Delivering Mitigation Solutions for Natural Resource Extraction Projects: Insights from a Leading Practitioner ARIES 2015 Environmental Considerations in Energy Production September 22, 2015
Delivering Mitigation Solutions for Natural Resource Extraction Projects: Insights from a Leading Practitioner
ARIES 2015Environmental Considerations in Energy Production
September 22, 2015
Demand Drivers
Pennsylvania Marcellus Wetlands
Marcellus Wetlands: 449,000 acres
Pennsylvania Marcellus Streams
Ohio and West Virginia Utica Wetlands and Streams
Project-Related Impacts: Pads, Plants, Pipes
Bats and White Nose Syndrome
A Regulatory-Enabled Business
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NEPA: National Environmental Policy Act
One Project, Many Federal Permits
Natural Gas Act Section 7 Resource Reports
Wetlands and Water Use Water Quality Vegetation Wildlife Fish Culture Land Use and
RecreationAir and Noise
Quality
Clean Water Act and
National Pollution Discharge Elimination System Program
Migratory Bird Treaty Act
Magnuson-Stevens Fishery
Conservation and Management Act
National Historic Preservation Act
National Parks and Recreation
ActClean Air Act
Coastal Zone Management Act Endangered Species ActArcheological and
Historic Preservation Act
Executive Order 11988 (Construction in Floodplains) National Wilderness Act National
Wilderness Act
Executive Order 11990 (Construction in Wetlands)
Wild and Scenic Rivers Act Wild and Scenic Rivers Act
2010: 2.5 years permitting, $3.8MM for 4.667 acres of Habitat; $1.7MM Threatened Species
2013: Vacated judgment, post-project Enforcement
Permitting a FERC Regulated Project
A Regulatory-Enabled Business
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Ecological Restoration is an Industry
About RES
• RES is the premier provider of ecological offset solutions in the US
• Founded 2007 in Baton Rouge• Operations in 9 states across the
Appalachian, Mid-Atlantic, Southeast and Gulf Coast regions
• 110 mitigation sites permitted/in process
• Conservation easements protecting over 425 sites
• 32,000 restored wetland acres• 4,000 acres of custom mitigation
solutions• 155 miles of stream restoration• Reduced over 240 tons of nutrients• Rehabilitated and preserved over
3,700 acres of endangered species habitats
• 100 Energy industry clients
Mission
RES develops and supplies ecological offsets to help companies obtain required permits for unavoidable project-related impacts to wetlands, streams and habitats.
We help clients proactively manage risk from operations in environmentally sensitive areas by providing proactive project impact analyses, streamlining permitting processes, and limiting liability and regulatory exposure.
MissionOverview
Nurseries Enhance Mitigation Offerings• Significant cost savings over
purchasing vegetation from third parties
• Location in Somerset Township, Pennsylvania and Terrebonne Parish, Louisiana
• Allows RES to plant more mature trees and to achieve success criteria more consistently and quickly
• Over 2 million restoration stems grown, supplied and planted
• DNA-fingerprinted species grown and propagated to fulfill regulatory agency needs
• Leading supplier for successful coastal restoration projects including dune, marsh, estuarine, emergent marsh, and barrier island restoration
Upstream Midstream Downstream / Petchem Mining Utilities /
IndustrialGovernment /Infrastructure
Customers
Impact Requiring Mitigatio
n
Pads Roads Water pits Central
production facilities
Stream crossings
Wetlands impacts along corridor
Export facility Supply
pipelines Related surface
facilities Refining /
Petchem
Strip mining Longwall
mining
Manufacturing plants
Power lines Surface
impacts
Roads Rail lines Bridge
crossings In Lieu Fee
programs
Typical Mitigatio
n Solution
Bank credits Mitigation bank credits
Permittee-responsible mitigation
Mitigation bank credits
Permittee-responsible mitigation
Mitigation bank credits
Permittee-responsible mitigation
Bank credits Permittee-
responsible mitigation
Bank credits Permittee-
responsible mitigation
Permittees
Value-Added Delivery
Land Acquisition Ecological Offset SupplyImpact AnalysisExecution
Phases
Key Initiatives
Quantify Scope and Magnitude of Risk
from Project Impacts
Land sourcing by dedicated, In-house
resources
Improve timing, availability, and delivery of offset
BenefitsAnd
Outcomes
Early understanding of risk, liability and
costDerisked land-based
solutionsFixed future costs
and enabled liability transfer
Analysis process using client
operational planSolution
Approach
Proprietary GIS process prequalifies offset acreage and
enables land selection
Deliver a flexible, cost-effective credit
solution
Predictive Impact Analysis
Add Surface Impacts
Conduct multi-
layered GIS analysis
Base Map Area of Interest
Leases and Fields
Allocate Impacts to Watersheds
Calculate Required Mitigation
Credits
Add Project-based
Timetables
• Provides estimated scope and magnitude of impacts
• Provides early budgetary guidance
• Initiates the process of transferring liability from permittee to RES
• Helps RES to identify suitable restoration sites and habitats
Client map with multi-year drilling location plan
Proprietary land search system with multiple layers and extensive parcel data allowsRES to be efficient in regards to land sourcing
Proprietary Land Systems
1 Define HUCs of interest 2
Obtain and edit Parcel Data
by county for all watersheds
3
Generate “Prospect Layer” with available
GIS Data
4Intersect Prospect Layer and Parcels to generate maps of
individual prospects5
Use maps with landowner data to contact landowners
and secure RES land position
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Before
After
Prior to restoration this site consisted of cattle pasture with a degraded
stream running through it
The site has been restored to contain a fully functional and stable stream with
an adjacent bottomland hardwood riparian corridor
Upper Susquehanna River Mitigation Bank Phase I – Potter County, PA16.6 Acre Site Area / 1,942 linear feet – Stream Restoration / 1 acre – Wetland Restoration
Grave Creek – West Virginia2,069 linear feet – Stream Restoration / 9 acres – Adjacent Riparian Corridor
Post Construction One Year After
Stream constructed with erosion control mats in place. This site was a degraded cattle pasture in the central
valley of the watershed prior to restoration
The stream is now functional and stable and herbaceous vegetation has
begun to establish itself
Robinson Fork Mitigation Bank Phase 1, Washington County, PA533.29 acres Total Site on 40+ parcels / 150,168.27 linear feet – Stream Restoration / 53.65 acre – Wetland Restoration
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Upper Susquehanna River Mitigation Bank Phase 2 – Potter County, PA121.9 Acres Site Area / 7,508 linear feet – Stream Mitigation / 6 acres – Forested Wetland Restoration
Bank instability and undercutting along the stream bank due to channel
migration and a lack of riparian buffer.
Upper Susquehanna River Mitigation Bank Phase 2
Proposed Resource Development Map
Excessive instability causing erosional sloughing of the stream banks within
the central portion of the site.
Little Shenango River Restoration Site – Mercer County, PATotal site: 48.90 acres - 33.35 acres wetland mitigation
Little Shenango River Restoration Area
Resource Development Maps
Post construction photo of a re-establishment
wetland “cell” beginning to revegetate
South (Seeley) Creek Restoration Site – Bradford County, PA90 Total Site / 4,468 linear feet – Stream Enhancement / 15 acres – Forested Wetland Restoration
South Creek Restoration Site Resource Development Map
Pin oak tree planted at the South Creek Restoration Site
website wetlands photo here
Resource Environmental Solutions, LLChttp://www.res.us
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Russ Krauss, EVP Marketing & Research, [email protected]