[Federal Register Volume 61, Number 103 (Tuesday, May 28, 1996)]
[Notices]
[Pages 26527-26528]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13272]



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DEPARTMENT OF THE INTERIOR
[WY-060-1310-00]


Gillette South Assessment Area, WY

AGENCY: Bureau of Land Management, Interior.

ACTION: Notice of intent to prepare an environmental impact statement 
for coalbed methane development projects in the Gillette South 
Assessment Area in Campbell County, Wyoming.

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SUMMARY: The Bureau of Land Management(BLM) under the National 
Environmental Policy Act (NEPA) must analyze the impacts of actions we 
permit on Federal lands and minerals. As part of this analysis, the 
cumulative affects of the proposed action and other activities 
occurring in the area must be considered. We have completed three 
Environmental Assessments (EA), (Pistol Point, Marquiss, and 
Lighthouse) to address proposed coalbed methane (CBM) development. On 
these projects, we found there would not be significant impacts as a 
result of the development and were able to write a Decision Record with 
a Finding of No Significant Impact (FONSI).
    Shortly after the Lighthouse decision was issued in June of 1995, 
several companies came forward with additional proposals. Torch 
operating, successor operator in the Marquiss field proposed 40 
additional wells; Western Gas Resources proposed 60 to 100 wells in the 
Lighthouse area; and Petrox Inc., proposed 35 wells within the 
Lighthouse area. DCD, Inc., and Duncan Oil have proposed about 10 
wells. In addition to the new wells proposed

[[Page 26528]]

impacts such as water drawdown and water production is proceeding at a 
rate greater than that predicted in the EAs.

DATES: Comments to be considered in the draft EIS should be submitted 
by June 28, 1996. The draft EIS should be available for public review 
by mid September of 1996.

ADDRESSES: Questions or concerns should be addressed to Richard Zander 
in the Buffalo Resource Area Office, 189 North Cedar, Buffalo, Wyoming 
82834.

FOR FURTHER INFORMATION CONTACT: Richard Zander, phone: 1-800-301-3483.

SUPPLEMENTARY INFORMATION: Shortly after the Lighthouse decision was 
issued in June of 1995, several companies came forward with proposals 
for approximately 200 additional wells. In addition to the new well 
proposals impacts were progressing at a faster rate than those 
predicted in the EAs. Marquiss was modeled at 6 gpm and Lighthouse was 
modeled at 11 gpm initially declining to an average of 7 gpm. New 
technological developments such as underreaming the open hole 
completion in the coal and fracing the coal have led to increased gas 
production and increased water production. We are seeing 15 to 25 gpm 
which is a doubling or tripling of the water production in both project 
areas, with no indication of any decline in water production. This is 
substantially greater than what was modeled for the NEPA analysis. In 
Marquiss, because of increased pump rates, static water level drawdowns 
have occurred in 3 years rather than the 10 years predicted in the NEPA 
analysis. We do not know if they will go lower. Model assumptions that 
water production would decline after 1 year are apparently not correct. 
Torch Operating believes 2 to 3 years may be more realistic. Since 
water production began in early 1993, we currently have 3 years of 
production. Torch Operating has stated they are at the point of 
balancing their production for optimum gas production and water 
production rates have declined from 25 gpm to 20 gpm.
    Monitoring data from one of the shallow wells in the Marquiss 
project area is possibly showing a decline in the static water level in 
a sandstone aquifer above the coal. We have talked with the State 
Engineers Office about this and feel it is too early to determine if 
there is communication occurring between the two zones. We are closely 
watching this activity within the aquifers. This type of occurrence 
makes it imperative that we continue forward with the monitoring 
program laid out in the Lighthouse EA.
    Lighthouse was modeled as a 5-year progressive project. Proposals 
by Western Gas Resources, Petrox, Inc., DCD, Inc., would possibly 
shorten the development timeframe. Western Gas has assumed 
responsibility for the southern two thirds of the project area from 
American Oil and Gas. They are currently drilling stratigraphic tests 
on the Durham Buffalo Ranch in Township 45 North, Range 71 and 72 West. 
We will not do any additional computer groundwater modeling on the 
areas south of Gillette. It is not feasible to credibly or accurately 
model as large an area we are talking about with the data available. As 
variables increase, accuracy decreases. We propose to extrapolate what 
we have modeled and what we have monitored to make a prediction on 
expected impacts.
    We support the landowner/industry group working on a Water Well 
Mitigation Agreement that is designed to address the question of 
potential impacts to water wells, so significant impacts do not occur 
and we intend to utilized this agreement in the development of the 
proposed action for the EIS. However, static water level declines are 
not the only issue we need to deal with. The increased rate of 
development, increased rates of production, increased surface water 
discharges, and increased area of disturbance are also questions that 
need to be addressed. We must evaluate the potential for cumulative 
impacts as a result of coal and coalbed methane development in the same 
general area at a time when development areas and production levels for 
both are increasing.

    Dated: May 21, 1996.
Alan R. Pierson,
State Director.
[FR Doc. 96-13272 Filed 5-24-96; 8:45 am]
BILLING CODE 4310-01-P