Record of Decision (ROD)/Approved RMP 195

APPENDIX H – FLUID MINERALS 

TABLE OF CONTENTS

FLUID MINERALS ........................................................................................................................................................ 197

Procedures in Oil and Gas Recovery and Operations .................................................................................................... 197

Geophysical Operations............................................................................................................................................ 197

Leasing Process ........................................................................................................................................................ 198

Permitting....................................................................................................................................................................... 199

Application For Permit To Drill..................................................................................................................................... 200

Conditions of Approval ............................................................................................................................................ 200

Construction................................................................................................................................................................... 204

Drilling Operations ........................................................................................................................................................ 205

Environment and Safety................................................................................................................................................. 206

Production and Development......................................................................................................................................... 206

Abandonment................................................................................................................................................................. 210

Regulations, Laws, And Special Procedures.................................................................................................................. 210

Unit and Communitization Agreements ................................................................................................................... 210

Split Estate................................................................................................................................................................ 211

Oil and Gas Stipulations ................................................................................................................................................ 211

Resource: Grizzly Bear – Recovery Zone ............................................................................................................... 211

Resource: Grizzly Bear -Distribution Zone ............................................................................................................. 211

Resource: Gray Wolf – Former Northwest Montana Recovery Area Endangered Population................................ 212

Resource: Prairie Dog Towns.................................................................................................................................. 212

Resource: Sage Grouse Winter/Spring Range ......................................................................................................... 212

Resource: Sage Grouse Strutting Grounds (Leks) ................................................................................................... 212

Resource: Sage Grouse Breeding Habitat................................................................................................................ 212

Resource: Wildlife Management Areas................................................................................................................... 213

Resource: Big Game Winter/Spring Range ............................................................................................................. 213

Resource: Elk Calving/Big Game Birthing Areas ................................................................................................... 213

Resource: Bighorn Sheep Yearlong Range.............................................................................................................. 213

Resource: Bighorn Sheep Core Areas...................................................................................................................... 214

Resource: Bald Eagle Nest Sites/Breeding Habitat ................................................................................................. 214

Resource: Bald Eagle Nest Sites/Breeding Habitat ................................................................................................. 214

Resource: Raptor Breeding Territories (Golden eagle, Prairie falcon, Swainson’s hawk)...................................... 214

Resource: Peregrine Falcon Nest Sites/Breeding Habitat........................................................................................ 215

Resource: Ferruginous Hawk Breeding Territories ................................................................................................. 215

Resource: Threatened, Endangered, and Special Status Species ............................................................................. 215

Resource: Westslope Cutthroat Trout Habitat (90-99% pure)................................................................................. 215

Resource: Westslope Cutthroat Trout Habitat (99-100% pure)............................................................................... 216

Resource: Fluvial and Adfluvial Arctic Grayling Habitat ....................................................................................... 216

Resource: Bull Trout................................................................................................................................................ 216

Resource: Yellowstone Cutthroat (90-100% Pure).................................................................................................. 216

Resource: Streams with High Restoration Potential For Native Fish ...................................................................... 216

Resource: Class 1 Fisheries ..................................................................................................................................... 217

Resource: Developed Recreation Sites.................................................................................................................... 217

Resource: Special Recreation Management Areas (SRMAs).................................................................................. 217

Resource: Cultural and Paleontological Resources ................................................................................................. 217

Resource: National Register of Historic Properties Eligible Properties/Districts.................................................... 218

Resource: VRM Class II, III & IV Areas ................................................................................................................ 218

Resource: Wetlands, Floodplains, Riparian Areas, and Water Quality ................................................................... 218

Resource: Special Status Plant Habitats .................................................................................................................. 219

Resource: Known or Discovered Special Status Plants or Populations................................................................... 219
Appendix H

196 Record of Decision (ROD)/Approved RMP

Resource: Municipal Watersheds ............................................................................................................................ 219

Resource: Areas or active mass wasting, unstable land areas, Slopes >30% on Non-Boulder Batholith Soils or 

Slopes >20% on Boulder Batholith Soils.................................................................................................................. 219

Resource: Continental Divide National Scenic Trail (Marysville) .......................................................................... 220

Resource: Designated National Historic Trails – Lewis and Clark Trail................................................................. 220

Resource: Recreation and Public Purposes Act Leases and Patents, and 2920 Authorizations............................... 220

Resource: Lands Acquired with Land and Water Conservation Funds (LWCF)..................................................... 220

Additional Information................................................................................................................................................... 221

Form 3100-11: Offer to Lease and Lease for Oil and Gas .................................................................................... 2202

Form 3109-1: Lease Stipulations, Bureau of Reclamation ...................................................................................... 220

Form GP-135: Resource: Special Stipulation, Bureau of Reclamaion.................................................................... 220
Record of Decision (ROD)/Approved RMP 197

FLUID MINERALS

PROCEDURES IN OIL AND GAS 

RECOVERY AND OPERATIONS

GEOPHYSICAL OPERATIONS

Oil and gas reservoirs are discovered by either direct or 

indirect exploration methods. Direct methods include 

mapping of surface geology, observing oil or gas seeps, 

and gathering information on hydrocarbon shows 

observed in drilling wells. Indirect methods include 

various types of geophysical exploration such as 

seismic, gravity, and magnetic surveys, which use 

remote data gathering techniques to delineate subsurface 

structures or lithologic changes that are not directly 

observable, but that may contain or trap oil and gas. 

Data is often acquired using equipment mounted on 

surface vehicles or aircraft. Information from 

geophysical exploration can lead oil companies or others 

to request that lands be offered for lease, or assist in the 

selection of drill sites on existing leases. However, a 

federal oil and gas lease is not required in order to 

conduct geophysical operations. Existing road systems 

are used where available. Roads may be cleared of 

vegetation and loose rocks to improve access for trucks 

if the permit allows that action. 

Blading and road construction for seismic operations are 

not usually allowed so that environmental impacts are 

minimized. In areas with rugged terrain or without 

access roads, and during certain seasons of the year, 

seismic work is conducted by helicopter rather than by 

ground vehicles. Other geophysical operations that do 

not cause additional surface disturbance include remote 

sensing, and gravity, and aeromagnetic surveying.

Geophysical Permitting Procedures and 

Regulations

Geophysical operations on and off an oil and gas lease 

are reviewed by the Federal Surface Management 

Agency (SMA), which can include the BLM, Bureau of 

Reclamation, or U.S. Forest Service (USFS). Close 

cooperation between the operator and the managing 

agency during geophysical operations minimizes surface 

impacts and protects other resources. 

Notification Process

Geophysical operations on public lands are reviewed by 

the BLM. Geophysical exploration on public lands 

requires review and approval following the procedures 

in 43 CFR Subparts 3150, 3151, and 3154. In the Butte 

Field Office, the Field Manager is authorized to approve 

geophysical operations. The responsibilities of the 

geophysical operator and the Field Manager during 

geophysical operations are described below.

Geophysical Operator

The operator is required to file a Notice of Intent to 

Conduct Oil and Gas Exploration Operations (form 

3150-4) for operations on public lands administered by 

the BLM. Maps (preferably 1:24,000 scale topographic 

maps) showing the location of the proposed lines, access 

routes and ancillary facilities must accompany the 

Notice of Intent. When the Notice of Intent is filed, the 

authorized officer may request a prework conference or 

field inspection. Special requirements or procedures that 

are identified by the authorized officer are included in 

the Terms and Conditions for Notice of Intent to 

Conduct Geophysical Exploration (form 3150-4 and a 

copy of the state requirements). Any changes in the 

original Notice of Intent must be submitted in writing to 

the authorized officer. Written approval must be secured 

before activities proceed.

Bonding of the operator is required. A copy of proof of 

satisfactory bonding shall accompany the Notice of 

Intent. Proper bonding may include a $5,000 individual, 

$25,000 statewide, or $50,000 nationwide geophysical 

exploration bond. In lieu of an exploration bond, a 

statewide or nationwide oil and gas bond may be used if 

it contains a rider for geophysical exploration. The 

operator is required to comply with applicable federal, 

state, and local laws such as Federal Land Policy and 

Management Act of 1976, the National Historic 

Preservation Act of 1966, and the Endangered Species 

Act of 1973, as amended. Earth-moving equipment shall 

not be used without prior approval. Operators may be 

required to submit an archeological evaluation and the 

agency provide NEPA documentation for cultural and 

wildlife resources if dirt work or other surface 

disturbance is contemplated, or if there is reason to 

believe that these resources may be adversely affected. 

When geophysical operations have been completed 

including any required reclamation or rehabilitation, the 

operator is required to file a Notice of Completion (form 

3150-5) including certification that all terms and

conditions of the approved Notice of Intent have been 

fulfilled. The operator must also submit a map that 

shows the actual line location, access route, and other 

survey details.

BLM Field Manager (authorized officer)

The authorized officer is required to contact the operator 

within five working days after receiving the Notice of 

Intent to explain the terms of the notice, including the 

“Terms and Conditions for Notice of Intent to Conduct 

Geophysical Exploration,” current laws, and BLMadministrative requirements. At the time of the prework 

conference or field inspection, written instructions or 

orders are given to the operator. The authorized officer 

is responsible for the examination of resource values to 
Appendix H

198 Record of Decision (ROD)/Approved RMP

determine appropriate surface protection and 

reclamation measures. Compliance inspections during 

the operation ensure that stipulations are followed. The 

authorized officer is required to make a final inspection 

following filing of the Notice of Completion. 

Compliance inspections upon completion of work ensure 

that required reclamation is properly completed. When 

reclamation is approved, obligation against the 

operator’s bond is released. The BLM has 30 days after 

receipt of the Notice of Completion to notify the 

operator whether the reclamation is satisfactory or if 

additional reclamation work is needed. Bonding liability 

will automatically terminate within 90 days after receipt 

of the Notice of Completion unless the authorized 

officer notifies the operator of the need for additional 

reclamation work.

State Standards

Geophysical operators register with the state through the 

County Clerk and Recorder’s office. State regulations 

include requirements for permitting geophysical 

activities such as shothole locations, drilling techniques, 

plugging techniques, bonding, and reclamation. 

Mitigation

When a geophysical Notice of Intent is received, 

restrictions may be placed on the application to protect 

resource values or to mitigate impacts. Many of these 

requirements may be the same as the oil and gas lease 

stipulations adopted in the RMP. Other less restrictive 

measures may be used when impacts to resource values 

will be less severe. This is due in part to the temporary 

nature of geophysical exploration. Seasonal restrictions 

may be imposed to reduce conflicts with wildlife, 

watershed damage, and hunting activity. The decisions 

concerning the level of protection required are made on 

a case-by-case basis when a Notice of Intent is received. 

LEASING PROCESS

Federal oil and gas leasing authority is found in the 1920 

Mineral Leasing Act, as amended, for public lands and 

the 1947 Acquired Lands Leasing Act, as amended, for 

acquired lands. Leasing of federal oil and gas is affected 

by other acts such as National Environmental Policy Act 

of 1969, the Wilderness Act of 1964, National Historic 

Preservation Act of 1966, the Endangered Species Act of 

1973, Federal Land Policy and Management Act of 

1976, and the Federal Onshore Oil and Gas Leasing 

Reform Act of 1987. Regulations governing federal oil 

and gas leasing are contained in 43 CFR Part 3100 with 

additional requirements and clarification found in 

Onshore Operating Orders and Washington office 

manuals, handbooks and instruction memorandums.

The 1920 Mineral Leasing Act provides that all public 

lands are open to oil and gas leasing unless a specific 

order has been issued to close an area. Leasing 

procedures for oil, conventional gas, and coal bed 

natural gas are the same.

The lease grants the right to explore, extract, remove, 

and dispose of oil and gas deposits that may be found in 

the leased lands. The lessee may exercise the rights 

conveyed by the lease subject to the lease terms and 

attached stipulations, if any.

Lease rights may be subject to lease stipulations and 

permit approval requirements. Stipulations and permit 

requirements describe how lease rights are modified. 

Lease constraints or requirements may also be applied to 

applications for permit to drill on existing leases 

provided the constraints or requirements are within the 

authority reserved by the terms and conditions of the 

lease. The stipulations and conditions of approval must 

be in accordance with laws, regulations, and lease terms. 

The lease stipulations and permit conditions of approval 

allow for management of federal oil and gas resources in 

concert with other resources and land uses. The BLM 

planning process is the mechanism used to evaluate and 

determine where and how federal oil and gas resources 

will be made available for leasing. In areas where oil and 

gas development may conflict with other resources, the 

areas may be closed to leasing. Areas where oil and gas 

development could coexist with other land uses or 

resources will be open to leasing. Leases in these areas 

will be issued with standard lease terms or with added 

stipulations based upon decisions in the land use 

document. Added stipulations are a part of the lease only 

when environmental and planning records demonstrate 

the necessity for the stipulations (modifications of the 

lease).

Currently, leases are issued as either competitive leases 

or noncompetitive leases with 10-year terms. 

Competitive leases will be sold to the highest qualified 

bidder at oral auctions that are held at least quarterly. 

Tracts that receive no bid at the sale are available for the 

filing of noncompetitive offers for two years following 

the sale. All offers filed the day after the sale (referred to 

as day-after-the-sale filings) are considered 

simultaneously filed. This means that if there is more 

than one offer filed for a specific parcel the day after the 

sale, a drawing must be held to determine the priority on 

multiple offers. Noncompetitive offers filed after that 

time are on a first-come first-served basis. If there are no 

offers filed for a parcel for the two-year period after the 

sale, the lands must be nominated again for competitive 

leasing. Rental payments for these leases will be $1.50 

per acre for the first 5 years and $2.00 per acre thereafter 

until production is established. If the lessee establishes 

hydrocarbon production, the leases can be held for as 

long as oil or gas is produced. The royalty rate for leases 

issued following the 1987 Oil and Gas Leasing Reform 

Act is 12-1/2 percent one-half of which is returned to the 

State of Montana on public domain lands (not acquired 

lands). Minimum royalty is the same amount as the 

rental. Future interest leases are available for entire or 

fractional mineral estates that have not reverted to 

federal ownership. These are minerals that are reserved 
Fluid Minerals

Record of Decision (ROD)/Approved RMP 199

by the grantor for a specific period of time in warranty 

deeds to the United States. Any future interest leases 

may be obtained only through the competitive bidding 

process and are made effective the date of vesting of the 

minerals with the United States.

Resource Management Plan 

Maintenance

New information may lead to changes in existing 

resource inventories. New use areas and resource 

locations may be identified or use areas and resource 

locations that are no longer valid may be identified. 

These resources usually cover small areas requiring the 

same protection or mitigation as identified in this plan. 

Identification of new areas or removal of old areas that 

no longer have those resource values will result in the 

use of the same lease stipulation identified in this plan. 

These areas will be added to the existing data inventory 

without a plan amendment. In cases where the changes 

constitute a change in resource allocation outside the 

scope of this plan, a plan amendment would be required.

Lease Stipulations

Certain resources in the planning area require protection 

from impacts associated with oil and gas activities. The 

specific resource and the method of protection are 

contained in lease stipulations. Lease stipulations are 

usually no surface occupancy, controlled surface use, or 

timing limitation. A notice may also be included with a 

lease to provide guidance regarding resources or land 

uses. While the actual wording of the stipulations may 

be adjusted at the time of leasing, the protection 

standards described will be maintained.

Controlled Surface Use

Use or occupancy is allowed (unless restricted by 

another stipulation), but identified resource values 

require special operational constraints that may modify 

the lease rights. Controlled surface use is used for 

operating guidance, not as a substitute for the no surface 

occupancy or timing stipulations.

No Surface Occupancy (NSO)

Use or occupancy of the land surface for fluid mineral 

exploration or development is prohibited in order to 

protect identified resource values. The no surface 

occupancy stipulation includes stipulations which may 

have been worded as No Surface Use and Occupancy,” 

“No Surface Disturbance,” “Conditional No Surface 

Occupancy,” and “Surface Disturbance or Occupancy 

Restriction (by location).”

Timing Limitation (Seasonal Restriction)

Prohibits surface use during specified times to protect 

identified resource values. This stipulation does not 

apply to the operation and maintenance of production 

facilities unless the findings of analysis demonstrate the 

continued need for such mitigation and that less 

stringent, project-specific mitigation measures would be 

insufficient.

Waivers, Exceptions, Modifications

Lessees must honor lease stipulations when an 

Application for Permit to Drill or other surface 

disturbing operations are proposed to explore and 

develop a lease, unless the BLM grants a waiver, 

exception, or modification to a lease stipulation. This 

RMP establishes the guidelines by which future waivers, 

exceptions, or modifications are granted within the Butte 

Field Office. Substantial modification or waiver is 

subsequent to lease issuance is subject to public review 

for at least a 30-day period.

Exception: A case-by case exemption from a lease 

stipulation. The stipulation continues to apply to all 

other sites within the leasehold to which the restrictive 

criteria apply.

Modification: Fundamental changes to the provisions 

of a lease stipulation, either temporarily of for the term 

of the lease. Therefore, a modification may include an 

exemption from or alteration to a stipulated requirement. 

Depending on the specific modification, the stipulation 

may or may not apply to all other sites within the 

leasehold to which the restrictive criteria apply. 

Waiver: Permanent exemption from a lease stipulation. 

The stipulation no longer applies anywhere within the 

leasehold. 

PERMITTING

A federal lessee or operator is governed by procedures 

set forth in the Code of Federal Regulations at 43 CFR 

Part 3160, Onshore Oil and Gas Order No. 1, “Approval 

of Operations on Onshore Federal and Indian Oil I and 

Gas Leases,” issued under 43 Code of Federal 

Regulations (CFR) 3164 and other orders and notices. 

The lessee may conduct lease operations after lease 

issuance. However, proposed drilling and associated 

activities must be approved in advance before beginning 

operations. Therefore, before beginning construction or 

the drilling of a well, the lessee or operator must file an 

Application for Permit to Drill (APD) with the BLM 

Great Falls Oil and Gas Field Station. A copy of the 

application will be posted in the Field Station and Butte 

Field Office, and if applicable, in the office of the 

Surface Management Agency (SMA) for a minimum of 

30 days for review by the public. After 30 days, the 

application can be approved in accordance with (a) lease 

stipulations, (b) Onshore Oil and Gas Orders, and (c) 

Onshore Oil and Gas regulations (43 CFR Part 3160) if 

it is administratively and technically complete.

Evidence of bond coverage for lease operations must be 

submitted with the application. Bond amount must not 
Appendix H

200 Record of Decision (ROD)/Approved RMP

be less than a $10,000.00 lease bond, a $25,000.00 

statewide bond or a $150,000.00 nationwide bond.

Pre-drill on-site inspections will be conducted for all 

wells. The inspection makes possible selection of the 

most feasible well site and access road from 

environmental, geological, and engineering points of 

view. The purpose of the field inspection is to evaluate 

the operator's plan, assess the situation for possible 

impacts, and to formulate resource protection 

stipulations. Surface use and reclamation requirements 

are developed during the on-site inspection that is 

usually conducted within 15 days after receipt of the 

Notice of Staking (NOS) or APD. For operations 

proposed on privately-owned surface, if the operator 

after a good-faith effort is unable to reach an agreement 

with the private surface owner, the operator must post a 

bond to cover loss of crops and damages to tangible 

improvements prior to approval of the APD.

Normally, site-specific mitigations in the form of 

conditions of approval are added to the APD for 

protection of surface and subsurface (including 

groundwater) resource values in the vicinity of the 

proposed activity. The BLM is responsible for preparing 

environmental documentation necessary to satisfy the 

National Environmental Policy Act (NEPA) 

requirements and provide any mitigation measures 

needed to protect the affected resource values.

Conditions of approval implement the lease stipulations 

and are part of the permit when environmental and field 

reviews demonstrate the necessity for operating 

constraints or requirements. A surface restoration plan is 

part of an approved permit, either an APD or Sundry 

Notice that includes other surface-disturbing activities. 

The authorized officer will act on the application in one 

of two ways:

Within 30 days after the operator has submitted a 

complete application including incorporating any 

changes that resulted from the onsite inspection the 

BLM will: 

(1) approve the application subject to reasonable 

conditions of approval if the requirements of the 

National Environmental Policy Act (NEPA), National 

Historic Preservation Act (NHPA), Endangered Species 

Act (ESA), or other applicable law have been completed 

and, if on FS lands, FS has approved the Surface Use 

Plan of Operations; or

(2) notify the operator that it is deferring action on the 

permit. The notice of deferral must specify:

(a) any action the operator could take that would enable 

BLM to issue a final decision on the application, with FS 

concurrence if appropriate. Actions may include but are 

not limited to; assistance with data gathering or 

assistance with preparation of analyses and documents;

(b) and if necessary, a list of actions that BLM or the FS, 

if appropriate, need to take, including completing 

requirements of NEPA or other applicable law and a 

schedule for completing these actions. 

The operator has 2 years from the date of the notice of 

deferral to take the action specified in the notice. If all 

analyses required by NEPA, NHPA, ESA and other 

applicable laws have been prepared, BLM and with FS 

concurrence, if appropriate, shall make a decision on the 

permit within 10 days of receiving a report from the 

operator addressing all of the issues or actions specified 

in the deferral notice and certifying that all required 

actions have been taken. If the operator has not 

completed the actions specified in the notice, BLM may 

deny the permit at any time later than 2 years from the 

operator’s receipt of the deferral notice.”

For drilling operations on lands with state or private 

mineral ownership, the lessee must meet the 

requirements of the mineral owner and the state 

regulatory agency. The BLM does not have jurisdiction 

over nonfederal minerals; however, the BLM has surface 

management responsibility in situations of BLM surface 

over nonfederal mineral ownership.

When final approval is given by the BLM, the operator 

may begin construction and drilling operations. 

Approval of an APD is valid for one year. If 

construction does not begin within one year, the permit 

must be reviewed prior to approving another APD.

A Sundry Notice is used to approve other surface and 

subsurface lease operations. When a well is no longer 

useful, the well is plugged and the surface reclaimed. A 

Sundry Notice is also used to approve well plugging and 

reclamation operations, although verbal approval for 

plugging may be given for a well that was drilled but not 

completed for production. 

The period of bond liability is terminated after all wells 

covered by the bond are properly plugged and the 

surface reclaimed. The lands may then become available 

for future leasing.

APPLICATION FOR PERMIT TO 

DRILL 

Applications for Permit to Drill are approved for the 

Butte Field Office by the supervisor of the Great Falls 

Oil and Gas Field Station. The approved APD includes 

Conditions of Approval, and Informational Notices that 

cite the regulatory requirements from the Code of 

Federal Regulations, Onshore Operating Orders and 

other guidance.

CONDITIONS OF APPROVAL

Conditions of approval are mitigation measures that 

implement restrictions in light of site-specific 

conditions. General guidance for conditions of approval 

and surface operating standards is found in the BLM and 

USFS brochure entitled “Surface Operating Standards 

for Oil and Gas Exploration and Development” (USDI, 
Fluid Minerals

Record of Decision (ROD)/Approved RMP 201

BLM1989c) and BLM Manual 9113 entitled “Roads”. 

The BLM commonly applies best management practices 

when approving APDs. The sources of many of these 

may be found in RMP Appendix D at page 4.

The following mitigation measures may be applied to 

approved permits to drill as conditions of approval. The 

listing is not all-inclusive, but presents some possible 

conditions of approval that may be used in the planning 

area. The wording of the condition of approval may be 

modified or additional conditions of approval may be 

developed to address specific conditions. 

In addition to the best management practices identified 

in Appendix D, the BLM will also develop site-specific 

practices on a case-by-case basis as needed.

Surface Conditions

a) The access road on the BLM surface will not be 

bladed unless prior BLM approval is obtained. 

b) The operator will be responsible for weed control on 

the access road, well location, and pipeline for the 

life of the well. 

c) The operator will clean the undercarriage of all rigs 

prior to entering onto the leasehold to reduce the 

chances for noxious weed infestations. 

d) Topsoil is to be removed and stockpiled. Operator 

will be required to cover the topsoil pile to prevent 

the loss of topsoil to wind erosion. Operator must 

cover the topsoil with a biodegradable mesh fabric 

that allows water and air to circulate through the 

topsoil. Operator cannot cover the topsoil with any 

type of impermeable fabric. Operator will be 

responsible for weed control on the topsoil 

stockpile. 

e) Avoid constructing reserve pits in natural 

watercourses or areas of shallow groundwater. 

Water courses include lake beds, gullies, draws, 

streambeds, washes, arroyos, or channels that are 

delineated on a 1:24,000 USGS quadrangle map or 

have a hydrologic connection to streams, rivers, or 

lakes. The reserve pit should normally be located 

entirely in cut material. The preferred method of 

reserve pit construction on steeply sloping sites is to 

locate the pit on the drill pad next to the high wall. 

The pits are constructed totally in cut at such 

locations. If this is not possible, at least 50 percent 

of the reserve pit should be constructed below 

original ground level to help prevent failure of the 

pit dike. Fill dikes should be properly compacted in 

lifts. The necessary degree of compaction depends 

on soil texture and moisture content. The pit should 

be designed to contain all anticipated drilling muds, 

cuttings, fracture fluids, and precipitation while 

maintaining at least 2 feet of freeboard. Pits 

improperly constructed on slopes or poor soil types 

may leak along the plane between the natural 

ground level and the fill. There is a significant 

potential for pit failure in these situations. When 

constructing dikes for pits or impoundments with 

fill embankment, a keyway or core trench should be 

excavated to a minimum depth of 2 to 3 feet below 

the original ground level. The core of the 

embankment can then be constructed with 

compacted, water-impervious material. 

f) Containment structures sufficiently impervious to 

prevent a discharge to waters of the US, such as 

containment dikes, containment walls, drip pans, or 

equivalent protection actions are to be constructed 

and maintained around all qualifying bulk oil 

storage facilities, including tank batteries, 

consistent with the Environmental Protection 

Agency’s Spill Prevention, Control, and 

Countermeasure (SPCC) regulation (40 CFR 112). 

The containment structure must have sufficient 

volume to contain, at a minimum, the content of the 

largest storage tank containing liquid hydrocarbons 

within the facility/battery and sufficient freeboard to 

contain precipitation, unless more stringent 

protective requirements are deemed necessary by 

the authorized officer. Containment dikes are not to 

be constructed with topsoil or coarse, insufficiently 

impervious spoil material. Containment is strongly 

suggested for produced water tanks. Chemicals 

should be placed within secondary containment and 

stored so that the containers are not in contact with 

soil or standing water and product and hazard labels 

are not exposed to weathering.

g) Rehabilitation of upland sites following disturbance 

would use the plant species listed in Table 1 for 

seeding. The species used for rehabilitation would 

vary depending on the adjacent habitat conditions, 

site potential, soils, and precipitation. Species not in 

the following list could be added if site conditions 

warrant, species availability changes or if there are 

large acreages are involved. 

h) All permanent structures will be painted the neutral 

color of Sand Beige (5Y 6/3), Desert Brown (10YR 

6/3), Carlsbad Canyon (2.5Y 6/2) or Slate Gray (5Y 

6/1) as displayed in the Standard Environmental 

Color chart (available at the BLM office) or other 

acceptable color approved by the authorized officer 

to blend in with the surrounding landscape. 

i) If the well is a dry hole, Operator will be required to 

fence the entire disturbed area of the location to 

allow the seedlings and vegetation to re-establish. 

This fencing must be stock tight and must remain in 

place until the BLM requests otherwise. 

j) The Operator will be responsible for control of 

noxious weeds occurring as a result of lease 

operations. The Surface Management Agency will

be responsible for approval of weed control 

programs. 

k) Prior to the use of herbicides on public land, the 

applicant will have to obtain from the BLM 

authorized officer written approval of a plan 
Appendix H

202 Record of Decision (ROD)/Approved RMP

showing the type and quantity of material to be 

used, weed(s) to be controlled, method of 

application, location of storage and disposal of 

containers and any other pertinent information 

deemed necessary by the authorized officer. 

Operators must monitor disturbed areas annually 

from June through August for the presence of 

noxious weeds. Monitoring must begin prior to 

disturbance. 

l) Within the Distribution Zone of grizzly bears, food 

storage regulations will be followed to minimize 

bear-human conflicts. Proper food storage is 

essential to successful human-bear management. 

“Food” includes actual food, trash, recyclables, 

toiletries, cosmetics, first aid kits, pet food, 

sunscreen, baby wipes, scented tissue, beverage 

cans and bottles, canned food, mosquito repellant, 

tobacco products, and any related items with a 

scent. All food items, garbage, beverages, coolers, 

stoves, grills, cooking utensils, food containers, and 

pet food not in immediate use (day or night) must 

stored in Bear Resistant Containers (BRC), stored in 

a closed vehicle constructed of solid, nonpliable 

material or be hung from food poles where provided 

or limbs of trees. Food items must be hung 10 feet 

clear of the ground at all points and 4 feet 

horizontally from any supporting tree or pole. 

Camps and job sites must be clean at all times. No 

garbage will be burned or buried. All garbage will 

be removed from the site.

m) Operator road use activities on BLM lands must 

conform to existing travel plans.

Downhole Conditions

a) Surface casing shall have centralizers on each of the 

bottom three joints and shall be cemented back to 

surface.

b) BOP system shall be consistent with Onshore Oil 

and Gas Order No. 2, 2M system. 

c) The operator shall obtain verbal approval prior to 

initiating side-tracking operations. At the time of 

Table 1

Rehabilitation Species List

Common Name Scientific Name 4 Code 6 Code

12 to 14 inch precipitation zone

Western Wheatgrass Pascopyrum smithii PASM PASSMI

Bluebunch Wheatgrass Pseudoroegneria spicata PSSP6 PSESPI

Thickspike Wheatgrass Elymus macrourus ELMA7 ARGDAS

Slender Wheatgrass Elymus trachycaulus ELTR7 ELYTRA

Green Needlegrass Nassella viridula NAVI4 STIVIR

Needle And Thread Hesperostipa comata HECO26 STICOM

Blue Flax Linum perenne LIPE2 LINPER

Scarlet Globemallow Sphaeralcea coccinea SPCO SPHCOC

Silky Lupine Lupinus sericeus LESE4 LUPSER

Wyoming Big Sage Artemisia tridentate ARTRW8 ARTTRIW

Woods' Rose Rosa woodsii ROWO ROSWOO

15 to 19 inch precipitation zone

Basin Wildrye Leymus cinereus LECI4 LEYCIN

Bluebunch Wheatgrass Pseudoroegneria spicata PSSP6 PSESPI

Slender Wheatgrass Elymus trachycaulus ELTR7 ELYTRA

Idaho Fescue Festuca idahoensis FEID FESIDA

Sheep Fescue Festuca ovina FEOV FESOVI

Sandberg Bluegrass Poa secunda POSE POASEC

Blue Flax Linum perenne LIPE2 LINPER

Silky Lupine Lupinus sericeus DESE4 LUPSER

Wyoming Big Sage Artemisia tridentate ARTRV ARTTRIV

Woods' Rose Rosa woodsii ROWO ROSWOO
Fluid Minerals

Record of Decision (ROD)/Approved RMP 203

approval, the operator must identify the proposed 

azimuth, kick-off point, inclination rate (angle build 

rate), and the estimated closure or horizontal length 

to be drilled. All wellbore paths, i.e. different 

orientations of bottom hole locations, require prior 

approval. 

d) The operator shall have sufficient weighting 

materials and loss circulation materials on location 

in the event of a pressure kick or in the event of loss 

circulation. 

Informational Notice

a) Approval of this APD does not warrant or certify 

that the applicant holds legal or equitable title to 

those rights in the subject lease, which would entitle 

the applicant to conduct operations thereon.

b) The lessee shall comply with applicable laws and 

regulation; with the lease terms, Onshore Oil and 

Gas Orders; NTL’s; and with other orders and 

instructions of the authorized officer.

c) A complete copy of the approved APD must be on 

the well site and available for reference during the 

construction and drilling phase. 

d) Any deviation from the terms of this APD requires 

prior approval.

e) This drilling permit is valid for either 1 year from 

the approval date or until lease expiration, 

whichever occurs first.

f) Each drilling, producing, or abandoned well shall be 

identified with the operator’s name, the lease serial 

number, the well number, and the surveyed 

description of the well (footages or the quarter 

section, the section, township, and range). All 

markings must be legible, and in a conspicuous 

place.

Notification Requirements

a) Notify this office at least 12 hours before beginning 

dirt work*.

b) Notify this office verbally at least 6 hours before the 

well is spudded.

c) Notify this office verbally at least 6 hours prior to 

running/cementing casing.

d) Notify this office verbally at least 6 hours prior to 

conducting BOP tests.

e) Notify this office at least 6 hours prior to plugging 

for verbal plugging orders.

f) BLM Representative – Great Falls Field Station 

Office Telephone No. (406) 791-7700: 

g) After hours and weekend contacts are:

i. Petroleum Engineer Technician

ii. Petroleum Engineer

iii. Environmental Specialist

iv. Field Station Supervisor

Plugging Requirements

a) Prior approval for abandonment must be obtained. 

Initial approval for abandonment during drilling 

operations may be verbal but must be followed by 

written notification on Form 3160-5, in triplicate.

b) Upon completion of the approved plugging, the 

operator will cut the casing off four feet below 

reclaimed ground level and a 1⁄4” x 12” x 12” plate 

(with a 1⁄8” weep hole) shall be welded onto a fitting 

to be screwed into a collar either welded or screwed 

to the production casing. The standard 

aboveground dry hole marker is accordance with 

43 CFR 3162.6(d) has been waived by the Great 

Falls Field Station. Pits must be fenced until dry or 

pumped and then filled in and recontoured unless 

otherwise approved by the Field Station Supervisor.

c) The following minimum information shall be 

permanently placed on the plate: "Fed" or "Ind" as 

applicable; "Lease Number, Operator, Well 

Number, and Location by quarter/quarter, Section, 

Township, and Range."

Reports and Notifications

a) All submitted information not marked 

“CONFIDENTIAL INFORMATION” is subject to 

public disclosure in accordance with 43 CFR 

3100.4. 

b) Production Startup Notification is required not later 

than the 5th business day after any well begins 

production on which royalty is due anywhere on a 

lease site or allocated to a lease site, or resumes 

production in the case of a well which has been off 

production for more than 90 days, the operator shall 

notify the authorized officer by letter or sundry 

notice, Form 3160-5, or orally to be followed by a 

letter or sundry notice, of the date on which such 

production has begun or resumed.

Hazardous Materials

a) Operators and their contractors are to ensure all 

production, use, storage, transport, and disposal of 

hazardous materials resulting from the proposed 

project is in accordance with all applicable Federal, 

State and local laws, regulations and guidelines, 

existing or hereafter enacted or promulgated that 

effect the management of hazardous material, as 

defined in this paragraph. Hazardous material 

means any substance, pollutant, or contaminant 

listed as a hazardous substance under the 

Comprehensive Environmental Response, 

Compensation and Liability Act (CERCLA) of 

1980, as amended, 42 USC 9601 et seq., and its 

regulations (found at 40 CFR 302). The definition 

of hazardous substances under CERCLA includes 

“hazardous waste” defined in the Resource 

Conservation and Recovery Act (RCRA) of 1976, 

as amended, 42 USC 6901 et seq., and its 
Appendix H

204 Record of Decision (ROD)/Approved RMP

regulations. The term also includes any extremely 

hazardous substances defined by 40 CFR 355 and 

any nuclear or byproduct material defined by the 

Atomic Energy Act of 1954, as amended, 42 USC 

2011 ET seq. The term does not include petroleum, 

including crude oil or any fraction thereof not 

otherwise listed or designated as a hazardous 

substance under CERCLA section 101 (14), 42 USC 

9601 (14), or natural gas.

b) Only drilling mud, drilling fluids, cuttings, native 

soils, cementing materials and/or approved pit 

solidifying materials will be placed in the reserve or 

working pits.

c) Nonexempt wastes will not be mixed with exempt 

wastes.

Environmental Obligations and Disposal 

of Produced Water

a) The Operator is required to take all necessary steps 

to prevent any death of a migratory bird in pits or 

open vessels associated with the drilling, testing, 

completion, or production of this well. The death of 

any migratory bird found in such a pit or open 

vessel is a violation of the Migratory Bird Treaty 

Act and is considered a criminal act. Any deaths of 

migratory birds attributable to pits or open vessels 

associated with drilling, testing, completing, or 

production operations must be reported to this office 

and the United States Fish and Wildlife Service 

within 24 hours.

b) The BLM may require that the pit be designed or 

the open vessel be covered to deter the entry of 

birds in any facility associated with drilling, testing, 

completing, or production of this well. Fencing, 

screening, and netting of pits may be required as a 

means to deter bird entry. These conditions would

most likely be imposed to prevent the entry of 

migratory birds if oil is left in pits or open vessels 

after the cessation of drilling or completion 

operations, if water disposal pits consistently 

receive oil, or if pits or open vessels are used 

repeatedly for emergency situations which result in 

the accumulation of oil.

c) Voluntary pit fencing, screening, and netting, or 

sealing vessels is encouraged thus avoiding 

potential instances that may result in the death of a 

migratory bird.

d) With BLM approval, water produced from newly 

completed wells may be temporarily disposed of 

into unlined pits for up to 90 days. During this 

initial period, application for the permanent disposal 

method must be made in accordance with Onshore 

Order No. 7.

Paleontological/Cultural Stipulations

Paleontological and archaeological field checks by BLM 

personnel or other authorized personnel will occur prior 

to disturbance as deemed appropriate by the BLM. A 

BLM-approved archaeologist or paleontologist will 

conduct monitoring during surface-disturbing activities. 

Paleontological or cultural resource sites will be avoided 

or mitigated as necessary prior to disturbance. Any 

cultural or paleontological resource discovered by an 

operator or any person working on his/her behalf will be 

reported immediately to the BLM, and all operations that 

may further disturb such resources will be suspended 

until written authorization to proceed is issued by the 

BLM authorizing officer. An evaluation of the discovery 

will be made by the BLM to determine appropriate 

actions to prevent the loss of significant resources. 

CONSTRUCTION

Construction of the access road and the well site is 

necessary before drilling operations begin. The extent of 

surface disturbance necessary for construction depends 

on the terrain, depth of the well, drill rig size, circulating 

system, and safety standards.

The depth of the drill test determines the size of drill rig 

needed, and therefore, the size of the work area 

necessary, the need for all-weather roads, water 

requirements, and other needs. The terrain influences the 

construction problems and the amount of surface area to 

be disturbed. Reserve pit size may vary because of well 

depth, drill rig size, or circulating system.

Access roads to well sites in the planning area usually 

consist of running surfaces 14 to 24 feet wide that are 

ditched on one or both sides. Many of the roads 

constructed will follow existing roads or trails. New 

roads might be necessary because existing roads are not 

at an acceptable standard. For example, a road may be 

too steep so that realignment is necessary.

Roads can be permanent or temporary, depending on the 

success of the well. The initial construction can be for a 

temporary road; however, it is designed so that it can 

become permanent if the well produces. Not all 

temporary roads constructed are immediately 

rehabilitated when the drilling stops. A temporary road 

is often used as access to other drill sites. The main 

roads and temporary roads require graveling to be 

maintained as all-weather roads. This is especially 

important in the spring. Access roads may be required to 

cross public lands to a well site located on private or 

state lands. The portion of the access road on public land 

would require a BLM right-of-way.

The amount of level surface required for safely 

assembling and operating a drilling rig varies with the 

type of rig, but averages 300 feet by 400 feet. 

Approximately 3-1/2 acres would be impacted by well 

site construction. The area is cleared of large vegetation, 

boulders, or debris. Then the topsoil is removed and 

saved for reclamation. A level area is then constructed 

for the well site, which includes the reserve pit. 
Fluid Minerals

Record of Decision (ROD)/Approved RMP 205

Bulldozers and motor scrapers are typically used to 

construct the well pad. The well pad is flat (to 

accommodate the drill rig and support equipment) and 

large enough to store all the equipment and supplies 

without restricting safe work areas. The drill rig must be 

placed on “cut” material rather than on “fill” material to 

provide a stable foundation for the rig. The degree of

cutting and filling depends on terrain; that is, the flatter 

the site, the less dirt work is required.

Hillside locations are common, and the amount of dirt 

work varies with the steepness. A typical well pad will 

require a cut 10 feet deep against the hill and a fill 8 feet 

high on the outside. It is normal to have more cut than 

fill to allow for compaction, and any excess material is 

then stockpiled. Eventually, when the well is plugged 

and abandoned, excavated material is put back in its 

original place.

Reserve pits are normally constructed on the well pad. 

Usually the reserve pit is excavated in “cut” material on 

the well pad. The reserve pit is designed to hold water, 

drill cuttings, and used drilling fluids. Generally, reserve 

pits are rectangular in shape and 8 to 12 feet deep, 

however, the size and number of pits depends on the 

depth of the well, circulating system and anticipated 

down hole problems, such as excess water flows. The 

reserve pit can be lined with a synthetic liner to contain 

pit contents and reduce pit seepage. Not all reserve pits 

are lined; however, BLM can require a synthetic liner 

based upon factors such as soils, pit locations, ground 

water, and drilling mud constituents. The operator can 

elect to line the reserve pit without that requirement. Pits 

may be divided into compartments separated by berms 

for the proper management of derived waste (e.g., drill 

cuttings, mud, water flows).

An adequate supply of water is required for drilling 

operations and other uses. During drilling operations, 

water is continually transported to the rig location. 

Approximately 1,680,000 gallons of water are required 

to drill an oil or gas well to the depth of 9,000 feet. The 

sources of water can be a water well at the drill site or 

remote sources such as streams, ponds, or wells. The 

water is transported to the site by truck or pipeline. 

Pipelines are normally small diameter surface lines. The 

operator must file for and obtain all necessary permits 

for water from the state of Montana. On public lands, an 

operator must have the BLM’s permission before surface 

water can be used. 

DRILLING OPERATIONS

Starting to drill is called “spudding in” the well. Initially, 

drilling proceeds rapidly due to the presence of 

unconsolidated or shallow, poorly consolidated rock 

formations. Drilling is accomplished by rotating special 

bits under pressure at the end of drill pipe (string) 

extended down the hole as it advances. While drilling, 

the rig derrick and associated hoisting equipment bear 

most of the drill pipe (string) weight. The weight on the 

bit is generally a small fraction of the total drill string 

weight. The combination of rotary motion and weight on 

the bit causes rock to be chipped away at the bottom of 

the hole. 

Drilling fluid or mud is circulated through the drill pipe 

to the bottom of the hole, through the bit, up the bore of 

the well, and finally to the surface. When the mud 

emerges from the hole, it goes through equipment used 

to screen and remove rock chips and sand-size solids. 

When the solids have been removed, the mud is placed 

into holding tanks and from the tanks it is pumped back 

into the well. The mud is maintained at a specific weight 

and viscosity to cool the bit, seal off any porous zones 

(protect aquifers or prevent damage to producing zone 

productivity), subsurface pressure control, lubrication of 

the drill string, clean the bottom of the hole, and bring 

the rock chips to the surface.

There are three common types of drilling fluids: waterbased, oil-based, and synthetic. Water-based muds are 

the most common and are largely made up of water and 

bentonite, clay that has special properties used to 

maintain proper viscosity and other properties over a 

wide range of drilling conditions. Oil-based mud is used 

for subsurface conditions where water may react with 

shale and cause caving and sloughing of the sides of the 

well bore. Synthetic drilling fluids are used for special 

conditions and have become more common in recent 

years. They are composed of organic polymers or other 

chemicals and are often designed to be environmentally 

benign. Additives are used to maintain the drilling mud 

properties for specific conditions that may be 

encountered during drilling. 

As drilling progresses for a vertical well, pipe or casing 

is placed as a liner in the hole. Casing consists of steel 

pipe that is placed into the hole to prevent the collapse of 

the hole, to protect aquifers, and to isolate producing 

zones from other formations. Several strings of casing, 

that have different purposes, may be placed into the 

well. The first string of pipe is the conductor pipe, which 

stabilizes the hole near the surface. The second string of 

pipe placed in the hole is for surface casing, which is set 

deep enough to reach a competent rock below the 

deepest usable freshwater aquifer.

The surface casing is set and cemented in the hole by 

pumping cement between the casing and the well bore 

wall. Surface casing acts as a safety device to protect 

freshwater zones from drilling fluid contamination. To 

prevent the well from “blowing-out” in the event the 

drill bit hits a high-pressure zone, blowout preventers are 

mounted on top of the surface casing. If high-pressure 

zones are encountered that cannot be controlled with 

weighting using mud additives (drilling fluids are the 

first line of defense against a blowout), the blowout 

preventers can be closed through a system of 

hydraulically activated valves and manifolds to 
Appendix H

206 Record of Decision (ROD)/Approved RMP

effectively seal the well and prevent the uncontrolled 

flow of fluids.

After the surface casing is set, a smaller drill bit that fits 

inside the surface casing is installed and drilling 

resumes. Depending on well conditions, additional 

strings of casing called intermediate casing may be 

installed and cemented into place. Conditions resulting 

in the need for intermediate casing include freshwater 

zones and sloughing formation zones. Casing prevents 

the flow of freshwater into the wellbore, and conversely 

prevents drilling fluids from infiltrating porous 

formations with low internal pressures. Casing also 

prevents mixing of waters from different formations 

(interformational mixing) where water within the 

formations is of differing quality.

All cementing operation plans are reviewed to assure 

cement is placed at the appropriate depths and a 

sufficient quantity is utilized to effectively seal all 

freshwater-bearing formations from contamination by 

interformational mixing or migration of fluids.

Drilling operations are continuous, 24 hours a day, 7 

days a week. There are three 8-hour or two 12- hour 

shifts a day. Pickups or cars are used for workers' 

transportation to and from the location. 

If no oil or gas is encountered, the well is called a “dry 

hole” and it is plugged with cement and abandoned in 

accordance with state and federal requirements. The drill 

site and access roads are rehabilitated according to 

stipulations and conditions attached to the approved 

APD and the drilling equipment is moved to another 

location.

If the well is a producer, casing is set and cemented in 

place.

Directional drilling may be used where the drill site 

cannot be located directly over the drilling target. There 

are limits to both the degree that the well bore can be 

deviated from the vertical and the horizontal distance the 

well can be drilled away from the well site.

Horizontal wells are drilled similarly to directional 

wells, except that the bottomhole location of the well is 

not a single point, but rather a lateral horizontal section. 

They are drilled to increase the recovery oil and gas 

reserves from vertically fractured reservoirs, or 

reservoirs with directional permeability.

ENVIRONMENT AND SAFETY

During drilling and production operations for any well 

the BLM will enforce the provisions of the regulations, 

Onshore Oil and Gas Operating Orders, and Notice to 

Lessees NTL-MSO-1-92, Report of Undesirable Events, 

to ensure operations are carried in a manner that protects 

the mineral resources, other natural resources, and 

environmental quality. Regulations at 43 CFR § 3162.5 

require that the operator exercise due care and diligence 

to assure that leasehold operations do not result in undue 

damage to surface or subsurface resources or surface 

improvements. All produced water must be disposed of 

by methods approved by the BLM. Upon completion of 

operations the operator shall reclaim the surface in a 

manner approved of by the BLM. All spills or leakages 

of oil, gas, produced water, toxic liquids, blowouts, fires, 

personal injuries, and fatalities must be reported by the 

operator. The operator is required to exercise care in 

taking measures approved by the BLM to control and 

remove pollutants and extinguish fires. An operator’s 

compliance with the regulations at 43 CFR § 3162.5 

does not relieve him of the obligation to comply with 

any other law or regulations. Finally, the regulations 

authorize the BLM to require an operator to file a 

contingency plan describing procedures to be 

implemented to protect life, property, and the 

environment.

PRODUCTION AND

DEVELOPMENT

Production

Production begins when a well yields oil or gas in 

commercial quantities. If formation pressure is sufficient 

to raise oil to the surface, the well is completed as a 

flowing well. A pumping unit is installed if the 

formation pressure is not sufficient to bring the oil to the 

surface.

When the well is completed as a free-flowing well, an 

assembly of valves and special connections known as a 

“Christmas tree” (so called because of its many branchlike fittings) is installed on top of the casing to regulate 

the flow of the well. Later, when the natural pressure 

declines, the Christmas tree can give way to a simple 

wellhead arrangement of valves and a pumping unit to 

lift the oil artificially. Many pumping units are “beam” 

style pumps that are powered by electric motors or 

gasoline engines. Most gas wells produce by natural 

flow and do not require pumping. Surface facilities at a 

flowing well are usually in a small area containing a gas 

well Christmas tree, a dehydrator, a produced water pit, 

and a meter house. Separators, condensate tanks, and 

compressors may be included. Some gas wells require 

continuous water pumping as water entering the well 

chokes off the gas flow.

Development

New field development may be analyzed under NEPA 

by means of an environmental assessment (EA) or 

environmental impact statement (EIS) usually after the 

second or third confirmation well is drilled. The operator 

should then have an idea of the extent of drilling and 

disturbance required to extract and produce the oil and 

gas. When an oil or gas discovery is made, a well 

spacing pattern must be established before development 

drilling begins.
Fluid Minerals

Record of Decision (ROD)/Approved RMP 207

Development can take years and include from one or 

two wells to more than a hundred wells per field. 

However, the reasonably foreseeable development 

scenario for this planning document should only 

forecasts two additional wells per field. Roads to 

producing wells are upgraded to all-weather roads as 

necessary. Pipelines, electrical transmission lines, 

separators, dehydrators, sump pits, and compressor 

stations soon follow. Sometimes oil and gas processing 

facilities are built in or adjacent to the field.

Further Seismic Testing

More detailed seismic work can be done to achieve 

better definition of the petroleum reservoir. Diagonal 

seismic lines can be required to tie the previous seismic 

work to the discovery well. The discovery well can be 

used to conduct studies to correct the previous seismic 

work and provide more accurate subsurface data.

Spacing Requirements

A well spacing pattern must be established before 

development drilling begins. Information considered in 

establishment of a spacing pattern includes data from the 

discovery well on porosity, permeability, pressure, 

composition, and depth of formations in the reservoir; 

well production rates and type (predominantly oil or 

gas); and the economic effect of the proposed spacing on 

recovery. The state of Montana establishes well spacing 

patterns for both exploratory and development wells 

which the BLM generally adopts. The state specifies the 

minimum distance from lease lines or government 

survey lines for the bottom hole location of the well bore 

depending upon depth of the well. The spacing 

regulations determine the acres assigned to each well. 

Spacing unit size is established to provide for the most

efficient and economic recovery of oil or gas from a 

reservoir. Normal well spacing ranges from 40 acres to 

640 acres (Figures A-1 and A-2). Wells deeper than 

11,000 feet can be no closer than 1,650 feet to other 

producing wells below 11,000 feet. Only one producing 

well per formation is allowed in each 40, 80, 160, 320,

and 640-acre unit. 

Drilling of Development Wells

The procedures used in drilling development wells are 

the same as those used for wildcat wells, but usually 

with less subsurface sampling, testing, and evaluation. 

The rate at which development wells are drilled in a 

field depends on factors such as whether the field is 

developed on a lease basis or unitized basis, the 

probability of profitable production, the availability of 

drilling equipment, lease requirements, and the degree to 

which limits of the field are known. Some fields go 

through several development phases, the first resulting 

from the original discovery and others from later 

discovery. A field can be considered fully developed and 

produce for several years, and then a well may be drilled 

to a deeper or shallower pay zone. Discovery of a new 

pay zone in an existing field is a “pool” discovery (as 

distinguished from a new field discovery). A pool 

discovery may lead to the drilling of additional wells, 

often from the same drilling pad as existing wells.

Inspections

Geophysical operations and lease operations are 

inspected to determine compliance with approved 

permits, to resolve conflicts or correct problems and to 

determine effectiveness and need of lease stipulations. 

All inspections are documented. Operators are required 

to correct problems or violations.

Surface Requirements

Field development activities that cause surface 

disturbance include access roads, well sites, production 

facility sites, flow line and utility line routes and waste 

disposal sites. Surface uses in a gas field will be less 

than in an oil field, because gas wells are usually drilled 

on larger spacing units. The spacing pattern of 640 acres 

per well, which is common in gas fields, will require 

only one well per section and might require only 1/2 

mile of access roads and pipelines. Production facilities 

include separation and storage equipment. Separation 

equipment is required when production includes a 

combination of oil, gas, or water and storage equipment 

is required for holding liquids prior to sales.

Flow Lines

Oil and gas are transferred from the well to storage 

facilities through small diameter (<6 inches) flow lines. 

Flow lines can be on the surface, buried or elevated. 

Produced water, gas, or polymerized liquid is transferred 

from storage facilities to injection wells for secondary 

recovery.
Appendix H

208 Record of Decision (ROD)/Approved RMP

Figure A-1. Gas Well Spacing
Fluid Minerals

Record of Decision (ROD)/Approved RMP 209

Figure A-2. Oil Well Spacing
Appendix H

210 Record of Decision (ROD)/Approved RMP

Separation, Treatment, and Storage

Any water or gas associated with produced oil is 

separated from the oil before it is placed in storage 

tanks. The treating facilities are located at a storage tank 

battery. Low-pressure petroleum that must be pumped 

from the well is treated in a single separation. Highpressure, flowing petroleum can require several stages or 

separation, with a pressure reduction accompanying each 

stage.

Produced gas is sold when there is sufficient volume, 

necessary transportation, a market, and it is economical. 

Generally, if the volume of produced gas is too low for 

sales, it is used as fuel for well pump engines and 

heating fuel for the treaters. If the volume of produced 

gas exceeds fuel requirements on the lease but gas sales 

are not possible, the gas can be flared or vented into the 

atmosphere when authorized by permit in accordance 

with state and federal regulations. When water is 

produced with the hydrocarbons, it is separated before 

the gas is removed. In primary operations, where natural 

pressures or gravity causes the petroleum in the reservoir 

to flow to the wellbores, the degree of mixing is high 

enough to require chemical and heat treatment to 

separate the oil and water. In secondary production, 

where water injection or other methods are used to force 

additional petroleum to the wellbore, the oil and water 

often are not highly emulsified. In this case, the oil and 

water can be separated by gravity in a tall settling tank. 

Produced water can be disposed of by injection into the 

subsurface, surface evaporation or beneficial purposes 

such as water for livestock or irrigation.

Produced water from oil and gas operations is normally 

disposed of by subsurface injection or in surface pits. 

Regardless of the method of disposal, it must be 

acceptable to the BLM, in accordance with the 

requirements of Onshore Oil and Gas Order No. 7, titled 

“Disposal of Produced Water.” Disposal of produced 

water by injection wells requires permits from the 

Montana Board of Oil and Gas Conservation. When 

produced water is disposed underground, it is introduced 

or injected under pressure into a subsurface horizon 

containing water of equal or poorer quality. Produced 

water may be injected into the producing zone from 

which it originated to stimulate oil production. Dry holes 

or depleted wells are commonly converted for saltwater 

disposal and occasionally new wells are drilled for this 

purpose. The law and regulations require that all 

injection wells be permitted under the Underground 

Injection Control program.

Under the Underground Injection Control approval 

process, the disposal well must be pressure tested to 

ensure the integrity of the casing. The disposal zone 

must also be isolated by use of tubing and mechanical 

plug called a packer. The packer seals off the inside of 

the casing and only allows the injected water to enter the 

disposal zone. The tubing and packer are also pressure 

tested to ensure their integrity. These pressure tests 

confirm isolation of the disposal zone from possible 

usable water zones. The oil is transported to storage 

tanks through flow lines after separation from any water 

or gas. Storage tanks are usually located on the lease 

either at the producing well or at a central production 

facility. The number and size of tanks are dependent 

upon the type and amount of production on the lease.

ABANDONMENT

When drilling wells are unsuccessful or production wells 

are no longer useful, the well is plugged, equipment is 

removed from the well site or production facility site, 

and the site is abandoned. The well bore is secured by 

placing cement plugs to isolate hydrocarbon-producing 

formations from contaminating other mineral or water 

bearing formations. The site and roads are then restored 

as near as possible to original contours. Topsoil is 

replaced and the recontoured areas are seeded. 

Reclamation of access roads and well sites on privately 

owned surface is completed according to the surface 

owner’s requirements.

Rehabilitation requirements generally are made a part of 

the Application for Permit to Drill. Upon completion of 

abandonment and rehabilitation operations, the lessee or 

operator notifies the Great Falls Oil and Gas Field 

Station that the location is ready for inspection. Final 

abandonment will not be approved until the required 

surface reclamation work has been completed to the 

satisfaction of the BLM or surface owner. The period of 

bond liability for the well site is terminated after 

approval of final abandonment. Reclamation of the 

reserve pit is part of the well site reclamation process. 

Reserve pit reclamation includes removal of fluids to a 

disposal well or commercial pit and burial of solids in 

the pit. Solids should not be buried until dry and then 

covered with a minimum of 6 feet of native soil. Any pit 

liner may be buried in place. Methods such as 

solidification or dewatering may be used to help dry the 

solids.

REGULATIONS, LAWS, AND 

SPECIAL PROCEDURES

UNIT AND COMMUNITIZATION 

AGREEMENTS

Unit and communitization agreements can be formed in 

the interest of conservation and to allow for the orderly 

development of oil and gas reserves. A unit agreement 

provides for the recovery of oil and gas from the lands as 

a single consolidated entity without regard to separate 

lease ownerships. An exploratory unit is used for the 

discovery and development of the field in an orderly and 

efficient manner. Paying and nonpaying well 

determinations are made for each well drilled. If the well 

is nonpaying as defined by the agreement, the 

production is allocated on a lease basis. If the well is a 

paying unit well, a participating area is formed and the 
Fluid Minerals

Record of Decision (ROD)/Approved RMP 211

production is allocated to all interest owners in the 

participating area based on surface area. A secondary 

unit is formed after the field has been defined and 

enhanced recovery techniques are being utilized. 

Secondary recovery techniques include water injection, 

natural gas injection, or carbon dioxide injection. 

Injection is initiated to maintain the reservoir pressure to 

maintain oil production. The agreement provides for the 

allocation of production among all the interest owners. 

A communitization agreement combines two or more 

leases (federal, state, or fee) that otherwise could not be 

independently developed in conformity with established 

well spacing patterns. The leases within the spacing unit 

share in the costs and benefits of the well drilled in the 

spacing unit. Therefore, unit and communitization 

agreements can lessen the amount of damage to the 

environment and save dollars by eliminating 

unnecessary wells, roads, pipelines, and lease 

equipment.

SPLIT ESTATE

Part of the area included in the planning area contains 

lands known as split estate lands. These are lands where 

the surface ownership is different from the mineral 

ownership. Management of federal oil and gas resources 

on these lands is somewhat different from management 

on lands where both surface and mineral ownership is 

federal. On split estate lands where the surface 

ownership is private, the BLM places necessary 

restrictions and requirements on its leases and permit 

approvals and works in cooperation with the surface 

owner. BLM has established policies for the 

management of federal oil and gas resources in 

accordance with federal laws and regulations.

The BLM does not have the legal authority to regulate 

how private surface is managed. BLM does have the 

statutory authority to require measures by lessees to 

avoid or minimize adverse impacts that may result from 

federally authorized mineral lease activities. These 

measures, in the form of lease stipulations or permit 

conditions of approval, are intended to protect or 

preserve the privately owned resources and prevent 

adverse impacts to adjoining lands, not to dictate 

management to the surface owner. The term split estate 

can also refer to lands where the surface ownership is 

federal and the mineral ownership is private. In this 

situation, BLM is the surface owner, and works in 

cooperation with the proponent and the state regulatory 

agency that approves private mineral applications. BLM 

has responsibilities in this situation under the previously 

mentioned statutes; however, BLM does not have the 

authority to approve or disapprove the mineral owner’s 

actions. The mineral estate owner usually has the right to 

enter the land and use the surface that is necessary and 

reasonable for mineral development through either a 

reserved or an outstanding right contained in the deed.

OIL AND GAS STIPULATIONS

RESOURCE: GRIZZLY BEAR –

RECOVERY ZONE

Stipulation: No Surface Occupancy. Activity is 

prohibited within the boundary of the Recovery Zone for 

Grizzly Bears.

Objective: To preclude surface disturbing activities in 

the Grizzly Bear Recovery Zone. 

Exception: An exception will not be granted while the 

area is important to grizzly bear recovery or to its 

conservation following a change in legal status under the 

Endangered Species Act. Conditions for Exception 

require that the area is no longer classified as necessary 

for the recovery of the species.

Modification: This stipulation may be modified if a 

portion of the area is no longer important to grizzly bear 

recovery or to its conservation following a change in 

legal status under the Endangered Species Act. 

Conditions for Modification require that a portion of the 

area is no longer classified as necessary for the recovery 

of the species and is not considered important to it 

conservation.

Waiver: This stipulation will not be waived while the 

area is important to grizzly bear recovery or to its 

conservation following a change in legal status under the 

Endangered Species Act. Conditions for Waiver require 

that the area is no longer classified as necessary for the 

recovery or conservation of the species.

RESOURCE: GRIZZLY BEAR -

DISTRIBUTION ZONE

Stipulation: Timing Limitation. Activity is prohibited 

from April 1 to June 30 and from September 15 –

October 15 in the Grizzly Bear Distribution Zone.

Objective: To preclude surface disturbing activities in 

grizzly bear denning areas which could cause increased 

stress and/or displacement of animals during critical 

time periods (April 1 - June 30 and September 15 –

October 15). 

Exception: An exception may be granted if it is 

determined that the animals have moved out of and are 

not using the general area during the particular year.

Modification: A modification of the stipulation may be 

granted if new habitat studies show that a portion of the 

area is not used by grizzly bear for denning.

Waiver: A waiver may be granted if new habitat studies 

in coordination with the Fish and Wildlife Service 

conclude that the area affected by this stipulation is not 

critical for grizzly bear denning.
Appendix H

212 Record of Decision (ROD)/Approved RMP

RESOURCE: GRAY WOLF – FORMER 

NORTHWEST MONTANA RECOVERY 

AREA ENDANGERED POPULATION

Stipulation: Timing Limitation. Activity is prohibited 

within a 1 mile buffer around wolf dens or rendezvous 

sites from April 15 to June 30 in the Northwest Montana 

Recovery Area. This stipulation would be applied to the 

Northwest Montana Recovery Area (94,700 acres) but 

there are no known den or rendezvous sites currently 

mapped in this area. 

Objective: To preclude surface disturbing activities in 

wolf denning or rendezvous areas in the former 

Northwest Montana Recovery Area which could cause 

increased stress and/or displacement of animals during 

the critical time period (April 15 - June 30). 

Exception: An exception may be granted if it is 

determined that the animals have moved out of and are 

not using the general area during the particular year.

Modification: A modification of the stipulation may be 

granted if new habitat studies show that a portion of the 

area is not used by wolves for denning or for rendezvous 

sites.

Waiver: A waiver may be granted if new habitat studies 

in coordination with the Fish and Wildlife Service 

conclude that the area affected by this stipulation in not 

critical for wolf denning or for rendezvous sites.

RESOURCE: PRAIRIE DOG TOWNS 

Stipulation: No Surface Occupancy. Activity is 

prohibited within the boundary of any prairie dog town.

Objective: To protect habitat for prairie dog towns. 

Exception: An exception to this stipulation may be 

granted by the authorized officer if the operator submits 

a plan which demonstrates that impacts from the 

proposed action are minimal or can be adequately 

mitigated.

Modification: The boundaries of the stipulated area 

may be modified if the authorized officer determines 

that portions of the area can be occupied without 

adversely affecting prairie dogs.

Waiver: This stipulation may be waived if the 

authorized officer, in consultation with MFWP and 

USFWS, determines that the entire leasehold no longer 

contains prairie dogs.

RESOURCE: SAGE GROUSE 

WINTER/SPRING RANGE 

Stipulation: Timing Limitation. No activity from 

December 1 through May 15 within winter and spring 

range for sage grouse. This stipulation does not apply to 

the operation and maintenance of production facilities 

unless the findings of analysis demonstrate the continued 

need for such mitigation and that less stringent, projectspecific mitigation measures would be insufficient. 

Objective: To protect sage grouse winter range from 

disturbance during the winter/spring season, and to 

facilitate long-term maintenance of wildlife populations.

Exception: An exception to this stipulation may be 

granted by the authorized officer in consultation with 

MFWP and the USFWS, if the operator submits a plan 

that demonstrates that impacts from the proposed action 

are minimal or can be adequately mitigated.

Modification: The boundaries of the stipulated area 

may be modified if the authorized officer determines 

that portions of the area no longer contain sage grouse 

winter/spring range. The dates for the timing restriction 

may be modified if new information indicates that the 

December 1 through May 15 dates are not valid for the 

leasehold.

Waiver: This stipulation may be waived if the 

authorized officer determines that the entire leasehold no 

longer contains sage grouse winter/spring range, or if in 

coordination with MFWP and the USFWS, determines 

that the area is not critical for sage grouse.

RESOURCE: SAGE GROUSE STRUTTING 

GROUNDS (LEKS)

Stipulation: No Surface Occupancy. Activity is 

prohibited within 1/4 mile of sage grouse leks.

Objective: To protect sage grouse strutting grounds and 

leks to maintain regional sage grouse populations.

Exception: An exception to this stipulated area may be 

modified if the authorized officer determines that 

portions of the area can be occupied without adversely 

affecting sage grouse leks.

Modification: The boundaries of the stipulated area 

may be modified if the authorized officer determines 

that portions of the area can be occupied without 

adversely affecting sage grouse leks.

Waiver: The stipulation may be waived if the 

authorized officer, in consultation with MFWP, 

determines that the entire leasehold can be occupied 

without adversely affecting sage grouse leks.

RESOURCE: SAGE GROUSE BREEDING 

HABITAT

Stipulation: Timing Limitation. Activity is restricted 

from March 1 through June 30 in nesting and early 

brood rearing habitat (defined as within three miles of 

leks). This stipulation does not apply to the operation 

and maintenance of production facilities unless the 

findings of analysis demonstrate the continued need for 

such mitigation and that less stringent, project-specific 

mitigation measures would be insufficient. 
Fluid Minerals

Record of Decision (ROD)/Approved RMP 213

Objective: To protect sage grouse leks and breeding 

habitat necessary for long-term maintenance of regional 

sage grouse populations.

Exception: An exception to this stipulation may be 

granted by the authorized officer if the operator submits 

a plan that demonstrates that impacts from the proposed 

action are minimal or can be adequately mitigated.

Modification: The boundaries of the stipulated area 

may be modified if the authorized officer determines 

that portions of the area can be occupied without 

adversely affecting sage grouse leks.

Waiver: This stipulation may be waived if the 

authorized officer, in consultation with MFWP and the 

USFWS, determines that the entire leasehold can be 

occupied without adversely affecting sage grouse leks or 

the surrounding breeding habitat.

RESOURCE: WILDLIFE MANAGEMENT 

AREAS 

Stipulation: No Surface Occupancy. Activity is 

prohibited within the boundary of Wildlife Management 

Areas administered by Montana Department of Fish, 

Wildlife, and Parks (MFWP).

Objective: To protect MFWP elk winter range 

necessary for long-term maintenance of regional elk 

populations and other wildlife values.

Exception: None.

Modification: None.

Waiver: None.

RESOURCE: BIG GAME 

WINTER/SPRING RANGE 

Stipulation: Timing Limitation. No activity from 

December 1 through May 15 within winter range for 

wildlife. This stipulation does not apply to the operation 

and maintenance of production facilities unless the 

findings of analysis demonstrate the continued need for 

such mitigation and that less stringent, project-specific 

mitigation measures would be insufficient. 

Objective: To protect mule deer, elk, antelope, and 

moose winter/spring range from disturbance during the 

winter/spring season, and to facilitate long-term 

maintenance of wildlife populations.

Exception: An exception to this stipulation may be 

granted by the authorized officer in consultation with 

MFWP, if the operator submits a plan that demonstrates 

that impacts from the proposed action are minimal or 

can be adequately mitigated.

Modification: The boundaries of the stipulated area 

may be modified if the authorized officer, in 

consultation with MFWP, determines that portions of the 

area no longer contain wildlife winter/spring range. The 

dates for the timing restriction may be modified if new 

wildlife use information indicates that the December 1 

through May 15 dates are not valid for the leasehold.

Waiver: This stipulation may be waived if the 

authorized officer, in consultation with MFWP, 

determines that the entire leasehold no longer contains 

winter/spring range for wildlife.

RESOURCE: ELK CALVING/BIG GAME 

BIRTHING AREAS

Stipulation: Timing Limitation. Activity is prohibited 

from April 1 through June 30 in big game birthing areas. 

This stipulation does not apply to the operation and 

maintenance of production facilities unless the findings 

of analysis demonstrate the continued need for such 

mitigation and that less stringent, project-specific 

mitigation measures would be insufficient. 

Objective: To protect mule deer, elk, antelope, and 

moose birthing areas from disturbance and facilitate 

long-term maintenance of wildlife populations.

Exception: An exception to this stipulation may be 

granted by the authorized officer if the operator submits 

a plan that demonstrates that impacts from the proposed 

action are acceptable or can be adequately mitigated.

Modification: The boundaries of the stipulated area 

may be modified if the authorized officer determines 

that portions of the area no longer contain birthing 

habitat for big game species. The dates for the timing 

restriction may be modified if new wildlife use 

information indicates that the dates are not valid for the 

leasehold.

Waiver: This stipulation may be waived if the 

authorized officer, in consultation with MFWP, 

determines that the entire leasehold no longer contains 

big game birthing areas.

RESOURCE: BIGHORN SHEEP 

YEARLONG RANGE 

Stipulation: Timing Limitation. Activity is prohibited 

from November 1 through June 30 in bighorn rutting, 

winter and lambing habitat. This stipulation does not 

apply to the operation and maintenance of production 

facilities unless the findings of analysis demonstrate the 

continued need for such mitigation and that less 

stringent, project-specific mitigation measures would be 

insufficient. 

Objective: To protect bighorn rutting, winter and 

lambing habitat from disturbance and facilitate longterm maintenance of bighorn sheep populations.

Exception: An exception to this stipulation may be 

granted by the authorized officer if the operator submits 

a plan that demonstrates that impacts from the proposed 

action are minimal or can be adequately mitigated.
Appendix H

214 Record of Decision (ROD)/Approved RMP

Modification: The boundaries of the stipulated area 

may be modified if the authorized officer determines 

that portions of the area no longer contain rutting, 

winter, and lambing habitat for bighorn sheep. The dates 

for the timing restriction may be modified if new 

wildlife use information indicates that the dates are not 

valid for the leasehold.

Waiver: This stipulation may be waived if the 

authorized officer, in consultation with MFWP, 

determines that the entire leasehold no longer contains 

bighorn sheep rutting, winter or lambing areas.

RESOURCE: BIGHORN SHEEP CORE 

AREAS

Stipulation: No Surface Occupancy. Activity is 

prohibited within the bighorn sheep core areas.

Objective: To protect bighorn sheep yearlong habitat 

necessary for long-term maintenance of bighorn sheep 

populations.

Exception: An exception to this stipulation may be 

granted by the authorized officer, in consultation with 

MFWP, if the operator submits a plan which 

demonstrates that impacts from the proposed action are 

minimal or can be adequately mitigated.

Modification: The boundaries of the stipulated area 

may be modified if the authorized officer, in 

consultation with MFWP, determines that portions of the 

bighorn sheep core areas can be occupied without 

adversely affecting bighorn sheep use.

Waiver: This stipulation may be waived if the 

authorized officer, in consultation with MFWP, 

determines that the entire leasehold can be occupied 

without adversely affecting bighorn sheep core areas.

RESOURCE: BALD EAGLE NEST 

SITES/BREEDING HABITAT

Stipulation: No Surface Occupancy. Activity is 

prohibited within 1/2 mile of bald eagle nest sites and 

within bald eagle nesting habitat in riparian areas.

Objective: To protect bald eagle nesting sites and/or 

breeding habitat in accordance with the Montana Bald 

Eagle Management Plan.

Exception: An exception may be granted by the 

authorized officer if the operator submits a plan which 

demonstrates that the proposed action will not affect the 

bald eagle or its habitat. If the authorized officer 

determines that the action may have an adverse affect, 

the operator may submit a plan demonstrating that the 

impacts can be adequately mitigated. This plan must be 

approved by BLM in consultation with the USFWS.

Modification: The boundaries of the stipulated area

may be modified if the authorized officer, in 

consultation with USFWS, determines that the area can 

be occupied without adversely affecting bald eagle nest 

sites or nesting habitats.

Waiver: This stipulation may be waived if the 

authorized officer, in consultation with USFWS, 

determines that the entire leasehold can be occupied 

without adversely affecting bald eagle nest sites or 

nesting habitat.

RESOURCE: BALD EAGLE NEST 

SITES/BREEDING HABITAT 

Stipulation: Timing Limitation. No activity is allowed 

from February 1 through August 31 in a one mile radius 

around bald eagle nest sites. This stipulation does not 

apply to the operation and maintenance of production 

facilities unless the findings of analysis demonstrate the 

continued need for such mitigation and that less 

stringent, project-specific mitigation measures would be 

insufficient. 

Objective: To protect bald eagle nesting site and/or 

breeding habitat in accordance with the Montana Bald 

Eagle Management Plan.

Exception: An exception may be granted by the 

authorized officer if the operator submits a plan which 

demonstrates that the proposed action will not affect the 

bald eagle or its habitat. If the authorized officer 

determines that the action may have an adverse affect, 

the operator may submit a plan demonstrating that the 

impacts can be adequately mitigated. This plan must be 

approved by BLM in consultation with the USFWS.

Modification: A modification may be granted if new 

habitat studies show that a portion of the area is not used 

by eagles.

Waiver: This stipulation may be waived if the 

authorized officer, in consultation with USFWS, 

determines that the entire leasehold can be occupied 

without adversely affecting bald eagle nest sites or 

nesting habitat.

RESOURCE: RAPTOR BREEDING 

TERRITORIES (GOLDEN EAGLE,

PRAIRIE FALCON, SWAINSON’S HAWK)

Stipulation: Timing Limitation. No activity from 

March 1 through July 31, within 1/2 mile of raptor nest 

sites which have been active within the past five years. 

This stipulation does not apply to the operation and 

maintenance of production facilities unless the findings 

of analysis demonstrate the continued need for such 

mitigation and that less stringent, project-specific 

mitigation measures would be insufficient. 

Objective: To protect reproductive potential of 

breeding habitat for special status raptors.

Exception: An exception to this stipulation may be 

granted by the authorized officer of the operator submits 
Fluid Minerals

Record of Decision (ROD)/Approved RMP 215

a plan that demonstrates the impacts from the proposed 

action are minimal or can be adequately mitigated.

Modification: The boundaries of the stipulated area 

may be modified if the authorized officer determines 

that portions of the area no longer are within 1/2 mile of 

raptor nest sites. The dates for the timing restriction may 

be modified if new information indicates that the dates 

are not valid for the leasehold.

Waiver: This stipulation may be waived if the 

authorized officer determines that the entire leasehold no 

longer is within 1/2 mile of nest sites.

RESOURCE: PEREGRINE FALCON NEST 

SITES/BREEDING HABITAT

Stipulation: No Surface Occupancy. Activity is 

prohibited within one mile of peregrine falcon nest sites.

Objective: To protect peregrine falcon nesting sites 

and/or breeding habitat.

Exception: An exception may be granted by the 

authorized officer if the operator submits a plan that 

demonstrates that the proposed action will not affect the 

peregrine falcon or its habitat. If the authorized officer 

determines that the action may have an adverse affect, 

the operator may submit a plan demonstrating that the 

impacts can be adequately mitigated. This plan must be 

approved by BLM in consultation with USFWS.

Modification: The boundaries of the stipulated area 

may be modified if the authorized officer, in 

consultation with USFWS, determines that portions of 

the area can be occupied without adversely affecting 

peregrine falcon nest sites or breeding habitat.

Waiver: This stipulation may be waived if the 

authorized officer, in consultation with USFWS, 

determines that the entire leasehold can be occupied 

without adversely affecting peregrine falcon nest sites or 

breeding habitat.

RESOURCE: FERRUGINOUS HAWK 

BREEDING TERRITORIES

Stipulation: No Surface Occupancy. Activity is 

prohibited within 1/2 mile of ferruginous hawk nest sites 

that have been active within the past 5 years.

Objective: To maintain the reproductive potential of 

ferruginous hawk nest sites.

Exception: An exception to this stipulation may be 

granted by the authorized officer if the operator submits 

a plan that demonstrated that the impacts from the 

proposed action are minimal or can be adequately 

mitigated. 

Modification: The boundaries of the stipulated area 

may be modified if the authorized officer determines 

that portions of the area can be occupied without 

adversely affecting the production potential of 

ferruginous hawk nest sites.

Waiver: This stipulation may be waived if the 

authorized officer determines that the entire leasehold 

can be occupied without adversely affecting the 

production potential of ferruginous hawk nest sites.

RESOURCE: THREATENED,

ENDANGERED, AND SPECIAL STATUS 

SPECIES 

Stipulation: Controlled Surface Use. The lease area 

may now or hereafter contain plants, animals, or their 

habitats determined to be threatened, endangered, or 

other special status species. BLM may recommend 

modifications to exploration and development proposals 

to further its conservation and management objective to 

avoid BLM-approved activity that will contribute to a 

need to list such a species or their habitat. BLM may 

require modifications to or disapprove proposed activity 

that is likely to result in jeopardy to the continued 

existence of a proposed or listed threatened or 

endangered species or result in the destruction or 

adverse modification of a designated or proposed critical 

habitat. BLM will not approve any ground-disturbing 

activity that may affect any such species or requirements 

of the Endangered Species Act as amended, 16 U.S.C. § 

1531 et seq., including completion of any required 

procedure for conference or consultation.

Objective: Avoid BLM-approved activity that will 

contribute to a need to list a species or their habitat as 

threatened or endangered.

Exception: None.

Modification: None.

Waiver: None.

RESOURCE: WESTSLOPE CUTTHROAT 

TROUT HABITAT (90-99% PURE)

Stipulation: No Surface Occupancy. No activity 

allowed within 1/2 mile from centerline of stream 

containing known populations of 90-99% genetically 

pure westslope cutthroat trout.

Objective: To ensure healthy aquatic habitat exists in 

drainages important to the viability of Upper Missouri 

River and Columbia River Basins Westslope Cutthroat 

Trout.

Exception: An exception may be granted after a site 

assessment is conducted and if the operator can 

demonstrate in a surface use plan of operations that 

adverse effects can be eliminated and activities would 

not affect sensitive trout populations. Apply the 

following mitigation measures:

a) No net increase in sediment over existing condition.
Appendix H

216 Record of Decision (ROD)/Approved RMP

b) No adverse effects on water quality and quantity.

Modification: None.

Waiver: A waiver may be granted if the MFWP 

determines the stream is no longer considered important 

to the viability of the species.

RESOURCE: WESTSLOPE CUTTHROAT 

TROUT HABITAT (99-100% PURE)

Stipulation: No Surface Occupancy. No activity 

allowed within 1⁄2 mile from centerline of stream 

containing known populations of 99-100% genetically 

pure westslope cutthroat trout.

Objective: To prevent sensitive aquatic habitat and 

trout populations from being impacted.

Exception: An exemption may be granted after a site 

assessment is conducted and if the operator can 

demonstrate in a surface use plan of operations that 

adverse effects can be eliminated and activities would 

not affect sensitive trout populations. Apply the 

following mitigation measures:

a) No net increase in sediment over existing condition.

b) No adverse effects on water quality and quantity.

Modifications: None

Waiver: A waiver may be granted if the MFWP 

determines the stream is no longer considered important 

to the viability of the species.

RESOURCE: FLUVIAL AND ADFLUVIAL 

ARCTIC GRAYLING HABITAT

Stipulation: No Surface Occupancy. No activity 

allowed within 1/2 mile from centerline of stream 

containing known populations of Arctic grayling.

Objective: To ensure healthy aquatic habitat exists 

along rivers and tributaries important to the viability of 

fluvial and adfluvial Arctic grayling.

Exception: An exception may be granted after a site 

assessment is conducted and if the operator can 

demonstrate in a surface use plan of operations that 

adverse effects can be eliminated and activities would 

not affect sensitive Arctic grayling populations. The 

following mitigation measures would apply:

a) No net increase in sediment over existing condition.

b) No adverse effects on water quality or quantity.

Modification: None.

Waiver: A waiver may be granted if the MFWP and the 

USFWS determines the stream is no longer considered 

important to the viability of the species.

RESOURCE: BULL TROUT 

Stipulation: No Surface Occupancy. No activity 

allowed within 1/2 mile from centerline of streams 

containing known populations of bull trout.

Objective: To ensure healthy aquatic habitat exists in 

drainages important to the viability of bull trout.

Exception: An exception may be granted after a site 

assessment is conducted and if the operator can 

demonstrate in a surface use plan of operations that 

adverse effects can be eliminated and activities would 

not affect sensitive trout populations. Apply the 

following mitigation measures:

a) No net increase in sediment over existing condition.

b) No adverse effects on water quality and quantity.

Modification: None.

Waiver: A waiver may be granted if the MFWP and the 

USFWS determines the stream is no longer considered 

important to the viability of the species.

RESOURCE: YELLOWSTONE 

CUTTHROAT (90-100% PURE)

Stipulation: No Surface Occupancy. No activity 

allowed within 1/2 mile from centerline of streams 

containing known populations of 90-100% genetically 

pure Yellowstone cutthroat trout.

Objective: To ensure healthy aquatic habitat exists in 

drainages important to the viability of Yellowstone 

Cutthroat.

Exception: An exception may be granted after a site 

assessment is conducted and if the operator can 

demonstrate in a surface use plan of operations that 

adverse effects can be eliminated and activities would 

not affect sensitive trout populations. The following 

mitigation measures would apply:

a) No net increase in sediment over existing condition.

b) No adverse effects on water quality and quantity.

Modification: None

Waiver: A waiver may be granted if the MFWP and the 

USFWS determines the stream is no longer considered 

important to the viability of the species.

RESOURCE: STREAMS WITH HIGH 

RESTORATION POTENTIAL FOR NATIVE 

FISH 

Stipulation: No Surface Occupancy. No activity 

allowed within 1⁄2 mile from centerline of streams that 

are identified by the BLM as having high restoration 

potential for westslope cutthroat trout, Yellowstone 

cutthroat trout, Arctic grayling and/or bull trout. 
Fluid Minerals

Record of Decision (ROD)/Approved RMP 217

Objective: To ensure healthy aquatic and riparian 

habitats are maintained in and along streams with the 

potential for native fish re-introductions and restoration.

Exception: An exception may be granted after a site 

assessment is conducted and if the operator can

demonstrate in a surface use plan of operations that 

adverse effects can be eliminated and activities would 

not affect potential habitat for native fish populations or 

degrade suitable habitat for native fish restoration/reintroduction. The following mitigation measures would 

apply:

a) No net increase in sediment over existing condition.

b) No adverse effects on water quality and quantity.

Modification: None.

Waiver: None.

RESOURCE: CLASS 1 FISHERIES

Stipulation: No Surface Occupancy. No activity 

allowed within 1⁄2 mile from centerline of Class 1 fishery 

streams (Blue Ribbon trout streams).

Objective: To ensure healthy aquatic habitat are 

maintained along Class 1 fisheries.

Exception: An exception may be granted if MFWP 

modifies the Class 1 fisheries rating. Application of the 

following mitigation measures apply:

a) No net increase in sediment over existing condition.

b) No adverse effects on water quality and quantity.

Modification: None.

Waiver: None.

RESOURCE: DEVELOPED RECREATION 

SITES

Stipulation: No Surface Occupancy. Surface 

occupancy and use is prohibited within 1⁄4 mile of 

developed recreation sites, regardless of administering 

agency. Currently there are 49 developed BLM 

recreation sites: Beartooth Landing Rec Site, Bryant 

Creek Rec Site, Buffalo Hump Rec Site, Carbella Rec 

Site, Clark’s Bay Rec Site, Crimson Bluff Rec Site, 

Crow Creek Rec Site, Departure Point Rec Site, Devil’s 

Elbow Rec Site, Dickie Bridge Rec Site, Divide Bridge 

Campground, Divide Bridge Day Use, East Bank Rec 

Site, Four Corners OHV Trailhead, French Bar Rec Site, 

Galena Gulch Rec Site, Headlane Trailhead, Holter Lake 

Dam Rec Site, Holter Lake Rec Site, Jerry Creek Br 

Fishing Access, John G Mine Trailhead, Log Gulch Rec 

Site, Lombard Historical, Lower Toston Rec Site, 

Maiden Rock East, McMaster Hill East Trailhead, 

McMaster Hill West Trailhead, Moose Creek Trailhead, 

Ohio Gulch OHV Trailhead, Pintlar Creek Rec Site, 

Pipestone OHV Rec Site, Radersburg OHV Trailhead, 

Ringing Rocks Rec Site, Sawlog Creek Rec Site, 

Sawmill Gulch Trailhead, Sheep Camp Rec Site, Sheep 

Mountain Trailhead, Sleeping Giant Trailhead, Spokane 

Bay Rec Site, Spokane Bay Trailhead, Spokane Hills 

South, Titan Gulch Rec Site, Toston Dam Rec Site, 

Tumbleweed Lane Trailhead, Two Camps Vista, Ward 

Ranch Historical Site, Whiskey Gulch Trailhead, White 

Sandy Campground, Woodsiding Trailhead

Objective: To recognize and protect the public’s 

opportunity for quality recreation experiences at those 

sites developed for that purpose. Since BLM recreation 

sites are generally developed to support the use of the 

surrounding lands, the 1⁄4 mile buffer offers some 

protection for perpetuating those opportunities for which 

the site was developed, as well as protecting capital 

investments at the site. 

Exception: An exception may be granted if a site is 

moved or eliminated. 

Modification: The list of developed recreation sites 

may be modified if development is removed, or if a 

currently undeveloped site is developed in the future. 

Waiver: A waiver may be granted if a site is moved or 

eliminated.

RESOURCE: SPECIAL RECREATION 

MANAGEMENT AREAS (SRMAS)

Stipulation: Controlled Surface Use. Operations within 

SRMAs must be conducted within a manner that 

minimizes encounters and conflicts with recreation 

users. Proposed activities may not alter or depreciate 

important recreational values located within the SRMA 

boundary. This would apply to the following Special 

Recreation Management Areas for this alternative: 

Holter Lake/Missouri River, Sleeping Giant, Hauser 

Lake/Lower Missouri River, Toston Reservoir/Missouri 

River, Scratchgravel Hills, Sheep Mountain, Pipestone, 

Upper Big Hole River, and Humbug Spires. 

Objective: To prevent user conflicts and incompatible 

uses in areas with high recreational values and 

significant amounts of recreational activity. 

Exception: An exception to this stipulation may be 

granted by the authorized officer if the operator submits 

a plan demonstrating the impacts to recreation values 

and recreation users are acceptable or can be adequately 

mitigated. 

Modification: The area affected by this stipulation may 

be modified by the authorized officer if the boundaries 

of the SRMA are changed. 

Waiver: None. 

RESOURCE: CULTURAL AND 

PALEONTOLOGICAL RESOURCES

Stipulation: Controlled Surface Use. An inventory of 

the leased lands may be required prior to surface 
Appendix H

218 Record of Decision (ROD)/Approved RMP

disturbance to determine if cultural resources or 

paleontological localities are present and to identify 

needed mitigation measures. Prior to undertaking any 

surface-disturbing activities on the lands covered by this 

lease, the lessee or operator shall:

1) Contact the Surface Management Agency (SMA) to 

determine if a cultural or paleontological resource 

inventory is required. If an inventory is required,

then:

2) The SMA will complete the required inventory; or 

the lessee or operator, at their option, may engage 

the services of a cultural resource consultant 

acceptable to the SMA to conduct an inventory of 

the area of proposed surface disturbance. The 

operator may elect to inventory an area larger than 

the planned disturbance to cover possible site 

relocation, or for planning purposes. 

3) Implement mitigation measures required by the 

SMA. Mitigation may include relocation of 

proposed lease-related activities or other protective 

measures such as data recovery and/or extensive 

recordation.

4) The SMA will consult with Native American tribes 

as per IM 2005 – 003. 

The lessee or operator is required to bring to the 

attention of the field office manager any cultural 

resources or other objects of scientific interest 

discovered as a result of approved operations under the 

lease, and shall leave all discoveries intact and 

undisturbed until directed to proceed by the field office 

manager (16 U.S.C. 470).

Objective: Compliance with Section 106 of the 

National Historic Preservation Act is required for all 

actions which may affect cultural resources eligible for 

nomination to the National Register of Historic Places. 

Section 6 of the Oil and Gas Lease Terms (Form 3100-

11) requires that operations be conducted in a manner 

that minimizes adverse impacts to cultural and other 

resources. 

Exception: None.

Modification: None.

Waiver: None. 

RESOURCE: NATIONAL REGISTER OF 

HISTORIC PROPERTIES ELIGIBLE 

PROPERTIES/DISTRICTS

Stipulation: No Surface Occupancy: Activity is 

prohibited within 300 ft. of site boundaries and/or 

districts eligible for, or listed on the National Register of 

Historic Places. There is one known district, the Indian 

Creek Historic Mining District (134 acres). 

Objective: To avoid disturbance to and protect, 

significant properties, districts, and their setting.

Exception: An exception to this stipulation may be 

granted by the authorized officer if the lessee or operator 

submits a plan which demonstrates that the adverse 

impacts to cultural properties can be mitigated through 

data recovery and/or extensive recordation. Where 

impacts to cultural resources cannot be mitigated to the 

satisfaction of the Surface Management Agency, surface 

occupancy in that area must be prohibited.

Modification: No modification will be granted. 

Waiver: No waiver will be granted. 

RESOURCE: TRADITIONAL CULTURAL 

PROPERTIES

Stipulation: No Surface Occupancy: Activity is 

prohibited within 1⁄2 mile, or line-of-site of the identified 

Traditional Cultural Property (TCP), whichever criterion 

protects the viewshed of that property. 

Objective: To avoid disturbance and protect cultural 

properties determined to be of particular importance to 

Native American Groups, determined to be Traditional 

Cultural Properties, and/or designated to be for 

traditional use.

Exception: An exception to this stipulation may be 

granted by the authorized officer if the Indian 

community no longer attaches those traditional values to 

the lease area. 

Modification: No modification will be granted. 

Waiver: No waiver will be granted. 

RESOURCE: VRM CLASS II,III & IV

AREAS

Stipulation: Controlled Surface Use. All surface 

disturbing activities and construction of semi-permanent 

and permanent facilities may require special design 

including location, painting, and camouflage to blend 

with the natural surroundings and meet the visual quality 

objectives for each respective class. 

Objective: To control the visual impacts of activities 

and facilities within acceptable levels.

Exception: None. 

Modification: None. 

Waiver: None.

RESOURCE: WETLANDS,

FLOODPLAINS, RIPARIAN AREAS, AND 

WATER QUALITY

Stipulation: No Surface Occupancy. Activity is 

prohibited within wetlands, floodplains, and riparian 

areas. 

Objective: To maintain riparian/wetland functions and 

water quality. 
Fluid Minerals

Record of Decision (ROD)/Approved RMP 219

Exception: An exception to this stipulation may be 

granted by the authorized officer if the operator submits 

a plan that demonstrates that impacts from the proposed 

action are minimal or can be adequately mitigated. 

Modification: None. 

Waiver: None. 

RESOURCE: SPECIAL STATUS PLANT 

HABITATS

Stipulation: Controlled Surface Use. A field inspection 

will be conducted for special status plant species by the 

lessee prior to any surface disturbance. A list of special 

status plant species will be provided to the lessee at the 

time of the lease. Plant Species on the list are subject to 

change over time as new information becomes available. 

Plant inventories must be conducted at a time of year 

when the target species are identifiable. A report must be 

provided to the BLM documenting the presence or 

absence of special status plants in the area proposed for 

surface disturbance. The findings of this report may 

result in restrictions to the operator’s plans or may 

preclude use and occupancy.

Objective: Protect and conserve rare plants, associated 

plant communities and the habitat that supports them.

Exception: An exception may be granted if BLM 

determines that the portion of the lease identified for 

surface disturbing activities does not support special 

status plant species or provide potential habitat for these 

species.

Modification: The boundaries of the area to be 

inventoried for special status plants may be modified if 

BLM determines that a large portion of the lease 

identified for surface disturbing activities doesn’t 

support special status plant species or provide potential 

habitat for these species.

Waiver: The field inspection and plant inventory may 

be waived by the authorized if he/she determines that the 

subject lease occurs in an area with no known 

populations of special status plant species and that the 

area doesn’t provide habitat for those species.

RESOURCE: KNOWN OR DISCOVERED 

SPECIAL STATUS PLANTS OR 

POPULATIONS

Stipulation: No Surface Occupancy. Surface 

occupancy and use is prohibited within 1/4 mile of 

special status plant species.

Objective: Protect and conserve rare plants, associated 

plant communities and the habitat that supports them.

Exception: None.

Modification: The boundaries of the no surface 

occupancy area may be modified if BLM determines 

that land within 1⁄4 mile of the special status plant 

population does not provide potential habitat for these 

species.

Waiver: None.

RESOURCE: MUNICIPAL WATERSHEDS

Stipulation: No Surface Occupancy. Surface 

occupancy would be prohibited in the following 

municipal watersheds: Missouri River Siphon, Tenmile 

Creek Drainage, Big Hole River Intake, and Moulton 

Reservoir. 

Objective: To protect drinking water for Municipalities 

within the Butte Field Office. 

Exception: If the lessee can demonstrate that operations 

can occur on the lease without causing negative impacts 

to water quality at the intakes, an exception may be 

granted, if approved in writing by the authorized officer 

in consultation with the Field Office watershed specialist 

and the communities of Butte and Helena. 

Modification: The boundaries of the stipulated area 

may be modified if the authorized officer determines 

that portions of the area can be occupied and operations 

will not cause water quality at intakes to fail to meet 

drinking water standards established by Montana 

Department of Environmental Quality (MDEQ). 

Waiver: None

RESOURCE: AREAS OR ACTIVE MASS 

WASTING, UNSTABLE LAND AREAS,

SLOPES >30% ON NON-BOULDER 

BATHOLITH SOILS OR SLOPES >20%

ON BOULDER BATHOLITH SOILS

Stipulation: Controlled Surface Use. Prior to surface 

disturbance on areas of active mass wasting, unstable 

land areas, or slopes greater than 30 on non-Boulder 

Batholith soils or 20 percent on Boulder Batholith soils, 

an engineering/reclamation plan must be approved by 

the authorized officer. Such plan must demonstrate how 

the following will be accomplished:

Site productivity will be restored.

Surface runoff will be adequately controlled.

Off-site areas will be protected from accelerated soil 

erosion.

Surface disturbing activities will not conducted 

during wet periods.

Objective: To maintain soil productivity and provide 

necessary protection to prevent excessive soil erosion on 

steep slopes.

Exceptions: An exception may be granted if the 

operator can demonstrate in a plan of operations that 
Appendix H

220 Record of Decision (ROD)/Approved RMP

adverse effects can be minimized and activities safely 

conducted.

Modifications: The area affected by this stipulation 

may be modified by the authorized officer if it is 

determined that portions of area do not include slopes 

over 30 percent on non-Boulder Batholith soils or 20 

percent on Boulder Batholith, or the operator can 

demonstrate in a plan of operations that adverse effects 

can be minimized.

Waiver: This stipulation may be waived by the 

authorized officer if it is determined that none of the 

leasehold contains slopes greater than 30 percent on 

non-Boulder Batholith soils or 20 percent on Boulder 

Batholith soils.

RESOURCE: CONTINENTAL DIVIDE 

NATIONAL SCENIC TRAIL 

(MARYSVILLE)

Stipulation: No Surface Occupancy. Surface 

occupancy and use is prohibited within 1/2 mile of the 

Continental Divide National Scenic Trail. 

Objective: To preserve and protect the existing scenic 

character of the landscape along the trail.

Exception: May be granted if this portion of the trail is 

relocated or if operator submits a plan that demonstrates 

that impacts to the area and the user experiences can be 

mitigated.

Modification: Modification may be granted should the 

trail be relocated or impacts of the action will not be 

noticed by users of the trail.

Waiver: May be granted if trail is moved from current 

location.

RESOURCE: DESIGNATED NATIONAL 

HISTORIC TRAILS – LEWIS AND CLARK 

TRAIL

Stipulation: No Surface Occupancy. Surface 

occupancy and use is prohibited within 1/2 mile of 

designated National Historic Trail. 

Objective: To preserve and protect designated National 

Historic Trails and the natural setting in which they 

occur.

Exception: No exceptions will be granted unless the 

operator demonstrates through a submitted plan that 

impacts to the area and its users can be mitigated. 

Modification: No modifications will be granted unless 

impacts of the action will not be apparent to user along 

the trail. 

Waiver: May be granted if impacts can be mitigated so 

that area values and user experiences are not negatively 

affected. 

RESOURCE: RIVERS SUITABLE FOR 

WILD AND SCENIC RIVER 

DESIGNATION

Stipulation: No Surface Occupancy. Surface 

occupancy would be prohibited within 1⁄2 mile either side 

of the active river channel. This would apply to the 

following river segment lengths: 3.1 miles of the upper 

Missouri River and 2.6 miles of Muskrat Creek. 

Objective: To protect river corridors and their 

Outstandingly Remarkable Values considered suitable 

for inclusion in the National Wild and Scenic Rivers 

system and the associated outstandingly remarkable 

values.

Exception: None.

Modification: None.

Waiver: None.

RESOURCE: RECREATION AND PUBLIC 

PURPOSES ACT LEASES AND PATENTS,

AND 2920 AUTHORIZATIONS

Stipulation: No Surface Occupancy (NSO). Surface 

Occupancy and use is prohibited on Recreation & Public 

Purposes leases and patents and on leases and permits 

authorized under regulations found at 43 CFR 2920.

Objective: To protect developed facilities and 

commercial, recreational, and public uses and prevent 

incompatible uses on existing authorized areas.

Exception: An exception to this stipulation may be 

granted by the authorized officer if the operator submits 

a plan demonstrating that impacts from the proposed 

action are acceptable or can be adequately mitigated in 

coordination with the holder of the land use 

authorization.

Modification: The area affected by this stipulation may 

be modified by the authorized officer if land use 

authorization boundaries are modified.

Waiver: This stipulation may be waived by the 

authorized officer if land use authorization boundaries 

are modified.

RESOURCE: LANDS ACQUIRED WITH 

LAND AND WATER CONSERVATION 

FUNDS (LWCF)

Stipulation: No Surface Occupancy. Surface 

occupancy would be prohibited on lands acquired with 

Land and Water Conservation Funds (approximately 

7,677 acres as of the approval date of this RMP). 

Objective: To protect surface values on lands acquired 

with LWCF funds. These lands are traditionally acquired 
Fluid Minerals

Record of Decision (ROD)/Approved RMP 221

for the purpose of protecting and managing for wildlife 

habitat or watershed values. 

Exception: None.

Modification: None.

Waiver: None.

ADDITIONAL INFORMATION

The following forms are enclosed below. 

Form 3100-11: Offer to Lease and Lease for Oil 

and Gas

Form 3109-1: Lease Stipulations, Bureau of 

Reclamation

Form GP-135: Special Stipulation, Bureau of 

Reclamation
Appendix H

222 Record of Decision (ROD)/Approved RMP
Fluid Minerals

Record of Decision (ROD)/Approved RMP 223
Appendix H

224 Record of Decision (ROD)/Approved RMP
Fluid Minerals

Record of Decision (ROD)/Approved RMP 225
Appendix H

226 Record of Decision (ROD)/Approved RMP

Form 3109-1

(December 1972)

(formerly 3103-1) LEASE STIPULATIONS

BUREAU OF RECLAMATION

 

The lessee agrees to maintain, if required by the lessor during the 

period of this lease, including any extension thereof, an additional 

bond with qualified sureties in such sum as the lessor, if it considers 

that the bond required under Section 2(a) is insufficient, may at any 

time require:

 (a) to pay for damages sustained by any reclamation homestead 

entryman to his crops or improvements caused by drilling or other 

operations of the lessee, such damages to include the reimbursement 

of the entryman by the lessee, when he uses or occupies the land of 

any homestead entryman, for all construction and operation and 

maintenance charges becoming due during such use or occupation 

upon any portion of the land so used and occupied;

 (b) to pay any damage caused to any reclamation project or water 

supply thereof by the lessee's failure to comply fully with the 

requirements of this lease; and

 (c) to recompense any nonmineral applicant, entryman, purchaser 

under the Act of May 16, 1930 (46 Stat. 367), or patentee for all 

damages to crops or to tangible improvements caused by drilling or 

other prospecting operation, where any of the lands covered by this 

lease are embraced in any nonmineral application, entry, or patent 

under rights initiated prior to the date of this lease, with a reservation 

of the oil deposits, to the United States pursuant to the Act of July 17, 

1914 (38 Stat. 509).

As to any lands covered by this lease within the area of any 

Government reclamation project, or in proximity thereto, the lessee 

shall take such precautions as required by the irrigation under such 

project or to the water supply thereof; provided that drilling is 

prohibited on any constructed works or right-of-way of the Bureau of 

Reclamation, and provided, further, that there is reserved to the 

lessor, its successors and assigns, the superior and prior right at all 

times to construct, operate, and maintain dams, dikes, reservoirs, 

canals, wasteways, laterals, ditches, telephone and telegraph lines, 

electric transmission lines, roadways, appurtenant irrigation 

structures, and reclamation works, in which construction, operation, 

and maintenance, the lessor, its successors and assigns, shall have the 

right to use any or all of the lands herein described without making 

compensation therefore, and shall not be responsible for any damage 

from the presence of water thereon or on account of ordinary, 

extraordinary, unexpected , or unprecedented floods. That nothing 

shall be done under this lease to increase the cost of, or interfere in 

any manner with, the construction, operation, and maintenance of 

such works. It is agreed by the lessee that, if the construction of any 

or all of said dams, dikes, reservoirs, canals, wasteways, laterals, 

ditches, telephone or telegraph lines, electric transmission lines, 

roadways, appurtenant irrigation structures or reclamation works 

across, over, or upon said lands should be made more expensive by 

reason of the existence of the improvements and workings of the 

lessee thereon, said additional expense is to be estimated by the 

Secretary of the Interior, whose estimate is to be final and binding 

upon the parties hereto, and that within thirty (30) days after demand 

is made upon the lessee for payment of any such sums, the lessee will 

make payment thereof to the United States, or its successors, 

constructing such dams, dikes, reservoirs, canals, wasteways, 

laterals, ditches, telephone and telegraph lines, electric transmission 

lines, roadways, appurtenant irrigation structures, or reclamation 

works, across, over, or upon said lands; provided, however, that 

subject to advance written approval by the United States, the location 

and course of any improvements or works and appurtenances may be 

changed by the lessee; provided , further, that the reservations, 

agreements, and conditions contained in the within lease shall be and 

remain applicable notwithstanding any change in the location or 

course of said improvements or works of lessee. The lessee further 

agrees that the United States, its officers, agents, and employees, and 

its successors and assigns shall not be held liable for any damage to 

the improvements or workings of the lessee resulting from the 

construction, operation, and maintenance of any of the works 

hereinabove enumerated. Nothing in this paragraph shall be construed 

as in any manner limiting other reservations in favor of the United 

States contained in this lease.

THE LESSEE FURTHER AGREES That there is reserved to the 

lessor, its successors and assigns, the prior right to use any of the 

lands herein leased, to construct, operate, and maintain dams, dikes, 

reservoirs, canals, wasteways, laterals, ditches, telephone and 

telegraph lines, electric transmission lines, roadways, or appurtenant 

irrigation structures, and also the right to remove construction 

materials therefrom, without any payment made by the lessor or its 

successors for such right, with the agreement on the part of the lessee 

that if the construction of any or all of such dams, dikes, reservoirs, 

canals, wasteways, laterals, ditches, telephone and telegraph lines, 

electric transmission lines, roadways, or appurtenant irrigation 

structures across, over, or upon said lands or the removal of 

construction materials therefrom, should be made more expensive by 

reason of the existence of improvements or workings of the lessee 

thereon, such additional expense is to be estimated by the Secretary of 

the Interior, whose estimate is to be final and binding upon the parties 

hereto, and that within thirty (30) days after demand is made upon the 

lessee for payment of any such sums, the lessee will make payment 

thereof to the United States or its successors constructing such dams, 

dikes, reservoirs, canals, wasteways, laterals, ditches, telephone and 

telegraph lines, electric transmission lines, roadways, or appurtenant 

irrigation structures across, over, or upon said lands or removing 

construction materials therefrom. The lessee further agrees that the 

lessor, its officers, agents, and employees and its successors and 

assigns shall not be held liable for any damage to the improvements 

or workings of the lessee resulting from the construction, operation, 

and maintenance of any of the works herein above enumerated. 

Nothing contained in this paragraph shall be construed as in any 

manner limiting other reservations in favor of the lessor contained in 

this lease.
Fluid Minerals

Record of Decision (ROD)/Approved RMP 227

To insure against the contamination of the waters of the Reservoir,

 Project, State of , the lessee agrees that the following further conditions shall apply to 

all drilling and operations on lands covered by this lease, which lie within the flowage or drainage area of the 

Reservoir, as such area is defined by the Bureau of Reclamation: 

1. The drilling sites for any and all wells shall be approved by the Superintendent, Bureau of 

Reclamation, Project, before drilling begins. Sites for the construction of pipe-line rights-of-way or other 

authorized facilities shall also be approved by the Superintendent before construction begins.

2. All drilling or operation methods or equipment shall, before their imployment, be inspected 

and approved by the Superintendent of the Project,

 , and by the supervisor of the U.S. Geological Survey having jurisdiction over the area.

GPO 854-703
Appendix H

228 Record of Decision (ROD)/Approved RMP

GP-135

(02/03)

SPECIAL STIPULATION - BUREAU OF RECLAMATION

To avoid interference with recreation development and/or impacts to fish and wildlife habitat and to assist in preventing damage to any Bureau of 

Reclamation dams, reservoirs, canals, ditches, laterals, tunnels, and related facilities, and contamination of the water supply therein, the lessee agrees 

that the following conditions shall apply to all exploration and developmental activities and other operation of the works thereafter on lands covered by 

this lease:

1. Prior to commencement of any surface-disturbing work including drilling, access road work, and well location construction, a surface use 

and operations plan will be filed with the appropriate officials. A copy of this plan will be furnished to the Regional Director, Great Plains Region, 

Bureau of Reclamation, P.O. Box 36900, Billings, MT 59107-6900, for review and consent prior to approval of the plan. Such approval will be 

conditioned on reasonable requirements needed to prevent soil erosion, water pollution, and unnecessary damages to the surface vegetation and other 

resources, including cultural resources, of the United States, its lessees, permittees, or licensees, and to provide for the restoration of the land surface 

and vegetation. The plan shall contain provisions as the Bureau of Reclamation may deem necessary to maintain proper management of the water,

recreation, lands structures, and resources, including cultural resources, within the prospecting, drilling, or construction area.

 Drilling sites for all wells and associated investigations such as seismograph work shall be included in the above-mentioned surface use 

and operation plan.

 If later explorations require departure from or additions to the approved plan, these revisions or amendments, together with a justification 

statement for proposed revisions, will be submitted for approval to the Regional Director, Great Plains Region, Bureau of Reclamation, or his 

authorized representative.

Any operations conducted in advance of approval of an original, revised, or amended prospecting plan, or which are not in accordance 

with an approved plan constitute a violation of the terms of this lease. The Bureau of Reclamation reserves the right to close down operations until such 

corrective action, as is deemed necessary, is taken by the lessee.

2. No occupancy of the surface of the following excluded areas is authorized by this lease. It is understood and agreed that the use of these 

areas for Bureau of Reclamation purposes is superior to any other use. The following restrictions apply only to mineral tracts located within the 

boundary of a Bureau of Reclamation project where the United States owns 100 percent of the fee mineral interest.

a. Within 500 feet on either side of the centerline of any and all roads or highways within the leased area.

b. Within 200 feet on either side of the centerline of any and all trails within the leased area.

c. Within 500 feet of the normal high-water line of any and all live streams in the leased area.

d. Within 400 feet of any and all recreation developments within the leased area.

e. Within 400 feet of any improvements either owned, permitted, leased, or otherwise authorized by the Bureau of

Reclamation within the leased area.

f. Within 200 feet of established crop fields, food plots, and tree/shrub plantings within the leased area.

g. Within 200 feet of slopes steeper than a 2:1 gradient within the leased area.

h. Within established rights-of-way of canals, laterals, and drainage ditches within the leased area.

i. Within a minimum of 500 feet horizontal from the centerline of the facility or 50 feet from the outside toe of the canal, lateral, or 

drain embankment, whichever distance is greater, for irrigation facilities without clearly marked rights-of-way within the leased area.

j. Providing that appropriate environmental compliance measures can be ensured, and providing further that Reclamation project works 

and other public interests can be protected, Reclamation may consider, on a case-by-case basis, waiving the requirement specified in Section 2 hereof. 

HOWEVER, LESSEES ARE ADVISED THAT OBTAINING SUCH A WAIVER CAN BE A DIFFICULT, TIME CONSUMING, AND 

COSTLY PROCESS WITH NO GUARANTEE THAT RECLAMATION WILL GRANT THE REQUESTED WAIVER.
Fluid Minerals

Record of Decision (ROD)/Approved RMP 229

3. No occupancy of the surface or surface drilling will be allowed in the following areas. In addition, no directional drilling will be allowed 

that would intersect the subsurface zones delineated by a vertical plane in these areas. The following restrictions apply only to mineral tracts located 

within the boundary of a Bureau of Reclamation project, where the United States owns 100 percent of the fee mineral interest in said tract, or tracts.

a. Within 1,000 feet of the maximum water surface, as defined in the Standard Operating Procedures (SOP), of any reservoirs and 

related facilities located within the leased area.

b. Within 2,000 feet of dam embankments and appurtenance structures such as spillway structures, outlet works, etc.

c. Within one-half (1/2) mile horizontal from the centerline of any tunnel within the leased area.

d. Providing that appropriate environmental compliance measures can be ensured, and providing further that Reclamation project works 

and other public interests can be protected. Reclamation may consider, on a case-by-case basis, waiving the requirements specifies in Section 3 hereof. 

HOWEVER, LESSEES ARE ADVISED THAT OBTAINING SUCH A WAIVER CAN BE A DIFFICULT, TIME CONSUMING, AND 

COSTLY PROCESS WITH NO GUARANTEE THAT RECLAMATION WILL GRANT THE REQUESTED WAIVER.

4. The distances stated in items 2 and 3 above are intended to be general indicators only. The Bureau of Reclamation reserves the right to 

revise these distances as needed to protect Bureau of Reclamation facilities.

5. The use of explosives in any manner shall be so controlled that the works and facilities of the United States, its successors and assigns, 

will in no way be endangered or damaged. In this connection, an explosives use plan shall be submitted to and approved by the Regional Director, 

Great Plains Region, Bureau of Reclamation, or his/her authorized representative.

6. The lessee shall be liable for all damage to the property of the United States, its successors or assigns, resulting from the exploration, 

development, or operation of the works contemplated by this lease, and shall further hold the United States, its successors or assigns, and its officers, 

agents, and employees, harmless from all claims of third parties for injury or damage sustained or in any way resulting from the exercise of the rights 

and privileges conferred by the lease.

7. The lessee shall be liable for all damages to crops or improvements of any entryman, nonmineral applicant, or patentee, their successors 

or assigns, caused by or resulting from the drilling or other operations of the lessee, including reimbursement of any entryman or patentee, their 

successors or assigns, for all construction, operation, and maintenance charges becoming due on any portion of their said lands damaged as a result of 

the drilling or other operation of the lessee.

8. In addition to any other bond required under the provisions of this lease, the lessee shall provide such bond as the United States may at 

any time require for damages which may arise under the liability provisions of Section six (6) and seven (7) above.