[Federal Register Volume 75, Number 48 (Friday, March 12, 2010)]
[Notices]
[Pages 11838-11840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-5289]


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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: Corrected Notice of Intent to prepare an Environmental Impact 
Statement for the USA and State South Branch 1-8 well. The original 
notice was published on 2/24/10.

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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 (EIS) 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, should the well 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 26, 2010. The Draft EIS is expected in December 2010 and the 
Final EIS 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: 
[email protected].

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 ``Projects and 
Planning'', then ``Mio projects'', 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's, Savoy 
Energy, L.P.'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-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 the SUPO and 
APD submitted to the BLM. The Forest Service would approve the SUPO 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 northwest of the surface hole, and construct 
associated infrastructure including a production facility and

[[Page 11839]]

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. It also includes the use, reconstruction and 
maintenance of portions of existing roads for year-round access, 
including snow plowing along a section of River Lake Road (aka Hickey 
Creek Road), a section of FSR 4209 (road which ends at the Mason 
Chapel), and a section of FSR 4208 to access the well site; 
construction and maintenance of 50 feet of new road off FSR 4208, 14 
feet wide with three feet of clearing on each side (approximately 0.05 
acre of disturbance) to access the well pad; 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 between 
December 1 and 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 minimum operating standards approved by 
Michigan Department of Natural Resources and Environment (MDNRE) and 
the BLM. These standards address the casing program, pressure control 
equipment, H2S contingency plans, 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, 
R1W (approximately 1.5 miles from the well pad) on approximately 2.0 
acres, including installation of a gas/water separator, condensate (if 
needed) and brine tanks, dehydrator, compressor, volume bottle, and 
measurement (monitoring) equipment; installation of flowlines from the 
well site to the production facility site, buried alongside the 
roadbed, and a pipeline to the Michigan Consolidated Gas transmission 
line, totaling approximately 1.7 miles. Reclamation of a portion of the 
well pad would occur following drilling and completion, leaving 
approximately \1/3\ acre to be used for well operations.
    If the well is not capable of commercial production, the operator 
would plug and abandon the well under applicable State and BLM rules 
and regulations. 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, spreading of topsoil reserved during site 
construction over the disturbed well pad area, and seeding with a 
Forest Service approved mix. The flowline route would be restored and 
the 50-foot length of new access road would be obliterated.
    MDNRE's Water Quality Management Practices on Forest Land and the 
BLM/Forest Service's Surface Operating Standards and Guidelines for Oil 
and Gas Exploration and Development will be used to manage the roads. 
Additionally, prior to reconstructing FSR 4209, approximately 150 feet 
of silt fence would be placed per Forest Service 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 reconstructed roads would not exceed 14 feet. An 
additional three 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 a seed 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 workover rigs, and on mud 
pumps and compressors. No pumps or motors would be placed on the 
surface of the well or at the well site during the production phase. If 
the production facility is processing gas from one well, the sound 
level would not exceed 33 dBA at 1,320 feet. If more than one well is 
produced from the proposed facility, the total sound level for the 
production facility would not exceed 36 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.

Possible Alternatives to the Proposed Action

    No Action Alternative: The Forest Service would not approve the 
SUPO and/or the BLM would not approve the APD. Current direction would 
continue to guide management of the project area. The SB 1-8 well would 
not be drilled, no flowlines would be installed, and no production 
facility would be constructed.
    Modification of Savoy's Proposal Alternative: The Forest Service 
would approve the SUPO and the BLM would approve the APD subject to 
additional conditions of approval based on mitigation developed in 
response to issues raised during the public scoping period.

Lead and Cooperating Agencies

    The BLM and the Forest Service entered into a Memorandum of 
Understanding (MOU) in April 2006 ``to establish procedures for the 
coordinated administration 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,

    ``IIIA3. * * * the Forest Service has the full responsibility 
and authority to approve and regulate all surface-disturbing 
activities associated with oil and gas exploration and development 
through analysis and approval of the SUPO component of an APD.'' 
``VB1. * * * Forest Service will: Serve as lead agency for oil and 
gas * * * environmental analyses required for APDs * * *.'' ``IIIA2. 
The BLM has the authority and responsibility to provide final 
approval of all APDs, including those for operations on Federal 
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.

[[Page 11840]]

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-
4617.

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 SUPO for 
development of the SB 1-8 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 
APD 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 for 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 MDNRE.

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 
through 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 EIS. 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 Freedom of Information Act (FOIA) 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: March 5, 2010.
Barry Paulson,
Forest Supervisor.
[FR Doc. 2010-5289 Filed 3-11-10; 8:45 am]
BILLING CODE 3410-11-M