Appendix A‐1

Baseline Scenario

High Remediation Cost ‐ High Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

-41.60 -41.61 -41.92 -41.98 -42.37 -42.91 -43.36 -43.59 -44.25 -45.20

Administrative Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Operational Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Administrative Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Social Benefits - Undiscounted -41.60 -41.61 -41.92 -41.98 -42.37 -42.91 -43.36 -43.59 -44.25 -45.20

Costs - Undiscounted 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Reference EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

-47.12 -48.14 -49.25 -49.70 -50.48 -51.17 -51.75 -52.12 -52.91 -53.99

Administrative Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Operational Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Administrative Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Social Benefits - Undiscounted -47.12 -48.14 -49.25 -49.70 -50.48 -51.17 -51.75 -52.12 -52.91 -53.99

Costs - Undiscounted 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Social Benefit

Costs to Producers

Costs to the BLM

Social Benefit

Costs to Producers

Costs to the BLM

63
Appendix A‐1

Summary of Benefits and Costs ($ in Million)

Proposed Regulation

High Remediation Cost ‐ High Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Administrative Costs 0.48 0.48 0.49 0.49 0.49 0.50 0.50 0.50 0.51 0.52

Operational Costs 35.49 35.49 35.76 35.81 36.14 36.60 36.98 37.18 37.75 38.56

Administrative Costs 0.44 0.44 0.44 0.44 0.44 0.45 0.45 0.46 0.46 0.47

Social Benefits - Undiscounted 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Costs - Undiscounted 36.40 36.41 36.68 36.73 37.07 37.55 37.94 38.14 38.72 39.55

Reference EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Administrative Costs 0.55 0.56 0.57 0.58 0.58 0.59 0.60 0.60 0.61 0.63

Operational Costs 40.19 41.07 42.01 42.39 43.06 43.65 44.14 44.45 45.13 46.05

Administrative Costs 0.49 0.50 0.52 0.52 0.53 0.54 0.54 0.55 0.55 0.56

Social Benefits - Undiscounted 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Costs - Undiscounted 41.23 42.13 43.10 43.49 44.17 44.77 45.28 45.60 46.30 47.24

Social Benefit

Costs to the BLM

Social Benefit

Costs to Producers

Costs to the BLM

Costs to Producers

64
Appendix A‐1

Summary of Benefits and Costs ($ in Million)

Alternative 1:  No Requirement to Line Pits

High Remediation Cost ‐ High Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

-34.19 -34.20 -34.46 -34.50 -34.83 -35.27 -35.64 -35.83 -36.37 -37.15

Administrative Costs 0.56 0.56 0.56 0.56 0.57 0.57 0.58 0.58 0.59 0.61

Operational Costs 32.75 32.76 33.00 33.05 33.35 33.78 34.13 34.32 34.84 35.58

Administrative Costs 0.50 0.50 0.51 0.51 0.51 0.52 0.53 0.53 0.54 0.55

Social Benefits - Undiscounted -34.19 -34.20 -34.46 -34.50 -34.83 -35.27 -35.64 -35.83 -36.37 -37.15

Costs - Undiscounted 33.81 33.82 34.07 34.12 34.44 34.88 35.24 35.43 35.97 36.74

Reference EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

-38.73 -39.57 -40.48 -40.85 -41.49 -42.06 -42.53 -42.84 -43.49 -44.37

Administrative Costs 0.63 0.64 0.66 0.67 0.68 0.68 0.69 0.70 0.71 0.72

Operational Costs 37.10 37.90 38.77 39.13 39.74 40.28 40.74 41.03 41.65 42.50

Administrative Costs 0.57 0.58 0.60 0.60 0.61 0.62 0.63 0.63 0.64 0.65

Social Benefits - Undiscounted -38.73 -39.57 -40.48 -40.85 -41.49 -42.06 -42.53 -42.84 -43.49 -44.37

Costs - Undiscounted 38.30 39.13 40.03 40.39 41.03 41.59 42.06 42.36 43.00 43.88

Social Benefit

Costs to Producers

Costs to the BLM

Social Benefit

Costs to Producers

Costs to the BLM

65
Appendix A‐2

Administrative CostsProposed RegulationsHigh Remediation Cost ‐ High Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 20Operator ComplianceNotices of Intent (Sundry)

Anticipated Number 2,432 2,432 2,450 2,454 2,476 2,508 2,534 2,548 2,5Total hours to prepare 15,562 15,565 15,681 15,703 15,849 16,052 16,218 16,306 16,5

481,655 481,725 485,334 485,995 490,538 496,825 501,953 504,663 512,3

Anticipated Number 2,432 2,432 2,450 2,454 2,476 2,508 2,534 2,548 2,5

Total hours to review 11,185 11,187 11,271 11,286 11,392 11,538 11,657 11,720 11,8Subtotal cost to comply 318,226 318,272 320,657 321,093 324,095 328,249 331,637 333,427 338,5

Subsequent Reports (Sundry)

Anticipated Number 3,040 3,040 3,063 3,067 3,096 3,135 3,168 3,185 3,2Total hours to review 6,079 6,080 6,125 6,134 6,191 6,271 6,335 6,369 6,4Subtotal cost to comply 30,395 30,400 30,627 30,669 30,956 31,353 31,676 31,847 32,3

Webposting

Anticipated Number 3,040 3,040 3,063 3,067 3,096 3,135 3,168 3,185 3,2Total hours to review 3,040 3,040 3,063 3,067 3,096 3,135 3,168 3,185 3,2Subtotal cost to comply 86,474 86,487 87,135 87,254 88,069 89,198 90,119 90,605 91,9

435,096 435,159 438,419 439,016 443,120 448,799 453,432 455,879 462,8

Ref EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 20Operator ComplianceNotices of Intent (Sundry)

Anticipated Number 2,754 2,814 2,879 2,905 2,951 2,991 3,025 3,046 3,0Total hours to prepare 17,627 18,009 18,424 18,591 18,884 19,141 19,358 19,495 19,7

545,550 557,377 570,212 575,398 584,460 592,410 599,128 603,385 612,5

Anticipated Number 2,754 2,814 2,879 2,905 2,951 2,991 3,025 3,046 3,0

Total hours to review 12,669 12,944 13,242 13,362 13,573 13,758 13,914 14,012 14,2Subtotal cost to comply 360,441 368,255 376,735 380,161 386,149 391,401 395,840 398,652 404,7

Subsequent Reports (Sundry)

Anticipated Number 3,443 3,517 3,598 3,631 3,688 3,738 3,781 3,808 3,8Total hours to review 6,885 7,035 7,197 7,262 7,377 7,477 7,562 7,615 7,7Subtotal cost to comply 34,427 35,174 35,984 36,311 36,883 37,385 37,808 38,077 38,6

Webposting

Anticipated Number 3,443 3,517 3,598 3,631 3,688 3,738 3,781 3,808 3,8Total hours to review 3,443 3,517 3,598 3,631 3,688 3,738 3,781 3,808 3,8Subtotal cost to comply 97,946 100,069 102,374 103,305 104,932 106,359 107,565 108,329 109,9

492,814 503,498 515,092 519,777 527,963 535,144 541,213 545,058 553,3

Total BLM Administrative CostBLM ReviewNotices of Intent (Sundry)Total Private Administrative CostTotal Private Administrative CostBLM ReviewNotices of Intent (Sundry)Total BLM Administrative Cost

66
Appendix A‐2

Administrative CostsAlternative 1: No Requirement to Line Pits

High Remediation Cost ‐ High Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 20Operator ComplianceNotices of Intent (Sundry)

Anticipated Number 2,432 2,432 2,450 2,454 2,476 2,508 2,534 2,548 2,5Total hours to prepare 17,994 17,997 18,131 18,156 18,326 18,561 18,752 18,854 19,1

556,914 556,994 561,167 561,931 567,185 574,454 580,383 583,516 592,3

Anticipated Number 2,432 2,432 2,450 2,454 2,476 2,508 2,534 2,548 2,5

Total hours to review 13,617 13,619 13,721 13,740 13,868 14,046 14,191 14,268 14,4Subtotal cost to comply 387,405 387,462 390,365 390,896 394,550 399,607 403,732 405,911 412,0

Subsequent Reports (Sundry)

Anticipated Number 3,040 3,040 3,063 3,067 3,096 3,135 3,168 3,185 3,2Total hours to review 6,079 6,080 6,125 6,134 6,191 6,271 6,335 6,369 6,4Subtotal cost to comply 30,395 30,400 30,627 30,669 30,956 31,353 31,676 31,847 32,3

Webposting

Anticipated Number 3,040 3,040 3,063 3,067 3,096 3,135 3,168 3,185 3,2Total hours to review 3,040 3,040 3,063 3,067 3,096 3,135 3,168 3,185 3,2Subtotal cost to comply 86,474 86,487 87,135 87,254 88,069 89,198 90,119 90,605 91,9

504,275 504,348 508,127 508,819 513,575 520,157 525,527 528,363 536,4

Ref EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 20Operator ComplianceNotices of Intent (Sundry)

Anticipated Number 2,754 2,814 2,879 2,905 2,951 2,991 3,025 3,046 3,0Total hours to prepare 20,381 20,823 21,302 21,496 21,835 22,132 22,383 22,542 22,8

630,792 644,467 659,307 665,304 675,782 684,974 692,742 697,663 708,2

Anticipated Number 2,754 2,814 2,879 2,905 2,951 2,991 3,025 3,046 3,0

Total hours to review 15,423 15,758 16,121 16,267 16,524 16,748 16,938 17,059 17,3Subtotal cost to comply 438,797 448,310 458,634 462,805 470,094 476,488 481,892 485,315 492,7

Subsequent Reports (Sundry)

Anticipated Number 3,443 3,517 3,598 3,631 3,688 3,738 3,781 3,808 3,8Total hours to review 6,885 7,035 7,197 7,262 7,377 7,477 7,562 7,615 7,7Subtotal cost to comply 34,427 35,174 35,984 36,311 36,883 37,385 37,808 38,077 38,6

Webposting

Anticipated Number 3,443 3,517 3,598 3,631 3,688 3,738 3,781 3,808 3,8Total hours to review 3,443 3,517 3,598 3,631 3,688 3,738 3,781 3,808 3,8Subtotal cost to comply 97,946 100,069 102,374 103,305 104,932 106,359 107,565 108,329 109,9

571,171 583,553 596,991 602,421 611,908 620,231 627,266 631,722 641,3

Total Private Administrative CostBLM ReviewNotices of Intent (Sundry)Total BLM Administrative CostTotal Private Administrative CostBLM ReviewNotices of Intent (Sundry)Total BLM Administrative Cost

67
Appendix A‐3

Operational CostsProposed RegulationsHigh Remediation Cost ‐ High Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 Mechanical Integrity Tests

Number of applicable wells 608 608 613 613 619 627 634 

Total costs for MIT req. 6,079,045 6,079,929 6,125,480 6,133,819 6,191,161 6,270,507 6,335,233 6,36

Cement Bond Logs

Number of applicable wells 2,964 2,964 2,986 2,990 3,018 3,057 3,088 

Total costs for Cement Bond Log req. 26,671,812 26,675,688 26,875,543 26,912,130 27,163,719 27,511,849 27,795,833 27,94

Storage Tank or Lined Pit

Number of applicable wells 456 456 459 460 464 470 475 

Total costs of using storage tank or lining pit 2,735,570 2,735,968 2,756,466 2,760,218 2,786,022 2,821,728 2,850,855 2,86

Ref EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 Mechanical Integrity Tests

Number of applicable wells 689 703 720 726 738 748 756 

Total costs for MIT req. 6,885,472 7,034,748 7,196,736 7,262,191 7,376,569 7,476,903 7,561,698 7,61

Cement Bond Logs

Number of applicable wells 3,357 3,429 3,508 3,540 3,596 3,645 3,686 

Total costs for Cement Bond Log req. 30,210,008 30,864,957 31,575,679 31,862,862 32,364,695 32,804,910 33,176,950 33,41

Storage Tank or Lined Pit

Number of applicable wells 516 528 540 545 553 561 567 

Total costs of using storage tank or lining pit 3,098,462 3,165,637 3,238,531 3,267,986 3,319,456 3,364,606 3,402,764 3,42

68
Appendix A‐3

Operational CostsAlternative 1: No Requirement to Line Pits

High Remediation Cost ‐ High Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 20Mechanical Integrity Tests

Number of applicable wells 608 608 613 613 619 627 634 6Total costs for MIT req. 6,079,045 6,079,929 6,125,480 6,133,819 6,191,161 6,270,507 6,335,233 6,369,4

Cement Bond Logs

Number of applicable wells 2,964 2,964 2,986 2,990 3,018 3,057 3,088 3,1Total costs for Cement Bond Log req. 26,671,812 26,675,688 26,875,543 26,912,130 27,163,719 27,511,849 27,795,833 27,945,8

Storage Tank or Lined Pit

Number of applicable wells 0000000

Total costs of using storage tank or lining pit 0000000

Ref EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 20Mechanical Integrity Tests

Number of applicable wells 689 703 720 726 738 748 756 7

Total costs for MIT req. 6,885,472 7,034,748 7,196,736 7,262,191 7,376,569 7,476,903 7,561,698 7,615,4

Cement Bond Logs

Number of applicable wells 3,357 3,429 3,508 3,540 3,596 3,645 3,686 3,7

Total costs for Cement Bond Log req. 30,210,008 30,864,957 31,575,679 31,862,862 32,364,695 32,804,910 33,176,950 33,412,6

Storage Tank or Lined Pit

Number of applicable wells 0000000

Total costs of using storage tank or lining pit 0000000

69
Appendix A‐4

Remediation CostsBaseline ScenarioHigh Remediation Cost ‐ High Environmental Risk

2013 2014 2015 2016 2017 2018 2019 

Requiring Storage Tanks or Lining Pits

Estimated number of wells requiring tanks or lined pits 456 456 459 460 464 470 475 Estimated contamination events 456 456 459 460 464 470 475 Total estimated remediation costs of surface contamination 34,194,630 34,199,600 34,455,825 34,502,731 34,825,281 35,271,602 35,635,683 

Requiring Cement Bond Logs and MITs

Number of wells requiring cement bond logs 2,964 2,964 2,986 2,990 3,018 3,057 3,088 Number of wells requiring MITs 608 608 613 613 619 627 634 Estimated contamination events 7777888Total estimated remediation costs of subsurface contamination 7,408,837 7,409,913 7,465,429 7,475,592 7,545,478 7,642,180 7,721,065 

2013 2014 2015 2016 2017 2018 2019 

Requiring Storage Tanks or Lining Pits

Estimated number of wells requiring tanks or lined pits 516 528 540 545 553 561 567 Estimated contamination events 516 528 540 545 553 561 567 Total estimated remediation costs of surface contamination 38,730,780 39,570,458 40,481,640 40,849,823 41,493,198 42,057,577 42,534,551 

Requiring Cement Bond Logs and MITs

Number of wells requiring cement bond logs 3,357 3,429 3,508 3,540 3,596 3,645 3,686 Number of wells requiring MITs 689 703 720 726 738 748 756 Estimated contamination events 8 9 9 9 9 9 9 

Total estimated remediation costs of subsurface contamination 8,391,669 8,573,599 8,771,022 8,850,795 8,990,193 9,112,475 9,215,819 

Low EIA Price ScenarioRef EIA Price Scenario

70
Appendix A‐4

Remediation CostsAlternative 1: No Requirement to Line Pits

High Remediation Cost ‐ High Environmental Risk

2013 2014 2015 2016 2017 2018 2019 

Requiring Storage Tanks or Lining Pits

Estimated number of wells requiring tanks or lined pits 456 456 459 460 464 470 475 Estimated contamination events 456 456 459 460 464 470 475 Total estimated remediation costs of surface contamination 34,194,630 34,199,600 34,455,825 34,502,731 34,825,281 35,271,602 35,635,683 

Requiring Cement Bond Logs and MITs

Number of wells requiring cement bond logs 0000000Number of wells requiring MITs 0000000Estimated contamination events 0000000Total estimated remediation costs of subsurface contamination 0000000

2013 2014 2015 2016 2017 2018 2019 

Requiring Storage Tanks or Lining Pits

Estimated number of wells requiring tanks or lined pits 516 528 540 545 553 561 567 Estimated contamination events 516 528 540 545 553 561 567 Total estimated remediation costs of surface contamination 38,730,780 39,570,458 40,481,640 40,849,823 41,493,198 42,057,577 42,534,551 

Requiring Cement Bond Logs and MITs

Number of wells requiring cement bond logs 0000000Number of wells requiring MITs 0000000Estimated contamination events 0000000Total estimated remediation costs of subsurface contamination 0000000

Low EIA Price ScenarioRef EIA Price Scenario

71
Appendix A‐5

Estimated Employment in Full‐Time Equivalents (1 FTE equals 2,080 hours)

Proposed Regulation

High Remediation Cost ‐ High Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017

Private Sector Hours

Administrative 15,562 15,565 15,681 15,703 15,849

Mechanical Integrity Tests 2,432 2,432 2,450 2,454 2,476

Cement Bond Logs 11,854 11,856 11,945 11,961 12,073

Storage Tanks or Lined Pits 1,824 1,824 1,838 1,840 1,857

Private Sector Employment (FTE)

Administrative 7.48 7.48 7.54 7.55 7.62

Mechanical Integrity Tests 1.17 1.17 1.18 1.18 1.19

Cement Bond Logs 5.70 5.70 5.74 5.75 5.80

Storage Tanks or Lined Pits 0.88 0.88 0.88 0.88 0.89

Total 15.23 15.23 15.34 15.36 15.51

Ref EIA Price Scenario 2013 2014 2015 2016 2017

Private Sector Hours

Administrative 17,627 18,009 18,424 18,591 18,884

Mechanical Integrity Tests 2,754 2,814 2,879 2,905 2,951

Cement Bond Logs 13,427 13,718 14,034 14,161 14,384

Storage Tanks or Lined Pits 2,066 2,110 2,159 2,179 2,213

Private Sector Employment (FTE)

Administrative 8.47 8.66 8.86 8.94 9.08

Mechanical Integrity Tests 1.32 1.35 1.38 1.40 1.42

Cement Bond Logs 6.46 6.60 6.75 6.81 6.92

Storage Tanks or Lined Pits 0.99 1.01 1.04 1.05 1.06

Total 17.25 17.62 18.03 18.19 18.48

72
Appendix A‐5

Estimated Employment in Full‐Time Equivalents (1 FTE equals 2,080 hours)

Alternative 1:  No Requirement to Line Pits

High Remediation Cost ‐ High Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017

Private Sector Hours

Administrative 17,994 17,997 18,131 18,156 18,326

Mechanical Integrity Tests 2,432 2,432 2,450 2,454 2,476

Cement Bond Logs 11,854 11,856 11,945 11,961 12,073

Storage Tanks or Lined Pits 00000

Private Sector Employment (FTE)

Administrative 8.65 8.65 8.72 8.73 8.81

Mechanical Integrity Tests 1.17 1.17 1.18 1.18 1.19

Cement Bond Logs 5.70 5.70 5.74 5.75 5.80

Storage Tanks or Lined Pits 0.00 0.00 0.00 0.00 0.00

Total 15.52 15.52 15.64 15.66 15.81

Ref EIA Price Scenario 2013 2014 2015 2016 2017

Private Sector Hours

Administrative 20,381 20,823 21,302 21,496 21,835

Mechanical Integrity Tests 2,754 2,814 2,879 2,905 2,951

Cement Bond Logs 13,427 13,718 14,034 14,161 14,384

Storage Tanks or Lined Pits 00000

Private Sector Employment (FTE)

Administrative 9.80 10.01 10.24 10.33 10.50

Mechanical Integrity Tests 1.32 1.35 1.38 1.40 1.42

Cement Bond Logs 6.46 6.60 6.75 6.81 6.92

Storage Tanks or Lined Pits 0.00 0.00 0.00 0.00 0.00

Total 17.58 17.96 18.37 18.54 18.83

73
Appendix A‐6

Estimated Benefits and Costs to Producers Per Well StimulationProposed RegulationHigh Remediation Cost ‐ High Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 

3040 3040 3063 3067 3096 3135 3168 3185 

Administrative Costs 481,655 481,725 485,334 485,995 490,538 496,825 501,953 504,663 Operational Costs 35,486,427 35,491,585 35,757,489 35,806,168 36,140,903 36,604,085 36,981,920 37,181,559 

Total Costs to Producers 35,968,082 35,973,310 36,242,823 36,292,162 36,631,441 37,100,909 37,483,873 37,686,222 Cost per Stimulation Event 11,833 11,833 11,833 11,833 11,833 11,833 11,833 11,833 Total Benefits 41,603,467 41,609,513 41,921,254 41,978,323 42,370,759 42,913,782 43,356,748 43,590,800 Benefit per Stimulation Event 13,688 13,688 13,688 13,688 13,688 13,688 13,688 13,688 Reference EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 

3443 3517 3598 3631 3688 3738 3781 3808 

Administrative Costs 545,550 557,377 570,212 575,398 584,460 592,410 599,128 603,385 Operational Costs 40,193,942 41,065,342 42,010,946 42,393,038 43,060,719 43,646,419 44,141,411 44,454,991 

Total Costs to Producers 40,739,492 41,622,719 42,581,158 42,968,436 43,645,180 44,238,829 44,740,540 45,058,376 Cost per Stimulation Event 11,833 11,833 11,833 11,833 11,833 11,833 11,833 11,833 Total Benefits 47,122,448 48,144,057 49,252,662 49,700,618 50,483,391 51,170,052 51,750,370 52,118,003 Benefit per Stimulation Event 13,688 13,688 13,688 13,688 13,688 13,688 13,688 13,688 Number of Well StimulationsNumber of Well StimulationsCosts to ProducersAdditional Costs to Producers

74
Appendix A‐6

Estimated Benefits and Costs to Producers Per Well StimulationAlternative 1: No Requirement to Line PitsHigh Remediation Cost ‐ High Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 

3040 3040 3063 3067 3096 3135 3168 3185 

Administrative Costs 556,914 556,994 561,167 561,931 567,185 574,454 580,383 583,516 Operational Costs 32,750,857 32,755,617 33,001,023 33,045,949 33,354,880 33,782,356 34,131,066 34,315,315 

Total Costs to Producers 33,307,771 33,312,611 33,562,191 33,607,881 33,922,065 34,356,810 34,711,449 34,898,831 Cost per Stimulation Event 10,958 10,958 10,958 10,958 10,958 10,958 10,958 10,958 Total Benefits 7,408,837 7,409,913 7,465,429 7,475,592 7,545,478 7,642,180 7,721,065 7,762,745 Benefit per Stimulation Event 2,438 2,438 2,438 2,438 2,438 2,438 2,438 2,438 Reference EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 

3443 3517 3598 3631 3688 3738 3781 3808 

Administrative Costs 630,792 644,467 659,307 665,304 675,782 684,974 692,742 697,663 Operational Costs 37,095,480 37,899,705 38,772,415 39,125,053 39,741,263 40,281,813 40,738,647 41,028,054 

Total Costs to Producers 37,726,272 38,544,173 39,431,723 39,790,356 40,417,046 40,966,787 41,431,390 41,725,717 Cost per Stimulation Event 10,958 10,958 10,958 10,958 10,958 10,958 10,958 10,958 Total Benefits 8,391,669 8,573,599 8,771,022 8,850,795 8,990,193 9,112,475 9,215,819 9,281,288 Benefit per Stimulation Event 2,438 2,438 2,438 2,438 2,438 2,438 2,438 2,438 Number of Well StimulationsCosts to ProducersNumber of Well StimulationsCosts to Producers

75
Appendix A‐7

Small Business Impacts

Proposed Regulation

High Remediation Cost ‐ High Environmental Risk

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Estimated Costs to All Producers

481,655 481,725 485,334 485,995 490,538 496,825 501,953 504,663 512,341 523,316

35,486,427 35,491,585 35,757,489 35,806,168 36,140,903 36,604,085 36,981,920 37,181,559 37,747,240 38,555,878

Total - All Producers 35,968,082 35,973,310 36,242,823 36,292,162 36,631,441 37,100,909 37,483,873 37,686,222 38,259,581 39,079,195

Percent of Small Entities 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73%

Total Cost - Small Entities 29,755,277 29,759,602 29,982,562 30,023,379 30,304,053 30,692,430 31,009,244 31,176,641 31,650,963 32,329,004

Number of Small Entities 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291

Cost per small entity 3,589 3,589 3,616 3,621 3,655 3,702 3,740 3,760 3,818 3,899

Sample of small entities: Net income derived from company filings (Form 10-K) with the Security and Exchange Commisson. 

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

493 168,255,000 0.000021 0.000021 0.000021 0.000022 0.000022 0.000022 0.000022 0.000022 0.000023 0.000023

409 103,386,000 0.000035 0.000035 0.000035 0.000035 0.000035 0.000036 0.000036 0.000036 0.000037 0.000038

379 67,520,000 0.000053 0.000053 0.000054 0.000054 0.000054 0.000055 0.000055 0.000056 0.000057 0.000058

270 133,529,000 0.000027 0.000027 0.000027 0.000027 0.000027 0.000028 0.000028 0.000028 0.000029 0.000029

74 1,766,000 0.002032 0.002032 0.002048 0.002051 0.002070 0.002096 0.002118 0.002129 0.002162 0.002208

57 20,383,000 0.000176 0.000176 0.000177 0.000178 0.000179 0.000182 0.000183 0.000184 0.000187 0.000191

24 5,503,000 0.000652 0.000652 0.000657 0.000658 0.000664 0.000673 0.000680 0.000683 0.000694 0.000709

8 1,602,000 0.002240 0.002241 0.002257 0.002260 0.002282 0.002311 0.002335 0.002347 0.002383 0.002434

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Estimated Costs to All Producers

545,550 557,377 570,212 575,398 584,460 592,410 599,128 603,385 612,565 625,029

40,193,942 41,065,342 42,010,946 42,393,038 43,060,719 43,646,419 44,141,411 44,454,991 45,131,397 46,049,687

Total - All Producers 40,739,492 41,622,719 42,581,158 42,968,436 43,645,180 44,238,829 44,740,540 45,058,376 45,743,962 46,674,717

Percent of Small Entities 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73%

Total Cost - Small Entities 33,702,516 34,433,183 35,226,070 35,546,453 36,106,302 36,597,409 37,012,459 37,275,395 37,842,559 38,612,544

Number of Small Entities 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291

Cost per small entity 4,065 4,153 4,249 4,287 4,355 4,414 4,464 4,496 4,564 4,657

Sample of small entities: Net income derived from company filings (Form 10-K) with the Security and Exchange Commisson. 

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

493 168,255,000 0.000024 0.000025 0.000025 0.000025 0.000026 0.000026 0.000027 0.000027 0.000027 0.000028

409 103,386,000 0.000039 0.000040 0.000041 0.000041 0.000042 0.000043 0.000043 0.000043 0.000044 0.000045

379 67,520,000 0.000060 0.000062 0.000063 0.000063 0.000064 0.000065 0.000066 0.000067 0.000068 0.000069

270 133,529,000 0.000030 0.000031 0.000032 0.000032 0.000033 0.000033 0.000033 0.000034 0.000034 0.000035

74 1,766,000 0.002302 0.002352 0.002406 0.002428 0.002466 0.002499 0.002528 0.002546 0.002585 0.002637

57 20,383,000 0.000199 0.000204 0.000208 0.000210 0.000214 0.000217 0.000219 0.000221 0.000224 0.000228

24 5,503,000 0.000739 0.000755 0.000772 0.000779 0.000791 0.000802 0.000811 0.000817 0.000829 0.000846

8 1,602,000 0.002537 0.002592 0.002652 0.002676 0.002718 0.002755 0.002787 0.002806 0.002849 0.002907

Proportion of costs per small entity to company's 2010 net income

Low EIA Price Scenario

Number of 

Employees

2010 Net 

Income

Administrative

Operational

Proportion of costs per small entity to company's 2010 net income

Ref EIA Price Scenario

Administrative

Operational

Number of 

Employees

2010 Net 

Income

76
Appendix A‐7

Small Business Impacts

Alternative 1:  No Requirement to Line Pits

High Remediation Cost ‐ High Environmental Risk

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Estimated Costs to All Producers

556,914 556,994 561,167 561,931 567,185 574,454 580,383 583,516 592,394 605,085

32,750,857 32,755,617 33,001,023 33,045,949 33,354,880 33,782,356 34,131,066 34,315,315 34,837,389 35,583,691

Total - All Producers 33,307,771 33,312,611 33,562,191 33,607,881 33,922,065 34,356,810 34,711,449 34,898,831 35,429,783 36,188,775

Percent of Small Entities 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73%

Total Cost - Small Entities 27,554,484 27,558,489 27,764,958 27,802,756 28,062,671 28,422,322 28,715,704 28,870,719 29,309,959 29,937,850

Number of Small Entities 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291

Cost per small entity 3,323 3,324 3,349 3,353 3,385 3,428 3,463 3,482 3,535 3,611

Sample of small entities: Net income derived from company filings (Form 10-K) with the Security and Exchange Commisson. 

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

493 168,255,000 0.000020 0.000020 0.000020 0.000020 0.000020 0.000020 0.000021 0.000021 0.000021 0.000021

409 103,386,000 0.000032 0.000032 0.000032 0.000032 0.000033 0.000033 0.000034 0.000034 0.000034 0.000035

379 67,520,000 0.000049 0.000049 0.000050 0.000050 0.000050 0.000051 0.000051 0.000052 0.000052 0.000053

270 133,529,000 0.000025 0.000025 0.000025 0.000025 0.000025 0.000026 0.000026 0.000026 0.000026 0.000027

74 1,766,000 0.001882 0.001882 0.001896 0.001899 0.001917 0.001941 0.001961 0.001972 0.002002 0.002045

57 20,383,000 0.000163 0.000163 0.000164 0.000165 0.000166 0.000168 0.000170 0.000171 0.000173 0.000177

24 5,503,000 0.000604 0.000604 0.000609 0.000609 0.000615 0.000623 0.000629 0.000633 0.000642 0.000656

8 1,602,000 0.002075 0.002075 0.002090 0.002093 0.002113 0.002140 0.002162 0.002174 0.002207 0.002254

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Estimated Costs to All Producers

630,792 644,467 659,307 665,304 675,782 684,974 692,742 697,663 708,279 722,690

37,095,480 37,899,705 38,772,415 39,125,053 39,741,263 40,281,813 40,738,647 41,028,054 41,652,317 42,499,819

Total - All Producers 37,726,272 38,544,173 39,431,723 39,790,356 40,417,046 40,966,787 41,431,390 41,725,717 42,360,596 43,222,509

Percent of Small Entities 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73%

Total Cost - Small Entities 31,209,773 31,886,397 32,620,639 32,917,326 33,435,767 33,890,550 34,274,902 34,518,390 35,043,605 35,756,639

Number of Small Entities 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291

Cost per small entity 3,764 3,846 3,934 3,970 4,033 4,088 4,134 4,163 4,227 4,313

Sample of small entities: Net income derived from company filings (Form 10-K) with the Security and Exchange Commisson. 

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

493 168,255,000 0.000022 0.000023 0.000023 0.000024 0.000024 0.000024 0.000025 0.000025 0.000025 0.000026

409 103,386,000 0.000036 0.000037 0.000038 0.000038 0.000039 0.000040 0.000040 0.000040 0.000041 0.000042

379 67,520,000 0.000056 0.000057 0.000058 0.000059 0.000060 0.000061 0.000061 0.000062 0.000063 0.000064

270 133,529,000 0.000028 0.000029 0.000029 0.000030 0.000030 0.000031 0.000031 0.000031 0.000032 0.000032

74 1,766,000 0.002132 0.002178 0.002228 0.002248 0.002284 0.002315 0.002341 0.002358 0.002393 0.002442

57 20,383,000 0.000185 0.000189 0.000193 0.000195 0.000198 0.000201 0.000203 0.000204 0.000207 0.000212

24 5,503,000 0.000684 0.000699 0.000715 0.000721 0.000733 0.000743 0.000751 0.000757 0.000768 0.000784

8 1,602,000 0.002350 0.002401 0.002456 0.002478 0.002517 0.002552 0.002581 0.002599 0.002638 0.002692

Proportion of costs per small entity to company's 2010 net income

Low EIA Price Scenario

Administrative

Operational

Number of 

Employees

2010 Net 

Income

Proportion of costs per small entity to company's 2010 net income

Ref EIA Price Scenario

Administrative

Operational

Number of 

Employees

2010 Net 

Income

77
Appendix A‐1

Baseline Scenario

Low Remediation Cost ‐ Low Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

-11.41 -11.41 -11.50 -11.51 -11.62 -11.77 -11.89 -11.96 -12.14 -12.40

Administrative Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Operational Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Administrative Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Social Benefits - Undiscounted -11.41 -11.41 -11.50 -11.51 -11.62 -11.77 -11.89 -11.96 -12.14 -12.40

Costs - Undiscounted 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Reference EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

-12.92 -13.20 -13.51 -13.63 -13.85 -14.03 -14.19 -14.29 -14.51 -14.81

Administrative Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Operational Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Administrative Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Social Benefits - Undiscounted -12.92 -13.20 -13.51 -13.63 -13.85 -14.03 -14.19 -14.29 -14.51 -14.81

Costs - Undiscounted 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Social Benefit

Costs to Producers

Costs to the BLM

Social Benefit

Costs to Producers

Costs to the BLM

78
Appendix A‐1

Summary of Benefits and Costs ($ in Million)

Proposed Regulation

Low Remediation Cost ‐ Low Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Administrative Costs 0.48 0.48 0.49 0.49 0.49 0.50 0.50 0.50 0.51 0.52

Operational Costs 35.49 35.49 35.76 35.81 36.14 36.60 36.98 37.18 37.75 38.56

Administrative Costs 0.44 0.44 0.44 0.44 0.44 0.45 0.45 0.46 0.46 0.47

Social Benefits - Undiscounted 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Costs - Undiscounted 36.40 36.41 36.68 36.73 37.07 37.55 37.94 38.14 38.72 39.55

Reference EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Administrative Costs 0.55 0.56 0.57 0.58 0.58 0.59 0.60 0.60 0.61 0.63

Operational Costs 40.19 41.07 42.01 42.39 43.06 43.65 44.14 44.45 45.13 46.05

Administrative Costs 0.49 0.50 0.52 0.52 0.53 0.54 0.54 0.55 0.55 0.56

Social Benefits - Undiscounted 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Costs - Undiscounted 41.23 42.13 43.10 43.49 44.17 44.77 45.28 45.60 46.30 47.24

Social Benefit

Costs to the BLM

Social Benefit

Costs to Producers

Costs to the BLM

Costs to Producers

79
Appendix A‐1

Summary of Benefits and Costs ($ in Million)

Alternative 1:  No Requirement to Line Pits

Low Remediation Cost ‐ Low Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

-11.40 -11.40 -11.49 -11.50 -11.61 -11.76 -11.88 -11.94 -12.12 -12.38

Administrative Costs 0.56 0.56 0.56 0.56 0.57 0.57 0.58 0.58 0.59 0.61

Operational Costs 32.75 32.76 33.00 33.05 33.35 33.78 34.13 34.32 34.84 35.58

Administrative Costs 0.50 0.50 0.51 0.51 0.51 0.52 0.53 0.53 0.54 0.55

Social Benefits - Undiscounted -11.40 -11.40 -11.49 -11.50 -11.61 -11.76 -11.88 -11.94 -12.12 -12.38

Costs - Undiscounted 33.81 33.82 34.07 34.12 34.44 34.88 35.24 35.43 35.97 36.74

Reference EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

-12.91 -13.19 -13.49 -13.62 -13.83 -14.02 -14.18 -14.28 -14.50 -14.79

Administrative Costs 0.63 0.64 0.66 0.67 0.68 0.68 0.69 0.70 0.71 0.72

Operational Costs 37.10 37.90 38.77 39.13 39.74 40.28 40.74 41.03 41.65 42.50

Administrative Costs 0.57 0.58 0.60 0.60 0.61 0.62 0.63 0.63 0.64 0.65

Social Benefits - Undiscounted -12.91 -13.19 -13.49 -13.62 -13.83 -14.02 -14.18 -14.28 -14.50 -14.79

Costs - Undiscounted 38.30 39.13 40.03 40.39 41.03 41.59 42.06 42.36 43.00 43.88

Social Benefit

Costs to Producers

Costs to the BLM

Social Benefit

Costs to Producers

Costs to the BLM

80
Appendix A‐2

Administrative CostsProposed RegulationsLow Remediation Cost ‐ Low Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 2Operator ComplianceNotices of Intent (Sundry)

Anticipated Number 2,432 2,432 2,450 2,454 2,476 2,508 2,534 2,548 2,

Total hours to prepare 15,562 15,565 15,681 15,703 15,849 16,052 16,218 16,306 16,

481,655 481,725 485,334 485,995 490,538 496,825 501,953 504,663 512,

Anticipated Number 2,432 2,432 2,450 2,454 2,476 2,508 2,534 2,548 2,Total hours to review 11,185 11,187 11,271 11,286 11,392 11,538 11,657 11,720 11,Subtotal cost to comply 318,226 318,272 320,657 321,093 324,095 328,249 331,637 333,427 338,5

Subsequent Reports (Sundry)

Anticipated Number 3,040 3,040 3,063 3,067 3,096 3,135 3,168 3,185 3,Total hours to review 6,079 6,080 6,125 6,134 6,191 6,271 6,335 6,369 6,Subtotal cost to comply 30,395 30,400 30,627 30,669 30,956 31,353 31,676 31,847 32,3

Webposting

Anticipated Number 3,040 3,040 3,063 3,067 3,096 3,135 3,168 3,185 3,Total hours to review 3,040 3,040 3,063 3,067 3,096 3,135 3,168 3,185 3,Subtotal cost to comply 86,474 86,487 87,135 87,254 88,069 89,198 90,119 90,605 91,9

435,096 435,159 438,419 439,016 443,120 448,799 453,432 455,879 462,

Ref EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 2Operator ComplianceNotices of Intent (Sundry)

Anticipated Number 2,754 2,814 2,879 2,905 2,951 2,991 3,025 3,046 3,Total hours to prepare 17,627 18,009 18,424 18,591 18,884 19,141 19,358 19,495 19,

545,550 557,377 570,212 575,398 584,460 592,410 599,128 603,385 612,

Anticipated Number 2,754 2,814 2,879 2,905 2,951 2,991 3,025 3,046 3,Total hours to review 12,669 12,944 13,242 13,362 13,573 13,758 13,914 14,012 14,Subtotal cost to comply 360,441 368,255 376,735 380,161 386,149 391,401 395,840 398,652 404,7

Subsequent Reports (Sundry)

Anticipated Number 3,443 3,517 3,598 3,631 3,688 3,738 3,781 3,808 3,

Total hours to review 6,885 7,035 7,197 7,262 7,377 7,477 7,562 7,615 7,Subtotal cost to comply 34,427 35,174 35,984 36,311 36,883 37,385 37,808 38,077 38,6

Webposting

Anticipated Number 3,443 3,517 3,598 3,631 3,688 3,738 3,781 3,808 3,Total hours to review 3,443 3,517 3,598 3,631 3,688 3,738 3,781 3,808 3,Subtotal cost to comply 97,946 100,069 102,374 103,305 104,932 106,359 107,565 108,329 109,9

492,814 503,498 515,092 519,777 527,963 535,144 541,213 545,058 553,

BLM ReviewNotices of Intent (Sundry)Total BLM Administrative CostTotal BLM Administrative CostBLM ReviewNotices of Intent (Sundry)Total Private Administrative CostTotal Private Administrative Cost

81
Appendix A‐2

Administrative CostsAlternative 1: No Requirement to Line Pits

Low Remediation Cost ‐ Low Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 20Operator ComplianceNotices of Intent (Sundry)

Anticipated Number 2,432 2,432 2,450 2,454 2,476 2,508 2,534 2,548 2,5Total hours to prepare 17,994 17,997 18,131 18,156 18,326 18,561 18,752 18,854 19,1

556,914 556,994 561,167 561,931 567,185 574,454 580,383 583,516 592,3

Anticipated Number 2,432 2,432 2,450 2,454 2,476 2,508 2,534 2,548 2,5

Total hours to review 13,617 13,619 13,721 13,740 13,868 14,046 14,191 14,268 14,4Subtotal cost to comply 387,405 387,462 390,365 390,896 394,550 399,607 403,732 405,911 412,0

Subsequent Reports (Sundry)

Anticipated Number 3,040 3,040 3,063 3,067 3,096 3,135 3,168 3,185 3,2Total hours to review 6,079 6,080 6,125 6,134 6,191 6,271 6,335 6,369 6,4Subtotal cost to comply 30,395 30,400 30,627 30,669 30,956 31,353 31,676 31,847 32,3

Webposting

Anticipated Number 3,040 3,040 3,063 3,067 3,096 3,135 3,168 3,185 3,2Total hours to review 3,040 3,040 3,063 3,067 3,096 3,135 3,168 3,185 3,2Subtotal cost to comply 86,474 86,487 87,135 87,254 88,069 89,198 90,119 90,605 91,9

504,275 504,348 508,127 508,819 513,575 520,157 525,527 528,363 536,4

Ref EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 20Operator ComplianceNotices of Intent (Sundry)

Anticipated Number 2,754 2,814 2,879 2,905 2,951 2,991 3,025 3,046 3,0Total hours to prepare 20,381 20,823 21,302 21,496 21,835 22,132 22,383 22,542 22,8

630,792 644,467 659,307 665,304 675,782 684,974 692,742 697,663 708,2

Anticipated Number 2,754 2,814 2,879 2,905 2,951 2,991 3,025 3,046 3,0

Total hours to review 15,423 15,758 16,121 16,267 16,524 16,748 16,938 17,059 17,3Subtotal cost to comply 438,797 448,310 458,634 462,805 470,094 476,488 481,892 485,315 492,7

Subsequent Reports (Sundry)

Anticipated Number 3,443 3,517 3,598 3,631 3,688 3,738 3,781 3,808 3,8Total hours to review 6,885 7,035 7,197 7,262 7,377 7,477 7,562 7,615 7,7Subtotal cost to comply 34,427 35,174 35,984 36,311 36,883 37,385 37,808 38,077 38,6

Webposting

Anticipated Number 3,443 3,517 3,598 3,631 3,688 3,738 3,781 3,808 3,8Total hours to review 3,443 3,517 3,598 3,631 3,688 3,738 3,781 3,808 3,8Subtotal cost to comply 97,946 100,069 102,374 103,305 104,932 106,359 107,565 108,329 109,9

571,171 583,553 596,991 602,421 611,908 620,231 627,266 631,722 641,3

Total Private Administrative CostBLM ReviewNotices of Intent (Sundry)Total BLM Administrative CostTotal Private Administrative CostBLM ReviewNotices of Intent (Sundry)Total BLM Administrative Cost

82
Appendix A‐3

Operational CostsProposed RegulationsLow Remediation Cost ‐ Low Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 Mechanical Integrity Tests

Number of applicable wells 608 608 613 613 619 627 634 

Total costs for MIT req. 6,079,045 6,079,929 6,125,480 6,133,819 6,191,161 6,270,507 6,335,233 6,36

Cement Bond Logs

Number of applicable wells 2,964 2,964 2,986 2,990 3,018 3,057 3,088 

Total costs for Cement Bond Log req. 26,671,812 26,675,688 26,875,543 26,912,130 27,163,719 27,511,849 27,795,833 27,94

Storage Tank or Lined Pit

Number of applicable wells 456 456 459 460 464 470 475 

Total costs of using storage tank or lining pit 2,735,570 2,735,968 2,756,466 2,760,218 2,786,022 2,821,728 2,850,855 2,86

Ref EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 Mechanical Integrity Tests

Number of applicable wells 689 703 720 726 738 748 756 

Total costs for MIT req. 6,885,472 7,034,748 7,196,736 7,262,191 7,376,569 7,476,903 7,561,698 7,61

Cement Bond Logs

Number of applicable wells 3,357 3,429 3,508 3,540 3,596 3,645 3,686 

Total costs for Cement Bond Log req. 30,210,008 30,864,957 31,575,679 31,862,862 32,364,695 32,804,910 33,176,950 33,41

Storage Tank or Lined Pit

Number of applicable wells 516 528 540 545 553 561 567 

Total costs of using storage tank or lining pit 3,098,462 3,165,637 3,238,531 3,267,986 3,319,456 3,364,606 3,402,764 3,42

83
Appendix A‐3

Operational CostsAlternative 1: No Requirement to Line Pits

Low Remediation Cost ‐ Low Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 20Mechanical Integrity Tests

Number of applicable wells 608 608 613 613 619 627 634 6Total costs for MIT req. 6,079,045 6,079,929 6,125,480 6,133,819 6,191,161 6,270,507 6,335,233 6,369,4

Cement Bond Logs

Number of applicable wells 2,964 2,964 2,986 2,990 3,018 3,057 3,088 3,1Total costs for Cement Bond Log req. 26,671,812 26,675,688 26,875,543 26,912,130 27,163,719 27,511,849 27,795,833 27,945,8

Storage Tank or Lined Pit

Number of applicable wells 0000000

Total costs of using storage tank or lining pit 0000000

Ref EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 20Mechanical Integrity Tests

Number of applicable wells 689 703 720 726 738 748 756 7

Total costs for MIT req. 6,885,472 7,034,748 7,196,736 7,262,191 7,376,569 7,476,903 7,561,698 7,615,4

Cement Bond Logs

Number of applicable wells 3,357 3,429 3,508 3,540 3,596 3,645 3,686 3,7

Total costs for Cement Bond Log req. 30,210,008 30,864,957 31,575,679 31,862,862 32,364,695 32,804,910 33,176,950 33,412,6

Storage Tank or Lined Pit

Number of applicable wells 0000000

Total costs of using storage tank or lining pit 0000000

84
Appendix A‐4

Remediation CostsBaseline ScenarioLow Remediation Cost ‐ Low Environmental Risk

2013 2014 2015 2016 2017 2018 2019 

Requiring Storage Tanks or Lining Pits

Estimated number of wells requiring tanks or lined pits 456 456 459 460 464 470 475 Estimated contamination events 456 456 459 460 464 470 475 Total estimated remediation costs of surface contamination 11,398,210 11,399,867 11,485,275 11,500,910 11,608,427 11,757,201 11,878,561 

Requiring Cement Bond Logs and MITs

Number of wells requiring cement bond logs 2,964 2,964 2,986 2,990 3,018 3,057 3,088 Number of wells requiring MITs 608 608 613 613 619 627 634 Estimated contamination events 0000000Total estimated remediation costs of subsurface contamination 12,595 12,597 12,691 12,709 12,827 12,992 13,126 

2013 2014 2015 2016 2017 2018 2019 

Requiring Storage Tanks or Lining Pits

Estimated number of wells requiring tanks or lined pits 516 528 540 545 553 561 567 Estimated contamination events 516 528 540 545 553 561 567 Total estimated remediation costs of surface contamination 12,910,260 13,190,153 13,493,880 13,616,608 13,831,066 14,019,192 14,178,184 

Requiring Cement Bond Logs and MITs

Number of wells requiring cement bond logs 3,357 3,429 3,508 3,540 3,596 3,645 3,686 Number of wells requiring MITs 689 703 720 726 738 748 756 Estimated contamination events 0000000Total estimated remediation costs of subsurface contamination 14,266 14,575 14,911 15,046 15,283 15,491 15,667 

Low EIA Price ScenarioRef EIA Price Scenario

85
Appendix A‐4

Remediation CostsAlternative 1: No Requirement to Line Pits

Low Remediation Cost ‐ Low Environmental Risk

2013 2014 2015 2016 2017 2018 2019 

Requiring Storage Tanks or Lining Pits

Estimated number of wells requiring tanks or lined pits 456 456 459 460 464 470 475 Estimated contamination events 456 456 459 460 464 470 475 Total estimated remediation costs of surface contamination 11,398,210 11,399,867 11,485,275 11,500,910 11,608,427 11,757,201 11,878,561 

Requiring Cement Bond Logs and MITs

Number of wells requiring cement bond logs 0000000Number of wells requiring MITs 0000000Estimated contamination events 0000000Total estimated remediation costs of subsurface contamination 0000000

2013 2014 2015 2016 2017 2018 2019 

Requiring Storage Tanks or Lining Pits

Estimated number of wells requiring tanks or lined pits 516 528 540 545 553 561 567 Estimated contamination events 516 528 540 545 553 561 567 Total estimated remediation costs of surface contamination 12,910,260 13,190,153 13,493,880 13,616,608 13,831,066 14,019,192 14,178,184 

Requiring Cement Bond Logs and MITs

Number of wells requiring cement bond logs 0000000Number of wells requiring MITs 0000000Estimated contamination events 0000000Total estimated remediation costs of subsurface contamination 0000000

Low EIA Price ScenarioRef EIA Price Scenario

86
Appendix A‐5

Estimated Employment in Full‐Time Equivalents (1 FTE equals 2,080 hours)

Proposed Regulation

Low Remediation Cost ‐ Low Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017

Private Sector Hours

Administrative 15,562 15,565 15,681 15,703 15,849

Mechanical Integrity Tests 2,432 2,432 2,450 2,454 2,476

Cement Bond Logs 11,854 11,856 11,945 11,961 12,073

Storage Tanks or Lined Pits 1,824 1,824 1,838 1,840 1,857

Private Sector Employment (FTE)

Administrative 7.48 7.48 7.54 7.55 7.62

Mechanical Integrity Tests 1.17 1.17 1.18 1.18 1.19

Cement Bond Logs 5.70 5.70 5.74 5.75 5.80

Storage Tanks or Lined Pits 0.88 0.88 0.88 0.88 0.89

Total 15.23 15.23 15.34 15.36 15.51

Ref EIA Price Scenario 2013 2014 2015 2016 2017

Private Sector Hours

Administrative 17,627 18,009 18,424 18,591 18,884

Mechanical Integrity Tests 2,754 2,814 2,879 2,905 2,951

Cement Bond Logs 13,427 13,718 14,034 14,161 14,384

Storage Tanks or Lined Pits 2,066 2,110 2,159 2,179 2,213

Private Sector Employment (FTE)

Administrative 8.47 8.66 8.86 8.94 9.08

Mechanical Integrity Tests 1.32 1.35 1.38 1.40 1.42

Cement Bond Logs 6.46 6.60 6.75 6.81 6.92

Storage Tanks or Lined Pits 0.99 1.01 1.04 1.05 1.06

Total 17.25 17.62 18.03 18.19 18.48

87
Appendix A‐5

Estimated Employment in Full‐Time Equivalents (1 FTE equals 2,080 hours)

Alternative 1:  No Requirement to Line Pits

Low Remediation Cost ‐ Low Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017

Private Sector Hours

Administrative 17,994 17,997 18,131 18,156 18,326

Mechanical Integrity Tests 2,432 2,432 2,450 2,454 2,476

Cement Bond Logs 11,854 11,856 11,945 11,961 12,073

Storage Tanks or Lined Pits 00000

Private Sector Employment (FTE)

Administrative 8.65 8.65 8.72 8.73 8.81

Mechanical Integrity Tests 1.17 1.17 1.18 1.18 1.19

Cement Bond Logs 5.70 5.70 5.74 5.75 5.80

Storage Tanks or Lined Pits 0.00 0.00 0.00 0.00 0.00

Total 15.52 15.52 15.64 15.66 15.81

Ref EIA Price Scenario 2013 2014 2015 2016 2017

Private Sector Hours

Administrative 20,381 20,823 21,302 21,496 21,835

Mechanical Integrity Tests 2,754 2,814 2,879 2,905 2,951

Cement Bond Logs 13,427 13,718 14,034 14,161 14,384

Storage Tanks or Lined Pits 00000

Private Sector Employment (FTE)

Administrative 9.80 10.01 10.24 10.33 10.50

Mechanical Integrity Tests 1.32 1.35 1.38 1.40 1.42

Cement Bond Logs 6.46 6.60 6.75 6.81 6.92

Storage Tanks or Lined Pits 0.00 0.00 0.00 0.00 0.00

Total 17.58 17.96 18.37 18.54 18.83

88
Appendix A‐6

Estimated Benefits and Costs to Producers Per Well StimulationProposed RegulationLow Remediation Cost ‐ Low Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 

3040 3040 3063 3067 3096 3135 3168 3185 

Administrative Costs 481,655 481,725 485,334 485,995 490,538 496,825 501,953 504,663 Operational Costs 35,486,427 35,491,585 35,757,489 35,806,168 36,140,903 36,604,085 36,981,920 37,181,559 

Total Costs to Producers 35,968,082 35,973,310 36,242,823 36,292,162 36,631,441 37,100,909 37,483,873 37,686,222 Cost per Stimulation Event 11,833 11,833 11,833 11,833 11,833 11,833 11,833 11,833 Total Benefits 11,410,805 11,412,463 11,497,966 11,513,619 11,621,254 11,770,192 11,891,687 11,955,882 Benefit per Stimulation Event 3,754 3,754 3,754 3,754 3,754 3,754 3,754 3,754 Reference EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 

3443 3517 3598 3631 3688 3738 3781 3808 

Administrative Costs 545,550 557,377 570,212 575,398 584,460 592,410 599,128 603,385 Operational Costs 40,193,942 41,065,342 42,010,946 42,393,038 43,060,719 43,646,419 44,141,411 44,454,991 

Total Costs to Producers 40,739,492 41,622,719 42,581,158 42,968,436 43,645,180 44,238,829 44,740,540 45,058,376 Cost per Stimulation Event 11,833 11,833 11,833 11,833 11,833 11,833 11,833 11,833 Total Benefits 12,924,526 13,204,728 13,508,791 13,631,654 13,846,349 14,034,684 14,193,850 14,294,683 Benefit per Stimulation Event 3,754 3,754 3,754 3,754 3,754 3,754 3,754 3,754 Number of Well StimulationsNumber of Well StimulationsCosts to ProducersAdditional Costs to Producers

89
Appendix A‐6

Estimated Benefits and Costs to Producers Per Well StimulationAlternative 1: No Requirement to Line PitsLow Remediation Cost ‐ Low Environmental Risk

Low EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 

3040 3040 3063 3067 3096 3135 3168 3185 

Administrative Costs 556,914 556,994 561,167 561,931 567,185 574,454 580,383 583,516 Operational Costs 32,750,857 32,755,617 33,001,023 33,045,949 33,354,880 33,782,356 34,131,066 34,315,315 

Total Costs to Producers 33,307,771 33,312,611 33,562,191 33,607,881 33,922,065 34,356,810 34,711,449 34,898,831 Cost per Stimulation Event 10,958 10,958 10,958 10,958 10,958 10,958 10,958 10,958 Total Benefits 12,595 12,597 12,691 12,709 12,827 12,992 13,126 13,197 Benefit per Stimulation Event 44444444

Reference EIA Price Scenario 2013 2014 2015 2016 2017 2018 2019 2020 

3443 3517 3598 3631 3688 3738 3781 3808 

Administrative Costs 630,792 644,467 659,307 665,304 675,782 684,974 692,742 697,663 Operational Costs 37,095,480 37,899,705 38,772,415 39,125,053 39,741,263 40,281,813 40,738,647 41,028,054 

Total Costs to Producers 37,726,272 38,544,173 39,431,723 39,790,356 40,417,046 40,966,787 41,431,390 41,725,717 Cost per Stimulation Event 10,958 10,958 10,958 10,958 10,958 10,958 10,958 10,958 Total Benefits 14,266 14,575 14,911 15,046 15,283 15,491 15,667 15,778 Benefit per Stimulation Event 44444444

Number of Well StimulationsCosts to ProducersNumber of Well StimulationsCosts to Producers

90
Appendix A‐7

Small Business Impacts

Proposed Regulation

Low Remediation Cost ‐ Low Environmental Risk

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Estimated Costs to All Producers

481,655 481,725 485,334 485,995 490,538 496,825 501,953 504,663 512,341 523,316

35,486,427 35,491,585 35,757,489 35,806,168 36,140,903 36,604,085 36,981,920 37,181,559 37,747,240 38,555,878

Total - All Producers 35,968,082 35,973,310 36,242,823 36,292,162 36,631,441 37,100,909 37,483,873 37,686,222 38,259,581 39,079,195

Percent of Small Entities 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73%

Total Cost - Small Entities 29,755,277 29,759,602 29,982,562 30,023,379 30,304,053 30,692,430 31,009,244 31,176,641 31,650,963 32,329,004

Number of Small Entities 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291

Cost per small entity 3,589 3,589 3,616 3,621 3,655 3,702 3,740 3,760 3,818 3,899

Sample of small entities: Net income derived from company filings (Form 10-K) with the Security and Exchange Commisson. 

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

493 168,255,000 0.000021 0.000021 0.000021 0.000022 0.000022 0.000022 0.000022 0.000022 0.000023 0.000023

409 103,386,000 0.000035 0.000035 0.000035 0.000035 0.000035 0.000036 0.000036 0.000036 0.000037 0.000038

379 67,520,000 0.000053 0.000053 0.000054 0.000054 0.000054 0.000055 0.000055 0.000056 0.000057 0.000058

270 133,529,000 0.000027 0.000027 0.000027 0.000027 0.000027 0.000028 0.000028 0.000028 0.000029 0.000029

74 1,766,000 0.002032 0.002032 0.002048 0.002051 0.002070 0.002096 0.002118 0.002129 0.002162 0.002208

57 20,383,000 0.000176 0.000176 0.000177 0.000178 0.000179 0.000182 0.000183 0.000184 0.000187 0.000191

24 5,503,000 0.000652 0.000652 0.000657 0.000658 0.000664 0.000673 0.000680 0.000683 0.000694 0.000709

8 1,602,000 0.002240 0.002241 0.002257 0.002260 0.002282 0.002311 0.002335 0.002347 0.002383 0.002434

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Estimated Costs to All Producers

545,550 557,377 570,212 575,398 584,460 592,410 599,128 603,385 612,565 625,029

40,193,942 41,065,342 42,010,946 42,393,038 43,060,719 43,646,419 44,141,411 44,454,991 45,131,397 46,049,687

Total - All Producers 40,739,492 41,622,719 42,581,158 42,968,436 43,645,180 44,238,829 44,740,540 45,058,376 45,743,962 46,674,717

Percent of Small Entities 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73%

Total Cost - Small Entities 33,702,516 34,433,183 35,226,070 35,546,453 36,106,302 36,597,409 37,012,459 37,275,395 37,842,559 38,612,544

Number of Small Entities 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291

Cost per small entity 4,065 4,153 4,249 4,287 4,355 4,414 4,464 4,496 4,564 4,657

Sample of small entities: Net income derived from company filings (Form 10-K) with the Security and Exchange Commisson. 

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

493 168,255,000 0.000024 0.000025 0.000025 0.000025 0.000026 0.000026 0.000027 0.000027 0.000027 0.000028

409 103,386,000 0.000039 0.000040 0.000041 0.000041 0.000042 0.000043 0.000043 0.000043 0.000044 0.000045

379 67,520,000 0.000060 0.000062 0.000063 0.000063 0.000064 0.000065 0.000066 0.000067 0.000068 0.000069

270 133,529,000 0.000030 0.000031 0.000032 0.000032 0.000033 0.000033 0.000033 0.000034 0.000034 0.000035

74 1,766,000 0.002302 0.002352 0.002406 0.002428 0.002466 0.002499 0.002528 0.002546 0.002585 0.002637

57 20,383,000 0.000199 0.000204 0.000208 0.000210 0.000214 0.000217 0.000219 0.000221 0.000224 0.000228

24 5,503,000 0.000739 0.000755 0.000772 0.000779 0.000791 0.000802 0.000811 0.000817 0.000829 0.000846

8 1,602,000 0.002537 0.002592 0.002652 0.002676 0.002718 0.002755 0.002787 0.002806 0.002849 0.002907

Proportion of costs per small entity to company's 2010 net income

Ref EIA Price Scenario

Administrative

Operational

Number of 

Employees

2010 Net 

Income

Proportion of costs per small entity to company's 2010 net income

Low EIA Price Scenario

Number of 

Employees

2010 Net 

Income

Administrative

Operational

91
Appendix A‐7

Small Business Impacts

Alternative 1:  No Requirement to Line Pits

Low Remediation Cost ‐ Low Environmental Risk

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Estimated Costs to All Producers

556,914 556,994 561,167 561,931 567,185 574,454 580,383 583,516 592,394 605,085

32,750,857 32,755,617 33,001,023 33,045,949 33,354,880 33,782,356 34,131,066 34,315,315 34,837,389 35,583,691

Total - All Producers 33,307,771 33,312,611 33,562,191 33,607,881 33,922,065 34,356,810 34,711,449 34,898,831 35,429,783 36,188,775

Percent of Small Entities 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73%

Total Cost - Small Entities 27,554,484 27,558,489 27,764,958 27,802,756 28,062,671 28,422,322 28,715,704 28,870,719 29,309,959 29,937,850

Number of Small Entities 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291

Cost per small entity 3,323 3,324 3,349 3,353 3,385 3,428 3,463 3,482 3,535 3,611

Sample of small entities: Net income derived from company filings (Form 10-K) with the Security and Exchange Commisson. 

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

493 168,255,000 0.000020 0.000020 0.000020 0.000020 0.000020 0.000020 0.000021 0.000021 0.000021 0.000021

409 103,386,000 0.000032 0.000032 0.000032 0.000032 0.000033 0.000033 0.000034 0.000034 0.000034 0.000035

379 67,520,000 0.000049 0.000049 0.000050 0.000050 0.000050 0.000051 0.000051 0.000052 0.000052 0.000053

270 133,529,000 0.000025 0.000025 0.000025 0.000025 0.000025 0.000026 0.000026 0.000026 0.000026 0.000027

74 1,766,000 0.001882 0.001882 0.001896 0.001899 0.001917 0.001941 0.001961 0.001972 0.002002 0.002045

57 20,383,000 0.000163 0.000163 0.000164 0.000165 0.000166 0.000168 0.000170 0.000171 0.000173 0.000177

24 5,503,000 0.000604 0.000604 0.000609 0.000609 0.000615 0.000623 0.000629 0.000633 0.000642 0.000656

8 1,602,000 0.002075 0.002075 0.002090 0.002093 0.002113 0.002140 0.002162 0.002174 0.002207 0.002254

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Estimated Costs to All Producers

630,792 644,467 659,307 665,304 675,782 684,974 692,742 697,663 708,279 722,690

37,095,480 37,899,705 38,772,415 39,125,053 39,741,263 40,281,813 40,738,647 41,028,054 41,652,317 42,499,819

Total - All Producers 37,726,272 38,544,173 39,431,723 39,790,356 40,417,046 40,966,787 41,431,390 41,725,717 42,360,596 43,222,509

Percent of Small Entities 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73% 82.73%

Total Cost - Small Entities 31,209,773 31,886,397 32,620,639 32,917,326 33,435,767 33,890,550 34,274,902 34,518,390 35,043,605 35,756,639

Number of Small Entities 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291 8,291

Cost per small entity 3,764 3,846 3,934 3,970 4,033 4,088 4,134 4,163 4,227 4,313

Sample of small entities: Net income derived from company filings (Form 10-K) with the Security and Exchange Commisson. 

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

493 168,255,000 0.000022 0.000023 0.000023 0.000024 0.000024 0.000024 0.000025 0.000025 0.000025 0.000026

409 103,386,000 0.000036 0.000037 0.000038 0.000038 0.000039 0.000040 0.000040 0.000040 0.000041 0.000042

379 67,520,000 0.000056 0.000057 0.000058 0.000059 0.000060 0.000061 0.000061 0.000062 0.000063 0.000064

270 133,529,000 0.000028 0.000029 0.000029 0.000030 0.000030 0.000031 0.000031 0.000031 0.000032 0.000032

74 1,766,000 0.002132 0.002178 0.002228 0.002248 0.002284 0.002315 0.002341 0.002358 0.002393 0.002442

57 20,383,000 0.000185 0.000189 0.000193 0.000195 0.000198 0.000201 0.000203 0.000204 0.000207 0.000212

24 5,503,000 0.000684 0.000699 0.000715 0.000721 0.000733 0.000743 0.000751 0.000757 0.000768 0.000784

8 1,602,000 0.002350 0.002401 0.002456 0.002478 0.002517 0.002552 0.002581 0.002599 0.002638 0.002692

Proportion of costs per small entity to company's 2010 net income

Low EIA Price Scenario

Administrative

Operational

Number of 

Employees

2010 Net 

Income

Proportion of costs per small entity to company's 2010 net income

Ref EIA Price Scenario

Administrative

Operational

Number of 

Employees

2010 Net 

Income

92