Proposed Rule: Outer Continental Shelf Oil, Gas, and Sulphur Operations: Oil and Gas Production Requirements

9884 Federal Register / Vol. 72, No.
43 / Tuesday, March 6, 2007 / Proposed Rules
TABLE 1.—AIRBUS SERVICE BULLETINS—Continued

Service Bulletin Revision level Date
A320–27–1117 .................................................................................................................................... Revision 03 .............. August 24, 2001.
General Visual Inspections acceptable for compliance with the Issued in Renton, Washington, on February
(j) For all airplanes: At the time specified requirements of that paragraph. 23, 2007.
in paragraph (j)(1) or (j)(2) of this AD, as (l) Accomplishment of the inspections Ali Bahrami,
applicable, do a general visual inspection of required by paragraph (j) of this AD before Manager, Transport Airplane Directorate,
the inboard flap trunnions for any wear the effective date of this AD, in accordance Aircraft Certification Service.
marks and of the sliding panels for any with Airbus Service Bulletin A320–57–1133,
[FR Doc. E7–3841 Filed 3–5–07; 8:45 am]
cracking at the long edges, and do all dated July 28, 2005, is acceptable for
applicable corrective actions, by BILLING CODE 4910–13–P
compliance with the requirements of that
accomplishing all of the applicable actions paragraph.
specified in the Accomplishment
Instructions of Airbus Service Bulletin A320– Compliance Times DEPARTMENT OF THE INTERIOR
57–1133, Revision 01, dated August 7, 2006; (m) Where Airbus Service Bulletins A320–
except as provided by paragraph (p) of this 57–1133, dated July 28, 2005; and Revision Minerals Management Service
AD. All corrective actions must be done at
01, dated August 7, 2006; specify replacing
the compliance times specified in Figures 5 30 CFR Part 250
and 6, as applicable, of the service bulletin; the sliding panel at the next opportunity if
except as provided by paragraphs (m), (n), damaged, replace it within 600 flight hours RIN 1010–AD12
and (o) of this AD. Repeat the inspection after the inspection required by paragraph (g)
thereafter at intervals not to exceed 4,000 or (j) of this AD, as applicable. Oil and Gas and Sulphur Operations
flight hours. Accomplishment of the general (n) If any damage to the trunnion is found on the Outer Continental Shelf (OCS)—
visual inspection required by this paragraph during any inspection required by paragraph Oil and Gas Production Requirements
terminates the detailed inspection (g) or (j) of this AD, before further flight, do
requirement of paragraph (g) of this AD. the corrective actions specified in Airbus AGENCY: Minerals Management Service
Note 3: For the purposes of this AD, a Service Bulletin A320–57–1133, dated July (MMS), Interior.
general visual inspection is: ‘‘A visual 28, 2005; or Revision 01, dated August 7, ACTION: Proposed rule.
examination of an interior or exterior area, 2006. As of the effective date of this AD, only
installation, or assembly to detect obvious Revision 01 may be used. SUMMARY: MMS proposes to amend the
damage, failure, or irregularity. This level of regulations regarding oil and natural gas
inspection is made from within touching Grace Period Assessment production. This is a complete rewrite
distance unless otherwise specified. A mirror (o) Where Airbus Service Bulletins A320– of these regulations, addressing issues
may be necessary to ensure visual access to 57–1133, dated July 28, 2005; and Revision such as production rates, burning oil,
all surfaces in the inspection area. This level 01, dated August 7, 2006; specify contacting
of inspection is made under normally
and venting and flaring natural gas. The
the manufacturer for a grace period proposed rule would eliminate most
available lighting conditions such as
assessment after replacing the trunnion or restrictions on production rates and
daylight, hangar lighting, flashlight, or
droplight and may require removal or flap, contact the Manager, International clarify flaring and venting limits. The
opening of access panels or doors. Stands, Branch, ANM–116, Transport Airplane proposed rule was written using plain
ladders, or platforms may be required to gain Directorate, FAA; the Direction Ge´ne´rale de language, so it will be easier to read and
proximity to the area being checked.’’ l’Aviation Civile; or the European Aviation understand.
(1) For airplanes on which the detailed Safety Agency (or its delegated agent); for the
DATES: Submit comments by June 4,
inspection required by paragraph (g) of this grace period assessment.
2007. MMS may not fully consider
AD has been done before the effective date No Reporting Requirement comments received after this date.
of this AD: Inspect before accumulating 4,000
total flight hours on the inboard flap (p) Although Airbus Service Bulletins Submit comments to the Office of
trunnion since new, or within 4,000 flight A320–57–1133, dated July 28, 2005; and Management and Budget on the
hours after accomplishing the most recent Revision 01, dated August 7, 2006; specify to information collection burden in this
inspection required by paragraph (g) of this submit certain information to the rule by April 5, 2007.
AD, whichever occurs later. manufacturer, this AD does not include that ADDRESSES: You may submit comments
(2) For airplanes other than those requirement. on the rulemaking by any of the
identified in paragraph (j)(1) of this AD: following methods. Please use the
Inspect at the latest of the applicable times Alternative Methods of Compliance (AMOCs)
Regulation Identifier Number (RIN)
specified in paragraphs (j)(2)(i), (j)(2)(ii), and (q)(1) The Manager, International Branch,
(j)(2)(iii) of this AD. 1010–AD12 as an identifier in your
ANM–116, has the authority to approve
(i) Before accumulating 4,000 total flight message. See also Public Comment
AMOCs for this AD, if requested in
hours on the inboard flap trunnion since accordance with the procedures found in 14
Procedures under Procedural Matters.
new. • MMS’s Public Connect on-line
CFR 39.19.
(ii) Within 4,000 flight hours after (2) Before using any AMOC approved in
commenting system, https://
accomplishing paragraph (f) or (h) of this AD. ocsconnect.mms.gov. Follow the
accordance with 14 CFR 39.19 on any
(iii) Within 600 flight hours after the instructions on the Web site for
effective date of this AD. airplane to which the AMOC applies, notify
submitting comments.
cprice-sewell on PROD1PC67 with PROPOSALS
the appropriate principal inspector in the

Actions Accomplished According to Previous FAA Flight Standards Certificate Holding • Federal eRulemaking Portal: http://
Issue of Service Bulletins District Office. www.regulations.gov. Follow the
(k) Accomplishment of the modification instructions on the Web site for
Related Information submitting comments.
required by paragraph (f) of this AD before
the effective date of this AD, in accordance (r) French airworthiness directive F–2005– • E-mail MMS at
with Airbus Service Bulletin A320–27–1117, 139, dated August 3, 2005, also addresses the rules.comments@mms.gov. Use RIN
Revision 03, dated August 24, 2001, is subject of this AD. 1010–AD12 in the subject line.
VerDate Aug<31>2005 15:32 Mar 05, 2007 Jkt 211001 PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 E:\FR\FM\06MRP1.SGM 06MRP1
Federal Register / Vol. 72, No. 43 / Tuesday, March 6, 2007 / Proposed Rules 9885
• Fax: 703–787–1546. Identify with dioxide emissions caused by human facilities process more than 2,000
the RIN, 1010–AD12. activity. barrels of oil per day (BOPD). This
• Mail or hand-carry comments to the • EIA [Energy Information requirement is included in the proposed
Department of the Interior; Minerals Administration] estimates that the rule.
Management Service; Attention: Rules United States flares or vents about 0.4 The second analysis indicated that a
Processing Team (RPT); 381 Elden percent of its production, representing regulatory change to require flaring
Street, MS–4024; Herndon, Virginia only 3 percent of the world’s total instead of venting may be appropriate.
20170–4817. Please reference ‘‘Oil and amount of natural gas flared and vented. However, the cost of implementing this
Gas Production Requirements, 1010– • In the United States, there are well- requirement is significant, and input
AD12’’ in your comments and include developed natural gas markets and from potentially affected parties is
your name and return address. infrastructure to reduce the flaring and necessary to establish a reasonable
• Send comments on the information venting of associated natural gas. threshold. MMS plans to work directly
collection in this rule to: Interior Desk • Since 1990, the quantity of oil with interested parties to determine the
Officer 1010–AD12, Office of produced has increased, but because of best approach in considering the GAO
Management and Budget; 202/395–6566 various global reduction initiatives, the recommendation to require flaring
(facsimile); e-mail: quantity of natural gas flared and vented instead of venting natural gas. We are
oira_docket@omb.eop.gov. has remained constant. Consequently, soliciting comments on this issue in this
FOR FURTHER INFORMATION CONTACT: natural gas emissions as a percentage of proposed rule. We would like comments
Amy C. White, Regulations and oil production have decreased. related to additional costs,
Standards Branch, 703–787–1665. • Since the impact of methane environmental impacts, and conditions
SUPPLEMENTARY INFORMATION: This rule (venting) on the earth’s atmosphere is or situations where flaring may not be
proposes to revise subpart K, Oil and about 23 times greater than that of advisable. We are planning a workshop
Gas Production Rates, of 30 CFR 250. carbon dioxide (flaring), a small change to discuss the issue. The workshop
The new version of subpart K would in the ratio of flaring to venting could would be followed by appropriate
represent a major change in the cause a disproportionate change in the rulemaking.
structure and readability of the impact of emissions. To improve data collection, as the
regulation with some changes in the The report concluded that more GAO report suggested, MMS is
requirements. This revision would accurate records on flaring and venting proposing that operators report flaring
eliminate some requirements that are no are needed to determine the amount of and venting volumes to MMS
longer necessary in today’s industry and the resource that is lost and the volume separately. Currently, MMS only
clarify other requirements. Some of of greenhouse gas emissions these collects information on the total natural
these revisions are based on a practices contribute to the atmosphere gas flared and vented. Operators do not
Government Accountability Office each year. The GAO made two need to differentiate between the two
(GAO) report on natural gas flaring and recommendations to the Secretary of the categories. In addition, MMS inspectors
venting. Interior: (1) ‘‘Consider the cost and currently use infrared cameras to verify
benefit of requiring that companies flare natural gas venting.
GAO Report the natural gas, whenever possible,
In July 2004, the GAO issued a report when flaring or venting is necessary,’’ Proposed Rule
on world-wide emissions from vented and (2) ‘‘consider the cost and benefit of Organization
and flared natural gas titled, ‘‘Natural requiring that companies use flaring and
Gas Flaring and Venting—Opportunities venting meters to improve oversight.’’ In The proposed rule would completely
to Improve Data and Reduce Emissions’’ addition, there was a recommendation restructure subpart K. The new version
(GAO–04–809). This report is available to the Secretary of Energy to consider, is divided into shorter, easier-to-read
on the GAO Web site at: http:// ‘‘in consultation with EPA sections. Each section focuses on one
www.gao.gov/new.items/d04809.pdf. [Environmental Protection Agency], topic instead of the arrangement in the
This report reviewed the flaring and MMS, and BLM [Bureau of Land current version, which covers multiple
venting data available, the extent of Management], how to best collect topics in each section. For example, in
flaring and venting, their contributions separate statistics on flaring and the current edition of subpart K, the
to greenhouse gas emissions, and venting.’’ regulations regarding burning liquid
opportunities for the federal government In comments on the draft report, the hydrocarbons, as well as those
to reduce flaring and venting. The report Department of the Interior (DOI) governing flaring or venting natural gas,
found that: concurred with the report’s are in one section. In the proposed rule,
• The amount of gas emitted through recommendations and agreed to assess these same requirements are in five
flaring and venting worldwide is small the cost effectiveness of requiring the oil sections, making it easier for an operator
compared with global natural gas and gas industry to implement these to find the information that applies to
production and represents a small changes. MMS conducted analyses to its particular situation. The numbering
portion of greenhouse gas emissions. assess the costs and benefits of requiring for subpart K would start at § 250.1150
• Worldwide flaring and venting is flare/vent meters and also of requiring instead of § 250.1100 to accommodate
estimated to contribute, respectively, flaring instead of venting. The first other planned rulemaking. The
about 4 percent of the total methane and analysis supported the recommendation proposed structure is shown in the
about 1 percent of the total carbon to require meters provided that the following table:
Current rule Proposed rule
§ 250.1100 Definitions for production rates ........................................... § 250.105 Definitions.

§ 250.105 Definitions.
§ 250.1101 General requirements and classification of reservoirs ........ § 250.1150 General reservoir production requirements.
§ 250.1154 How do I determine if my reservoir is sensitive?
§ 250.1155 What information must I submit for sensitive reservoirs?
9886 Federal Register / Vol. 72, No. 43 / Tuesday, March 6, 2007 / Proposed Rules
Current rule Proposed rule
§ 250.1156 What steps must I take to receive approval to produce

within 500 feet of a unit or lease line?
§ 250.1157 How do I receive approval to produce gas from an oil res-
ervoir with an associated gas cap?
§ 250.1102 Oil and gas production rates ............................................... Requirements for production rates are largely eliminated. Portions re-
tained were combined with new information in ‘‘§ 250.1159 May the
Regional Supervisor limit my well or reservoir production rates?’’
§ 250.1103 Well production testing ........................................................ § 250.1151 How often must I conduct well production tests?
§ 250.1152 How do I conduct well tests?
§ 250.1104 Bottomhole pressure survey ............................................... § 250.1153 When must I conduct a static bottomhole pressure sur-
vey?
§ 250.1105 Flaring or venting of gas and burning liquid hydrocarbons § 250.1160 When may I flare or vent gas?
§ 250.1161 When may I flare or vent gas for extended periods of
time?
§ 250.1162 When may I burn produced liquid hydrocarbons?
§ 250.1163 How must I measure gas flaring or venting and liquid hy-
drocarbon burning volumes and what records must I maintain?
§ 250.1164 What are the requirements for flaring or venting gas con-
taining H2S?
§ 250.1106 Downhole commingling ....................................................... § 250.1158 How do I receive approval to downhole commingle hydro-
carbons?
§ 250.1107 Enhanced oil and gas recovery operations ........................ § 250.1165 What must I do for enhanced recovery operations?
New ........................................................................................................... § 250.1159 May the Regional Supervisor limit my well or reservoir
production rates?
§ 250.1166 What additional reporting is required for developments in
the Alaska Region?
§ 250.1167 What information must I submit for approvals?
The organization of the proposed rule without significant detriment to efforts Those details are addressed in the
reflects the actual sequence of events for conservation and maximization of proposed rule.
that occurs as wells are developed and ultimate recovery. However, the • NTL No. 98–23, ‘‘Interim Reporting
the resources produced. The proposed proposed rule would allow the Regional Requirements for 30 CFR 250, subpart
rule is written in plain language to Supervisor to set production rates in K, Oil and Gas Production Rates,’’
conform to the DOI’s standards for rule cases where excessive production could effective October 15, 1998. This NTL
writing. These changes include harm ultimate recovery from the addressed oral approvals for gas flaring
incorporating tables, using a question reservoir. and relaxed some of the requirements
format for section headings, and using The proposed rule would clarify regarding production rates, including
pronouns. These changes would make required information submittals to MER and MPR in certain circumstances.
the rule easier to understand. Finally, a MMS, including requirements relating The NTL clarified the submittal of
table at the end of the rule lists the to the documents submitted to MMS written summary letters on flaring
information that operators would have and the timing of those submissions. For incidents that received oral approval.
to submit to MMS to receive approvals example, there is additional guidance These requirements are addressed in the
for various operations. on notifying adjoining operators proposed rule.
regarding production within 500 feet of • NTL No. 99–G20, ‘‘Downhole
Major Changes to the Rule a common lease or unit line. The Commingling Applications,’’ effective
Some requirements from the previous proposed rule would provide more September 7, 1999. This NTL was
edition of subpart K would be detail as to when the notification must issued in conjunction with NTL No. 99–
eliminated by the proposed rule because occur, what the notice must include, G19. It clarifies what information the
they are unnecessary in today’s and how to verify the notification with applicant needs to include in downhole
petroleum industry. For example, MMS MMS. commingling applications to ensure that
required operators to establish The proposed rule would incorporate the application is processed without
maximum production rates (MPR’s) for several Notices to Lessees and Operators delay. These information requirements
producing well completions, and (NTLs) that clarify the current were added to the proposed rule.
maximum efficient rates (MER’s) for regulations. These NTLs would be • NTL No. 2006–N06, ‘‘Flaring and
producing reservoirs, in OCS Order No. obsolete if the proposed rule becomes Venting Approvals,’’ effective December
11 in 1974, during a period of oil final and MMS would withdraw all of 19, 2006. This NTL clarifies the
shortages and energy crises. In 1988, these NTLs at that time. However, if definitions of flaring and venting, the
MMS reduced the MER requirement. necessary, MMS would issue additional record-keeping requirements, the
Currently, MER’s are required only on NTLs to provide guidance. The NTLs classification of emitted natural gas, and
sensitive reservoirs (primarily oil affected include: the MMS policy regarding continuous
reservoirs with associated gas caps). • NTL No. 97–16, ‘‘Production flaring or venting of small volumes of
Determining and maintaining Within 500 Feet of a Unit or Lease oil-well gas or gas-well gas from storage
production rates imposes a significant Line,’’ effective August 1, 1997. This vessels or other low-pressure
burden on operators. Based on the past NTL clarifies MMS policy on issuing production vessels when the gas cannot
30 years of experience, MMS has approvals for production within 500 feet be economically recovered. These issues
concluded that maximum rate of a unit or lease line, and includes are addressed in the proposed rule. This
requirements and production balancing details on what the requesting operator NTL also provides contact information
requirements can be largely eliminated needs to provide to MMS for approval. for each Region and provides sample
field records. These two items are not 30 CFR 250.105 and in subpart K at 30 Classifying Reservoirs
addressed in the proposed rule. MMS CFR 250.1100. MMS proposes removing § 250.1154 How do I determine if my
would issue a new NTL to include only the definitions from subpart K because reservoir is sensitive? MMS requires that
this information, after we publish the they already appear in subpart A. operators classify all reservoirs as either
final rule. sensitive or non-sensitive. A sensitive
The most significant change, with General
§ 250.1150 What are General reservoir is a reservoir in which high
regard to cost, would be a proposed
Reservoir Production Requirements? reservoir production rates would
requirement for natural gas flare/vent
Because the first section of subpart K decrease ultimate recovery. This section
meters on facilities that process
would no longer contain the definitions, would define the requirements for
significant volumes of oil. The current
this section would contain the general classifying reservoirs; when the
MMS requirements rely heavily on the
accuracy of operator calculations and requirements for producing wells and Regional Supervisor may reclassify a
record keeping. Recent incidents have reservoirs. reservoir; and when an operator may or
shown that these methods are must request reclassification of a
Well Tests and Surveys reservoir. There are not substantive
insufficient to accurately capture actual
flaring and venting volumes. The § 250.1151 How often must I changes between the requirements of
proposed rule would require the conduct well production tests? Well the current version of the rule and the
installation of meters to accurately production testing is required for all proposed; this section would be
measure all flared and vented natural wells. This proposed section defines reorganized and easier to read.
gas on facilities that process more than when an operator must perform the tests § 250.1155 What information must I
2,000 BOPD. These facilities have the and describes the conditions for the submit for sensitive reservoirs? This
potential to flare or vent significant tests. This section would cover well proposed section defines what
volumes of associated gas. flow potential tests, semi-annual well information MMS requires for sensitive
MMS estimates the cost of purchasing tests, and any special tests that the reservoirs and when operators must
and installing these meters to be Regional Supervisor may require. submit that information. The only
$77,000 per facility. Limiting the Operators would no longer be required proposed change is that the Regional
requirement to facilities that process to submit Semiannual Well Test Reports Supervisor may request that the
over 2,000 BOPD ensures that the within 45 days of the tests. Instead, they operator submit Form MMS–127
meters are a small expense relative to would submit the reports within 45 (Sensitive Reservoir Information Report)
the cost of operating those facilities and days after the end of the calendar half- and supporting information.
relative to the income generated by year. This would allow operators to
Approvals Prior to Production
those facilities; and that the requirement submit all their well tests at one time
would not be an unfair burden to small and include the most recent tests for § 250.1156 What steps must I take to
operators. MMS estimates that 34 those few completions that produced receive approval to produce within 500
operators would have to install the during the 6-month period, but were not feet of a unit or lease line? In the current
meters on 112 facilities. Of those tested within the last 45 days. version of subpart K, a number of
operators that would have to install the § 250.1152 How do I conduct well requirements, including approval for
meters, nine are considered small tests? This proposed section describes producing within 500 feet of a unit or
businesses, according to the North how operators must conduct a well test. lease line and basic classification
American Industry Classification The testing procedures would be the requirements, are included in one
System (NAICS). same as in the current version of the section, 30 CFR 250.1101. In the
The July 2004 GAO report on world- rule. However, the section would be proposed rule, each of these issues is
wide emissions from vented and flared reformatted to make the procedures addressed in a separate section. Title 30
natural gas, discussed above, easier to follow. This reformatting CFR 250.1156 would address only the
recommended that more accurate would include the procedure for approval and service fee for producing
records on flaring and venting are ensuring that the well is stabilized within 500 feet of a lease or unit line.
needed to determine the amount of the before conducting the test; the required The proposed approval requirements
resource that is wasted, and the volume duration of the test; the usage of are clearer than in the current rule, and
of greenhouse gas these practices correction factors and adjustments; and include issues addressed in NTL 97–16.
contribute to the atmosphere each year. an option to use other procedures with In addition to receiving approval from
The report recommended that DOI approval from the Regional Supervisor. the Regional Supervisor, operators must
consider requiring flare/vent meters to It also discusses conducting additional notify operators of adjacent leases. The
measure the gas lost. MMS agrees with tests that the Regional Supervisor may requirement to notify adjacent operators
that recommendation. However, MMS require. would be clearer, and there is a list of
believes installing these meters on § 250.1153 When must I conduct a information the notification would have
facilities that process less than 2,000 static bottomhole pressure survey? to include.
BOPD would not be cost effective, and Static bottomhole pressure surveys are § 250.1157 How do I receive
might be an undue burden on smaller required on all new producing approval to produce gas from an oil
operators. reservoirs, and annually on reservoirs reservoir with an associated gas cap?
MMS is also proposing to add new with three or more producing This section would address how to
definitions for ‘‘flaring’’ and ‘‘venting’’ completions. This proposed section receive approval to produce from an
to 30 CFR part 250 subpart A, and to addresses when operators must conduct associated gas cap and its service fee.
revise the definition for ‘‘sensitive static bottomhole pressure surveys and The required supporting information is
reservoir.’’ what information operators must submit listed in the table at proposed 30 CFR
The following is a brief section-by- to MMS. The proposed new provision 250.1167 at the end of the rule.
section description of the substantive would allow the operator to request a § 250.1158 How do I receive
proposed changes to subpart K: departure from this requirement from approval to downhole commingle
§ 250.105 Definitions. In the current the Regional Supervisor, with hydrocarbons? This section would
rule, definitions appear in subpart A at appropriate justification. address how to obtain MMS approval to
downhole commingle hydrocarbons and than those specified in their previously- separate location, but they must be
the service fee that must accompany approved plans. This would enable available for MMS review.
your request. For downhole MMS to ensure that flaring and venting The proposed rule would clarify
commingling in a competitive reservoir, activities are in compliance with reporting procedures and require
the operator would be required to notify environmental laws. operators to report flared and vented
the operators of all leases that contain The proposed rule would also allow volumes separately. The previously
the reservoir. The request for approval the Regional Supervisor to specify discussed GAO report concluded that
must document this notification. flaring and venting volume limits (in MMS should collect flared and vented
Operators of the other leases would addition to time limits) in order to volumes separately. MMS tentatively
have 30 days after the notification to prevent air quality degradation or the agrees with this conclusion, and does
provide the Regional Supervisor with loss of reserves. This is sometimes not believe it will pose a significant
letters of acceptance or objection. If the necessary because offshore production burden on operators because they
notified operators do not respond facilities are now capable of flaring or already report the volumes of gas flared
within the specified period, the venting extremely large volumes in a and vented to MMS on Form MMS–
Regional Supervisor will assume the short amount of time. 4054 (Oil and Gas Operations Report).
operators do not object. The Regional § 250.1161 When may I flare or vent Operators would only need to identify
Supervisor will consider any objections, gas for extended periods of time? This whether the gas volumes were flared or
but may approve the commingling section would define when operators vented.
request to protect correlative rights. This must receive approval from the Regional The proposed rule would require
section would also incorporate issues Supervisor to flare or vent gas for an operators to identify the facilities where
addressed in NTL’s No. 99–G19 and 99– extended period of time. If there is a the gas is flared or vented. This would
G20. need to flare or vent a small amount of enable MMS to directly compare
gas (less than 10 MCF per day) due to volumes reported on Forms MMS–4054
Production Rates improperly working valves or pipe with field records. This requirement
§ 250.1159 May the Regional fittings and the Regional Supervisor would also reduce the burden on
Supervisor limit my well or reservoir determines that it is prudent to operators during royalty audits because
production rates? Generally, this postpone the repair until a scheduled operators would no longer have to
proposed rule would eliminate MPR’s facility shutdown occurs, then the reconstruct historical flare/vent
and MER’s. However, this section would proposed rule would allow the Regional allocations for MMS auditors.
retain the Regional Supervisor’s Supervisor to exempt the amount flared The proposed rule would require
authority to set an MPR for a producing or vented from the time limits set in operators to retain meter recordings on
well completion or an MER for a § 250.1160. facilities that require flare/vent meters.
sensitive reservoir. If the Regional § 250.1162 When may I burn This would allow MMS to compare
Supervisor sets an MPR or MER, it produced liquid hydrocarbons? The eyewitness observations with field
would be subject to the terms and regulations on burning produced liquid records and ensure that flaring and
conditions set by the Regional hydrocarbon would not change. venting incidents are properly recorded.
Supervisor. Those terms and conditions Operators must receive approval from MMS does not believe this would be a
would include production restrictions the Regional Supervisor in all cases significant burden on those facilities
that allow for normal variations and before burning liquid hydrocarbons. with flare/vent meters because these
fluctuations in production rates. § 250.1163 How must I measure gas meters typically record such events
flaring or venting volumes, and liquid automatically and operators usually
Flaring, Venting, and Burning hydrocarbon burning volumes; and maintain these electronic records for
Hydrocarbons what records must I maintain? their own purposes.
§ 250.1160 When may I flare or vent Requirements for measuring and In addition, the proposed rule would
gas? The current regulation contains all keeping records on flaring, venting, and clarify when royalties are due on flared
of the flaring, venting, and burning burning would change. The proposed gas, vented gas, and burned liquid
regulations in one section. The rule would require vent/flare meters on hydrocarbons under 30 CFR 202.100
proposed rule covers these in separate all facilities that process more than Royalty on Oil and 30 CFR 202.150
sections, so it is easier to find the 2,000 BOPD. Operators would be Royalty on Gas. As in the current rule,
requirements for a given situation. The required to install these meters within royalties would not be due if the
new format also allows for the inclusion 120 days after the final rule is hydrocarbons were unavoidably lost. In
of more detail and clarification of flaring published. This extended time frame is most cases, MMS will consider
and venting situations that are not to accommodate operators that are hydrocarbons that are flared, vented or
described in the current rule. Since required to install meters at multiple burned with MMS approval as
there are many situations under which facilities. Facilities that do not process ‘‘unavoidably lost’’ and the operator
flaring and venting might occur, the more than 2,000 BOPD when the final would not be required to pay royalties.
table in this section reflects general rule is published, but increase However, MMS would retain the
categories that encompass the situations production above this level after the authority to determine whether or not
under which MMS would allow flaring rule is published, would be required to the loss was avoidable or due to
or venting without approval from the install meters within 90 days. negligence, even if approved by MMS.
Regional Supervisor. Under most Operators would be required to keep For example, if you received MMS
circumstances, the proposed rule would records on flaring, venting, and burning approval to flare 100 MCF of gas per
allow operators to treat gas flashing for 6 years to comply with 30 CFR Part day, then actually flared 100,000 MCF
from gas-well condensate similar to oil- 212—Records and Files Maintenance. of gas per day under conditions that
well gas for flaring and venting approval The operators would be required to would not have been approved, MMS
purposes. store these records on the facility for the might determine that the entire volume
The proposed rule would require first 2 years after the flaring, venting, or flared was ‘‘avoidably lost’’ and
operators to receive approval before burning event. After that, the operator royalties would be due on the entire
flaring or venting gas in volumes higher would be able to keep the records at a volume. MMS would also be able to
pursue civil penalties, under 30 CFR management plans enable the MMS to greenhouse gas that is released into the
250 subpart N—Outer Continental Shelf monitor recoverable oil and assure environment by venting. MMS is
(OCS) Civil Penalties, if we determine proper allocation of reserves for royalty studying this recommendation before
that the loss was avoidable or due to payment and to be consistent with the proposing any regulatory change. We
negligence. State of Alaska requirements. would like comments on this issue,
§ 250.1164 What are the This provision would also enable the including comments related to
requirements for flaring or venting gas MMS to manage its responsibility for additional costs, environmental
containing H2S? The proposed rule conservation of resources on a real time impacts, and conditions or situations
would require Regional Supervisor basis. The number, type, spacing and where flaring may not be advisable.
approval before emitting more than 15 sequencing of development wells
lbs of SO2 per hour per mile from shore. (producers and injectors) will vary from Procedural Matters
This would ensure that flaring activities the original approved development and Public Availability of Comments
are in compliance with environmental production plan as more information on
laws. MMS does not believe this would Before including your address, phone
the reservoir is obtained. An annual
create an excessive burden on operators. number, e-mail address, or other
reservoir management plan would
The proposed regulations specify the personal identifying information in your
enable the MMS to track development
records that the operator would have to comment, you should be aware that
activities with the approved
keep. These records must be kept for 6 your entire comment—including your
development and production plan and
years, meeting the same requirements as personal identifying information—may
assure maximum recovery based on the
in the previous section. be made publicly available at any time.
most current knowledge of the reservoir.
While you can ask us in your comment
Enhanced Recovery Information Needed With Forms and for to withhold your personal identifying
§ 250.1165 What must I do for Approvals information from public review, we
enhanced recovery operations? There § 250.1167 What information must I cannot guarantee that we will be able to
are no significant proposed changes to submit with forms and for approvals? do so.
the regulations regarding enhanced This proposed table is designed to be an Regulatory Planning and Review
recovery operations. Operators would easy-to-use reference to determine the (Executive Order (E.O.) 12866)
still be required to initiate enhanced information and supporting
recovery operations; receive Regional This proposed rule is not a significant
documentation to submit to the
Supervisor approval for the plans; and rule as determined by the Office of
Regional Supervisor and to remind
submit reports on the substances Management and Budget (OMB) and is
lessees to pay the appropriate service
injected, produced, or reproduced. not subject to review under E.O. 12866.
fee. Forms MMS–126 (Well Potential
(1) The proposed rule would not have
Special Alaska OCS Region Test Report) and MMS–127 (Sensitive
an annual economic effect of $100
Requirements Reservoir Information Report) would
million or more on the economy. It
require supporting documents. Also,
§ 250.1166 What additional would not adversely affect in a material
several operations covered under
reporting is required for developments way the economy, productivity,
subpart K (gas cap production,
in the Alaska Region? This new section competition, jobs, the environment,
downhole commingling, reservoir
addresses special proposed reporting public health or safety, or State, local,
reclassification, and production within
requirements for Alaska. This would or tribal governments or communities. A
500 feet of a unit or lease line), would
require operators to submit an annual cost-benefit and economic analysis is
require that the operator submit
reservoir management report to the not required.
applications and supporting documents
Regional Supervisor for any This proposed rule revises the
to the Regional Supervisor. All of these
development in Alaska. If a requirements for oil and gas production.
documents are covered in the table.
development is regulated by both the The changes in the rule are not
MMS and the State of Alaska, the Questions significant enough to have an impact on
operator would be able to coordinate In addition to comments on these the economy or an economic sector,
reporting requirements with MMS and proposed regulations, MMS is productivity, jobs, the environment, or
the State of Alaska Oil and Gas requesting comments on the following other units of government. Some of the
Conservation Commission. This section questions. current requirements would be relaxed.
would also require operators to request 1. Are these regulations well For example, limits on production rates
an MER for sensitive reservoirs in organized and easy to read? were eliminated in most cases. This
Alaska. 2. Is the submittal table useful? would allow the operators to produce
This is necessary for the MMS Alaska 3. Is the 2,000 BOPD requirement for the oil and gas at the rates that they
Region to administer Section 7 installing flare/vent meters reasonable? determine are best, and would not have
Agreements between the Secretary of Are the cost estimates accurate? a significant effect on any sector of the
the Interior and the Governor of the 4. Would the requirement to install economy.
State of Alaska. Under existing Section flare/vent meters pose a safety hazard by (2) The proposed rule would not
7 Agreements, oil and gas reserves restricting flow during emergency create a serious inconsistency or
underlying a common geologic structure facility blowdowns, or are accurate otherwise interfere with action taken or
must be unitized and the allocation of meters (such as ultrasonic meters) planned by another agency because
production between Federal and State available that do not impede gas flow? MMS is the only Federal government
leases for royalty payment must be 5. Should MMS require operators to agency directly involved in setting
based on recoverable oil and gas. Under flare natural gas instead of venting it, production requirements for the
agreement with the State, this under approved flaring and venting offshore oil and natural gas industry.
determination will be based on reservoir conditions? This question is based on a (3) This proposed rule would not alter
performance following completion of recommendation from the GAO report the budgetary effects of entitlements,
the development drilling program and on flaring and venting natural gas, and grants, user fees or loan programs, or the
sustained production. Annual reservoir reflects concerns about the amount of rights and obligations of their recipients.
(4) This proposed rule would not raise requirement to install flare/vent meters some operators. Operators would be
novel legal or policy issues. There are would not produce an undue burden on required to install flare/vent meters on
some changes in production small companies, it was limited to those any facility that processes more than an
requirements in this proposal, but most facilities that process more than an average of 2,000 BOPD. MMS estimates
of the changes clarify existing MMS average of 2,000 BOPD. that 34 companies would have to install
requirements. Some may require MMS estimates that 34 companies meters on 112 facilities at an average
additional paperwork for the operators. would have to install meters on 112 cost of $77,000 per facility and a total
Since the basic production requirements facilities at an average cost of $77,000 cost to industry of $8,624,000 (112 ×
are not changed, and restrictions on per facility and a total cost to industry $77,000 = $8,624,000).
production rates are decreased, this of $8,624,000 (112 × $77,000 = b. Would not cause a major increase
proposed rule should not raise novel $8,624,000). Of those, nine companies in costs or prices for consumers,
legal or policy issues. are considered small businesses, based individual industries, Federal, State, or
on the NAICS. These nine companies local government agencies, or
Regulatory Flexibility Act (RFA) represent only 7 percent of the 130 geographic regions.
The Department of the Interior operators on the OCS. We estimate that In most cases, this proposed rule
certifies that this proposed rule would seven of these nine companies would would eliminate the requirement for
not have a significant economic effect need to install meters on one facility operators to set limits on production
on a substantial number of small entities each; one company would need to rates, allowing the operators to
as defined under the RFA (5 U.S.C. 601 install meters on two facilities; and one determine the best rate to produce their
et seq.). An initial Regulatory Flexibility company would need to install meters reservoirs. The limits on burning,
Analysis is not required. Accordingly, a on three facilities. This represents an flaring, and venting are clearer. These
Small Entity Compliance Guide is not average cost of $105,875 for each of the limits would encourage conservation of
required. small companies (11 facilities × our natural resources, without putting
This rule applies to all lessees $77,000/9 companies). The average cost undue production restrictions on
operating on the OCS. Lessees fall under to non small companies would be operators. There would be a new
the Small Business Administration’s $311,080 per company (101 facilities × requirement to install meters on
North American Industry Classification $77,000/25 companies). In addition, this facilities that process more than an
System (NAICS) code 211111, Crude does not represent an unfair burden to average of 2,000 BOPD. As discussed
Petroleum and Natural Gas Extraction. small companies because the cost of above, this requirement would not
Under this NAICS code, companies with these meters is small in comparison to significantly increase the cost of doing
less than 500 employees are considered the revenues generated by the amount of business offshore.
small businesses. MMS estimates that oil processed by those facilities. c. Would not have significant adverse
130 lessees explore for and produce oil Your comments are important. The effects on competition, employment,
and gas on the OCS; approximately 70 Small Business and Agriculture investment, productivity, innovation, or
percent of them (91 companies) fall into Regulatory Enforcement Ombudsman the ability of U.S.-based enterprises to
the small business category. The and 10 Regional Fairness Boards were compete with foreign-based enterprises.
proposed regulation would therefore established to receive comments from This proposed rule would eliminate the
affect a substantial number of small small businesses about Federal agency requirement for operators to set limits
entities. However, we have determined enforcement actions. The Ombudsman on production rates, allowing the
that it would not have a significant will annually evaluate the enforcement operators to determine the best rate to
economic effect on these small entities. activities and rate each agency’s produce their reservoirs. There are
One new requirement that would responsiveness to small business. If you clearer limits on burning, flaring, and
impose a cost to operators is a wish to comment on the actions of venting, which would encourage
requirement to install flaring/venting MMS, call 1–888–734–3247. You may conservation of our natural resources.
meters on all facilities that process more comment to the Small Business
Administration without fear of Unfunded Mandates Reform Act
than 2,000 BOPD. The GAO report on (UMRA) of 1995
flaring and venting natural gas, released retaliation. Disciplinary action for
in July 2004, recommended that MMS retaliation by an MMS employee may This proposed rule would not impose
require these meters to improve include suspension or termination from an unfunded mandate on State, local, or
oversight. MMS agrees with this employment with the DOI. tribal governments or the private sector
recommendation. MMS regulations of more than $100 million per year. The
Small Business Regulatory Enforcement proposed rule would not have a
allow flaring and venting in very limited Fairness Act (SBREFA)
circumstances. These meters would significant or unique effect on State,
help MMS: The proposed rule is not a major rule local, or tribal governments or the
• Verify the amounts of natural gas under SBREFA (5 U.S.C. 804(2)). This private sector. A statement containing
that operators flare or vent into the proposed rule: the information required by UMRA (2
environment; a. Would not have an annual effect on U.S.C. 1531 et seq.) is not required. This
• Prevent waste of resources; the economy of $100 million or more. is because the proposal would not affect
• Collect the proper royalties on This proposed rule revises the State, local, or tribal governments, and
avoidably flared or vented gas; requirements for oil and gas production. the effect on the private sector is small.
• Determine if an operator is violating The changes would not have an impact
on the economy or an economic sector, Takings Implication Assessment
MMS regulations; and
• Assess the impacts on the productivity, jobs, the environment, or (Executive Order 12630)
environment. other units of government. Most of the The proposed rule is not a
In determining the criteria for which new requirements are paperwork governmental action capable of
facilities must install the meters, MMS requirements, and would not add interference with constitutionally
considered the cost of the meters and significant time to development and protected property rights. Thus, MMS
the amount of production needed to production processes. One new did not need to prepare a Takings
justify the cost. To ensure that the requirement would add new costs for Implication Assessment according to
E.O. 12630, Governmental Actions and in your comments. You may obtain a minor changes to the information
Interference with Constitutionally copy of the supporting statement for the collection burden. The changes are:
Protected Property Rights. new collection of information by • Report to Minerals Revenue
contacting the Bureau’s Information Management (MRM) measured gas
Federalism (Executive Order 13132)
Collection Clearance Officer at (202) flaring or venting and liquid
With respect to E.O. 13132, this 208–7744. hydrocarbon burning. Submit periodic
proposed rule would not have reports of volumes of oil, gas, or other
The PRA provides that an agency may
federalism implications. This proposed substances injected, produced, or
not conduct or sponsor, and a person is
rule would not substantially and produced for a second time. Both
not required to respond to, a collection
directly affect the relationship between requirements and burdens are now
of information unless it displays a
the Federal and State governments. To reported to MRM and their respective
the extent that State and local currently valid OMB control number.
OMB is required to make a decision burdens are covered under OMB Control
governments have a role in OCS Number 1010–0139 (–154 burden
activities, this proposed rule would not concerning the collection of information
contained in these proposed regulations hours);
affect that role. • Request Regional Supervisor
MMS has the authority to regulate 30–60 days after publication of this
document in the Federal Register. approval for emitting more than 15 lbs.
offshore oil and gas production. State of SO2 (+10 burden hours);
governments do not have authority over Therefore, a comment to OMB is best
assured of having its full effect if OMB • Submit to Regional Supervisor air
offshore production in Federal waters.
receives it by April 5, 2007. This does quality modeling analysis report. The
Civil Justice Reform (Executive Order not affect the deadline for the public to proposed burden hours represent an
12988) comment to MMS on the proposed adjustment to a current requirement for
With respect to E.O. 12988, the Office regulations. information that was not previously
of the Solicitor has determined that the collected (+40 burden hours);
The title of the collection of
proposed rule would not unduly burden • For Alaska Region Only: Submit to
information for the rule is ‘‘30 CFR 250,
the judicial system and does not meet Regional Supervisor annual reservoir
Subpart K, Oil and Gas Production
the requirements of sections 3(a) and management report and supporting
Requirements.’’ The proposed
3(b)(2) of the Order. MMS drafted this information. (At this time, the state
regulations concern oil and gas
proposed rule in plain language to requires the same information and MMS
production requirements, and the
provide clear standards. We consulted receives a copy). Alaska has started
information is used in our efforts to
with the Department of the Interior’s producing in state waters. If new
conserve natural resources, prevent
Office of the Solicitor throughout the development occurs in Federal waters, a
waste, and protect correlative rights,
drafting process for the same reasons. minimal burden for submitting an
including the government’s royalty
annual reservoir management report,
Paperwork Reduction Act (PRA) interest.
and burden hours for annual revisions
The proposed rule contains a Respondents are the approximately are being added (+161 burden hours).
collection of information that has been 130 Federal oil and gas and sulphur • Maintain meter records for detailing
submitted to OMB for review and lessees. Responses to this collection are gas flaring or venting, and liquid
approval under § 3507(d) of the PRA. As mandatory. The frequency of response is hydrocarbon burning for 6 years. These
part of our continuing effort to reduce on occasion, monthly, semi-annually, new burden requirements do not add
paperwork and respondent burdens, annually, and as a result of situations additional burden hours.
MMS invites the public and other encountered depending upon the • General departure or alternative
Federal agencies to comment on any requirement. The information collection compliance requests (+5 burden hours).
aspect of the reporting and (IC) does not include questions of a The currently approved information
recordkeeping burden. You may submit sensitive nature. MMS will protect collection for this subpart (1010–0041)
your comments on the information proprietary information according to the will be superseded by this collection
collection aspects of this proposed rule Freedom of Information Act (5 U.S.C. when final regulations take effect.
directly to the Office of Management 552) and its implementing regulations Currently, regulations covered under
and Budget (OMB), Office of (43 CFR part 2), and 30 CFR 250.196, OMB Control Number 1010–0041 have
Information and Regulatory Affairs, ‘‘Data and information to be made 43,065 annual burden hours. MMS
OMB Attention: Desk Officer for the available to the public,’’ and 30 CFR estimates the total annual reporting and
Department of the Interior via OMB e- part 252, ‘‘OCS Oil and Gas Information recordkeeping ‘‘hour’’ burden for the
mail: (OIRA_DOCKET@omb.eop.gov); or Program.’’ Proprietary information proposed rule to be 43,127 hours; this
by fax (202) 395–6566; identify with concerning geological and geophysical is an increase of 62 burden hours. With
1010–AD12. Send a copy of your data will be protected according to 43 the exception of the recordkeeping
comments to the Rules Processing Team U.S.C. 1352. requirement changes and the items
(RPT), Attn: Rules Comments; 381 Elden The collection of information required identified as ‘‘new’’ in the following
Street, MS–4024; Herndon, Virginia by the current subpart K regulations is chart, the burden estimates shown are
20170–4817. Please reference ‘‘Oil and approved under OMB Control Number those that are estimated for the current
Gas Production Requirements—AD12’’ 1010–0041. The proposed rule imposes subpart K regulations.
Fee/non-hour cost
30 CFR 250 Subpart K Reporting & recordkeeping requirement Average number of Annual burden
Hour burden annual responses hours
1151(a), (c); 1155; 1165; Submit form MMS–126 and supporting information .. 3 1,325 forms ...................... 3,975
1166(c); 1167.
Submit form MMS–127 and supporting information .. 2.2 2,189 forms ...................... 4,816
Fee/non-hour cost
Submit form MMS–128 and supporting information .. 0.1—3 13,000 GOM forms .......... 1,336*
600 POCS forms
1151(b) .............................. Request extension of time to submit results of semi- 0.5 37 requests ...................... 19
annual well test.
1152(b), (c) ....................... Obtain Regional Supervisor approval to conduct well 0.5 37 requests ...................... 19
testing using alternative procedures; conduct
tests/retests to establish proper MPR or MER;
conduct multipoint backpressure test for open flow
potential.
1152(d) .............................. Provide advance notice of time and date of well 0.5 10 notices ........................ 5
tests.
1153 .................................. Submit results of all static bottomhole pressure sur- 14 1,270 surveys .................. 17,780
veys obtained by lessee using form MMS–140. 1 120 survey waivers .......... 120
Request departure requirement w/justification to
Regional Supervisor; submit with Form MMS–140
and supporting information.
1154; 1167 ........................ Request reclassification of reservoir for Regional 6 20 requests ...................... 120
Supervisor approval and submit supporting infor-
mation.
1156; 1167 ........................ Request approval to produce within 500 feet of a 5 50 requests ...................... 250
unit or lease line and submit supporting informa-
tion; notify operators; provide proof of date to Re-
gional Supervisor.
3,300 × 50 requests = $165,000
1157; 1167 ........................ Request approval to produce gas cap of a sensitive 12 125 requests .................... 1,500
reservoir and submit supporting information; ob-
tain approval to produce gas from an oil reservoir
with an associated gas cap.
$4,200 × 125 requests = $525,000
1158; 1167 ........................ Submit request to downhole commingle hydro- 6 119 applications ............... 714
carbons and supporting information; notify opera-
tors; provide proof of date to Regional Supervisor.
$4,900 × 119 applications = $583,100
1160; 1161 ........................ Request Regional Supervisor approval/inform to 0.5 1,007 requests ................. 504
flare or vent oil-well gas or gas-well gas/exceed
volume; submit documentation.
1162; 1163(e) .................... Request approval to burn produced liquid hydro- 0.5 60 requests ...................... 30
carbons; submit documentation.
NEW 1163 ......................... Initial purchase and install gas meters to measure 0 112 ................................... 0
the amount of gas flared or vented. This is a non-
hour cost burden.
112 meters @ $77,000 ea = $8,624,000
NEW 1163(b); 1165(c) ...... Report to MRM measured gas flaring or venting and liquid hydrocarbon burning—burden covered 0
under 1010–0139
NEW 1164(b)(1) ................ Request Regional Supervisor approval for emitting 0.5 20 requests ...................... 10
more than 15 lbs. of SO2.
1164(b)(2) ......................... H2S Contingency, Exploration, or Development and Production Plans—burden covered under 0
1010–0141 and 1010–0151
NEW 1164(b)(3) ................ Submit to Regional Supervisor air quality modeling 40 1 modeling analysis ......... 40
analysis.
1164(c) .............................. Submit monthly reports of flared or vented gas con- 2 3 operators × 12 mos. = 72
taining H2S. 36.
1165 .................................. Submit proposed plan for enhanced recovery oper- 12 27 plans ........................... 324
ations.
1165(c) .............................. Submit periodic reports of volumes of oil, gas, or other substances injected, produced, or pro- 0
duced for a second time—burden covered under OMB approval 1010–0139
Fee/non-hour cost
NEW 1166 ......................... Alaska Region only: submit to Regional Supervisor 1 1 (required by State, 1
annual reservoir management report and sup- MMS gets copy).
porting information. 1 new develop not State
100 lands. 100
20 3 annual revisions ........... 60

NEW 1150–1167 ............... General departure or alternative compliance re- 1 5 ....................................... 5
quests not specifically covered elsewhere in sub-
part K.
Reporting Subtotal 20,175 .............................. 31,800
1163(c), (d) ....................... Maintain records for 6 years detailing gas flaring or 13 869 platforms ................... 11,297
venting; maintain meter records and provide cop-
ies if requested.
1163(c) .............................. Maintain records for 6 years detailing liquid hydro- 0.5 60 occurrences ................ 30
carbon burning; maintain meter records and pro-
vide copies if requested.
Recordkeeping Subtotal 929 ................................... 11,327
Total Burden 21,104 .............................. 43,127
$9,897,100
* Reporting burden for this form is estimated to average 0.1 to 3 hours per form depending on the number of well tests reported, including the
time for reviewing instructions, gathering and maintaining data, and completing and reviewing the form. See breakdown for form MMS–128
above.
(a) MMS specifically solicits the methods you use to estimate major Energy Supply, Distribution, or Use
comments on the following questions: cost factors, including system and (Executive Order 13211)
(1) Is the proposed collection of technology acquisition, expected useful Executive Order 13211 requires the
information necessary for MMS to life of capital equipment, discount agency to prepare a Statement of Energy
properly perform its functions, and will rate(s), and the period over which you Effects when it takes a regulatory action
it be useful? incur costs. Capital and start-up costs that is identified as a significant energy
(2) Are the estimates of the burden include, among other items, computers action. This proposed rule is not a
hours of the proposed collection and software you purchase to prepare significant energy action, and therefore
reasonable? for collecting information; monitoring, would not require a Statement of Energy
(3) Do you have any suggestions that sampling, drilling, and testing Effects because it:
would enhance the quality, clarity, or equipment; and record storage facilities. a. Is not a significant regulatory action
usefulness of the information to be Generally, our estimates should not under E.O. 12866,
collected? include equipment or services b. Is not likely to have a significant
(4) Is there a way to minimize the purchased: before October 1, 1995; to adverse effect on the supply,
information collection burden on those comply with requirements not distribution, or use of energy, and
who are to respond, including the use associated with the information c. Has not been designated by the
of appropriate automated electronic, collection; for reasons other than to Administrator of the Office of
mechanical, or other forms of provide information or keep records for Information and Regulatory Affairs,
information technology? the Government; or as part of customary OMB, as a significant energy action.
(b) In addition, the PRA requires and usual business or private practices.
agencies to estimate the total annual Consultation With Indian Tribes
reporting and recordkeeping ‘‘non-hour National Environmental Policy Act (Executive Order 13175)
cost’’ burden resulting from the (NEPA) of 1969
Under the criteria in E.O. 13175, we
collection of information. Other than the We analyzed this proposed rule in have evaluated this proposed rule and
cost recovery fees listed in the burden accordance with the criteria of the determined that it has no potential
table, and the fee for installing flaring/ NEPA and 516 Departmental Manual 6, effects on federally recognized Indian
venting meters (§ 250.1163), we have Appendix 10.4C, ‘‘issuance, and/or tribes. There are no Indian or tribal
not identified any other costs, and we modification of regulations.’’ MMS lands on the OCS.
solicit your comments on this item. For completed a Categorical Exclusion
reporting and recordkeeping only, your Review (CER) for this action on May 31, Clarity of This Regulation (Executive
response should split the cost estimate 2005, and concluded: ‘‘The proposed Order 12866)
into two components: (1) Total capital rulemaking does not represent an Executive Order 12866 requires each
and startup cost component and (2) exception to the established criteria for agency to write regulations that are easy
annual operation, maintenance, and categorical exclusion. Therefore, to understand. MMS invites your
purchase of services components. Your preparation of an environmental comments on how to make this
estimates should consider the costs to document will not be required, and proposed rule easier to understand,
generate, maintain, disclose or provide further documentation of this CER is not including answers to questions such as
the information. You should describe required.’’ the following:
(1) Are the requirements in the protection, Government contracts, add in alphabetical order definitions for
proposed rule clearly stated? Investigations, Oil and gas exploration, ‘‘Flaring’’ and ‘‘Venting’’ to read as
(2) Does the proposed rule contain Penalties, Pipelines, Public lands— follows:
technical language or jargon that mineral resources, Public lands—rights-
of-way, Reporting and recordkeeping § 250.105 Definitions.
interferes with its clarity?
(3) Does the format of the proposed requirements, Sulphur. * * * * *
rule (grouping and order of sections, use Dated: January 31, 2007. Flaring means the burning of gas in
of headings, paragraphs, etc.) aid or C. Stephen Allred, the field as it is released into the
reduce its clarity? Assistant Secretary—Land and Minerals
atmosphere.
(4) Is the description of the proposed Management. * * * * *
rule in the ‘‘Supplementary For the reasons stated in the Sensitive reservoir means a reservoir
Information’’ section of this preamble preamble, Minerals Management in which high reservoir production rates
helpful in understanding the rule? Service (MMS) proposes to revise 30 will decrease ultimate recovery.
Send a copy of any comments that CFR part 250 as follows: * * * * *
concern how we could make this
proposed rule easier to understand to: PART 250—OIL AND GAS AND Venting means the release of gas into
Office of Regulatory Affairs; Department SULPHUR OPERATIONS IN THE the atmosphere without igniting it. This
of the Interior, Room 7229; 1849 C OUTER CONTINENTAL SHELF includes gas that is released underwater
Street, NW., Washington, DC 20240. and bubbles to the atmosphere.
1. The authority citation for part 250 * * * * *
You may also e-mail the comments to
continues to read as follows:
this address: Exsec@ios.doi.gov. 3. In § 250.125, revise the table in
Authority: 43 U.S.C. 1331 et seq.; 31 U.S.C. paragraph (a) to read as follows:
List of Subjects in 30 CFR Part 250 9701.
Continental shelf, Environmental 2. Amend § 250.105 to revise the § 250.125 Service fees.
impact statements, Environmental definition of ‘‘Sensitive reservoir’’ and (a) * * *
SERVICE FEE TABLE

Service—processing of the following: Fee amount 30 CFR citation
Change in Designation of Operator ................... $150 ................................................................. § 250.143.

Suspension of Operations/Suspension of Pro- $1,800 .............................................................. § 250.171.
duction (SOO/SOP) Request.
Exploration Plan (EP) ......................................... $3,250 for each surface location, no fee for § 250.211.
revisions.
Development and Production Plan (DPP) or $3,750 for each well proposed, no fee for re- § 250.241(e).
Development Operations Coordination Docu- visions.
ment (DOCD).
Deepwater Operations Plan ............................... $3,150 .............................................................. § 250.292(p).
Conservation Information Document .................. $24,200 ............................................................ § 250.296(a).
Application for Permit to Drill (APD; Form $1,850.
MMS–123).
Initial applications only, no fee for revisions § 250.410(d); § 250.411; § 250.460;
§ 250.513(b); § 250.515; § 250.1605;
§ 250.1617(a); § 250.1622.
Application for Permit to Modify (APM; Form $110 ................................................................. § 250.460; § 250.465(b); § 250.513(b);
MMS–124). § 250.515; § 250.613(b); § 250.615;
§ 250.1618(a); § 250.1622; § 250.1704(g).
New Facility Production Safety System Applica- $4,750.
tion for facility with more than 125 compo-
nents.
A component is a piece of equipment or ancil- § 250.802(e).
lary system that is protected by one or
more of the safety devices required by API
RP 14C (incorporated by reference as
specified in § 250.198)
(Additional fee of $12,500 will be charged if
MMS deems it necessary to visit a facility
offshore; and $6,500 to visit a facility in a
shipyard)
New Facility Production Safety System Applica- $1,150 .............................................................. § 250.802(e).
tion for facility with 25–125 components. (Additional fee of $7,850 will be charged if
MMS deems it necessary to visit a facility
offshore; and $4,500 to visit a facility in a
shipyard)
New Facility Production Safety System Applica- $570 ................................................................. § 250.802(e).

tion for facility with fewer than 25 compo-
nents.
Production Safety System Application—Modi- $530 ................................................................. § 250.802(e).
fication with more than 125 components re-
viewed.
Production Safety System Application—Modi- $190 ................................................................. § 250.802(e).
fication with 25–125 components reviewed.
SERVICE FEE TABLE—Continued

Service—processing of the following: Fee amount 30 CFR citation
Production Safety System Application—Modi- $80 ................................................................... § 250.802(e).

fication with fewer than 25 components re-
viewed.
Platform Application—Installation—under the $19,900 ............................................................ § 250.905(k).
Platform Verification Program.
Platform Application—Installation—Fixed Struc- $2,850 .............................................................. § 250.905(k).
ture Under the Platform Approval Program.
Platform Application—Installation—Caisson/ $1,450 .............................................................. § 250.905(k).
Well Protector.
Platform Application—Modification/Repair ......... $3,400 .............................................................. § 250.905(k).
New Pipeline Application (Lease Term) ............. $3,100 .............................................................. § 250.1000(b).
Pipeline Application—Modification (Lease Term) $1,800 .............................................................. § 250.1000(b).
Pipeline Application—Modification (ROW) ......... $3,650 .............................................................. § 250.1000(b).
Pipeline Repair Notification ................................ $340 ................................................................. § 250.1008(e).
Pipeline Right-of-Way (ROW) Grant Application $2,350 .............................................................. § 250.1015.
Pipeline Conversion of Lease Term to ROW ..... $200 ................................................................. § 250.1015.
Pipeline ROW Assignment ................................. $170 ................................................................. § 250.1018.
500 Feet From Lease/Unit Line Production Re- $3,300 .............................................................. § 250.1156.
quest.
Gas Cap Production Request ............................ $4,200 .............................................................. § 250.1157.
Downhole Commingling Request ....................... $4,900 .............................................................. § 250.1158.
Complex Surface Commingling and Measure- $3,550 .............................................................. § 250.1202(a); § 250.1203(b); § 250.1204(a).
ment Application.
Simple Surface Commingling and Measurement $1,200 .............................................................. § 250.1202(a); § 250.1203(b); § 250.1204(a).
Application.
Voluntary Unitization Proposal or Unit Expan- $10,700 ............................................................ § 250.1303.
sion.
Unitization Revision ............................................ $760 ................................................................. § 250.1303.
Application to Remove a Platform or Other Fa- $4,100 .............................................................. § 250.1727.
cility.
Application to Decommission a Pipeline (Lease $1,000 .............................................................. § 250.1751(a) or § 250.1752(a).
Term).
Application to Decommission a Pipeline (ROW) $1,900 .............................................................. § 250.1751(a) or § 250.1752(a).
* * * * * 250.1157 How do I receive approval to Special Alaska OCS Region Requirements

produce gas from an oil reservoir with an 250.1166 What additional reporting is
4. Revise subpart K to read as follows:
associated gas cap? required for developments in the Alaska
Subpart K—Oil and Gas Production 250.1158 How do I receive approval to OCS Region?
Requirements downhole commingle hydrocarbons?
Information Needed with Forms and for
General Production Rates Approvals
Sec. 250.1159 May the Regional Supervisor limit 250.1167 What information must I submit
250.1150 What are the general reservoir my well or reservoir production rates? with forms and for approvals?
production requirements?
Flaring, Venting, and Burning Hydrocarbons Subpart K—Oil and Gas Production
Well Tests and Surveys 250.1160 When may I flare or vent gas? Requirements
250.1151 How often must I conduct well 250.1161 When may I flare or vent gas for
General
production tests? extended periods of time?
250.1152 How do I conduct well tests? 250.1162 When may I burn produced liquid § 250.1150 What are the general reservoir
250.1153 When must I conduct a static hydrocarbons? production requirements?
bottomhole pressure survey? 250.1163 How must I measure gas flaring or You must produce wells and
venting volumes and liquid hydrocarbon reservoirs at rates that provide for
Classifying Reservoirs
burning volumes and what records must economic development without
250.1154 How do I determine if my I maintain? harming ultimate recovery and without
reservoir is sensitive? 250.1164 What are the requirements for adversely affecting correlative rights.
250.1155 What information must I submit flaring or venting gas containing H2S?
for sensitive reservoirs? Well Tests and Surveys
Enhanced Recovery
Approvals Prior to Production § 250.1151 How often must I conduct well
250.1165 What must I do for enhanced
250.1156 What steps must I take to receive production tests?
recovery operations?
(a) You must conduct well production
approval to produce within 500 feet of a

unit or lease line? tests as shown in the following table:
You must conduct: And you must submit to the Regional Supervisor:
(1) A well-flow potential test on all new, recompleted, or reworked well Form MMS–126, Well Potential Test Report, along with the supporting
completions within 30 days of the date of first continuous production. data as listed in the table in § 250.1167, within 15 days after the end
of the test period.
You must conduct: And you must submit to the Regional Supervisor:
(2) At least one well test during a calendar half-year for each producing Results on Form MMS–128, Semiannual Well Test Report, of the most
completion. recent well test obtained. This must be submitted within 45 days
after the end of the calendar half-year
(b) You may request an extension reworking, or treatment operations tests and complete them within the
from the Regional Supervisor if you before you start a well test; specified time period:
cannot submit the results of a (2) Produce the well completion (1) A retest or a prolonged test of a
semiannual well test within the under stabilized rate conditions for at well completion if it is determined to be
specified time. least 6 consecutive hours before necessary for the proper establishment
(c) You must submit an original and beginning the test period; of a Maximum Production Rate (MPR)
one copy of the form required by (3) Conduct the test for at least 4 or a Maximum Efficient Rate (MER); and
paragraph (a) of this section, as listed in consecutive hours; (2) A multipoint back-pressure test to
the table in § 250.1167. You must (4) Adjust measured gas volumes to determine the theoretical open-flow
include one public information copy the standard conditions of 14.73 pounds potential of a gas well.
with each submittal in accordance with per square inch absolute (psia) and 60°F (d) An MMS representative may
§§ 250.190 and 250.196, and mark that for all tests; and witness any well test. Upon request, you
copy ‘‘Public Information.’’ (5) Use measured specific gravity must provide advance notice to the
values to calculate gas volumes. Regional Supervisor of the times and
§ 250.1152 How do I conduct well tests? (b) You may request approval from dates of well tests.
(a) When you conduct well tests you the Regional Supervisor to conduct a
must: well test using alternative procedures if § 250.1153 When must I conduct a static
(1) Recover fluid from the well you can demonstrate test reliability bottomhole pressure survey?
completion equivalent to the amount of under those procedures. (a) You must conduct a static
fluid introduced into the formation (c) The Regional Supervisor may also bottomhole pressure survey under the
during completion, recompletion, require you to conduct the following following conditions:
If you have: Then you must conduct:
(1) A new producing reservoir .................................................................. A static bottomhole pressure survey within 90 days after the date of
first continuous production.
(2) A reservoir with three or more producing completions ...................... Annual static bottomhole pressure surveys in a sufficient number of
key wells to establish an average reservoir pressure. The Regional
Supervisor may require that bottomhole pressure surveys be per-
formed on specific wells.
(b) Your bottomhole pressure survey Classifying Reservoirs information, as listed in the table in
must meet the following requirements: § 250.1167, with your request.
§ 250.1154 How do I determine if my
(1) You must shut-in the well for a (e) If information indicates that a
reservoir is sensitive?
minimum period of 4 hours to ensure reservoir previously classified as
(a) You must determine whether each sensitive is now non-sensitive, you may
stabilized conditions; and reservoir is sensitive. You must classify submit a request to the Regional
(2) The bottomhole pressure survey the reservoir as sensitive if: Supervisor to reclassify the reservoir.
must consist of a pressure measurement (1) Under initial conditions it is an oil You must include supporting
at mid-perforation, and pressure reservoir with an associated gas cap; information, as listed in the table in
measurements and gradient information (2) At any time there are near-critical § 250.1167, with your request.
for at least four gradient stops coming fluids; or
out of the hole. § 250.1155 What information must I submit
(3) The reservoir is undergoing for sensitive reservoirs?
(c) You must submit to the Regional secondary or tertiary recovery. You must submit an original and
Supervisor the results of all static (b) For the purposes of this subpart, three copies of Form MMS–127 and
bottomhole pressure surveys on Form near-critical fluids are those fluids that supporting information, as listed in the
MMS–140, Bottomhole Pressure Survey occur in high temperature, high- table in § 250.1167 to the Regional
Report, within 60 days after the date of pressure reservoirs where it is not Supervisor. You must include one
the survey. possible to define the liquid-gas contact public information copy with each
(d) The Regional Supervisor may or fluids in reservoirs that are near submittal in accordance with §§ 250.190
grant a departure from the requirement bubble point or dew point conditions. and 250.196, and mark that copy
to run a static bottomhole pressure (c) The Regional Supervisor may ‘‘Public Information.’’ You must submit
survey. You must request a departure by reclassify a reservoir when available this information:
letter, along with Form MMS–140, information warrants reclassification. (a) Within 45 days after beginning
Bottomhole Pressure Survey Report. (d) If available information indicates production from the reservoir or
You must include sufficient justification that a reservoir previously classified as discovering that it is sensitive;
to support the departure request. non-sensitive is now sensitive, you must (b) At least once during the calendar
submit a request to the Regional year;
Supervisor to reclassify the reservoir. (c) Within 45 days after you revise
You must include supporting reservoir parameters; and
(d) Within 45 days after the Regional and bottom of the completion or target intend to downhole commingle the
Supervisor classifies the reservoir as completion; reservoirs. Your request for approval of
sensitive under § 250.1154(c). (3) The distance from the completion downhole commingling must include
or target completion to the unit or lease proof of the date of this notification. The
Approvals Prior to Production line at its nearest point; and notified operators have 30 days after
§ 250.1156 What steps must I take to (4) A statement indicating whether or notification to provide the Regional
receive approval to produce within 500 feet not it will be a high-capacity completion Supervisor with letters of acceptance or
of a unit or lease line? having a perforated or open hole objection. If the notified operators do
(a) You must obtain approval from the interval greater than 150 feet measured not respond within the specified period,
Regional Supervisor before you start depth. the Regional Supervisor will assume the
producing from a well that has any § 250.1157 How do I receive approval to operators do not object and proceed
portion of the completed interval less produce gas from an oil reservoir with an with a decision.
than 500 feet from a unit or lease line. associated gas cap?
Submit to MMS the service fee listed in Production Rates
You must request and receive written
§ 250.125 and the Regional Supervisor approval from the Regional Supervisor § 250.1159 May the Regional Supervisor
will determine whether approval of before producing gas from each limit my well or reservoir production rates?
your request will maximize ultimate completion in an oil reservoir that is
recovery, avoids the waste of natural (a) The Regional Supervisor may set a
known to have an associated gas cap. If Maximum Production Rate (MPR) for a
resources or whether it is necessary to the oil reservoir is not initially known
protect correlative rights. You do not producing well completion, or set a
to have an associated gas cap, but your Maximum Efficient Rate (MER) for a
need to obtain approval if the adjacent oil well begins to show characteristics of
leases or units have the same unit, lease, reservoir, or both, if the Regional
a gas well, you must request and receive Supervisor determines that an excessive
and royalty interests as the lease or unit written approval from the Regional
you plan to produce. You do not need production rate could harm ultimate
Supervisor to continue producing the recovery. An MPR or MER will be based
to obtain approval if the adjacent block well. You must include the service fee
is unleased. on well tests and any limitations
listed in § 250.125 and the supporting imposed by well and surface equipment,
(b) You must notify the operator(s) of information, as listed in the table in
adjacent property(ies) that are within sand production, reservoir sensitivity,
§ 250.1167, with your request.
500 feet of the completion, if the gas-oil and water-oil ratios, location of
adjacent acreage is a leased block in the § 250.1158 How do I receive approval to perforated intervals, and prudent
Federal OCS. You must provide the downhole commingle hydrocarbons? operating practices.
Regional Supervisor proof of the date of (a) Before you perforate a well, you (b) If the Regional Supervisor sets an
the notification. The operators of the must request and receive approval from MPR for a producing well completion,
adjacent properties have 30 days after the Regional Supervisor to commingle or an MER for a reservoir, you may not
receiving the notification to provide the hydrocarbons produced from multiple exceed those rates except due to normal
Regional Supervisor letters of reservoirs within a common wellbore. variations and fluctuations in
acceptance or objection. If an adjacent The Regional Supervisor will determine production rates, as set by the Regional
operator does not respond within 30 whether your request maximizes Supervisor.
days, the Regional Supervisor will ultimate recovery and avoids the waste
presume there are no objections and of natural resources. You must include Flaring, Venting, and Burning
proceed with a decision. The the service fee listed in § 250.125 and Hydrocarbons
notification must include: the supporting information, as listed in § 250.1160 When may I flare or vent gas?
(1) The well name; the table in § 250.1167, with your
(2) The rectangular coordinates (x, y) request. (a) You must receive approval from
of the location of the top and bottom of (b) If one or more of the commingled the Regional Supervisor to flare or vent
the completion or target completion reservoirs is a competitive reservoir, you oil-well gas or gas-well gas at your
reference to the North American Datum must notify the operators of all leases facility, except in the following
1983, and the subsea depths of the top that contain the reservoir that you situations:
Condition Additional requirements
(1) When the gas is lease use gas (produced natural gas which is used The volume of gas flared or vented may not exceed the amount nec-
on or for the benefit of lease operations such as gas used to operate essary for its intended purpose. Burning waste products may require
production facilities) or is used as an additive necessary to burn approval under other regulations.
waste products, such as H2S.
(2) During the restart of a facility that was shut in because of weather Flaring or venting may not exceed 48 cumulative hours without Re-
conditions, such as a hurricane. gional Supervisor approval.
(3) During the blow down of transportation pipelines downstream of the (i) You must report the location, time, flare/vent volume, and reason for
royalty meter. flaring/venting to the Regional Supervisor in writing within 72 hours
after the incident is over.
(ii) Additional approval may be required under subparts H and J of this
part.
(4) During the unloading or cleaning of a well, drill-stem testing, pro- You may not exceed 48 cumulative hours of flaring or venting per test-
duction testing, other well-evaluation testing, or the necessary blow ing operation on a single completion without Regional Supervisor ap-
down to perform these procedures. proval.
(5) When properly working equipment yields flash gas (natural gas re- You may not flare or vent more than an average 50 MCF per day dur-
leased from liquid hydrocarbons as a result of a decrease in pres- ing any calendar month without Regional Supervisor approval.
sure, an increase in temperature, or both) from storage vessels or
other low-pressure production vessels, and you cannot economically
recover this flash gas.
Condition Additional requirements
(6) When the equipment works properly but there is a temporary upset (i) For oil-well gas and gas-well flash gas (natural gas released from
condition, such as a hydrate or paraffin plug. condensate as a result of a decrease in pressure, an increase in
temperature, or both), you may not exceed 48 continuous hours of
flaring or venting without Regional Supervisor approval.
(ii) For primary gas-well gas (natural gas from a gas well completion
that is at or near its wellhead pressure; this does not include flash
gas), you may not exceed 2 continuous hours of flaring or venting
without Regional Supervisor approval.
(iii) You may not exceed 144 cumulative hours of flaring or venting dur-
ing a calendar month without Regional Supervisor approval.
(7) When equipment fails to work properly, including equipment mainte- (i) For oil-well gas and gas-well flash gas, you may not exceed 48 con-
nance and repair, or when you must relieve system pressures. tinuous hours of flaring or venting without Regional Supervisor ap-
proval.
(ii) For primary gas-well gas, you may not exceed 2 continuous hours
of flaring or venting without Regional Supervisor approval.
(iii) You may not exceed 144 cumulative hours of flaring or venting dur-
ing a calendar month without Regional Supervisor approval.
(iv) The continuous and cumulative hours allowed under this paragraph
may be counted separately from the hours under paragraph (a)(6) of
this section.
(b) You must inform the Regional Regional Supervisor approves your Regional Supervisor determines that
Supervisor and receive approval to flare request for one of the following reasons: you were negligent or could have
or vent gas before you exceed the (a) You initiate an action which, when avoided burning liquid hydrocarbons,
volume specified in your Development completed, will eliminate flaring and the hydrocarbons will be considered
and Production Plan submitted under venting; avoidably lost or wasted. You must pay
subpart B of this part, even if the flaring (b) You submit to the Regional royalties on the loss or waste, according
or venting does not require approval Supervisor an evaluation supported by to part 202 of this title. You must value
under paragraph (a) of this section. The engineering, geologic, and economic any liquid hydrocarbons avoidably lost
Regional Supervisor will determine data indicating that the oil and gas or wasted under the provisions of part
whether your proposed flaring or produced from the well(s) will not 206 of this title.
venting complies with air emission economically support the facilities
thresholds under subpart C of this part. necessary to sell the gas; or to use the § 250.1163 How must I measure gas flaring
gas on or for the benefit of, the lease; or or venting volumes and liquid hydrocarbon
(c) The Regional Supervisor may burning volumes and what records must I
establish alternative approval (c) The Regional Supervisor
determines that an improperly working maintain?
procedures to cover situations where
you cannot contact the MMS office, valve, pipe fitting, or similar component (a) If your facility processes more than
such as during non-office hours. results in flaring or venting of less than an average of 2,000 BOPD during
10 MCF per day, and that it is prudent [MONTH AND YEAR IN WHICH FINAL
(d) The Regional Supervisor may
to repair the leak at a later date. The RULE IS PUBLISHED], you must install
specify a volume limit, or a shorter time
Regional Supervisor may exempt this flare/vent meters within 120 days after
limit than specified elsewhere in this
flaring or venting from the time limits [THE MONTH AND YEAR IN WHICH
part, in order to prevent air quality
set in § 250.1160. THE FINAL RULE IS PUBLISHED]. If
degradation or loss of reserves.
your facility processes more than an
(e) The Regional Supervisor will § 250.1162 When may I burn produced
average of 2,000 BOPD during a
evaluate your request for gas flaring or liquid hydrocarbons?
calendar month after [MONTH AND
venting and determine if the loss of (a) You must request and receive YEAR IN WHICH FINAL RULE IS
hydrocarbons is due to negligence, or approval from the Regional Supervisor PUBLISHED], you must install flare/
could be avoided. to burn any produced liquid vent meters within 90 days after the end
(f) If you flare or vent gas without the hydrocarbons. The Regional Supervisor
of the month in which the average
required approval, or if the Regional may allow you to burn condensate if
amount of oil processed exceeds 2,000
Supervisor determines that you were you demonstrate that transporting it to
BOPD.
negligent or could have avoided flaring market or re-injecting it is not feasible
or venting the gas, the hydrocarbons or poses a significant risk of harm to (1) The flare/vent meters must
will be considered avoidably lost or offshore personnel or the environment. measure all flared and vented gas within
wasted. You must pay royalties on the In most cases, the Regional Supervisor 2 percent accuracy.
loss or waste, according to part 202 of will not allow you to burn more than (2) You must calibrate the meters
this title. You must value any gas or 300 barrels of condensate in total during regularly, in accordance with the
liquid hydrocarbons avoidably lost or unloading or cleaning of a well, drill- manufacturer’s recommendation, or at
wasted under the provisions of part 206 stem testing, production testing, or other least once every 6 months, whichever is
well-evaluation testing. shorter.
of this title.
(b) The Regional Supervisor will (b) You must report all hydrocarbons
§ 250.1161 When may I flare or vent gas evaluate your request for liquid produced from a well completion,
for extended periods of time? hydrocarbon burning, and determine if including all gas flared, gas vented, and
You may flare or vent oil-well gas and the loss of hydrocarbons is due to liquid hydrocarbons burned, to Minerals
gas-well flash gas for a period that the negligence or could be avoided. Revenue Management on Form MMS–
Regional Supervisor will specify, and (c) If you burn liquid hydrocarbons 4054 (Oil and Gas Operations Report),
which will not exceed 1 year, if the without the required approval, or if the in accordance with § 216.53 of this title.
(1) You must report the amount of gas required written or oral approval, you ultimate recovery of oil or gas under
flared and the amount of gas vented must submit documentation to the sound engineering and economic
separately. Regional Supervisor summarizing the principles.
(2) You may classify and report gas location, dates, number of hours, and (b) Before initiating enhanced
used to operate equipment on the volumes of gas flared, gas vented, and recovery operations, you must submit a
facility (such as gas used to power liquid hydrocarbons burned under the proposed plan to the Regional
engines, gas used as pilot lights, approval, as required under § 250.140. Supervisor and receive approval for
instrument gas, purge gas used to
§ 250.1164 What are the requirements for pressure maintenance, secondary or
prevent oxygen from entering the flare
flaring or venting gas containing H2S? tertiary recovery, cycling, and similar
or vent stack, sparge gas used to
regenerate glycol, and blanket gas used (a) You may not vent gas containing recovery operations intended to increase
to maintain pressure in low pressure H2S, except for minor releases during the ultimate recovery of oil and gas from
vessels) as lease use gas. maintenance and repair activities that a reservoir. The proposed plan must
(3) You must report the amount of gas do not result in a 15-minute time- include, for each project reservoir, a
flared and vented at each facility on a weighted average atmosphere brief geologic and engineering overview,
lease or unit basis. Gas flared and concentration of H2S of 20 ppm or structure map, well log section, Form
vented from multiple facilities on a higher anywhere on the platform. MMS–127, and any additional
single lease or unit must be reported (b) You may flare gas containing H2S information required by the Regional
separately. only if you meet the requirements of Supervisor.
(c) You must prepare and maintain §§ 250.1160, 250.1161, 250.1163, and (c) You must report to Minerals
records detailing gas flaring, gas the following additional requirements: Revenue Management the volumes of
venting, and liquid hydrocarbon (1) You may not emit more than 15 lbs
oil, gas, or other substances injected,
burning for each facility. You must of SO2 per hour per mile from shore,
produced, or produced for a second
maintain these records for the period without approval from the Regional
time under § 216.53 of this title.
specified in part 212 of this title. You Supervisor;
must keep these records on the facility (2) For safety or air pollution Special Alaska OCS Region
for 2 years and have them available for prevention purposes, the Regional Requirements
inspection by MMS representatives. Supervisor may further restrict the
flaring of gas containing H2S. The § 250.1166 What additional reporting is
After 2 years, you must maintain the
Regional Supervisor will use required for developments in the Alaska
records, allow MMS representatives to OCS Region?
inspect the records upon request, and information provided in the lessee’s H2S
provide copies to the Regional Contingency Plan (§ 250.490(f)), (a) For any development in the Alaska
Supervisor upon request, but you are Exploration Plan, Development and OCS Region, you must submit an annual
not required to keep them on the Production Plan, Development reservoir management report to the
facility. The records must include, at a Operations Coordination Document, and Regional Supervisor. The report must
minimum: associated documents to determine the contain information detailing the
(1) Daily volumes of gas flared, gas need for restrictions; and activities performed during the previous
vented, and liquid hydrocarbons (3) If the Regional Supervisor year and planned for the upcoming year
burned; determines that flaring at a facility or that will provide for:
(2) Number of hours of gas flaring, gas group of facilities may significantly
affect the air quality of an onshore area, (1) The prevention of waste;
venting, and liquid hydrocarbon
burning, on a daily basis; the Regional Supervisor may require (2) The protection of correlative
(3) A list of the wells contributing to you to conduct an air quality modeling rights; and
gas flaring, gas venting, and liquid analysis to determine the potential (3) A greater ultimate recovery of oil
hydrocarbon burning, along with gas-oil effect of facility emissions. The Regional and gas.
ratio data; Supervisor may require monitoring and
(4) Reasons for gas flaring, gas reporting, or may restrict or prohibit (b) If your development is jointly
venting, and liquid hydrocarbon flaring, under §§ 250.303 and 250.304. regulated by MMS and the State of
burning; and (c) You must report flared and vented Alaska, MMS and the AOGCC will
(5) Documentation of all required gas containing H2S as required under jointly determine appropriate reporting
approvals. § 250.1163. In addition, the Regional requirements to minimize or eliminate
(d) If your facility is required to have Supervisor may require you to submit duplicate reporting requirements.
flare/vent meters, you must maintain monthly reports of flared and vented gas (c) Every time you are required to
the meter recordings for the period containing H2S. Each report must submit Form MMS–127 under
specified in §§ 212.50 and 212.51 of this contain, on a daily basis: § 250.1155, you must request an MER
title. You must keep these recordings on (1) The volume and duration of each for each producing sensitive reservoir in
the facility for 2 years and have them flaring and venting occurrence; the Alaska OCS Region, unless
available for inspection by MMS (2) H2S concentration in the flared or otherwise instructed by the Regional
representatives. After 2 years, you must vented gas; and Supervisor.
maintain the recordings, allow MMS (3) The calculated amount of SO2
representatives to inspect the recordings emitted. Information Needed With Forms and
upon request, and provide copies to the for Approvals
Enhanced Recovery
Regional Supervisor upon request, but
§ 250.1167 What information must I submit
are not required to keep them on the § 250.1165 What must I do for enhanced
with forms and for approvals?
facility. These recordings must include recovery operations?
the begin times, end times, and volumes (a) You must promptly initiate You must submit the supporting
for all flaring and venting incidents. enhanced oil and gas recovery information listed in the following table
(e) If your flaring or venting of gas, or operations for all reservoirs where these with the forms and for the approvals
burning of liquid hydrocarbons, operations would result in increased required under this subpart:
Production
WPT MMS– Gas cap Downhole Reservoir within 500-ft of
SRI MMS–127
126 production commingling reclassification a Unit or
Lease Line
(a) Maps:
(1) Base map with surface,
bottomhole, and completion loca-
tions with respect to the unit or
lease line and the orientation of
representative seismic lines or
cross sections ............................... ........................ ........................ ✓ ✓ ........................ ✓
(2) Structure maps with penetration
point and subsea depth for each
well penetrating the reservoirs,
highlighting subject wells; res-
ervoir boundaries; and original
and current fluid levels .................. ✓ ✓ ✓ ✓ ✓ ✓
(3) Net sand isopach with total net
sand penetrated for each well,
identified at the penetration point ........................ ✓ ✓ ✓ ........................ ........................
(4) Net hydrocarbon isopach with
net feet of pay for each well, iden-
tified at the penetration point ........ ........................ ✓ ✓ ✓ ........................ ........................
(b) Seismic data:
(1) Representative seismic lines, in-
cluding strike and dip lines that
confirm the structure; indicate po-
larity ............................................... ........................ ........................ ✓ ✓ ........................ ✓
(2) Time/depth correlation table for
seismic data .................................. ........................ ........................ ✓ ✓ ........................ ✓
(3) Amplitude extraction of seismic
horizon, if applicable ..................... ........................ ✓ ✓ ✓ ✓ ✓
(c) Logs:
(1) Well log sections with tops and
bottoms of the reservoir(s) and
proposed or existing perforations ✓ ✓ ✓ ✓ ✓ ✓
(2) Structural cross-sections showing
the subject well and nearby wells ........................ ........................ ✓ ✓ ✓ ........................
(d) Engineering Data:
(1) Estimated recoverable reserves
for each well completion in the
reservoir; total recoverable re-
serves for each reservoir; method
of calculation; reservoir param-
eters used in volumetric and de-
cline curve analysis ....................... ........................ ✓ † † ........................ ✓
(2) Well schematics showing current
and proposed conditions ............... ........................ ........................ ✓ ✓ ........................ ✓
(3) The drive mechanism of each
reservoir ........................................ ........................ ✓ ✓ ✓ ✓ ✓
(4) Pressure data, by date, and
whether they are estimated or
measured ...................................... ........................ ........................ ✓ ✓ ✓ ........................
(5) Production data and decline
curve analysis indicative of the
reservoir performance ................... ........................ ........................ ✓ ✓ ✓ ........................
(6) Reservoir simulation with the res-
ervoir parameters used, history
matches, and prediction runs (in-
clude proposed development sce-
nario) ............................................. ........................ ........................ * * * *
(e) General information:
(1) Detailed economic analysis ........ ........................ ........................ * * ........................ ........................
(2) Reservoir name and whether or
not it is competitive as defined
under § 250.105 ............................ ........................ ✓ ✓ ✓ ✓ ✓
(3) Operator name, lessee name(s),

block, lease number, royalty rate,
and unit number (if applicable) of
all relevant leases ......................... ........................ ........................ ........................ ✓ ........................ ✓
(4) Brief geologic overview of project ........................ ........................ ✓ ✓ ✓ ✓
(5) Explanation of why the proposed
completion scenario will not harm
ultimate recovery ........................... ........................ ........................ ✓ ✓ ........................ ✓
Production
WPT MMS– Gas cap Downhole Reservoir within 500-ft of
SRI MMS–127
126 production commingling reclassification a Unit or
Lease Line
(6) List of all wells in subject res-

ervoirs that have ever produced or
been used for injection .................. ........................ ........................ ✓ ✓ ✓ ✓
† Each Gas Cap Production request and Downhole Commingling request should include the estimated recoverable reserves for (1) the case
where your proposed production scenario is approved, and (2) the case where your proposed production scenario is denied.
* Additional items the Regional Supervisor may request.
Note: All maps must be at a standard scale and show lease and unit lines. If you have not generated all of the required data for your own pur-
poses, you may submit those data you have available for consideration.
(f) Depending on the above the Waterways Safety Branch of Sector the rest of the conductors from the
requirement, you must submit San Francisco between 9 a.m. and 4 remaining towers that are over land.
appropriate payment of the service p.m., Monday through Friday, except
Discussion of Proposed Rule
fee(s) listed in § 250.125. Federal holidays.
[FR Doc. E7–3846 Filed 3–5–07; 8:45 am] FOR FURTHER INFORMATION CONTACT: This proposed safety zone will
BILLING CODE 4310–MR–P
Lieutenant Eric Ramos, U.S. Coast encompass the navigable waters of the
Guard Sector San Francisco, at (415) Sacramento River from the surface to
556–2950 or Sector San Francisco 24- the sea floor, encompassing a circular
hour Command Center at (415) 399– area with a 500-yard radius at position
DEPARTMENT OF HOMELAND 3547. 38°17.072′N / 121°39.619′W (NAD 83)
SECURITY
SUPPLEMENTARY INFORMATION: for the removal of a conductor from a
Coast Guard tower that crosses over the deep water
Request for Comments channel. This proposed safety zone is
33 CFR Part 165 We encourage you to participate in necessary to protect persons and vessels
this rulemaking by submitting from hazards, injury, and damage
[COTP San Francisco Bay 07–003] comments and related material. If you associated with the conductor removal.
RIN 1625–AA00 do so, please include your name and
Regulatory Evaluation
address, identify the docket number for
Safety Zone; Liberty Island Conductor this rulemaking (COTP SF 07–003), This proposed rule is not a
Removal, Sacramento River, CA indicate the specific section of this ‘‘significant regulatory action’’ under
document to which each comment section 3(f) of Executive Order 12866,
AGENCY: Coast Guard, DHS.
applies, and give the reason for each Regulatory Planning and Review, and
ACTION: Notice of proposed rulemaking. comment. Please submit all comments does not require an assessment of
SUMMARY: The Coast Guard proposes to and related material in an unbound potential costs and benefits under
establish a safety zone in the navigable format, no larger than 81⁄2 by 11 inches, section 6(a)(3) of that Order. The Office
waters of the Sacramento River that will suitable for copying. If you would like of Management and Budget has not
prohibit vessels and people from to know they reached us, please enclose reviewed it under that Order.
entering into or remaining within close a stamped, self-addressed postcard or We expect the economic impact of
proximity to the deep water channel. envelope. We will consider all this proposed rule to be so minimal that
Pacific Gas and Electric Company comments and material received during a full Regulatory Evaluation is
(PG&E) will be removing a conductor the comment period. We may change unnecessary.
from the Liberty Island towers, two of this proposed rule in view of them.
Although this rule will restrict access
which cross over the deep water Public Meeting to the waters encompassed by the
channel, on March 28, 2007. The proposed safety zone, the effect of this
We do not now plan to hold a public
proposed safety zone will close the deep rule is not expected to be significant
meeting. But you may submit a request
water channel for approximately 30 because the local waterway users will be
for a meeting by writing to Coast Guard
minutes during the conductor removal. notified via public broadcast notice to
Sector San Francisco, Waterways Safety
DATES: Comments and related material Branch at the address under ADDRESSES mariners to ensure the proposed safety
must reach the Coast Guard on or before explaining why one would be zone will result in minimum impact.
March 14, 2007. beneficial. If we determine that one The entities most likely to be affected
ADDRESSES: You may mail comments would aid this rulemaking, we will hold are pleasure craft engaged in
and related material to United States one at a time and place announced by recreational activities.
Coast Guard Sector San Francisco, a later notice in the Federal Register. Small Entities
Waterways Safety Branch, Yerba Buena
Island, Bldg. 278, San Francisco, Background and Purpose Under the Regulatory Flexibility Act
California, 94130. The Waterways Safety PG&E will be removing a conductor (5 U.S.C. 601–612), we have considered
Branch of Sector San Francisco from the Liberty Island towers on March whether this proposed rule would have
maintains the public docket for this 28, 2007. Two of the towers cross the a significant economic impact on a
rulemaking. Comments and material Sacramento deep water channel. PG&E substantial number of small entities.
received from the public, as well as will use a helicopter to cut the The term ‘‘small entities’’ comprises
documents indicated in this preamble as conductor off of one tower and it will small businesses, not-for-profit
being available in the docket, will fall into the water. They will then organizations that are independently
become part of this docket and will be recover the cut conductor and place it owned and operated and are not
available for inspection or copying at on the bank before continuing to remove dominant in their fields, and

Proposed Rule: Outer Continental Shelf Oil, Gas, and Sulphur Operations: Oil and Gas Production Requirements

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9884 Federal Register / Vol. 72, No.

43 / Tuesday, March 6, 2007 / Proposed Rules

TABLE 1.—AIRBUS SERVICE BULLETINS—Continued

A320–27–1117 .................................................................................................................................... Revision 03 .............. August 24, 2001.

the appropriate principal inspector in the

Current rule Proposed rule

§ 250.1100 Definitions for production rates ........................................... § 250.105 Definitions.

Current rule Proposed rule

§ 250.1156 What steps must I take to receive approval to produce

3,300 × 50 requests = $165,000

$4,200 × 125 requests = $525,000

$4,900 × 119 applications = $583,100

112 meters @ $77,000 ea = $8,624,000

20 3 annual revisions ........... 60

Reporting Subtotal 20,175 .............................. 31,800

Recordkeeping Subtotal 929 ................................... 11,327

Total Burden 21,104 .............................. 43,127

SERVICE FEE TABLE

Change in Designation of Operator ................... $150 ................................................................. § 250.143.

New Facility Production Safety System Applica- $570 ................................................................. § 250.802(e).

SERVICE FEE TABLE—Continued

Production Safety System Application—Modi- $80 ................................................................... § 250.802(e).

* * * * * 250.1157 How do I receive approval to Special Alaska OCS Region Requirements

approval to produce within 500 feet of a

If you have: Then you must conduct:

Condition Additional requirements

Condition Additional requirements

(3) Operator name, lessee name(s),

(6) List of all wells in subject res-

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