1 Kelly, Shaheerah

From: Dwight Mallory <Dmallory@resoluteenergy.com>

Sent: Thursday, May 14, 2015 12:44 PM

To: Kelly, Shaheerah Subject: FW: The McElmo Flare Project

Attachments: removed.txt; Revised MCU NHPA SOW.docx

FYI

The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the co rrect file and location. Dwight E. Mallory Environmental/Regulatory Manager Resolute Energy Corporation 1700 Lincoln Street, Suite 2800 Denver, CO 80203
Direct: 303-573-4886 X 1165

From: Dwight Mallory
Sent: Friday, May 01, 2015 1:38 PM

To: 'Saanii' Subject: RE: The McElmo Flare Project

Rena,

I did have a lengthy discussion with Shaheerah Kelley at EPA in an atte mpt to better understand what EPA
needs to move forward with this. Af ter talking with Shaheera h, I think the Scope of Wo rk you put together for
me is more extensive than what we n eed for this undertaking. The goal of this project is not to obtain a Cultural Resources Compliance Form from Navajo Nation HPD, but simply to provide U.S. EPA with a listing of “historic properties” that are located w ithin the 2 km APE. After that, it is EPA’s responsibility to consult with the Navajo Nation HPD and determine what a dditional information or action is needed.

The current SOW states that the “project will consis t of completing relocations and reassessments of 52 previously recorded archeological sites.” EPA simply n eeds a report that identifies “historic properties”, as defined at 36 CFR 800.16(l), th at are within the 2 km APE. Since there is no new surfa ce disturbance authorized by EPA’s permit action, EPA doesn’t need the existing s ites relocated, they just need to know, based on the already available information, which s ites qualify as “historic properties” under the NHPA. Only those sites that do qualify should be addre ssed in the report.

The only field work that is necessary at this point is a review of the Navajo In-use sites that are located in the 2 km APE to determine if any of those are eligible for lis ting as “historic properties”. Again, only those sites that qualify as “historic propertie s” under the NHPA should be ad dressed in the report.

Shaheerah also noted that Section B.3 (Report Preparation) says that the report will be submitted directly to the Navajo Nation HPD. However, since th e report is for a federal permit and EPA is the acting agency, the final report should be submitted to EPA. It is EPA’s responsib ility to consult with the Navajo Nation HPD under the NHPA and determine what, if any, impact the undertak ing will have and how to address those impacts.2 I apologize for all of the back and forth, but this is an unfamiliar requirement for me and I need to make sure that we were headed in the right di rection with EPA since this is bei ng done to satisfy their consultation requirements.

I have attached a draft Scope of Work to clarif y what needs to be done.

Please let me know this is still some thing you can help us with and, if so, what the revised cost/timeline will
look like.

Please feel free to call me to discuss. I will be travelling next week, but am available by cell.

Dwight E. Mallory Environmental/Regulatory Manager Resolute Energy Corporation 1700 Lincoln Street, Suite 2800 Denver, CO 80203
Direct: 303-573-4886 X 1165
Cell: 970-302-8620

From: Saanii [ mailto:dinetahdoo@yahoo.com ]
Sent: Friday, May 01, 2015 9:34 AM

To: Dwight Mallory Subject: Re: The McElmo Flare Project

Good morning Dwight,

I am wondering if you had any issues or discussi ons about the SOW we se nt in? Rena Martin

Dinetahdoo Cultural Resour ces Management, LLC P.O. Box 2012, Farmington NM 87499 10076 US Hwy 371, S of Farmington, NM Phone (505) 960-9478Fax (505) 960-9749
Email dinetahdoo@yahoo.com
Website: www.dinetahdoo.com

From: Dwight Mallory < Dmallory@resoluteenergy.com > To: 'Saanii' < dinetahdoo@yahoo.com > Sent: Monday, April 13, 2015 11:53 AM Subject: RE: The McElmo Flare Project

Rena,

I have received approval from EPA to move forward with th e scope of work as outlined in the attached email.

Dwight E. Mallory Environmental/Regulatory Manager Resolute Energy Corporation 1700 Lincoln Street, Suite 2800 Denver, CO 802033 Direct: 303-573-4886 X 1165

From: Saanii [ mailto:dinetahdoo@yahoo.com ]
Sent: Monday, April 06, 2015 11:54 AM

To: Dwight Mallory Subject: Re: The McElmo Flare Project

Good morning Dwight,

While we were in Window Rock last week, the staff t ook a look at the USGS map th at overs the McElmo Flare project and counted a minimum of 21 previously inventoried archaeological sites in the new 2 mile radius project area, and goggle earth shows at least 8 in-use homes too. So we have some idea how much work to expect when Resolute, USEPA and the NN agree to the next step of work for the flare.

We can do a cost estimate when everyone is in agreement perhaps, we are done?

Rena Martin

Dinetahdoo Cultural Resour ces Management, LLC P.O. Box 2012, Farmington NM 87499 10076 US Hwy 371, S of Farmington, NM Phone (505) 960-9478Fax (505) 960-9749
Email dinetahdoo@yahoo.com
Website: www.dinetahdoo.com

This e-mail message and any attachments are for the sole use of the intended reci pient(s) and may contain confidential, privileged, and proprietary information of Resolute Energy Corporati on. Any unauthorized review, use, disclosure or distribution may be prohibited under law. If you are not th e intended recipient, please contact the sender by reply E-mail of any erroneous transmission, and destroy the original E- mail, any attachments, and all copies of the original message. Thank you.

Mr. Begay,

I am following up on our conversation this afternoon to c onfirm that the scope of work outlined in the email below will satisfy NNHPD’s consultation requirements with respect to the MCU PSD permit amendment.

Please respond to let me know if this is a correct interpretation of what needs to be done.

Dwight E. Mallory Environmental/Regulatory Manager Resolute Energy Corporation 1700 Lincoln Street, Suite 2800 Denver, CO 802034 Direct: 303-573-4886 X 1165

From: Dwight Mallory
Sent: Thursday, February 26, 2015 11:51 AM

To: 'timothy_begay@yahoo.com'
Cc: Patrick Flynn; 'Saanii'; Kelly, Shaheerah Subject: FW: NHPA Compliance / Area of Pote ntial Effects for MCU Project

Mr. Begay,

I wanted to follow up our conversation on Tuesday rega rding NHPA compliance and Tr ibal Consultation for the MCU PSD permit amendment. I am copying Shaheerah Kell ey at EPA Region 9, as well as Rena Martin at Dinetahdoo Cultural Resources Manage ment, LLC (DCRM) to help make sure we are on the same page regarding what needs to be done to satisfy the NHPA compliance requirements for this undertaking. I invite either of them to respond with questions or comments in case I have overlooked any details.

When we spoke, you agreed that a pedestrian survey of the APE won’t be necessary since there is not any land clearing or other surface disturbing work being done as part of the PSD permit amendment. Based on our conversation, I am proposing the scope of work outlin ed below to complete the NHPA/Tribal Consultation

assessment.

1) Review NNHPD files and identify previously record ed sites within the APE that qualify as historic properties as defined in 36 CFR Part 800; 2) Review residential home sites within the APE and determine if any of these sites qualify as historic properties as defined in 36 CFR Part 800; 3) Assess the potential for adverse effects to each hi storic property identified within the APE, including visual, atmospheric or audible effect s, that may diminish the integrity or use of the historic property; 4) Assess options for avoiding, minimizing or mitig ating adverse effects on identified historic properties; 5) Prepare an assessment report in accordance wi th Navajo Nation and 36 CFR Part 800 Rules and Regulations. The report will include: a. A description of the undertaking, b. A description and map of the APE,
c. A list or table of historic properties within the APE; d. A list or table of potential adverse effects a nd measures available for avoiding, minimizing or mitigating the adverse effects.

Please let me know if this is a correct interpreta tion of what we discussed or if there are other requirements. Once you have confirmed that we are headed in th e right direction, I will di rect DCRM to begin.

Thank you.

Dwight E. Mallory Environmental/Regulatory Manager Resolute Energy Corporation 1700 Lincoln Street, Suite 2800 Denver, CO 80203
Direct: 303-573-4886 X 11655 From: Kelly, Shaheerah [ mailto:Kelly.Shaheerah@epa.gov ]
Sent: Thursday, February 19, 2015 2:47 PM

To: Dwight Mallory
Cc: Patrick Flynn Subject: RE: NHPA Compliance / Area of Pote ntial Effects for MCU Project

Dwight,

I am providing the contact info below for the THPO we worked with (since there are other staff in the HPO):

Timothy Begay
928-871-7152 Timothy_begay@yahoo.com

************************************ Shaheerah Kelly Permits Office, Air Division (AIR-3) U.S. Environmental Protection Agency, Region 9 San Francisco, CA 94105
Phone: 415-947-4156
Fax: 415-947-3579
Email: kelly.shaheerah@epa.gov

From: Dwight Mallory [ mailto:Dmallory@resoluteenergy.com ]
Sent: Thursday, February 19, 2015 1:44 PM

To: Kelly, Shaheerah
Cc: Patrick Flynn Subject: RE: NHPA Compliance / Area of Pote ntial Effects for MCU Project

Thank you Shaheerah.

I have asked Rena Martin to put together a revised sc ope of work for completing the inventory and will get you a copy before they start the field work. As you can see fr om the attached map, the 2 km APE will be entirely of the Navajo Reservation, within the Aneth Chapter.

Dwight E. Mallory Environmental/Regulatory Manager Resolute Energy Corporation 1700 Lincoln Street, Suite 2800 Denver, CO 80203
Direct: 303-573-4886 X 1165

From: Kelly, Shaheerah [ mailto:Kelly.Shaheerah@epa.gov ]
Sent: Thursday, February 19, 2015 7:25 AM

To: Dwight Mallory
Cc: Patrick Flynn; Kelly, Shaheerah Subject: NHPA Compliance / Area of Pote ntial Effects for MCU Project

Dwight,6 EPA spoke to the THPO yesterday concerning the area of potential effects (APE) for the MCU Main Flare. The EPA and THPO agreed that the APE for this project s hould be a 2 km (1.2 mi) radi us around the Main Flare.
The THPO recommended that the assessm ent of historic properti es within the APE also identify residential
homes and determine whether these home s are historic properties as defined in 36 CFR Part 800. In general, the
assessment must include the information delineated in 36 CFR 800.4 and 800.5 (e.g. identify the APE and the historic properties potentially aff ected by the undertaking; if there ar e historic properties, assess the undertaking’s effects on these properties including any visual, atmospheric or audible elements that diminish the integrity of historic properties within the APE, and, if needed, seek ways to avoid, minimize or mitigate any adverse effects on historic properties).

Please contact me if you have any questions.

************************************ Shaheerah Kelly Permits Office, Air Division (AIR-3) U.S. Environmental Protection Agency, Region 9 San Francisco, CA 94105
Phone: 415-947-4156
Fax: 415-947-3579
Email: kelly.shaheerah@epa.gov

This e-mail message and any attachments are for the sole use of the intended reci pient(s) and may contain confidential, privileged, and proprietary information of Resolute Energy Corporati on. Any unauthorized review, use, disclosure or distribution may be prohibited under law. If you are not th e intended recipient, please contact the sender by reply E-mail of any erroneous transmission, and destroy the original E- mail, any attachments, and all copies of the original message. Thank you.NHPA Assessment of Historic Properties
Within a 2

- Kilometer APE of the McElmo Creek Unit Main Flare

Goal
This goal of the project is to identify historic properties, as defined by the National Historic Preservation Act (NHPA) and its implementing regulations , located within a 2 km area of potential effects (APE) of the Main Flare located at the Resolute Natural Resources Company, LLC’s McElmo Creek Unit Central Facility. The project will include assessment of previously recorded cultural

resources to determine if they qualify as historic properties under the NHPA and will also include
assessment of existing Navajo in

- use site s within the APE to determine if any of the structures are eligible for listing as historic properties. Some 52 archaeological sites and possibly 5 to 7 Navajo i n

use sites are located in the 2 kilometer APE surround ing the Main Flare

.

Scope of Work Dinétahdóó Cultural Resources Management (DCRM) will review of existing documentation and
literature for the 52 previously recorded archaeological sites recorded within the APE and determine which sites qualify as historic properties under the NHPA. DCRM will also conduct a field assessment
to determine which, if any

, of the Navajo i n

- use sites within the APE may qualify as hi storic properties according to 36 CFR 800.16(l).

DCRM will complete the following tasks:

A. Pre

- field and Field Tasks

1. Obtain a project Permit Number , if needed, from the Navajo Nation Historic Preservation Department’s (NNHPD) Cultural Resources Compliance Section,

2. Complete an extensive literature search in the NNHPD’s Cultural Resources Compliance Program and Traditional Culture Program s in Window Rock and dete rmine which existing sites are eligible for listing as historic properties according to the NHPA

. 3. Conduct any necessary consultations with the Aneth Chapter regarding the in

- use site residential area assessments,

4. Conduct an assessment of in

- use residen tial areas within the APE to determine if any of
the residential structures are eligible for listing as historic properties according to the

NHPA

.

B. Reporting

1. Prepare a h istoric p roperties findings report that include s d escriptions of all identified historic properties , including project maps,

2. Submit a draft report to Resolute Natural Re sources Company, LLC

, 3. Incorporate comments and s ubmit a final report to U.S. Environmental Protection Agency, Region 9, c.c. Resolute Natural Resources Company, LLC, and NNHPD

.