BLM LIBRARY 880660 7 Record of Decision for the Final Supplement to the Montana Statewide Oil and Gas Environmental Impact Statement and Proposed Amendment of the Powder k. River and Billings Resource Management Plans M i l e s C i t y F i e l d December 2008 O f f i c e Record of Decision HD 243 .M9 M668 2008b c. 2 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 B!dg. 50, OC-521 P.Q. Box 25047 Denver, CO 80225 BLM/MT/PL-09/001 United States Department of the Interior BUREAU OF LAND MANAGEMENT Montana State Office 5001 Southgate Drive Billings, Montana 59101-4669 IN REPLY TO: 1610 http://www.blm.gov/mt http://www.blm.gov/mt/milescity_seis/ December 30, 2008 Dear Reader: In accordance with the National Environmental Policy Act of 1969, as amended (NEPA), and the Federal Land Policy and Management Act of 1976 (FLPMA), the Bureau of Land Management (BLM) has prepared the Record of Decision (ROD) for 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 (SEIS). The ROD approves BLM’s proposed decisions in the Final SEIS. The ROD 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 tot coal bed natural gas production. BLM consulted with the Montana Governor on the FSEIS. The Governor’s review did not result in substantive changes to the plan amendment. The ROD serves as the Department of Interior’s decision to be implemented by the BLM. Since the ROD contains no implementation decisions, no further administrative remedies are available. Additional project-level NEPA analyses will be conducted prior to BLM’s approval of individual and project proposals, and subsequent on-the-ground implementation. 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 ITEM HAS BEEN DIGITIZED ' * ' RECORD OF DECISION a. 2. MONTANA STATEWIDE OIL AND GAS ENVIRONMENTAL IMPACT STATEMENT AND AMENDMENT OF THE POWDER RIVER AND BILLINGS RESOURCE MANAGEMENT PLANS Prepared by: United States Department of the Interior Bureau of Land Management Miles City Field Office Miles City, Montana Cooperating Agencies: 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, Montana , Date: Dwemtw 30 2008 Assistant Secretary Land and Minerals Management Department of the Interior ITEM HAS BEEN DIGITIZED Record of Decision Supplement to the Montana Statewide Oil and Gas Environmental Impact Statement and 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 encompasses BLM-administered lands and minerals in the Powder River Resource Management Plan (RMP) area - Powder River, Carter, and Treasure counties and portions of Big Horn, Custer and Rosebud counties; and the Billings RMP area - 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, 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’s February 25, 2005, order 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. Alternative H is the Approved Alternative. The Approved Alternative provides a comprehensive framework for managing oil and gas resources on public lands in the planning area. This alternative amends the Powder River and Billings RMPs and provides for CBNG exploration and development while minimizing impacts on environmental resources. Further information regarding this ROD is available via the contact below or at the BLM website (http://www.blm.gov/eis/mtymilescity_seis/). Bureau of Land Management Miles City Field Office 111 Garryowen Road Miles City, MT 59301 Telephone (406) 233-2800 *• ' TABLE OF CONTENTS ABBREVIATIONS AND ACRONYMS.iv RECORD OF DECISION.1 DECISION.1 ALTERNATIVES.1 ENVIRONMENTALLY PREFERRED ALTERNATIVE.2 MANAGEMENT CONSIDERATIONS.2 MITIGATION.3 Air Quality.3 Cultural Resources.3 Fire .3 Hydrology.3 Indian Trust and Other Interests.3 Lands and Realty.3 Livestock Grazing.3 Paleontology.3 Recreation.3 Solid and Hazardous Waste.4 Soils.4 Vegetation.4 Visual Resource Management.4 Wilderness Study Areas.5 Wildlife and Aquatics.5 MONITORING.5 Land Use Plan Monitoring.5 Project Monitoring.5 Resource Monitoring.5 PUBLIC INVOLVEMENT.5 Tribal Consultation.6 U.S. Fish and Wildlife Service Consultation.6 APPROVED RESOURCE MANAGEMENT PLAN AMENDMENT.7 INTRODUCTION.7 ISSUES.7 Issues Identified for the Statewide Document.7 Issues Identified for the SEIS.12 Issues or Alternatives Considered But Not Analyzed in Detail.14 PLANNING CRITERIA.16 Introduction.16 Overall Considerations.16 WHAT’S BEING AMENDED IN THE POWDER RIVER AND BILLINGS RMPs.17 TOC-i General Management.17 APPROVED ALTERNATIVE H MANAGEMENT.r..18 Screens to be Applied.20 Water Screen.20 Wildlife Screen.20 All Wildlife Species.20 Native American Concerns Screen.22 Air Quality Impact Screen.23 STANDARD OPERATING PROCEDURES AND BEST MANAGEMENT PRACTICES.24 POD Requirements.24 Wells and Well Pads.24 Coal Mines.24 Roads, Pipelines and Other Infrastructure.24 Produced Water Management.25 Wildlife Monitoring Program and Mitigation Measures.25 CONSISTENCY WITH APPLICABLE POLICIES, PLANS AND PROGRAMS.27 Achieving Air and Water Quality Program Requirements.27 Interagency Work Group (IWG).27 ROLES, RESPONSIBILITIES AND REGULATORY PROCESS...27 STATE OF MONTANA.29 Air Quality Program.29 Water Quality Program.30 BLM.30 Steps to Obtain Approval to Drill.30 APPENDICES APPENDIX A.1 APPENDIX B.1 APPENDIX C.1 TOC-ii