XTO Energy Inc. La Plata #1H Gas Well

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1 DECISION MEMO XTO Energy Inc. La Plata #1H Gas Well National Forest & Grasslands in Texas Sabine National Forest Angelina/Sabine Ranger District Shelby County, Texas DECISION I have decided to approve the Surface Use Plan of Operations (SUPO) for XTO Energy Inc. s development of the La Plata #1H gas well as proposed with standard modification. The modification incorporates the inclusion of the National Forest and Grasslands in Texas (NFGT) Oil and Gas Standards and Guidelines, Appendix B of the 1996 Revised Land and Resource Management Plan for the National Forest and Grasslands in Texas (the Plan), and other Conditions of Approval which will assist in the management and administration of this activity. Development of the La Plata #1H gas well includes accessing, drilling, testing, completing and producing the well, and construction of the associated pipeline right-of-way (ROW). The SUPO is a binding part of the Application for Permit to Drill authorized by the Bureau of Land Management (BLM). The purpose of the well is to explore and develop hydrocarbon deposits on a federal lease within administrative compartment 36 of the Sabine National forest. The project area is located approximately 12 miles southeast of Shelbyville, Texas, in Shelby County. The La Plata #1H well pad is about 400 feet by 600 feet in size and located on National Forest System Road (NFSR) 125A. The well pad lies at the junction of NFSR 125A, 125A1A, and 125A3. These roads are single-lane, unimproved roads that do not carry through traffic and will be rerouted around the well pad within the well pad footprint to allow future access. The first +/-3,626 feet of NFSR 125A will be reconstructed to support the traffic level to service the well. As a result of red-cockaded woodpecker movements, the alternate pipeline route is being used. The gas pipeline ROW will extend from the La Plata well pad, due east, to a tie-in point on the Loa #1HB well pad. The pipeline ROW will be +/-3,257 feet in length and 30 feet in width during construction. The ROW will be reduced and maintained at a width of 20 feet (1.5 acres) after the construction phase of the project. The total project area covers about acres (well pad 5.51 acres, access road reconstruction 3.33 acres, and pipeline ROW 2.24 acres) reduced to acres with incorporation of the adjusted pipeline acreage. Operations would occur on oil and gas lease TXNM and TXNM and would include the following performed by the Operator: Reconstructing +/- 3,626 feet of NFSR 125A to access well location. Clearing timber and leveling of 5.51 acres for the well pad location. Page 1 of 5

2 Rerouting of short sections (< 300 feet) of NFSR 125A, 125A1A, and 125A3 within the well pad footprint to maintain through traffic. Moving in and rigging up drilling equipment. Conducting drilling operations for approximately 3 months until the well is drilled to the target horizon. Testing the well for production capability. Installing +/- 3,257 feet of pipeline. Installation of production facilities including tank battery and compressor. Reduction of well pad size to accommodate production and re-vegetation of reduced area. Plugging of well and rehabilitation of all disturbed areas if well is not producible. If the well proves gas production capability, XTO will cement the casing in the well and prepare it for additional testing under applicable BLM and State requirements. Depending on results of production testing, production equipment could be installed on the well site, additional wells may be drilled on the same location, or the well could be plugged and the site rehabilitated. PURPOSE OF DECISION The purpose of the project is to approve the Surface Use Plan of Operations (SUPO) for XTO Energy Inc. s development of the La Plata #1H gas well and issue a Special Use Permit authorization to XTO for a natural gas pipeline ROW. The well is proposed to extract federal minerals pursuant to Federal oil and gas leases TXNM and TXNM CATEGORICAL EXCLUSION & EXTRAORDINARY CIRCUMSTANCES This action is categorically excluded from documentation in an environmental assessment (EA) or an environmental impact statement (EIS) for the following reasons (36 CFR (a)): 1) Past projects, which are similar to the proposed action, have had no significant effects, individually or cumulatively, and no extraordinary circumstances exist in this proposal that might cause the action to have significant effects upon the human environment. 2) This proposal is consistent with and similar to the categories of action which may be excluded from documentation in an EIS or an EA as described in 36 CFR (e)(17). There are no extraordinary circumstances that would warrant further analysis and documentation in an EA or EIS. Taken into account were resource conditions identified in agency procedures that should be considered in determining whether extraordinary circumstances might exist (36 CFR (b)): Federally listed threatened or endangered species or designated critical habitat, species proposed for Federal listing or proposed critical habitat or Forest Service sensitive species As indicated by the project specific biological evaluation (BE # ) the proposed action has a determination of not likely to adversely effect on the red-cockaded woodpecker, while all other Page 2 of 5

3 proposed, threatened, or endangered species on the Sabine National Forest will have a no effect. The U.S. Fish and Wildlife Service concurred with this determination on 12/5/14. This Biological Evaluation is based upon the best available science, including peer-reviewed scientific literature, state and federal agency reports and management input, discussions with scientists and other professionals, and ground-based observations. Flood plains, wetlands, or municipal watersheds No floodplains, wetlands, or municipal watersheds are involved in the proposed project area. Congressionally designated areas such as wilderness, wilderness study areas, or national recreation areas None are present. Inventoried roadless areas or potential wilderness areas None are present. Research natural areas None are present. American Indians and Alaska Native religious or cultural sites and Archaeological sites, or historic properties or areas As indicated in the Heritage Resources Survey Report, Cultural Resources Survey of the La Plata #1H Project Area, Sabine National Forest, Shelby County, Texas (R ) on the Sabine National Forest, by Christopher Goodmaster, and the Cultural Resources Survey of the Loa, La Plata, and Tiber Pipelines Shelby County, Texas (R ) on the Sabine National Forest, by Todd McMakin, proposed actions will have no effect on heritage resources (sites) that are eligible for the National Register of Historic Places (NRHP) or on any other site that has not been evaluated for NRHP eligibility. The State Historical Preservation Officer (SHPO) concurred with the, Cultural Resources Survey of the La Plata #1H Project Area, Sabine National Forest, Shelby County, Texas report on April 26, 2012 and the Cultural Resources Survey of the Loa, La Plata, and Tiber Pipelines Shelby County, Texas report on May 22, In accordance with the requirements of the National Historic Preservation Act of 1966 (NHPA), Executive Order 13007, the American Indian Religious Freedom Act (AIRFA), and others, consultation with the Caddo Nation of Oklahoma, The Alabama-Coushatta Tribe of Texas has been conducted and has identified no concerns. Visual resources and water quality will not be impacted. In relation to air quality, the proposed actions will not cause the National Ambient Air Quality Standards or Class II Areas to be violated. The effect of this project on climate change has been considered, as well as the effect of climate change on this project. Any resulting greenhouse gas emission would not be measurable on a global scale. PUBLIC INVOLVEMENT A letter outlining the proposed action and requesting input was mailed to the current list of potentially interested or affected parties on June 24, This project is denoted as the XTO Energy, Inc. La Plata #1H Gas Well, Pipeline, and Access Road project on the Schedule of Proposed Actions. Two responses were received during the comment period. One response was from the Choctaw Nation of Oklahoma, a Tribal contact. The second response was from Stine Timber Management, Inc. with the following concern: Page 3 of 5

4 Comment: Appraise and assess Present Net Value (PNV) for timber growth loss over the proposed acres. The loss of timber growth on commercial forest lands to clearing projects such as this is additive as similar projects are developed and implemented over the Sabine National Forest. The forest resource will be converted to long-term non-forest land with construction and this land use change involves non-negligent damage with an associated value loss. The loss should be recouped by the Forest Service from the permittee to the advantage of the government. This is a generally accepted practice in forest valuation that when implemented benefits the U.S. Treasury and the tax paying public. Opposition to the alternative pipeline route as it promotes forest fragmentation and disrupts visual quality with a straight line-of-sight travel way for over 0.60 miles. Response: Currently the Forest Service sells the wood at the current market value and there is no compensation for PNV on future timber growth loss. The agency has no policy or supporting regulations in place to appraise and assess value for future growth loss. Though the effect of the loss of this future growth value may be viewed as cumulative as similar projects are developed and implemented on the Sabine National Forest over time, the overall effect is mitigated by the collection of annual land use fees for authorized special uses and from mineral royalty revenue from federal wells. An ephemeral stream coupled with a historic site will be encountered and the pipeline will be bored under both features, with a 50-ft buffer on each side of the stream/historic site in which no vegetation clearing will be performed. The public and internal scoping did not lead to any information that would result in a change of the project Decision. Documentation of public involvement is on file at the District Office on State Highway 21 just east of Milam, Texas FINDINGS REQUIRED BY OTHER LAWS AND REGULATIONS The project was designed in conformance with the 1996 Revised Land and Resource Management Plan for the National Forests and Grasslands in Texas (the Plan). The actions of this decision are consistent with direction in Appendix B-Mineral Operations Clauses and Attachments and Management Area 1 (Upland Forest ecosystems), Management Area 2 (Red-cockaded Woodpecker Emphasis), 4 (Streamside Management Zones), and 10b (Special Use Permit Sites) of the Plan. ADMINISTRATIVE REVIEW (APPEAL) OPPORTUNITIES Pursuant to 36 CFR (f), this decision is not subject of a higher level of review. IMPLEMENTATION DATE Implementation may begin immediately. Page 4 of 5

5 CONTACT For further information on this decision, contact District Ranger, Kimpton M. Cooper, 5050 State Highway 21 East, Hemphill, TX 74948, phone /s/ Kimpton M. Cooper December 11, 2014 Kimpton M. Cooper District Ranger Angelina and Sabine National Forests 5050 State Highway 21 East Hemphill, Texas Date USDA is an equal opportunity provider and employer. Page 5 of 5

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