FEBRUARY 25 FIELD TRIP (Attachment 1)

Due to a serious winter storm throughout much of the state, the field trip was canceled.

PUBLIC COMMENT PERIOD

Tony opened the Public Comment Period at 6:15. Members of the RAC introduced themselves.

Mike Casabonne, NM Public Lands Council, Hope

Mr. Casabonne said he appreciated the RAC’s presence in Artesia. He had not prepared to speak, but said he is interested in proposed grazing regulations and that his organization, along with livestock organizations, would have a substantive recommendation. Some of the proposed regulations will be beneficial to the livestock industry, but there are enemies of the proposals. He hopes the livestock industry will be better able to work with BLM in the future. He thinks things can still be done better than what has been proposed, because these regulations don’t allow total ownership by permittees. Although they propose cooperative agreement ownership, when government still owns a share, it is hard for ranchers to use improvements as collateral.

Linda asked whether the Section 4 Permit took a change in regulations or had been decided in policy during the previous administration. He said it was changed by regulation as part of Rangeland ...94¾that BLM wouldn’t recognize further ownership on improvements. The proposed regulations do provide further ownership of improvements. Theoretically, if a permittee invested 100% he would own 100%, but that is still considered a cooperative agreement, and makes a difference to financial institutions. When permits are transferred, the value of the improvement is transferred. On most water-based public lands, ranches are intermingled public/private and are considered one unit. Therefore they can’t be separated when bought or sold. All is done as a unit and improvements are an important part of the ranch’s value. Ownership can affect ranchers’ ability to finance, and their economic liability. Judge Zimmer said it was up to the Secretary of the Interior’s discretion, and Mike thinks it is still possible for the Interior Department to change regulations.

Drought has impacted everything about public lands, especially livestock. Most ranchers have reduced the number of cattle they’re running. They are affected by Endangered Species Act conflicts and would like BLM help with that.

Jim Bailey asked him to describe endangered species conflicts. He said the primary conflict is over lesser prairie chicken habitat on the east side of the state. That issue will be trouble if it continues as it’s going. Aplomado falcon is potentially problematic, as well as anything where habitat would be set aside.

Lewis Derrick, NM Cattlegrowers Association Federal Lands Committee & Conflict Resolution Committee, Eddy County Land Use Committee, Artesia

Mr. Derrick met with Jim and others to work out resolutions for stakeholders. He is looking for incentives to address loss of livestock, and has met with O&G representatives. Nothing has surfaced at this point. Any conservation plan needs incentives or we might as well forget it.

The way it’s going, 98% of the ranchers in the area think the drought will break them. He looked at Farm Service Agency drought assistance, but said ranchers get punished by reduced use of their ranches. Cattlegrowers are working on language that is more helpful to livestock operators for the millions of dollars that have been set aside for livestock drought assistance. Those funds might be more possible than a special appropriation. He thinks we’re missing some things, maybe an offshore drilling arrangement. But there’s not a whole lot of push to get something done. Drought funds are being used to buy up property but not for incentives.

NM Cattlegrowers committees have made progress in some areas and meetings continue. We ought to work on the Otero Mesa deal to resolve conflicts. Maybe we could get ranking representatives down in this part of the state and have some resolution. Conflicts include not keeping up roads, and moving caliche off one location to another—then they’re in conflict with counties. There are a lot of cattlegrowers scattered through the area, and in some places 15-20 operators go through an area but nobody claims a cattleguard so it isn’t maintained. He would like to get those O&G operators to sign agreements, and maybe form a pool of all in that area—with a special contact for ranchers. Shortcuts to locations make more roads. OCD and the state are included in discussions of these conflicting issues.

Don asked how many operators cause problems. Depends on the problem. Cattleguards seem to affect most. Some O&G operators are working on stopping shortcuts. He sees improvements. The state said operators have to contact ranchers, and BLM met with them to see if there was any conflict before putting blades on the ground, to resolve problems before they start. He and others have been contacted several times and that has solved some conflicts.

Leslie said CFO is looking at getting industry and rancher representatives involved at the beginning of the process to problem-solve and work together. She would welcome RAC help with that.

Linda said the northwest NM model is working and is helping others set up such a thing.

Lewis said while we’re looking at how individual operations and ranchers are affected by the Endangered Species Act, if the county loses tax base over this, it will get involved. There has to be some way that county and state are not losing that tax base.

Jim said some counties tax livestock as property. How do counties benefit from O&G development? The revenue goes to Washington and back to the state and trickles down, for example, to schools.

Debora said NM counties have a direct county tax based on the value of the product so it’s a big boost. Crestina said all counties in NM tax livestock.

Tony closed the Public Comment Period at 7 p.m.

FEBRUARY 26 RAC MEETING

CALL TO ORDER, OPENING STATEMENTS & CHECK-IN FROM RAC MEMBERS

Tony called the meeting to order at 8:15 a.m. RAC members introduced themselves. Tony introduced Wayne Price and State Representative Tim Jennings, and asked Tim to speak. Tim said he represents the Duncan and Penasco Fire Departments. He’s Duncan Fire Chief, and appreciates grants they’ve received that help them meet their capabilities. He said there are ways to drill in an ecologically sound matter on Otero Mesa. We have to look at income to the area, particularly Chaparral school district. And operators will drill across the line in TX if not here.

He said NM is a poor state and often government jobs provide the best pay, as well as health insurance. He was meeting that morning with CFO to go over a new line for a fire tower¾400-500 feet higher to enhance communication capabilities. Concerning ranching in a drought, BLM needs to look at what they allow a rancher to do. His ranch is 2/3 deeded and 1/3 federal and yet BLM controls how many animals he has there. He pays for the grass but is totally controlled as to what he can do with it. Because of the drought, mountain lions and coyotes have put him out of the sheep business. The only thing left is to put cows out there, even though they aren’t good for his ranch or the watershed. He could put in a game ranch or run half the cattle, but he needs BLM cooperation.

Ranchers, not BLM, water, feed and provide minerals for deer. The ratio of bucks to does makes them welfare animals. He’s looking at survival. Wells are 750 feet deep and drilling, pipe and rods are expensive. His ranch doesn’t generate enough money to support operating costs and three employees. If BLM forces him to run cows there it isn’t to anyone’s good. He can’t afford to keep feeding the coyotes and mountain lions. We need to look at demonstration plots where access is controlled, to figure out how people can make a living on the land. It now costs about $30,000 a mile plus materials to build a 7.5-foot game fence. So regulations deny the opportunity to have a game ranch. Damaged areas along the river get worse with cows than with sheep, but that’s the only choice he has. He would talk with the RAC or any BLM people about other means of income.

Linda acknowledged Raye, who had offered to host the RAC meeting in the MarBob offices. But it came to her attention that some people were critical that RAC would meet in an O&G facility. She said the RAC talked at its last meeting about unitization on Otero Mesa, and formed a working group under the Energy Subcommittee. They received notice of intent to sue from Earth Justice, which would have postponed the working group’s first three meetings, so they decided it was in the best interest of taxpayers to wait. Ed Roberson will be the new Las Cruces FO Director, and will continue with the plan. She asked those who planned the field trip to describe what would have been visited

Joe Lara of CFO said he and Raye looked at Bear Grass Draw, sand dune lizard and lesser prairie chicken habitat, and well sites¾including a drilling rig site¾to show what BLM considers in an inspection. Raye added that the oil locations near Bear Grass Draw had a disposal well where water is being disposed at 9,000 feet. He planned a short course on how to assure that there’s integrity in that process. Next they planned to visit a central tank location to let O&G folks speak about how facilities are set up and maintained. He wanted to address concerns about BLM's inspection process. Jim Amos directs the inspection program and would have been available to answer questions. Raye said it is a challenge to help the public understand what is being planned for drilling on Otero Mesa. He distributed an article from the Albuquerque Journal about NM receiving the 2^nd largest return of federal O&G royalties¾$319 million. (Attachment 2)

Linda mentioned that BLM and IRS are the only two federal agencies that actually make money. Jim said he’d like to see an area that’s recently been restored. Raye said there are prairie chicken and lizard habitats on active sites with a recently closed drilling pit. Things can be done to enhance reclamation, and there are some site-specific things that industry may buy into. On one site a company has agreed to move caliche because of lizard habitat. It’s an evolving process.

Linda said RAC nominations are open to fill two vacancies. Wayne Bingham declined, and his alternate is being vetted in the Washington office. There were three applications for the other vacancy, one of whom is under consideration by the governor’s office. The BLM Director is coming to NM the first week in April, and will spend 4-5 days in southern NM looking at local issues and meeting with user groups. In May, the BLM leadership team meets in Santa Fe, so the director will return and spend time in northern NM.

Max asked what percentage of wells in the Artesia area were not in compliance. He is concerned that groups get the wrong information out and the public gets the wrong perception. In forestry, a third-party verification process was formed to address that.

Raye said BLM demands that the proper work be done down the hole, and there has been more emphasis in the last few years on “idle” not-producing wells¾which may become problematic orphaned wells later. Generally, the longer things sit without attention, the more problems arise. BLM inspections identify violations and write them up, e.g., lack of site security diagram filed with CFO. That doesn’t mean there’s an environmental problem. So if someone asks how many violations have been filed against O&G companies, question whether those violations are endangering anything. Some of the work done on production capability determines proper reporting and payment to government, yet is less visible in write-ups.

Linda said Leslie is dealing with a rancher complaint where BLM verified that there are numerous issues on his allotment. The FO is getting the rancher and operator together to talk about it. Often the operator doesn’t know that contractors are doing damage. Those situations lead to assumptions that BLM is not doing its job and that it’s impossible to have O&G operations that are environmentally appropriate.

Max said public comments at the Farmington RAC meeting were indicative of his belief that issues are blown out of proportion. Linda said even if every operator on Tweeti Blancett’s ranch was doing everything perfectly, O&G operations would still be an annoyance, bring dust, and affect wildlife and cattle. So it is problematic.

Question/Answer/Comment

· Sometimes media has shown old photos of past wells and asked “What if this happens on Otero Mesa?”

· BLM continues to get the O&G industry and ranchers together to work out conflicts.

· It’s critical to have OCD very involved with any meeting.

· Southern NM is different from Farmington.

· On private land, the only watchdog is OCD. On federal land, who calls the shots? The O&G person applies to BLM but that application is sent to OCD for review. Either may want changes. OCD on federal lands primarily focuses on down-hole issues. On private land, there is usually a surface agreement between landowner and company. On state land and grazing permits, O&G companies apply to OCD. The State Land Office does not generally do a site visit on an active O&G lease. First line of defense for a rancher using state land therefore, would be OCD.

APPROVAL OF AGENDA & RAC MINUTES FROM SANTA FE, NOVEMBER 2003

Agenda (Attachment 3)

Tony added as first order of business an Otero Mesa update.

Motion

Crestina moved and Don seconded to approve the agenda with the addition. Motion approved.

November 2003 Minutes (Attachment 4)

Motion

Jim moved and Crestina seconded to approve minutes of November 2003 as presented. Motion approved.

Tony asked the RAC to recommend new members. He hopes to have the process speeded up and new members approved so that a quorum is present at meetings and business can be decided. Number of alternates depends on number of applicants.

OTERO MESA UPDATE

Tom Phillips, Las Cruces FO

Tom said BLM’s Washington office received less than 30 protests, and was still in the 60-day governor’s consistency review¾ending March 8. LCFO will work on resolution of protests for the next couple of months—then a record of decision can be made after clarifying misunderstandings and evaluating new issues. He emphasized that this is information gathering, not a vote.

Linda said BLM would respectfully consider the governor’s comments and implement or utilize whatever they can. BLM will not reopen the planning process. NMBLM received more than 2,000 comments, but not all fit the guidelines. They have to be substantive comments from organizations that have participated at some point in the planning process. As of February 25, there were about 12 valid protests, including three from the state—which submitted comments throughout the process.

Question/Answer/Comment

· Will this be business as usual, or is water contamination, road width, etc. restricted? BLM is minimizing disturbance on roads and pads with unitization¾based on one operator who works with BLM on a plan of development for surface disturbance of no more than 5%.

· Raye said this is certainly not business as usual, and that Governor Richardson’s recommendations might cause more disturbance than BLM plans. However, Meade thought the Governor’s recommendations might help state land restrictions.

· What if there was a well about half a mile from a fence and the operator left the gate open and livestock could escape? If that was federal land it would be a compliance issue and the rancher should go to BLM.

· When operators lose a well they’re out of there, but ranchers will be there for generations to come. Water may become as valuable as oil and gas, and we want to be sure it’s protected. Is there any guarantee that water quality and quantity will not be affected? Ed Roberson said BLM works to assure water protection. They look at zones producing fresh water and do everything possible to minimize impact, and are taking extra precautions with Otero Mesa plans.

· Raye said some operators drill with air. It’s a lower-cost option, and has several benefits.

· The 5% stipulation was applied to Otero Mesa overall. Jim said he disagrees that this is tough for the industry. At 32 acres per section, with 8 wells per section over a large area, it would be easy to double that to 16 wells and stay within the 5% stipulation. This is a stalking horse.

· Linda said BLM’s plan covers a little more than 2 million acres with about 140 wells that may be developed. Analysis foresees a maximum of 84 wells that would be profitable. This would not be a Permian-basin-type development. BLM staff thinks it has developed a responsible plan and no one knows whether there will be claimable resources. It is a wildcat area, but BLM has done a good job developing an environmental plan. Linda said she told Governor Richardson that they might need to agree to disagree.

· Tony pointed out the map of Otero Mesa in packets and on the wall.

FO ACCESS ISSUES (Attachment 5)

Las Cruces FO

Jan Hurley said LCFO has about 20 access issues. Urban interface, recreation, hunting and changing ownership are problems. There’s conflict between traditional and new attitudes and uses. Cooke’s Peak, north of Deming in Luna County on the Hiatt allotment, has access issues. She said LCFO had to determine whether the gate that a permittee locked blocked access to public land. LCFO gave the permittee 10 days to review public comment and provide his position in writing. Then BLM will look at alternatives for collaborating and resolving this issue.

Tony said he would work with LCFO during subcommittee time to get more information.

Carlsbad FO

Leslie said there are ongoing issues with too much access by hunters, and emerging issues with off-road use.

Socorro FO

Kate pointed out areas she had highlighted on a map in RAC members’ packets. There is a lot of development on private land surrounded by public land. Problems include new roads that provide access for cattle to wander. The Catron County Commission passed a resolution to close a county road previously open and officially designated. As development continues, BLM will face further legal implications. Reserve has a new museum and is planning improvements to attract tourists. Socorro County issues include wildlife migration and endangered species. The City of Socorro is growing and developing, which means people will want more recreation access. Access is the biggest issue in their RMP Amendment, so they will have public involvement and possibly public help in identifying alternatives.

John asked whether amending subdivision regulations would help. Kate said that is critical. The FO is working closely with Socorro County and hopes proposed developers will consult with the FO. John said the county has asked BLM to include them, and they need to ask the county to include BLM. A taskforce that includes the county commission, state foresters, Soil & Water Conservation District (S&WCD) and BLM has met twice. Kate pointed out a C0₂ deposit with helium byproduct near Springerville in Catron County. Wind and solar have the highest energy potential.

Albuquerque FO

Ed Singleton said the Majors Ranch and John Hand got both county commissions and Acoma Pueblo involved to reopen the contested road. It is still a problem that long-term ranchers sell and new owners don’t understand traditional usage so lock the gates.

Roswell FO

Ed Roberson said there are the same kinds of issues in Roswell, though growth is not such a big factor. The FO is working case-by-case, and submitted updated information for the state map of access issues.

Farmington FO

FFO access to Thomas Canyon Special Use Area is through private land. The area is used for fuel wood gathering and mule deer hunting. FFO is working with the estate on a land exchange, but the heirs don’t all agree. There is some danger of blockage if that tract changes hands.

Question/Answer/Comment

· Mining claims in the Cerrillos Hills have been resolved. The real issue is too-much access.

· Tony reiterated the need to come up with a RAC policy.

· Some larger parcels have been put into conservation easements. Do they develop their own access? Does BLM have to work through them? Linda said it depends on the reason an easement was set up. Some are meant to keep farmland from being converted to subdivisions. This is being discussed as a possible solution for sand dune lizard and prairie chicken territory.

· Lewis Derrick said his organization hasn’t gotten as far as proposals for conservation easements. They can be detrimental to ranching operations, but some ranchers might look at a 10-year rather than longer-term deal. If an agreement is written right it can be done.

· Crestina has a conservation easement with the Taos Land Trust on her ranch. The wording was changed numerous times until it reflected what she wanted. A lot depends on whom you work with. She donated the easement forever so development would be stopped. Wildlife and agriculture are addressed specifically.

· Kate said Socorro FO is looking at land tenure adjustments, disposal, acquisition and easements, and what staff positions need to be added—like realty specialist—to address these problems.

FIELD OFFICE UPDATES ON NOXIOUS WEEDS PROGRAM

Ed Roberson, Roswell FO (Attachment 6)

Helen Miller is RFO weed coordinator. Salt cedar and Russian olive are problems. Ed hopes for new national legislation. Projects are underway to address Russian knapweed, several thistles and African rue. When an area is cited, the FO takes a GPS readout and loads it into the system to show exactly what is infested. They have an interagency cooperative agreement to treat those areas. African rue is believed to have come from TX on O&G trucks. Livestock won’t eat it unless there’s nothing else. When they do consume it they spread it. BLM aggressively treats in fall with Arsenal, and then monitors. Russian knapweed came through the 380 corridor east of the Pecos River and up Border Hill on the west side of Chaves County. Working with NM Highway Department they’ve applied tebuthiuron and believe most of it is eradicated. They’re working case-by-case on thistles in high country, but still see a lot of it. The FO has gotten volunteers to hand-dig it out, and have many cooperative agreements. Salt cedar and Russian olive are being aggressively treated mechanically. Staff has been ingenious, e.g., they got a pipeline company to pull out some where they were working. They go to state meetings of S&WCDs, showing them how to use the mechanical process as support for aerial treatments. Concerning mesquite infestation, the FO asked seismic workers to spray or provide funds to spray in an area where they were working. In 2002, the FO inventoried about 687 miles of noxious weeds¾1,040 acres. They hand out booklets to permittees, and if they are certified, provide herbicide for them.

Question/Answer/Comment

· Is there a program for reseeding after removal of salt cedar? There’s been no reseeding along the river, because they think the seed is there and will sprout after the drought. Concern along the Pecos is that spray has taken out more than salt cedar. Carlsbad S&WCD is working with a rancher who lost grasses and shrub species. The FO is working case-by-case. This will be an issue all along the corridor.

· After reseeding 1,000 acres along the border, kochia came back first, which they didn’t seed. Now some of the seed used is appearing.

· Washing pipeline trucks is done but not broadly required or regulated. NM is behind neighboring states in laws concerning weeds in hay or on trucks.

· LCFO approval of drilling at Crow Flats required that equipment brought in be cleaned.

· RFO has twenty years of monitoring data and tracking composition at study sites that is used in making decisions.

Steve Henke, FFO

Steve said FFO’s Eddy Williams is a godsend to the weed program in NM. His focus is developing a cooperative agreement to address noxious weeds that calls for inventory, monitoring, education and treatment. He formed a rapid response team with the Cooperative Extension Service. When infestation is discovered, there is a cooperative agreement to treat, tied to 13 road management units in the San Juan Basin. O&G leaders in road management also address weeds on right of way. Particular challenges are thistle, Russian knapweed and leafy spurge. There is a program to treat and remove Russian olive and salt cedar in riparian areas and replace them with willow and cottonwood.

Question/Answer/Comment

· Is Siberian elm a problem? There’s a plan in place outside Tularosa to remove a large number of Siberian elms.

Jan Gamby, Las Cruces FO (Attachment 7)

Jan identified major problems with primary target species: African rue, Russian knapweed, Malta starthistle, yellow starthistle, camel thorn, salt cedar and Siberian elm. Numerous secondary species are important to partners. The primary strategy is developing partnerships for prevention, detection, education—tours, schools, calendar, newspaper articles, inventory, planning (including three counties), employing integrated weed management control, coordination, monitoring, evaluating, supporting research and technological transfer. The FFO has created a coordinated weed management area, and is developing cooperative agreements and encouraging local leadership to take active roles.

The 2003 budget includes a total of $87,000 for weed treatment. Accomplishments include 1,500 acres sprayed, 1,600 evaluated (for past treatment practices and sites), and 16,000 acres inventoried. She outlined 2004 objectives in all six counties in the FO management area, and addressed limitations. The FO is seeking alternative funds, distributing staff workload, and building partnerships. The challenge is to keep collaborative efforts moving forward.

Question/Answer/Comment

· The main herbicide used is tebuthiuron and the primary target is creosote bush. NMSU is testing new chemicals and combining old ones, and has recommended mixes, rates, and how and when to treat each species. The FO lends equipment and provides chemicals to licensed permittees.

· How is the general public being educated? The calendar is good but lacks close-ups. There are booklets and videos. Dr. Richard Lee was a key player, holding short courses and conferences. Frannie Miller, lead for NM, holds workshops in communities. There is a statewide multi-agency team. Newspaper inserts have been the broadest help. PBS has programs but is not reaching a large audience. Children are being taught.

· This educational role was traditionally addressed by counties and agricultural organizations.

· One-third of the work is done on non-federal land. Is BLM stepping into a vacuum? State and local agencies receive funding applied 90% to private lands. BLM has been a catalyst and leader in cooperative agreements to address the problem.

· In noxious weed control and in fire fighting, all agencies realize this needs to be a cooperative effort.

· Joe said the Legislature passed a statute on noxious weeds that might be a way to approach problems in some areas.

· Nothing is done about weeds in hay. The highway department spreads hay along roadways to stop weeds and then the weeds in the hay grow where it was spread.

· Ed Singleton recommended advocating for a NM weed-free hay policy. Most Western states have weed regulations.

Leslie Theiss, Carlsbad FO (Attachment 8)

She introduced Ray Keller, staff coordinator for the noxious weeds program. He said the FO has numerous partnerships, and showed a map of treatments done in 2003. The FO has spray equipment and chemicals they give to county and state road departments, S&WCDs and other licensed entities. He attends an annual meeting to discuss the prior year’s treatment and plans for the coming year. The FO has an MOA with state, federal and Lea County agencies. The FO treated 1,900 acres in 2003. BLM and S&WCDs developed an EA for treatment of salt cedar along the Pecos River and its tributaries, which was the foundation for 19 miles and 1,150 acres of salt cedar treated with Arsenal. They have pulled out roots along one side of the river and treated roots on the other side, with approximately the same results. However, the cost is quite different¾$450/acre for removal by hand vs. $200-250/acre for mechanical removal. The FO is monitoring pH, selenium, water quality and volume, and vegetation to assess results at study points from the border to Ft. Sumner dam. In Lea County, there are no licensed applicators and county policy is not to use herbicides. Lea County scrapes and Ray follows behind and sprays. There is cooperation with seismic companies to wash trucks coming and going. He said they wouldn’t have accomplished anything without their cooperators.

Question/Answer/Comment

· Water viability is not being checked specifically, but they have not noticed any fish kill¾24c labeling allows them to go to the water’s edge.

· The FO and cooperators have chopped, chained and burned in numerous ways.

February 25-27, 2004

FEBRUARY 26 RAC MEETING

CALL TO ORDER, OPENING STATEMENTS & CHECK-IN FROM RAC MEMBERS

Question/Answer/Comment

Agenda (Attachment 3)

Motion

Motion

OTERO MESA UPDATE

Tom Phillips, Las Cruces FO

Question/Answer/Comment

FO ACCESS ISSUES (Attachment 5)

Carlsbad FO

Roswell FO

Farmington FO

FIELD OFFICE UPDATES ON NOXIOUS WEEDS PROGRAM

Question/Answer/Comment

Question/Answer/Comment