BLM Proposed Rule
With proposed rule BLM aims to reduce gas lost through venting, flaring and equipment leaks.
Proposed rule has a 60 day commenting period, which will begin once published with the Federal Registry. Unless an extension is granted, BLM expects the commenting period to end around 4/08/2016.
BLM proposes to amend 43 CFR parts 3100 and 3160 and add new subparts 3178 and 3179.
3100 - Onshore Oil & Gas Leasing
Proposal would change BLM’s regulations so that it would have the flexibility in the future to raise the royalty rate on its competitive leases above 12.5 %. BLM is not proposing to raise the royalty rate now, but would have the option to do so after the revision is made.
3160 – Onshore Oil and Gas Operations
Proposal…show more content…
Subpart 3179 - Waste Prevention and Resource Conservation
Proposal would prohibit venting of gas except in limited circumstances, such as emergencies, or when equipment vents in an authorized way. Each emergency will be limited to 24 hours and operator may not have more than 3 royalty-free emergencies for a lease, unit, or CA within a 30 day period. The following specific limits are included in the proposal: o Pneumatic Controllers and Pneumatic Pumps: Operators would be required to replace high-bleed pneumatic controllers with low-bleed or no-bleed pneumatic controllers within one year of the effective date of the final rule. This requirement would apply only to pneumatic controllers that are not subject to EPA regulations, and would not apply when the operator demonstrates to BLM that replacing the controllers would “impose such costs as to cause the operator to cease production and abandon significant recoverable oil reserves under the lease.” o Storage Vessels: The proposal would subject existing storage vessels to the same standards that EPA applies to new and modified vessels on BLM leases. Operators would be required to route VOC emissions from existing storage vessels to combustion devices, continuous flares, or sales lines within six months after the effective date of the BLM rule. BLM can grant exceptions to operators that demonstrate that compliance would cause the