[Federal Register Volume 75, Number 36 (Wednesday, February 24, 2010)]
[Notices]
[Pages 8297-8299]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-3587]


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DEPARTMENT OF AGRICULTURE

Forest Service


Huron-Manistee National Forests, Michigan, USA and State South 
Branch 1-8 Well

AGENCY: Forest Service, USDA.

ACTION: Notice of intent to prepare an environmental impact statement.

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SUMMARY: The Huron-Manistee National Forests (Forest Service) and the 
Bureau of Land Management (BLM) as a Cooperating Agency will prepare an 
environmental impact statement (ETS) to assess the environmental 
impacts of an industry proposal to drill one exploratory natural gas 
well (the USA & State South Branch 1-8 (SB 1-8) well) on National 
Forest System lands. The EIS will also assess the impacts of 
constructing necessary infrastructure including production facility and 
flowline, to develop the well should it be capable of producing 
hydrocarbons in commercial quantities. This analysis will allow the 
agencies to make their respective decisions on this proposal in 
accordance with Federal regulations.

DATES: Comments concerning the scope of the analysis must be received 
by April 12, 2010. The draft environmental impact statement is expected 
in December, 2010 and the final environmental impact statement is 
expected by July 2011.

ADDRESSES: Send written comments to Lauri Hogeboom, Interdisciplinary 
Team Leader, Huron-Manistee National Forests, 1755 S. Mitchell Street, 
Cadillac, MI, 49601; fax: 231-775-5551. Send electronic comments to: 
<a href="/cdn-cgi/l/email-protection#f3909c9e9e969d8780de9692808796819dde9b86819c9dde9e929d9a80879696b39580dd959697dd8680"><span class="__cf_email__" data-cfemail="beddd1d3d3dbd0cacd93dbdfcdcadbccd093d6cbccd1d093d3dfd0d7cdcadbdbfed8cd90d8dbda90cbcd">[email protected]</span></a>.

FOR FURTHER INFORMATION CONTACT: Ken Arbogast, Huron-Manistee National 
Forests; telephone: 231-775-2421; fax: 231-775-5551. See address above 
under Addresses. Copies of documents may be requested at the same 
address. Another means of obtaining information is to visit the Forest 
Web page at http://www.fs.fed.us/r9/hmnf then click on ``Project and 
Planning,'' then ``Mio District,'' and then ``USA and State South 
Branch 1-8.'' Individuals who use telecommunication devices for the 
deaf (TTY) may call 1-231-775-3183.

SUPPLEMENTARY INFORMATION:

Purpose and Need for Action

    The purpose for action is to respond to the proponent, Savoy 
Energy, LP's (Savoy) proposal to exercise its rights under Federal 
leases to drill for, extract, remove and dispose of all the oil and gas 
from leased lands. The Huron-

[[Page 8298]]

Manistee National Forests (Forest Service) and the Bureau of Land 
Management (BLM) received an Application for Permit to Drill (APD) 
including a Surface Use Plan of Operation (SUPO) from Savoy.
    A response to the application is needed because Savoy has lawful 
oil and gas rights to three State and three Federal leases in a 640 
acre drilling unit and the Forest Supervisor (FS) and the Milwaukee 
Field Office Manager (BLM) are required by regulation to evaluate and 
decide upon operating plans received from industry for exploration and 
development of Federal leases. The agencies must ensure Savoy's 
operating plan is consistent with the terms and stipulations of the 
Federal mineral leases, applicable laws and regulations, the Huron-
Manistee's Land and Resource Management Plan, and identify any 
additional conditions needed to protect Federal resources.
    The BLM ultimately renders a decision on the APD, and the Forest 
Service must review and decide upon the SUPO before the BLM can make 
its APD decision.

Proposed Action

    The Forest Service proposes to authorize Savoy to conduct surface 
operations associated with accessing, drilling, testing, and completing 
the USA and State South Branch 1-8 Well, as described in detail under 
Alternative 2: The Proposed Action and described in the Surface Use 
Plan of Operations (SUPO) and Application for Permit to Drill (APD) 
submitted to the BLM. The Forest Service would approve the Surface Use 
Plan of Operations for the USA and State South Branch 1-8 Well.
    The BLM proposes to authorize Savoy to conduct operations to drill 
test and complete the proposed exploratory well on the subject leases 
and approve the APD submitted for this well.
    The Forest Service and BLM authorization would include reasonable 
and necessary mitigation to ensure Savoy's operations would be in 
compliance with law, regulation, and policy.
    Savoy holds six subsurface mineral leases included in a 640 acre 
drilling unit in South Branch Township (T25N, R1W), Crawford County, 
Michigan, Section 7 E \1/2\, Section 8 W \1/2\. This 640 acre drilling 
unit includes three State and three Federal oil and gas leases. Savoy 
is proposing to drill directionally from National Forest System lands 
within the boundaries of the Huron-Manistee National Forests to the 
bottomhole located in Federal mineral lease MIES 50521 approximately 
2,200 feet NW of the surface hole and construct associated 
infrastructure including a production facility and flowline if Savoy 
determines the well could produce a commercial product.
    Savoy's proposal includes: Leveling of the well pad (approximately 
3.5 acres) for the drilling rig, equipment, and pit, including some 
minor cut and fill using a bulldozer to level the surface. It also 
includes the use, reconstruction and maintenance of existing roads for 
year-round access, including snow plowing along portions of River Lake 
Road (aka Hickey Creek Road), FSR 4209 (Mason Chapel Road), and FSR 
4208, to access the well site; construction and maintenance of 50 feet 
of new road, 14 feet wide with three feet of clearing on each side of 
the new road (approximately 0.05 acre of disturbance) to access the 
well pad from FSR 4208; and drilling a water well at the well pad site 
to provide water for drilling and future well maintenance, if needed. 
Following these activities drilling equipment would be moved in and 
rigged up.
    Drilling and well completion would be expected to take 45 days. 
Drilling operations would be restricted to a time period of December 1 
to April 15. The well pad would be approximately 3.5 acres in size. 
Standard and accepted drilling techniques and practices would be used 
and must comply with mininum operating standards approved by Michigan 
Department of Natural Resouces and Environment and the BLM. This 
includes a casing program, pressure control equipment, and proposed 
drilling fluids program. Hazardous materials, including stimulation and 
completion fluids, would be contained in steel tanks and disposed of by 
a licensed waste hauler.
    Additional actions proposed if the well is productive include: 
construction of a production facility located in SE, Section 9, T25N, 
Ri W, (approximately 1.5 miles from the well pad) on approximately 2.0 
acres, including intallation of a gas/water separator, oil and brine 
tanks, dehydrator, compressor, volume bottle, and measurement 
(monitoring) equipment; installation of flowlines from the well site to 
the production facility site, buried along side the road bed and a 
pipeline to the Michigan Consolidated Gas transmission line, totaling 
approximately 1.7 miles, and reclamation of the well pad, following 
drilling and completion, leaving \1/3\ acre used for well operations.
    If the well is not capable of commercial production, the operator 
plug and abandon the well under applicable State and BLM rules. 
Reclamation of the site according to the reclamation plan included with 
the SUPO would occur within six months of completion of well plugging. 
This would include: Recontouring and stabilizing all excavations, 
topsoil removed during leveling will be spread evenly over the site 
except the roads; the site would be seeded with a Forest Service 
approved mix; the flowline route would be restored and the 50 foot 
access road would be obliterated.
    Michigan Department of Natural Resources and Environment's Water 
Management Practices on Forest Land will be used to manage the roads. 
Additionally, prior to reconstructing FSR 4209, approximately 150 feet 
of silt fence would be placed per FS direction adjacent to the south 
side of the road for wetland protection.
    The operator would maintain a dike around the condensate and brine 
tanks at the production facility of sufficient size and height so as to 
contain 150% of the total capacity of the tanks.
    The width of the reconstucted roads would not exceed 14 feet. An 
additional 3 feet of clearing would be done on each side of the road. 
Clearing width would not exceed 20 feet.
    Soil disturbed with the placement of the flowline/pipeline would be 
seeded with mix specified by the Forest Service.
    Roads into the well pad and production facility would be gated and 
locked.
    Road design and construction would take into account visual 
quality.
    Minimization of noise is to be emphasized during drilling, 
completion, and production operations. Hospital-type engine mufflers 
would be used on drilling, completion, and work over rigs, mud pumps, 
and compressors. No pumps or motors would be placed on the surface of 
the well or at the well site. The total sound level for the production 
facility would not exceed 36 dBA at 1,320 feet if more than one well is 
being processed. If the production facility is processing gas from one 
well, the sound level would not exceed 33 dBA at 1,320 feet. The 
production facility would be constructed to meet these sound levels.
    Off-road equipment would be inspected by a Forest Service 
representative and washed if needed to prevent introduction of non-
native invasive plants that are not already present in the project 
area.
    Protection will be provided for Endangered, Threatened and 
Sensitive Species in accordance with law, regulation and policy.
    The Forest Service, the BLM, and MDNRE will coordinate inspections 
to ensure compliance with requirements.

[[Page 8299]]

Possible Alternatives

    No Action alternative: The Forest Service would not approve the 
SUPO and br the BLM would not approve the APD. Current direction would 
continue to guide management of the project area. The USA and State 
South Branch 1-8 well would not be drilled, no flow lines would be 
installed, and no production facility would be constructed.
    Alternative 2: Modification of Savoy's Proposal--The Forest Service 
would approve the SUPO and the BLM would approve the APD subject to 
additional conditions of approval necessary for resource protection. 
Alternative 2 would be the same as the proposed action except with 
additional conditions of approval to the SUPO and APD based on 
mitigation developed to respond to the issues raised.

Lead and Cooperating Agencies

    The BLM and the Forest Service entered into an Memorandum of 
Understanding (MOU) in April 2006 ``to establish procedures for the 
coordinated dministration of oil and gas operations on Federal leases 
within the National Forest System (NFS).'' The MOU identifies the 
responsibilities of the agencies to provide efficient, effective 
adherence to rules and regulations for each. Specifically, the MOU 
states,

    ``111A3. `* * * the Forest Service has the full responsibility 
and authority to approve and regulate all suface -disturbing 
activities associated with oil and gas exploration and development 
through analysis and approval of the SUPO component of an APD.' '' 
VB] Forest Service will: Serve as lead agency for oil and gas * * * 
environmental analyses required for APD: * * *''
    ``111A2. The BLM has the authority and responsibility to provide 
final approval of all APDs, including those for operations on 
Federals leases on NFS lands * * * The BLM has the authority and 
responsibility to regulate all down-hole operations and directly 
related surface activities and use, and provide approval of the 
drilling plan and final approval of the APD on NFS lands.''

    This MOU is consistent with the NEPA regulations, 40 CFR 1501.5 
Lead Agency and 1501.6 Cooperating Agencies, identifying the Forest 
Service as the lead agency and the BLM as the cooperating agency.

Responsible Official for Lead Agency

    Barry Paulson, Forest Supervisor, Huron-Manistee National Forests, 
1755 S. Mitchell Street, Cadillac, MI 49601.

Responsible Official for Cooperating Agency

    Mark Storzer, Field Manager, Bureau of Land Management, Milwaukee 
Field Office, 626 E Wisconsin Ave. Suite 200, Milwaukee, WI 53202-46 
17.

Nature of Decision To Be Made

    The Forest Supervisor of the Huron-Manistee National Forests will 
issue a decision on whether to approve, approve subject to specified 
conditions, or disapprove for stated reasons, the proposed Surface Use 
Plan of Operations or development of the well and construction and 
operation of the flowline/pipeline and production facilities. 
Similarly, the BLM Field Manager in Milwaukee will issue a decision on 
whether to approve the Application for Permit to Drill as submitted, 
approve subject to appropriate modifications or conditions, or 
disapprove for stated reasons.

Preliminary Issues

    We expect issues to include possible effects of noise, odor and 
changes to the visual quality from the project on anglers and visitors 
to the Semi-Primitive Nonmotorized area and Mason Tract, as well as the 
possible effects of the project on tourism in the county.

Permits and Licenses Required

    Savoy will be required to obtain a State permit for drilling from 
the Michigan Department of Natural Resources and Environment.

Scoping Process

    This notice of intent initiates the scoping process, which guides 
the development of the environmental impact statement. The Forest 
Service plans to scope for information by contacting persons and 
organizations interested or potentially affected by the proposed action 
by using mailings, public announcements, and personal contacts.
    It is important that reviewers provide their comments at such times 
and in such manner that they are useful to the agency's preparation of 
the environmental impact statement. Therefore, comments should be 
provided prior to the close of the comment period and should clearly 
articulate the reviewer's concerns and contentions. The submission of 
timely and specific comments can affect a reviewer's ability to 
participate in subsequent administrative appeal or judicial review.
    We are especially interested in information that might identify a 
specific undesired result of implementing the proposed action. Comments 
will be used to help formulate alternatives to the proposed action. 
Please make your written comments as specific as possible as they 
relate to the proposed action, and include your name, address, and if 
possible, telephone number and e-mail address.
    Comments received in response to this solicitation, including names 
and addresses of those who comment, will be considered part of the 
public record on this proposed action and will be available for public 
inspection. Comments submitted anonymously will be accepted and 
considered; however, those who submit anonymous comments will not have 
standing to appeal the subsequent decisions under 36 CFR part 215. 
Additionally, pursuant to 7 CFR 1.27(d), any persons may request the 
agency to withhold a submission from the public record by showing how 
the FOIA (Freedom of Information Act) permits such confidentiality. 
Persons requesting such confidentiality should be aware that under FOIA 
confidentiality may be granted in only very limited circumstances, such 
as to protect trade secrets. The Forest Service will inform the 
requester of the agency's decision regarding the request for 
confidentiality and, should the request be denied, return the 
submission and notify the requester that the comments may be 
resubmitted with or without name and address within 90 days.

    Dated: February 16, 2010.
Barry Paulson,
Forest Supervisor.
[FR Doc. 2010-3587 Filed 2-23-10; 8:45 am]
BILLING CODE 3410-11-M


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