SHALE GAS AND THE CRM EXPERIENCE.

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1 SHALE GAS AND THE CRM EXPERIENCE

2 Typical CRM Projects Function in a well defined compliance arena Generally follow the principles established in Section 106 of the National Historic Preservation Act Have a LEAD FEDERAL AGENCY that defines the AREA OF POTENTIAL EFFECTin collaboration with the SHPO Include Identification, Evaluation, and Mitigation steps

3 Typical Pipeline Industry CRM Projects Regulated by FERC, 7c, Blank Certificates, etc. Permitted by COE with a lead district establishing the rules Regulated by BLM or other land agency Have reasonably well established parameters for decision making Pipeline companies are accustomed to working in this environment and have procedures and staff dedicated to compliance

4 What Makes Shale Projects Challenging? Lack of clear federal agency results in inconsistent interpretations of the law between and among agencies Difference among the states SHPOs now familiar with shale projects Differences between districts of COE» Louisville vs. Huntington vs. Baltimore» Occasional Use of Pre-Permitting Approach SHPOs have formal opinions, some willing to express the opinions strongly SHPOs overextended by volume

5 Absence of Clear Rule Making Absence of agency results in non-standard implementation of Section 106 rules Most basic principles missing-no clear definition of the Area of Potential Effect or survey area CRM practitioners function as Agency and SHPO until late in the process Poor fit for some practitioners Set of Best Practices would result in greater consistency

6 What Are Standard Approaches? Standard survey east of the Mississippi is to survey water crossings plus a buffer Generally 200 feet either side of the high water mark, but varies by agency and state. Some identify 100 feet Some states interested in architecture, others are not Decision making paralysis

7 Approaches Continued Water crossings are surveyed because they are what the COE, or the state agency acting as the COE, will define as the permit area Every SHPO will ask for more, usually whole line survey or high probability areas. Many SHPOs will now negotiate to get something.

8 Survey Standards Many owners seek to complete due diligence This is not defined and thus falls to the consultant to provide professional judgment Because no agency is driving the decision, for smaller projects consultants often opt for a minimalist approach to reduce costs Often this translates to a literature search only Literature search identifies only sites previously recorded, not the sites that may be impacted by the project Does not follow a Best Practice in most cases Resources that may be impacted by projects are not identified

9 Typical Problems An owner agrees to a survey, you find a site, what is the owners obligation? How do CRM practitioners report on these types of projects? Are owners obliged to report the results of survey? Agency only wants to read what is in the permit, SHPO wants to see everything Often results in 2 separate reports, time consuming Need to create modular reports with interchangeable parts

10 What happens when you don t have an agency and you find something significant? Rock shelter example Identified in a High Probability area, NOT by a water crossing Rerouted immediately, but still have impacts according to SHPO How do you coordinate Native American consultation? How do you avoid decision making paralysis? BIG Problems

11 BIG Problems What is in the best interest of the owner vs. the resource? How much time do you invest in resources that are avoided? How do you balance the long term interests of owners with the agencies and SHPOs? What happens when you report on resources outside of the permit area? Could this cause other business problems? How do landowners fit into this scheme? Can you oppose or promote the line!

12 What are the long term interests? Preserving and Protecting Resources Is Good Business Protects and preserves resources and demonstrates good stewardship Maintains healthy relationships with community, SHPO, and Agencies Builds strong ties to communities that you are involved in for the long term Provides Critical Data Identification of resources essential to building database of sites Helps researchers identify areas of high importance Saves time by preventing resurvey of same area How do we establish best practices?

13 Thank You

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