File name: JACBudgetHearings2014_20140113_120325.dcr Folder: C:\Documents and Settings\happropriations\My Documents\JAC Audio 2014 0 ~ 1/13/2014 1:02:42 PM ~ Monday January 13, 2014 PM Session. Oil and Gas Commission and Office of State Lands and Investments 0 ~ 1/13/2014 1:02:42 PM ~ Start Recording 3 ~ 1/13/2014 1:02:46 PM ~ Pause 3 ~ 1/13/2014 1:08:06 PM ~ Resume 6 ~ 1/13/2014 1:08:08 PM ~ Bebout: Apology for being late. Welcome, Instructions. 33 ~ 1/13/2014 1:08:36 PM ~ Black: Director and introduction of Kathy Hutton, office manager. Successful in hiring new supervisors, drilling levels increasing. Issues because of activity: orphan wells, fracking, flaring, set backs. All issues to be looked at with respect to rules. New baseline water well testing rule. Continuing work with Pavilion area study with DEQ. Oil production increasing. Gas is dropping. Flaring being done in areas where there are no pipelines. Refer to handouts. Permits. Capture data from wells. Website used by public and industry. Graphs on appropriations and staffing. uptick in next bieenium is reflection of proposed 3 m funding to plug orphan wells. Staffing remains fairly level. We have a workforce with a long tenure..gaps created by retirement. 4:55 ~ 1/13/2014 1:12:57 PM ~ Bebout: 5:00 ~ 1/13/2014 1:13:03 PM ~ meier: hard look at flaring means what? 5:11 ~ 1/13/2014 1:13:14 PM ~ Black: have database of flaring, where it is occuring and why. Taking a look at modifying the rules. Oil well only for 15 days at an unlimited amount to test resevoir. After 15 days, 60 mcf per day without approval. Beyond the 60, takes permission. 6:09 ~ 1/13/2014 1:14:11 PM ~ Meier: Total of 6 months or time frame? 6:19 ~ 1/13/2014 1:14:21 PM ~ Black: time frame not limited on the less than 60 mcf 6:30 ~ 1/13/2014 1:14:32 PM ~ Dockstader: replacements of staff? 6:39 ~ 1/13/2014 1:14:41 PM ~ Black: Industry pay, and pay based on experience. 7:08 ~ 1/13/2014 1:15:10 PM ~ Moniz: Loss of revenue due to flaring? 7:17 ~ 1/13/2014 1:15:19 PM ~ bebout: southern prb..misinformation about volumes. 7:33 ~ 1/13/2014 1:15:36 PM ~ Black: 32 wells approved by superviosr or commission for excess of 60 per day. Douglas, public outreach meeting. Approved volumes vs actual are tremendously different, not flaring as much as they have requested permission for. GR no approval for over 1500 per day..only for specific circumstances and specific time limitations..GR not longer than 180 days. Do not have a number today..can get to you. 9:01 ~ 1/13/2014 1:17:04 PM ~ Bebout: media reports of millions cubic feet per day. Want accurate number of wells, how much and length of time. Commission responsible for what you see as waste. 9:47 ~ 1/13/2014 1:17:50 PM ~ Black: will give data. 10:01 ~ 1/13/2014 1:18:03 PM ~ Bebout: approval for gas plant? 10:09 ~ 1/13/2014 1:18:12 PM ~ Black: map of flaring wells, compare to pipeline infrastructure. drilling where infrastructure does not exist. 10:43 ~ 1/13/2014 1:18:46 PM ~ Bebout: some groups opposed to flaring, groups do not want gas plant.. 10:59 ~ 1/13/2014 1:19:01 PM ~ Bebout: Bonding 11:11 ~ 1/13/2014 1:19:13 PM ~ Black: Bond posted by company that covers all their wells statewide. 75000 is the amount, std bond. Bonds related to the status of a well. If well becomes idle the bonding requirement goes up...10 per foot. 12:03 ~ 1/13/2014 1:20:05 PM ~ Bebout: Temporarily abandoned ..plugging. 12:16 ~ 1/13/2014 1:20:18 PM ~ Black: 2 years on idle wells list, want it plugged. On website, operators may be lax in getting reports filed. large % of those not at risk of becoming orphnaed. Noncompliant, insufficiently bonded wells go on list. 13:16 ~ 1/13/2014 1:21:19 PM ~ Bebout: rules ? 13:21 ~ 1/13/2014 1:21:23 PM ~ Black: Statutory change in our rules, staff is drafting, 30 to 60 days. 13:38 ~ 1/13/2014 1:21:40 PM ~ Meier: Horizontal vs Vertical? 13:50 ~ 1/13/2014 1:21:52 PM ~ Black: Type does not matter. Cost to plug ... 14:06 ~ 1/13/2014 1:22:08 PM ~ Stubson: Powder River basin - When moved into category of wells that need addressed? depth in explanation? 15:04 ~ 1/13/2014 1:23:06 PM ~ Black: insufficiently bonded and not producing are tagged. Plan for plugging or payment on bonds. If unsuccessful, will file application for bond to be surrendered, then becomes an orphan well. 16:06 ~ 1/13/2014 1:24:08 PM ~ Moniz: # of orphan 16:16 ~ 1/13/2014 1:24:18 PM ~ Black: 1200 on state land, many more than that on underbonded list. will get list 16:48 ~ 1/13/2014 1:24:51 PM ~ Bebout: provided Don? 16:56 ~ 1/13/2014 1:24:58 PM ~ Black: at joint minerals committee, 17:14 ~ 1/13/2014 1:25:16 PM ~ Bebout; send it electronically 17:22 ~ 1/13/2014 1:25:24 PM ~ Meier: bond in place before stepping on property? 17:34 ~ 1/13/2014 1:25:36 PM ~ Black: yes, before well can be drilled, must have bond. Adequately bonded, at risk. Caol prices impacting. Bonding inadequate for thousands of wells. 18:15 ~ 1/13/2014 1:26:18 PM ~ meier: bonding based on number of wells? 18:26 ~ 1/13/2014 1:26:29 PM ~ Black: posted bond ...# of wells, posted amount changes.. 18:53 ~ 1/13/2014 1:26:55 PM ~ Meier: where did system break down of not having enough bonding? 19:08 ~ 1/13/2014 1:27:11 PM ~ Black: Commission is funded by conservation tax, used to operate commission and set aside money for use in circumstances like this. historic orphan well fund of 2.8 M. Outside of operator bonding, the tax and fund exist to take care of current. Economics of coal methane wells caused this. 20:16 ~ 1/13/2014 1:28:18 PM ~ Bebout: Bonding issues, Mill levy max? 20:30 ~ 1/13/2014 1:28:32 PM ~ Black: 8 Mils by statue, at 4 currently. commission makes decision 20:48 ~ 1/13/2014 1:28:50 PM ~ Bebout:? 20:52 ~ 1/13/2014 1:28:54 PM ~ Black: correct, industry supports inc in tax. 21:06 ~ 1/13/2014 1:29:09 PM ~ Bebout: what is 1 mill? 21:13 ~ 1/13/2014 1:29:16 PM ~ Black: roughly a million dollars 21:20 ~ 1/13/2014 1:29:22 PM ~ bebout: turn around APD"s? 21:38 ~ 1/13/2014 1:29:41 PM ~ Black: Powder river basin has inc..in APD's and some in other. Turn around time: target was 30 days, 1. changes with staff, ramp up in time frame..30 to 40 days. Concern of baseline water well testing rule..ramp up in number of APD submitted because those submitted before deadline do not have to comply with the new rule. 23:34 ~ 1/13/2014 1:31:37 PM ~ Bebout: 20% reduction of people and to the state by a major company. Sublette county company announced reduction and possible closing office. Impact of inability to develop natural resources on federal land..companies leaving to develop elsewhere? 24:24 ~ 1/13/2014 1:32:26 PM ~ Black: Operators are quitting federal lands. number of ADP's received and approved but not drilled on are high also. Federal aspects have impacted industry's feelings of what they can do in the state. 25:31 ~ 1/13/2014 1:33:33 PM ~ bebout: Oil and Gas commission, state regulatory body, facilitate happendings. Hydraulic fracturing. developed rules 3 years ago, became benchmark for country. Now federal bureacracy are doing their own rules..BLM fracking rules, 26:39 ~ 1/13/2014 1:34:41 PM ~ Black: BLM discussions. Wyoing rule is very strong, would be an overlap and added burden if feds added. 1 million comments on BLM rules. Consider working agreement with BLM for either their rule or a modifed agreement is provided across the state so no overlaop. That is not the only reason for not drilling in state but would help companies. 28:00 ~ 1/13/2014 1:36:03 PM ~ Bebout: MOU with OGCC... 28:34 ~ 1/13/2014 1:36:36 PM ~ Black: A rule not as challenging as BLM, not equal to it, 28:49 ~ 1/13/2014 1:36:51 PM ~ Bebout: driven at national level, have they asked for state opinion? 29:02 ~ 1/13/2014 1:37:04 PM ~ Black: yes, twice, Conversations prior to drafting the rule were nil 29:26 ~ 1/13/2014 1:37:29 PM ~ Bebout: timetable of rule 29:31 ~ 1/13/2014 1:37:33 PM ~ Black: EPA is doing a study on fracturing so BLM waiting. Well into 2014 before modified rule is brought out. 29:53 ~ 1/13/2014 1:37:55 PM ~ Bebout: municipalities have put in rules that there is no fracturing within boundairies. Constitutional? State wide ban? 30:23 ~ 1/13/2014 1:38:25 PM ~ Black: Creates a patchwork and a challenge for the state. better to have one rule. ......... 31:28 ~ 1/13/2014 1:39:31 PM ~ Bebout: Pavilion? timeline statutus, DEQ. EPA out of it. 31:46 ~ 1/13/2014 1:39:48 PM ~ Black: EPA meeting earlier, DEQ meeting this morning. Two components, well integrity and hits. experts, , review of report. Target was Dec ..goal of reports and reviews is completed and plan in place by the end of this year. hope to finish in next few months. 33:00 ~ 1/13/2014 1:41:03 PM ~ Bebout: EPA drilling flawed from beginning, data? What will you do? 33:16 ~ 1/13/2014 1:41:19 PM ~ Black: Part of previous analysis. Wells from previous study may only be refrenced, not studied. .... 34:07 ~ 1/13/2014 1:42:10 PM ~ Bebout: funding? 34:12 ~ 1/13/2014 1:42:14 PM ~ Black: ..will provide 34:27 ~ 1/13/2014 1:42:30 PM ~ perkins: Pooling. 640 spacing, APD granted for less than 640? 10% control where 90% of money comes from. 10 acres, do not do anything on purpose because they do not want development. Potential abuses> 35:59 ~ 1/13/2014 1:44:01 PM ~ Black: Key operators battling for size of ownership, intentions. First ADP determines operatorship. small % of applications.Drafting a change to our temporary spacing rule. 37:36 ~ 1/13/2014 1:45:38 PM ~ Bebout 1200 wells what percent ...? 37:45 ~ 1/13/2014 1:45:47 PM ~ Black: 99% 37:51 ~ 1/13/2014 1:45:53 PM ~ Bebout: Budget walk through 37:59 ~ 1/13/2014 1:46:01 PM ~ Black: page 3 - outlines categories. inc funding for orphan wells. 3 M exc request for biennium will give 5 million out of conservation tax. budget will remain close to previous bienniums except for a few areas. Conservation tax is largest part of funding. federal funding... page 4 = 400 employees, 39:28 ~ 1/13/2014 1:47:30 PM ~ bebout:? 39:31 ~ 1/13/2014 1:47:33 PM ~ Black: sorry 40 employees, primary duties outlined page 4, permittings, records, field inspection, underground control website. 40:14 ~ 1/13/2014 1:48:16 PM ~ Bebout: MOU relative to class 2 injection. updated? EPA renegotiation? 40:49 ~ 1/13/2014 1:48:51 PM ~ Black: yes, recent meetings, 41:07 ~ 1/13/2014 1:49:10 PM ~ Bebout: chair committees, like to know if we need to be involved..from legilative perspective. 41:31 ~ 1/13/2014 1:49:33 PM ~ Black: page 5 temporary spacing rule, benefit to staff and operators. Field inspections, 1 open position and one retirement. UIC program initiated in 1991. page 6 = inc in matters coming before commission and examiners. Orphan well plugging. goals of 300 wells per year is achievable, will re evaluate yearly. Understand what an at risk or idle well is. 43:09 ~ 1/13/2014 1:51:12 PM ~ Bebout: Get out and get started on these wells. What drove decision to get involved? 43:27 ~ 1/13/2014 1:51:29 PM ~ Black: Numbers of wells and public interest. orphan, idle, non -productive=for about 2 years, driven by drop in gas price. 600,000 to plug well from 1927. must prioritize wells plugged, CBM wells transfer. 44:46 ~ 1/13/2014 1:52:49 PM ~ Bebout: oepn hole, collapsing? 44:54 ~ 1/13/2014 1:52:57 PM ~ Black: well before surface, no records, different size casing, pg 7=website. data capture retention, working with ETS. page 8 = outline of budget request, departmental priorities, 3 M for plugging. pick up trucks, equipment repair. Inspectors in field on challenging roads cause replacement and maintenance isssues. 46:33 ~ 1/13/2014 1:54:36 PM ~ Bebout: Conservation tax..discussion of GF money. Is Gov consistent? 46:52 ~ 1/13/2014 1:54:54 PM ~ Jones: Gov focused solely on use of conservation tax dollars for orphan well plugging. 47:14 ~ 1/13/2014 1:55:17 PM ~ Black: page 9 organization chart. page 10 outline of summary of budget. 1. large percentage related to staffing. aditions for computers and software, equipment, facility services. Gov did not recommend changes but I think we can incorporate into budget we have provided. UIC CBA contribution. Page 11 = outline of what we do...administration, UIC, orphan well plugging. Short term will be issues with staff retirement. 56% eleigible to retire today. Question: reason staff stays is for insurance. Request for additional natural resource specialist, well testing. page 12 = outline of funds ouside of conversation tax. ...rent, hearing fees, Page 13 = exceptions for personnel. 50:26 ~ 1/13/2014 1:58:29 PM ~ perkins: application hearing fees..dropped from thsi biennum to next biemmium? 50:52 ~ 1/13/2014 1:58:54 PM ~ Hutton: Reduction in the hearing fees because we will do the rule change on the spacing so will reduce number of hearings. In 2013 heard over 1000 would like to get back to 2-300. 51:32 ~ 1/13/2014 1:59:35 PM ~ Black: spacing rules discussion with industry and staff..no negative feedback for making change. 51:51 ~ 1/13/2014 1:59:53 PM ~ Black: Page 13 request for NRS. page 14 = overtime compensation for summer work for field inspectors. Instate travel reduces the overtime (if inspector spends the night). Vehicles, 53:20 ~ 1/13/2014 2:01:23 PM ~ Stubson: tyupical of what you do or is it an inc in vehicle replacment per biennium 53:39 ~ 1/13/2014 2:01:41 PM ~ Black: typical page 16 = software... page 17 = hardware..scanner replacement... page 19, overtime expenses opposed to summer help. Vehicle replacement costs. page 20, direct bill, ETS billing, utilized interns. page 21, exception requests of 1 position, overtime inspects, 59:39 ~ 1/13/2014 2:07:41 PM ~ Stubson: EPA grant declining 59:57 ~ 1/13/2014 2:07:59 PM ~ Black: Do not know. 1:00:36 ~ 1/13/2014 2:08:39 PM ~ Black: page 25, 4 staff assigned to UIC program, which is working well. page 26, funding for orphan well plugging program, $3M agency funds plus $2M biennium to wrap up program. page 27, bond forfeit from operators, ie at risk wells. Seismic programs. page 28, $3M contract services with plugging companies. page 29, hold cash bonds from other operators, $3.2M on one at risk company. 1:06:37 ~ 1/13/2014 2:14:40 PM ~ Esquibel: Orphan wells program, 10 year plan. 1:07:07 ~ 1/13/2014 2:15:10 PM ~ Black: Plug 1200 wells in next 4 years. Re-evaluated each year, budget wise. 1:09:50 ~ 1/13/2014 2:17:53 PM ~ Black: Bids, 1,000 feet well, $47000-$50000 per well to plug, response to Meier 1:11:12 ~ 1/13/2014 2:19:15 PM ~ Esquibel: Future, well pads with directional drilling, orphaned? 1:11:43 ~ 1/13/2014 2:19:45 PM ~ Black: No well or operator; $14B judgment against company for orphaned wells. Bonding requirements to protect state in the future. 1:13:29 ~ 1/13/2014 2:21:31 PM ~ Perkins: Recovery action? 1:13:47 ~ 1/13/2014 2:21:49 PM ~ Black: No responsible party available. 1:14:32 ~ 1/13/2014 2:22:34 PM ~ 1:15:18 ~ 1/13/2014 2:23:20 PM ~ Pause 1:15:18 ~ 1/13/2014 2:44:35 PM ~ Resume 1:15:22 ~ 1/13/2014 2:44:40 PM ~ 060 OSLI - Office of State Lands and Investments Bridget Hill, Director Susan Child, Deputy Director Bill Crapser, State Forester Benjamin Bump, Assistant Director, Field Services Division Amanda Sewell, Assistant Director, Administrative Services Division Hill: Introduction of team. 3.5M land acres, 3.9M mineral acres managed by agency. Land transactions, keeping focus as land as a major asset, ie Grand Teton land exchange. $45M federal payment expected, not met January 2013. Exchange possibility. Board of Land Commissioners approve an amendment to agreement with federal government. Valuation important factor. Legislature should be involved in negotiations as will have to approve changes. Idle wells on properties, but not many orphan wells, so will be make sure protected, bonding.11 CBM wells, one another which were orphaned. 1400 idle wells. 1:27:53 ~ 1/13/2014 2:57:11 PM ~ Hill: Rules related to bonding, $10,000 per well, or blanket bonds, could request additional bonds. $10/foot, as per Oil and Gas Commission. 1:28:53 ~ 1/13/2014 2:58:11 PM ~ Bebout: Status on lands, clear titles, agencies reporting back to office as to what the state owns. Available electronically. 1:30:52 ~ 1/13/2014 3:00:10 PM ~ Bebout: School sections in AZ 1:32:12 ~ 1/13/2014 3:01:30 PM ~ Hill: Revolving loans, clean water act, will decrease, as well as for drinking water.. Under-utilization of drinking water program. Full utilization of clean water program, so will impact local communities. Wind energy leases, not much activity. Affected by lack of transmission capacity, or transmission permitted. Permits tiered as to time limits and development. 1:37:00 ~ 1/13/2014 3:06:17 PM ~ Bebout: 2 major acquisitions, Duncan Ranch near Casper and Mariah Ranch, northeast of Laramie. access issues? 1:37:40 ~ 1/13/2014 3:06:58 PM ~ Hill: Public access gained to Duncan and Mariah Ranches. Mariah Ranch did not received legislative approval. Falls Ranch purchase near Casper had access issues, not acquired. Interest in parcel near Riverton for sale. 1:42:42 ~ 1/13/2014 3:12:00 PM ~ Hill: Page 4, Decrease from base budget to standard budget, $33M due to 2012 county suppression fire funds. Also decrease of $900,000 for trust preservation not in standard budget. ETS transfer of personnel and reduction of support services. 1:44:54 ~ 1/13/2014 3:14:11 PM ~ Meier: ETS ? 1:45:17 ~ 1/13/2014 3:14:35 PM ~ Hill: ETS was $500,000 reduction. 1:45:41 ~ 1/13/2014 3:14:59 PM ~ Meier: Why $100M reduction in 100 series? 1:46:07 ~ 1/13/2014 3:15:25 PM ~ Hill: Actually not 100 series, not 100 unit 1:46:24 ~ 1/13/2014 3:15:41 PM ~ Bebout.... 1:47:09 ~ 1/13/2014 3:16:27 PM ~ Hill: Agency authority explanation, 30 Million operating budget. 20 exception requests on page 11 - prioritized. Director Lance inc. efficiencies and streamlined proces. 57% of requests are computer related. 27$ Trust preservation and enhancement 1:48:54 ~ 1/13/2014 3:18:12 PM ~ Bebout: Aeronautic loans..any money outstanding? 1:49:06 ~ 1/13/2014 3:18:23 PM ~ Hill: IN funds available we do. 1:49:16 ~ 1/13/2014 3:18:34 PM ~ Bebout: hydrostat bill money? 1:49:24 ~ 1/13/2014 3:18:42 PM ~ Hill: 2 % for agency operations..Page 22=Director's budget - administration and support - budget went up. relates to agency reorganization. Compliance division put into administration. Moved maintenance contracts for vehicles into my budget. Exc request = 8000 for contract to receive index price info - oil price info. need for conducting audit to check if failed contract is based on index. Next request is for software and hardware, 4 year rotation, microsoft, GIS, appraisal software. Maintenenace contracts of 400,000 is #1 priority..maintain LRCS - Leasing and Royalty compliance system 2005 Task force study recommended change to ful automation. Did that by creating LRCS system. 1:53:54 ~ 1/13/2014 3:23:12 PM ~ Bebout: ETS consulted? 1:53:59 ~ 1/13/2014 3:23:17 PM ~ Hill: yes, approved by ETS 1:54:07 ~ 1/13/2014 3:23:25 PM ~ Bebout: outside vendor, how much already spent? 1:54:16 ~ 1/13/2014 3:23:34 PM ~ Hill: will get number 1:54:21 ~ 1/13/2014 3:23:39 PM ~ Bebout: Chain of events and RFP. more money in future because of why? 1:54:56 ~ 1/13/2014 3:24:14 PM ~ Hill: Maintenance and upgrades in technology. Integrate with other systems. 30000 for biling received from ETS. Staff sent to ETS sow ill receive bills. 1:55:47 ~ 1/13/2014 3:25:05 PM ~ Bebout: Website inhouse? 1:55:53 ~ 1/13/2014 3:25:11 PM ~ Hill: We are having ETS help us. Originally our staff did it. ETS is helping us update it. 1:56:17 ~ 1/13/2014 3:25:35 PM ~ Bebout: ... 1:56:27 ~ 1/13/2014 3:25:45 PM ~ Hill: upgrades for system capabilities, help our customers ie mineral leasees. Better interface. Would help with audits..make sure we are receiving proper amount of money. Right now fo4 audits looking at OCGG website, our royalty website to detrmine amount. 1:57:46 ~ 1/13/2014 3:27:03 PM ~ Bebout: how did you do this? 1:57:51 ~ 1/13/2014 3:27:09 PM ~ Hill: LRCS was custom built in our office so we have to rely on them. 1:58:27 ~ 1/13/2014 3:27:45 PM ~ Bebout: not really any competition.. 1:58:36 ~ 1/13/2014 3:27:54 PM ~ Hill: gov approved previous. Now page 38= unit 102 - trust land mgt- leasing surface and minerals.. Std budget and base budget are decrease, due to reorganization. Exception request = 137,000, priority 2 and 5; computer related, to maintain basic gov system. Created searchable database..see what need to do on the land so do not have to send people out 4 or 5 times. 906,000 = component of enhancing the basic gov system. and trust enhancement. Agency has authority to use funds when appropriated to enhance projects. Page 34 shows examples. People submit proposals. We look at those, at generation of more income 735000 for projects that are out there. 2:02:38 ~ 1/13/2014 3:31:56 PM ~ meier: Any analysis...if we spend 196000, will result in more than 196000. effectiveness? 2:03:18 ~ 1/13/2014 3:32:36 PM ~ Hill: We do cost benefit analysis , come later in process, based on projected project. When receive an actual project, do the analysis. 2:04:02 ~ 1/13/2014 3:33:19 PM ~ Meier: hypothetical things you want to do? When you want to do them, will do a cost benefit analysis? 2:04:24 ~ 1/13/2014 3:33:42 PM ~ Hill: yes, for as long as we have had the trust, preservation and enhancement trust. 2:04:56 ~ 1/13/2014 3:34:14 PM ~ Bebout: provide info 2:05:05 ~ 1/13/2014 3:34:23 PM ~ Child: can provide since inception of trust, cost benefit, over time. 2:05:25 ~ 1/13/2014 3:34:43 PM ~ Bebout: land acquisitions and sales 11 of them in 2013. 2:05:40 ~ 1/13/2014 3:34:58 PM ~ childs: in the annual report. 2:05:49 ~ 1/13/2014 3:35:07 PM ~ bebout: online? 2:06:00 ~ 1/13/2014 3:35:18 PM ~ Richards: Online with state libary 2:06:10 ~ 1/13/2014 3:35:28 PM ~ Bebout: provide that 2:06:15 ~ 1/13/2014 3:35:33 PM ~ harshman: school foundation funds...gov discussion. 2:06:25 ~ 1/13/2014 3:35:43 PM ~ hill: traditionally from school foundation funds, we recommend GF in original rec, historically have come from SFF. 2:06:56 ~ 1/13/2014 3:36:14 PM ~ harshman: What lands, not all school lands. 2:07:25 ~ 1/13/2014 3:36:43 PM ~ child: ... 2:07:32 ~ 1/13/2014 3:36:50 PM ~ Hill: page 45 - negative requests, 41000 not justified, believe 15000 is adequate. Wy Assoc of Munic conference, and....Clean water program requirements for audits and compliance reviews, federal funds. Do not have electronic sytem, using excell spreadsheets. 66000 for collection of info so we can submit to fed govt online. For drinking water state revolving loan fund, 66000, for same. Reduction of 6 M, based on EPA reductions they would give us 80% federal funds and 20% state funds. 2:09:57 ~ 1/13/2014 3:39:15 PM ~ bebout; out of std budget? 2:10:04 ~ 1/13/2014 3:39:21 PM ~ Hill: correct. Federal fund audits and reviews, 2000 is inc in cost, same amount in drinking water. 2:10:24 ~ 1/13/2014 3:39:42 PM ~ bebout: how much in water account? 2:10:32 ~ 1/13/2014 3:39:50 PM ~ Hill: yes, in annual report. 2:10:40 ~ 1/13/2014 3:39:58 PM ~ Hill: page 52=grant and loan program. NOT federal ones. dec in std budget. no exc requests. 2:11:16 ~ 1/13/2014 3:40:34 PM ~ bebout: status of farm loans or irrigation loans? 2:11:26 ~ 1/13/2014 3:40:44 PM ~ Hill: not very utilized because of private loan rates. 2:11:38 ~ 1/13/2014 3:40:55 PM ~ bebout: loan for new ranchers ,,several years ago? 2:11:50 ~ 1/13/2014 3:41:08 PM ~ Hill: Beginning ag producer loan, do see more activity because of competitiv interest rate. 2:12:10 ~ 1/13/2014 3:41:28 PM ~ bebout: money set aside and out? 2:12:17 ~ 1/13/2014 3:41:35 PM ~ Hill: in our report 2:12:23 ~ 1/13/2014 3:41:41 PM ~ Hill: unit field services division, Director Lance created in agency reorganization. Page 62. Transferred appraisers, ..It...to this division. We have no base budget related to this division so now we have inc. That is all net to zero process. 2:13:40 ~ 1/13/2014 3:42:58 PM ~ bebout: taken away from where? 2:13:48 ~ 1/13/2014 3:43:06 PM ~ Hill: from several places, mineral leasing, primarily trust land mgt, IT, grants and loans, Exc request = 21,000 for motor vehicle supplies, primarily gas. Gov denyed request. Exc request = 9000 for telecommunications, field staff, air service charges for smart phones, tablets, 2:15:27 ~ 1/13/2014 3:44:45 PM ~ Hill: Royalty compliance division on page 64 = units swept up into field services so no std budget. 2:15:57 ~ 1/13/2014 3:45:15 PM ~ Bebout: who has budget for presentation? Glen and Curt 2:16:18 ~ 1/13/2014 3:45:36 PM ~ Hill: position transfer to ETS for consolidation, GIS specialist so no budget for 109 unit 2:16:38 ~ 1/13/2014 3:45:56 PM ~ Meier: people transferred...3 from minerals, where for the rest. 2:17:01 ~ 1/13/2014 3:46:19 PM ~ Hill: 7 to field services, I misspoke. 8 went to admin from royalty compliance, 2 to field services, 4 to trust, land , mgt which works on mineral leasing, 1 to Forestry. 2:18:33 ~ 1/13/2014 3:47:51 PM ~ Meier: go over again. 7 from trust land, 1 from GIs, 1 from trust, loan 1 from...1 from forestry ... 2:19:08 ~ 1/13/2014 3:48:26 PM ~ Hill: Page 74 = drinking water state revolving fund unit - Exc requests track the ones from clean water except for the 18,050 of which 16,000 is for a 24 month contract with Wyo Associations of Rural Water..Hired a circuit rider to supply assistance with drinking water problems. minimum of 35 contacts per month to communities of under 3300. 166 is MOU with forest service on page 77 - to hire a person from the forest service who is liason, housed in forestry division, pay costs upfront, 100% federal reimbursement. 2:21:48 ~ 1/13/2014 3:51:06 PM ~ Stubson: Handout of 900 series - helicopter services under 401, more explanation, maybe all fire suppression. 2:22:30 ~ 1/13/2014 3:51:48 PM ~ hill: forestry and fire related. 2:22:50 ~ 1/13/2014 3:52:08 PM ~ Bebout: Biennialization of reductions made in the interim. 2:23:02 ~ 1/13/2014 3:52:20 PM ~ Bill Crapser, State Forester. 2:23:15 ~ 1/13/2014 3:52:33 PM ~ meier: state loan investment board for consultants. 2:23:43 ~ 1/13/2014 3:53:01 PM ~ Crapser: Rain - went from record fire season to light fire season. Saratoga sawmill reopened. bug kill, put state land back under mgt. bark beetle project, 130,000 acres surveyed in black hills, saved trees with aggressive work. Task force recommendations for future. 12 Million of forest. 2 m = private, 300,000 trust owned, remainder is federal govt owned. Working with BLM on projects for efficiency and effectiveness. 2:26:16 ~ 1/13/2014 3:55:34 PM ~ Stubson: Black hills success - select committee, South dakota side of border actions and impact on WY? 2:26:45 ~ 1/13/2014 3:56:02 PM ~ Crapser: SD state program of Custer State park, can tell state line by brown on their side and green on ours. Custer State park is successful. We are more aggressive with cut and chunk program. Debate of effectiveness. Foresters believe in it.. Cut and chunk into pieces and stack it. SD has not utilized that program. 2:28:15 ~ 1/13/2014 3:57:33 PM ~ Stubson: long term prognosis? 2:28:33 ~ 1/13/2014 3:57:51 PM ~ Crapser: ponderosa types good chance of staying ahead of beetles...cycle for beetles, 2:29:15 ~ 1/13/2014 3:58:33 PM ~ Stubson: cold snaps? impact on bark beetle population? 2:29:28 ~ 1/13/2014 3:58:46 PM ~ Crapser: huge impact on invasive species. Pine beetle are native. Need early winter, late spring of several weeks below zero to impact the beetle population. 2:30:07 ~ 1/13/2014 3:59:25 PM ~ Bebout: Beetles, spruce, fir, impact..alarmed about? task force looking at it? 2:30:44 ~ 1/13/2014 4:00:02 PM ~ Crapser: task force has to look at where do we manage forests that are still green. Spruce bark beetle, douglas fir beetle. Both have outbreaks in part of state but not like mountain pine beetle. More pine trees in state. 2:31:44 ~ 1/13/2014 4:01:01 PM ~ Bebout: task force - harvesting. Other areas focus like black hills? 2:32:20 ~ 1/13/2014 4:01:37 PM ~ Crapser: I hope that is the direction we look at. 2:33:02 ~ 1/13/2014 4:02:20 PM ~ Bebout: forest svc mgt in past, state involved in future.. 2:33:19 ~ 1/13/2014 4:02:37 PM ~ Esquibel: Cut and chunk program, wood is stacked, does it have warning signs on it so public does not pick up and use? 2:33:45 ~ 1/13/2014 4:03:03 PM ~ Crapser: medicine bow area is forest service line, danger trees, beetles long gone. Cut and chunk , right at stump, beetles can not survive, 2:34:50 ~ 1/13/2014 4:04:07 PM ~ Esquibel: in black hills in late fall? 2:35:02 ~ 1/13/2014 4:04:20 PM ~ Crapser: Treatment from 1 sept to 1 april. 2:35:38 ~ 1/13/2014 4:04:56 PM ~ Esquibel: Moorecroft, one side of mtn with beetle kill, another side not? 2:35:56 ~ 1/13/2014 4:05:14 PM ~ Crapser: not sure. bettle movement is wind driven, managed land that was thinned, so helped prevent. 2:36:50 ~ 1/13/2014 4:06:08 PM ~ Dockstader: 90,000 trees, how much was spent, state or federal? 2:37:07 ~ 1/13/2014 4:06:25 PM ~ Crapser: 2012-2013 approx 900,000 spent. ..66000 acres spotted, 32000 acres in Weston, 3300 in ...about 60% on fed land....24,600 on federal land, 34000 on state and federal land. 2:38:40 ~ 1/13/2014 4:07:58 PM ~ Dockstader: who decides treatment on private land? 2:38:52 ~ 1/13/2014 4:08:10 PM ~ Crapser: partnership with land owners, timber company, agency...air photos, spend money where chance of control of beetles is possible. 2:39:31 ~ 1/13/2014 4:08:49 PM ~ Bebout: fed help? 2:39:36 ~ 1/13/2014 4:08:54 PM ~ Crapser: fed help in kind not money 2:39:46 ~ 1/13/2014 4:09:04 PM ~ Bebout: forest overview? 2:39:55 ~ 1/13/2014 4:09:13 PM ~ Crapser: Feb 13 upon adjournment in room 306..will do that. 2:40:13 ~ 1/13/2014 4:09:31 PM ~ Bebout: Stubson, Ag committee, 2:40:26 ~ 1/13/2014 4:09:44 PM ~ Crapser: 2:40:37 ~ 1/13/2014 4:09:55 PM ~ Bebout: how much appropriated, trade off? 2:40:49 ~ 1/13/2014 4:10:07 PM ~ Crapser 13-14 = 1.2 M . light fire season, gov was authorized to take 1 M out of fire suppression and put in weed and pest. 2:41:22 ~ 1/13/2014 4:10:40 PM ~ Bebout: so will be spent in the spring 2:41:29 ~ 1/13/2014 4:10:47 PM ~ Crapser: correct 2:41:33 ~ 1/13/2014 4:10:51 PM ~ Dockstader: amount spent in Weston and Crook county, only place? 2:41:49 ~ 1/13/2014 4:11:07 PM ~ Crapser: opened statewide, only place conservation requested, some money through wild life trust fund, weed and pest. 2:42:16 ~ 1/13/2014 4:11:34 PM ~ bebout: wildlife trust fund? 2:42:23 ~ 1/13/2014 4:11:41 PM ~ Crapser: you split the dollars into ag weed and pest, wildlife and forestry. 2:42:45 ~ 1/13/2014 4:12:03 PM ~ Bebout: provide breakdown, 2:42:55 ~ 1/13/2014 4:12:13 PM ~ Crapser: page 78 = slight decrease on std budget for IT going to ETS, transfer of person between divisions. Exc request of 37875= ETS computer related for software devlopment. Website working with google platform, developing fore reporting and time allocation systems. Gov addition of 5 M in budget is for bark beetle project....Gov decided to put in our budget and not split them. NEEPA money... 2:45:26 ~ 1/13/2014 4:14:44 PM ~ Bebout: timber ready to be harvested, devastated by beetle, no one from feds to x the tree. 2:45:48 ~ 1/13/2014 4:15:06 PM ~ Crapser: yes 2:45:54 ~ 1/13/2014 4:15:12 PM ~ bebout: do we pay the federal govt for a damaged tree? 2:46:07 ~ 1/13/2014 4:15:25 PM ~ Crapser: it would be a timber sale and it would bea bid sale. 2:46:19 ~ 1/13/2014 4:15:37 PM ~ Bebout: using state dollars to provide the BLM, once bid takes place, would money be offset by the feds? 2:46:40 ~ 1/13/2014 4:15:58 PM ~ Crapser: Sen Hicks could anseer better, fed govt would not want to. 2:46:59 ~ 1/13/2014 4:16:17 PM ~ Bebout: talk about it, footnote amount? 2:47:22 ~ 1/13/2014 4:16:40 PM ~ Crapser: 1 AWAC and seasonal positino for 2 yr period for pilot test...300-350,000. 2:47:44 ~ 1/13/2014 4:17:02 PM ~ Bebout: out of 5 million requested? 2:47:53 ~ 1/13/2014 4:17:11 PM ~ Crapser: up to you 2:47:58 ~ 1/13/2014 4:17:16 PM ~ bebout: DON - language for footnote, cost, share of revenue. 2:48:13 ~ 1/13/2014 4:17:31 PM ~ Meier: is it prohibited to charge the mill owner, then he reduces the bid, 2:48:34 ~ 1/13/2014 4:17:52 PM ~ Crapser: mill in encampment also so competition for timber sale. 2:48:48 ~ 1/13/2014 4:18:06 PM ~ Bebout: would need trees marked before bidding on it.. get money back. 2:49:01 ~ 1/13/2014 4:18:19 PM ~ Crapser: 2:49:07 ~ 1/13/2014 4:18:25 PM ~ Bebout: why 5 Million, cost analysist? 2:49:19 ~ 1/13/2014 4:18:37 PM ~ Crapser: Gov office 2:49:29 ~ 1/13/2014 4:18:47 PM ~ Jones: Preliminary discussion with Mr. Budd, 2:49:58 ~ 1/13/2014 4:19:15 PM ~ bebout: need more analysis..cost benefit.. 2:50:08 ~ 1/13/2014 4:19:26 PM ~ Jones: will followup 2:50:25 ~ 1/13/2014 4:19:43 PM ~ Meier: Benefit to private land folks and to local mills, Weston county... ongoing program with cost share instead of out of state treasury. 2:51:35 ~ 1/13/2014 4:20:52 PM ~ Crapser: doable 2:51:50 ~ 1/13/2014 4:21:07 PM ~ Bebout; can we get before mark up? 2:52:01 ~ 1/13/2014 4:21:19 PM ~ Crapser: will try..Page 86 = federal excise property program, supports the miiltary equipment change into fire trucks, etc. .. 2:52:59 ~ 1/13/2014 4:22:16 PM ~ Bebout: 10 cents on the dollars deals? 2:53:07 ~ 1/13/2014 4:22:25 PM ~ Crapser: Some but since Oct, DOD takes a second look at equipment before getting rid of it. 6800 milesm 1600 miles on trucks, flatbed trailer, ..dessert tan. 2:54:13 ~ 1/13/2014 4:23:31 PM ~ Bebout: has to be for govt entities, not personal use. fremont and sheridan county 2:54:30 ~ 1/13/2014 4:23:48 PM ~ Crapser: Sheridan county and shop 2:54:52 ~ 1/13/2014 4:24:09 PM ~ Hastert: .... 2:54:58 ~ 1/13/2014 4:24:16 PM ~ Crapser: 400 pieces of fire equipment htat has been relatively inexpensive for state and county to get because of that program. 20 M in suppression account above paying for fires. 1 M for pine beetle remidiation. spent only about ......have 18.6 M blance in suppression account moving forward. Gov letter to extend the dollars. Forest service, accounting system, have only received two bills on fires from 2012..still owe forest service and blm around 26 M for 2012 fires. Have money currently, some dollars are scheduled to revert at the end of the biennium. 2:57:30 ~ 1/13/2014 4:26:48 PM ~ bebout: best guess 2:57:34 ~ 1/13/2014 4:26:52 PM ~ Crapser: 43 Million in 2012--probably 2-3 million below that estimate, pushing costs back to federal agency.. 2:58:06 ~ 1/13/2014 4:27:24 PM ~ Bebout: how do they do that. They run it and pay bills. daily approval control? 2:58:29 ~ 1/13/2014 4:27:47 PM ~ Crapser: Fires, federal agencies do not take over. Teams manage the fires. They are interagency, sign a delegation of authority with incident commander. Emergency fire suppression fire account...Issues where they think fire is federal fire but then say it is half state and we owe money. We push back. 2:59:52 ~ 1/13/2014 4:29:10 PM ~ Bebout: who tracks money? 2:59:58 ~ 1/13/2014 4:29:16 PM ~ Crapser: Daily accounting... Forest service works as bank, Ex: oil creek fire outside of Newcastle is state so bill will be sent from forest service to the state. 3:01:01 ~ 1/13/2014 4:30:19 PM ~ bebout: huge exposure..fire tragedy in Arizona, loss of life. What is state exposure? 3:01:23 ~ 1/13/2014 4:30:41 PM ~ Bebout: Governmental claims act, what happens to the state of wyoming 3:01:43 ~ 1/13/2014 4:31:00 PM ~ Crapser: County has responsibility for private land. We do on BLM, trust land, forest service. Critical incident would open everyone to exposure. Arizona situation - second guessing of people due to personal liability and responsibility. AZ OSHA sited another AZ agency..can't answer question. 3:03:22 ~ 1/13/2014 4:32:40 PM ~ Nicholas: cost of sinks canyon fire. 3:03:33 ~ 1/13/2014 4:32:51 PM ~ Crapser: I think about 3.5 Million 3:03:45 ~ 1/13/2014 4:33:03 PM ~ Crapser: pg 97 - fire mgt budget ..last biennium seperated fire folks out of forestry. 5 permanent, 4 seasonal assigned to fire budget. Exc request = transportation equipment, crew carriers, 2 replacement vehicles. get back into rotation. Next esc request for 148000 for extending helicopter program. Stubson asked about helicopters in budget. Worland sky aviaition, duncan ranch, 100 day contract, daily cost and flight cost. Modest rate increase. unpredictable fire season. Exc requests gives rate inc and extension of contract for about 10 days. 3:07:08 ~ 1/13/2014 4:36:26 PM ~ Stubson: 105-110 days. How many days was helicopter in use and not on standby? 3:07:27 ~ 1/13/2014 4:36:45 PM ~ Crapser: 120 hours is what contract is based on. IN 2012, 57 fires and 257 hours, 138 hours on 27 fires,. sits a lot of days but is there wehn we need it. Avg launch is 15 minutes with 3 firefighters on board and 2 in chase truck. Only state in country that has 3 federal employees that fly when we launch. 3:09:37 ~ 1/13/2014 4:38:55 PM ~ Crapser: federal grants..103 - forestry assistance and fire training..6.1 M std budget..down next year. Grants are competative, did lousy this year. 3:10:41 ~ 1/13/2014 4:39:59 PM ~ Bebout: sequestration impact? 3:10:48 ~ 1/13/2014 4:40:06 PM ~ Crapser: could be. fed money for base operations payroll, most are pass through try to max what gets out to county.. 3:11:19 ~ 1/13/2014 4:40:36 PM ~ Bebout: wont know amount until yiou get it? 3:11:27 ~ 1/13/2014 4:40:45 PM ~ Crapser: yes 3:11:36 ~ 1/13/2014 4:40:54 PM ~ meier: tree planting? 3:11:42 ~ 1/13/2014 4:40:59 PM ~ Crapser: living snow fence project.. 3:11:58 ~ 1/13/2014 4:41:16 PM ~ Meier: replanting different things in areas of beetle kill? 3:12:17 ~ 1/13/2014 4:41:35 PM ~ Crapser: lodgepole pine difficult to find alternatives but we look. Russian olive in CRP plantings, wrong on it. 3:12:47 ~ 1/13/2014 4:42:05 PM ~ Bebout: ... 3:13:17 ~ 1/13/2014 4:42:35 PM ~ Crapser: think ged grant money will continue to decrease. 3:13:29 ~ 1/13/2014 4:42:47 PM ~ Jones: gov letter on carryforward of GF, bark beetle does not reflect effective immediately but will see gov letter on that. 3:13:57 ~ 1/13/2014 4:43:15 PM ~ Bebout: 5 million that you will tell us why we need? 3:14:08 ~ 1/13/2014 4:43:26 PM ~ Jones: yes. 3:14:11 ~ 1/13/2014 4:43:29 PM ~ Bebout: Thank you Bill. 3:14:31 ~ 1/13/2014 4:43:49 PM ~ Crapser: we received help previous year from other states, then last year we sent individuals out of state to help and charged other states. 3:14:56 ~ 1/13/2014 4:44:14 PM ~ Hill: Pge 102 Mineral royalty grant program, funds distributed to local comunities from federal mineral royalties, no changes or bud exc request. 3:15:36 ~ 1/13/2014 4:44:54 PM ~ Bebout: reflect changes due to sequestration? 3:15:47 ~ 1/13/2014 4:45:05 PM ~ Richards: no - none of funds below cap of 200 Million will see impact. 3:16:04 ~ 1/13/2014 4:45:22 PM ~ Hill: page 109 - grants within the state from loan and investment board to foster transportation for the benefit of the general public. Traditionally at 2 Million. Interest off transportation fund. asking for 2 million, recognizing that the interest on account would not add up to 2 m so would not distribute grants unless interest income was in hand. INCORRECT NUMBERS projected, numbes are lower and less than the 2 million.... 3:17:58 ~ 1/13/2014 4:47:16 PM ~ Meier: corpus of transportation fund, bonds with one time capital gain.? 3:18:15 ~ 1/13/2014 4:47:33 PM ~ Hill: not sure we get 90% of interest from funds. 3:18:28 ~ 1/13/2014 4:47:46 PM ~ meier: concern - took one time captial gain, now have lower rate. may have other areas in budgets like this... 3:19:02 ~ 1/13/2014 4:48:20 PM ~ Hill: will find out wher from. 3:19:10 ~ 1/13/2014 4:48:28 PM ~ Meier: came from Sen Thomas work - Amtrak funds cut out of state because of taking amtrak out of state. We had one time capital gains due to bond sales, gains wnet to GF. 3:19:52 ~ 1/13/2014 4:49:10 PM ~ Bebout: find out the amount. 3:20:00 ~ 1/13/2014 4:49:18 PM ~ hill: I will 3:20:04 ~ 1/13/2014 4:49:22 PM ~ Meier: double check the consultant fees showing up in your budget, thjought it showed up in treasurer's report so double charged? 3:20:38 ~ 1/13/2014 4:49:56 PM ~ Hill: portion in my budget, look on page 22- 642987 in 900 series..for that contract. 3:21:09 ~ 1/13/2014 4:50:27 PM ~ Bebout: 8% GF reductions..did not biennialize, 3:21:27 ~ 1/13/2014 4:50:45 PM ~ Hill: We gave up two positions, FT, reduced our 200 sereis money by 135000, reduced. state match for drinking water. 3:21:57 ~ 1/13/2014 4:51:15 PM ~ Bebout: did not reduce drinking water this time,. reduced revolving loan fund. Was that in general budget before..? did have another 1 m reduction? 3:22:26 ~ 1/13/2014 4:51:44 PM ~ hill: correct 3:22:30 ~ 1/13/2014 4:51:48 PM ~ Richards: yes reduced - in exception request, 3:22:46 ~ 1/13/2014 4:52:04 PM ~ Hill: reduction in exception request. 3:22:54 ~ 1/13/2014 4:52:12 PM ~ Richards: reduction had to occur after they calculated std budget, sustained reduction going forward, because of reduction in federal funds, 3:23:32 ~ 1/13/2014 4:52:50 PM ~ Bebout: did get doubled. 3:23:45 ~ 1/13/2014 4:53:03 PM ~ Bebout: Duncan ranch - how much money generated for that investment. spent 6 million, getting 20000 per year. one long term agrreement for 30 year. find out, same for Mariah 3:24:35 ~ 1/13/2014 4:53:53 PM ~ hill: absolutely. 3:24:40 ~ 1/13/2014 4:53:58 PM ~ Bebout: 3:25:10 ~ 1/13/2014 4:54:28 PM ~ Stop Recording