Mojave-Southern Great Basin Resource Advisory Council

Meeting Minutes

Wednesday, Aug. 21, 2002

BLM Ely Field Office

Resource Advisory Council members present and category represented:

Patrick John Chicas Permitted Recreation

Mark N. Ioli Mineral Development

Dr. John E. Hiatt Wildlife

Robert Maichle Environment

Dr. Steve Parker Academic/UNLV

Ben Patterson Ranching/Grazing

Resource Advisory Council members absent:

> Marta Agee Grazing/Ranching

Dr. Colleen Beck Archeology/Historic

Barbara Callihan Dispersed Recreation

Thalia Dondero Elected official

Maurice Frank-Churchill Native American

Billie Gayle-Young Wild Horse & Burro

Jerry Helton Transportation/Row (Chair)

Steve Mellington Public at Large (vice-Chair)

Bureau of Land Management representatives present:

Karen Eller BLM Tonopah Administrative Assistant

Bill Fisher BLM Tonopah Field Manager

Phil Guerrero BLM Las Vegas Public Affairs Specialist

Chris Hanefeld BLM Las Vegas Public Affairs Specialist

Gene Kolkman BLM Ely Field Manager

Jim Perkins BLM Ely Field Office Assist. Mgr., Renewables

Steve Salzman BLM NSO Assist. DSD, Minerals Management

Jo Simpson BLM NSO Chief of Public Affairs

Jeff Weeks BLM Ely Field Office Assist. Mgr., Non-Renew.

Public attendees:

Steve Holdsambeck District Ranger, Humboldt-Toiyabe National Forest

John H. Snow Petroleum Engineer, State of Nevada

A copy of each attachment is listed in the text of, or at the end of
these minutes, and also is on file with the official copy of the minutes
in the Las Vegas Field Office of the BLM. Persons desiring to review
said minutes should contact Phillip Guerrero, public affairs specialist,
at (702) 498-6088.

> \- Lacking a quorum, the meeting started at 1:49 p.m. -
>
> 1:49 p.m. -- Geothermal Energy; by John H. Snow, the Oil, Gas and
> Geothermal Programs Manager for the State of Nevada ([see Attachment
> 1]{.underline}).

-   Snow provided a brief update on geothermal energy in Nevada, saying
    that the BLM field offices located in Battle Mountain, Carson City
    and Winnemucca are preparing Environmental Assessments (EA) for
    geothermal projects.

-   Snow predicted that geothermal projects in Nevada would dramatically
    increase within five years.

-   Snow briefly described the two types of geothermal facilities common
    today, i.e., binary plants and flash plants. He also described
    briefly Investment Tax Credit possibilities and the Department of
    Energy's (DOE) "Geopowering the West" initiative, which is intended
    to assist in geothermal production western wide. He explained that
    the upper one-third of Nevada is geographically suitable to
    geothermal energy and that education is key to the future of
    geothermal energy.

> 2:28 p.m. -- Oil & Gas Exploration; by John H. Snow, the Oil, Gas and
> Geothermal Programs Manager for the State of Nevada (see attachment
> 1).

-   Snow described briefly the contents of Attachment 1.

-   Snow noted that Nevada is 75 years behind other states in oil and
    gas development. He also said that large blocks of land are
    essential to ensure that oil and gas development is economically
    viable. If oil and gas exploration in Nevada is to succeed, the BLM
    must make large blocks of public lands available, he said.

-   Responding to a question by John Hiatt regarding a previous oil boom
    in Nevada, Snow said that nationwide the BLM leases oil through two
    methods, i.e., competitively and non-competitively. He said that all
    nominated lands must be sold, if possible, through the competitive
    process prior to being offered via the non-competitive process.

-   Snow said an omnibus reconciliation bill passed in 1990 that for
    approximately 10 years placed 50-percent of the state's revenue
    shares in federal coffers. The bill was later repealed, he said. He
    also cited Assemblyman Roy Neighbors for his success in obtaining
    more revenues for Nevada's counties.

-   Maichle said that geographical uplifting has caused Nevada's oil to
    remain in small isolated pools only. Snow responded by explaining
    briefly current geographic seismic techniques. Snow agreed that
    Nevada has tertiary rocks that disrupt seismic techniques, thereby
    lessening the tool's value in the exploratory process.

-   Snow used the last 10 years as an example to cite why Nevada's oil
    development might be lacking. He suggested, in part, Washington
    policies, i.e., natural gas and coal-bed methane as the fuels of
    choice. John Hiatt asked how many producing oil wells have been
    discovered in the last 10-20 years, statewide (as compared to
    non-producing wells). Snow responded that outside of a single area,
    Grant Canyon, there have been only three new "pool" discoveries.

-   John Hiatt asked about oil's economic potential in Nevada. Snow said
    only one of the two refineries statewide is active. He said Nevada's
    crude oil is a lower grade than found elsewhere and that it,
    combined with transportation costs, lowers oils profitability.

-   Ben Patterson asked what the 20-year forecast for oil exploration
    would be statewide. Snow forecasted little change for the next five
    years. Gene Kolkman noted that BLM policies do not change because of
    administrations. Kolkman said changes in technology and improved
    communications between oil companies and the BLM have played a
    significant role in improving oil and gas development in Nevada.
    Snow said that a recent report has also improved exploration and
    development opportunities. He said that shifting some of the
    documentation responsibilities to the oil companies helped to
    streamline processes, thereby saving dollars. Snow predicted that an
    Internet-based system would soon be in common use. Kolkman said
    other positive changes included new land-size requirements for oil
    exploration companies.

    -   The meeting recessed at 3:40 p.m., and reconvened at 3:54 p.m.
        --

3:54 p.m. - Steve Holdsambeck, District Ranger, Humboldt-National
Forest, was introduced.

-   Holdsambeck said a Landscape Assessment is scheduled for the Spring
    Mountains. A brief discussion ensued.

-   Holdsambeck said the planned-for inventory is expected to continue
    for 5-6 years. The inventory would be all-inclusive, he said.

-   An expansion has been proposed for a local ski area, said
    Holdsambeck. That, however, might not be entirely possible because
    of the proposed parking lot's impact to certain animal species, he
    said. A brief discussion ensued.

4:15 p.m. -- Manager's reports:

Bill Fisher, BLM Tonopah Field Manager ([see Attachment 2]{.underline}).

Phil Guerrero, BLM Las Vegas Field Office Public Affairs Specialist.

-   Guerrero discussed briefly controversy surrounding a potential land
    exchange. The controversy involves the BLM's use of a consultant
    that also has a contract with the land developer interested in
    exchanging the property. A brief discussion ensued.

-   Guerrero updated the RAC on a recent public land sale. The July sale
    brought to BLM coffers a total of \$31.7 million dollars in one-half
    hour.

-   Bob Maichle asked what the BLM Las Vegas Field Office is doing about
    a trespass issue, suggesting that the item be placed on the next
    meeting's agenda.

-   Patrick John Chicas asked for details about a proposed 800-acre land
    deal in the Kyle Canyon area. Guerrero said the field office's next
    sale is scheduled for November. Guerrero said he was unaware of any
    800-acre sale.

-   When queried by Bob Maichle, Guerrero said that Nellis Air Force
    Base did request a land exchange for safety purposes. He said the
    exchange has since dissolved and that Democratic Senator Harry Reid
    has proposed providing the Air Force with money to buy the property
    outright.

-   Guerrero said a recent Off-Highway Vehicle (OHV) race was
    successful.

-   Guerrero updated the RAC on the Tri-RAC meeting scheduled Oct.
    17-18, in Reno, Nev.

> Gene Kolkman, BLM Ely Field Manager ([see Attachment 3]{.underline}).

-   Kolkman discussed briefly the Toquop Energy Project. Kolkman
    suggested that the RAC place the exchange on a future agenda for
    discussion. A brief discussion ensued. John Hiatt suggested that the
    BLM could purchase property in the Pah Rah Range for less money that
    it would spend conducting an exchange.

-   Kolkman said that Duke Energy has reportedly declined to proceed
    with a proposed coal-fired power plant in White Pine County.

-   Kolkman discussed briefly the wind energy project proposed for
    Eureka and White Pine counties. A brief discussion ensued.

-   Kolkman said that Republican Senator John Ensign has suggested
    excluding fuel-loading reduction projects from NEPA analysis.

-   Kolkman briefly described the Pioche Fire and compared it to what
    could occur in the Mt. Wilson area. A brief discussion ensued.
    Citing the recent Parsnip Peak Fire, Hiatt asked about BLM
    suppression policies. Kolkman cited erratic fire behavior and
    limited firefighting resources (nationwide) as reason for
    suppressing the Parsnip Peak Fire. Jeff Weeks said a 350-acre fire
    is currently burning in the Clover Mountains. A brief discussion
    ensued.

-   Kolkman described briefly this summer's drought ([see Attachment
    4]{.underline}). Kolkman cited the incredible cooperation of the
    livestock industry, which this season either voluntarily did not
    turn out cattle or voluntarily retrieved cattle from the range. A
    brief discussion ensued that included as topics the Free-Roaming
    Wild Horse and Burro Act, contraceptive methods and having the
    General Accounting Office (GAO) write a report revealing the higher
    cost of delaying much-needed current actions. A brief discussion
    ensued. When asked by Ben Patterson how the BLM can manage wild
    horses without adequate funding to adequately perform the task,
    Kolkman responded that the BLM is mandated by Congress to manage the
    wild horse program. A brief discussion ensued. Kolkman noted that
    livestock grazing in the last 15 years has been significantly
    reduced. He said the livestock industry is threatened. Jim Perkins
    said individual ranchers this year have sold as many as 1,000 head
    of cattle. John Hiatt said that he's also seen some really
    "Pollyanna" plans instituted by the federal government, citing as an
    example, a Nellis plan. Hiatt suggested the agency take a hard look
    at what it can do. Steven Parker asked if, in fact, emergency
    gathers further exacerbate the problem. Kolkman suggested the
    Resource Advisory Council take a long and serious look at the wild
    horse issue.

> \- There being no further business, the meeting adjourned at 5:41 p.m.
> -
>
> APPROVED BY:
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Date
>
> Jerry Helton, Chairperson
>
> Mojave-Southern Great Basin Resource Advisory Council
>
> Minutes provided by Chris Hanefeld, BLM Ely Field Office public
> affairs specialist
>
> Attachments:

1.  Geothermal, Oil and Gas Exploration packet.

2.  Manager's Report, BLM Battle Mountain (Bill Fisher, Tonopah Field
    Manager).

3.  Manager's Report, BLM Ely Field Office (Gene Kolkman, BLM Ely Field
    Manager).

4.  Wild Horse & Drought Report (Overview, Aug. 21, 2002)