Onshore Order No. 1

Onshore_Order_No_1_The_Order.pdf

Onshore Oil and Gas Operations (43 CFR part 3160)

Onshore Order No. 1

OMB: 1004-0137

Document [pdf]
Download: pdf | pdf
Onshore Oil and Gas Order
The Order

Wednesday
March 7, 2007

No. 1
Onshore Oil and Gas Operations;
Federal and Indian Oil and Gas Leases;
Approval of Operations

Issued Under
43 CFR 3160
U. S. Department of the Interior
Bureau of Land Management
U. S. Department of Agriculture
Forest Service

10330

Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations

Authorization needed for support
facilities, conducted before the approval
of the APD or Surface Use Plan of
Operations and construction activities.
Private Surface Owner means a nonFederal or non-state owner of the
surface estate and includes any Indian
owner of surface estate not held in trust
by the United States.
Reclamation means returning
disturbed land as near to its
predisturbed condition as is reasonably
practical.
Split Estate means lands where the
surface is owned by an entity or person
other than the owner of the Federal or
Indian oil and gas.
Surface Managing Agency means any
Federal or state agency having
jurisdiction over the surface overlying
Federal or Indian oil and gas.
Variance means an approved
alternative to a provision or standard of
an Order or Notice to Lessee.
III. Application for Permit To Drill
(APD)
An Application for Permit to Drill or
Reenter, on Form 3160–3, is required for
each proposed well, and for reentry of
existing wells (including disposal and
service wells), to develop an onshore
lease for Federal or Indian oil and gas.

ycherry on PROD1PC64 with RULES2

A. Where To File
The operator must file an APD or any
other required documents in the BLM
Field Office having jurisdiction over the
lands described in the application. As
an alternative to filing in a local BLM
office, an operator may file an APD
using the BLM’s electronic commerce
application for oil and gas permitting
and reporting. Contact the local BLM
Field Office for details before using the
electronic commerce application.
B. Early Notification
The operator may wish to contact the
BLM and any applicable Surface
Managing Agency, as well as all private
surface owners, to request an initial
planning conference as soon as the
operator has identified a potential area
of development. Early notification is
voluntary and would precede the Notice
of Staking option or filing of an APD. It
allows the involved Surface Managing
Agency or private surface owner to
apprise the prospective operator of any
unusual conditions on the lease area.
Early notification also provides both the
Surface Managing Agency or private
surface owner and the prospective
operator with the earliest possible
identification of seasonal restrictions
and determination of potential areas of
conflict. The prospective operator
should have a map of the proposed

VerDate Aug<31>2005

18:43 Mar 06, 2007

Jkt 211001

project available for Surface Managing
Agency review to determine if a cultural
or biological inventory or other
information may be required.
Inventories are not the responsibility of
the operator.
C. Notice of Staking Option
Before filing an APD or Master
Development Plan, the operator may file
a Notice of Staking with the BLM. The
purpose of the Notice of Staking is to
provide the operator with an
opportunity to gather information to
better address site-specific resource
concerns while preparing the APD
package. This may expedite approval of
the APD. Attachment I, Sample Format
for Notice of Staking, provides the
information required for the Notice of
Staking option.
For Federal lands managed by other
Surface Managing Agencies, the BLM
will provide a copy of the Notice of
Staking to the appropriate Surface
Managing Agency office. In Alaska,
when a subsistence stipulation is part of
the lease, the operator must also send a
copy of the Notice of Staking to the
appropriate Borough and/or Native
Regional or Village Corporation.
Within 10 days of receiving the Notice
of Staking, the BLM or the FS will
review it for required information and
schedule a date for the onsite
inspection. The onsite inspection will
be conducted as soon as weather and
other conditions permit. The operator
must stake the proposed drill pad and
ancillary facilities, and flag new or
reconstructed access routes, before the
onsite inspection. The staking must
include a center stake for the proposed
well, two reference stakes, and a flagged
access road centerline. Staking activities
are considered casual use unless the
particular activity is likely to cause
more than negligible disturbance or
damage. Off-road vehicular use for the
purposes of staking is casual use unless,
in a particular case, it is likely to cause
more than negligible disturbance or
damage, or otherwise prohibited.
On non-NFS lands, the BLM will
invite the Surface Managing Agency and
private surface owner, if applicable, to
participate in the onsite inspection. If
the surface is privately owned, the
operator must furnish to the BLM the
name, address, and telephone number of
the surface owner if known. All parties
who attend the onsite inspection will
jointly develop a list of resource
concerns that the operator must address
in the APD. The operator will be
provided a list of these concerns either
during the onsite inspection or within 7
days of the onsite inspection. Surface
owner concerns will be considered to

PO 00000

Frm 00024

Fmt 4701

Sfmt 4700

the extent practical within the law.
Failure to submit an APD within 60
days of the onsite inspection will result
in the Notice of Staking being returned
to the operator.
D. Components of a Complete APD
Package
Operators are encouraged to consider
and incorporate Best Management
Practices into their APDs because Best
Management Practices can result in
reduced processing times and reduced
number of Conditions of Approval. An
APD package must include the
following information that will be
reviewed by technical specialists of the
appropriate agencies to determine the
technical adequacy of the package:
1. A Completed Form 3160–3; And
2. Well Plat
Operators must include in the APD
package a well plat and geospatial
database prepared by a registered
surveyor depicting the proposed
location of the well and identifying the
points of control and datum used to
establish the section lines or metes and
bounds. The purpose of this plat is to
ensure that operations are within the
boundaries of the lease or agreement
and that the depiction of these
operations is accurately recorded both
as to location (latitude and longitude)
and in relation to the surrounding lease
or agreement boundaries (public land
survey corner and boundary ties). The
registered surveyor should coordinate
with the cadastral survey division of the
appropriate BLM State Office,
particularly where the lands have not
been surveyed under the Public Land
Survey System.
The plat and geospatial database must
describe the location of operations in:
• Geographical coordinates
referenced to the National Spatial
Reference System, North American
Datum 1983 or latest edition; and
• In feet and direction from the
nearest two adjacent section lines, or, if
not within the Rectangular Survey
System, the nearest two adjacent
property lines, generated from the
BLM’s current Geographic Coordinate
Data Base.
The surveyor who prepared the plat
must sign it, certifying that the location
has been staked on the ground as shown
on the plat.
a. Surveying and staking are necessary
casual uses, typically involving
negligible surface disturbance. The
operator is responsible for making
access arrangements with the
appropriate Surface Managing Agency
(other than the BLM and the FS) or

E:\FR\FM\07MRR2.SGM

07MRR2

Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations
private surface owner. On tribal or
allotted lands, the operator must contact
the appropriate office of the BIA to
make access arrangements with the
Indian surface owners. In the event that
not all of the Indian owners consent or
may be located, but a majority of those
who can be located consent, or the
owners of interests are so numerous that
it would be impracticable to obtain their
consent and the BIA finds that the
issuance of the APD will cause no
substantive injury to the land or any
owner thereof, the BIA may approve
access. Typical off-road vehicular use,
when conducted in conjunction with
these activities, is a necessary action for
obtaining a permit and may be done
without advance approval from the
Surface Managing Agency, except for:
• Lands administered by the
Department of Defense;
• Other lands used for military
purposes;
• Indian lands; or
• Where more than negligible surface
disturbance is likely to occur or is
otherwise prohibited.
b. No entry on split estate lands for
surveying and staking should occur
without the operator first making a good
faith effort to notify the surface owner.
Also, operators are encouraged to notify
the BLM or the FS, as appropriate,
before entering private lands to stake for
Federal mineral estate locations.

ycherry on PROD1PC64 with RULES2

3. Drilling Plan
With each copy of Form 3160–3, the
operator must submit to the BLM either
a Drilling Plan or reference a previously
submitted field-wide drilling plan (a
drilling plan that can be used for all the
wells in a field, any differences for
specific wells will be described in the
APD specific to that well). The Drilling
Plans must be in sufficient detail to
permit a complete appraisal of the
technical adequacy of, and
environmental effects associated with,
the proposed project. The Drilling Plan
must adhere to the provisions and
standards of Onshore Oil and Gas Order
Number 2 (see 53 FR 46790) (Order 2)
and, if applicable, Onshore Oil and Gas
Order Number 6 (see 55 FR 48958)
(Order 6), and must include the
following information:
a. Names and estimated tops of all
geologic groups, formations, members,
or zones.
b. Estimated depth and thickness of
formations, members, or zones
potentially containing usable water, oil,
gas, or prospectively valuable deposits
of other minerals that the operator
expects to encounter, and the operator’s
plans for protecting such resources.

VerDate Aug<31>2005

18:43 Mar 06, 2007

Jkt 211001

c. The operator’s minimum
specifications for blowout prevention
equipment and diverter systems to be
used, including size, pressure rating,
configuration, and the testing procedure
and frequency. Blowout prevention
equipment must meet the minimum
standards outlined in Order 2.
d. The operator’s proposed casing
program, including size, grade, weight,
type of thread and coupling, the setting
depth of each string, and its condition.
The operator must include the
minimum design criteria, including
casing loading assumptions and
corresponding safety factors for burst,
collapse, and tensions (body yield and
joint strength). The operator must also
include the lengths and setting depth of
each casing when a tapered casing string
is proposed. The hole size for each well
bore section of hole drilled must be
included. Special casing designs such as
the use of coiled tubing or expandable
casing may necessitate additional
information.
e. The estimated amount and type(s)
of cement expected to be used in the
setting of each casing string. If stage
cementing will be used, provide the
setting depth of the stage tool(s) and
amount and type of cement, including
additives, to be used for each stage.
Provide the yield of each cement slurry
and the expected top of cement, with
excess, for each cemented string or
stage.
f. Type and characteristics of the
proposed circulating medium or
mediums proposed for the drilling of
each well bore section, the quantities
and types of mud and weighting
material to be maintained, and the
monitoring equipment to be used on the
circulating system. The operator must
submit the following information when
air or gas drilling is proposed:
• Length, size, and location of the
blooie line, including the gas ignition
and dust suppression systems;
• Location and capacity of the
compressor equipment, including safety
devices, describe the distance from the
well bore, and location within the drill
site; and
• Anticipated amounts, types, and
other characteristics as defined in this
section, of the stand by mud or kill fluid
and associated circulating equipment.
g. The testing, logging, and coring
procedures proposed, including drill
stem testing procedures, equipment, and
safety measures.
h. The expected bottom-hole pressure
and any anticipated abnormal pressures,
temperatures, or potential hazards that
the operator expects to encounter, such
as lost circulation and hydrogen sulfide
(see Order 6 for information on

PO 00000

Frm 00025

Fmt 4701

Sfmt 4700

10331

hydrogen sulfide operations). A
description of the operator’s plans for
mitigating such hazards must be
included.
i. Any other facets of the proposed
operation that the operator would like
the BLM to consider in reviewing the
application. Examples include, but are
not limited to:
• For directional wells, proposed
directional design, plan view, and
vertical section in true vertical and
measured depths;
• Horizontal drilling; and
• Coil tubing operations.
4. Surface Use Plan of Operations
The Surface Use Plan of Operations
must:
• Describe the access road(s) and drill
pad, the construction methods that the
operator plans to use, and the proposed
means for containment and disposal of
all waste materials;
• Provide for safe operations,
adequate protection of surface
resources, groundwater, and other
environmental components;
• Include adequate measures for
stabilization and reclamation of
disturbed lands;
• Describe any Best Management
Practices the operator plans to use; and
• Where the surface is privately
owned, include a certification of Surface
Access Agreement or an adequate bond,
as described in Section VI. of this Order.
All maps that are included in the
Surface Use Plan of Operations must be
of a scale no smaller than 1:24,000,
unless otherwise stated below.
Geospatial vector and raster data must
include appropriate attributes and
metadata. Georeferenced raster images
must be from the same source as
hardcopy plats and maps submitted in
the APD package. All proposed on-lease
surface disturbance must be surveyed
and staked as described below in items
a through l, including:
• The well location;
• Two 200-foot (61-meter) directional
reference stakes;
• The exterior pad dimensions;
• The reserve pit;
• Cuts and fills;
• Outer limits of the area to be
disturbed (catch points); and
• Any off-location facilities.
Proposed new roads require
centerline flagging with stakes clearly
visible from one to the next. In rugged
terrain, cut and fill staking and/or
slopestaking of proposed new access
roads and locations for ancillary
facilities that may be necessary, as
determined by the BLM or the FS.
The onsite inspection will not occur
until the required surveying and staking

E:\FR\FM\07MRR2.SGM

07MRR2

ycherry on PROD1PC64 with RULES2

10332

Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations

is complete, and any new access road(s)
have been flagged, unless a variance is
first granted under Section X. of this
Order.
Information required by the Surface
Use Plan of Operations may be shown
on the same map if it is appropriately
labeled or on separate diagrams or maps
and must include the following:
a. Existing Roads: The operator must
submit a legible map such as a highway
or county road, United States Geological
Survey (USGS) topographic, Alaska
Borough, or other such map that shows
the proposed well site and access route
to the proposed well in relation to a
town, village, or other locatable public
access point.
1. The operator must improve or
maintain existing roads in a condition
the same as or better than before
operations began. The operator must
provide any plans for improvement and/
or maintenance of existing roads. The
information provided by the operator for
construction and use of roads will be
used by the BLM for any Right-of-Way
application, as described in Section V.
of this Order. The operator may use
existing terrain and two-track trails,
where appropriate, to assure
environmental protection. The operator
should consider using Best Management
Practices in improving or maintaining
existing roads.
2. The operator may use existing
roads under the jurisdiction of the FS
for access if they meet the transportation
objectives of the FS. When access
involves the use of existing roads, the
FS may require that the operator
contribute to road maintenance. This is
usually authorized by a Road Use
Permit or a joint road use agreement.
The FS will charge the operator a pro
rata share of the costs of road
maintenance and improvement, based
upon the anticipated use of the road.
b. New or Reconstructed Access
Roads: The operator must identify on a
map all permanent and temporary
access roads that it plans to construct or
reconstruct in connection with the
drilling of the proposed well. Locations
of all existing and proposed road
structures (culverts, bridges, low water
crossings, etc.) must be shown. The
proposed route to the proposed drill site
must be shown, including distances
from the point where the access route
exits established roads. All permanent
and temporary access roads must be
located and designed to meet the
applicable standards of the appropriate
Surface Managing Agency, and be
consistent with the needs of the
operator. The operator should consider
using Best Management Practices in
designing and constructing roads.

VerDate Aug<31>2005

18:43 Mar 06, 2007

Jkt 211001

The operator must design roads based
upon the class or type of road, the safety
requirements, traffic characteristics,
environmental conditions, and the
vehicles the road is expected to carry.
The operator must describe for all road
construction or reconstruction:
• Road width;
• Maximum grade;
• Crown design;
• Turnouts;
• Drainage and ditch design;
• On-site and off-site erosion control;
• Revegetation of disturbed areas;
• Location and size of culverts and/or
bridges;
• Fence cuts and/or cattleguards;
• Major cuts and fills;
• Source and storage of topsoil; and
• Type of surfacing materials, if any,
that will be used.
c. Location of Existing Wells: The
operator must include a map and may
include a geospatial database that
includes all known wells, regardless of
the well status (producing, abandoned,
etc.), within a one-mile radius of the
proposed location.
d. Location of Existing and/or
Proposed Production Facilities: The
operator must include a map or diagram
of facilities planned either on or off the
well pad that shows, to the extent
known or anticipated, the location of all
production facilities and lines likely to
be installed if the well is successfully
completed for production.
The map or diagram and optional
geospatial database must show and
differentiate between proposed and
existing flow lines, overhead and buried
power lines, and water lines. If facilities
will be located on the well pad, the
information should be consistent with
the layout provided in item i. of this
section.
The operator must show the
dimensions of the facility layouts for all
new construction. This information may
be used by the BLM or the FS for Rightof-Way or Special Use Authorization
application information, as specified in
Section V. of this Order.
If the operator has not developed
information regarding production
facilities, it may defer submission of
that information until a production well
is completed, in which case the operator
will follow the procedures in Section
VIII. of this Order. However, for
purposes of NEPA analysis, the BLM or
the FS will need a reasonable estimate
of the facilities to be employed.
e. Location and Types of Water
Supply: Information concerning water
supply, such as rivers, creeks, springs,
lakes, ponds, and wells, may be shown
by quarter-quarter section on a map or
plat, or may be described in writing.

PO 00000

Frm 00026

Fmt 4701

Sfmt 4700

The operator must identify the source,
access route, and transportation method
for all water anticipated for use in
drilling the proposed well. The operator
must describe any newly constructed or
reconstructed access roads crossing
Federal or Indian lands that are needed
to haul the water as provided in item b.
of this section. The operator must
indicate if it plans to drill a water
supply well on the lease and, if so, the
operator must describe the location,
construction details, and expected
production requirements, including a
description of how water will be
transported and procedures for well
abandonment.
f. Construction Materials: The
operator must state the character and
intended use of all construction
materials, such as sand, gravel, stone,
and soil material. The proposed source
must be shown on a quarter-quarter
section of a map or plat or in a written
description.
g. Methods for Handling Waste: The
Surface Use Plan of Operations must
contain a written description of the
methods and locations proposed for safe
containment and disposal of each type
of waste material (e.g., cuttings, garbage,
salts, chemicals, sewage, etc.) that
results from drilling the proposed well.
The narrative must include plans for the
eventual disposal of drilling fluids and
any produced oil or water recovered
during testing operations. The operator
must describe plans for the construction
and lining, if necessary, of the reserve
pit.
h. Ancillary Facilities: The operator
must identify on a map the location and
construction methods and materials for
all anticipated ancillary facilities such
as camps, airstrips, and staging areas.
The operator must stake on the ground
the approximate center of proposed
camps and the centerline of airstrips. If
the ancillary facilities are located offlease, depending on Surface Managing
Agency policy, the BLM or the FS may
require the operator to obtain an
additional authorization, such as a
Right-of-Way or Special Use
Authorization.
i. Well Site Layout: A diagram of the
well site layout must have an arrow
indicating the north direction. Diagrams
with cuts and fills must be surveyed,
designed, drawn, digitized, and certified
by licensed professional surveyors or
engineers. The operator must submit a
plat of a scale of not less than 1 inch =
50 feet showing the location and
orientation of:
• The proposed drill pad;
• Reserve pit/blooie line/flare pit
location;

E:\FR\FM\07MRR2.SGM

07MRR2

ycherry on PROD1PC64 with RULES2

Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations
• Access road entry points and their
approximate location with respect to
topographic features and with cross
section diagrams of the drill pad; and
• The reserve pit showing all cuts and
fills and the relation to topography.
The plat must also include the
approximate proposed location and
orientation of the:
• Drilling rig;
• Dikes and ditches to be constructed;
and
• Topsoil and/or spoil material
stockpiles.
j. Plans for Surface Reclamation: The
operator must submit a plan for the
surface reclamation or stabilization of
all disturbed areas. This plan must
address interim (during production)
reclamation for the area of the well pad
not needed for production, as well as
final abandonment of the well location.
Such plans must include, as
appropriate:
• Configuration of the reshaped
topography;
• Drainage systems;
• Segregation of spoil materials
(stockpiles);
• Surface disturbances;
• Backfill requirements;
• Proposals for pit/sump closures;
• Redistribution of topsoil;
• Soil treatments;
• Seeding or other steps to reestablish
vegetation;
• Weed control; and
• Practices necessary to reclaim all
disturbed areas, including any access
roads and pipelines.
The operator may amend this
reclamation plan at the time of
abandonment. Further details for
reclamation are contained in Section
XII. of this Order.
k. Surface Ownership: The operator
must indicate (in a narrative) the surface
ownership at the well location, and of
all lands crossed by roads that the
operator plans to construct or upgrade,
including, if known, the name of the
agency or owner, phone number, and
address. The operator must certify that
they have provided a copy of the
Surface Use Plan of Operations required
in this section to the private surface
owner of the well site location, if
applicable, or that they made a good
faith effort if unable to provide the
document to the surface owner.
l. Other Information: The operator
must include other information required
by applicable orders and notices (43
CFR 3162.3–1(d)(4)). When an
integrated pest management program is
needed for weed or insect control, the
operator must coordinate plans with
state or local management agencies and
include the pest management program

VerDate Aug<31>2005

18:43 Mar 06, 2007

Jkt 211001

in the Surface Use Plan of Operations.
The BLM also encourages the operator
to submit any additional information
that may be helpful in processing the
application.
5. Bonding
a. Most bonding needs for oil and gas
operations on Federal leases are
discussed in 43 CFR subpart 3104. The
operator must obtain a bond in its own
name as principal, or a bond in the
name of the lessee or sublessee. If the
operator uses the lessee or sublessee’s
bond, the operator must furnish a rider
(consent of surety and principal) that
includes the operator under the
coverage of the bond. The operator must
specify on the APD, Form 3160–3, the
type of bond and bond number under
which the operations will be conducted.
For Indian oil and gas, the appropriate
provisions at 25 CFR Subchapter I,
govern bonding.
Under the regulations at 43 CFR
3104.5 and 36 CFR 228.109, the BLM or
the FS may require additional bond
coverage for specific APDs. Other
factors that the BLM or the FS may
consider include:
• History of previous violations;
• Location and depth of wells;
• The total number of wells involved;
• The age and production capability
of the field; and
• Unique environmental issues.
These bonds may be in addition to
any statewide, nationwide, or separate
lease bond already applicable to the
lease. In determining the bond amount,
the BLM may consider impacts of
activities on both Federal and nonFederal lands required to develop the
lease that impact lands, waters, and
other resources off the lease.
Separate bonds may be required for
associated Rights-of-Way and/or Special
Use Authorizations that authorize
activities not covered by the approved
APD.
b. On Federal leases, operators may
request a phased release of an
individual lease bond. The BLM will
grant this reduction after reclamation of
some portion of the lease only if the
operator:
• Has satisfied the terms and
conditions in the plan for surface
reclamation for that particular
operation; and
• No longer has any down-hole
liability.
c. If appropriate, the BLM may reduce
the bond in the amount requested by the
operator or appropriate Surface
Managing Agency. The FS also may
reduce bonds it requires (but not the
BLM-required bonds). The BLM and the
FS will base the amount of the bond

PO 00000

Frm 00027

Fmt 4701

Sfmt 4700

10333

reduction on a calculation of the sum
that is sufficient to cover the remaining
operations (including royalty payments)
and abandonment (including
reclamation) as authorized by the
Surface Use Plan of Operations.
6. Operator Certification
The operator must include its name,
address, and telephone number, and the
same information for its field
representative, in the APD package. The
following certification must carry the
operator’s original signature or meet the
BLM standards for electronic commerce:
I hereby certify that I, or someone
under my direct supervision, have
inspected the drill site and access route
proposed herein; that I am familiar with
the conditions which currently exist;
that I have full knowledge of state and
Federal laws applicable to this
operation; that the statements made in
this APD package are, to the best of my
knowledge, true and correct; and that
the work associated with the operations
proposed herein will be performed in
conformity with this APD package and
the terms and conditions under which
it is approved. I also certify that I, or the
company I represent, am responsible for
the operations conducted under this
application. These statements are
subject to the provisions of 18 U.S.C.
1001 for the filing of false statements.
Executed this ll day oflllll,
20ll.
Name lllllllllllllll
Position Title llllllllllll
Address llllllllllllll
Telephone lllllllllllll
Field representative (if not above signatory) llllllllllllllll
Address (if different from above) lll
Telephone (if different from above) ll
E-mail (optional) llllllllll
Agents not directly employed by the
operator must submit a letter from the
operator authorizing that agent to act or
file this application on their behalf.
7. Onsite Inspection
The onsite inspection must be
conducted before the APD will be
considered complete.
E. APD Posting and Processing
1. Posting
The BLM and the Federal Surface
Managing Agency, if other than the
BLM, must provide at least 30 days
public notice before the BLM may
approve an APD or Master Development
Plan on a Federal oil and gas lease.
Posting is not required for an APD for
an Indian oil and gas lease or agreement.

E:\FR\FM\07MRR2.SGM

07MRR2

10334

Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations

ycherry on PROD1PC64 with RULES2

The BLM will post the APD or Notice
of Staking in an area of the BLM Field
Office having jurisdiction that is readily
accessible to the public and, when
possible, electronically on the internet.
If the surface is managed by a Federal
agency other than the BLM, that agency
also is required to post the notice for at
least 30 days. This would include the
BIA where the surface is held in trust
but the mineral estate is federally
owned. The posting is for informational
purposes only and is not an appealable
decision. The purpose of the posting is
to give any interested party notification
that a Federal approval of mineral
operations has been requested. The BLM
or the FS will not post confidential
information.
Reposting of the proposal may be
necessary if the posted location of the
proposed well is:
a. Moved to a different quarter-quarter
section;
b. Moved more than 660 feet for lands
that are not covered by a Public Land
Survey; or
c. If the BLM or the FS determine that
the move is substantial.
2. Processing
The timeframes established in this
subsection apply to both individual
APDs and to the multiple APDs
included in Master Development Plans
and to leases of Indian minerals as well
as leases of Federal minerals.
If there is enough information to begin
processing the application, the BLM
(and the FS if applicable) will process
it up to the point that missing
information or uncorrected deficiencies
render further processing impractical or
impossible.
a. Within 10 days of receiving an
application, the BLM (in consultation
with the FS if the application concerns
NFS lands) will notify the operator as to
whether or not the application is
complete. The BLM will request
additional information and correction of
any material submitted, if necessary, in
the 10-day notification. If an onsite
inspection has not been performed, the
applicant will be notified that the
application is not complete. Within 10
days of receiving the application, the
BLM, in coordination with the operator
and Surface Managing Agency,
including the private surface owner in
the case of split estate minerals, will
schedule a date for the onsite inspection
(unless the onsite inspection has already
been conducted as part of a Notice of
Staking). The onsite inspection will be
held as soon as practicable based on
participants’ schedules and weather
conditions. The operator will be notified
at the onsite inspection of any

VerDate Aug<31>2005

18:43 Mar 06, 2007

Jkt 211001

additional deficiencies that are
discovered during the inspection. The
operator has 45 days after receiving
notice from the BLM to provide any
additional information necessary to
complete the APD, or the APD may be
returned to the operator.
b. Within 30 days after the operator
has submitted a complete application,
including incorporating any changes
that resulted from the onsite inspection,
the BLM will:
1. Approve the application, subject to
reasonable Conditions of Approval, if
the appropriate requirements of the
NEPA, National Historic Preservation
Act, Endangered Species Act, and other
applicable law have been met and, if on
NFS lands, the FS has approved the
Surface Use Plan of Operations;
2. Notify the operator that it is
deferring action on the permit; or
3. Deny the permit if it cannot be
approved and the BLM cannot identify
any actions that the operator could take
that would enable the BLM to issue the
permit or the FS to approve the Surface
Use Plan of Operations, if applicable.
c. The notice of deferral in paragraph
(b)(2) of this section must specify:
1. Any action the operator could take
that would enable the BLM (in
consultation with the FS if applicable)
to issue a final decision on the
application. The FS will notify the
applicant of any action the applicant
could take that would enable the FS to
issue a final decision on the Surface Use
Plan of Operations on NFS lands.
Actions may include, but are not limited
to, assistance with:
(A) Data gathering; and
(B) Preparing analyses and
documents.
2. If applicable, a list of actions that
the BLM or the FS need to take before
making a final decision on the
application, including appropriate
analysis under NEPA or other
applicable law and a schedule for
completing these actions.
d. The operator has 2 years from the
date of the notice under paragraph (c)(1)
of this section to take the action
specified in the notice. If the
appropriate analyses required by NEPA,
National Historic Preservation Act,
Endangered Species Act, and other
applicable laws have been completed,
the BLM (and the FS if applicable), will
make a decision on the permit and the
Surface Use Plan of Operations within
10 days of receiving a report from the
operator addressing all of the issues or
actions specified in the notice under
paragraph (c)(1) of this section and
certifying that all required actions have
been taken. If the operator has not
completed the actions specified in the

PO 00000

Frm 00028

Fmt 4701

Sfmt 4700

notice within 2 years from the operator’s
receipt of the paragraph (c)(1) notice,
the BLM will deny the permit.
e. For APDs on NFS lands, the
decision to approve a Surface Use Plan
of Operations or Master Development
Plan may be subject to FS appeal
procedures. The BLM cannot approve
an APD until the appeal of the Surface
Use Plan of Operations is resolved.
F. Approval of APDs
a.1. The BLM has the lead
responsibility for completing the
environmental review process, except in
the case of NFS lands.
2. The BLM cannot approve an APD
or Master Development Plan until the
requirements of certain other laws and
regulations including NEPA, the
National Historic Preservation Act, and
the Endangered Species Act have been
met. The BLM must document that the
needed reviews have been adequately
conducted. In some cases, operators
conduct these reviews, but the BLM
remains responsible for their scope and
content and makes its own evaluation of
the environmental issues, as required by
40 CFR 1506.5(b).
3. The approved APD will contain
Conditions of Approval that reflect
necessary mitigation measures. In
accordance with 43 CFR 3101.1–2 and
36 CFR 228.107, the BLM or the FS may
require reasonable mitigation measures
to ensure that the proposed operations
minimize adverse impacts to other
resources, uses, and users, consistent
with granted lease rights. The BLM will
incorporate any mitigation
requirements, including Best
Management Practices, identified
through the APD review and
appropriate NEPA and related analyses,
as Conditions of Approval to the APD.
4. The BLM will establish the terms
and Conditions of Approval for any
associated Right-of-Way when the
application is approved.
b. For NFS lands, the FS will establish
the terms and Conditions of Approval
for both the Surface Use Plan of
Operations and any associated Surface
Use Authorization. On NFS lands the FS
has principal responsibility for
compliance with NEPA, the National
Historic Preservation Act, and the
Endangered Species Act, but the BLM
should be a cooperating or co-lead
agency for this purpose and adopt the
analysis as the basis for its decision.
After the FS notifies the BLM it has
approved a Surface Use Plan of
Operations on NFS lands, the BLM must
approve the APD before the operator
may begin any surface-disturbing
activity.

E:\FR\FM\07MRR2.SGM

07MRR2

Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations
c. On Indian lands, BIA has
responsibility for approving Rights-ofWay.
d. In the case of Indian lands, the
BLM may be a cooperating or co-lead
agency for NEPA compliance or may
adopt the NEPA analysis prepared by
the BIA (516 DM 3).
G. Valid Period of Approved APD
1. An APD approval is valid for 2
years from the date that it is approved,
or until lease expiration, whichever
occurs first. If the operator submits a
written request before the expiration of
the original approval, the BLM, in
coordination with the FS, as appropriate
may extend the APD’s validity for up to
2 additional years.
2. The operator is responsible for
reclaiming any surface disturbance that
resulted from its actions, even if a well
was not drilled.
H. Master Development Plans
An operator may elect to submit a
Master Development Plan addressing
two or more APDs that share a common
drilling plan, Surface Use Plan of
Operations, and plans for future
development and production.
Submitting a Master Development Plan
facilitates early planning, orderly
development, and the cumulative effects
analysis for all the APDs expected to be
drilled by an operator in a developing
field. Approval of a Master
Development Plan serves as approval of
all of the the APDs submitted with the
Plan. Processing of a Master
Development Plan follows the
procedures in Section III.E.2. of this
Order. After the Master Development
Plan is approved, subsequent APDs can
reference the Master Development Plan
and be approved using the NEPA
analysis for the Master Development
Plan, absent substantial deviation from
the Master Development Plan
previously analyzed or significant new
information relevant to environmental
effects. Therefore, an approved Master
Development Plan results in timelier
processing of subsequent APDs. Each
subsequent proposed well must have a
survey plat and an APD (Form 3160–3)
that references the Master Development
Plan and any specific variations for that
well.
IV. General Operating Requirements

ycherry on PROD1PC64 with RULES2

Operator Responsibilities
In the APD package, the operator must
describe or show, as set forth in this
Order, the procedures, equipment, and
materials to be used in the proposed
operations. The operator must conduct
operations to minimize adverse effects

VerDate Aug<31>2005

18:43 Mar 06, 2007

Jkt 211001

to surface and subsurface resources,
prevent unnecessary surface
disturbance, and conform with currently
available technology and practice.
While appropriate compliance with
certain statutes, such as NEPA, the
National Historic Preservation Act, and
the Endangered Species Act, are Federal
responsibilities, the operator may
choose to conduct inventories and
provide documentation to assist the
BLM or the Surface Managing Agency to
meet these requirements. The
inventories and other work may require
entering the lease and adjacent lands
before approval of the APD. As in
Staking and Surveying, the operator
should make a good faith effort to
contact the Surface Managing Agency or
surface owner before entry upon the
lands for these purposes.
The operator can not commence
either drilling operations or preliminary
construction activities before the BLM’s
approval of the APD. A copy of the
approved APD and any Conditions of
Approval must be available for review at
the drill site. Operators are responsible
for their contractor and subcontractor’s
compliance with the requirements of the
approved APD and/or Surface Use Plan
of Operations. Drilling without approval
or causing surface disturbance without
approval is a violation of 43 CFR
3162.3–1(c) and is subject to a monetary
assessment under 43 CFR 3163.1(b)(2).
The operator must comply with the
provisions of the approved APD and
applicable laws, regulations, Orders,
and Notices to Lessees, including, but
not limited to, those that address the
issues described below.
a. Cultural and Historic Resources. If
historic or archaeological materials are
uncovered during construction, the
operator must immediately stop work
that might further disturb such
materials, contact the BLM and if
appropriate, the FS or other Surface
Managing Agency. The BLM or the FS
will inform the operator within 7 days
after the operator contacted the BLM as
to whether the materials appear eligible
for listing on the National Register of
Historic Places.
If the operator decides to relocate
operations to avoid further costs to
mitigate the site, the operator remains
responsible for recording the location of
any historic or archaeological resource
that are discovered as a result of the
operator’s actions. The operator also is
responsible for stabilizing the exposed
cultural material if the operator created
an unstable condition that must be
addressed immediately. The BLM, the
FS, or other appropriate Surface
Managing Agency, will assume
responsibility for evaluation and

PO 00000

Frm 00029

Fmt 4701

Sfmt 4700

10335

determination of significance related to
the historic or archaeological site.
If the operator does not relocate
operations, the operator is responsible
for mitigation and stabilization costs
and the BLM, the FS, or appropriate
Surface Managing Agency will provide
technical and procedural guidelines for
conducting mitigation. The operator
may resume construction operations
when the BLM or the FS verifies that the
operator has completed the required
mitigation.
Relocation of activities may subject
the proposal to additional
environmental review. Therefore, if the
presence of such sites is suspected, the
operator may want to submit alternate
locations for advance approval before
starting construction.
b. Endangered Species Act. To
comply with the Endangered Species
Act, as amended (16 U.S.C. 1531 et
seq.), and its implementing regulations,
the operator must conduct all operations
such that all operations avoid a ‘‘take’’
of listed or proposed threatened or
endangered species and their critical
habitats.
c. Surface Protection. Except as
otherwise provided in an approved
Surface Use Plan of Operations, the
operator must not conduct operations in
areas subject to mass soil movement,
riparian areas, floodplains, lakeshores,
and/or wetlands. The operator also must
take measures to minimize or prevent
erosion and sediment production. Such
measures may include, but are not
limited to:
• Avoiding steep slopes and
excessive land clearing when siting
structures, facilities, and other
improvements; and
• Temporarily suspending operations
when frozen ground, thawing, or other
weather-related conditions would cause
otherwise avoidable or excessive
impacts.
d. Safety Measures. The operator must
maintain structures, facilities,
improvements, and equipment in a safe
condition in accordance with the
approved APD. The operator must also
take appropriate measures as specified
in Orders and Notices to Lessees to
protect the public from any hazardous
conditions resulting from operations.
In the event of an emergency, the
operator may take immediate action
without prior Surface Managing Agency
approval to safeguard life or to prevent
significant environmental degradation.
The BLM or the FS must receive
notification of the emergency situation
and the remedial action taken by the
operator as soon as possible, but not
later than 24 hours after the emergency
occurred. If the emergency only affected

E:\FR\FM\07MRR2.SGM

07MRR2

10336

Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations

drilling operations and had no surface
impacts, only the BLM must be notified.
If the emergency involved surface
resources on other Surface Managing
Agency lands, the operator should also
notify the Surface Managing Agency and
private surface owner within 24 hours.
Upon conclusion of the emergency, the
BLM or the FS, where appropriate, will
review the incident and take
appropriate action.
e. Completion Reports. Within 30
days after the well completion, the
lessee or operator must submit to the
BLM two copies of a completed Form
3160–4, Well Completion or
Recompletion Report and Log. Well logs
may be submitted to the BLM in an
electronic format such as ‘‘.LAS’’
format. Surface and bottom-hole
locations must be in latitude and
longitude.

ycherry on PROD1PC64 with RULES2

V. Rights-of-Way and Special Use
Authorizations
The BLM or the FS will notify the
operator of any additional Rights-ofWay, Special Use Authorizations,
licenses, or other permits that are
needed for roads and support facilities
for drilling or off-lease access, as
appropriate. This notification will
normally occur at the time the operator
submits the APD or Notice of Staking
package, or Sundry Notice, or during the
onsite inspection.
The BLM or the FS, as appropriate,
will approve or accept on-lease
activities that are associated with
actions proposed in the APD or Sundry
Notice and that will occur on the lease
as part of the APD or Sundry Notice.
These actions do not require a Right-ofWay or Special Use Authorization. For
pipeline Rights-of-Way crossing lands
under the jurisdiction of two or more
Federal Surface Managing Agencies,
except lands in the National Park
Service or Indian lands, applications
should be submitted to the BLM. Refer
to 43 CFR parts 2800 and 2880 for
guidance on BLM Rights-of-Way and 36
CFR part 251 for guidance on FS Special
Use Authorizations.
A. Rights-of-Way (BLM)
For BLM lands, the APD package may
serve as the supporting document for
the Right-of-Way application in lieu of
a Right-of-Way plan of development.
Any additional information specified in
43 CFR parts 2800 and 2880 will be
required in order to process the Rightof-Way.
The BLM will notify the operator
within 10 days of receipt of a Notice of
Staking, APD, or other notification if
any parts of the project require a Rightof-Way. If a Right-of-Way is needed, the

VerDate Aug<31>2005

18:43 Mar 06, 2007

Jkt 211001

information required from the operator
to approve the Right-of-Way may be
submitted by the operator with the APD
package if the Notice of Staking option
has been used.
B. Special Use Authorizations (FS) (36
CFR 251 Subpart B)
When a Special Use Authorization is
required, the Surface Use Plan of
Operations may serve as the application
for the Special Use Authorization if the
facility for which a Special Use
Authorization is required is adequately
described (see 36 CFR 251.54(d)(ii)).
Conditions regulating the authorized
use may be imposed to protect the
public interest, to ensure compatibility
with other NFS lands programs and
activities consistent with the Forest
Land and Resources Management Plan.
A Special Use Authorization, when
related to an APD, will include terms
and conditions (36 CFR 251.56) and
may require a specific reclamation plan
or incorporate applicable parts of the
Surface Use Plan of Operations by
reference.
VI. Operating on Lands With NonFederal Surface and Federal Oil and
Gas
The operator must submit the name,
address, and phone number of the
surface owner, if known, in its APD.
The BLM will invite the surface owner
to the onsite inspection to assure that
their concerns are considered. As
provided in the oil and gas lease, the
BLM may request that the applicant
conduct surveys or otherwise provide
information needed for the BLM’s
National Historic Preservation Act
consultation with the State Historic
Preservation Officer or Indian tribe or its
Endangered Species Act consultation
with the relevant fisheries agency. The
Federal mineral lessee has the right to
enter the property for this purpose,
since it is a necessary prerequisite to
development of the dominant mineral
estate. Nevertheless, the lessee or
operator should seek to reach agreement
with the surface owner about the time
and method by which any survey would
be conducted.
Likewise, in the case of actual oil and
gas operations, the operator must make
a good faith effort to notify the private
surface owner before entry and make a
good faith effort to obtain a Surface
Access Agreement from the surface
owner. This section also applies to
lands with Indian trust surface and
Federal minerals. In these cases, the
operator must make a good faith effort
to obtain surface access agreement with
the tribe in the case of tribally owned
surface, otherwise with the majority of

PO 00000

Frm 00030

Fmt 4701

Sfmt 4700

the Indian surface owners who can be
located with the assistance and
concurrence of the BIA. The Surface
Access Agreement may include terms or
conditions of use, be a waiver, or an
agreement for compensation. The
operator must certify to the BLM that:
(1) It made a good faith effort to notify
the surface owner before entry; and (2)
That an agreement with the surface
owner has been reached or that a good
faith effort to reach an agreement failed.
If no agreement was reached with the
surface owner, the operator must submit
an adequate bond (minimum of $1,000)
to the BLM for the benefit of the surface
owner sufficient to: (1) Pay for loss or
damages; or (2) As otherwise required
by the specific statutory authority under
which the surface was patented and the
terms of the lease.
Surface owners have the right to
appeal the sufficiency of the bond.
Before the approval of the APD, the
BLM will make a good faith effort to
contact the surface owner to assure that
they understand their rights to appeal.
The BLM must comply with NEPA,
the National Historic Preservation Act,
the Endangered Species Act, and related
Federal statutes when authorizing lease
operations on split estate lands where
the surface is not federally owned and
the oil and gas is Federal. For split
estate lands within FS administrative
boundaries, the BLM has the lead
responsibility, unless there is a local
BLM/FS agreement that gives the FS
this responsibility.
The operator must make a good faith
effort to provide a copy of their Surface
Use Plan of Operations to the surface
owner. After the APD is approved the
operator must make a good faith effort
to provide a copy of the Conditions of
Approval to the surface owner. The APD
approval is not contingent upon
delivery of a copy of the Conditions of
Approval to the surface owner.
VII. Leases for Indian Oil and Gas
A. Approval of Operations
The BLM will process APDs, Master
Development Plans, and Sundry Notices
on Indian tribal and allotted oil and gas
leases, and Indian Mineral Development
Act mineral agreements in a manner
similar to Federal leases. For processing
such applications, the BLM considers
the BIA to be the Surface Managing
Agency. Operators are responsible for
obtaining any special use or access
permits from appropriate BIA and,
where applicable, tribal offices. The
BLM is not required to post for public
inspection APDs for minerals subject to
Indian oil and gas leases or agreements.

E:\FR\FM\07MRR2.SGM

07MRR2

Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations
B. Surface Use
Where the wellsite and/or access road
is proposed on Indian lands with a
different beneficial owner than the
minerals, the operator is responsible for
entering into a surface use agreement
with the Indian tribe or the individual
Indian surface owner, subject to BIA
approval. This agreement must specify
the requirements for protection of
surface resources, mitigation, and
reclamation of disturbed areas. The BIA,
the Indian surface owner, and the BLM,
pursuant to 25 CFR 211.4, 212.4 and
225.4, will develop the Conditions of
Approval. If the operator is unable to
obtain a surface access agreement, it
may provide a bond for the benefit of
the surface owner(s) (see Section VI. of
the Order).
VIII. Subsequent Operations and
Sundry Notices
Subsequent operations must follow 43
CFR part 3160, applicable lease
stipulations, and APD Conditions of
Approval. The operator must file the
Sundry Notice in the BLM Field Office
having jurisdiction over the lands
described in the notice or the operator
may file it using the BLM’s electronic
commerce system.

ycherry on PROD1PC64 with RULES2

A. Surface Disturbing Operations
Lessees and operators must submit for
BLM or FS approval a request on Form
3160–5 before:
• Undertaking any subsequent new
construction outside the approved area
of operations; or
• Reconstructing or altering existing
facilities including, but not limited to,
roads, emergency pits, firewalls,
flowlines, or other production facilities
on any lease that will result in
additional surface disturbance.
If, at the time the original APD was
filed, the lessee or operator elected to
defer submitting information under
Section III.E.3.d. (Location of Existing
and/or Proposed Facilities) of this
Order, the lessee or operator must
supply this information before
construction and installation of the
facilities. The BLM, in consultation with
any other involved Surface Managing
Agency, may require a field inspection
before approving the proposal. The
lessee or operator may not begin
construction until the BLM approves the
proposed plan in writing.
The operator must certify on Form
3160–5 that they have made a good faith
effort to provide a copy of any proposal
involving new surface disturbance to
the private surface owner in the case of
split estate.

VerDate Aug<31>2005

18:43 Mar 06, 2007

Jkt 211001

10337

B. Emergency Repairs
Lessees or operators may undertake
emergency repairs without prior
approval if they promptly notify the
BLM. Lessees or operators must submit
sufficient information to the BLM or the
FS to permit a proper evaluation of any:
• Resulting surface disturbing
activities; or
• Planned accommodations necessary
to mitigate potential adverse
environmental effects.

any abandonment or reclamation. The
BLM approval of the partial
abandonment under this section,
completion of any required reclamation
operations, and the signed release
agreement will relieve the operator of
further obligation for the well. If the
Surface Managing Agency or private
surface owner acquires the well for
water use purposes, the party acquiring
the well assumes liability for the well.

IX. Well Conversions

The operator may make a written
request to the agency with jurisdiction
to request a variance from this Order. A
request for a variance must explain the
reason the variance is needed and
demonstrate how the operator will
satisfy the intent of the Order. The
operator may include the request in the
APD package. A variance from the
requirements of this Order does not
constitute a variance to provisions of
other regulations, laws, or orders. When
the BLM is the decision maker on a
request for a variance, the decision
whether to grant or deny the variance
request is entirely within the BLM’s
discretion. The decision on a variance
request is not subject to administrative
appeals either to the State Director or
pursuant to 43 CFR part 4.

A. Conversion to an Injection Well
When subsequent operations will
result in a well being converted to a
Class II injection well (i.e., for disposal
of produced water, oil and gas
production enhancement, or
underground storage of hydrocarbons),
the operator must file with the
appropriate BLM office a Sundry Notice,
Notice of Intent to Convert to Injection
on Form 3160–5. The BLM and the
Surface Managing Agency, if applicable,
will review the information to ensure its
technical and administrative adequacy.
Following the review, the BLM, in
consultation with the Surface Managing
Agency, where applicable, will decide
upon the approval or disapproval of the
application based upon relevant laws
and regulations and the circumstances
(e.g., the well used for lease or non-lease
operations, surface ownership, and
protection of subsurface mineral
ownership). The BLM will determine if
a Right-of-Way or Special Use
Authorization and additional bonding
are necessary and notify the operator.
B. Conversion to a Water Supply Well
In cases where the Surface Managing
Agency or private surface owner desires
to acquire an oil and gas well and
convert it to a water supply well or
acquire a water supply well that was
drilled by the operator to support lease
operations, the Surface Managing
Agency or private surface owner must
inform the appropriate BLM office of its
intent before the approval of the APD in
the case of a dry hole and no later than
the time a Notice of Intent to Abandon
is submitted for a depleted production
well. The operator must abandon the
well according to BLM instructions, and
must complete the surface cleanup and
reclamation, in conjunction with the
approved APD, Surface Use Plan of
Operations, or Notice of Intent to
Abandon, if the BLM or the FS require
it. The Surface Managing Agency or
private surface owner must reach
agreement with the operator as to the
satisfactory completion of reclamation
operations before the BLM will approve

PO 00000

Frm 00031

Fmt 4701

Sfmt 4700

X. Variances

XI. Waivers, Exceptions, or
Modifications
An operator may also request that the
BLM waive (permanently remove),
except (case-by-case exemption) or
modify (permanently change) a lease
stipulation for a Federal lease. In the
case of Federal leases, a request to
waive, except, or modify a stipulation
should also include information
demonstrating that the factors leading to
its inclusion in the lease have changed
sufficiently to make the protection
provided by the stipulation no longer
justified or that the proposed operation
would not cause unacceptable impacts.
When the waiver, exception, or
modification is substantial, the
proposed waiver, exception, or
modification is subject to public review
for 30 days. Prior to such public review,
the BLM, and when applicable the FS,
will post it in their local Field Office
and, when possible, electronically on
the internet. When the request is
included in the Notice of Staking or
APD, the request will be included as
part of the application posting under
Section III.C. of this Order. Prior to
granting a waiver, exception, or
modification, the BLM will obtain the
concurrence or approval of the FS or
Federal Surface Managing Agency.
Decisions on such waivers, exceptions,

E:\FR\FM\07MRR2.SGM

07MRR2

10338

Federal Register / Vol. 72, No. 44 / Wednesday, March 7, 2007 / Rules and Regulations

or modifications are subject to appeal
pursuant to 43 CFR part 4.
After drilling has commenced, the
BLM and the FS may consider verbal
requests for waivers, exceptions, or
modifications. However, the operator
must submit a written notice within 7
days after the verbal request. The BLM
and the FS will confirm in writing any
verbal approval. Decisions on waivers,
exceptions, or modifications submitted
after drilling has commenced are final
for the Department of the Interior and
not subject to administrative review by
the State Director or appeal pursuant to
43 CFR part 4.
XII. Abandonment
In accordance with the requirements
of 43 CFR 3162.3–4, before starting
abandonment operations the operator
must submit a Notice of Intent to
Abandon on Sundry Notices and
Reports on Wells, Form 3160–5. If the
operator proposes to modify the plans
for surface reclamation approved at the
APD stage, the operator must attach
these modifications to the Notice of
Intent to Abandon.

ycherry on PROD1PC64 with RULES2

A. Plugging
The operator must obtain BLM
approval for the plugging of the well by
submitting a Notice of Intent to
Abandon. In the case of dry holes,
drilling failures, and in emergency
situations, verbal approval for plugging
may be obtained from the BLM, with the
Notice of Intent to Abandon promptly
submitted as written documentation.
Within 30 days following completion of
well plugging, the operator must file
with the BLM a Subsequent Report of
Plug and Abandon, using Sundry
Notices and Reports on Wells, Form
3160–5. For depleted production wells,
the operator must submit a Notice of
Intent to Abandon and obtain the BLM’s
approval before plugging.
B. Reclamation
Plans for surface reclamation are a
part of the Surface Use Plan of
Operations, as specified in Section
III.D.4.j., and must be designed to return
the disturbed area to productive use and
to meet the objectives of the land and
resource management plan. If the
operator proposes to modify the plans
for surface reclamation approved at the
APD stage, the operator must attach
these modifications to the Subsequent
Report of Plug and Abandon using
Sundry Notices and Reports on Wells,
Form 3160–5.
For wells not having an approved
plan for surface reclamation, operators
must submit to the BLM a proposal
describing the procedures to be

VerDate Aug<31>2005

18:43 Mar 06, 2007

Jkt 211001

followed for complete abandonment,
including a map showing the disturbed
area and roads to be reclaimed. The
BLM will forward the request to the FS
or other Surface Managing Agency. If
applicable, the private surface owner
will be notified and their views will be
carefully considered.
Earthwork for interim and final
reclamation must be completed within 6
months of well completion or well
plugging (weather permitting). All pads,
pits, and roads must be reclaimed to a
satisfactorily revegetated, safe, and
stable condition, unless an agreement is
made with the landowner or Surface
Managing Agency to keep the road or
pad in place. Pits containing fluid must
not be breached (cut) and pit fluids
must be removed or solidified before
backfilling. Pits may be allowed to air
dry subject to BLM or FS approval, but
the use of chemicals to aid in fluid
evaporation, stabilization, or
solidification must have prior BLM or
FS approval. Seeding or other activities
to reestablish vegetation must be
completed within the time period
approved by the BLM or the FS.
Upon completion of reclamation
operations, the lessee or operator must
notify the BLM or the FS using Form
3160–5, Final Abandonment Notice,
when the location is ready for
inspection. Final abandonment will not
be approved until the surface
reclamation work required in the
Surface Use Plan of Operations or
Subsequent Report of Plug and Abandon
has been completed to the satisfaction of
the BLM or the FS and Surface
Managing Agency, if appropriate.
XIII. Appeal Procedures
Complete information concerning the
review and appeal processes for BLM
actions is contained in 43 CFR part 4
and subpart 3165. Incorporation of a FS
approved Surface Use Plan of
Operations into the approval of an APD
or a Master Development Plan is not
subject to protest to the BLM or appeal
to the Interior Board of Land Appeals.
The FS’s decisions approving use of
NFS lands may be subject to agency
appeal procedures, in accordance with
36 CFR parts 215 or 251.
Decisions governing Surface Use Plan
of Operations and Special Use
Authorization approvals on NFS lands
that involve analysis, documentation,
and other requirements of the NEPA
may be subject to agency appeal
procedures, under 36 CFR part 215.
The FS’s regulations at 36 CFR part
251 govern appeals by an operator of
written FS decisions related to
Conditions of Approval or
administration of Surface Use Plans of

PO 00000

Frm 00032

Fmt 4701

Sfmt 4700

Operations or Special Use
Authorizations to occupy and use NFS
lands.
The operator may appeal decisions of
the BIA under 25 CFR part 2.
Attachment I—Sample Format for
Notice of Staking
Attachment I Sample Format for Notice
of Staking
(Not to be used in place of
Application for Permit to Drill or
Reenter Form 3160–3)
1. Oil Well
Gas Well
Other (Specify)
2. Name, Address, and Telephone of
Operator
3. Name and Telephone of Specific
Contact Person
4. Surface Location of Well
Attach:
(a) Sketch showing road entry onto
pad, pad dimensions, and reserve pit
(b) Topographical or other acceptable
map (e.g., a USGS 71⁄2″ Quadrangle)
showing location, access road, and lease
boundaries
5. Lease Number
6. If Indian, Allottee or Tribe Name
7. Unit Agreement Name
8. Well Name and Number
9. American Petroleum Institute (API)
Well Number (if available)
10. Field Name or Wildcat
11. Section, Township, Range,
Meridian; or Block and Survey; or Area
12. County, Parish, or Borough
13. State
14. Name and Depth of Formation
Objective(s)
15. Estimated Well Depth
16. For directional or horizontal
wells, anticipated bottom-hole location.
17. Additional Information (as
appropriate; include surface owner’s
name, address and, if known,
telephone).
18. Signed lllllTitlelllll
Date
Note: When the Bureau of Land
Management or the Forest Service, as
appropriate, receives this Notice, the agency
will schedule the date of the onsite
inspection. You must stake the location and
flag the access road before the onsite
inspection. Operators should consider the
following before the onsite inspection and
incorporate these considerations into the
Notice of Staking Option, as appropriate:

(a) H2S Potential;
(b) Cultural Resources (Archeology);
and
(c) Federal Right-of-Way or Special
Use Permit.
[FR Doc. 07–934 Filed 3–6–07; 8:45 am]
BILLING CODES 3410–11–P; 4310–84–P

E:\FR\FM\07MRR2.SGM

07MRR2


File Typeapplication/pdf
File TitleDocument
SubjectExtracted Pages
AuthorU.S. Government Printing Office
File Modified2007-11-14
File Created2007-03-07

© 2024 OMB.report | Privacy Policy