1. Gas or Grouse
Muhammad Zacky - 11P2324
Ridwan Ichsan - 11P2330
Emil Malik Ibrahim - 10P2035

2. Case Overview
Bureau of Land Management as regulator:
The
Imposed restriction to protect wildlife which is Location restriction, Importance
Drilling timing restriction, of natural
gas:
Of 198,034 - Clean
The Pinedale Mesa:
Gas Company: acres, Federal energy supply
40-mile-long, 300 sq mile plateau -Economical
Questar own 158,000
Wyoming-USA growth
Ultra resources acre, Wyoming -Political
Shell own 9800 acre, bargaining
BP Rich in Wildlife species: Sage & 29,800 acre position
Privately owned (reduced
Etc Natural Gas grouse, Mule energy
Wants to add 4300 new (250 Trillion deer, Pronghorn reliance from
wells & restriction Cubit Feet) antelope, etc foreign
deletion country
Conservation of wildlife species & Environment
Vs.
The Need for energy supplies & Economic growth

3. Sustainability Strategy

4. Source: http://www.questar.com/1OurCompany/History.php
Company History
• Questar Corporation's origins date to the 1922 discovery of natural gas
in southwestern Wyoming by a predecessor exploration and production
company.
• The company built a pipeline, completed in 1929, to transport natural
gas from Wyoming to Utah. In 1935 various holdings were consolidated
under the name Mountain Fuel Supply Company. In the 1980s, we
restructured and renamed the company.
• In 2010 Questar spun off its high-growth unregulated exploration and
production subsidiaries, keeping Wexpro — a unique natural gas-
development company — with the corporation.
• Today, Questar is a natural gas-focused energy company with three lines
of business — retail gas distribution; interstate gas transportation and
storage; and gas development and production.

8. Bureau of Land Management (BLM)
The BLM is focusing on the following priorities:
The America’s Great Outdoors initiative, which is aimed at enhancing the conservation of
BLM-managed lands and resources and reconnecting Americans to the outdoors.
The New Energy Frontier, which encourages and facilitates renewable energy development –
solar, wind, and geothermal – on the Nation’s public lands.
Cooperative Landscape Conservation, a scientific initiative that recognizes the need to
better understand the condition of BLM-managed landscapes at a broad level.
Youth in the Great Outdoors, which supports programs and partnerships that engage youth
in natural resource management and encourages young people and their families to
visit, explore, and learn about the public lands.
Climate Change, which is affecting public lands in ways that could impact on Americans’
quality of life. The BLM is responding with two interconnected initiatives: a proposed
landscape approach to land management and Rapid Ecoregional Assessments, which
will improve the agency’s understanding of public land conditions to inform future
management decisions.
Source: http://www.blm.gov/wo/st/en/info/About_BLM.html

10. Wildlife Around Pinedale
Sage Grouse
Mule Deer
Pronghorn
Antelope

11. Bureau of Land Management (BLM)
Restrictions Imposed by BLM at the Pinedale Mesa:
Roads, wells, & other structure had to be
located a quarter mile or more from grouse
breeding ground & at least 2 miles from
nesting area during breeding season.
No Drilling Activity During Winter
Source: http://www.blm.gov/wo/st/en/info/About_BLM.html

12. The Advantage from Drilling at the Pinedale Mesa
Supplying clean energy & Environmental friendly
(compared to oil, coal, etc)
Reducing USA’s energy reliance to foreign country
Provide jobs for the society
Increase government Revenue from tax and royalty
Economic growth for local region

13. The Disadvantage from Drilling at the Pinedale Mesa
Drilling activity taking up wildlife habitat
Drilling operation during winter
interfering with migrating route
Drilling operation causing decline in
wildlife numbers & winter survival rate
Drilling sediments entered the river
around pinedale mesa

14. Valuation of Wildlife and
Balancing Against Economic • Recognize the interrelationships and
Interest of Society or interdependencies of the wildlife,
Company and the ecological systems on which
the company operate
• The wildlife / environment deserve to
be preserved for their own sake.
• Intrinsic value
ECOLOGICAL ETHICS
• Moral duty to protect the interest of
human beings and non-human being
(wildlife, nature, etc)

15. Ecological Ethics
The ethical view that non human parts of the environment deserve to be
preserved for their own sake, regardless of whether this benefit human
beings
Ecological Approach • Non humans have intrinsic value
Environmental Rights • Humans have a right to a livable
Approach environment
• External costs violate utility, rights, and
Market Approach
justice so they should be internalized

16. Shallow Ecological Ethics Deep Ecological Ethics
• Manusia terpisah dari alam. • Manusia adalah bagian dari alam
• Mengutamakan hak-hak manusia atas alam • Menekankan hak hidup mahluk
tetapi tidak menekankan tanggung jawab lain, walaupun dapat dimanfaatkan oleh
manusia. manusia, tidak boleh diperlakukan
• Mengutamakan perasaan manusia sebagai sewenang-wenang
pusat keprihatinannya. • Prihatin akan perasaan semua mahluk dan
• Kebijakan dan manajemen sunber daya alam sedih kalau alam diperlakukan sewenang-
untuk kepentingan manusia. wenang
• Norma utama adalah untung rugi. • Kebijakan manajemen lingkungan bagi
• Mengutamakan rencana jangka pendek. semua mahluk
• Pemecahan krisis ekologis melalui pengaturan • Alam harus dilestarikan dan tidak dikuasai
jumlah penduduk khususnya di negara miskin. • Pentingnya melindungi keanekaragaman
• Menerima secara positif pertumbuhan hayati
ekonomi. • Menghargai dan memelihara tata alam
• Jenis etika antroposentris. • Mengutamakan tujuan jangka panjang
• Etika antroposentris yang menekankan segi sesuai ekosistem
estetika alam (etika lingkungan harus dicari
• Mengkritik sistem ekonomi dan politik dan
pada kepentingan manusia, secara khusus menyodorkan sistem alternatif yaitu sistem
kepentingan estetika). mengambil sambil memelihara.

17. Cost & Benefit Analysis
$ Cost of removing pollution
Cost Of
Removing
Pollution
Benefits from removing pollution
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percent of Pollution Removed

18. Systemic Issues
Political-Social-Legal
Economy Issues Environmental Issues
Issues
• Employment • Reducing US’s reliance • Declining numbers of
opportunity on foreign energy wildlife species such as :
• Tax and royalty revenue supplies Sage Grouse, Mule
to government • Increasing international Deer, Pronghorn
• Enhancing local political bargaining antelope due to gas
economy booming position drilling & production
• bargaining power activity.
• Reducing the need to
import energy supplies Enhancement of the • Damage in Pinedale
from abroad Energy company Mesa Landscape
coalition on the ecologically and
Government aestethically
• On the other side, Gas
is more environment
friendly compared to
coal, oil, etc.

19. Corporate Issues
• Drilling pad taking a big space to support drilling rig and
Operational Issue other equipment
• Access roads, piping networks and tanker truck traffics
impacting wildlife habitat
• Drilling activity suspension in winter month  costly
Financial Issue • Ineficiency due to seasonal interruption activity
• New technology cost is costly
• Application of Directional Drilling.
New Technology • Second pipe system for liquid waste

20. Individual Issues
• Negotiator for Questar & other companies that formed
coalition to do lobbying to the Government.
Jim Sims • Suggested “funding scientific studies” that would be
designed to show that the sage grouse was not
endangered
• Vice president of the petroleum association in
Wyoming
• Wants to keep the species at Pinedale Mesa out of the
Dru Bower “endangered species list”. He says: “Endangered species
listings are not good for the oil and gas industry. So
anything we can do to prevent a species being listed is
good for the industry”

21. Should Questar Continue drilling?
Does the environmental impact imply that questar is
morally obligated to stop drilling?
Consideration about
moral Responsible:
• Person caused/helped
Declining
cause the injury or Number of
prevent when they Damages to
wildlife species
could Nature &
Wildlife habitat
• Person did so knowing
what they are doing
• Do so in own free will Operational
waste: drilling
sediments, etc
Questar Morally Obligated to Stop Drilling

22. What should the company do Differently?
Drilling Environment
Drilling Pollution
Process Management Optimum
Conservation
Fulfilling on wildlife
National and physical
Energy environment
Production Supplies
and
distribution
Environmental
conservation, waste
management
Balanced / win win solution

23. Alternative Decisions from BLM
1. Continue to prohibit winter drilling and allow no additional wells
2. Allow winter drilling and allow 4399 more wells on a maximum 600 drilling pads located
within a large core area in the centra part of the mesa
3. Allow winter drilling and 4399 more wells on a maximum 600 pad plus: confine drilling to
specific parts of the core area and prohibit drilling or disturbances of any areas that were
“crucial winter ranges” for mule deer & pronghorn antelope, or mating and nesting areas of
the sage grouse
4. Allow winter drilling and 4399 wells on 600 pads, confine drilling to parts of the core area,
prohibit drilling or disturbances of winter range of mule deer or pronghorn antelope or
mating and nesting areas of sage grouse plus: prohibit drilling on thousands of acres (the
flank area) surrounding the core area where drilling was allowed, require the companies to
establish a fund (with initial contribution of $ 4.2 Million and annual payment of $7.500 per
well) to monitor wildlife and to pay for the cost of mitigating any impacts on wildlife that
monitoring detected
5. Allow drilling only within the core area and prohibit drilling in the area around the
periphery, but: permit fewer than 4399 wells and less than 600 pads and limit the total
acreage devoted to wells

24. Is Alternative 4 the best choice that BLM made?
Is there any other better alternatives?
• Alternative 4 is the best Drilling Environment
choice if we want to have a
Pollution
minimum impact to wildlifes Management Optimum
but also still take account Fulfilling
Conservation
on wildlife
and physical
about the access to natural National
Energy environment
Supplies
gas for the nations sake.

25. Is the loss of species a problem of pollution? Or is it just a
problem of conservation?
• The loss of species in this case is both a problem of pollution and also a
problem of conservation.
• On one side, the operation of Gas Drilling company is becoming source of
pollution in terms of land pollution (by occupying & damaging wildlife
habitat, operational vehicle / truck traffic), water pollution (caused by
drilling sediments), air pollution from the operation of drilling rig, etc.
• On the other side there is a problem of conservation because the
government (Via BLM) not imposing strict rules about the usage of the land
which is the habitat for Grouse bird, mule deer, pronghorn antelope, and
other wildlife species.

26. Can the loss of species be evaluated as an “external costs”?
Loss of species can be regarded as external cost in this case.
So it must be internalized to company cost
Private
External Social
(internal
Cost Cost
Cost)

27. FINISH
End of Presentation