[Federal Register: March 12, 2010 (Volume 75, Number = 48)] [Notices] =20 [Page 11838-11840] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr12mr10-23] =20 ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE Forest Service =20 Huron-Manistee National Forests, Michigan, USA and State South=20 Branch 1-8 Well AGENCY: Forest Service, USDA. ACTION: Corrected Notice of Intent to prepare an Environmental Impact=20 Statement for the USA and State South Branch 1-8 well. The original=20 notice was published on 2/24/10. ----------------------------------------------------------------------- SUMMARY: The Huron-Manistee National Forests (Forest Service) and the=20 Bureau of Land Management (BLM), as a Cooperating Agency, will prepare=20 an environmental impact statement (EIS) to assess the environmental=20 impacts of an industry proposal to drill one exploratory natural gas=20 well, the USA & State South Branch 1-8 (SB 1-8) well, on National=20 Forest System lands. The EIS will also assess the impacts of=20 constructing necessary infrastructure, including production facility=20 and flowline, should the well be capable of producing hydrocarbons in=20 commercial quantities. This analysis will allow the agencies to make=20 their respective decisions on this proposal in accordance with federal=20 regulations. DATES: Comments concerning the scope of the analysis must be received=20 by April 26, 2010. The Draft EIS is expected in December 2010 and the=20 Final EIS is expected by July 2011. ADDRESSES: Send written comments to Lauri Hogeboom, Interdisciplinary=20 Team Leader, Huron-Manistee National Forests, 1755 S. Mitchell Street,=20 Cadillac, MI 49601; fax: 231-775-5551. Send electronic comments to:=20 comments-easter= n-huron-manistee@fs.fed.us. FOR FURTHER INFORMATION CONTACT: Ken Arbogast, Huron-Manistee National=20 Forests; telephone: 231-775-2421; fax: 231-775-5551. See address above=20 under Addresses. Copies of documents may be requested at the same=20 address. Another means of obtaining information is to visit the Forest=20 Web page at http://= frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=3DleavingFR.html&lo= g=3Dlinklog&to=3Dhttp://www.fs.fed.us/r9/hmnf then click on = ``Projects and=20 Planning'', then ``Mio projects'', and then ``USA and State South=20 Branch 1-8.'' Individuals who use telecommunication devices for the deaf (TTY)=20 may call 1-231-775-3183. SUPPLEMENTARY INFORMATION: Purpose and Need for Action The purpose for action is to respond to the proponent's, Savoy=20 Energy, L.P.'s (Savoy), proposal to exercise its rights under Federal=20 leases to drill for, extract, remove and dispose of all the oil and gas=20 from leased lands. The Huron-Manistee National Forests (Forest Service)=20 and the Bureau of Land Management (BLM) received an Application for=20 Permit to Drill (APD), including a Surface Use Plan of Operation=20 (SUPO), from Savoy. A response to the application is needed because Savoy has lawful=20 oil and gas rights to three state and three federal leases in a 640- acre drilling unit and the Forest Supervisor (FS) and the Milwaukee=20 Field Office Manager (BLM) are required by regulation to evaluate and=20 decide upon operating plans received from industry for exploration and=20 development of federal leases. The agencies must ensure Savoy's=20 operating plan is consistent with the terms and stipulations of the=20 federal mineral leases, applicable laws and regulations, the Huron- Manistee's Land and Resource Management Plan, and identify any=20 additional conditions needed to protect federal resources. The BLM ultimately renders a decision on the APD, and the Forest=20 Service must review and decide upon the SUPO before the BLM can make=20 its APD decision. Proposed Action The Forest Service proposes to authorize Savoy to conduct surface=20 operations associated with accessing, drilling, testing, and completing=20 the USA and State South Branch 1-8 well, as described in the SUPO and=20 APD submitted to the BLM. The Forest Service would approve the SUPO for=20 the USA and State South Branch 1-8 Well. The BLM proposes to authorize Savoy to conduct operations to drill,=20 test and complete the proposed exploratory well on the subject leases=20 and approve the APD submitted for this well. The Forest Service and BLM authorization would include reasonable=20 and necessary mitigation to ensure Savoy's operations would be in=20 compliance with law, regulation, and policy. Savoy holds six subsurface mineral leases included in a 640-acre=20 drilling unit in South Branch Township (T25N, R1W), Crawford County,=20 Michigan, Section 7: E \1/2\, Section 8: W \1/2\. This 640-acre=20 drilling unit includes three state and three federal oil and gas=20 leases. Savoy is proposing to drill directionally from National Forest=20 System lands within the boundaries of the Huron-Manistee National=20 Forests to the bottomhole located in Federal mineral lease MIES 50521,=20 approximately 2,200 feet northwest of the surface hole, and construct=20 associated infrastructure including a production facility and [[Page 11839]] flowline if Savoy determines the well could produce a commercial=20 product. Savoy's proposal includes: Leveling of the well pad (approximately=20 3.5 acres) for the drilling rig, equipment, and pit, including some=20 minor cut and fill. It also includes the use, reconstruction and=20 maintenance of portions of existing roads for year-round access,=20 including snow plowing along a section of River Lake Road (aka Hickey=20 Creek Road), a section of FSR 4209 (road which ends at the Mason=20 Chapel), and a section of FSR 4208 to access the well site;=20 construction and maintenance of 50 feet of new road off FSR 4208, 14=20 feet wide with three feet of clearing on each side (approximately 0.05=20 acre of disturbance) to access the well pad; and drilling a water well=20 at the well pad site to provide water for drilling and future well=20 maintenance, if needed. Following these activities drilling equipment=20 would be moved in and rigged up. Drilling and well completion would be expected to take 45 days.=20 Drilling operations would be restricted to a time period between=20 December 1 and April 15. The well pad would be approximately 3.5 acres=20 in size. Standard and accepted drilling techniques and practices would=20 be used and must comply with minimum operating standards approved by=20 Michigan Department of Natural Resources and Environment (MDNRE) and=20 the BLM. These standards address the casing program, pressure control=20 equipment, H2S contingency plans, and proposed drilling fluids program.=20 Hazardous materials, including stimulation and completion fluids, would=20 be contained in steel tanks and disposed of by a licensed waste hauler. Additional actions proposed, if the well is productive, include:=20 Construction of a production facility located in SE, Section 9, T25N,=20 R1W (approximately 1.5 miles from the well pad) on approximately 2.0=20 acres, including installation of a gas/water separator, condensate (if=20 needed) and brine tanks, dehydrator, compressor, volume bottle, and=20 measurement (monitoring) equipment; installation of flowlines from the=20 well site to the production facility site, buried alongside the=20 roadbed, and a pipeline to the Michigan Consolidated Gas transmission=20 line, totaling approximately 1.7 miles. Reclamation of a portion of the=20 well pad would occur following drilling and completion, leaving=20 approximately \1/3\ acre to be used for well operations. If the well is not capable of commercial production, the operator=20 would plug and abandon the well under applicable State and BLM rules=20 and regulations. Reclamation of the site, according to the reclamation=20 plan included with the SUPO, would occur within six months of=20 completion of well plugging. This would include: Recontouring and=20 stabilizing all excavations, spreading of topsoil reserved during site=20 construction over the disturbed well pad area, and seeding with a=20 Forest Service approved mix. The flowline route would be restored and=20 the 50-foot length of new access road would be obliterated. MDNRE's Water Quality Management Practices on Forest Land and the=20 BLM/Forest Service's Surface Operating Standards and Guidelines for Oil=20 and Gas Exploration and Development will be used to manage the roads.=20 Additionally, prior to reconstructing FSR 4209, approximately 150 feet=20 of silt fence would be placed per Forest Service direction adjacent to=20 the south side of the road for wetland protection. The operator would maintain a dike around the condensate and brine=20 tanks at the production facility of sufficient size and height so as to=20 contain 150% of the total capacity of the tanks. The width of the reconstructed roads would not exceed 14 feet. An=20 additional three feet of clearing would be done on each side of the=20 road. Clearing width would not exceed 20 feet. Soil disturbed with the placement of the flowline/pipeline would be=20 seeded with a seed mix specified by the Forest Service. Roads into the well pad and production facility would be gated and=20 locked. Road design and construction would take into account visual=20 quality. Minimization of noise is to be emphasized during drilling,=20 completion, and production operations. Hospital-type engine mufflers=20 would be used on drilling, completion, and workover rigs, and on mud=20 pumps and compressors. No pumps or motors would be placed on the=20 surface of the well or at the well site during the production phase. If=20 the production facility is processing gas from one well, the sound=20 level would not exceed 33 dBA at 1,320 feet. If more than one well is=20 produced from the proposed facility, the total sound level for the=20 production facility would not exceed 36 dBA at 1,320 feet. The=20 production facility would be constructed to meet these sound levels. Off-road equipment would be inspected by a Forest Service=20 representative and washed if needed to prevent introduction of non- native invasive plants that are not already present in the project=20 area. Protection will be provided for Endangered, Threatened and=20 Sensitive Species in accordance with law, regulation and policy. The Forest Service, the BLM, and MDNRE will coordinate inspections=20 to ensure compliance with requirements. Possible Alternatives to the Proposed Action No Action Alternative: The Forest Service would not approve the=20 SUPO and/or the BLM would not approve the APD. Current direction would=20 continue to guide management of the project area. The SB 1-8 well would=20 not be drilled, no flowlines would be installed, and no production=20 facility would be constructed. Modification of Savoy's Proposal Alternative: The Forest Service=20 would approve the SUPO and the BLM would approve the APD subject to=20 additional conditions of approval based on mitigation developed in=20 response to issues raised during the public scoping period. Lead and Cooperating Agencies The BLM and the Forest Service entered into a Memorandum of=20 Understanding (MOU) in April 2006 ``to establish procedures for the=20 coordinated administration of oil and gas operations on Federal leases=20 within the National Forest System (NFS).'' The MOU identifies the=20 responsibilities of the agencies to provide efficient, effective=20 adherence to rules and regulations for each. Specifically, the MOU=20 states, ``IIIA3. * * * the Forest Service has the full responsibility=20 and authority to approve and regulate all surface-disturbing=20 activities associated with oil and gas exploration and development=20 through analysis and approval of the SUPO component of an APD.''=20 ``VB1. * * * Forest Service will: Serve as lead agency for oil and=20 gas * * * environmental analyses required for APDs * * *.'' ``IIIA2.=20 The BLM has the authority and responsibility to provide final=20 approval of all APDs, including those for operations on Federal=20 leases on NFS lands * * *. The BLM has the authority and=20 responsibility to regulate all down-hole operations and directly=20 related surface activities and use, and provide approval of the=20 drilling plan and final approval of the APD on NFS lands.'' This MOU is consistent with the NEPA regulations, 40 CFR 1501.5=20 Lead Agency and 1501.6 Cooperating Agencies, identifying the Forest=20 Service as the lead agency and the BLM as the cooperating agency. Responsible Official for Lead Agency Barry Paulson, Forest Supervisor, Huron-Manistee National Forests,=20 1755 S. Mitchell Street, Cadillac, MI 49601. [[Page 11840]] Responsible Official for Cooperating Agency Mark Storzer, Field Manager, Bureau of Land Management, Milwaukee=20 Field Office, 626 E. Wisconsin Ave. Suite 200, Milwaukee, WI 53202- 4617. Nature of Decision To Be Made The Forest Supervisor of the Huron-Manistee National Forests will=20 issue a decision on whether to approve, approve subject to specified=20 conditions, or disapprove for stated reasons the proposed SUPO for=20 development of the SB 1-8 well and construction and operation of the=20 flowline/pipeline and production facilities. Similarly, the BLM Field=20 Manager in Milwaukee will issue a decision on whether to approve the=20 APD as submitted, approve subject to appropriate modifications or=20 conditions, or disapprove for stated reasons. Preliminary Issues We expect issues to include possible effects of noise, odor and=20 changes to the visual quality from the project for anglers and visitors=20 to the Semi-Primitive Nonmotorized Area and Mason Tract, as well as the=20 possible effects of the project on tourism in the county. Permits and Licenses Required Savoy will be required to obtain a State permit for drilling from=20 the MDNRE. Scoping Process This Notice of Intent initiates the scoping process, which guides=20 the development of the Environmental Impact Statement. The Forest=20 Service plans to scope for information by contacting persons and=20 organizations interested or potentially affected by the proposed action=20 through mailings, public announcements, and personal contacts. It is important that reviewers provide their comments at such times=20 and in such manner that they are useful to the agency's preparation of=20 the EIS. Therefore, comments should be provided prior to the close of=20 the comment period and should clearly articulate the reviewer's=20 concerns and contentions. The submission of timely and specific=20 comments can affect a reviewer's ability to participate in subsequent=20 administrative appeal or judicial review. We are especially interested in information that might identify a=20 specific undesired result of implementing the proposed action. Comments=20 will be used to help formulate alternatives to the proposed action.=20 Please make your written comments as specific as possible, as they=20 relate to the proposed action, and include your name, address, and if=20 possible, telephone number and e-mail address. Comments received in response to this solicitation, including names=20 and addresses of those who comment, will be considered part of the=20 public record on this proposed action and will be available for public=20 inspection. Comments submitted anonymously will be accepted and=20 considered; however, those who submit anonymous comments will not have=20 standing to appeal the subsequent decisions under 36 CFR Part 215.=20 Additionally, pursuant to 7 CFR 1.27(d), any persons may request the=20 agency to withhold a submission from the public record by showing how=20 the Freedom of Information Act (FOIA) permits such confidentiality.=20 Persons requesting such confidentiality should be aware that, under=20 FOIA, confidentiality may be granted in only very limited=20 circumstances, such as to protect trade secrets. The Forest Service=20 will inform the requester of the agency's decision regarding the=20 request for confidentiality and, should the request be denied, return=20 the submission and notify the requester that the comments may be=20 resubmitted with or without name and address within 90 days. Dated: March 5, 2010. Barry Paulson, Forest Supervisor. [FR Doc. 2010-5289 Filed 3-11-10; 8:45 am] BILLING CODE 3410-11-M