United States Department of the Interior

BUREAU OF LAND MANAGEMENT

New Mexico State Office TAKE PRIDE
NAM E R I CA
P.O. Box 27115
IN REPLY REFER TO: Santa Fe, New Mexico 87502-0115
www.blm.gov/nm
FOIA NM 20I0-038
FOIA BLM 2010-961
I278 (9170)

August 26, 20I0

Ms. Mandy Smithberger

National Security Investigator
Project on Government Oversight
1100 G St., NW, Ste. 900
Washington, DC 20005

Dear Ms. Smithberger:

Your Freedom of Information Act (FOIA)/Privacy Act request dated July 21, 2010, was received
via email on the same date. You requested various records pertaining to former employee Steve
Henke and the New Mexico Oil and Gas Association.

On July 27, 20I0, you clarifred your request for Item 5 and stated that the time frame you are
seeking is from January 1, 2009, till Steve Henke's last day (May 2I, 2010) with the Bureau of
Land Management (BLM). Your request became perfected on July 27, 2010.

The following is provided in response to your itemized request:

1. A copy of BLM's conflict of interest policy government employment and post-

employment practices of political appointees, including but not limited to 18 U.S.C. §
et seq., 5 C.F.R. Part 2600 et seq., 5 C.F.R. part 6701 et seq., as would have pertained to
former government employee Steve Henke.

The BLM does not have a specific policy on post-Government employment; however, the
following regulations and Department of the Interior (DOI) policy apply to all BLM employees.
Enclosed is a copy of a summary of post-employment restrictions which includes citations to
18 U.S.C. Section 207 (9 pages), along with a copy of 18 U.S.C. 208 (2 pages). Also enclosed is
a portion of the Standards of Ethical Conduct for Employees of the Executive Branch, Subpart B,
which discusses Conflicting Financial Interests and Subpart F — Seeking Other Employment (18
pages). In addition, enclosed is a portion of the Ethics Guide for DOI Employees which
discusses post employment (7 pages).
 2

2. Any exit plans or other documents that detail restriction or prohibitions on Mr. Henke's
move to the private sector.

Enclosed are three email messages with enclosures between Steve Henke and Patrycia Sanchez,
New Mexico State Office Assistant Ethics Counselor (I3 pages).

3. A copy of any opinion and/or waiver provided by the Solicitor's office or ethics officials
setting out the agency's approval, partial approval, or disapproval of Mr. Henke's post-
government job search.

See response to Item 2. In addition, we do not have any records in response to opinions and/or
waivers provided by the Solicitor's Office.

4. A copy of Mr. Henke's phone log registering calls to and from New Mexico Oil and Gas
Association from January 2009 to his last day at BLM, including calls received by Mr.
Henke and any members of his staff.

We do not maintain telephone logs; therefore, no records exist in response to this portion of your
request.

5. All other communications, including but not limited to e-mails, memoranda, notes,
meeting notes and transcripts, or other similar correspondence, between Mr. Henke and
any member of his staff and the New Mexico Oil and Gas Association. As stated above, on
July 27, 2010, you clarified your request for Item 5 and stated that the time frame you are
seeking is for January 1, 2009, till Steve Henke's last day (May 21, 2010).

Enclosed is a copy of various emails with enclosures between BLM Farmington District staff,
including Steve Henke, and the New Mexico Oil and Gas Association (8 pages). Eight of the
enclosed pages are partially withheld under Exemption 6 of the FOIA (5 U.S.C. 552(b)(6)).
These pages contain Steve Henke's home address; home telephone number; place and date of
birth; marital status; family information; volunteer information not related to qualifications for
position; award information not related to qualifications for position; names, contact information,
and affiliations of references for position; names of unsuccessful applicants interviewed for the
position; and personal cellular telephone number for Carolyn McCormick.

Exemption 6 allows an agency to withhold personal information whose release "would constitute
a clearly unwarranted invasion of personal privacy." The Bureau of Land Management (BLM)
has determined that after reviewing the balancing process, the release of certain personal
information in the documents you requested would not shed light on the Government's activities
and are of no public interest. Therefore, the privacy interest of the individuals concerned
outweighs any public interest in that information.
 3

6. Any correspondence and other communications sent to and from the New Mexico Oil
and Gas Association from January 2007 and July 2010.

We do not have any official correspondence sent to and from the New Mexico Oil and Gas
Association for January 2007. See response to Item 5 for any communications between
Steve Henke and any member of his staff and the New Mexico Oil and Gas Association from
January I, 2009, till Steve Henke's last day (May 2I, 20I0). Also enclosed are four email
strings for the month of July 20I0 (5 pages).

7. Any documents regarding warnings or administrative or disciplinary actions against

Mr. Henke.

No records exist in response to this portion of your request.

For those records which do not exist, under 43 CFR 2.7(d)(1)(2009), the BLM is not required to
create or compile a record to respond to a FOIA request. The Act applies only to records in
existence at the time the request is made.

The persons responsible for this partial denial under Exemption 6 of the FOIA and this partial no
records found response are Eileen Griego-Vigil, State FOIA Officer, and Linda S.C. Rundell,
State Director, New Mexico State Office, BLM, Santa Fe, New Mexico, in consultation with
Michael Williams, DOI, Office of the Solicitor, Santa Fe Field Office, Santa Fe, New Mexico.

Under 43 CFR 2.28(a)(2)(2009), you may appeal this partial denial under Exemption 6 of the
FOIA and this partial no records found response to the DOI FOIA Appeals Officer. The FOIA
Appeals Officer must receive your FOIA appeal no later than 30 workdays from the date of this
final letter responding to your FOIA request. Appeals arriving or delivered after 5 p.m. EDT,
Monday through Friday, will be deemed received on the next workday. Your appeal must be in
writing and addressed to:

Freedom of Information Act Appeals Officer

U.S. Department of the Interior
Offrce of the Solicitor
I849 C Street, NW, MS 6556
Washington, DC 20240

You must include with your appeal copies of all correspondence between you and our office
concerning your FOIA request, including a copy of your original FOIA request and this denial
letter. Failure to include this documentation with your appeal will result in the Department's
rejection of your appeal. The appeal should be marked, both on the envelope and the face of the
letter, with the legend "FREEDOM OF INFORMATION APPEAL." Your letter should include
in as much detail as possible any reason(s) why you believe the Bureau's response is in error. To
ensure timely receipt of your appeal, it is recommended that you fax a copy of your notice of
appeal to the FOIA Appeals Officer at (202) 208-6677.
 4

Although you are entitled to pursue the appeal rights process, we encourage you to contact this
office beforehand to try to resolve this matter.

Cost recovery fees are not charged since costs for these records (142 pages) do not exceed the
collectible threshold of $30.00 (43 CFR 2.16(b)(2)(2009)).

Questions pertaining to the enclosed records may be referred to Patrycia at (505) 954-2084, or
Bill Papich, Community Relations Specialist, Farmington District Offrce, at (505) 599-6324.
Questions pertaining to FOIA matters may be directed to Eileen at (505) 954-2129.

Sincerely,

Linda S.C. Rundell

State Director

Enclosures
 Patrycia R To Steve Henke/FFO/NM/BLM/DOI@BLM
Sanchez/NMSO/N M/BLM/DOl
cc Audrey Hall-Carson/NMSO/NM/BLM/DOI@BLM
05/19/2010 12:07 PM
bcc Patrycia R Sanchez/NMSO/NM/BLM/DOI
Subject Advice Regarding Post-Employment

Hlstory: This message has been forwarded.

Dear Steve

The purpose of this memo is to memorialize the advice I gave you on April 20, 2010 regarding your plans
for employment with a non-federal entity after retirement, and to advise you of the protections you have
regarding that advice.

You called me in my role as Assistant Ethics Counselor for the BLM -NMSO, and informed me that you are
planning to work for the New Mexico Oil and Gas Association (NMOGA) after your retirement. You told me
that the NMOGA is a non-profit organization that does not have contractual or regulatory ties to the BLM .
You referred me to their website (www.nmoga.org ), and I ascertained that the purpose of NMOGA is for
education and advocacy regarding New Mexico State oil and gas issues (versus federal O&G concerns),
and NMOGA is not a "prohibited source" under 5 CFR 2635.203(d) and the federal standards of conduct. I
confirmed my determination with the BLM Ethics Attorney in Washington. Based upon that information, I
advised you that I didn't see an issue with post-employment conflict of interest, or issues regarding the
negotiation of employment with the NMOGA while still employed with the BLM . Later the same day, I
emailed to you a copy of the brochure, "Restrictions on Post-Government Employment (Employment After
An Employee Leaves Federal Service), 18 U.S.C. § 207; 5 C.F.R. part 2637; 5 C.F.R. part 2641; OGE
Summary of 18 U.S.C. § 207."

As an Assistant Ethics Counselor for the NMSO, I have been granted responsibility to advise our
employees about the Bureau of Land Management, Department of Interior, and general statutes and
regulations governing ethical behavior of federal employees , to the best of my ability. If I am unable to
provide such guidance, I refer the employee to the BLM Ethics Office. Because you called and asked my
advice on your post-employment plans. you have certain protections under the law.

"5 CFR 2635.107 - Ethics Advice: Employees who have questions about the application of this part or any
supplemental agency regulations to particular situations should seek advice from an agency ethics official .
Disciplinary action for violating this part or any supplemental agency regulations will not be taken against
an employee who has engaged in conduct in good faith reliance upon the advice of an agency ethics
official. provided that the employee, in seeking such advice, has made full disclosure of all relevant
circumstances. Where the employee's conduct violates a criminal statute, reliance on the advice of an
agency ethics official cannot ensure that the employee will not be prosecuted under that statute . However,
good faith reliance on the advice of an agency ethics official is a factor that may be taken into account by
the Department of Justice in the selection of cases for prosecution. Disclosures made by an employee to
an agency ethics official are not protected by an attorney-client privilege. An agency ethics official is
required by 28 U.S.C. 535 to report any information he receives relating to a violation of the criminal code ,
title 18 of the United States Code."

I hope this information is clear. If any of the facts as I have stated them in the second paragraph are not
correct, or if you have any questions, please let me know.

Thanks, and best of luck in the new chapter of your life.

Patrycia Sanchez. Human Resources Specialist

Voice: 505-954-2084
Fax: 505-954-2092
 Carolyn McCormick To Steve Henke <Steve_Henke@blm.gov>
<ctmccormick @comcast . net>
cc

04/30/2010 11:30 AM bcc

Subject Re: NMOGA Info & Assignment

History: This message has been replied to.

Steve,

I would like to have it back by Wed, the 5th, if possible.

Thanks,
- Carolyn

Carolyn McCormick, Principal

Peak HR Consulting, LLC
303-388-5308

Original Message
From: "Steve Henke" <Steve_Henke@blm.gOv>
TO: "CarOlyn McCOrmick" <ctmccormick@comcast.net >
Sent: Friday, April 30, 2010 10:19:38 AM GMT -07:00 US/Canada Mountain
Subject: Re: NMOGA Info & Assignment

Carolyn:

When wOuld yOu like tO have the writing assignment?

Steve
 Carolyn McCormick To Steve Henke <Steve_Henke@blm.gov>
<ctmccormick @comcast .net>
cc

05/04/2010 11:55 AM bcc

Subject Re: NMOGA Writing Assignment

Thanks so much, Steve.

- Carolyn

Carolyn McCormick, Principal

Peak HR Consulting, LLC
303-388-5308

Original Message
From: "Steve Henke" <Steve Henke@blm.gov >
To: "Carolyn McCormick" <ctmccormick@comcast.net >
Sent: Tuesday, May 4, 2010 11:52:36 AM GMT -07:00 US/Canada Mountain
Subject: Re: NMOGA Writing Assignment

Carolyn:

Attached please find my submissions as requested. If you have any

questions or problems printing these, please give me a call. Thanks.

Steve

(See attached file: NMOGA.Writing.1.docx)(See attached file:

NMOGA.Writing.2.docx)
New Mexico Oil and Gas Association — President Search — Writing Project Page 1 of 2

Steve Henke

1. There are several challenges to the long-term viability of the oil and gas industry in New
Mexico. The general categories of taxes and fees, access to resources and transportation
routes, and government regulation at the federal, state and local levels combine to present our
association with a challenge requiring a focused, collectively supported effort.

Obviously there are areas of overlap among the three categories I listed above, which I will
address. However, when there is broad based support from our membership as to the most
important of issues, I would suggest to the Executive Committee that we work on defining
desired outcomes for each. Next I would recommend the development of a strategic plan, with
short and long-term objectives, which systematically addresses each goal. An implementation
plan should complement the strategy, with a mechanism to establish and measure progress,
assess emerging or unanticipated factors, and adjust priorities as necessary. I am an advocate
and practitioner of the plan, implement, monitor and adapt principles of organizational
leadership.

The oil and gas industry supports the majority of the state's budget and has been the primary
source of revenue for the permanent fund. In this era of budget shortages for the state, there
will, in my opinion, be increasing pressure in the legislature to raise revenue, and the oil and gas
industry will be a tempting and familiar target. We must work with our membership and
lobbyists to insure the industry is not unfairly burdened to pay for existing or new programs
within the state. A vibrant, stable oil and gas industry is critical to New Mexico's future, and this
message should be delivered unapologetically.

We must be aware of and involved in planning efforts at the federal, state and local levels to
positively influence decisions that potentially affect our members' access to resources and
transportation corridors. I would promote a spirit of collaboration with regulatory proponents
and supporters, while maintaining diligence in understanding and commenting on proposals.
Our organization must have a seat at the table to represent our members' interest as these
issues are contemplated.

Finally, we are faced with an unprecedented level of new regulatory proposals by government at
all levels. Air quality, green house gases and global climate change issues will be particularly
challenging in the near term. The collective wisdom of our membership and their employees
should be used to, as best we can, insure proposals are scientifically based, properly analyzed,
and if adopted, reasonably implemented and monitored for effectiveness.

In summary, I would work collaboratively with the Executive Committee and our members to
develop and implement a broadly supported strategic plan which addresses the priority issues
facing the industry. There may well be adjustments to the issues I have identified; however,
based upon my experience, I believe the recommended approach is sound.
Steve Henke Page 2 of 2

3. When I was appointed District Manager in Farmington in 2001, I inherited a dysfunctional

organization. The depth and consequences of this dysfunction were manifested in internal
organizational disagreements and sabotage of projects without resolution or progress. More
importantly, our clients and the public were confused, frustrated, and in some cases disgusted with the
lack of cohesion and consistency within the Bureau of Land Management (BLM). In addition, there was
a misguided, long-range planning effort underway that had no definitive purpose or sense of direction.
Needless to say, morale within the office was low, stress was high, and trust was lacking, both internally
and externally.

There were sharp differences within the office as to the proper course to balance oil and gas
development with other resource values and responsibilities. Disruptive personal agendas were
prevalent. The day after I was appointed, I called a meeting of all employees, and I said unequivocally
that "the Farmington District was back in the oil and gas business because it is in the public interest to
do so." Having worked previously in the District, I had a reservoir of personal capital with select
individuals, which I could draw upon to implement a change in direction and a new focus for the office.

In the first meeting with all staff, I laid out some key principles that would serve as the foundation for a
new direction. I emphasized the need for leaders to lead and for them to make difficult decisions. I
discussed a set of fundamental expectations with which I wanted to operate: we will develop the
public's oil and gas in an environmentally responsible manner; we will collaborate with others to reach
consensus on controversial issues; we will work to build trust internally and externally; we will uphold
our commitments and be accountable; and we will strive to be effective, not just efficient.

My next steps involved outlining a comprehensive set of objectives with the management team. Staffs
and individuals participated in establishing specific performance expectations which would lead to our
organizational success. Along with rebuilding management's credibility, I began the process of external
damage repair through a series of meetings and discussions seeking recommendations from our
customers. I simultaneously hired a contractor to go out in the community to identify key concerns.

After compiling and analyzing the information from external sources, I initiated a series of successful
collaborative efforts to address the resource management issues of most concern to the public. When
we began to walk the walk internally, the tension level subsided substantially, and we became a more
focused, effective, and trusted organization that is now viewed as adding value to the community. The
BLM in Farmington is now on a sustainable path, with a culture change and proactive attitude which will
outlast my tenure.

Building and nurturing relationships has been vital to my success. Although I provided significant
recognition to those assisting me, I should have been more sensitive in offering personal feedback to
those I disappointed with decisions not aligned with their personal preferences. I trust those I
disappointed know their views were carefully considered, but they should have heard it from me.