5 Tips for Federal Drilling Permits

5 Tips for Getting Federal Drilling Permits Approved

Drilling on Federal or Tribal lands can be daunting when it is first considered.?Everyone in the oil and gas industry has heard horror stories of long permit delays and complex approval processes.?The good news is most of the pitfalls can be avoided and the permitting process can be streamlined to a manageable timeframe by following some simple guidelines.

1.??????Do your Due Diligence!

The reason drilling federal and Tribal lands can be daunting is the surface use stipulations.?First, surface use stipulations can by found in several different documents; they can be found in the oil and gas lease itself, Tribal guidelines or regulations, or the surface managing agency policies and land resource management plans.

a.??????Lease stipulations – read all the stipulations attached to the lease.?Federal leases can have many stipulations that are attached to the back of the lease.?These range from wildlife survey requirements to no surface occupancy requirements.?Make sure you have a good grasp of all timing limitations and survey requirements.

b.??????Surface Managing Agency – SMAs are federal agencies that manage the surface such as Corps of Engineers, U.S. Forest Service, or Bureau of Reclamation.?You should determine early on in the planning process if you are dealing with a different surface managing agency than the Bureau of Land Management (BLM).?It is important to refer to the surface managing agencies resource management plan.?The Surface Managing Agency will have their own permitting process for the surface portion of the project while BLM will handle the drilling approvals.?This results in a dual permitting process that can be completed concurrently with proper planning.?

c.??????Tribal oil and gas regulations – Most Tribal oil and gas leases do not contain the stipulations in the lease.?You must refer to the Tribal specific regulations.?Most of the Tribal oil and gas handbooks can be found online.

2.?????Plan, Plan, Plan

Federal or Tribal projects requires all disciplines within a company to engage in the planning.?A well thought out, long-term plan will result in a smooth permitting process.?Consider all the primary and ancillary impacts and requirements of a project and have a plan for each.?Some things to consider would be oil and gas pipeline routes, water disposal pipeline route, supply water pipeline route, egress and ingress of the well pad, production facility standards, and staging areas if necessary.?Small changes or additions of the project that require surface disturbance can lead to long delays.?

3.??????Engage with Stakeholders Early

The secret to success in federal and Tribal drilling approvals is to engage with the stakeholders.?Engage with the local Bureau of Land Management office and Bureau of Indian Affairs office.?Meet with Tribal officials about your project and get their feedback early on in the planning process.?Make sure this is a project they are interested in having on their lands.?Take into account all of their concerns and discuss mitigation efforts and alternatives.?Projects that do not have the support of local officials and stakeholders rarely make it through to approval.?It is better to mitigate early on then be forced to relocate a project.

4.??????Communicate the process to your entire team

Not communicating the permitting process to the entire team involved can lead to project failure.?As discussed above, ensuring that all disciplines within a company are involved early can alleviate delays, frustrations, and perceived project failure.?There can be many requirements from the BLM, BIA, Indian Tribe, or the surface managing agency that may seem rather particular and demanding.?Ensure that everyone on the team is aware of the more pressing issues regarding the project.?Set clear and definitive internal goals and timelines where information and decisions are required.?Update the team regularly on the project status.??

5.??????Engage with a Permitting and Compliance Consultant

Projects on federal and Tribal lands have many steps in the process and require participation from all disciplines.?These projects require planning, environmental and archaeological studies, and ensuring compliance with federal regulations and surface managing agency resource management plans throughout all phases of the project.?It can be overwhelming to operators to the point where they lose sight of the value of the asset in comparison to the requirements to develop that asset.

To save money, operators may be inclined to attempt the permitting process in-house.?However, this can lead to delays caused by poor planning, misinterpreting regulations and requirements, or inadvertently omitting critical aspects of the project.?There are consulting firms like Reagan Smith, Inc. that handle all aspects of federal and Tribal development.?From leasing and land matters to revenue reporting, and everything in between; Reagan Smith can ensure success of your federal project.?With over 25 years of federal and Tribal permitting and project management, Reagan Smith can relieve the headaches and complications associated with these projects.?