Free Supplemental Brief - District Court of Federal Claims - federal

Case 1:98-cv-00314-EJD

Document 93-4

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EXHIBIT R

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AFZX.PW (420-IOa)

3 Apri 1997

MEMORAUM FOR RECORD
SUBJECT: Chesapeae Energy Corporation Meetig - 1 April 1997

1. A meeng was held in the ERM Conference.Room on 1 Apri.1997 at 1300 hours
with the rolJowing persns in attendance: .

a. Mr. Ted L. Hamerschmdt, Deputy Director prPublic Work.
b. Mr. Tom Price, Vice President - Corporate Development, Chesapee Energy

Corporation .
e. Ms. Jan Horton, Landman Chesapeake Energy Corporation
f. Mr. Martin Walke, Consultant, Chesapeake Energy Corporation.
g. Mr. George Denny, Landman, Chesapeake Energy Corporation
h. Mr. John Duhon, Petroleum Engineer, U. S. Deparment or

Corporation

c. Mr. Steve Dixon, Senior Vice President- Operations, Chesapeae Energy

d. Mr. Dale Clark, Senior Drillng Engineer, Chesapeae Energy Corporation

Land Management Jackson Districi Offce

the Interior Bureau of

i.. Mr. Jim Burton, District Ranger, U. S. Forest Servce
j. Ms. Betty Higgins, Mineral & Oil Representative; U. S. Forest Servce
~'"

k. Mr. Hunter HowelJ, U. S. Forest Servce
1. CW2 Shafter, Jr., Aviation Safety, HHC USAG
m. Mr. Wiley Clark, G3 Training

n. Mr. Barr Oswald, G3 Range Control

o. CPT Paul Brandau, SJA

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AFZX-PW (420-iOa). .... 3 Apri 1997
SUBJECT: Chesapeae Energy CorporaiionMeetig. i Apri 1997
p. Mr. .John Costa, Safet
q. Mr. ElJs Smith, Chief, EPSD, DPW
r. CPT Jeffey Farworth, JRTC Operations Group

s. Mr. Don Jea ENR, DPW
t. Ms. CIndy Carer, EPSD, DPW
2. Mr. Haerschmdt introduced himself as the DeputyDirecorofPublic Works.

and stated that Dr. Tomas was on leave and gave regrets.on missing tlús ver important meeting. Mr. Hamerschmdt stated representatives are present at this meeiingftom U.
S. Forest Servce, the Directorate of Public Works, Range Control, G3 Traig, Safety,

Aviation, and others. He stated what we would like to do isto See ifwe Could secure interest for Chesapeake Energy Corporation today and perhaps ask quesions to get a better understanding ofyC!ur needs and now we ca fulfill the obligations to Chesapeae.. Mr. Price stated he did see a few famliar .faces and their purpose today was to get a that little bit more details about what had been discussed at the last meeting. He stated his
company has gone at great lengths to recognize.that this wil. be an effort which ~ be
beneficial for the securitythe country, the perpetuation of bas and not be of the indiferent to the interests the U. S. Forest Servce. He stated that LÚS company of

is just another one of the companies whose agenda is to take advantage of the evolution of technology we have seen in central Louisiana and try to insure the ecnomic viabilty of Fort Polk and Vernon Parish and work in harmony with what we are going to accomplish. He discussed briefly that past communication has taken place with Mr. Herbert Carcr at
the last meeting and touched upon each of the items on the agenda. of

He stated since none

these items posed any confict in terms of oi. and gas exploration and extensive use of

the Intensuve Use area and the ability to carr on training at the sae tie as oil and gas

exploration was ongoing, their plan is again to insure minimal confict on all paries. He stated the purpose of the meeting as he understands it today is to try to let the Ary know and understand their needs and how they ca best coordinate that on a large-scae basis. Mr. Haerschmdt stated time permtting, tlús is a fair overvew and. that is why such a large group of persons has gathered today so you can understand our needs and whatever confict may appear we can work through and. call them considerations instead of conficts.
3. Discussion:

a. Mr. Dixon stated Chesapeake desires to try to develop oil and gas in

and around the

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AFZX-PW (420.IOa) . 3 Apri 1997
SUBJECT: Chesapeae Energy Corporation Meeting - 1 Àpril 1997.. .
Fort Polk reservaûon. He

stated the drig is in a faily deep zone at 14,000.16,000

tot~ vertical !lepth so that it wi require continuous drig rirmly:with presre at the
surfce while driling. He ¡tatoo they do nee coniinuous operation and they would have

to vent natura ga to the surface. .
location b. Mr. Price stted the drig site reqUirements include four tofive ac.es of ard lights on the rig demckfor 24 hour operations. Driling rigswith ihe .

surfce

capacity to. dri deep ate large, horiZontal weUsind approxiately 170 feè high. He is
not sure what problerrs this may pose

to thehelicöpter pilots. . ..

c. Mr. Hamerschmdt asked for a feel of the numbefotweiis withi Chesapeàe's exploration needs in the Intensive Use area. Mr. Pixonstted there. are 1,920 acre units wlúch is rather conceptual in nature. Mr. Price stated have tried to insure the fact they that it was understood that the industry has no. confct with Fort Polk's expaniona

aspirations. He stated they would like to be able to represent to any pir aboút the compatibilty and that yes, we have discussed how tlús area wiU be developed ard yes, we are comfortable we wiU be able to develop a plan for its developinent. The Chesapeae personnel indicated on the map they displayed that they wiIJ driU in the Northeat comer

of Section n and asked where it would be most haronious for them to make a drillng program. Mr. Hammerschmdt stated we are working to acquire use of.a 45,000 acre tract ofJand on the South portion or about 20 weU sites. He stated Fort has the Polk
obligation to work around the challenges wlúch wiU be provided to the customer and he does not foresee a problem.

d. The physical requirements of production facilities and pipeline locations necessar

for development or oil and gas in the area and the locatioi: was discussed. Mr. Price stated there is a large difference between a production facility and a driling site. He stated
they will drill for about 120 days wlúle the production facility is out in force. Mr. Dixon stated he doesn't know what the security of wellhead would be but would anticipate the

not having activities during the production stage. Afer the initial production state, there
would be some automation and drivers would oruy be driving by daily to check on facility.

Mr. Dixon stated the production facility would be completely off site and would be 4 - 6
feetlúgh.

e. Mr. Hammerschmdt stated on the Intensive Use Land we had concerns on the
location of the wells wlúch were dowiange. He also stated adverse impacts fTom live fire have not been evaluated.
potential f. Mr. Haerschmdt stated the helicopter pilots.need.lo become aware of production and off~ial notification will need to take place withi.n the Aviation community. CW2 Shaffer stated .the aviators are given a hazdous. map indicating .any particular items to be.

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AFZX-PW (420-IOa) . .3 Apri 1997
SUBJECT: Chespeake Ener CorPoration Meeing - 1

Apri 1997 .

watchfl o~ i.e., oil wells, lighted derrcks, etc. The major coricemfiom the aviation. side of the hoiise is that the ir might be too weIJ iiI. He explained that durig flght while using the night vision gogges, the large lights and. flares shut down the gogges and it
might be shut down to the point oflosing sight of other aircra. .¡Ie offered the suggestion of devsing a sort of shield to reduce the glare.. CW2 Sbaer stted the
aviators are becming seitiz to the night vision gogges durig çombiit flyi and

are flying on tree-top leveL. . Mr. Price asked ifth~ helicOpter come.ftom a speific.
location, and CW2 Shafer stted they come ,from al direCions.

they

"box" is Ea to West and explained the dimensions ofthe: '~bo;t~'. Mr. Haérschmdt stated this isa dedgradation of traing that theAny Will have t.oaccpt and dei with.

g. CPT Farswort introduced himsel( and explained that he wrtes the scenaros and
execut.es the trailÙng during rotations. . He ststed other .options have iieen looked at ftom

. ..

He exlaied that the

the flare and the need to flare gas during drillng, the weIJs. He wanted to know ifthe flare goes away during production. AJso he stated it is ¡he sudden unantiCipated flash oflight
other companes concernng use of completion, production and mantenance of

which can cause an accdent. He stressed thatifthere was anyway io conirol the flare or
minimi the effecs ofthe fle that wou.ld be immensely helpfuL. Mr. Dixon stted they could build a pit to make the flare as low as possible. Farsworth explaied that if CPT the paries corre to àgreementon the. number of facilties, these can be explained to units and then become a par of the scenario, and the presence of the Chesapeae

the

persnnel would be expected. Mr. Price stated there is a difference between a produ.ction operation and drillng operation and explained the difference in flarng in both situations. CPT Farsworth stated that 9 months and 90 dàys out they talk to the units about aIJ of
the issues and give them the specific restrictions.

h. Mr. Duhon stated there is some flaring during production. Mr. Duhon explained the
product comes to the surfaceand

then separate the phases .out fÌom each other. The gas

would go to a low pressure separator and sometimes cannot be sold.

i. Mr. Hamers.chmdt stated the Ary understands Chesapeake will have a drillng rig
there 3 . S months aid the Aviation community accepts the risks to night flying in terms of

flarng which is unpredictable. However, ftom the Ary's perspective, any opportunity they have to minimi the flash or flare would be extremely helpful.to the aviators.
Mr. Dixon emphasized they will

try to do whatever they can to minimie the huge fire balL.

lot of different companies and each has different and unique technologies in this business. He
stated whatever may be the ca with one company may be. Completely different with another and the Chesapeake personnel must work very closely with the USPS on all aspects.

j. Mr. Burton stated the U. S. Forest Servce (USFS) personnel are dealing with a

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AFZX~PW (420-IÖa)3 April

SUBJECT: Chesapeae Energy Corporaiion - 1 April. i 997

1997

k. Mr. Price stated they have discusse havig off-site production facUities where the

gatherig liiies wil be about 3 feet deep. Ms. Higgns stied in the Intensive Use area ii may be neeed to have 6. feetfiom the top C!fthe pipe. Ms. Higgns aSked where ¡he
production site would be located and was cautioned

informe¡ offUSFS land about S mies. Mr. 1im

Burton stted this site may be offUSFS land.but.not off

the USFS I¡oundarind thaI straight lines don't happen much in woodpecker country. He Stted the
Strict

USFS propert. . .
Chesapeae personnèi woiild be requitedto follow the sie development of oU iid gas in the area.was disCusse. would like to have ihe pipeline for. oil and gas and have the water disposedon discussed that the pipeline locations and depths. wouid be dictated.

guidelines concering

1. The physica requireeents òfprodtiction faci.lities iidpipeline 100tiollnecessarfor
production facilty would be 10+ acres depending on the proceses. They would probably
take ráw gas to it and it woi.ldbasicaly be a tank farwiih multiple separation drillng. Mr. Hamerschndt asked about trafc in and put ofthiit facility. . Mr. Dixon stated he
site. It .was

Mr. Dixon stated "the ceiitral

by the USFS.

. in. Mr.Dixon asked ai;out wellheads themselves. CPT Farnsworth staied that when ihe units are informed about the paricular restrictions during ¡raining; this would an item
added to that overlay. He stated Rage Control would determne where to dig, however,
if a road is associated with that, .ii makes it easier to explain io the units.. Righi

units dee with archeologicasiies anyway soh would not be a problem. Mr:

now the

Hammerschmdt stated that an answer is due to ihe Chesapeake personnel on the depth of
the existing right of ways.
pipeline on drillng perspective. Ms. Higgins stated if at all possible they try to work

with

stated that safety is important to all of us. .Mr.

n. Safety of personnel, property and equipment was discussed. Mr, Hammerschmdt Price slated they do not want to adversely
flares.

afect the operations where somebody is surprised by a flare, and the best way-we can do
that is to have the production off site and minimize the amounl of

0, A discussion was held concernng coordination of

stated the role of trainers assuming suñace safety control and they. will need to know al all times where Chesapeake personnel are working to avoid any- C!pportunilies for confict.
He explained the use of radio

personneL. Mr. Hammerschmdt

and cellular phone comiunications with the rangc control
lús people wiIJ need to know at all times the

location of personnel and where drilling is occurrng. He also explained the precauiionary measures needed to be taken farther north where. huniing occurs. He explained the
importance of Chesapeake providing Range Control with a hour a day communication. Due to the necessity of

personneL. Mr. Oswald further explainedthat

point of contact to maintain 24 working and Iraining simultaneously,

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AFZX-PW (420-IOa) .. 3 April 1997
SUBJECT: ChesapCCe Energy Corporation.. i Apri i 997
cordiion caot be overesse.Mr: Price stated Communication wi not be a

problem and they wi be proacve in tlis area. .

p. Mr. Dixon discss the fact th~t Chespeae must have the abilty to acmmodate.
contmuous 24-hour, sen day a week operiiûonsfor oil and gli drig operaons:

also stre the nee for unrestricted accss to weIJs, producton faciûes and pipelie by
numerous driing persoMel, as well as subcntractors, vendors, and loc SÛte and . feder inspecors on a full-time basis 24 hours ~ day, seen days a weèk durig al plus of opeûon. Mr. Price stted it would be beneficial to tae some of and out of the facilty traers for approxitely 120 days. 30 peple come in

He

of their facilties to se the cntie S(pe of the facilitY. He Stted normaly approxiaiely.

the

attendees to orie

and theywil beliVigandw.orking on site in

q. Mr. John Costa, Safety Offcer, asked if the

possibility exists where Chesapeae

personnel would be bringing radioactive materials onto the militar installation: He.stated
jfthese tyes materials are to be brought onto. Ft. Polk a permt must be granted. CPT
Brandau stated that all environmental rules and regulations mustbe complied with, . Mr. Price stated as long is they are aware the rilles, regulations, and points ofcoritact of of persons deaJing with paricular subjects, they will have noproblem whatsOever. .

r. Mr. Jim Burton stated one USFS concern is hydrogen sulfide. Mr. Dixon stated they have not experienced any of thai substance.
s. CPT Farsworth stted trafc in and out will be a cOncern but sometlúng they can work around. The

question is how many sites at one time ca they manage. Mi. Price

stated where the locations .are may have an impact on how. many sites there are. . CPT
Farorth stated the importance of synchronizing efforts and working together.

\. Mr. Hammerschmdt asked when Chesapeake would anticipate on the ground construction? Mr. Dixon stated probably one yea ftom now and they would expect to be
drilling for at least two yeas.
u. Mr. Hamerschmdt stated many roads. on USFS are constructed for rather light trafc and asked if Chesapeake would be having a lot of heavy traffc? . Mr. Dixon stated at iimes it would be really heavy and other times no\. Mr. Burton stated his concern for maintenance of the roads and that this would not be a USFS responsibility. Mr. Hamerschmdt stated an example of Look out Road wlúch the Ary has responsibility for mantaining and we wiIJ need to enter into a maintenance agreement with the USFS,

Chesapeae and the Ary concernng maintenance of roads.

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AFZX-PW (420.IOa) 3- 1APri 1997. SUBJECT: Chespeae Energy Corporation meeiing April 1997
v. Mr. Price stted that the;e are certain ecnomic'issuesinvoivig the Any, public interess and oil and gas operators which they must be attentive to when mag decisions; He Slted their goal is to provide the appropriale mechasm to protec the fundamental
right to develop oil and gas leaes yet aCCmmodale the nees of Forest Serce. Mr. Price asked how they ate to pul something

ths memoradum of undersding which gives eveone a reanable degree of

Fort Polk and the U. S. together tht provides for.

confdence relative to what we discussed today and formal the procesS IIder which we

wil provide servce? Mr. Hamerschmdi slated fQrm minutes wi be completed afer
ths meeting and .distbuted to all 'paries. Mr.

Price stted thai. wi then give them a be implenientedat thisiime approxiately 9 months to one yea ftom now. Mr, Walke st~ted when .Chesp.eae provides the
ch3ce to develop a plan which hopefully could Envionmenta Assesment o.n the operation ihis isusily a 6-month process thaI proces, they woùld know the location of

and afer

the weIJs. .

w. Mr. Hamerschmdt stated as soon as Chesapeae feels comfonablewith layig out
the plan we need to get the Rage Control, Operations, and Training peCple togeth~r to st sooner than later and this wiIJ enhance everyone's operation inensely. Mr.

Haershmdt reminded the Chesapeae persoMel tht this is USFS Limted Use land
and most communication Wiii go throUgh them to us. Ms. Higgins stated if documents are

made avaable to her she will then forward copies to DPW, Operations, Rage Control,

and all other appropriate persoMet .
x. Mr. Don Jean introduced himselffTom the Environmental Division, Direcorate of . Public Works, and stted he would like to seesomethipg on theIocation of

the water ard ground water protècion. Mr. Dixon stated normally surface fluids are held ard disposed of Qn site. During drillng of well, they will reinject underneath that. Mr. Jean also the

asked about production on the rathole and Mr: Clark staled We are only looking about 10;

i 5 feet in the ground. Mr. Dixon stated the drinlngwateris trucked in.

4. Mr. Hamerschmdt stated in bringing the meeting to closure that Mr. Bar Oswald is
the scheduler of training land and the point man for the Chesapeae persoMel. Mr. Price

stated they will come up with a plan on what was discussed today and make sure everyone
is in agreement. Then if anyone has any cOnfict they will need to noti/y the Chesapeae

persoMel. Mr. Hamerschmdi thaned everyone for their attendance and cooperation
and felt this was a ,;ery prodiictive meeting and reiterated the goal for everyone is the
saety of personnel, property and equipment and

~ TED~ jjl /J
Deputy Director ofPublic

to insure no conficts arise.

~
....... .

Works

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ACTONSfrASKERS .

. Actions rorDPTS
i. Depth or pipeline on driiing perspective

.. Actions ror DPW:
i. Maintenance Agreement. Itoads

".Actions ror Chesapeake:
1. Memorandum of

Understanding

....Action for EPSD:
1. Coordination or operation with aU parties

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