EPA) • Department of Energy (DOE) The BLM and the State of Montana were co-leads for • Bureau of Indian Affairs (BIA) preparation of the Statewide Document. The BLM is • U.S. Army Corps of Engineers (USACE) responsible for managing federally owned oil and gas • Montana Department of Environmental Quality resources. For the BLM, the purpose of the Statewide (MDEQ) Document was to analyze impacts from oil and gas • Montana Board of Oil and Gas Conservation activity, including CBNG exploration, production, (MBOGC) development, and reclamation in the Powder River • Lower Brule Sioux Tribe and Billings RMP areas. The EIS was used to analyze • Crow Tribe of Indians options for the BLM to change its planning decision • Commissioners from the following counties: Big by considering oil and gas management options, Horn, Carbon, Golden Valley, Musselshell, including mitigating measures that will help address Powder River, Rosebud, Treasure, and the environmental and social impacts related to Yellowstone. CBNG activities. The Northern Cheyenne Tribe has also commented The analysis in the Statewide Document focused on on the development of the SEIS. oil and gas development issues not covered in the The cooperators’ assistance included the submission 1994 and previous RMPs, such as water management of technical information and frequent consultation from CBNG production. The alternatives provided a meetings with the BLM to discuss issues and range of management options for amending the concerns along with possible mitigation measures. RMPs. The preferred alternative (Alternative E) was The cooperators may use or reference the SEIS for BLM’s proposed and selected RMP amendment. their future actions. For the State of Montana, the purpose of the Coal Bed Natural Gas Statewide Document was to support the state’s development of a program to address CBNG exploration, development, production, and CBNG is a natural hydrocarbon gas, primarily reclamation in Montana. The Statewide Document, in methane (CH4) that occurs in beds of coal. Coal beds part, responded to the stipulation and settlement developed when dead plant material collected in agreement, dated June 19, 2000, resulting from a ancient swamps and bogs. Once preserved and lawsuit brought by the Northern Plains Resource covered by soil and rocks, the plant material began to Council challenging the MBOGC in the Montana decay and to lose water, becoming more compact and First Judicial District Court, Lewis and Clark County. dense, and its temperature began to increase. Over thousands of years, these natural processes ultimately The BLM published the original Notice of Intent for produced various types of coal. Methane is usually the Statewide Document in the Federal Register on found in sub-bituminous and bituminous coals. December 19, 2000. The BLM published the Notice of Availability in the Federal Register on January 17, CBNG exploratory wells are drilled in an attempt to 2003. Immediately following approval of the ROD find viable commercial quantities of trapped on April 30, 2003, several lawsuits were filed against methane. If the CBNG exploratory wells are the BLM’s decision in the U.S. District Court. The successful, additional wells are drilled to produce the U.S. District Court issued orders, dated February 25, methane by bringing it to the surface where it is 2005, and April 5, 2005, that required the BLM to processed and transported through pipelines to prepare an SEIS to evaluate a phased development markets. Currently, the only methane production in alternative for CBNG production. The U.S. District Montana is from approximately 555 wells at the CX Court also advised the BLM to include the proposed Field and a few other fields near Decker, Montana. Tongue River Railroad in the cumulative impact analysis and to analyze the effectiveness of water well mitigation agreements. SUM-2