Supporting Statement A
Waste Prevention, Production Subject to Royalties, and Resource Conservation (43 CFR Parts 3160 and 3170)
OMB Control Number 1004-0211
Terms of Clearance: None.
General Instructions
A completed Supporting Statement A must accompany each request for approval of a collection of information. The Supporting Statement must be prepared in the format described below, and must contain the information specified below. If an item is not applicable, provide a brief explanation. When the question “Does this ICR contain surveys, censuses, or employ statistical methods?” is checked "Yes," then a Supporting Statement B must be completed. OMB reserves the right to require the submission of additional information with respect to any request for approval.
Specific Instructions
Justification
1. Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection.
The Bureau of Land Management (BLM) is promulgating a rule that will update standards to reduce wasteful venting, flaring, and leaks of natural gas from onshore wells. The rule applies to Federal and Indian (except Osage Tribe) oil and gas leases. The rule establishes requirements and incentives to reduce waste of gas and clarify when royalties apply to lost gas.
The information collection activities in the rule address production tests, well purging, gas conservation plans, storage vessel and tank emissions, pneumatic devices, and leak detection and repair.
The Secretary of the Interior has authority under various Federal and Indian mineral leasing laws to manage oil and gas operations on Federal and Indian (except Osage Tribe) lands, including:
The Mineral Leasing Act, 30 U.S.C. 181 et seq.;
The Mineral Leasing Act for Acquired Lands, 30 U.S.C. 351-360
The Federal Oil and Gas Royalty Management Act, 30 U.S.C. 1701-1759;
The Indian Mineral Leasing Act, 25 U.S.C. 396 and 396a;
The Indian Mineral Development Act, 25 U.S.C. 2101-2108; and
The National Environmental Policy Act of 1969, 42 U.S.C. 4321-4370h.
2. Indicate how, by whom, and for what purpose the information is to be used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection. Be specific. If this collection is a form or a questionnaire, every question needs to be justified.
Except for the recordkeeping required by 43 CFR 3179.305, the information-collection activities in the final rule involve new uses and burdens for BLM Forms 3160-3 and 3160-5, the use of which has been cleared by OMB under control number 1004-0137, Onshore Oil and Gas Operations (43 CFR part 3160) (expiration date January 31, 2018). After this rule goes into effect, the BLM plans to request that OMB merge the new uses and burdens of Forms 3160-3 and 3160-5 with control number 1004-0137.
The information collection activities in this rule are described below along with estimates of the annual burdens. Included in the burden estimates are the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing each component of the information collection.
This rule adds a new provision to 43 CFR 3162.3-1 that requires a plan to minimize waste of natural gas when submitting an APD for a development oil well. This information is in addition to the APD information that the BLM already collects under OMB Control Number 1004-0137. The required elements of the waste minimization plan are listed at paragraphs (j)(1) through (j)(7).
Request for Approval for Royalty-Free Uses On-Lease or Off-Lease (43 CFR 3178.5, 3178.7, 3178.8, and 3178.9)
Section 3178.5 requires submission of a Sundry Notice (Form 3160-5) to request prior written BLM approval for use of gas royalty-free for the following operations and production purposes on the lease, unit or communitized area:
Using oil or gas that an operator removes from the pipeline at a location downstream of the facility measurement point (FMP);
Removal of gas initially from a lease, unit PA, or communitized area for treatment or processing because of particular physical characteristics of the gas, prior to use on the lease, unit PA or communitized area; and
Any other type of use of produced oil or gas for operations and production purposes pursuant to § 3178.3 that is not identified in § 3178.4.
Section 3178.7 requires submission of a Sundry Notice (Form 3160-5) to request prior written BLM approval for off-lease royalty-free uses in the following circumstances:
The equipment or facility in which the operation is conducted is located off the lease, unit, or communitized area for engineering, economic, resource-protection, or physical-accessibility reasons; and
The operations are conducted upstream of the FMP.
Section 3178.8 requires that an operator measure or estimate the volume of royalty-free gas used in operations upstream of the FMP. In general, the operator is free to choose whether to measure or estimate, with the exception that the operator must in all cases measure the following volumes:
Royalty-free gas removed downstream of the FMP and used pursuant to sections 3178.4 through 3178.7; and
Royalty-free oil used pursuant to sections 3178.4 through 3178.7.
If oil is used on the lease, unit or communitized area, it is most likely to be removed from a storage tank on the lease, unit or communitized area. Thus, this regulation also requires the operator to document the removal of the oil from the tank or pipeline.
Section 3178,8(e) requires that operators use best available information to estimate gas volumes, where estimation is allowed. For both oil and gas, the operator must report the volumes measured or estimated, as applicable, under ONRR reporting requirements. As revisions to Onshore Oil and Gas Orders No. 4 and 5 have now been finalized as 43 CFR subparts 3174 and 3175, respectively, the final rule text now references § 3173.12, as well as §3178.4 through §3178.7 to clarify that royalty-free use must adhere to the provisions in those sections.
Section 3178.9 requires the following additional information in a request for prior approval of royalty-free use under section 3178.5, or for prior approval of off-lease royalty-free use under section 3178.7:
A complete description of the operation to be conducted, including the location of all facilities and equipment involved in the operation and the location of the FMP;
The volume of oil or gas that the operator expects will be used in the operation and the method of measuring or estimating that volume;
If the volume expected to be used will be estimated, the basis for the estimate (e.g., equipment manufacturer’s published consumption or usage rates); and
The proposed disposition of the oil or gas used (e.g., whether gas used would be consumed as fuel, vented through use of a gas-activated pneumatic controller, returned to the reservoir, or disposed by some other method).
Section 3179.8 applies only to leases issued before the effective date of the final rule and to operators choosing to comply with the capture requirement in section 3179.7 on a lease-by-lease, unit-by-unit, or communitized area-by-communitized area basis. The regulation provides that operators who meet those parameters may seek BLM approval of a capture percentage other than that which is applicable under 43 CFR 3179.7. The operator must submit a Sundry Notice (Form 3160-5) that includes the following information:
The name, number, and location of each of the operator’s wells, and the number of the lease, unit, or communitized area with which it is associated; and
The oil and gas production levels of each of the operator’s wells on the lease, unit, or communitized area for the most recent production month for which information is available and the volumes being vented and flared from each well.
In addition, the request must include map(s) showing:
The entire lease, unit, or communitized area, and the surrounding lands to a distance and on a scale that shows the field in which the well is or will be located (if applicable), and all pipelines that could transport the gas from the well;
All of the operator’s producing oil and gas wells, which are producing from Federal or Indian leases, (both on Federal or Indian leases and on other properties) within the map area;
Identification of all of the operator’s wells within the lease from which gas is flared or vented, and the location and distance of the nearest gas pipeline(s) to each such well, with an identification of those pipelines that are or could be available for connection and use; and
Identification of all of the operator’s wells within the lease from which gas is captured;
The following information is also required:
Data that show pipeline capacity and the operator’s projections of the cost associated with installation and operation of gas capture infrastructure, to the extent that the operator is able to obtain this information, as well as cost projections for alternative methods of transportation that do not require pipelines; and
Projected costs of and the combined stream of revenues from both gas and oil production, including:
The operator’s projections of gas prices, gas production volumes, gas quality (i.e., heating value and H2S content), revenues derived from gas production, and royalty payments on gas production over the next 15 years or the life of the operator’s lease, unit, or communitized area, whichever is less; and
The operator’s projections of oil prices, oil production volumes, costs, revenues, and royalty payments from the operator’s oil and gas operations within the lease over the next 15 years or the life of the operator’s lease, unit, or communitized area, whichever is less.
Section 3179.7 requires operators flaring gas from development oil wells to capture a specified percentage of the operator’s adjusted volume of gas produced over the relevant area. The “relevant area” is each of the operator’s leases, units, or communitized areas, unless the operator chooses to comply on a county- or State-wide basis and the operator notifies the BLM of its choice by Sundry Notice (Form 3160-5)by January 1 of the relevant year.
Section 3179.102 lists several requirements pertaining to gas that reaches the surface during well completion and related operations. An operator may seek an exemption from these requirements by submitting a Sundry Notice (Form 3160-5) that includes the following information:
(1) The name, number, and location of each of the operator’s wells, and the number of the lease, unit, or communitized area with which it is associated;
(2) The oil and gas production levels of each of the operator’s wells on the lease, unit or communitized area for the most recent production month for which information is available;
(3) Data that show the costs of compliance; and
(4) Projected costs of and the combined stream of revenues from both gas and oil production, including: the operator’s projections of oil and gas prices, production volumes, quality (i.e., heating value and H2S content), revenues derived from production, and royalty payments on production over the next 15 years or the life of the operator’s lease, unit, or communitized area, whichever is less.
The rule also provides that an operator that is in compliance with the EPA regulations for well completions under 40 CFR part 60, subpart OOOO or subpart OOOOa is deemed in compliance with the requirements of this section. As a practical matter, all hydraulically fractured or refractured wells are now subject to the EPA requirements, so the BLM does not believe that the requirements of this section would have any independent effect, or that any operator would request an exemption from the requirements of this section, as long as the EPA requirements remain in effect. For this reason, the BLM is not estimating any PRA burdens for § 3179.102.
Section 3179.103 allows gas to be flared royalty-free during initial production testing. The regulation lists specific volume and time limits for such testing. An operator may seek an extension of those limits on royalty-free flaring by submitting a Sundry Notice (Form 3160-5) to the BLM.
Section 3179.104 allows gas to be flared royalty-free for no more than 24 hours during well tests subsequent to the initial production test. The operator may seek authorization to flare royalty-free for a longer period by submitting a Sundry Notice (Form 3160-5) to the BLM.
Reporting of Venting or Flaring (43 CFR 3179.105)
Section 3179.105 allows an operator to flare gas royalty-free during a temporary, short-term, infrequent, and unavoidable emergency. Venting gas is permissible if flaring is not feasible during an emergency. The regulation defines limited circumstances that constitute an emergency, and other circumstances that do not constitute an emergency.
The operator must estimate and report to the BLM on a Sundry Notice (Form 3160-5) volumes flared or vented in circumstances that, as provided by 43 CFR 3179.105, do not constitute emergencies for the purposes of royalty assessment:
(1) More than 3 failures of the same component within a single piece of equipment within any 365-day period;
(2) The operator’s failure to install appropriate equipment of a sufficient capacity to accommodate the production conditions;
(3) Failure to limit production when the production rate exceeds the capacity of the related equipment, pipeline, or gas plant, or exceeds sales contract volumes of oil or gas;
(4) Scheduled maintenance;
(5) A situation caused by operator negligence; or
(6) A situation on a lease, unit, or communitized area that has already experienced 3 or more emergencies within the past 30 days, unless the BLM determines that the occurrence of more than 3 emergencies within the 30 day period could not have been anticipated and was beyond the operator’s control.
Pneumatic Controllers Introduction
Section 3179.201 pertains to any pneumatic controller that: (1) is not subject to EPA regulations at 40 CFR 60.5360 through 60.5390, but would be subject to those regulations if it were a new or modified source; and (2) has a continuous bleed rate greater than 6 standard cubic feet (scf) per hour. Section 3179.201(b) requires operators to replace each high-bleed pneumatic controller with a controller with a bleed rate lower than 6 scf per hour within 1 year of the effective date of the rule, unless (1) the pneumatic controller exhaust is routed to processing equipment; (2) the pneumatic controller exhaust was, as of the effective date of the rule, and continues to be routed to a flare device or low pressure combustor; or (3) one of the following applies:
Notification of Functional Needs for a Pneumatic Controller (43 CFR 3179.201(b)(1)
The operator notifies the BLM through a Sundry Notice (Form 3160-5) that use of a pneumatic controller with a bleed rate greater than 6 scf per hour is required based on functional needs that may include, but are not limited to, response time, safety, and positive actuation, and the Sundry Notice (Form 3160-5) describes those functional needs.
Showing that Cost of Compliance Would Cause Cessation of Production and Abandonment of Oil Reserves (43 CFR 3175.201(b)(4) and 3175.201(c))
The operator demonstrates to the BLM through a Sundry Notice (Form 3160-5), and the BLM agrees, that replacement of a pneumatic controller would impose such costs as to cause the operator to cease production and abandon significant recoverable oil reserves under the lease. The Sundry Notice (Form 3160-5) must include the following information:
(1) The name, number, and location of each of the operator’s wells, and the number of the lease, unit, or communitized area with which it is associated;
(2) The oil and gas production levels of each of the operator’s wells on the lease, unit or communitized area for the most recent production month for which information is available;
(3) Data that show the costs of compliance;
(4) Projected costs of and the combined stream of revenues from both gas and oil production, including: the operator’s projections of gas prices, gas production volumes, gas quality (i.e., heating value and H2S content), revenues derived from gas production, and royalty payments on gas production over the next 15 years or the life of the operator’s lease, unit, or communitized area, whichever is less; and the operator’s projections of oil prices, oil production volumes, costs, revenues, and royalty payments from the operator’s oil and gas operations within the lease over the next 15 years or the life of the operator’s lease, unit, or communitized area, whichever is less.
Showing in Support of Replacement of Pneumatic Controller within 3 Years (43 CFR 3179.201(d))
The operator may replace a high-bleed pneumatic controller within 3 years of the effective date of the rule (instead of within 1 year of the effective date) if the operator notifies the BLM through a Sundry Notice (Form 3160-5) that the well or facility that the pneumatic controller serves has an estimated remaining productive life of 3 years or less from the effective date of the rule.
With some exceptions, section 3179.202 pertains to any pneumatic diaphragm pump that: (1) Uses natural gas produced from a Federal or Indian lease, or from a unit or communitized area that includes a Federal or Indian lease; and (2) Is not subject to EPA regulations at 40 CFR 60.5360 through 60.5390, but would be subject to those regulations if it were a new or modified source. This regulation generally requires replacement of such a pump with a zero-emissions pump or routing of the pump’s exhaust gas to processing equipment for capture and sale within 1 year of the effective date of the final rule.
This requirement does not apply to pneumatic diaphragm pumps that do not vent exhaust gas to the atmosphere. In addition, this requirement does not apply if one of the following applies:
Showing that a Pneumatic Diaphragm Pump was Operated on Fewer than 90 Individual Days in the Prior Calendar Year (43 CFR 3179.202(b)(2))
A pneumatic diaphragm pump is not subject to section 3179.202 if the operator documents in a Sundry Notice (Form 3160-5) that the pump was operated fewer than 90 days in the prior calendar year.
Notification of Functional Needs for a Pneumatic Diaphragm Pump (43 CFR 3179.202(d))
In lieu of replacing a pneumatic diaphragm pump or routing the pump exhaust gas to processing equipment, an operator may submit a Sundry Notice (Form 3160-5) to the BLM showing that replacing the pump with a zero emissions pump is not viable because a pneumatic pump is necessary to perform the function required, and that routing the pump exhaust gas to processing equipment for capture and sale is technically infeasible or unduly costly.
Showing that Cost of Compliance Would Cause Cessation of Production and Abandonment of Oil Reserves (43 CFR 3175.202(f) and (g))
An operator may seek an exemption from the replacement requirement by submitting a Sundry Notice (Form 3160-5) to the BLM that provides an economic analysis that demonstrates that compliance with these requirements would impose such costs as to cause the operator to cease production and abandon significant recoverable oil reserves under the lease. The Sundry Notice (Form 3160-5) must include the following information:
(1) Well information that must include: (i) The name, number, and location of each well, and the number of the lease, unit, or communitized area with which it is associated; and (ii) The oil and gas production levels of each of the operator’s wells on the lease, unit or communitized area for the most recent production month for which information is available;
(2) Data that show the costs of compliance with paragraphs (c) through (e) of § 3179.202; and
(3) The operator’s estimate of the costs and revenues of the combined stream of revenues from both the gas and oil components, including: (i) The operator’s projections of gas prices, gas production volumes, gas quality (i.e., heating value and H2S content), revenues derived from gas production, and royalty payments on gas production over the next 15 years or the life of the operator’s lease, unit, or communitized area, whichever is less; and (ii) the operator’s projections of oil prices, oil production volumes, costs, revenues, and royalty payments from the operator’s oil and gas operations within the lease over the next 15 years or the life of the operator’s lease, unit, or communitized area, whichever is less.
Showing in Support of Replacement of Pneumatic Diaphragm Pump within 3 Years (43 CFR 3179.202(h))
The operator may replace a pneumatic diaphragm pump within 3 years of the effective date of the rule (instead of within 1 year of the effective date) if the operator notifies the BLM through a Sundry Notice (Form 3160-5) that the well or facility that the pneumatic controller serves has an estimated remaining productive life of 3 years or less from the effective date of the rule.
A storage vessel is subject to 43 CFR 3179.203(c) if the vessel: (1) contains production from a Federal or Indian lease, or from a unit or communitized area that includes a Federal or Indian lease; and (2) Is not subject to any of the requirements of EPA regulations at 40 CFR part 60, subpart OOOO, but would be subject to that subpart if it were a new or modified source.
Within 60 days after the effective date of this section, and within 30 days after any new source of production is added to the tank, the operator must determine, record, and make available to the BLM upon request, whether the storage vessel has the potential for VOC emissions equal to or greater than 6 tpy based on the maximum average daily throughput for a 30-day period of production. The determination may take into account requirements under a legally and practically enforceable limit in an operating permit or other requirement established under a federal, state, local or tribal authority that limit the VOC emissions to less than 6 tpy.
If a storage vessel has the potential for VOC emissions equal to or greater than 6 tpy, no later than 1 year after the effective date of this section, or 3 years if the operator must and will replace the storage vessel at issue in order to comply with the requirements of this section, the operator must:
(1) Route all tank vapor gas from the storage vessel to a sales line;
(2) If the operator determines that compliance with paragraph (c)(1) of this section is technically infeasible or unduly costly, route all tank vapor gas from the storage vessel to a device or method that ensures continuous combustion of the tank vapor gas; or
(3) Submit an economic analysis to the BLM through a Sundry Notice (Form 3160-5) that demonstrates, and the BLM agrees, based on the information identified in paragraph (d) of this section, that compliance with paragraph (c)(2) of this section would impose such costs as to cause the operator to cease production and abandon significant recoverable oil reserves under the lease.
To support the demonstration described above, the operator must submit a Sundry Notice (Form 3160-5) that includes the following information:
(1) The name, number, and location of each well, and the number of the lease, unit, or communitized area with which it is associated;
(2) The oil and gas production levels of each of the operator’s wells on the lease, unit or communitized area for the most recent production month for which information is available;
(3) Data that show the costs of compliance with paragraph (c)(1) or (c)(2) of this section on the lease; and
(4) The operator must consider the costs and revenues of the combined stream of revenues from both the gas and oil components, including: the operator’s projections of oil and gas prices, production volumes, quality (i.e., heating value and H2S content), revenues derived from production, and royalty payments on production over the next 15 years or the life of the operator’s lease, unit, or communitized area, whichever is less.
The operator must minimize vented gas and the need for well venting associated with downhole well maintenance and liquids unloading, consistent with safe operations. Before the operator manually purges a well for liquids unloading for the first time after the effective date of this section, the operator must consider other methods for liquids unloading and determine that they are technically infeasible or unduly costly. The operator must provide information supporting that determination as part of a Sundry Notice (Form 3160-5) within 30 calendar days after the first liquids unloading event by manual or automated well purging conducted after the effective date of this section. This requirement applies to each well the operator operates.
For any liquids unloading by manual well purging, the operator must:
(1) Ensure that the person conducting the well purging remains present on-site throughout the event to minimize to the maximum extent practicable any venting to the atmosphere;
(2) Record the cause, date, time, duration, and estimated volume of each venting event; and
(3) Maintain the records for the period required under § 3162.4-1 and make them available to the BLM, upon request.
The operator must notify the BLM by Sundry Notice (Form 3160-5), within 30 calendar days, if:
(1) The cumulative duration of manual well purging events for a well exceeds 24 hours during any production month; or
(2) The estimated volume of gas vented in liquids unloading by manual well purging operations for a well exceeds 75 Mcf during any production month.
Sections 3179.301 through 3179.305 include information collection activities pertaining to the detection and repair of gas leaks during production operations. These regulations require operators to inspect all equipment covered under § 3179.301(a) for gas leaks.
Section 3179.301(j) allows an operator to satisfy the requirements of §§ 3179.301 through 3179.305 for some or all of the equipment or facilities on a given lease by notifying the BLM in a Sundry Notice (Form 3160-5) that the operator is complying with EPA requirements established pursuant to 40 CFR part 60 with respect to such equipment or facilities.
Leak Detection Request to Use an Alternative Monitoring Device and Protocol (43 CFR 3179.302(c))
Section 3175.302 specifies the instruments and methods that an operator may use to detect leaks. Section 3175.302(d) allows the BLM to approve an alternative monitoring device and associated inspection protocol if the BLM finds that the alternative would achieve equal or greater reduction of gas lost through leaks compared with the approach specified in §3179.302(a)(1) when used according to § 3179.303(a).
Any person may request approval of an alternative monitoring device and protocol by submitting a Sundry Notice (Form 3160-5) to BLM that includes the following information: (1) Specifications of the proposed monitoring device, including a detection limit capable of supporting the desired function; (2) The proposed monitoring protocol using the proposed monitoring device, including how results will be recorded; (3) Records and data from laboratory and field testing, including but not limited to performance testing; (4) A demonstration that the proposed monitoring device and protocol will achieve equal or greater reduction of gas lost through leaks compared with the approach specified in the regulations; (5) Tracking and documentation procedures; and (6) Proposed limitations on the types of sites or other conditions on deploying the device and the protocol to achieve the demonstrated results.
Leak Detection Operator Request to Use an Alternative Leak Detection Program (43 CFR 3179.303(b))
Section 3179.303(b) allows an operator to submit a Sundry Notice (Form 3160-5) requesting authorization to detect gas leaks using an alternative instrument-based leak detection program, different from the specified requirement to inspect each site semi-annually using an approved monitoring device.
To obtain approval for an alternative leak detection program, the operator must submit a Sundry Notice (Form 3160-5) that includes the following information:
(1) A detailed description of the alternative leak detection program, including how it will use one or more of the instruments specified in or approved under § 3179.302(a) and an identification of the specific instruments, methods and/or practices that would substitute for specific elements of the approach specified in §§ 3179.302(a) and 3179.303(a);
(2) The proposed monitoring protocol;
(3) Records and data from laboratory and field testing, including, but not limited to, performance testing, to the extent relevant;
(4) A demonstration that the proposed alternative leak detection program will achieve equal or greater reduction of gas lost through leaks compared to compliance with the requirements specified in §§ 3179.302(a) and 3179.303(a);
(5) A detailed description of how the operator will track and document its procedures, leaks found, and leaks repaired; and
(6) Proposed limitations on types of sites or other conditions on deployment of the alternative leak detection program.
Leak Detection Operator Request for Exemption Allowing Use of an Alternative Leak-Detection Program that Does Not Meet Specified Criteria (43 CFR 3179.303(d))
An operator may seek authorization for an alternative leak detection program that does not achieve equal or greater reduction of gas lost through leaks compared to the required approach, if the operator demonstrates that compliance with the leak-detection regulations (including the option for an alternative program under 43 CFR 3179.303(b)) would impose such costs as to cause the operator to cease production and abandon significant recoverable oil or gas reserves under the lease. The BLM may approve an alternative leak detection program that does not achieve equal or greater reduction of gas lost through leaks, but is as effective as possible consistent with not causing the operator to cease production and abandon significant recoverable oil or gas reserves under the lease.
To obtain approval for an alternative program under this provision, the operator must submit a Sundry Notice (Form 3160-5) that includes the following information:
(1) The name, number, and location of each well, and the number of the lease, unit, or communitized area with which it is associated;
(2) The oil and gas production levels of each of the operator’s wells on the lease, unit or communitized area for the most recent production month for which information is available;
(3) Data that show the costs of compliance on the lease with the requirements of §§ 3179.301-305 and with an alternative leak detection program that meets the requirements of §3179.303(b);
(4) The operator must consider the costs and revenues of the combined stream of revenues from both the gas and oil components and provide the operator’s projections of oil and gas prices, production volumes, quality (i.e., heating value and H2S content), revenues derived from production, and royalty payments on production over the next 15 years or the life of the operator’s lease, unit, or communitized area, whichever is less;
(5) The information required to obtain approval of an alternative program under §3179.303(b), except that the estimated volume of gas that will be lost through leaks under the alternative program must be compared to the volume of gas lost under the required program, but does not have to be shown to be at least equivalent.
Leak Detection Notification of Delay in Repairing Leaks (43 CFR 3179.304(b))
Section 3179.304(a) requires an operator to repair any leak no later than 30 calendar days after discovery of the leak, unless there is good cause for delay in repair. If there is good cause for a delay beyond 30 calendar days, section 3179.304(b) requires the operator to submit a Sundry Notice (Form 3160-5) notifying the BLM of the cause.
Leak Detection Inspection Recordkeeping and Reporting (43 CFR 3179.305)
Section 3179.305 requires operators to maintain the following records and make them available to the BLM upon request: (1) For each inspection required under § 3179.303, documentation of the date of the inspection and the site where the inspection was conducted; (2) The monitoring method(s) used to determine the presence of leaks; (3) A list of leak components on which leaks were found; (4) The date each leak was repaired; and (5) The date and result of the follow-up inspection(s) required under § 3179.304. By March 31 each calendar year, the operator must provide to the BLM an annual summary report on the previous year’s inspection activities that includes: (1) The number of sites inspected; (2) The total number of leaks identified, categorized by the type of component; (3) The total number of leaks repaired; (4) The total number of leaks that were not repaired as of December 31 of the previous calendar year due to good cause and an estimated date of repair for each leak; and (5) A certification by a responsible officer that the information in the report is true and accurate.
Leak Detection Annual Reporting of Inspections (43 CFR 3179.305(b))
By March 31 each calendar year, the operator must provide to the BLM an annual summary report on the previous year’s inspection activities that includes:
(1) The number of sites inspected;
(2) The total number of leaks identified, categorized by the type of component;
(3) The total number of leaks repaired;
(4) The total number leaks that were not repaired as of December 31 of the previous calendar year due to good cause and an estimated date of repair for each leak.
(5) A certification by a responsible officer that the information in the report is true and accurate to the best of the officer’s knowledge.
3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses, and the basis for the decision for adopting this means of collection. Also describe any consideration of using information technology to reduce burden and specifically how this collection meets GPEA requirements.
We anticipate that most respondents will choose to comply with the information collection requirements electronically, although the regulations do not require them to do so. For the information collection activities that require use of the Sundry Notice (Form 3160-5), that form is electronically available to the public in fillable, printable format at: http://www.blm.gov/noc/st/en/business/eForms/3000-3999.html. Compliance with the requirement for a plan to minimize waste of natural gas, which must be submitted concurrently with an Application for Permit to Drill or Re-Enter (Form 3160-3), may be accomplished electronically by emailing the electronic or scanned files to the appropriate BLM office.
The sole remaining information collection activity is a required annual report of leak inspections. The final rule requires operators to use an instrument-based approach to leak detection, and operators are almost certain to submit the annual report electronically.
4. Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use for the purposes described in Item 2 above.
No duplication of information occurs on the information collection activities in the rule. The requested information is unique to each respondent and is not available from any other data source.
5. If the collection of information impacts small businesses or other small entities, describe any methods used to minimize burden.
We estimate that 98 to 99 percent of the respondents are small businesses. Most of the substantive requirements of this rule include an exemption provision allowing small businesses, as well as other operators, to demonstrate that the cost of compliance with the requirement would cause the operator to cease production on the lease and abandon significant reserves. If the BLM agrees, it may exempt the operator from or modify the relevant requirement.
6. Describe the consequence to Federal program or policy activities if the collection is not conducted or is conducted less frequently, as well as any technical or legal obstacles to reducing burden.
The collection of information updates the BLM’s requirements governing venting, flaring, and leaks to ensure that the public’s resources and assets are not wasted, and are developed in a manner that provides for long-term productivity and sustainability. Absent the proposed rule, these advances will not be possible. Also, much of the information required to be collected under this rule is in the context of operator requests for exemptions or alternative requirements. Absent the requirements to provide information to demonstrate the need for the exemption or the sufficiency of the alternative approach, these exemption provisions could substantially undercut the rule requirements.
7. Explain any special circumstances that would cause an information collection to be conducted in a manner:
* requiring respondents to report information to the agency more often than quarterly;
* requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;
* requiring respondents to submit more than an original and two copies of any document;
* requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records, for more than three years;
* in connection with a statistical survey that is not designed to produce valid and reliable results that can be generalized to the universe of study;
* requiring the use of a statistical data classification that has not been reviewed and approved by OMB;
* that includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or
* requiring respondents to submit proprietary trade secrets, or other confidential information, unless the agency can demonstrate that it has instituted procedures to protect the information's confidentiality to the extent permitted by law.
Two provisions require respondent to retain records for more than three years.
These provisions require respondents to retain records for the period required by 43 CFR 3162.4-1, and submit these records to the BLM upon request. Section 3162.4-1, which was amended recently, requires (with some exceptions) that records generated for Federal leases be maintained for at least seven years, and records generated for Indian leases be maintained for at least six years.
An exception that applies to Federal leases applies when a judicial proceeding or demand involving such records is timely commenced, in which case the record holder must maintain such records either until the final nonappealable decision in such judicial proceeding or demand is made, unless the Secretary or the applicable delegated State authorizes in writing an earlier release of the requirement to maintain such records.
An exception that applies to Indian leases applies when the Secretary or his/her designee notifies the record holder that the Department has initiated or is participating in an audit or investigation involving such records, in which case the record holder must maintain such records until the Secretary or his/her designee releases the record holder from the obligation to maintain the records.
The following provisions include these requirements:
8. If applicable, provide a copy and identify the date and page number of publication in the Federal Register of the agency's notice, required by 5 CFR 1320.8(d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and in response to the PRA statement associated with the collection over the past three years, and describe actions taken by the agency in response to these comments. Specifically address comments received on cost and hour burden.
Describe efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping, disclosure, or reporting format (if any), and on the data elements to be recorded, disclosed, or reported.
Consultation with representatives of those from whom information is to be obtained or those who must compile records should occur at least once every three years — even if the collection of information activity is the same as in prior periods. There may be circumstances that may preclude consultation in a specific situation. These circumstances should be explained.
The preamble to the proposed rule invited public comments on the information collection. All comments – both those pertaining to information collection and other comments -- are addressed in the final rule. The comments and responses pertaining to information-collection activities are summarized below. The specific comments may be obtained by entering “RIN 1004-AE14” in the Search function at https://www.regulations.gov/searchResults?rpp=25&po=0&s=RIN%2B1004-AE16&fp=true&ns=true, and then clicking on “Open Docket Folder.”
Section 3179.201 Equipment Requirements for Pneumatic Controllers
In response to comments and to further clarify section 3179.201 , the BLM included in paragraph (c) the information that must be included in the Sundry Notice to demonstrate that the costs of replacing a pneumatic controller would cause the operator to cease production and abandon significant recoverable oil reserves.
Section 3179.202 Equipment Requirements for Pneumatic Diaphragm Pumps
In response to comments, the BLM added paragraph (b) to section 3179.202, stating that an operator is not required to replace a pump if the pump does not vent exhaust gas to the atmosphere (e.g., already is routed to a flare or to capture equipment) or if the operator submits a Sundry Notice to the BLM documenting that the pump(s) operated fewer than 90 individual days in the prior calendar year.
9. Explain any decision to provide any payment or gift to respondents, other than remuneration of contractors or grantees.
We will not provide payments or gifts to the respondents.
10. Describe any assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy.
These regulations provide no assurance of confidentiality to respondents. However, operators routinely provide information to the BLM that they consider confidential; if they indicate on the Sundry Notice that the information is considered confidential, the BLM will handle the information in accordance with applicable regulations in 43 CFR Part 2.
11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private. This justification should include the reasons why the agency considers the questions necessary, the specific uses to be made of the information, the explanation to be given to persons from whom the information is requested, and any steps to be taken to obtain their consent.
We do not require respondents to answer questions of a sensitive nature.
12. Provide estimates of the hour burden of the collection of information. The statement should:
* Indicate the number of respondents, frequency of response, annual hour burden, and an explanation of how the burden was estimated. Unless directed to do so, agencies should not conduct special surveys to obtain information on which to base hour burden estimates. Consultation with a sample (fewer than 10) of potential respondents is desirable. If the hour burden on respondents is expected to vary widely because of differences in activity, size, or complexity, show the range of estimated hour burden, and explain the reasons for the variance. Generally, estimates should not include burden hours for customary and usual business practices.
* If this request for approval covers more than one form, provide separate hour burden estimates for each form and aggregate the hour burdens.
* Provide estimates of annualized cost to respondents for the hour burdens for collections of information, identifying and using appropriate wage rate categories. The cost of contracting out or paying outside parties for information collection activities should not be included here.
The BLM estimates the following annual hour burdens: 63,200 responses, 82,170 hours, and $5,302,431.
The following table shows the BLM’s estimate of the hourly cost burdens for respondents. The mean hourly wages were determined using national Bureau of Labor Statistics data at: http://www.bls.gov/oes/current/oes_nat.htm. The benefits multiplier of 1.4 is supported by information at http://www.bls.gov/news.r/ecec.nr0.htm.
Table 12-1
Estimated Weighted Average Hourly Costs
A. Position |
B. Mean Hourly Pay Rate |
C. Hourly Rate with Benefits (Column B x 1.4) |
D. Percent of Collection Time |
E. Weighted Average Hourly Cost (Column C x Column D) |
General Office Clerk (43-9061) |
$15.33 |
$21.46 |
10% |
$2.14 |
Engineer (17-2199) |
$47.19 |
$66.07 |
80% |
$52.86 |
Engineering Manager (11-9041) |
$68.10 |
$95.34 |
10% |
$9.53 |
Totals |
|
|
100% |
$64.53 |
Hour and cost burdens to respondents include time spent for researching, preparing, and submitting information. The weighted average hourly wage associated with these information collections is shown at Table 12-1, above. The frequency of response for each of the information collections is “on occasion.”
Table 12-2 itemizes the estimated hour and cost burdens. The cost of these burdens comes from both the one-time costs of informational requirements associated with documentation for FMPs at facilities operating before the effective date of the final rule, and annual costs associated with documentation for FMP applications and modifications that occur after the effective date of the final rule.
Table 12-2
Estimates of Hour and Cost Burdens
A. Type of Response |
B. Number of Responses |
C. Hours per Response |
D. Total Hours (Column B x Column C) |
E. Dollar Equivalent (Column D x $64.53) |
Plan to Minimize Waste of Natural Gas 43 CFR 3162.3-1 Form 3160-3 |
2,000 |
8 |
16,000 |
$1,032,480 |
Request for Approval for Royalty-Free Uses On-Lease or Off-Lease 43 CFR 3178.5, 3178.7, 3178.8, and 3178.9 Form 3160-5 |
50 |
4 |
200 |
$12,906 |
Notification of Choice to Comply on County- or State-wide Basis 43 CFR 3179.7(c)(3)(iii) |
200 |
1 |
200 |
$12,906 |
Request for Approval of Alternative Capture Requirement 43 CFR 3179.8(b) Form 3160-5 |
50 |
16 |
800 |
$51,624 |
Request for Exemption from Well Completion Requirements 43 CFR 3179.102(c) and (d) Form 3160-5 |
0 |
0 |
0 |
$0 |
Request for Extension of Royalty-Free Flaring During Initial Production Testing 43 CFR 3179.103 Form 3160-5 |
500 |
2 |
1000 |
$64,530 |
Request for Extension of Royalty-Free Flaring During Subsequent Well Testing 43 CFR 3179.104 Form 3160-5 |
5 |
2 |
10 |
$645 |
Reporting of Venting or Flaring43 CFR 3179.105Form 3160-5 |
250 |
2 |
500 |
$32,265 |
Notification of Functional Needs for a Pneumatic Controller 43 CFR 3179.201(b)(1) Form 3160-5 |
10 |
2 |
20 |
$1,291 |
Showing that Cost of Compliance Would Cause Cessation of Production and Abandonment of Oil Reserves 43 CFR 3175.201(b)(4) and 3175.201(c) Form 3160-5 |
50 |
4 |
200 |
$12,906 |
Showing in Support of Replacement of Pneumatic Controller within 3 Years 43 CFR 3179.201(d) Form 3160-5 |
100 |
1 |
100 |
$6,453 |
Showing that a Pneumatic Diaphragm Pump was Operated on Fewer than 90 Individual Days in the Prior Calendar Year 43 CFR 3179.202(b)(2) Form 3160-5 |
100 |
1 |
100 |
$6,453 |
Notification of Functional Needs for a Pneumatic Diaphragm Pump 43 CFR 3179.202(d) Form 3160-5 |
150 |
1 |
150 |
$9,680 |
Showing that Cost of Compliance Would Cause Cessation of Production and Abandonment of Oil Reserves 43 CFR 3175.202(f) and (g) Form 3160-5 |
10 |
4 |
40 |
$2,581 |
Showing in Support of Replacement of Pneumatic Diaphragm Pump within 3 Years 43 CFR 3179.202(h) Form 3160-5 |
100 |
1 |
100 |
$6,453 |
Storage Vessels43 CFR 3179.203(c)Form 3160-5 |
50 |
4 |
200 |
$12,906 |
Downhole Well Maintenance and Liquids Unloading Documentation and Reporting43 CFR 3179.204(c) and (e)Form 3160-5 |
5,000 |
1 |
5,000 |
$322,650 |
Downhole Well Maintenance and Liquids Unloading Notification of Excessive Duration or Volume 43 CFR 3179.204(f) Form 3160-5 |
250 |
1 |
250 |
$16,133 |
Leak Detection Compliance with EPA Regulations 43 CFR 3179.301(j) Form 3160-5 |
50 |
4 |
200 |
$12,906 |
Leak Detection Request to Use an Alternative Monitoring Device and Protocol 43 CFR 3179.302(c) Form 3160-5 |
5 |
40 |
200 |
$12,906 |
Leak Detection Operator Request to Use an Alternative Leak Detection Program 43 CFR 3179.303(b) Form 3160-5 |
20 |
40 |
800 |
$51,624 |
Leak Detection Operator Request for Exemption Allowing Use of an Alternative Leak-Detection Program that Does Not Meet Specified 43 CFR 3179.303(d) Form 3160-5 |
150 |
20 |
3,000 |
$193,590 |
Leak Detection Notification of Delay in Repairing Leaks 43 CFR 3179.304(a) Form 3160-5 |
100 |
1 |
100 |
$6,453 |
Leak Detection Inspection Recordkeeping and Reporting 43 CFR 3179.305 |
52,000 |
.25 |
13,000 |
$838,890 |
Leak Detection Annual Reporting of Inspections 43 CFR 3179.305(b) Form 3160-5 |
2,000 |
20 |
40,000 |
$2,581,200 |
Totals |
63,200 |
|
82,170 |
$5,302,431 |
13. Provide an estimate of the total annual non-hour cost burden to respondents or recordkeepers resulting from the collection of information. (Do not include the cost of any hour burden already reflected in item 12.)
* The cost estimate should be split into two components: (a) a total capital and start-up cost component (annualized over its expected useful life) and (b) a total operation and maintenance and purchase of services component. The estimates should take into account costs associated with generating, maintaining, and disclosing or providing the information (including filing fees paid for form processing). Include descriptions of methods used to estimate major cost factors including system and technology acquisition, expected useful life of capital equipment, the discount rate(s), and the time period over which costs will be incurred. Capital and start-up costs include, among other items, preparations for collecting information such as purchasing computers and software; monitoring, sampling, drilling and testing equipment; and record storage facilities.
* If cost estimates are expected to vary widely, agencies should present ranges of cost burdens and explain the reasons for the variance. The cost of purchasing or contracting out information collection services should be a part of this cost burden estimate. In developing cost burden estimates, agencies may consult with a sample of respondents (fewer than 10), utilize the 60-day pre-OMB submission public comment process and use existing economic or regulatory impact analysis associated with the rulemaking containing the information collection, as appropriate.
* Generally, estimates should not include purchases of equipment or services, or portions thereof, made: (1) prior to October 1, 1995, (2) to achieve regulatory compliance with requirements not associated with the information collection, (3) for reasons other than to provide information or keep records for the government, or (4) as part of customary and usual business or private practices.
No non-hour costs result from the information-collection activities in the rule.
14. Provide estimates of annualized cost to the Federal government. Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment, overhead, printing, and support staff), and any other expense that would not have been incurred without this collection of information.
The BLM estimates $1,347,119 in federal costs.
Table 14-1 shows the BLM’s estimate of the hourly cost burdens to the Federal government. The hourly pay rates (Column B) are based on U.S. Office of Personnel Management data for:
The “Rest of the U.S.” at http://www.opm.gov/policy-data-oversight/pay-leave/salries-wages/salary-wages/salary-tables/pdf/2016/RUS_h.pdf.; and
Metropolitan areas (for example, Denver and Las Vegas) where BLM employees will process information collected in accordance with this rule.
The resulting adjusted hourly pay rates reflect an average (i.e., 15.79 percent) of two upward adjustments to the base pay rate for federal employees – 14.35 percent for the “Rest of the U.S.” and 17.23 percent for Federal employees in certain metropolitan areas.
The benefits multiplier of 1.6 is implied by information at http://www.bls.gov/news.release/ecec.nr0.htm.
Table 14-1
Estimated Weighted Average Federal Hourly Costs
A. Position and Pay Grade |
B. Hourly Pay Rate |
C. Hourly Rate with Benefits (Column B x 1.6) |
D. Percent of the Information Collection Completed by Each Occupation |
F. Weighted Average Hourly Costs (Column C x Column D) |
Clerical GS-5, step 5 |
$17.77 |
$28.43 |
10% |
$2.84 |
Professional GS-9, step 5 |
$26.92 |
$43.07 |
80% |
$34.46 |
Managerial GS-13, step 5 |
$46.43 |
$74.29 |
10% |
$7.43 |
Totals |
|
|
100% |
$44.73 |
Table 14-2, below, shows the estimated Federal hours and costs for each component of this information collection.
Table 14-2
Estimated Annual Cost to the Government
A. Type of Response |
B. Number of Responses |
C. Time per Response |
D. Total Hours (Column B x Column C) |
E. Dollar Equivalent (Column D x $44.73) |
Plan to Minimize Waste of Natural Gas 43 CFR 3162.3-1 Form 3160-3 |
2,000 |
2 hours |
4,000 |
$178,920 |
Request for Approval for Royalty-Free Uses On-Lease or Off-Lease 43 CFR 3178.5, 3178.7, 3178.8, and 3178.9 Form 3160-5 |
50 |
4 hours |
200 |
$8,946 |
Notification of Choice to Comply on County- or State-wide Basis 43 CFR 3179.7(c)(3)(iii) |
200 |
15 minutes |
50 |
$2,237 |
Request for Approval of Alternative Capture Requirement 43 CFR 3179.8(b) Form 3160-5 |
50 |
8 hours |
400 |
$17,892 |
Request for Exemption from Well Completion Requirements 43 CFR 3179.102(c) and (d) Form 3160-5 |
0 |
0 |
0 |
$0 |
Request for Extension of Royalty-Free Flaring During Initial Production Testing 43 CFR 3179.103 Form 3160-5 |
500 |
1 hour |
500 |
$22,365 |
Request for Extension of Royalty-Free Flaring During Subsequent Well Testing 43 CFR 3179.104 Form 3160-5 |
5 |
1 hour |
5 |
$224 |
Reporting of Venting or Flaring43 CFR 3179.105Form 3160-5 |
250 |
2 hours |
500 |
$22,365 |
Notification of Functional Needs for a Pneumatic Controller 43 CFR 3179.201(b)(1) Form 3160-5 |
10 |
15 minutes |
2.5 |
$112 |
Showing that Cost of Compliance Would Cause Cessation of Production and Abandonment of Oil Reserves 43 CFR 3175.201(b)(4) and 3175.201(c) Form 3160-5 |
50 |
3 hours |
150 |
$6,710 |
Showing in Support of Replacement of Pneumatic Controller within 3 Years 43 CFR 3179.201(d) Form 3160-5 |
100 |
15 minutes |
25 |
$1,118 |
Showing that a Pneumatic Diaphragm Pump was Operated on Fewer than 90 Individual Days in the Prior Calendar Year 43 CFR 3179.202(b)(2) Form 3160-5 |
100 |
15 minutes |
25 |
$1,118 |
Notification of Functional Needs for a Pneumatic Diaphragm Pump 43 CFR 3179.202(d) Form 3160-5 |
150 |
2 hours |
300 |
$13,419 |
Showing that Cost of Compliance Would Cause Cessation of Production and Abandonment of Oil Reserves 43 CFR 3175.202(f) and (g) Form 3160-5 |
10 |
3 hours |
30 |
$1,342 |
Showing in Support of Replacement of Pneumatic Diaphragm Pump within 3 Years 43 CFR 3179.202(h) Form 3160-5 |
100 |
15 minutes |
25 |
$1,118 |
Storage Vessels43 CFR 3179.203(c)Form 3160-5 |
50 |
3 hours |
150 |
$6,710 |
Downhole Well Maintenance and Liquids Unloading Documentation and Reporting43 CFR 3179.204(c) and (e)Form 3160-5 |
5,000 |
10 minutes |
833.33 |
$37,275 |
Downhole Well Maintenance and Liquids Unloading Notification of Excessive Duration or Volume 43 CFR 3179.204(f) Form 3160-5 |
250 |
30 minutes |
125 |
$5,591 |
Leak Detection Compliance with EPA Regulations 43 CFR 3179.301(j) Form 3160-5 |
50 |
15 minutes |
12.5 |
$559 |
Leak Detection Request to Use an Alternative Monitoring Device and Protocol 43 CFR 3179.302(c) Form 3160-5 |
5 |
160 hours |
800 |
$35,784 |
Leak Detection Operator Request to Use an Alternative Leak Detection Program 43 CFR 3179.303(b) Form 3160-5 |
20 |
80 hours |
1,600 |
$71,568 |
Leak Detection Operator Request for Exemption Allowing Use of an Alternative Leak-Detection Program that Does Not Meet Specified 43 CFR 3179.303(d) Form 3160-5 |
150 |
80 hours |
12,000 |
$536,760 |
Leak Detection Notification of Delay in Repairing Leaks 43 CFR 3179.304(a) Form 3160-5 |
100 |
30 minutes |
50 |
$2,237 |
Leak Detection Inspection Recordkeeping and Reporting 43 CFR 3179.305 |
52,000 |
5 minutes |
4,333.33 |
$193,830 |
Leak Detection Annual Reporting of Inspections 43 CFR 3179.305(b) Form 3160-5 |
2,000 |
2 |
4,000 |
$178,920 |
Totals |
63,200 |
|
30,117 |
$1,347,119 |
15. Explain the reasons for any program changes or adjustments in hour or cost burden.
The rule will result in the following program changes in control number 1004-0137 due to additional uses and burdens for the APD and Sundry Notices: 11,200 additional responses, and 69,170 additional hours.
16. For collections of information whose results will be published, outline plans for tabulation and publication. Address any complex analytical techniques that will be used. Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions.
The BLM will post some of the collected information on its website. For example, the BLM will post on the BLM website a list of each approved monitoring device and protocol, along with any limitations on its use.
17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.
The BLM displays the expiration date for control number 1004-0137 (January 31, 2018) on the forms authorized for use by that control number. After the effective date of this rule, the BLM plans to request that the information-collection activities in this rule be merged with those in control number 1004-0137. Accordingly that display will apply to the information activities in the rule that will involve the APD or Sundry Notice (Form 3160-5). The expiration date for the other information collection activity in the rule will not be displayed because there will be no form for that activity.
18. Explain each exception to the topics of the certification statement identified in "Certification for Paperwork Reduction Act Submissions."
There are no exceptions to the certification statement.
| File Type | application/msword |
| Author | djbieniewicz |
| Last Modified By | Sonneman, Jean E |
| File Modified | 2016-11-15 |
| File Created | 2016-11-15 |