Mining of the Osage Mineral Estate for Oil and Gas

DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Part 226

[Docket No. BIA-2022-0006; 2231A2100DD/AAKC001030/A0A501010.999900; OMB Control Number 1076-0180, 1012-0004, 1012-0006]

RIN 1076-AF59

Mining of the Osage Mineral Estate for Oil and Gas

AGENCY:

Bureau of Indian Affairs, Interior.

ACTION:

Proposed rule.

SUMMARY:

The Bureau of Indian Affairs (BIA) proposes to revise the regulations governing leasing of the Osage Nation's mineral estate (“Osage Mineral Estate”) for oil and gas mining. The proposed rule would allow the BIA to strengthen management of the Osage Mineral Estate by updating bonding, royalty payment and reporting, production valuation and measurement, site security, and operational requirements to address changes in technology and industry standards that have occurred in the 47 years since the regulations were issued. The proposed rule would also allow the BIA to respond to recommendations made by the Office of Inspector General, U.S. Department of the Interior (OIG).

DATES:

Proposed Regulations:

Submit your comments on the proposed rule to the BIA on or before March 17, 2023.

Information Collection Requirements:

Submit your comments on the information collection requirements in the proposed rule on or before March 17, 2023.

Public Meeting:

A public meeting will be held on February 8, 2023, 6:30 p.m. to 9 p.m. central time.

ADDRESSES:

Proposed Regulations:

You may submit your comments on the proposed rule by any of the methods listed below.

•

Federal Rulemaking Portal: https://www.regulations.gov.

Enter “RIN 1076-AF59” in the search box and click “Search.” Follow the instructions for sending comments.

•

Mail:

U.S. Department of the Interior, Eastern Oklahoma Region, Bureau of Indian Affairs, Attn: Regional Director, P.O. Box 8002, Muskogee, OK 74402. All submissions must include the words “Bureau of Indian Affairs” or “BIA” and “RIN 1076-AF59.”

•

Hand Delivery/Courier:

U.S. Department of the Interior, Eastern Oklahoma Region, Bureau of Indian Affairs, Attn: Regional Director, 3100 W Peak Boulevard, Muskogee, OK 74402.

Public Meeting:

The BIA is holding a public meeting on the Proposed Rule on Wednesday, February 8, 2023, from 6:30 p.m. to 9 p.m. central time at the Osage Casino and Hotel, 5591 W Rogers Boulevard, Skiatook, OK 74070. Please see

SUPPLEMENTARY INFORMATION

, Section II, Public Comment Procedures, for details.

Information Collection Requirements:

Comments on the information collection requirements in the proposed rule must be submitted to Steven Mullen, Information Collection Clearance Officer, Office of Regulatory Affairs and Collaborative Action—Indian Affairs, U.S. Department of the Interior, 1001 Indian School Road NW, Suite 229, Albuquerque, NM 87104; or by email to

comments@bia.gov

with a copy to

ONRR_RegulationsMailbox@onrr.gov.

All submissions must include the applicable Office of Management and Budget (OMB) Control Number(s) for the BIA or ONRR information collection(s) you are commenting on:

• OMB Control Number 1076-0180, Mining of the Osage Mineral Estate for Oil and Gas.

• OMB Control Number 1012-0004, Royalty and Production Reporting.

• OMB Control Number 1012-0006, Suspensions Pending Appeal and Bonding.

FOR FURTHER INFORMATION CONTACT:

Oliver Whaley, Director, Office of Regulatory Affairs and Collaborative Action, Office of the Assistant Secretary—Indian Affairs, (202) 738-6065,

comments@bia.gov.

SUPPLEMENTARY INFORMATION:

I. Executive Summary

II. Public Comment Procedures

III. Background

IV. Incorporation by Reference of Industry Standards

V. Discussion of Proposed Changes

VI. Procedural Matters

I. Executive Summary

The purpose of this proposed rule is to amend 25 CFR part 226, Leasing of Osage Reservation Lands for Oil and Gas Mining, to strengthen the Bureau of Indian Affairs' (BIA) management and administration of the Osage Mineral Estate. The last major substantive revisions to the regulations in 25 CFR part 226 occurred in 1974, with many provisions having remained virtually unchanged since well before then. As a result, the regulations are outdated, inconsistent with industry standards, and do not reflect technological advancements or modern oil and gas operations within the Osage Mineral Estate. The BIA believes that the proposed rule updating the regulations makes critical changes that will improve accounting and production measurement standards; offer consistency in production valuation; address inadequate bonding; support the implementation of electronic reporting systems; enhance accountability; clarify lessees' obligations; prevent waste; promote safe and environmentally sound operations; and protect resource values. The BIA also believes that the proposed rule will allow it to take the necessary actions to resolve certain recommendations made by the Office of Inspector General, U.S. Department of the Interior (OIG).

In 2013, the OIG performed an assessment of the BIA Osage Agency's effectiveness in managing the Osage Mineral Estate. On October 20, 2014, the OIG issued its final evaluation report, titled “BIA Needs Sweeping Changes to Manage the Osage Nation's Energy Resources.” While the OIG acknowledged the complexity of managing the Osage Mineral Estate due, in part, to the number of competing interests, it documented multiple deficiencies in the BIA Osage Agency's management of the oil and gas program and called for broad reform.

The OIG report set forth 33 recommendations for improvement of the BIA Osage Agency's oil and gas program. The first issue the OIG report addressed was deficiencies in the regulations in 25 CFR part 226. Specifically, the OIG found that the existing regulations are vague, inadequate, and fail to mirror the oil and gas regulations governing the rest of Indian country. Accordingly, the OIG recommended that the BIA “use its authority to correct program deficiencies by modifying 25 CFR part 226 to mirror other Indian Country oil and gas regulations.” The OIG also identified issues with accounting, reconciliation, bonding requirements, royalty and production reporting, inspections, lease compliance, and enforcement measures, among other things. The BIA Osage Agency resolved 26 of the OIG's recommendations through the implementation of new and revised policies and procedures but determined that the remaining seven recommendations could not be fully resolved without revision of the regulations in 25 CFR part 226.

This proposed rule modernizes the regulations and brings them in line with the regulations governing oil and gas leasing and development throughout the rest of Indian country consistent with the OIG's recommendation. In addition, the proposed rule will allow the BIA Osage Agency to respond to the open OIG recommendations regarding engagement of the Office of Natural Resources Revenue (ONRR) to perform accounting and compliance activities,

implementation of ONRR's electronic reporting systems, reconciliation of royalty payments, verification of allowances and arm's-length sales transactions, and the implementation of sampling thresholds. These revisions are critical to ensure that oil and gas produced from the Osage Mineral Estate is properly accounted for and lessees timely pay the correct and full amount of royalties due to the Osage Nation.

II. Public Comment Procedures

If you wish to comment on this proposed rule, you may submit your comments to the BIA by mail, hand delivery/courier, or through

https://www.regulations.gov

(see

ADDRESSES

). Please make your comments on the proposed rule as specific as possible, provide a detailed explanation of any changes you recommend, and include any relevant supporting documentation. Where possible, your comments should reference the specific section or paragraph of the proposed rule that you are addressing. The BIA is not obligated to consider comments received after the comment period closes (see

DATES

) or comments delivered to an address, or using methods other than, those identified (see

ADDRESSES

).

Comments, including the names and street addresses of respondents, will be available for public review at the BIA Eastern Oklahoma Regional Office, 3100 W Peak Boulevard, Muskogee, OK 74402, during regular business hours (8 a.m. to 4:30 p.m.), Monday through Friday, except holidays. Before including your address, phone number, email address, or other personal identifying information in your comment, please be advised that your entire comment—including your personal identifying information—may be made publicly available at any time. While you can ask the BIA to withhold your personal identifying information from public review in your comment, we cannot guarantee that we will be able to do so. As discussed in detail below, this proposed rule would include revisions to information collection requirements that must be approved by the Office of Management and Budget (OMB). If you wish to comment on the revised information collection requirements in this proposed rule, you must send such comments directly to the OMB (see

ADDRESSES

).

The BIA is holding a public meeting on the Proposed Rule on Wednesday, February 8, 2023, from 6:30 p.m. to 9 p.m. central time at the Osage Casino and Hotel, 5591 West Rogers Boulevard, Skiatook, OK 74070. At the meeting, you may sign up for a two-minute time slot to provide verbal comments on the Proposed Rule. The BIA requests that groups or organizations wishing to provide verbal comments elect a single representative to speak on behalf of the group or organization.

III. Background

A. Osage Allotment Act

In 1872, the U.S. Congress established a reservation for the Osage Nation in the Oklahoma Territory. On June 16, 1906, Congress passed the Oklahoma Enabling Act, Public Law 59-234, 34 Stat. 256, joining the Oklahoma Territory with Indian Territory to form the state of Oklahoma. Shortly thereafter, Congress passed the Act of June 28, 1906, Public Law 59-321, 34 Stat. 539 (1906 Act), titled an “Act for the division of the lands and funds of the Osage Indians in Oklahoma Territory.” The 1906 Act provided for the allotment of the Osage Nation's lands to individual Tribal members. Upon statehood in 1907, the Osage Indian Reservation, comprising approximately 1,475,000 acres, became Osage County, Oklahoma.

Section 3 of the 1906 Act, as amended, severed the surface estate from the subsurface mineral estate, reserving all oil, gas, coal, and other minerals to the Osage Nation in perpetuity. Accordingly, the United States holds the subsurface mineral estate in Osage County, Oklahoma (“Osage Mineral Estate”) in trust for the benefit of the Osage Nation. The 1906 Act authorizes the Osage Nation to lease the Osage Mineral Estate for oil, gas, and other mineral development “with the approval of the Secretary of the Interior, and under such rules and regulations as he may prescribe.” The Secretary of the Interior delegated this authority to the Superintendent of the BIA Osage Agency. See 209 Departmental Manual 8.1(A).

Section 4 of the 1906 Act, as amended, required that the United States hold the revenues derived from the Osage Mineral Estate in trust and distribute the funds to individual Tribal members on the authorized roll of membership in a timely (quarterly) and proper (pro rata with interest) basis. This prospective right to share in the royalties, rental, and bonuses derived from the Osage Mineral Estate is referred to as a “headright.” See Act of October 30, 1984, Pub. L. 98-605, section 11, 98 Stat. 3163.

B. Osage Tribal Trust Settlement and Negotiated Rulemaking

On October 14, 2011, the United States and Osage Nation signed the Osage Tribal Trust Settlement (Settlement) resolving litigation regarding the United States' alleged mismanagement of the Osage Mineral Estate along with other unrelated breach of trust claims. As part of the Settlement, the Department of the Interior (Department) agreed to engage in negotiated rulemaking with the Osage Nation pursuant to 5 U.S.C. 561-570a and revise the regulations in 25 CFR part 226 to improve management of the Osage Mineral Estate. The negotiated rulemaking process began on June 18, 2012, when the Department published a notice of the intent to establish an Osage Negotiated Rulemaking Committee (Committee). See 77 FR 36226.

On July 31, 2012, the Department announced the establishment of the Committee, comprised of four Federal Government representatives and five members of the Osage Minerals Council who were selected by Council vote. See 77 FR 45301. The Osage Minerals Council representatives on the Committee identified five priority areas to be discussed during negotiations: (1) modernization of royalty value and royalty rate for oil production; (2) modernization of royalty value, royalty rate, and royalty calculations for gas production; (3) strengthening drilling obligations for oil lessees; (4) requiring detailed electronic reporting by all lessees; and (5) strengthening oil gauging and gas meter inspection, calibration, and adjustment.

The Committee held the first public meeting in August 2012 and, except for December 2012, met monthly until April 2013. On April 25, 2013, the Negotiated Rulemaking Committee submitted its Consensus Report to the Department on a package of proposed revisions to the regulations, completing the negotiated rulemaking process required by the Settlement. The Department published the proposed rule based on the Committee's recommendations on August 28, 2013. See 78 FR 53083. The Department received, evaluated, and responded to a significant number of public comments on the proposed rule and amended the regulations to make necessary changes in accordance therewith. On May 11, 2015, the Department published the final rule, which had an effective date of July 10, 2015. See 80 FR 26994.

On July 1, 2015, the Osage Minerals Council and Osage Producers Association each filed suit in the U.S. District Court for the Northern District of Oklahoma (Court), seeking to enjoin implementation of the final rule. The arguments advanced in the lawsuits included, among other things, claims that the final rule conflicted with the 1906 Act, would impose administrative costs that would lead to decreased

production, and the Department failed to complete the analyses required by the Regulatory Flexibility and Small Business Regulatory Enforcement Acts. The Court consolidated the two lawsuits and entered an order enjoining implementation of the final rule pending resolution of the litigation.

Upon review of the issues raised in the litigation, the Department determined that a voluntary remand of the final rule was appropriate. The Osage Minerals Council and Osage Producers Association supported such action. On November 19, 2015, the Department filed the Joint Motion for Voluntary Remand and the Court, in turn, entered the Judgment of Remand. As a result of the remand, the 2015 final rule never went into effect. Accordingly, the version of 25 CFR part 226 that was in effect prior to publication of the final rule remained operative. To ensure that the correct version of the regulations appeared in the CFR, the Department published a final rule formally confirming that the prior version of 25 CFR part 226 (last updated in 1974) remained in full force and effect. See 81 FR 39572.

C. Current Rulemaking

Following remand of the 2015 final rule, the BIA determined that it was appropriate to review the regulations in 25 CFR part 226 to consider whether, and to what extent, the regulations should be revised to strengthen the BIA's management and administration of the Osage Mineral Estate. On September 22, 2016, the BIA mailed letters to the Principal Chief of the Osage Nation and Chairman of the Osage Minerals Council requesting government-to-government consultation (consultation) regarding the need for such revisions. On October 25, 2016, the BIA held a consultation with representatives from the Osage Nation Executive and Legislative Branches, the Osage Minerals Council, and their legal counsel, in Pawhuska, Oklahoma. The outcome of the consultation was agreement by all parties that revision of the regulations was necessary. See Section VI, Procedural Matters, for additional information regarding the Tribal consultation process for the proposed rule.

The current effort to revise the regulations in 25 CFR part 226 is not a continuation of the negotiated rulemaking process undertaken pursuant to the Settlement, nor is it a republication of the 2015 final rule.

IV. Incorporation by Reference of Industry Standards

This proposed rule would incorporate industry standards and recommended practices, either in whole or in part, without republishing the standards in their entirety in the CFR. This practice is known as incorporation by reference (IBR). These standards currently apply to all federal and Indian lands except those within Osage County, Oklahoma. The BIA reviewed these standards and determined that they achieve the intent of 25 CFR 226.106 through 226.116 and 25 CFR 226.120 through 226.141 of the proposed rule. The proposed rule proposes to incorporate the versions of the standards listed. Some of the standards referenced would be incorporated in their entirety. For other standards, the BIA would incorporate only those sections that are relevant to the rule, meet the intent of 25 CFR 226.0, and do not require further clarification.

The National Technology Transfer and Advancement Act (NTTAA), Public Law 104-113, 15 U.S.C. 3701,

et seq.,

states that “all Federal agencies and departments shall use technical standards that are developed by consensus standards bodies, using such technical standards as a means to carry out policy objectives or activities determined by the agencies or departments,” subject to certain exceptions. The BIA may incorporate these standards into its regulations by reference without republishing the standards in their entirety in the regulations. The legal effect of IBR is that the incorporated standards would become regulatory requirements. The incorporated standards, like any other regulation, have the force and effect of law. Accordingly, lessees and other regulated parties would be required to comply with the standards incorporated by reference in the regulations.

The Office of the Federal Register (OFR) regulations governing IBR are set forth in 1 CFR part 51. The industry standards for this proposed rule are eligible for incorporation pursuant to 1 CFR 51.7 because, among other things, they substantially reduce the volume of material published in the

Federal Register

; are published, bound, numbered, and organized; and are readily available to the public free of charge or through purchase from the standards organization or through inspection at the BIA Osage Agency. The IBR language in § 226.0 meets the requirements set forth in 1 CFR 51.9. Where appropriate, the BIA would incorporate by reference an industry standard governing a particular process and impose requirements that add to, or modify, the requirements imposed by that standard (

e.g.,

the BIA sets a specific value for a variable where the industry standard proposed a range of values or options).

All American Petroleum Institute (API) materials are available for inspection and purchase at the API, 200 Massachusetts Avenue NW, Suite 1100, Washington, DC 20001, (202) 682-8000. API also offers free, read-only access to the standards in the API IBR Reading Room at

https://publications.api.org.

All American Gas Association (AGA) standards are available for inspection and purchase from AGA, 400 North Capitol Street NW, Suite 450, Washington, DC 20001, (202) 824-7000,

https://www.aga.org/publication-store.

All Gas Processors Association (GPA) standards are available for inspection and purchase from GPA, 6526 E 60th Street, Tulsa, OK 74145, (918) 493-3872,

https://my.midstreamassociation.org/publications-store/publications.

The following industry standards and recommendations are proposed for incorporation by reference, in whole or in part, in subpart J of the proposed rule:

• API Manual of Petroleum Measurement Standards (MPMS), Chapter 2—Tank Calibration, Section 2A, Measurement and Calibration of Upright Cylindrical Tanks by the Manual Tank Strapping Method; First Edition, February 1995; Reaffirmed 2017 (“API 2.2A”). This standard describes calibration procedures for upright cylindrical tanks used for storing oil.

• API MPMS Chapter 2—Tank Calibration, Section 2B, Calibration of Upright Cylindrical Tanks Using the Optical Reference Line Method; First Edition, March 1989; Reaffirmed April 2019; Addendum 1, October 2019 (“API 2.2B”). This standard describes measurement and calibration procedures for determining the diameters of upright welded cylindrical tanks or vertical cylindrical tanks with a smooth surface and either floating or fixed roofs.

• API MPMS Chapter 2—Tank Calibration, Section 2C, Calibration of Upright Cylindrical Tanks Using the Optical-triangulation Method; First Edition, January 2002; Reaffirmed April 2019 (“API 2.2C”). This standard describes a calibration procedure for tanks above 26 feet in diameter with cylindrical courses that are substantially vertical.

• API MPMS Chapter 3.1A, Standard Practice for the Manual Gauging of Petroleum and Petroleum Products; Third Edition, August 2013; Reaffirmed

December 2018 (“API 3.1A”). This standard describes the: (a) procedures for manually gauging the liquid level of petroleum and petroleum products in non-pressure fixed roof tanks; (b) procedures for manually gauging the level of free water that may be found with the petroleum or petroleum products; (c) methods used to verify the length of gauge tapes under field conditions and the influence of bob weights and temperature on the gauge tape length; and (d) influences that may affect the position of gauging reference point (either the datum plate or the reference gauge point).

• API MPMS Chapter 3—Tank Gauging, Section 1B—Standard Practice for Level Measurement of Liquid Hydrocarbons in Stationary Tanks by Automatic Tank Gauging; Third Edition, April 2018 (“API 3.1B”). This standard describes the level measurement of liquid hydrocarbons in stationary, above ground, atmospheric storage tanks using ATGs. This standard also discusses automatic tank gauging in general, including the accuracy, installation, commissioning, calibration, and verification of ATGs that measure either innage or ullage.

• API MPMS Chapter 3—Tank Gauging, Section 6, Measurement of Liquid Hydrocarbons by Hybrid Tank Measurement Systems; First Edition, February 2001; Errata September 2005; Reaffirmed January 2017 (“API 3.6”). This standard describes the selection, installation, commissioning, calibration, and verification of Hybrid Tank Measurement Systems. This standard also provides a method of uncertainty analysis to enable users to select the correct components and configurations to address for the intended application.

• API MPMS Chapter 4—Proving Systems, Section 1, Introduction; Third Edition, February 2005; Reaffirmed June 2014 (“API 4.1”). Section 1 is a general introduction to the subject of proving meters.

• API MPMS Chapter 4—Proving Systems, Section 2—Displacement Provers; Third Edition, September 2003; Reaffirmed March 2011; Addendum February 2015 (“API 4.2”). This standard outlines the essential elements of meter provers that do, and do not, accumulate a minimum of 10,000 whole meter pulses between detector switches and provides design and installation details for the types of displacement provers that are currently in use. The provers discussed in this chapter are designed for proving measurement devices under dynamic operating conditions with single-phase liquid hydrocarbons.

• API MPMS Chapter 4.5, Master- Meter Provers; Fourth Edition, June 2016 (“API 4.5”). This standard covers the use of displacement and Coriolis meters as master meters. The requirements in this standard are for single-phase liquid hydrocarbons.

• API MPMS Chapter 4—Proving Systems, Section 6, Pulse Interpolation; Second Edition, May 1999; Errata April 2007; Reaffirmed October 2013 (“API 4.6”). This standard describes how the double-chronometry method of pulse interpolation, including system operating requirements and equipment testing, is applied to meter proving.

• API MPMS Chapter 4.8, Operation of Proving Systems; Second Edition, September 2013 (“API 4.8”). This standard provides information for operating meter provers on single-phase liquid hydrocarbons.

• API MPMS Chapter 4—Proving Systems, Section 9—Methods of Calibration for Displacement and Volumetric Tank Provers, Part 2— Determination of the Volume of Displacement and Tank Provers by the Waterdraw Method of Calibration; First Edition, December 2005; Reaffirmed July 2015 (“API 4.9.2”). This standard provides all the procedures required to determine the field data necessary to calculate a Base Prover Volume of Displacement Provers by the Waterdraw Method of Calibration.

• API MPMS Chapter 5—Metering, Section 6—Measurement of Liquid Hydrocarbons by Coriolis Meters; First Edition, October 2002; Reaffirmed November 2013 (“API 5.6”). This standard applies to custody-transfer applications for liquid hydrocarbons and covers the API standards used in the operation of Coriolis meters, proving and verification using volume-based methods, installation, operation, and maintenance.

• API MPMS Chapter 6, Metering Assemblies, Section 1—Lease Automatic Custody Transfer (LACT) Systems; Second Edition, May 1991; Reaffirmed May 2012 (“API 6.1”). This standard describes the design, installation, calibration, and operation of a LACT system.

• API MPMS Chapter 7, Temperature Determination, Section 1—Liquid-in- Glass Thermometers; Second Edition, August 2017 (“API 7.1”). This standard describes how to use various types of liquid-in-glass thermometers to accurately determine the temperatures of hydrocarbon liquids. This standard is proposed for incorporation for its standards covering the use of liquid-in-glass thermometers for temperature determination in tank-gauging operations.

• API MPMS Chapter 7—Temperature Determination, Section 2— Portable Electronic Thermometers; Third Edition, May 2018 (“API 7.2”). This standard describes the methods, equipment, and procedures for manually determining the temperature of liquid petroleum and petroleum products by use of a portable electronic thermometer. This standard is proposed for incorporation for its standards covering the use of portable electronic thermometers for temperature determination in tank gauging operations.

• API MPMS Chapter 7—Temperature Determination, Section 4— Dynamic Temperature Measurement; Second Edition, January 2018 (“API 7.4”). This standard describes methods, equipment, installation, and operating procedures for the proper determination of the temperature of hydrocarbon liquids under dynamic conditions in custody transfer applications. This standard is proposed for incorporation for its standards covering the use of dynamic temperature determination in LACT and CMS operations.

• API MPMS Chapter 8.1, Standard Practice for Manual Sampling of Petroleum and Petroleum Products; Fourth Edition, October 2013, (“API 8.1”). This standard covers procedures and equipment for manually obtaining samples of liquid petroleum and petroleum products from the sample point into the primary containers.

• API MPMS Chapter 8.2, Standard Practice for Automatic Sampling of Petroleum and Petroleum Products; Fourth Edition, November 2016 (“API 8.2”). This standard describes general procedures and equipment for automatically obtaining samples of liquid petroleum, petroleum products, and crude oils from a sample point into a primary container.

• API MPMS Chapter 8—Sampling, Section 3—Standard Practice for Mixing and Handling of Liquid Samples of Petroleum and Petroleum Products; First Edition, October 1995; Reaffirmed, March 2015 (“API 8.3”). This standard covers the handling, mixing, and conditioning procedures required to ensure that a representative sample of the liquid petroleum or petroleum product is delivered from the primary sample container/receiver into the analytical test apparatus or into intermediate containers.

• API MPMS Chapter 9.1, Standard Test Method for Density, Relative Density, or API Gravity of Crude Petroleum and Liquid Petroleum Products by Hydrometer Method; Third Edition, December 2012; Reaffirmed, May 2017 (“API 9.1”). This standard

covers the determination of the density, relative density, or API gravity of crude petroleum, petroleum products, or mixtures of petroleum and non-petroleum products normally handed as liquids have a Reid vapor pressure of 101.325 Kilopascal (kPa) (14.696 psi) or less, using a glass hydrometer in conjunction with a series of calculations.

• API MPMS Chapter 9.2, Standard Test Method for Density or Relative Density of Light Hydrocarbons by Pressure Hydrometer; Third Edition, December 2012; Reaffirmed, May 2017 (“API 9.2”). This standard covers the determination of the density or relative density of light hydrocarbons including liquefied petroleum gases having a Reid vapor pressure exceeding 101.325 kPa (14.696 psi).

• API MPMS Chapter 9.3, Standard Test Method for Density, Relative Density, and API Gravity of Crude Petroleum and Liquid Petroleum Products by Thermohydrometer Method; Third Edition, December 2012; Reaffirmed, May 2017 (“API 9.3”). This standard covers the determination of the density, relative density, or API gravity of crude petroleum, petroleum products, or mixtures of petroleum and non-petroleum products normally handed as liquids and having a Reid vapor pressure of 101.325 kPa (14.696 psi) or less, using a glass thermohydrometer in conjunction with a series of calculations.

• API MPMS Chapter 10.4, Determination of Water and/or Sediment in Crude Oil by the Centrifuge Method (Field Procedure); Fourth Edition, October 2013; Errata, March 2015 (“API 10.4”). This standard describes the field centrifuge method for determining both water and sediment, or sediment only, in crude oil.

• API MPMS Chapter 11—Physical Properties Data, Section 1—Temperature and Pressure Volume Correction Factors for Generalized Crude Oils, Refined Products and Lubricating Oils; May 2004; Addendum 1, September 2007, Addendum 2, May 2019; Reaffirmed, August 2012 (“API 11.1”). This standard provides the algorithm and implementation procedure for the correction of temperature and pressure effects on density and the volume of liquid hydrocarbons that fall within the categories of crude oil.

• API MPMS Chapter 12—Calculation of Petroleum Quantities, Section 2—Calculation of Petroleum Quantities Using Dynamic Measurement Methods and Volumetric Correction Factors, Part 2—Measurement Tickets; Third Edition, June 2003; Reaffirmed February 2016 (“API 12.2.2”). This standard provides standardized calculation methods for the quantification of liquids and specifies the equations for computing correction factors, rules for rounding, calculation sequences, and discrimination levels to be employed in the calculations.

• API MPMS Chapter 12—Calculation of Petroleum Quantities, Section 2—Calculation of Petroleum Quantities Using Dynamic Measurement Methods and Volumetric Correction Factors, Part 3—Proving Report; First Edition, October 1998; Reaffirmed May 2014 (“API 12.2.3”). This standard provides standardized calculation methods for the determination of meter factors under defined conditions. The criteria contained in this standard will allow entities using various computer languages on different computer hardware (or by manual calculations) to arrive at identical results using the same standardized input data. This standard also specifies the equations for computing correction factors, including the calculation sequence, discrimination levels, and rules for rounding to be employed in the calculations.

• API MPMS Chapter 12—Calculation of Petroleum Quantities, Section 2—Calculation of Petroleum Quantities Using Dynamic Measurement Methods and Volumetric Correction Factors, Part 4—Calculation of Base Prover Volumes by the Waterdraw Method; First Edition, December 1997; Errata July 2009; Reaffirmed September 2014 (“API 12.2.4”). This standard provides standardized calculation methods for the quantification of liquids and determination of base prover volumes under defined conditions. The criteria contained in this standard allows individuals, using various computer languages on different computer hardware (or manual calculations), to arrive at identical results using the same standardized input data. This standard specifies the equations for computing correction factors, rules for rounding, the sequence of the calculations, and the discrimination levels of all numbers to be used in these calculations.

• API MPMS Chapter 13.3, Measurement Uncertainty; Second Edition, December 2017 (“API 13.3”). This standard establishes a methodology for developing an uncertainty analysis.

• API MPMS Chapter 14, Section 3, Orifice Metering of Natural Gas and Other Related Hydrocarbon Fluids—Concentric, Square-edged Orifice Meters, Part 1, General Equations and Uncertainty Guidelines; Fourth Edition, September 2012; Errata July 2013; Reaffirmed, September 2017 (“API 14.3.1”). This standard provides reference for engineering equations and uncertainty estimations.

• API MPMS Chapter 18—Custody Transfer, Section 1—Measurement Procedures for Crude Oil Gathered from Lease Tanks by Truck; Third Edition, May 2018 (“API 18.1”). This standard describes the procedures, organized into a recommended sequence of steps, for manually determining the quantity and quality of crude oil being transferred under field conditions.

• API MPMS Chapter 21—Flow Measurement Using Electronic Metering Systems, Section 2—Electronic Liquid Volume Measurement Using Positive Displacement and Turbine Meters; First Edition, June 1998; Reaffirmed October 2016 (“API 21.2”). This standard provides for the effective utilization of electronic liquid measurement systems for custody-transfer measurement of liquid hydrocarbons.

• API Recommended Practice (RP) 12R1, Setting, Maintenance, Inspection, Operation and Repair of Tanks in Production Service; Fifth Edition, August 1997; Reaffirmed April 2008; Addendum 1, December 2017 (“API RP 12R1”). This recommended practice is a guide on new tank installations and the maintenance of existing tanks. Specific provisions from this recommended practice are identified as requirements.

• API RP 2556, Correction Gauge Tables for Incrustation; Second Edition, August 1993; Reaffirmed November 2013 (“API RP 2556”). This recommended practice provides for correcting gauge tables for incrustation applied to tank capacity tables. The tables in this recommended practice show the percent of error of measurement caused by varying thicknesses of uniform incrustation in tanks of various sizes.

The following industry standards and recommendations are proposed for incorporation by reference, in whole or in part, in subpart K of the proposed rule:

• API MPMS Chapter 14—Natural Gas Fluids Measurement, Section 1—Collecting and Handling of Natural Gas Samples for Custody Transfer; Seventh Edition, May 2016; Addendum, August 2017; Errata, August 2017 (“API 14.1”). This standard provides comprehensive guidelines for properly collecting, conditioning, and handling representative samples of natural gas that are at or above their hydrocarbon dew point.

• API MPMS, Chapter 14, Section 3, Orifice Metering of Natural Gas and Other Related Hydrocarbon Fluids—Concentric, Square-edged Orifice Meters, Part 1, General Equations and Uncertainty Guidelines; Fourth Edition,

September 2012; Errata, July 2013 (“API 14.3.1”). This standard provides engineering equations and uncertainty estimations for the calculation of flow rate through concentric, square-edge, flange-tapped orifice meters.

• API MPMS Chapter 14, Section 3, Orifice Metering of Natural Gas and Other Related Hydrocarbon Fluids—Concentric, Square-edged Orifice Meters, Part 2, Specification and Installation Requirements; Fifth Edition, March 2016; Errata 1, March 2017; Errata 2, January 2019) (“API 14.3.2”). This standard provides construction and installation requirements, and standardized implementation recommendations, for the calculation of flow rate through concentric, square-edge, flange-tapped orifice meters.

• API MPMS Chapter 14, Section 3, Orifice Metering of Natural Gas and Other Related Hydrocarbon Fluids—Concentric, Square-edged Orifice Meters, Part 3, Natural Gas Applications; Fourth Edition, November 2013 (“API 14.3.3”). This standard is an application guide for the calculation of natural gas flow through a flange-tapped, concentric orifice meter.

• API MPMS, Chapter 14.5, Calculation of Gross Heating Value, Relative Density, Compressibility and Theoretical Hydrocarbon Liquid Content for Natural Gas Mixtures for Custody Transfer; Third Edition, January 2009; Reaffirmed November 2020 (“API 14.5”). This standard presents procedures for calculating the following properties of natural gas mixtures at base conditions from composition: gross heating value, relative density (real and ideal), compressibility factor, and theoretical hydrocarbon liquid content.

• API MPMS Chapter 21.1, Flow Measurement Using Electronic Metering Systems—Electronic Gas Measurement; Second Edition, February 2013 (“API 21.1”). This standard describes the minimum specifications for electronic gas measurement systems (EGMs) used in the measurement and recording of flow parameters of gaseous phase hydrocarbon and other related fluids for custody transfer applications utilizing industry recognized primary measurement devices.

• AGA Report No. 3, Orifice Metering of Natural Gas and Other Related Hydrocarbon Fluids; Second Edition, September 1985 (“AGA Report No. 3”). This report provides construction and installation requirements, and standardized implementation recommendations, for the calculation of flow rate through concentric, square-edged, flange-tapped orifice meters.

• AGA Transmission Measurement Committee Report No. 8, Compressibility Factors of Natural Gas and Other Related Hydrocarbon Gases; Second Edition, November 1992 (“AGA Report No. 8”). This report presents detailed information for precise computations of compressibility factors and densities of natural gas and other hydrocarbon gases, calculation uncertainty estimations, and FORTRAN computer program listings.

• GPA Midstream Standard 2166-17, Obtaining Natural Gas Samples for Analysis by Gas Chromatography, Reaffirmed 2017 (“GPA 2166-17”). This standard recommends procedures for obtaining samples from flowing natural gas streams that represent the compositions of the vapor phase portion of the system being analyzed.

• GPA Standard Midstream 2261-19, Analysis for Natural Gas and Similar Gaseous Mixtures by Gas Chromatography; Revised 2019 (“GPA 2261-19”). This standard establishes a method to determine the chemical composition of natural gas and similar gaseous mixtures within set ranges using a gas chromatograph (CG).

• GPA Midstream Standard 2198-16, Selection, Preparation, Validation, Care and Storage of Natural Gas and Natural Gas Liquids Reference Standard Blends; Revised 2016 (“GPA 2198-16”). This standard establishes procedures for selecting the proper natural gas and natural gas liquids reference standards, preparing the reference standards for use, verifying the accuracy of composition as reported by the manufacturer, and the proper care and storage of those reference standards to ensure their integrity while they are in use.

V. Discussion of Proposed Changes

This proposed rule adds new sections and redesignates or revises current sections as set forth in the table below. The proposed rule removes all references to the “Osage Tribal Council,” and replaces them with “Osage Nation” or “Osage Minerals Council,” as applicable, because the Osage Tribal Council ceased to exist upon ratification of the Constitution of the Osage Nation in 2006.

New section

Current section

Proposed changes

226.0

N/A

The proposed rule identifies the API standards incorporated by reference in subpart J, Oil Measurement, and the API, AGA, and GPA standards incorporated by reference in subpart K, Gas Measurement.

226.1

226.1

The proposed rule defines new key terms, updates existing definitions, and removes definitions of terms that are no longer used in the regulations.

226.2 (new)

N/A

The proposed rule identifies the legal authorities that govern oil and gas leasing and development activities within the Osage Mineral Estate.

226.3 (new)

N/A

The proposed rule describes the Superintendent's authority and responsibility to administer oil and gas leasing and development of the Osage Mineral Estate.

226.4 (new)

N/A

The proposed rule describes ONRR's authority and responsibility to administer the Osage royalty management program.

226.5

226.45

The proposed rule clarifies the Superintendent's authority to issue orders and notices and adds a provision specifying ONRR's authority to issue orders and notices.

226.6

226.31

The proposed rule removes the provision requiring lessees who reside outside the state of Oklahoma to designate in-state process agents for the purpose of serving notice. The proposed rule also removes the provision providing for the Superintendent to serve notice on employees present on the lease if the designated process agent is incapacitated or absent from the state of Oklahoma. The proposed rule adds provisions setting forth the procedures the Superintendent and ONRR will use to serve official correspondence.

226.7

226.7

No substantive change.

226.8

226.4

The proposed rule removes the language allowing cash payments and updates the accepted forms of payment to include electronic funds transfer (EFT), certified check, cashier's check, money order, or commercial or personal check drawn on a solvent bank.

226.9

226.2(c)

The proposed rule clarifies the Superintendent's obligations to conduct environmental reviews and cultural surveys prior to approving leases and operations involving new or additional ground-disturbance.

226.10

226.46

The proposed rule updates this section to reflect amendments to the Paperwork Reduction Act promulgated after the section was last revised requiring the BIA to obtain OMB approval for the information collections in 25 CFR part 226. The proposed rule also adds language identifying the applicable OMB Control Numbers.

226.11 (new)

N/A

The proposed rule informs submitters of information that the BIA and ONRR will make records available to the public without prior notification, subject to exceptions for trade secrets, confidential commercial or financial information, and information protected by the Privacy Act.

226.12

226.2(f)

The proposed rule clarifies that the OMC must submit requests for the Superintendent to negotiate leases in writing and provide a resolution authorizing such negotiation. This change reflects the BIA's and OMC's existing practices for the submission of leasing requests.

226.13

226.2(f)

The proposed rule clarifies that the OMC must submit requests for the Superintendent to advertise lease sales in writing and provide a resolution authorizing such advertising. This change reflects the BIA's and OMC's existing practices for the submission of lease sale requests.

226.14

226.2(a)

The proposed rule removes the nomination fee for lease sales and clarifies the content and submission requirements for lease sale nominations. These clarifications reflect the BIA's existing requirements for lease sale nominations.

226.15

226.2(b)

The proposed rule specifies that the Superintendent will publish the Notice of Lease Sale at least 30 calendar days prior to the date of the sale. This change reflects the BIA's and OMC's existing practices for publishing such notices.

226.16

226.2(b), 226.6(a)

The proposed rule specifies that successful bidders must submit 25 percent of the bonus by 4:30 p.m. central standard time on the day of the sale. The proposed rule also removes the language allowing cash payments and updates the accepted forms of payment to electronic funds transfer (EFT), cashier's check, or money order.

226.17

226.2(b)

No substantive change.

226.18

226.2(f)

The proposed rule specifies what information offerors must include in non-competitive lease offers submitted to the OMC.

226.19

226.6(a)

The proposed rule requires successful offerors of non-competitive leases to submit the bonus and required documentation to the Superintendent within 20 calendar days of the OMC's acceptance of the offer. This change reflects the BIA's and OMC's existing requirements for non-competitive leases and is consistent with the requirements for competitive leases in the new § 226.16.

226.20

226.2(d)

The proposed rule removes oil-only and gas-only leases and requires all leases executed after the effective date of the final rule to be combination oil and gas leases.

226.21

226.9(b), 226.10

The proposed rule combines the regulations regarding extension of the primary term and the term of the lease into one section. The proposed rule specifies the actions that constitute “actual drilling operations” for purposes of obtaining an extension of the primary term.

226.22

226.5

No substantive change.

226.23

226.2(e)

The proposed rule clarifies the prohibition on U.S. Government employees acquiring interests in leases of the Osage Mineral Estate.

226.24

226.15(a)

The proposed rule specifies that lessees must submit cooperative agreements to the Superintendent for approval at least 90 calendar days prior to expiration of the leases covered by the agreements.

226.25

226.15(a)

No substantive change.

226.26

226.15(b)

No substantive change.

226.27

226.15(b)

No substantive change.

226.28 (new)

N/A

The proposed rule specifies the effective date of the transfer for lease assignments.

226.29 (new)

N/A

The proposed rule specifies that assignors are liable for lease obligations and compliance issues that accrue prior to approval of the assignment.

226.30 (new)

N/A

The proposed rule specifies that assignees are liable for lease obligations and compliance issues that accrue after approval of the assignment.

226.31

226.15(c)

No substantive change.

226.32

226.15(d)

The proposed rule removes the provision authorizing the Superintendent to approve drilling contracts because it is contrary to law and clarifies that lessees are simply required to file copies of drilling contracts with the Superintendent.

226.33

226.3

No substantive change.

226.34

226.9(a), 226.29(a)

The proposed rule combines the regulations regarding lease termination and lessees' obligations upon termination into one section. The proposed rule adds a provision specifying that leases in the extended term terminate by operation of law as of the date production in paying quantities ceases. The provision regarding termination in the extended term reflects the BIA's existing practices.

226.35

226.9(a)

The proposed rule increases the rental rate for leases approved after the effective date of the final rule. The proposed rule also requires lessees to pay advance annual rental for the full primary term within 15 calendar days of the Superintendent's approval of the lease.

226.36

226.11(a)(1)

The proposed rule removes the language requiring a royalty rate of not less than 20 percent when the quantity of oil from all wells in a quarter-section or fraction thereof during any calendar month averages 100 bbl or greater per well, per day. The proposed rule adds language authorizing the Superintendent to approve an oil royalty rate that is below the minimum royalty rate in the regulations if it is determined to be in the best interest of the Osage Nation.

226.37

226.11(a)(2)

The proposed rule requires the value of oil to be calculated using the NYMEX Calendar Month Average Price of oil at Cushing, Oklahoma instead of the highest posted price by a major purchaser in Osage County, Oklahoma.

226.38 (new)

N/A

The proposed rule specifies how to calculate the gravity adjustment of the NYMEX Calendar Month Average Price of oil.

226.39

226.11(b)

The proposed rule adds language authorizing the Superintendent to approve a gas royalty rate that is below the minimum royalty rate in the regulations if it is determined to be in the best interest of the Osage Nation.

226.40

226.11(b)

The proposed rule requires the value of gas to be calculated using the ONRR Monthly Index Zone Price for Oklahoma Zone 1 instead of the market value of the gas and products extracted therefrom.

226.41

226.11(c)

The proposed rule requires lessees to submit minimum royalty payments to ONRR instead of the Superintendent.

226.42

226.11(a)(3)

The proposed rule revises the royalty-in-kind provision to allow the OMC to take both oil and gas royalty-in-kind and adds a provision setting forth notice requirements for the OMC initiating and terminating royalty-in-kind status.

226.43

226.13(a) and (c)

The proposed rule requires lessees and purchasers to submit royalty payments to ONRR instead of the Superintendent and establishes a new due date for royalty payments. The proposed rule also adds a provision specifying the procedure for payors to recoup overpayments.

226.44

226.14

The proposed rule removes the language requiring the Superintendent's approval of royalty payment contracts and division orders and clarifies that lessees are simply required to file such contracts and division orders with the Superintendent prior to removing production from the lease.

226.45

226.13(b)

The proposed rule requires lessees to submit royalty reports to ONRR electronically, subject to certain exceptions, and establishes a new due date for reporting.

226.46

226.30

The proposed rule requires lessees to retain rental, royalty, and payment records for a minimum of six years unless the Superintendent or ONRR direct otherwise. The proposed rule also adds a provision requiring lessees to make such records available to ONRR upon request.

226.47

226.12

The proposed rule updates this section by requiring the U.S. Government to purchase oil produced from the Osage Mineral Estate at the price set forth in § 226.37.

226.48 (new)

N/A

The proposed rule authorizes ONRR to conduct audits and reviews of compliance with rental, royalty, and other payment and reporting requirements.

226.49 (new)

N/A

The proposed rule exempts existing lease (quarter-section) and collective bonds from certain changes to the bonding requirements.

226.50

226.6

The proposed rule adds a provision identifying the accepted types of performance bonds.

226.51

226.6(a) and (c)

The proposed rule replaces the $5,000 lease bond for each quarter-section or fraction thereof covered by the lease with an individual well bond of $6 per foot of measured or projected well depth.

226.52

226.6(a) and (b)

The proposed rule combines the collective and nationwide bond provisions into one section. The proposed rule changes the collective bond (covering all leases up to 10,240 acres) to a countywide bond covering only those operations in Osage County up to 10,240 acres and increases the bond amount from $50,000 to $75,000.

226.53

226.6(d)

The proposed rule clarifies the conditions that justify the Superintendent increasing the required bond amount and adds a provision placing a limit on the amount of any such increase.

226.54 (new)

N/A

The proposed rule specifies that the Superintendent has authority to call for the forfeiture of performance bonds and clarifies lessees' obligations upon default. This change reflects the Superintendent's existing authority, as all bonds are payable to the Superintendent. The proposed rule adds a provision specifying that the United States or OMC may take action to recover from lessees all costs in excess of the amount collected under the bond if an obligation in default exceeds the face amount of the bond.

226.55 (new)

N/A

The proposed rule specifies that the period of liability under a performance bond will not terminate, and the bond will not be released, until all lease obligations have been satisfied. This reflects the BIA's existing practices for the release of bonds.

226.56 (new)

N/A

The proposed rule requires bonding for geophysical exploration activities, subject to certain exceptions for existing lessees.

226.57 (new)

N/A

The proposed rule specifies that the Superintendent has authority to call for the forfeiture of geophysical exploration bonds. This is consistent with the Superintendent's authority for performance bonds for all other oil and gas operations within the Osage Mineral Estate.

226.58 (new)

N/A

The proposed rule specifies that the period of liability under a geophysical exploration bond will not terminate, and the bond will not be released, until all permit obligations have been satisfied. This is consistent with the BIA's existing practices for the release of performance bonds for all other oil and gas operations within the Osage Mineral Estate.

226.59

226.19(a)

The proposed rule adds a provision requiring lessees and permittees to properly maintain installations and equipment and comply with the National Electrical Code.

226.60

226.30

The proposed rule clarifies the Superintendent's authority to inspect and investigate operations.

226.61

226.16(a)

The proposed rule clarifies the language regarding the commencement of operations, expressly stating that operations may not commence until the Superintendent approves a lease or geophysical exploration permit, as applicable.

226.62

226.17

No substantive change.

226.63

226.18

The proposed rule adds a provision requiring lessees and permittees to send meeting requests to surface owners by certified mail. The proposed rule also adds a provision authorizing the Superintendent to approve the commencement of operations if a meeting request cannot be delivered to the surface owner's last known address or the surface owner fails to accept the request within 30 calendar days of receiving it.

226.64

226.19(b) through (d)

The proposed rule combines the regulations regarding commencement money for operations and tank siting fees into one section. The proposed rule increases the amount of commencement money for drilling and reentering wells and siting tanks and adds a provision requiring lessees and permittees to pay commencement money for the acreage occupied during seismic surveys using vibroseis. The proposed rule also adds a provision stating that commencement money that cannot be delivered to the surface owner's last known address or that the surface owner refuses is deemed forfeited.

226.65

226.19(a), 226.24

The proposed rule combines the regulations regarding the use of surface lands and water into one section. No substantive changes.

226.66

226.16(b)(1) and (c); 226.33

The proposed rule combines the regulations regarding drilling operations and line drilling requirements into one section. The proposed rule specifies that lessees must provide the Superintendent with five calendar days' notice of drilling operations. The proposed rule adds a line drilling requirement imposing a setback from certain water sources. This setback is consistent with the BIA's existing permit conditions under the Osage County Oil and Gas Final Environmental Impact Statement (2020).

226.67

226.36

The proposed rule requires lessees to obtain the Superintendent's prior approval to drill wells that deviate significantly from the vertical and conduct directional surveys if deviation occurs without prior approval.

226.68

226.40

No substantive change.

226.69

226.16(b)(1) and (2), (c);

The proposed rule specifies that lessees must provide the Superintendent with at least five calendar days' notice of workover operations. The proposed rule adds a provision clarifying that prior approval and a subsequent report of operations are not required for certain well maintenance activities. This change reflects the BIA's existing practices with respect to well maintenance activities.

226.70 (new)

N/A

The proposed rule establishes testing, training, operational, and safety requirements for drilling and workover operations in Hydrogen Sulfide (H

2

S) areas.

226.71

226.32(b), (d)

The proposed rule adds a provision requiring lessees to conduct reasonable tests of the mechanical integrity of downhole equipment.

226.72

226.28(a)

The proposed rule clarifies the language regarding temporary abandonment, more clearly stating that lessees must obtain the Superintendent's approval to temporarily abandon a well for more than 30 calendar days.

226.73

226.28(a) and (b); 226.29(c) and (d)

The proposed rule combines the regulations regarding permanent abandonment and plugging obligations into one section. The proposed rule removes the plugging application fee and requirement that oil-only and gas-only lessees offer wells to one another prior to abandonment. The proposed rule specifies that lessees must provide the Superintendent with five calendar days' notice of plugging operations.

226.74

226.32(a), (c), and (e)

The proposed rule requires lessees to submit certain information together with the subsequent report of hydraulic fracturing operations and adds a provision specifying the procedure for lessees to withhold confidential information regarding such operations. The proposed rule also clarifies that lessees must retain well records and reports for a minimum of six years unless the Superintendent directs otherwise.

226.75

226.34

The proposed rule adds a provision requiring lessees to mark wells that are permanently plugged and abandoned.

226.76

226.22(a), 226.35

The proposed rule combines the regulations regarding the prevention of pollution and protection of formations into one section. The proposed rule specifies that lessees and permittees must conduct surveys and tests of the measures taken to protect fresh water and mineral bearing formations and provide the results to the Superintendent upon request.

226.77

226.22(b) through (e)

The proposed rule adds provisions prohibiting lessees from constructing pits in certain sensitive locations consistent with the BIA's existing permit conditions under the Osage County Oil and Gas Final Environmental Impact Statement (2020). The proposed rule also adds a provision requiring the Superintendent's prior approval for the land application of drilling fluids.

226.78 (new)

N/A

The proposed rule requires lessees to remove fire hazards from well sites and facilities and safely dispose of waste oil. These requirements are consistent with the BIA's existing permit conditions under the Osage County Oil and Gas Final Environmental Impact Statement (2020).

226.79 (new)

N/A

The proposed rule requires a geophysical exploration permit to conduct geophysical exploration operations on both leased and unleased lands.

226.80 (new)

N/A

The proposed rule specifies that lessees and permittees must provide the Superintendent with five calendar days' notice of geophysical exploration operations.

226.81 (new)

N/A

The proposed rule requires lessees and permittees to submit subsequent reports of geophysical exploration operations to the Superintendent.

226.82

226.20

No substantive change.

226.83

226.21

No substantive change.

226.84

226.9(a)

The proposed rule specifies that lessees must place oil and gas into marketable condition at no cost to the lessor. This change is consistent with current industry practices within the Osage Mineral Estate.

226.85

226.13(b)

The proposed rule requires lessees to submit production reports to ONRR electronically, subject to certain exceptions, and establishes a new due date for production reports.

226.86 (new)

N/A

The proposed rule requires lessees to submit site facility diagrams to the Superintendent and specifies the format and content of such diagrams.

226.87 (new)

N/A

The proposed rule requires lessees to use FMP numbers when reporting production to ONRR.

226.88 (new)

N/A

The proposed rule specifies what information production records must contain and requires lessees to maintain such records for a minimum of six years unless the Superintendent or ONRR direct otherwise. The proposed rule also requires lessees, purchasers, and transporters to provide production records to ONRR upon request.

226.89

226.23

No substantive change.

226.90

226.37

No substantive change.

226.91 (new)

N/A

The proposed rule requires lessees to pay compensatory royalty for avoidably lost or wasted production. This change reflects the BIA's existing requirement to pay royalty for lost and wasted production. The proposed rule specifies when production is considered avoidably and unavoidably lost or wasted.

226.92 (new)

N/A

The proposed rule sets forth lessees' responsibilities for protecting oil and gas resources from drainage.

226.93 (new)

N/A

The proposed rule requires lessees to pay compensatory royalty for drainage if protective action is not taken within a reasonable time and specifies how compensatory royalty will be calculated.

226.94 (new)

N/A

The proposed rule requires the use of seals on appropriate valves at oil storage and sales facilities and prohibits tampering with such valves.

226.95 (new)

N/A

The proposed rule requires the use of seals on oil measurement system components.

226.96 (new)

N/A

The proposed rule requires transporters removing oil from storage tanks to possess run tickets, trip logs, and manifests.

226.97 (new)

N/A

The proposed rule requires any person transporting oil or gas to possess documentation indicating the first purchaser and authorizes the Superintendent and law enforcement to conduct vehicle inspections.

226.98 (new)

N/A

The proposed rule requires lessees, purchasers, and transporters to record certain information when water is drained from tanks holding oil.

226.99 (new)

N/A

The proposed rule requires lessees to record certain information when oil is removed from storage and used on the lease or unit for hot oiling, clean up, and completion operations. The proposed rule also requires lessees to report all production removed from storage and used on a different lease to ONRR.

226.100 (new)

N/A

The proposed rule specifies the records that lessees must maintain for each seal.

226.101 (new)

N/A

The proposed rule requires lessees to obtain the Superintendent's approval for off-lease measurement of production.

226.102

226.41

The proposed rule specifies that lessees must report spills, thefts, mishandling of production, accidents, and fires to both the Superintendent and surface owners immediately upon discovery and requires lessees to submit incident reports with proposed contingency or remediation plans to the Superintendent. This change reflects the BIA's current requirements for reporting of such incidents. The proposed rule adds a provision requiring lessees to provide surface owners with both emergency and written notification of such incidents.

226.103 (new)

N/A

The proposed rule prohibits bypasses of meters and tampering with oil measurement devices, the components of such devices, and the measurement process and imposes the maximum penalty for such violations.

226.104 (new)

N/A

The proposed rule establishes the timeframe for complying with the new requirements for oil measurement equipment and procedures.

226.105

N/A

[Reserved]

226.106 (new)

N/A

The proposed rule establishes requirements for oil volume uncertainty levels, measurement bias, and equipment verification.

226.107

226.38

The proposed rule specifies that tank gauging may be used to measure oil and updates requirements for the use and calibration of oil storage tanks.

226.108

226.38

The proposed rule specifies the required tank gauging procedures.

226.109

226.38

The proposed rule specifies that Lease Automatic Custody Transfer (LACT) systems may be used to measure oil and sets forth general requirements for LACT systems.

226.110

226.38

The proposed rule identifies required LACT system equipment and sets forth standards for operating LACT system components.

226.111

226.38

The proposed rule specifies that Coriolis Measurement Systems (CMS) may be used to measure oil and sets forth general requirements for CMS and CMS components.

226.112

226.38

The proposed rule establishes Coriolis meter operating requirements.

226.113 (new)

N/A

The proposed rule sets forth requirements for volumetric meter proving.

226.114 (new)

N/A

The proposed rule requires the completion and submission of run tickets for tank gauging, LACT systems, and CMS. This change codifies the BIA's existing requirements with respect to run tickets.

226.115

226.38

The proposed rule specifies that the Superintendent's approval is required to use methods of oil measurement other than tank gauging, LACT system, or CMS.

226.116 (new)

N/A

The proposed rule prohibits the sale and disposal of waste oil without the Superintendent's approval. This change codifies the BIA's existing requirement.

226.117 (new)

N/A

The proposed rule prohibits bypasses of meters. The proposed rule also prohibits tampering with any measurement device, component of a measurement device, or the measurement process. The proposed rule imposes the maximum penalty for such violations.

226.118 (new)

N/A

The proposed rule establishes the timeframe for complying with the new requirements for gas measurement equipment and procedures.

226.119

N/A

[Reserved]

226.120 (new)

N/A

The proposed rule establishes requirements for gas flow rate and heating value uncertainty, measurement bias, and equipment verification.

226.121

226.39

The proposed rule specifies the standards for orifice plates and meter tubes and sets forth inspection requirements.

226.122

226.39

The proposed rule establishes standards for the use of mechanical recorders.

226.123 (new)

N/A

The proposed rule establishes requirements for the verification and calibration of mechanical recorders, correction of reported gas volumes, and certification of test equipment.

226.124 (new)

N/A

The proposed rule specifies what information integration statements must contain and requires lessees to retain integration statements.

226.125

226.39

The proposed rule establishes standards for the use of electronic gas measurement (EGM) systems.

226.126 (new)

N/A

The proposed rule establishes requirements for the verification and calibration of transducers, correction of reported gas volumes, and certification of test equipment.

226.127 (new)

N/A

The proposed rule provides the gas flow rate, volume, and average value calculations.

226.128 (new)

N/A

The proposed rule requires lessees to retain certain logs and records and make them available to the Superintendent upon request.

226.129 (new)

N/A

The proposed rule specifies the methods of gas sampling and analysis that may be used.

226.130 (new)

N/A

The proposed rule establishes standards for the location, design, and type of sampling probes and sample tubing size.

226.131 (new)

N/A

The proposed rule establishes the general requirements for taking spot samples.

226.132 (new)

N/A

The proposed rule specifies the methods of spot sampling that may be used.

226.133 (new)

N/A

The proposed rule specifies the frequency with which lessees must take and analyze spot samples.

226.134 (new)

N/A

The proposed rule establishes specifications for composite sampling methods.

226.135 (new)

N/A

The proposed rule establishes requirements for the installation, operation, verification, and calibration of on-line gas chromatographs.

226.136 (new)

N/A

The proposed rule establishes requirements for the installation, operation, verification, and calibration of gas chromatographs.

226.137 (new)

N/A

The proposed rule identifies the components of gas that must be analyzed and the frequency with which component analysis must occur.

226.138 (new)

N/A

The proposed rule specifies what information gas analysis reports must contain.

226.139 (new)

N/A

The proposed rule specifies the effective date of a spot or composite gas sample.

226.140 (new)

N/A

The proposed rule establishes requirements for calculating the heating value, average heating value, and volume of a gas sample.

226.141 (new)

N/A

The proposed rule establishes requirements for reporting gross and real heating values and volumes.

226.142

226.27(b)

The proposed rule updates the provision by requiring the Osage Nation and Tribal members to pay for gas at the price set forth in § 226.40.

226.143

226.27(b)

The proposed rule updates the provision by requiring the lessee to pay royalty on all gas furnished to the Osage Nation and Tribal members at the rate set forth in § 226.39.

226.144

226.11(a)(1) and (b)(2)

No substantive change.

226.145 (new)

N/A

The proposed rule identifies the uses of production on a lease or unit that do not require the Superintendent's prior approval for royalty-free treatment.

226.146 (new)

N/A

The proposed rule identifies the uses of production on a lease or unit that require the Superintendent's prior approval for royalty-free treatment.

226.147 (new)

N/A

The proposed rule identifies the uses of production off the lease or unit that do not require the Superintendent's prior approval of royalty-free treatment.

226.148 (new)

N/A

The proposed rule identifies the uses of production off the lease or unit that require the Superintendent's prior approval of royalty-free treatment.

226.149 (new)

N/A

The proposed rule sets forth requirements for the measurement and reporting of royalty-free volumes of oil and gas used.

226.150 (new)

N/A

The proposed rule specifies that lessees do not need to own or lease the equipment or facility that uses royalty-free oil and gas.

226.151 (new)

N/A

The proposed rule sets forth procedures for requesting royalty-free use of oil and gas.

226.152

226.37

The proposed rule adds a provision prohibiting the venting and flaring of gas without the Superintendent's prior approval. The proposed rule also requires all flares and combustible devices to be equipped with an automatic ignition system. This reflects the BIA's existing requirements for venting and flaring and is consistent with the BIA's existing permit conditions under the Osage County Oil and Gas Final Environmental Impact Statement (2020).

226.153 (new)

N/A

The proposed rule adds a provision prohibiting the venting and flaring of gas-well gas unless it is unavoidably lost.

226.154 (new)

N/A

The proposed rule authorizes the venting and flaring of oil-well gas in accordance with §§ 226.155, 226.156, and 226.157.

226.155 (new)

N/A

The proposed rule requires gas to be flared, rather than vented, subject to certain exceptions.

226.156 (new)

N/A

The proposed rule authorizes the venting and flaring of gas during certain tests, well maintenance activities, and emergencies.

226.157 (new)

N/A

The proposed rule sets forth the requirements for measuring and reporting the volumes of gas vented and flared.

226.158

226.42

The proposed rule identifies the remedies the Superintendent may utilize to address violations of lease or permit terms and conditions, the regulations, and orders or notices.

226.159

226.43

The proposed rule updates the list of lease operation violations that will result in immediate assessments.

226.160 (new)

N/A

The proposed rule authorizes the Superintendent to issue assessments if a lessee fails to commence or perform an operation within five calendar days of an order to do so if the Superintendent performs the operation or must retain a third-party to perform the operation.

226.161 (new)

N/A

The proposed rule sets forth the procedure the Superintendent will use to notify lessees of lease violations that have a period to correct prior to the assessment of penalties and the penalty amounts imposed if violations are not timely corrected.

226.162 (new)

N/A

The proposed rule sets forth the procedure the Superintendent will use to notify lessees of lease violations that do not have a period to correct prior to the assessment of penalties and the penalty amounts imposed for such violations.

226.163 (new)

N/A

The proposed rule specifies the factors the Superintendent will consider in determining that amount of the penalty to assess.

226.164

226.28(c)

The proposed rule clarifies the circumstances under which the Superintendent may take shut-in action.

226.165

226.29(b); 226.42

The proposed rule specifies the circumstances under which the Superintendent may cancel a lease or permit and the procedure for cancelling a lease or permit.

226.166

226.42

The proposed rule specifies that interest on unpaid and underpaid civil penalties and assessments will be charged at the IRS underpayment rate or such other rate as the Superintendent may prescribe.

226.167 (new)

N/A

The proposed rule identifies the remedies ONRR may utilize to address violations of lease or permit terms and conditions, the regulations, and orders or notices.

226.168 (new)

N/A

The proposed rule authorizes ONRR to issue assessments for incorrect or late royalty and production reporting and specifies the amount of such assessments.

226.169 (new)

N/A

The proposed rule authorizes ONRR to issue assessments for failing to submit the correct payment amount or providing inadequate or erroneous information and specifies the amounts of such assessments.

226.170 (new)

N/A

The proposed rule sets forth the procedure ONRR will use to notify reporters and payors of violations that have a period to correct prior to the assessment of penalties and the penalty amounts imposed if violations are not timely corrected.

226.171 (new)

N/A

The proposed rule sets forth the procedure ONRR will use to notify reporters and payors of violations that do not have a period to correct prior to the assessment of penalties and the penalty amounts imposed.

226.172 (new)

N/A

The proposed rule specifies the factors ONRR will consider in determining the amount of the penalty to assess.

226.173 (new)

N/A

The proposed rule specifies the due date for remitting payment of penalties and assessments to ONRR and that interest on unpaid and underpaid penalty and assessment amounts will be charged at the rate set forth in § 226.166(b).

226.174 (new)

N/A

The proposed rule specifies the actions ONRR may take to collect unpaid civil penalties.

226.175 (new)

N/A

The proposed rule specifies that ONRR will refer past due debts to the U.S. Treasury for collection or tax refund offset and may assess administrative costs.

226.176

226.43(j)

No substantive change.

226.177

226.44

The proposed rule clarifies the procedures for filing administrative appeals of decisions the Superintendent and Regional Director issue.

226.178 (new)

N/A

The proposed rule sets forth the procedures for filing administrative appeals of orders that ONRR issues.

226.179 (new)

N/A

The proposed rule specifies the conditions for suspension of compliance with an ONRR order during an administrative appeal.

226.180 (new)

N/A

The proposed rule sets forth the requirements for posting an appeal bond or other surety on an appellant's behalf for administrative appeals of ONRR orders.

226.181 (new)

N/A

The proposed rule specifies when an obligation to comply with an ONRR order is suspended due to judicial review.

226.182 (new)

N/A

The proposed rule specifies when ONRR will collect bonds and other surety instruments posted for administrative appeals.

226.183 (new)

N/A

The proposed rule specifies that the ONRR bond-approving officer's determination of the required surety amount is not subject to appeal.

226.184 (new)

N/A

The proposed rule sets forth the standards for ONRR-specified surety instruments.

226.185 (new)

N/A

The proposed rule explains how ONRR will determine the bond or surety instrument amount.

Appendix A

N/A

Table of Atmospheric Pressures to be used with §§ 226.123(a)(7) and (c)(10), 226.124(c), 226.126(a)(3), and 226.127(b).

VI. Procedural Matters

A. Regulatory Planning and Review (Executive Orders 12866 and 13563)

Executive Order 12866 provides that the Office of Information and Regulatory Affairs (OIRA) at the Office of Management and Budget (OMB) will review all significant rules. OIRA determined that this proposed rule is not significant.

Executive Order 13563 reaffirms the principles of Executive Order 12866, while calling for improvements in the Nation's regulatory system to promote predictability, to reduce uncertainty, and to use the best, most innovative, and least burdensome tools for achieving regulatory ends. The Executive Order directs agencies to consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public where these approaches are relevant, feasible, and consistent with regulatory objectives. Executive Order 13563 further emphasizes that regulations must be based on the best available science and that the rulemaking process must allow for public participation and an open exchange of ideas. We developed this proposed rule in a manner consistent with these requirements.

B. Regulatory Flexibility Act

The Regulatory Flexibility Act (5 U.S.C. 601,

et seq.

) (RFA) requires Federal agencies to prepare a regulatory flexibility analysis for rules subject to notice-and-comment rulemaking requirements under the Administrative Procedure Act (5 U.S.C. 500,

et seq.

) to determine whether a regulation would have a significant economic impact on a substantial number of small entities. The BIA does not believe the proposed rule would have a significant economic impact on a substantial number of small entities. Accordingly, a regulatory flexibility analysis is not required by the RFA. Although such analysis is not required, BIA performed an initial regulatory flexibility analysis pursuant to section 603 of the RFA as part of its Regulatory Impact Analysis (RIA). The IFRA, included as Appendix B to the RIA, analyzes impacts on small entities that may be affected by the proposed rule and is available upon request (see

ADDRESSES

). The IFRA for the proposed rule uses the best available information to identify potential impacts on small entities.

Small entities include small businesses, small governmental jurisdictions, and small organizations, as defined by section 601 of the RFA. A small entity is one that is independently owned and operated and is not dominant in its field of operation. The small entities most likely to be impacted by the proposed rule are small businesses in the mining sector; impacts to small governmental jurisdictions and small organizations are not anticipated. The Small Business Administration (SBA) defines small businesses in the crude petroleum and natural gas extraction industry as those with 1,250 employees or less. For subsector mining support activities, the SBA defines small businesses as drilling contractors with 1,000 employees or less and service companies with less than $41.5 million per year in revenues. Under these size standards, most oil and gas lessees and supporting entities within the Osage Mineral Estate would be classified as small businesses. Accordingly, the proposed rule would likely impact a substantial number of small entities within the Osage Mineral Estate.

Using the best available data for the past three years of production (2018-2020), there were an average of 223 lessees actively and exclusively producing oil from the Osage Mineral Estate, 5 lessees actively and exclusively producing gas from the Osage Mineral Estate, and 59 lessees actively producing both oil and gas from the Osage Mineral Estate, for a combined average of 286 lessees actively producing oil and gas. The volume of production varies substantially across lessees, with a substantial number of smaller lessees producing marginal volumes of oil and gas and several larger lessees producing the majority of annual production from the Osage Mineral Estate. For example, two lessees produced over 250,000 barrels of oil annually between 2018 and 2020, comprising 41 percent of all oil production from the Osage Mineral Estate during that period. In contrast, approximately 100 lessees during the same period produced less than 1,000 barrels of oil annually. The allocation of production for gas is similarly skewed.

To estimate the economic impacts on small entities, the IFRA estimates costs of the proposed rule for “average” lessees (286 active lessees) by assuming that lessees produce an average volume

of oil and gas, that costs are shared equally across lessees, and that small entities would bear all costs of the proposed rule. The estimated costs of the proposed rule (including compliance costs, reporting and recordkeeping costs, and other payments) are $18,000 to $26,000 per year for “average” lessees, which could represent between 15 to 65 percent of annual profits depending on the lessee. As the IFRA assumes that costs are shared equally across lessees, however, the estimated per entity costs are higher than would be expected for lessees with small production volumes and lower than would be expected for lessees with large production volumes. For example, a lessee producing marginal oil volumes will have lower impacts from a change in the valuation of oil for royalty purposes than a lessee producing the “average” volume of oil.

The BIA does not believe the proposed rule would conflict with, duplicate, or overlap any relevant Federal rules in a way that would unnecessarily add cumulative regulatory burdens on small entities without any gain in regulatory benefits. BIA invites public comments identifying any Federal rules that may conflict with, duplicate, or overlap the proposed rule.

C. Small Business Regulatory Enforcement Fairness Act

This proposed rule is not a major rule under the Small Business Regulatory Enforcement Fairness Act, 5 U.S.C. 804(2). This proposed rule would not have an annual effect on the economy of $100 million or more; would not cause a major increase in the costs or prices for consumers, individual industries, Federal, State, local government agencies, or geographic regions; and would not have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises.

D. Unfunded Mandates Reform Act

This proposed rule would not impose an unfunded mandate on State, local, or Tribal governments or the private sector of $100 million or more per year. The proposed rule would not have a significant or unique effect on State, local, or Tribal governments or the private sector. A statement containing the information required by the Unfunded Mandates Reform Act, 2 U.S.C. 1531,

et seq.,

is not required for this proposed rule.

E. Takings (Executive Order 12630)

This proposed rule would not constitute a taking of private property or otherwise have takings implications under Executive Order 12630. The proposed rule would revise certain operational and administrative requirements for existing lessees. All such operations are subject to lease terms and conditions and a current regulation expressly requiring compliance with amendments to the regulations except that the term of the lease, acreage, rental rate, and royalty rate may not be changed absent agreement by both parties to the lease. The proposed rule conforms to those requirements. A takings implication assessment is not required.

F. Federalism (Executive Order 13132)

Under the criteria in Executive Order 13132, this proposed rule would not have a substantial direct effect on the States, the relationship between the Federal Government and the States, or the distribution of power and responsibilities among the various levels of government. A federalism impact statement is not required.

G. Civil Justice Reform (Executive Order 12988)

This proposed rule complies with the requirements of Executive Order 12988. Specifically, this proposed rule was reviewed to eliminate errors and ambiguity and written to minimize litigation. In addition, this proposed rule was written in clear language and contains clear legal standards.

H. Consultation With Indian Tribal Governments (Executive Order 13175)

The BIA evaluated this proposed rule under the criteria set forth in Executive Order 13175 and in accordance with Departmental policy to identify possible effects on federally recognized Indian Tribes and Indian trust assets. This proposed rule applies to oil and gas leasing and development activities within the Osage Mineral Estate in Osage County, Oklahoma. As the Osage Mineral Estate is held in trust by the United States for the benefit of the Osage Nation, this proposed rule has the potential to affect the Osage Nation.

On September 22, 2016, the BIA sent letters to the Osage Nation and Osage Minerals Council inviting their participation in government-to-government consultation to discuss potential revision of the regulations in this part. Both the Osage Nation and Osage Minerals Council expressed an interest in such consultation. On October 25, 2016, the BIA held a consultation with the Osage Nation, Osage Minerals Council, and their legal counsel in Pawhuska, Oklahoma and the parties agreed that revision of the regulations was appropriate. As part of the rulemaking effort, the BIA proposed that the process include an opportunity for the Osage Nation and Osage Minerals Council to provide input on proposed revisions to the regulations prior to the BIA preparing the proposed rule for publication in the

Federal Register

. The parties agreed that the BIA would prepare a discussion draft revising the regulations, provide it to the Osage Nation and Osage Minerals Council for review and comment, and hold a second government-to-government consultation to discuss Tribal representatives' feedback. Thereafter, the BIA would begin preparation of the proposed rule.

On August 18, 2020, the BIA provided the Osage Nation and Osage Minerals Council with the discussion draft revising the regulations in 25 CFR part 226. The BIA proposed that the parties conduct the second government-to-government consultation to receive the Tribe's feedback on the discussion draft in November 2020. On October 7, 2020, the Osage Minerals Council requested that the review period for the discussion draft be extended to February 1, 2021. The BIA agreed to the extension. On December 16, 2020, the Osage Minerals Council requested an additional government-to-government consultation prior to providing feedback on the discussion draft. The BIA agreed to conduct an additional consultation, but the Osage Nation and Osage Minerals Council did not respond to communications attempting to schedule the consultation.

On February 11, 2021, the Director of the Bureau of Indian Affairs, exercising the delegated authority of the Assistant Secretary—Indian Affairs, sent a letter to the Osage Nation and Osage Minerals Council advising of the deadline for scheduling the additional consultation requested and providing feedback on the discussion draft. On February 25, 2021, the Osage Minerals Council responded and declined the BIA's invitation to provide written feedback on the discussion draft and participate in government-to-government consultations relating thereto. The BIA advised the Osage Nation and Osage Minerals Council that they would still have the opportunity to provide feedback following publication of the proposed rule in the

Federal Register

.

On February 22, 2022, the Osage Minerals Council sent a letter to the Assistant Secretary—Indian Affairs requesting that the BIA not publish a proposed rule based on the discussion

draft the Council received in 2020 and, instead, work with the Council to prepare a new set of regulations. The Assistant Secretary—Indian Affairs spoke with the Chairman of the Osage Minerals Council by phone and explained that the proposed rule had already been prepared and the BIA was in the process of completing the procedural requirements for publication. The Assistant Secretary—Indian Affairs advised that the BIA remained open to consulting with the Osage Nation and Osage Minerals Council following publication of the proposed rule in the

Federal Register

and noted that written feedback can also be provided as part of the public comment process.

I. Paperwork Reduction Act

All information collections require approval under the Paperwork Reduction Act of 1995 (PRA), 44 U.S.C. 3501,

et seq.

We may not conduct or sponsor, and you are not required to respond to, a collection of information unless it displays a currently valid Office of Management and Budget (OMB) Control Number. There are BIA and ONRR information collection requirements in this proposed rule. The BIA is proposing to renew its information collection with revisions (OMB Control No. 1076-0180) and ONRR is proposing to renew two information collections with revisions (OMB Control Nos. 1012-0004 and 1012-0006).

1. OMB Control Number 1076-0180 (BIA)

The OMB has reviewed and approved information collections for the existing regulations in 25 CFR part 226, which are assigned OMB Control No. 1076-0180. The BIA is proposing to renew information collection 1076-0180 with revisions. The following BIA revisions to reporting and recordkeeping requirements in the proposed rule require OMB's approval:

Section(s)

Proposed revision(s) to OMB 1076-0180

OMB 1076-0180 form(s)

226.6(b)

Lessees must provide the name and address for a designated point of contact upon whom the Superintendent can serve official correspondence regarding the lease and operations thereon

Osage Form A—Lease Contact of Record.

226.9(a)

Lessees may submit a draft environmental assessment (EA) for proposed drilling operations and any other proposed ground-disturbing activities occurring outside the existing well pad. This requirement is the same as the requirement in existing § 226.2(c)

None.

226.9(b)

Lessees must submit a Cultural Resources Survey for proposed drilling operations and any other proposed ground-disturbing activities occurring outside the existing well pad if the location of the operations or activities is not covered by a prior survey. This requirement is the same as the requirement in existing § 226.2(c)

None.

226.12(b)

The Osage Minerals Council (OMC) may request that the Superintendent negotiate a non-competitive lease with a prospective lessee on its behalf by submitting a Resolution authorizing the Superintendent to undertake such action. This requirement is the same as the requirement in existing § 226.2(f)

None.

226.13(a)

The OMC may request that the Superintendent advertise a competitive lease sale by submitting a Resolution that specifies the proposed location, date, and time of the lease sale as well as the minimum acceptable bid. This requirement is the same as the requirement in existing § 226.2(f)

None.

226.14(a)

An individual who wants to nominate a tract for a competitive lease sale must submit a nomination letter that includes their name and address as well as the legal description of the tract they are nominating. This requirement is the same as the requirement in existing § 226.2(a)

None.

226.17(a)(2) through (4)

The successful bidder at a competitive lease sale must submit an executed lease form, evidence of authority to execute papers form, and certificate of good standing from the Oklahoma Secretary of State. This requirement is the same as the requirement in existing § 226.2(b)

Osage Form B—Evidence of Authority to Execute Papers.

Osage Form C—Oil and/or Gas Mining Lease.

226.19(a)(2) through (4)

A prospective lessee who negotiates a non-competitive lease with the OMC must submit an executed lease form, evidence of authority to execute papers form, and certificate of good standing from the Oklahoma Secretary of State. This requirement is the same as the requirement in existing § 226.2(f)

Osage Form B—Evidence of Authority to Execute Papers.

Osage Form C—Oil and/or Gas Mining Lease.

226.21(b)

Lessees may submit a lease amendment form evidencing an agreement between the lessee and OMC to extend the primary term of the lease. This requirement is the same as the requirement in existing § 226.9(b)

Osage Form D—Lease Amendment.

226.24(b)

The lessee or OMC may submit a proposed cooperative agreement whereby the parties agree to unitize or merge one or more leases of the Osage Mineral Estate to promote development. This requirement is the same as the requirement in existing § 226.15(a)

None.

226.24(c)

The lessee or OMC may submit an agreement whereby the parties agree to modify, amend, or terminate an approved cooperative agreement. This requirement is the same as the requirement in existing § 226.15(a)

None.

226.26(c)

A lessee (assignor) may submit a lease assignment form transferring record title in an approved lease to another existing or prospective lessee (assignee). This requirement is the same as the requirement in existing § 226.15(b)

Osage Form E—Assignment of Record Title Interest.

226.33(a)

Lessees must submit a request to surrender all or part of an approved lease. This requirement is the same as the requirement in existing § 226.3

None.

226.34(d)

Lessees must submit a copy of any agreement with a surface owner where the parties agree that the lessee can remove permanent improvements from the lease following termination. This requirement is the same as the requirement in existing § 226.29(a)

None.

226.36

The OMC must submit a Resolution approving a royalty rate for oil that is below the regulatory minimum of 12

1/2

percent. This requirement is the same as the requirement in existing § 226.11(a)

None.

226.39

The OMC must submit a Resolution approving a royalty rate for gas that is below the regulatory minimum of 12

1/2

percent. This requirement is the same as the requirement in existing § 226.11(b)

None.

226.42(b)

The OMC must submit a Resolution providing notice of its intention to take oil and/or gas royalty in kind. This requirement is the same as the requirement in existing § 226.11(a), except that the new provision allows the OMC to take both oil and gas royalty in kind, instead of allowing the OMC to only take oil royalty in kind

None.

226.44(a)

Lessees must submit contracts or division orders with purchasers of oil and gas. This requirement is the same as the requirement in existing § 226.14, except that the Superintendent's approval of contracts and division orders is no longer required

None.

226.46(b)

Lessees must make, retain, and preserve royalty, rental, and payment records for six years from the date upon which the relevant transaction was recorded or such longer period as the Superintendent or ONRR may require. This requirement is the same as the requirement in existing § 226.30, except that it reduces the burden by providing a specific timeframe for record retention and clarifies that both the Superintendent ONRR may request the subject records

None.

226.51(c), 226.52(a) and (b)

Lessees must file an individual well bond for each well the lessee proposes to drill, reenter, recomplete, or accept responsibility for through assignment; a countywide bond covering all leases of the Osage Mineral Estate (10,240 acres maximum); or a nationwide bond covering all leases within the United States to which the lessee is a party. This requirement is the same as the requirement in existing § 226.6(a)

Osage Form F—Oil and Gas Lease Bond.

226.56(a) and (c)

Lessees and permittees must file an Oil and Gas Exploration Bond Form for geophysical exploration operations. An existing lessee with a countywide or nationwide Oil and Gas Lease Bond may file a bond rider covering geophysical exploration operations in lieu of filing an Oil and Gas Exploration Bond. There is no form for bond riders because they are prepared by the surety

Osage Form G—Oil and Gas Geophysical Exploration Bond.

226.65(b)

Lessees must submit a request to expand an approved drilling site beyond the acreage set forth in the approved EA. This requirement is the same as the requirement in existing § 226.19(b)

None.

226.66(a)

Lessees must submit an application for a permit to drill or reenter a well. This requirement is the same as the requirement in existing § 226.16(b), but the burden on respondents is reduced because Osage Form 139 is now a fillable form that can be completed and submitted electronically

Osage Form 139—Application for Permit to Drill or Workover Wells.

226.66(c)

Lessees must notify the Superintendent of planned drilling and reentry operations five days prior to the commencement thereof. Notice may be provided by phone or email. This requirement is the same as the requirement in existing § 226.16(c), except that the new provision specifies that the timeframe for providing notice is five days as opposed to “a reasonable time in advance.”

None.

226.66(d)

Lessees must submit a request to drill a well within 300 feet of the lease boundary or locate a well or tank within 200 feet of roads or highways maintained for public use, water sources, and residences, granaries, and barns. This requirement is the same as the requirement in existing § 226.33

None.

226.67(b)

Lessees must submit a request to drill a well that deviates significantly from the vertical and report the drilling of any well that deviates significantly from the vertical without prior approval

None.

226.69(a)

Lessees must submit an application for a permit to workover a well. This requirement is the same the requirement in existing § 226.16(b), but the burden hours are reduced because Osage Form 139 is now a fillable form that can be completed and submitted electronically

Osage Form 139—Application for a Permit to Drill or Workover Wells.

226.69(c)

Lessees must notify the Superintendent of planned workover operations five days prior to the commencement thereof. Notice may be provided by phone or email. This requirement is the same as the requirement in existing § 226.16(c), except that the new provision specifies that the timeframe for providing notice is five days as opposed to “a reasonable time in advance.”

None.

226.70(a)

Lessees must submit the results of H

2

S concentration tests upon request and submit radius of exposure calculations for any well or production facility with an H

2

S concentration of 100 ppm or more

None.

226.70(b)(1) and (2)

Lessees must report any release of a potentially hazardous volume of H

2

S as soon as practicable, but not later than 24 hours following identification of the release. Notice must be provided by phone. A lessee must submit a Public Protection Plan for the potential release of a hazardous volume of H

2

S if:

None.

1. The 100 ppm radius of exposure is greater than 50 feet and includes any part of a residence, school, church, park, place of business, or other area the general public can reasonably be expected to frequent;

2. The 500 ppm radius of exposure is greater than 50 feet and includes any part of a federal, state, county, or municipal road or highway that is owned and maintained for public use; or

3. The 100 ppm radius of exposure if greater than or equal to 3,000 feet.

The regulations specify the information that Public Protection Plans must include.

226.70(d)

Lessees must maintain a record of all tests of H

2

S monitoring systems and make the records available to the Superintendent upon request

None.

226.72

Lessees must submit a request to temporarily abandon a well for more than 30 calendar days. This requirement is the same as the requirement in existing § 226.28

None.

226.73(d)

Lessees must submit an application for a permit to plug a well. This requirement is the same the requirement in existing § 226.28(a), (c), but the burden hours are reduced because Osage Form 139 is now a fillable form that can be completed and submitted electronically

Osage Form 139—Application for a Permit to Drill, Workover, or Plug Wells.

226.73(f)

Lessees must notify the Superintendent of planned plugging operations five days prior to the commencement thereof. Notice may be provided by phone or email. This requirement is the same as the requirement in existing § 226.16(c), except that the new provision specifies that the timeframe for providing notice is five days as opposed to “a reasonable time in advance.”

None.

226.73(h)

Lessees must submit any agreement with a surface owner whereby the parties agree that lessee will condition a well that is being plugged for the surface owner's use as a water supply well. This requirement is the same as the requirement in existing § 226.29(d)

None.

226.74(a)

Lessees must make all books and records relating to lease operations available to the Superintendent upon request. This requirement is the same as the requirement in existing § 226.30

None.

226.74(c) through (f)

Lessees must submit a report upon completion of all approved drilling, workover, and plugging operations, together with copies of the results for all samples, tests, and surveys conducted on the well; copies of the electrical, mechanical, and radioactive logs or other surveys of the wellbore; core analysis; and for plugging operations, cementing tickets. This requirement is the same as the requirement in existing § 226.32(a), (b) and (c).

Lessees must submit a report upon completion of hydraulic fracturing operations together with a report of the fracking fluids used. The regulations specify the information that such reports of fracking fluids must include. Lessees or owners of the fracking fluid information may withhold proprietary information that is exempt from public disclosure by submitting a signed withholding statement.

Osage Form 208—Well Completion or Recompletion Report.

Osage Form 209—Report of Workover or Plugging Operations.

Osage Form 210—Withholding of Proprietary Hydraulic Fracturing Information.

226.74(h)

Lessees must maintain well records and reports for six years from the date they were generated unless the Superintendent requires a longer retention period due to an audit or investigation. This requirement is the same as the requirement in existing § 226.32(c), except that the new provision specifies the timeframe for retention

None.

226.76

Lessees must submit the results of tests and surveys performed to establish the effectiveness of measures taken to protect fresh water and mineral bearing formations upon request. This requirement is the same as the requirement in existing § 226.35

None.

226.77(c)

Lessees must submit a request to construct, utilize, enlarge, or relocate a pit. This requirement is the same as the requirement in existing § 226.22(d)

None.

226.77(d)

Lessees must file a copy of any agreement whereby the lessee and surface owner reach an alternative agreement regarding the emptying and leveling of pits. This requirement is the same as the requirement in existing § 226.22(b)

None.

226.77(f)

Lessees must submit a request for the land-application of waste

None.

226.79(a)

A lessee or individual wishing to conduct oil and gas geophysical exploration activities within the Osage Mineral Estate must submit an Application for an Oil and Gas Geophysical Exploration Permit. This requirement is the same as the requirement in existing § 226.16(a), except that the Proposed Rule provides a form for such applications

Osage Form 339—Application for Oil and Gas Geophysical Exploration Permit.

226.80

A lessee or permittee must notify the Superintendent of planned oil and gas geophysical operations five days prior to the commencement thereof. Notice may be provided by phone or email

None.

226.81

A lessee or permittee must submit a Completion Report for Oil and Gas Geophysical Exploration Operations providing a subsequent report of the exploration operations performed

Osage Form 408—Completion Report for Oil and Gas Geophysical Exploration Operations.

226.82(d)

A person claiming an interest in leased lands for the purpose of the settlement of surface damages must notify the Superintendent of that interest. This requirement is the same as the requirement in existing § 226.20(d)

None.

226.83(f)

A lessee or permittee must file a report of each settlement agreement whereby the lessee or permittee and an Indian landowner agree to the amount of surface damages to be paid. This requirement is the same as the requirement in existing § 226.21(g)

None.

226.84(e)

Lessees must report the emergency pumping of oil into a pit. Emergency reports must be submitted by phone

None.

226.86(a) through (e)

Lessees must submit a site facility diagram for all permanent facilities. The regulations specify the information that site facility diagrams must include and the timeframe for submitting site facility diagrams, which varies depending on the date the relevant facilities became operational. Lessees have an ongoing obligation to update and amend site facility diagrams if facilities are modified to ensure that the diagrams accurately represent facilities. Sample site facility diagrams are available at

https://www.bia.gov/regional-offices/eastern-oklahoma/osage-agency

None.

226.88(a) through (c)

Lessees, purchasers, transporters, and other persons involved in producing, transporting, purchasing, selling, or measuring oil and gas must retain all records for a minimum of six years from the date upon which the relevant transaction was recorded unless the Superintendent or ONRR requires retention for a longer period. Such records must be made available to the Superintendent or ONRR upon request. The regulations specify the information that production records must include

None.

226.92(b)

A lessee may request the use of alternative protective measures to prevent drainage

None.

226.97(a) and (b)

Persons engaged in transporting oil by motor vehicle or pipeline must maintain documentation showing the amount, origin, and intended first purchaser of the oil

None.

226.98

Lessees, purchasers, or transporters who drain water from a production storage tank must document such draining operations. The regulations specify the information that documentation of water draining operations must include

None.

226.99(a)

Lessees must document the removal of oil from storage, temporary use of the oil for operations, and return of the oil to storage during hot-oil, clean-up, or completion operations. The regulations specify the information that documentation for temporary removal of oil from storage must include

None.

226.100

Lessees must maintain a record of the seals used on valves and meter components. The regulations specify the information that seal records must include

None.

226.101(a)

Lessees must submit a request for off-lease measurement of production. The regulations specify the information that requests for off-lease measurement of production must include

None.

226.102(a) and (c)

Lessees must report spills, theft, mishandling of production, blowouts, fires, and accidents that occur on the lease by phone or email immediately upon discovery, but not later than one calendar day following discovery. Lessees must also submit a written report of the incident together with a proposed contingency or remediation plan. The initial report of spills, theft, mishandling of production, blowouts, fires, and accidents is provided by phone. This requirement is the same as the requirement in existing § 226.41

Osage Form H—Spill and Remediation Report.

226.107(f)

Lessees measuring oil by tank gauging must submit tank tables within 45 days after calibrating a tank or recalculation of the tables. This requirement is the same as the requirement in existing § 226.38, except that the new provision specifies the timeframe for submitting tank tables

None.

226.108(a)

Lessee must submit a request to use automatic tank gauging for oil measurement. The regulations specify the information that requests to use automatic tank gauging must include. This requirement is the same as the requirement in existing § 226.38

None.

226.108(b)(5)(ii)(B)

Lessees must submit a detailed log of field verifications of automatic tank gauges upon request. This requirement is the same as the requirement in existing § 226.38

None.

226.109(e)

Lessees must provide notice of any LACT system failures or equipment malfunctions that may have resulted in measurement error within 15 calendar days of discovering such failure or malfunction

None.

226.112(c), (e), (f), and (g)

Lessees must submit Coriolis meter specifications upon request. Lessees must maintain the following information on-site at the FMP:

None.

• Make, model, and size of each sensor;

• Make, model, range, and calibrated span of the pressure and temperature transducers used to determine gross standard volume; and

• A log of all meter factors, zero verifications, and zero adjustments.

Lessees must retain QTRs, configuration logs, event logs, and alarm logs for six years from the date they were generated or such longer period as the Superintendent may require.

226.113(b)

Lessees must have a certificate of calibration for the meter prover (

e.g.,

a device that verifies the accuracy of the meter) on-site and available for review

None.

226.113(j)

Lessees must submit a report of meter proving and volume adjustments within 14 days after any LACT system or CMS malfunction, including excessive meter-factor deviation

None.

226.114(d)

Lessees must submit run tickets on or before the last calendar day of the month following the production month. The regulations specify the information that run tickets for tank gauging, LACT, and CMS must include. This requirement is the same as the requirement in existing § 226.16(b), except that the new provision specifies the information run tickets must contain. The information required is consistent with what is currently submitted and prevailing industry standards

None.

226.115

Lessees must submit a request to use any method of oil measurement other than tank gauging, LACT system, or CMS

None.

226.116(c)

Lessees must submit a request to sell or dispose of slop oil and, following the approved sale or disposal of slop oil, must submit a report identifying the volume of slop oil sold or disposed of, the method used to computer that volume, and the gross revenue from the sale. This provision codifies lessees' existing practices for the sale or disposal of slop oil. Accordingly, it does not impose a new burden on lessees with respect to such sales

None.

226.121(e)

Lessees must document orifice plate inspections and include that documentation as part of the verification report submitted in accordance with §§ 226.123 (for mechanical recorders) or 226.126 (for EGM systems). The regulations specify the information that documentation of orifice plate inspections must include

None.

226.121(i)

Lessees must document meter tube inspections and must make such documentation available upon request. The regulations specify the information that documentation of meter tube inspections must include

None.

226.121(j)

Lessees must notify the Superintendent at least 72 hours in advance of performing basic or detailed meter tube inspections under § 226.121(d), (g), and (h) or submit a monthly or quarterly schedule or inspections. Notice may be provided by phone or email. This provision codifies lessees' existing practice of providing notice of meter tube inspections but specifies that 72 hours' advance notice be provided. The provision introduces the option for lessees to submit inspection schedules to provide additional flexibility for notice requirements

None.

226.122(g)

Lessees must maintain certain data at FMPs for mechanical recorders. The regulations specify the information that mechanical recorder data maintained at FMPs must include

None.

226.123(d)

Lessees must retain documentation of mechanical recorder verifications and make such documentation available to the Superintendent upon request. The regulations specify the information that documentation of mechanical recorder verifications must include

None.

226.123(e)

Lessees must notify the Superintendent at least 72 hours in advance of performing mechanical recorder verifications following installation or repair or performing routine verifications. Notice may be provided by phone or email, or lessees may submit a monthly or quarterly schedule of verifications

None.

226.123(g)

Purchasers or purchasers' representatives must retain documentation of test equipment certifications on-site. The regulations specify the information that documentation of certification of test equipment include. This collection does not impose a burden on respondents pursuant to 5 CFR 1320.3(h))

None.

226.124(a)

Lessees must retain an unedited integration statement and make such statement available to the Superintendent upon request. The regulations specify the information that unedited integration statements must include. Lessees already obtain integration statements containing the above information consistent with industry standards. This provision codifies lessees' existing practices. The requirement to retain such statements is the same as the requirement in existing § 226.30

None.

226.125(e)

Lessees must maintain certain data at FMPs for EGM systems. The regulations specify the information that data for EGM systems must include

None.

226.126(e)

Lessees must retain documentation of each verification of EGM systems and make such documentation available to the Superintendent upon request. The regulations specify the information that documentation of EGM system verifications must include

None.

226.126(f)

Lessees must notify the Superintendent at least 72 hours before conducting routine EGM system verifications and verifications following installation or repairs. Notice may be provided by phone or email, or lessees may submit a monthly or quarterly verification schedule. This provision codifies lessees' existing practice of providing notice EGM verifications but specifies that 72 hours' advance notice be provided

None.

226.126(h)

Purchasers or purchasers' representatives must maintain documentation of test equipment certifications on-site. The regulations specify the information that documentation of test equipment certifications must include. This collection does not impose a burden on respondents pursuant to 5 CFR 1320.3(h))

None.

226.128(a)

Lessees must retain QTRs for EGM systems and make them available to the Superintendent upon request. The regulations specify the information that QTRs for EGM systems must include

None.

226.128(b)

Lessees must retain the original, unaltered, unprocessed, and unedited configuration log for the EGM system and make it available upon request. The regulations specify the information that configuration logs must include

None.

226.128(c)

Lessees must retain the original, unaltered, unprocessed, and unedited event log for the EGM system and make it available upon request. The regulations require the configuration log to contain the information identified in API 21.1, subsection 5.5 and have sufficient capacity to be retrieved and stored at intervals that will maintain a continuous record of events for either the required six-year retention period or the life of the FMP, whichever is shorter

None.

226.128(d)

Lessees must retain an alarm log and make it available upon request. The regulations require alarm logs to comply with the requirements set forth in API 21.1, Subsection 5.6

None.

226.131(b)

Lessees must notify the Superintendent at least 72 hours before obtaining a spot sample. Notice may be provided by phone or email, or lessees may submit a monthly or quarterly sampling schedule. This provision codifies lessees' existing practice of providing notice of spot sampling but specifies that 72 hours' advance notice be provided. The provision introduces the option for lessees to submit spot sample schedules to provide additional flexibility for notice requirements

None.

226.131(c)

Lessees must maintain documentation of the cleaning of sample cylinders and make such documentation available upon request

None.

226.132(a)(2)

Lessees must maintain documentation demonstrating that the cylinder was evacuated and pre-charged before sampling for spot sampling using the Helium “pop” method and make such documentation available upon request

None.

226.132(a)(3)

Lessees must maintain documentation of the seal material and type of lubricant used for the floating piston cylinder method of spot sampling and make such documentation upon request

None.

226.136(e)

Lessees must retain documentation of the gas chromatograph verifications and make the documentation available upon request. The regulations specify the information that documentation of gas chromatograph verifications must include

None.

226.138(a), (e)

Lessees must submit all gas analysis reports within 14 calendar days after the due date for the sample as specified in § 226.133. The regulations specify the information that gas analysis reports must include

None.

226.141(c)(2)

Lessees must document all edits made to reported heating value or volume data before the report is submitted to ONRR, including verifiable justifications for the edits made, and such documentation must be made available upon request

None.

226.142(d)

Lessees must submit a request to stop furnishing gas to Tribally owned buildings or enterprises or members of the Osage Nation residing in Osage County. This requirement is the same as the requirement in existing § 226.27(b)(3)

None.

226.146(b)

Lessees must submit a request for certain royalty-free uses of production on the lease or unit. The regulations require the Superintendent's approval of:

• Use of oil or gas the lessee removes from the pipeline at a location downstream of the FMP;

None.

• Use of gas that has been removed from the lease or unit for treatment or processing because the particular physical characteristics of the gas require it to be treated or processed prior to use, where the gas is returned to, and used on, the same lease or unit from which it is produced; and

• Any other uses of produced oil and gas for operations and production purposes that are not set forth in § 226.145.

The regulations specify the information that requests for royalty-free use of production on the lease or unit must include.

226.148(c)

Lessees must submit a request for certain royalty-free uses of production off the lease or unit. The regulations require the Superintendent's approval of royalty-free treatment of oil or gas used in operations conducted off the lease or unit if the:

None.

• Use is among those listed in §§ 226.145(a) or 226.146(a);

• Equipment or facility in which the operation is conducted is located off the lease or unit for engineering, economic, resource protection, or physical accessibility reasons; and

• Operations are conducted upstream of the FMP.

The regulations specify the information that requests for royalty use of production off the lease or unit must include.

226.149(d)

Lessees must notify the Superintendent in writing if oil or gas is removed downstream of the FMP for royalty-free use pursuant to §§ 226.145 through 226.148 and obtain an approved FMP to measure the production removed for use

None.

226.152(a)

Lessees must submit a request to vent or flare gas. The regulations require the Superintendent's approval to vent or flare gas to ensure that the natural gas disposed of through venting or flaring is properly measured and, where applicable, proper royalties paid. This provision codifies the Superintendent's existing notice to lessees requiring prior approval for all venting and flaring. Accordingly, this provision does not impose a new burden on lessees

None.

226.158

Lessees must submit a self-certification following the correction of any lease violations for which a notice of non-compliance is received. This provision codifies the Superintendent's existing requirement that self-certification forms be submitted upon completion of the correction of lease violations. Accordingly, this provision does not impose a new burden on lessees

Osage Form I—Self-Certification for Correction of Lease Violations.

Title of Collection:

Mining of the Osage Mineral Estate for Oil and Gas.

OMB Control Number:

1076-0180.

Abstract:

Under the 1906 Act, the BIA is required to administer oil and gas leasing and development of the Osage Mineral Estate. The BIA needs to perform the IC activities set forth in the regulations at 25 CFR part 226 to perform its responsibilities under the statute.

Form Number:

Osage Form A (Lease Contact of Record); Osage Form B (Evidence of Authority to Execute Papers); Osage Form C (Oil and Gas Mining Lease); Osage Form D (Lease Amendment); Osage Form E (Assignment of Record Title Interest); Osage Form F (Oil and Gas Lease Bond); Osage Form G (Oil and Gas Geophysical Exploration Bond); Osage Form H (Spill

and Remediation Report); Osage Form I (Self-Certification for Correction of Lease Violations); Osage Form 139 (Application for Permit to Drill or Workover Wells); Osage Form 208 (Well Completion or Reentry Report); Osage Form 209 (Report of Workover or Plugging Operations); Osage Form 210 (Withholding of Proprietary Hydraulic Fracturing Information); Osage Form 339 (Application for Permit to Conduct Oil and Gas Geophysical Exploration Operations); Osage Form 408 (Oil and Gas Geophysical Exploration Completion Report).

Type of Review:

Revision of a currently approved collection.

Respondents/Affected Public:

Individual Indians, businesses, and Tribal authorities.

Total Estimated Number of Annual Respondents:

4,974.

Total Estimated Number of Annual Responses:

59,196.

Estimated Completion Time per Response:

Varies from six minutes to 40 hours.

Total Estimated Number of Annual Burden Hours:

22,564.

Respondent's Obligation:

Required to obtain a benefit.

Frequency of Collection:

Varies from monthly to yearly.

Total Estimated Annual Non

-

Hour Burden Cost:

$0.

2. OMB Control Number 1012-0004 (ONRR)

The OMB has reviewed and approved information collections for ONRR's royalty and production reporting operations throughout the rest of Indian country, which are assigned OMB Control No. 1012-0004. ONRR is proposing to renew information collection 1012-0004 with revisions to provide for such collections within the Osage Mineral Estate. The following ONRR royalty and production reporting and recordkeeping requirements in the proposed rule require OMB's approval:

Section(s)

Proposed revision(s) to OMB 1012-0004

OMB 1012-0004 Form(s)

226.43(c) and (d)

Lessees must make royalty payments to ONRR by EFT (preferred) or the other forms of payment identified in § 226.8. Non-EFT royalty payments submitted via U.S. Postal Service must be addressed to: Office of Natural Resources Revenue, P.O. Box 25627, Denver, CO 80225-0627. Royalty reports submitted manually via courier or overnight delivery service must be addressed to: Office of Natural Resources Revenue, Denver Federal Center, Building 85, Entrance N-1, Room 332, 6th Avenue and Kipling Street, Denver, CO 80225

None.

226.45

Lessees must submit certified monthly royalty reports to ONRR by 4 p.m. mountain time on or before the last calendar day of the month that follows the month during which the oil and gas is produced and sold. Royalty reports must be submitted electronically via ONRR's eCommerce Reporting website, https://onrrreporting.onrr.gov, unless the lessee meets the qualifications for manual reporting. Royalty reports submitted manually via U.S. Postal Service must be addressed to: Office of Natural Resources Revenue, P.O. Box 25627, Denver, CO 80225-0627. Royalty reports submitted manually via courier or overnight delivery service must be addressed to: Office of Natural Resources Revenue, Denver Federal Center, Building 85, Entrance N-1, Room 332, 6th Avenue and Kipling Street, Denver, CO 80225

ONRR 2014—Report of Sales and Royalty Remittance.

226.46

Lessees must make, retain, and preserve records demonstrating that rental, royalty, and other payments relating to oil and gas leases comply with the terms and conditions of the lease, the regulations in 25 CFR part 226, and applicable orders and notices. Lessees must preserve records for a minimum of six years from the date upon which the relevant transaction was recorded unless the Superintendent or ONRR provides notice that records must be maintained for a longer period due to investigation or audit. Lessees must make records available to the Superintendent ONRR for inspection upon request. Covered under burden for §§ 226.32(c) and (d) and 226.45

None.

226.85

Lessees must submit certified monthly productions reports to ONRR by 4 p.m. mountain time on or before the 15th day of the second month following the production month. Production reports must be submitted electronically via ONRR's eCommerce Reporting website, https://onrrreporting.onrr.gov, unless the lessee meets the qualifications for manual reporting. Production reports submitted manually via U.S. Postal Service must be addressed to: Office of Natural Resources Revenue, P.O. Box 25627, Denver, CO, 80225-0627. Production reports submitted manually via courier or overnight delivery service must be addressed to: Office of Natural Resources Revenue, Denver Federal Center, Building 85, Entrance N-1, Room 332, 6th Avenue and Kipling Street, Denver, CO 80225

ONRR 4054—Oil and Gas Operations Report (OGOR).

226.88

Lessees, purchasers, transporters, and other persons involved in producing, transporting, purchasing, selling, or measuring oil and gas through the point of royalty measurement or point of first sale, whichever is later, must retain all records, including source records, relevant to determining the quality, quantity, disposition, and verification of production attributable to the subject lease. The regulations specify the information that production records must include. Production records must be preserved for a minimum of six years from the date upon which the relevant transaction was recorded unless the Superintendent or ONRR provides notice that records must be maintained for a longer period due to investigation or audit. Lessees must make records available to the Superintendent ONRR for inspection upon request. Covered under burden for § 226.85

None.

Title of Collection:

Royalty and Production Reporting.

OMB Control Number:

1012-0004.

Revisions:

Under the 1906 Act, the BIA is required to administer oil and gas

leasing and development of the Osage Mineral Estate. The proposed rule would allow BIA to transfer the royalty and production reporting and compliance functions for the Osage Mineral Estate to ONRR. ONRR would perform the specified IC activities in 25 CFR part 226 to carry out the BIA's responsibilities and ensure that lessees pay proper royalties and revenues on oil and gas produced from the Osage Mineral Estate. The requirement to timely and accurately report royalties and production is mandatory.

Form Number:

ONRR-2014, ONRR-4054.

Type of Review:

Revision of a currently approved collection.

Respondents/Affected Public:

Businesses.

Total Estimated Number of Annual Respondents:

3,490 oil, gas, and geothermal reporters.

Total Estimated Number of Annual Responses:

12,827,063 lines of data.

Estimated Completion Time per Response:

Varies between 1 and 7 minutes per line, depending on the activity. The average completion time is 1.72 minutes per line. The average completion time is calculated by first multiplying the estimated annual burden hours (369,379) by 60 to obtain the total annual burden minutes. Then the total annual burden minutes (22,162,740) is divided by the estimated annual number of lines submitted (12,827,063).

Total Estimated Number of Annual Burden Hours:

369,379.

Respondent's Obligation:

Mandatory.

Frequency of Collection:

Monthly.

Total Estimated Annual Non

-

Hour Burden Cost:

ONRR identified no “non-hour cost” burden associated with this information collection.

3. OMB Control Number 1012-0006 (ONRR)

The OMB has reviewed and approved information collections for ONRR's suspensions pending appeal and bonding throughout the rest of Indian country, which are assigned OMB Control No. 1012-0006. ONRR is proposing to renew information collection 1012-0006 with revisions to provide for such collections within the Osage Mineral Estate. The following ONRR suspensions pending appeal and bonding requirements in the proposed rule require OMB's approval:

Section(s)

Proposed revision(s) to OMB 1012-0006

OMB 1012-0006 Form(s)

226.179(b)(2)

A party who appeals an order regarding the payment and reporting of royalties, or other payments due, may suspend compliance with such order by submitting an ONRR-specified surety instrument within 60 days after receiving the Order or Notice of Order

ONRR 4435—Administrative Appeal Bond.

ONRR 4436—Letter of Credit.

ONRR 4437—Assignment of Certificate of Deposit.

226.180(a)

Any other person, including a designee, payor, or affiliate, may post a bond or other surety instrument on behalf of an appellant. If such person is assuming an appellant's responsibility, they must notify ONRR in writing of such assumption. Covered under burden for § 226.179(b)(2)

None.

226.182(b)(2)

ONRR will suspend an obligation to comply with an order if the amount under appeal is $1,000 or more if the appellant submits an ONRR-specified surety instrument within the required timeframe. Covered under burden for § 226.179(b)(2)

None.

226.185(c)

An appellant whose appeal is not decided within one year from the filing date must increase the surety amount to cover additional estimated interest for another one-year period and continue such increases annually. Covered under burden for § 226.179(b)(2)

None.

Title of Collection:

Suspensions Pending Appeal and Bonding.

OMB Control Number:

1012-0006.

Revision:

Under the 1906 Act, the BIA is required to administer oil and gas leasing and development of the Osage Mineral Estate. The proposed rule would allow BIA to transfer the royalty and production reporting and compliance functions for the Osage Mineral Estate to ONRR. ONRR would perform the specified IC activities in 25 CFR part 226 to carry out enforcement and compliance actions for the Osage Mineral Estate.

Form Number:

ONRR-4435, ONRR-4436, and ONRR-4437.

Type of Review:

Revision of a currently approved collection.

Respondents/Affected Public:

Businesses.

Total Estimated Number of Annual Respondents:

107.

Total Estimated Number of Annual Responses:

107.

Estimated Completion Time per Response:

The time per response is 120 mins. The average completion time is calculated by first multiplying the estimated annual burden hours (214 burden hours) by 60 to obtain the total annual burden minutes. Then the total annual burden minutes (12,840) is divided by the estimated annual responses (107).

Total Estimated Number of Annual Burden Hours:

214.

Respondent's Obligation:

Mandatory.

Frequency of Collection:

Annually and on occasion.

Total Estimated Annual Non-Hour Burden Cost:

There are no additional recordkeeping costs associated with this information collection. However, ONRR estimates 5 appellants per year will pay a $50 fee to obtain credit data from a business information or credit reporting service, which is a total non-hour cost burden of $250 per year (5 appellants per year × $50 = $250).

J. National Environmental Policy Act

This proposed rule does not constitute a major Federal action significantly affecting the quality of the human environment under the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321,

et seq.

Therefore, this proposed rule is categorically excluded from further review under 43 CFR 46.210(i) because these are regulations “whose environmental effects are too broad, speculative, or conjectural to lend themselves to meaningful analysis and will later be subject to the NEPA review process either collectively or case by case.” No extraordinary circumstances exist that require greater NEPA review.

K. Effects on the Energy Supply (Executive Order 13211)

This proposed rule is not a significant energy action under the definition in Executive Order 13211. A statement of Energy Effects is not required.

L. Clarity of This Regulation (Executive Orders 12866, 12988, and 13563)

We are required by Executive Orders 12866, 12988, and 13563 and by the

Presidential Memorandum of June 1, 1988, to write all rules in plain language. This means that each rule must:

(a) Be logically organized;

(b) Use the active voice to address readers directly;

(c) Use clear language rather than jargon;

(d) Be divided into short sections and sentences; and

(e) Use lists and tables wherever possible.

If you feel that we have not met these requirements, send us comments using one of the methods listed in the

ADDRESSES

section. To better help the BIA revise the rule, your comments should identify the numbers of the sections or paragraphs that you find unclear and specify which sections or sentences are too long, the sections where you believe lists or tables would be useful.

List of Subjects in 25 CFR Part 226

Administrative practice and procedure, Environmental protection, Incorporation by reference, Indians-lands, Mineral royalties, Oil and gas exploration, Oil and gas measurement, Penalties, Reporting and recordkeeping requirements.

For the reasons stated in the preamble, the Bureau of Indian Affairs proposes to revise 25 CFR part 226 as follows:

PART 226—MINING OF THE OSAGE MINERAL ESTATE FOR OIL AND GAS

Subpart A—General

Sec.

226.0

Incorporation by reference (IBR).

226.1

Definitions.

226.2

Authorities that govern oil and gas activities within the Osage Mineral Estate.

226.3

Authority and responsibility of the Superintendent of the Osage Agency.

226.4

Authority and responsibility of the Office of Natural Resources Revenue (ONRR).

226.5

Orders and notices.

226.6

Service of official correspondence.

226.7

Forms.

226.8

Acceptable forms of payment.

226.9

Environmental reviews and cultural surveys.

226.10

Information collection.

226.11

Public availability of information.

Subpart B—Acquiring a Lease

Authorized Procedures

226.12

Procedures the Osage Minerals Council may use to enter into a lease.

Competitive Leases

226.13

Advertisement of a lease sale.

226.14

Nominating lands for a lease sale.

226.15

Publication of a Notice of Lease Sale.

226.16

Bidding system.

226.17

Award of leases.

Non-Competitive Leases

226.18

Submitting an offer to lease.

226.19

Acceptance of an offer to lease.

Lease Terms

226.20

Types of leases.

226.21

Primary term of leases.

226.22

Effect of changes in current regulations on existing leases.

226.23

U.S. Government employees may not acquire leases.

Subpart C—Cooperative Agreements and Unitization

226.24

Cooperative agreements.

226.25

Unit development plans.

Subpart D—Transferring a Lease by Assignment

226.26

Assignment of record title interest in a lease.

226.27

Qualifications of the assignee.

226.28

Effective date of transfer.

226.29

Effect of assignment on the assignor's liability under the lease.

226.30

Effect of assignment on the assignee's liability under the lease.

226.31

Overriding royalty agreements.

226.32

Drilling contracts.

Subpart E—Ending a Lease

226.33

Surrender of all or any portion of a lease.

226.34

Termination of a lease by operation of law.

Subpart F—Rental and Royalty

Rental Obligations

226.35

Annual rental requirements.

Royalty Obligations

226.36

Royalty rate for oil.

226.37

Calculating the value of oil for royalty purposes.

226.38

Gravity adjustment for oil.

226.39

Royalty rate for gas.

226.40

Calculating the value of gas for royalty purposes.

226.41

Minimum royalty.

226.42

Royalty-in-kind.

226.43

Royalty payments.

226.44

Royalty payment contracts and division orders.

226.45

Royalty reports.

226.46

Requirements for royalty, rental, and payment records.

226.47

Right of the U.S. Government to purchase oil.

Audits

226.48

Audits and reviews.

Subpart G—Bonds

Lease Bonds

226.49

Grandfathering of existing bonds.

226.50

Bond obligations.

226.51

Individual well bond requirements.

226.52

Countywide and nationwide bond requirements.

226.53

Authorization to increase the required bond amount.

226.54

Bond forfeiture.

226.55

Termination of the period of liability and release of bonds.

Geophysical Exploration Bonds

226.56

Geophysical exploration bond requirements.

226.57

Bond forfeiture.

226.58

Termination of the period of liability and release of bonds.

Subpart H—Operations

General Requirements

226.59

Conduct of operations.

226.60

Inspection of operations.

Commencement of Operations

226.61

No operations may commence prior to approval of a lease or geophysical exploration permit.

226.62

Prior authorization required to commence operations on trust or restricted lands.

226.63

Notice and information to be given to surface owners prior to commencement of operations.

226.64

Payment of commencement money and tank siting fees to the surface owner.

Drilling, Workover, and Well Abandonment Operations

226.65

Use of surface lands and water for operations.

226.66

Drilling operations.

226.67

Well control.

226.68

Use of gas for artificial lifting of oil.

226.69

Workover operations.

226.70

Requirements for operations in Hydrogen Sulfide (H

2

S) areas.

226.71

Surveys, samples, and tests.

226.72

Temporary abandonment.

226.73

Permanent plugging and abandonment operations.

226.74

Well records and reports.

226.75

Well and facility identification.

226.76

Pollution prevention.

226.77

Storage and disposal of fluids.

226.78

Removal of fire hazards.

Geophysical Exploration Operations

226.79

Applying for a geophysical exploration permit.

226.80

Commencement of operations.

226.81

Records and reports.

Settlement of Surface Damages

226.82

Lessee or permittee required to settle surface damages.

226.83

Procedure for settlement of surface damages.

Subpart I—Production and Site Security

General Requirements

226.84

Production obligations.

226.85

Production reporting.

226.86

Site facility diagrams.

226.87

Assignment of facility measurement point (FMP) numbers.

226.88

Requirements for production records.

226.89

Easements for access to wells located off-lease.

Waste Prevention

226.90

Prevention of waste.

226.91

Royalty on lost or wasted production.

Drainage Requirements

226.92

Prevention of drainage.

226.93

Compensatory royalty for drainage.

Site Security

226.94

Storage and sales facilities—seals.

226.95

Oil measurement system components—seals.

226.96

Removing production from tanks for sale and transportation by truck.

226.97

Documentation required for transportation of oil and gas.

226.98

Water draining operations.

226.99

Hot oiling, clean-up, and completion operations.

226.100

Seal records.

226.101

Requirements for off-lease measurement of production.

226.102

Report of spills, theft, mishandling of production, accidents, or fires.

Subpart J—Oil Measurement

226.103

General requirements.

226.104

Timeframes for compliance.

226.105

[Reserved]

226.106

Specific measurement performance requirements.

226.107

Tank gauging—general requirements.

226.108

Tank gauging—procedures.

226.109

LACT system—general requirements.

226.110

LACT system—components and operating requirements.

226.111

Coriolis measurement systems (CMS)—general requirements and components.

226.112

Coriolis meter—operating requirements.

226.113

Meter proving requirements.

226.114

Run tickets.

226.115

Oil measurement by alternate methods.

226.116

Determination of oil volumes by methods other than measurement.

Subpart K—Gas Measurement

226.117

General requirements.

226.118

Timeframes for compliance.

226.119

[Reserved]

226.120

Specific performance requirements.

226.121

Flange-tapped orifice plates (primary devices).

226.122

Mechanical recorder (secondary device).

226.123

Verification and calibration of mechanical recorder.

226.124

Integration statements.

226.125

Electronic gas measurement (secondary and tertiary device).

226.126

Verification and calibration of electronic gas measurement systems.

226.127

Flow rate, volume, and average value calculation.

226.128

Logs and records.

226.129

Gas sampling and analysis.

226.130

Sampling probe and tubing.

226.131

Spot samples—general requirements.

226.132

Spot samples—allowable methods.

226.133

Spot samples—frequency.

226.134

Composite sampling methods.

226.135

On-line gas chromatographs.

226.136

Gas chromatographs.

226.137

Components to analyze.

226.138

Gas analysis report requirements.

226.139

Effective date of a spot or composite gas sample.

226.140

Calculation of heating value and volume.

226.141

Reporting of heating value and volume.

Subpart L—Tribal and Royalty-Free Use of Production

Tribal Use of Gas Production

226.142

Use of gas by the Osage Nation and Tribe members.

226.143

Royalty on gas furnished for Tribal use.

Royalty-Free Use of Lease Production

226.144

Production on which no royalty is due.

226.145

Uses of production on a lease or unit that do not require the Superintendent's prior approval of royalty-free treatment.

226.146

Uses of production on a lease or unit that require the Superintendent's prior approval of royalty-free treatment.

226.147

Uses of production moved off the lease or unit that do not require the Superintendent's prior approval of royalty-free treatment.

226.148

Uses of production moved off the lease or unit that require the Superintendent's prior approval of royalty-free treatment.

226.149

Measurement or estimation of royalty-free volumes of oil or gas.

226.150

Ownership of equipment or facilities.

226.151

Requesting approval of royalty-free treatment for volumes used.

Subpart M—Venting and Flaring

226.152

General requirements.

226.153

Gas-well gas.

226.154

Oil-well gas.

226.155

Limitations on venting gas.

226.156

Authorized venting and flaring of gas.

226.157

Measurement and reporting of volumes of gas vented or flared.

Subpart N—Assessments and Penalties

Lease Management Assessments and Civil Penalties

226.158

Remedies for violations of lease or permit terms and conditions, regulations, orders, and notices.

226.159

Immediate assessments for violations of certain operating regulations.

226.160

Other assessments.

226.161

Civil penalties with a period to correct.

226.162

Civil penalties without a period to correct.

226.163

Penalty amount.

226.164

Shut-in actions.

226.165

Lease or permit cancellation.

226.166

Payment of assessments and civil penalties.

Royalty Management Assessments and Civil Penalties

226.167

Remedies for violations of lease or permit terms and conditions, regulations, orders, and notices.

226.168

Assessments for incorrect or late reports and failure to report.

226.169

Assessments for failure to submit payment amount indicated on a form or bill document or to provide adequate information.

226.170

Civil penalties with a period to correct.

226.171

Civil penalties without a period to correct.

226.172

Penalty amount.

226.173

Payment of civil assessments and civil penalties.

226.174

Collection of unpaid civil penalties.

226.175

Debt collection and administrative offset.

Criminal Penalties

226.176

Penalties for filing fraudulent reports.

Subpart O—Appeals

Appeals of BIA Decisions

226.177

Procedure for filing an administrative appeal of a decision, order, or notice of the Superintendent.

Appeals of ONRR Decisions

226.178

Procedures for filing an administrative appeal of an order from ONRR.

226.179

Suspension of compliance with an ONRR order.

226.180

Requirements for posting a bond or other surety on behalf of appellant.

226.181

Suspension of obligation to comply with an ONRR order due to judicial review in federal court.

226.182

ONRR's collection of bonds and other surety instruments.

226.183

ONRR bond-approving officer's determination of surety amount not subject to appeal.

226.184

Standards for ONRR-specified surety instruments.

226.185

ONRR's determination of bond or surety instrument amount.

Appendix A Appendix A to Part 226—Table of Atmospheric Pressures

Authority:

Sec. 3, Pub. L. 59-321, 34 Stat. 543; Secs. 1-2, Pub. L. 66-360, 41 Stat. 1249; Secs. 1-2, Pub. L. 70-919, 45 Stat. 1478; Sec. 3, Pub. L. 75-711, 52 Stat. 1034; Pub. L. 81-548, 65 Stat. 215; Pub. L. 88-632, 78 Stat. 1008; Secs. 2, 4, Pub. L. 95-496, 92 Stat. 1660.

Subpart A—General

§ 226.0

Incorporation by reference (IBR).

Certain material is incorporated by reference into this part with the approval of the Director of the Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. To enforce any edition other than those specified in this section, the Bureau of Indian Affairs (BIA) must publish a document in the

Federal Register

,

and the material must be available to the public. All approved incorporation by reference (IBR) material is available for inspection at the BIA and at the National Archives and Records Administration (NARA). To inspect the material at BIA, contact: the BIA Osage Agency, 513 Grandview Avenue, Pawhuska, OK 74056; phone 918-287-5700. For information on the availability of this material at NARA,

visit

www.archives.gov/federal-register/cfr/ibr-locations.html

or email

fr.inspection@nara.gov.

The material may be obtained from the following sources:

(a) American Petroleum Institute (API), 200 Massachusetts Avenue NW, Suite 1100, Washington, DC 20005; phone: 202-682-8000; website:

https://www.api.org

.

(1) API Manual of Petroleum Measurement Standards (MPMS), Chapter 2—Tank Calibration, Section 2A—Measurement and Calibration of Upright Cylindrical Tanks by the Manual Tank Strapping Method; First Edition, February 1995; Reaffirmed August 2017 (“API 2.2A”); IBR approved for § 226.107(f).

(2) API MPMS Chapter 2—Tank Calibration, Section 2B—Calibration of Upright Cylindrical Tanks Using the Optical Reference Line Method; First Edition, March 1989; Reaffirmed, April 2019; Addendum 1, October 2019 (“API 2.2B”); IBR approved for § 226.107(f).

(3) API MPMS Chapter 2—Tank Calibration, Section 2C—Calibration of Upright Cylindrical Tanks Using the Optical-Triangulation Method; First Edition, January 2002; Reaffirmed April 2019 (“API 2.2C”); IBR approved for § 226.107(f).

(4) API MPMS Chapter 3—Tank Gauging, Section 1A—Standard Practice for the Manual Gauging of Petroleum and Petroleum Products; Third Edition, August 2013; Reaffirmed December 2018 (“API 3.1A”); IBR approved for § 226.108(b).

(5) API MPMS Chapter 3—Tank Gauging, Section 1B—Standard Practice for Level Measurement of Liquid Hydrocarbons in Stationary Tanks by Automatic Tank Gauging; Third Edition, April 2018 (“API 3.1B”); IBR approved for § 226.108(b).

(6) API MPMS Chapter 3—Tank Gauging, Section 6—Measurement of Liquid Hydrocarbons by Hybrid Tank Measurement Systems; First Edition, February 2001; Errata September 2005; Reaffirmed January 2017 (“API 3.6”); IBR approved for § 226.108(b).

(7) API MPMS Chapter 4—Proving Systems, Section 1—Introduction; Third Edition, February 2005; Reaffirmed June 2014 (“API 4.1”); IBR approved for § 226.113(c).

(8) API MPMS Chapter 4—Proving Systems, Section 2—Displacement Provers; Third Edition, September 2003; Reaffirmed March 2011, Addendum February 2015 (“API 4.2”); IBR approved for § 226.113(b) and (c).

(9) API MPMS Chapter 4—Proving Systems, Section 5—Master-Meter Provers; Fourth Edition, June 2016, (“API 4.5”); IBR approved for § 226.113(b).

(10) API MPMS Chapter 4—Proving Systems, Section 6—Pulse Interpolation; Second Edition, May 1999; Errata April 2007; Reaffirmed October 2013 (“API 4.6”); IBR approved for § 226.113(c).

(11) API MPMS Chapter 4—Proving Systems, Section 8—Operation of Proving Systems; Second Edition, September 2013 (“API 4.8”); IBR approved for § 226.113(b).

(12) API MPMS Chapter 4—Proving Systems, Section 9—Methods of Calibration for Displacement and Volumetric Tank Provers, Part 2—Determination of the Volume of Displacement and Tank Provers by the Waterdraw Method of Calibration; First Edition, December 2005; Reaffirmed July 2015 (“API 4.9.2”); IBR approved for § 226.113(b).

(13) API MPMS Chapter 5—Metering, Section 6—Measurement of Liquid Hydrocarbons by Coriolis Meters; First Edition, October 2002; Reaffirmed November 2013 (“API 5.6”); IBR approved for §§ 226.111(d); 226.113(i) and (j).

(14) API MPMS Chapter 6—Metering Assemblies, Section 1—Lease Automatic Custody Transfer (LACT) Systems; Second Edition, May 1991; Reaffirmed May 2012 (“API 6.1”); IBR approved for § 226.110(a) and (b).

(15) API MPMS Chapter 7—Temperature Determination, Section 1—Liquid-in-glass Thermometers, Second Edition, August 2017 (“API 7.1”); IBR approved for § 226.108(b).

(16) API MPMS Chapter 7—Temperature Determination, Section 2—Portable Electronic Thermometers; Third Edition, May 2018 (“API 7.2”); IBR approved for § 226.108(b).

(17) API MPMS Chapter 7—Temperature Determination, Section 4—Dynamic Temperature Measurement, Second Edition, January 2018 (“API 7.4”); IBR approved for § 226.110(b).

(18) API MPMS Chapter 8—Sampling, Section 1—Standard Practice for Manual Sampling of Petroleum and Petroleum Products; Fourth Edition, October 2013 (“API 8.1”); IBR approved for §§ 226.108(b); 226.113(i).

(19) API MPMS Chapter 8—Sampling, Section 2—Standard Practice for Automatic Sampling of Petroleum and Petroleum Products; Fourth Edition, November 2016 (“API 8.2”); IBR approved for §§ 226.110(b); 226.113(i).

(20) API MPMS Chapter 8—Sampling, Section 3—Standard Practice for Mixing and Handling of Liquid Samples of Petroleum and Petroleum Products; First Edition, October 1995; Reaffirmed, March 2015 (“API 8.3”); IBR approved for §§ 226.110(b); 226.113(i).

(21) API MPMS Chapter 9—Density Determination, Section 1—Standard Test Method for Density, Relative Density, or API Gravity of Crude Petroleum and Liquid Petroleum Products by Hydrometer Method; Third Edition, December 2012; Reaffirmed May 2017 (“API 9.1”); IBR approved for §§ 226.108(b); 226.110(b).

(22) API MPMS Chapter 9—Density Determination, Section 2—Standard Test Method for Density or Relative Density of Light Hydrocarbons by Pressure Hydrometer; Third Edition, December 2012; Reaffirmed May 2017 (“API 9.2”); IBR approved for §§ 226.108(b); 226.110(b).

(23) API MPMS Chapter 9—Density Determination, Section 3—Standard Test Method for Density, Relative Density, and API Gravity of Crude Petroleum and Liquid Petroleum Products by Thermohydrometer Method; Third Edition, December 2012; Reaffirmed May 2017 (“API 9.3”); IBR approved for §§ 226.108(b); 226.110(b).

(24) API MPMS Chapter 10—Sediment and Water, Section 4—Determination of Water and/or Sediment in Crude Oil by the Centrifuge Method (Field Procedure); Fourth Edition, October 2013; Errata March 2015 (“API 10.4”); IBR approved for §§ 226.108(b); 226.110(b).

(25) API MPMS Chapter 11—Physical Properties Data, Section 1—Temperature and Pressure Volume Correction Factors for Generalized Crude Oils, Refined Products and Lubricating Oils; May 2004, Addendum 1 September 2007, Addendum 2 May 2019; Reaffirmed August 2012 (“API 11.1”); IBR approved for §§ 226.109(g); 226.110(b); 226.111(e); 226.114(a).

(26) API MPMS Chapter 12—Calculation of Petroleum Quantities, Section 2—Calculation of Petroleum Quantities Using Dynamic Measurement Methods and Volumetric Correction Factors, Part 2—Measurement Tickets; Third Edition, June 2003; Reaffirmed February 2016 (“API 12.2.2”); IBR approved for § 226.110(b).

(27) API MPMS Chapter 12—Calculation of Petroleum Quantities, Section 2—Calculation of Petroleum Quantities Using Dynamic Measurement Methods and Volumetric Correction Factors, Part 3—Proving Report; First Edition, October 1998; Reaffirmed May 2014 (“API 12.2.3”); IBR approved for § 226.113(c) and (j).

(28) API MPMS Chapter 12—Calculation of Petroleum Quantities, Section 2—Calculation of Petroleum Quantities Using Dynamic Measurement Methods and Volumetric Correction Factors, Part 4—Calculation of Base Prover Volumes by the Waterdraw

Method; First Edition, December 1997; Reaffirmed September 2014 (“API 12.2.4”); IBR approved for § 226.113(b).

(29) API MPMS Chapter 13—Statistical Aspects of Measuring and Sampling, Section 3—Measurement Uncertainty; Second Edition, December 2017 (“API 13.3”); IBR approved for § 226.106(a).

(30) API Manual of Petroleum Measurement Standards (MPMS) Chapter 14—Natural Gas Fluids Measurement, Section 1—Collecting and Handling of Natural Gas Samples for Custody Transfer; Seventh Edition, May 2016; Addendum August 2017; Errata August 2017 (“API 14.1”); IBR approved for §§ 226.130(b) and (c); 226.131(c); 226.132(b).

(31) API MPMS Chapter 14—Natural Gas Fluids Measurement, Section 3—Orifice Metering of Natural Gas and Other Related Hydrocarbon Fluids—Concentric, Square-edged Orifice Meters, Part 1—General Equations and Uncertainty Guidelines; Fourth Edition, September 2012; Errata July 2013; Reaffirmed September 2017 (“API 14.3.1”); IBR approved for §§ 226.106(a); 226.120(a).

(32) API MPMS Chapter 14—Natural Gas Fluids Measurement, Section 3—Orifice Metering of Natural Gas and Other Related Hydrocarbon Fluids—Concentric, Square-edged Orifice Meters, Part 2—Specification and Installation Requirements; Fifth Edition, March 2016; Errata 1, March 2017; Errata 2, January 2019 (“API 14.3.2”); IBR approved for § 226.121(b) through (f), (h), (i), and (l).

(33) API MPMS Chapter 14—Natural Gas Fluids Measurement, Section 3—Orifice Metering of Natural Gas and Other Related Hydrocarbon Fluids—Concentric, Square-edged Orifice Meters, Part 3—Natural Gas Applications; Fourth Edition, November 2013 (“API 14.3.3”); IBR approved for §§ 226.124(b); 226.127(a).

(34) API MPMS, Chapter 14—Natural Gas Fluids Measurement, Section 5—Calculation of Gross Heating Value, Relative Density, Compressibility and Theoretical Hydrocarbon Liquid Content for Natural Gas Mixtures for Custody Transfer; Third Edition, January 2009; Reaffirmed November 2020 (“API 14.5”); IBR approved for §§ 226.138(c); 226.140(a).

(35) API MPMS Chapter 18—Custody Transfer, Section 1—Measurement Procedures for Crude Oil Gathered from Small Tanks by Truck; Third Edition, May 2018 (“API 18.1”); IBR approved for § 226.108(b).

(36) API MPMS Chapter 21—Flow Measurement Using Electronic Metering Systems, Section 1—Electronic Gas Measurement; Second Edition, February 2013 (“API 21.1”); IBR approved for §§ 226.125(a) and (g); 226.126(a), (c), and (d); 226.127(c); 226.128(a) through (d).

(37) API MPMS Chapter 21—Flow Measurement Using Electronic Metering Systems, Section 2—Electronic Liquid Volume Measurement Using Positive Displacement and Turbine Meters; First Edition, June 1998; Reaffirmed October 2016 (“API 21.2”); IBR approved for §§ 226.110(b); 226.111(e); 226.112(g).

(38) API Recommended Practice (RP) 12R1, Setting, Maintenance, Inspection, Operation and Repair of Tanks in Production Service; Fifth Edition, August 1997; Reaffirmed April 2008; Addendum 1, December 2017 (“API RP 12R1”); IBR approved for § 226.107(b).

(39) API RP 2556, Correction Gauge Tables for Incrustation; Second Edition, August 1993; Reaffirmed November 2013 (“API RP 2556”); IBR approved for § 226.107(f).

(b) American Gas Association (AGA), 400 North Capitol Street NW, Suite 450, Washington, DC 20001; phone: 202-824-7000; website:

https://www.aga.org.

(1) AGA Report No. 3, Orifice Metering of Natural Gas and Other Related Hydrocarbon Fluids, Second Edition, September 1985 (“AGA Report No. 3”); IBR approved for § 226.124(b).

(2) AGA Transmission Measurement Committee Report No. 8, Compressibility Factors of Natural Gas and Other Related Hydrocarbon Gases; Second Edition, November 1992 (“AGA Report No. 8”); IBR approved for §§ 226.127(a); 226.138(d).

(c) Gas Processors Association (GPA), 6526 E. 60th Street, Tulsa, OK 74145; phone 918-493-3872; website:

https://www.gpamidstream.org.

(1) GPA Midstream Standard 2166-17, Obtaining Natural Gas Samples for Analysis by Gas Chromatography; Reaffirmed 201

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