Dolores Public Lands Office Highway 184 Dolores, CO Ph (970) Fax (970)

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1 USDA Forest Service San Juan National Forest Mancos/Dolores Ranger District Dolores Public Lands Office Highway 184 Dolores, CO Ph (970) Fax (970) USDI Bureau of Land Management State of Colorado Tres Rios Field Office File Code: 1950 Date: November 23, 2011 Dear Interested Party, The Dolores Public Lands Office is seeking public input during the early phases of planning for the Kinder Morgan 3D Seismic Project. You have received this letter because you have either been identified as a property owner within, near and/or adjacent to the Project Area, or because you may have some interest in these activities. We are inviting your input on this proposal. The proposal is similar to the Bill Barrett Corporation Doe Canyon seismic project that was evaluated in 2009 and 2010, but the Kinder Morgan project covers a larger area. Bill Barrett Corporation has withdrawn their project proposal. Project Location The Project Area is approximately 134 square miles (86,000 acres), including public lands administered by the U.S. Forest Service (USFS) and the Bureau of Land Management (BLM), and private lands. The project is located in Dolores County, Colorado in portions of Townships 39, 40, and 41 North and Ranges 16, 17, and 18 on the east and west side of the Dolores River Canyon (see attached map). Lands on the east side of the river are in the San Juan National Forest and the west side is approximately ⅔ private and ⅓ BLM land. One Environmental Assessment (EA) will be completed followed by separate decision documents, one for the BLM administered lands and one for the FS administered lands. The deciding officer for Forest Service will be the Mancos/Dolores District Ranger, and the deciding officer for the BLM will be the Tres Rios Field Manager. Purpose The purpose of this project is to utilize three-dimensional (3D) seismic survey technology to locate subsurface fluid mineral resources. Seismic exploration allows for mineral resource evaluation with less impact than exploratory drilling. Minimizing and/or avoiding impacts to natural resources while facilitating the development of granted mineral rights concurs with the goals of the USFS and BLM. The Kinder Morgan 3D Seismic Project contributes to the need for responsible development of energy resources produced in an environmentally sound manner. The project complies with the goals and objectives outlined in the Amended Land and Resource FS a

2 Management Plan for the San Juan National Forest (1992) and the San Juan/San Miguel Resource Management Plan (1985). Proposed Action The USFS and BLM propose to authorize Kinder Morgan CO 2 Company (Kinder Morgan) to use public lands for operations associated with a 3D seismic study. Kinder Morgan is proposing to use a seismic survey to look for reserves of carbon dioxide (CO 2 ). The proposed 3D seismic survey area includes both private and public lands in Dolores County. Seismic surveys send sound energy waves (using an energy source like dynamite or vibration) into the earth and the different layers within the earth's crust reflect this energy back in uniquely different ways. The reflected energy waves are recorded on the surface over a specific period of time using specialized recording equipment called geophones. The collected data are processed using specialized software that provides a profile (map) of the sub-surface geologic units. Geologists and/or geophysicists can interpret this information to identify possible mineral reserves. The work would be conducted in two phases: 1) Shot-hole Drilling and 2) Data Acquisition. Both phases of the work are described below. Shot-Hole Drilling: Kinder Morgan proposes using helicopters to lift heli-portable drill rigs (see picture) from hole to hole eliminating the need for wheeled drill buggies. Three small, lightweight helicopters designed for lifting (called Lamas) will be used to move the drill rigs and equipment. Each helicopter will move 5 drill rigs, leap-frogging them down the shot-hole lines. There would be approximately three helicopters and fifteen drill rigs operating in three distinct areas at any time. Each drill is operated by a two-person crew. Crews would drill 4-inch diameter holes to approximately 45-feet deep along east-west trending lines that cross the USFS and BLM portions of the project area. These lines would be 1,100-feet apart with the shot holes 220-feet apart. Each hole is then packed with small explosive charges and sealed, backfilled, and covered at the surface. Ground disturbance at each hole will not exceed 100 square feet. Drill crews would be transported to the shot-hole lines by existing roads and walk along the lines setting drills, drilling holes, placing explosives in the holes, sealing/backfilling the hole, and hooking the drill rig to the helicopter to move to the next hole. All lines use GPS points to determine hole and line locations eliminating the need for excessive flagging and markers. These GPS points will have been entered by a ground survey crew before drilling in each area. Data Acquisition: After shot-hole drilling is well clear of the eastern edge of the project, receiver phones (geophones) would be laid out along north-south trending lines across the project area. These geophone lines would be spaced 880-feet apart with 220-feet between geophones along the lines. Bags of geophones would be flown to central locations along the receiver lines by one helicopter and placed by crews, on foot, as described above. After a pre-determined number of charges

3 have been detonated, geophone lines along the east side of the array would be picked up and leap-frogged to the west side of the data-acquisition array. If needed, a utility task vehicle (UTV) may be used to drive along the lines to maintain and trouble-shoot individual geophones. Geophones sit on the surface of the ground and create no ground disturbance. These geophones use state-of-the-art wireless technology (see picture) so there would be no long lines of wire connecting the geophones. Initially 22 lines of geophones would be laid out before the first energy-source charges would be detonated. The charges are then detonated one at a time in a very controlled pattern by a crew of two workers consisting of a detonation expert and a safety officer. Most of the explosive noise stays in the hole and travels downward creating vibrations underground. Timeframes A seismic survey of this nature generates a high level of noise for the shot hole drilling due to the number of helicopters in the air and number of people required on the ground. In comparison, the data acquisition is less noisy (one helicopter with about 4-hours of flight time per day, foot travel, and occasional use of UTVs). The FS/BLM is considering various timing options to meet the needs of the seismic survey and minimize impacts to big-game production areas, big-game severe winter range, and recreation hunting experiences. Options include summertime operations that would be mostly completed before hunting season but would overlap data acquisition activities with archery and muzzleloader hunting seasons in a portion of hunt unit 711. Another option is winter shot hole drilling operations followed by data acquisition the following summer. Winter shot hole drilling could include the use of snowcats in addition to heliportable drill rigs. Other suggestions include stretching operations out over two consecutive summers. The public is encouraged to include comments about project timing. Other Details Staging areas for the helicopter support vehicles would be pre-determined and located in previously disturbed areas along main roads. Company trucks and crews would be instructed to use the roads identified for general public use and to also use the administrative roads. In addition, crews may be permitted to drive UTV s cross-country for certain tasks. Cultural resource sites and water sources would be avoided and no ground disturbance would occur at these sites. The project would be conducted in a manner that minimizes helicopter disturbance to waterfowl at Glade Lake. How to Comment The agencies are seeking public comment on the proposals described above. Your comments are most helpful if postmarked or hand delivered to our office by January 6th. Please send your comments to, Mark Lambert Dolores Public Lands Office Hwy 184 Dolores, Colorado or rgarrigues@blm.gov

4 For questions, contact Robert Garrigues ( ) or Deborah Kill ( ) at the Dolores Public Lands Office. If you commented on the previous Bill Barrett Corp. proposal, you are encouraged to comment again. If you do not wish to comment at this time, but would like to receive a copy of the Environmental Assessment for this project please let us know. Input received in response to this solicitation, including names and addresses of those who comment, will be considered part of the public record and will be available for public inspection. Thank you for your interest in public lands. Sincerely, /s/ Deborah Kill for Mark Lambert Acting District Ranger Mancos/Dolores Ranger District /s/ Brad Dodd for Bill Dunkleberger Acting Field Manager Tres Rios Field Office

5 GeoSpace Seismic Recorder (GSR) Yellow unit is the GSR recorder; white unit is a battery pack; red units are geophones with a short probe that is pushed into the ground for good contact. The six geophones would be arranged in a 10-foot-diameter circle around each GSR. Heli-Portable Drill Showing the drill and the drill stem and equipment carrier (a small compressor is behind the drill stem carrier). Drill is operated by a two-person crew.

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