Transcript Planning for Stakeholder Involvement in a Coal Bed Methane

Planning for Stakeholder
Involvement in a Coal Bed
Methane Project
Scot Anderson
Davis Graham & Stubbs LLP
Denver, Colorado
The lesson from the
field – most
stakeholders have
learned how
to assure their role
in project
approval process
The Business Case for Planning
for Stakeholder Involvement
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Efficient Project Approval
Avoid Delay
Avoid Litigation Costs
Good Will
Access to Financing
Meet Legal Requirements
Comply with Company
Business Policies
Identifying Stakeholders
in CBM Projects
1. Governmental
• Federal – BLM, EPA, MMS, FWS, Forest
Service
• State – Oil and Gas regulations, land
agencies
• Local – County and City
• Tribal
Each has its own motivations, interests, and
expectations.
Identifying Stakeholders
in CBM Projects
Landowners
Mineral lessors
Surface owners
Nearby landowners
Neighbors
Identifying Stakeholders
in CBM Projects
Competing Interests
• Owners of other
minerals
• Owners of other oil
and gas rights
• Water rights owners
Identifying Stakeholders
in CBM Projects
Other Interests
• Environmental Groups
• Business Interests
• Competitors
• Shareholders
Evaluating Stakeholder
Interests
Stakeholder Types
• Supportive
• Marginal
• Opposing
• Mixed Blessing
Evaluating Stakeholder
Interests
• What is the stakeholder’s stake in a project?
Is it legitimate?
• Project proponent’s perception may not be
the same as public perception
• What is the power of a stakeholder?
• What is the proponent’s social responsibility
to the stakeholder?
• Direct interest, indirect interest, or general
interest?
Assessing Stakeholder Role
1. Stakeholders with a veto
2. Stakeholders with a right to be
compensated
3. Stakeholders with a right to
participation
4. Stakeholders with a right to
consultation
Source: Breaking New Ground, Report of the Mining, Minerals
and Sustainable Development Project at 58 (2002)
5. Stakeholders who should be
informed
Use a table to assess stakeholder role
Stakeholder
Stakeholder
Interest in Project
Stakeholder Impact
Strategy for
Obtaining Support
or Reducing
Opposition
EnLibra
Enlibra Principles
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National Standards, Neighborhood Solutions - Assign Responsibilities at the Right Level
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Collaboration, Not Polarization - Use Collaborative Processes to Break Down Barriers and Find
Solutions
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Reward Results, Not Programs - Move to a Performance- Based System
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Science For Facts, Process for Priorities - Separate Subjective Choices from Objective Data Gathering
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Markets Before Mandates - Pursue Economic Incentives Whenever Appropriate
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Change A Heart, Change A Nation - Environmental Understanding is Crucial
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Recognition of Benefits and Costs - Make Sure All Decisions Affecting Infrastructure, Development and
Environment are Fully Informed
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Solutions Transcend Political Boundaries - Use Appropriate Geographic Boundaries for Environmental
Problems
Some Principles of Stakeholder Involvement
• Plan ahead – don’t let opponents gain leverage because you
have run out of alternatives
• Get information out in a manageable, transparent format
• Be prepared to tell your story
• Be prepared to solve legitimate problems
• Think against yourself – what will opponents say about your
proposal
• All politics is local
Be Ready for these Questions:
• Produced Water
– Disposal
– High SAR
– Effect on groundwater and
water rights
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Road Building
Noise
Air Pollution
Waste Water Pits
Trucks and Traffic
Hydraulic Fracturing
Some positives to accentuate:
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Taxes, royalties
Low cost production
The need for energy
CBM’s ability to satisfy
that need in the near
term
• Directional drilling
• Environmental
protection