Onshore Oil and Gas Operations, Federal and Indian Oil and Gas Leases; Onshore Oil and Gas Order No. 5, Measurement of Gas

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Part 3160

[WO-610-4111-02-24 1A]

RIN 1004-AB22

Onshore Oil and Gas Operations, Federal and Indian Oil and Gas

Leases; Onshore Oil and Gas Order No. 5, Measurement of Gas

AGENCY: Bureau of Land Management, Interior.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule would revise Onshore Oil and Gas Order No.

5 under 43 CFR 3164.1, originally issued February 24, 1989 (54 FR

8100), and made effective March 27, 1989, for new facilities, August

23, 1989, for existing facilities measuring 200 thousand cubic feet

(Mcf) or more per day of gas, and February 26, 1990, for existing

facilities producing less than 200 Mcf per day of gas. This proposed

revision would reorganize the Order to make it more logical in

sequence, remove unnecessary provisions, resolve internal

inconsistencies discovered in the Order, and clarify certain

provisions. These changes are based on several years of experience

implementing the Order, and on suggestions from the public.

DATES: Comments should be submitted by March 7, 1994. Comments received

or postmarked after the above date may not be considered in the

decisionmaking process on the final rule.

ADDRESSES: Comments should be sent to: Director (140), Bureau of Land

Management, Room 5555, Main Interior Building, 1849 C Street, N.W.,

Washington, D.C. 20240. Comments will be available for public review at

the above address during regular business hours (7:45 a.m. to 4:15

p.m.), Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Lonny R. Bagley, (406) 255-2847.

SUPPLEMENTARY INFORMATION: Order No. 5, Measurement of Gas, implements

and supplements requirements found in 43 CFR Part 3160 relating to the

measurement of gas produced under the terms of Federal and Indian

(except Osage) oil and gas leases, as well as gas produced from State

or privately owned lands when Federal and/or Indian leases receive a

share of such production under the terms of an approved agreement. The

Order addresses gas measurement by orifice meter and gas measurement by

other methods acceptable to the authorized officer of the Bureau of

Land Management (BLM). Gas measurement by electronic flow computers,

utilizing an orifice, which calculate volume using the equations

specified by the American Gas Association (AGA) Committee Report No. 3,

may be implemented without prior approval if the minimum standards

outlined in the Order are adhered to.

Several years of experience implementing the Order have revealed

some areas where the organization of the Order can be improved, and

certain provisions that require amendment or clarification or both.

The statement of the purpose of the Order in section I.B. is

proposed to be amended to remove the reference to the assessments and

penalties imposed as a result of noncompliance or the failure to

correct noncompliance, because the Order does not set forth such

assessments and penalties. The purpose statement also is proposed to be

amended to include the purpose that measurements be accurate.

There are no amendments proposed in the definitions included in the

existing Order. However, one new definition (meter uncertainty) would

be added in this proposed rule.

Section III.A. on Required Recordkeeping is proposed to be amended

by adding requirements for the retention of data generated by

electronic flow computers. The revised Order would set forth

specifically the kinds of data required to be retained, without

prescribing an exhaustive list.

Article III. would be reorganized in the proposed Order. Two new

sections would be added to cover minimum standards specific to the

secondary element of the orifice meter and to allow the use of other

types of secondary elements, and to cover other requirements not

specific to orifice meters or the secondary element. Requirements

included in section C. on orifice meters are proposed to be moved, and

in some cases amended, as part of the new section D. on secondary

elements or section E. on other requirements, and several new

requirements have been added as part of section C. and new section D.

These changes are stated in table form below.

------------------------------------------------------------------------

Existing order citations Proposed order citations

------------------------------------------------------------------------

III.C. Gas Measurement by Orifice III.C Primary Element--Orifice

Meter. Meters.

C.1................................ C.1.

C.2................................ C.2.

C.3................................ C.3.

C.4................................ D.10.a.

C.5................................ D.10.b.

C.6................................ C.4.

C.7................................ D.1.

C.8................................ C.5.

C.6. (new).

C.9................................ C.7.

C.10............................... C.8.

C.11............................... C.9.

C.12............................... C.10.

C.13............................... (removed).

D. Secondary Element (new).

D.2. (new).

C.14............................... D.10.c.

C.15............................... D.3.

D.4. (new).

D5. (new).

C.16............................... D.10.d.

C.17............................... D.6.

C.18............................... D.7.

C.19............................... D.8.

D.11.a., b., and c. (new).

E. Other Requirements (new).

C.20............................... E.1.

C.21............................... C.11.

C.22............................... Removed.

C.23............................... E.2.

C.24............................... D.9.

C.25............................... E.3.

C.26............................... E.4.

D. Gas Measurmeent by Other Methods F. Gas Measurement by Other

Methods.

D.1................................ F.1.

D.2................................ F.2.

------------------------------------------------------------------------

The automatic exemption from some requirements for meters measuring

100 Mcf per day or less on a monthly basis would be expanded to include

3 additional standards. These added exemptions would include the

existing requirement that the static element be sized to make the pen

that records the static pressure operate in the outer \2/3\ of the

chart range for the majority of the flowing period, the new requirement

that electronic flow computers be installed, operated, and maintained

to achieve an overall meter uncertainty of plus or minus 3 percent, and

the new requirement for inspecting meter tubes every 5 years. Language

has been added to the Order identifying the applicable standards for

the exemption.

The following requirements proposed to be amended in revised Order

No. 5 are discussed below in the order they appear in this proposed

rule.

III.C.5. (formerly C.8.) is proposed to be amended purely for

clarification. It is the difference between the internal diameters of

the meter tube pipe and the orifice fittings that is to be within AGA

tolerance limits, not the diameters themselves, as the existing Order

seems to provide.

III.C.6. (new) is added to ensure that the meter tubes conform with

AGA Committee Report No. 3. Proper meter tube condition is essential

for accurate measurement. It is intended that all meter tube

inspections would be conducted within the first 5 years after the

effective date of the final rule, and every 5 years thereafter. Meters

measuring 100 Mcf per day or less on a monthly basis would be exempt

from this new requirement.

III.C.8. (formerly C.10.) is proposed to be amended for precision

in stating the requirement. As stated in this rule, orifice plates

would be required to be inspected during calibration of the secondary

element.

III.C.10. (formerly C.12.) is proposed to be amended by removing

the requirement that, when leaks are detected, the meter setting shall

be determined and recorded ``as found,'' and ``as left'' after the

meter is calibrated. This part of the existing requirement is

duplicated by the linearity test in requirement III.D.3. of the

proposed Order.

III.C.13. in the existing Order would be removed in the proposed

Order because it is duplicated by the linearity test in requirement

III.D.3. of the proposed Order.

III.C.11. (formerly C.21.) would be amended by revising the

corrective action to provide for the submittal of a report to BLM. The

form called for in existing requirement C.21. is now submitted to the

Minerals Management Service, not to the BLM. Under the proposed rule,

the operator would be required to submit a report to the BLM showing

what corrections were made.

III.D.1. (formerly C.7.) would be amended by removing the provision

allowing consideration of a variance for sales or allocation meters

measuring between 200 and 500 Mcf per day. This provision duplicates

the general provision for a variance under Article IV. of the Order.

The requirement for the use of an indicating thermometer would be

removed because when using an indicating thermometer the temperature is

not a true average flowing temperature. All meters measuring more than

100 Mcf per day are required to have a temperature recorder. Meters

measuring 100 Mcf per day or less are required to use either a

temperature recorder or an average flowing temperature.

III.D.2. (new) would ensure that the accuracy of the temperature

recording device is maintained.

III.D.3. (formerly C.15.) would be amended for clarification and to

require the recording of readings before and after adjustments are

made. The words ``of the element range'' would be added to make it

clear what the 0 and 100 percent refer to.

III.D.4. (new) would be added to require calibration equipment to

be more accurate than the equipment being calibrated. If the testing

equipment is not more accurate than the equipment being calibrated, the

inherent uncertainty in the metering equipment increases.

III.D.5. (new) would be added to require documentation of the

certification or recertification of calibration equipment to be

available to the authorized officer at the time of calibration.

III.D.6. (formerly C.17.) would be amended to allow meters that

measure 100 Mcf or less per day to be inspected and calibrated

semiannually rather than quarterly. Experience has shown that quarterly

inspections and calibrations of meters measuring such low volumes are

neither cost effective nor necessary to assure an acceptable degree of

accuracy.

III.D.7. (formerly C.18.) would be amended to require operators to

notify the authorized officer of the BLM well in advance of

calibrations to enable the planning of inspections.

III.D.8. (formerly C.19.) would be amended by changing the

reference to ``measuring equipment'' to ``recording device'' to conform

with changes in other requirements. The current Order requires that an

adjustment be made whenever a volume error of 2 percent or greater

occurs. It is proposed to change this standard to ``more than 1

percent'' because volume errors of less than 2 percent on higher volume

wells are very significant. However, in most instances, it will be the

policy of the BLM not to pursue volume errors of less than 200 Mcf per

month, because the cost of doing so would exceed the value of any

additional royalty that might result. The requirement that the meter be

adjusted to zero error would be removed because this is part of the

linearity test requirement in Section III.D.3. For the sake of

simplicity, the abatement period would be stated as 60 days only rather

than also stating the alternative ``prior to completion of

calibration.''

III.D.10. would be added combining several requirements from the

existing Order, as explained below.

III.D.10.a. (formerly C.4.) would be revised to clarify what is

meant by the outer \2/3\ of the chart range. Also, the reference to

sizing the orifice would be removed because doing so is not the only

alternative available to the operator to maintain the differential pen

in the outer \2/3\ of the chart.

III.D.10.b. (formerly C.5.) would be revised to clarify what is

meant by the outer \2/3\ of the chart range.

III.D.10.c. (formerly C.14.) would be amended by revising the

corrective action. It would no longer require recordation of the ``as

found'' and ``as left'' readings, which are meaningless.

III.D.11.a., b., and c. (new) would be added as requirements for

Electronic Flow Computers (EFCs). The requirements for EFCs would be no

more stringent than those for chart recorders. The current static

pressure, differential pressure, and temperature would have to be

displayed on a continuous basis, and the EFC would be required to have

a back-up power source capable of retaining data collected for a

minimum of 35 days.

III.E.3. and 4. (formerly C.25. and 26.) would be amended to make

them read as requirements rather than as descriptions or definitions,

as they appear to do in the existing Order.

Other editorial changes have been proposed to correct errors in the

existing Order and cross-references that must be changed as a result of

the proposed reorganization of the Order.

The principal authors of this proposed rule are Lonny R. Bagley,

Inspection and Enforcement Specialist, Montana State Office, Richard

Estabrook, Petroleum Engineer, Ukiah District Office, California,

Michael Kolling, Petroleum Engineering Technician, Dickinson District

Office, North Dakota, Will Lambert, Petroleum Engineer, Grand Junction

District Office, Colorado, and Larry Bray, Petroleum Engineering

Technician, Roswell Resource Area Office, New Mexico, assisted by the

staff of the Division of Legislation and Regulatory Management, all of

the BLM.

It is hereby determined that this proposed rule does not constitute

a major Federal action significantly affecting the quality of the human

environment, and that no detailed statement pursuant to Section

102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C.

4332(2)(C)) is required. The Bureau of Land Management has determined

that this proposed rule is categorically excluded from further

environmental review pursuant to 516 Departmental Manual (DM), Chapter

2, Appendix 1, Item 1.10, and that the proposal would not significantly

affect the 10 criteria for exceptions listed in 516 DM 2, Appendix 2.

Pursuant to the Council on Environmental Quality regulations (40 CFR

1508.4) and environmental policies and procedures of the Department of

the Interior, ``categorical exclusions'' means a category of actions

that do not individually or cumulatively have a significant effect on

the human environment and that have been found to have no such effect

in procedures adopted by a Federal agency and for which neither an

environmental assessment nor an environmental impact statement is

required.

This rule has been reviewed under Executive Order 12866.

The Department has determined under the Regulatory Flexibility Act

(5 U.S.C. 601 et seq.) that it will not have a significant economic

impact on a substantial number of small entities for the same reasons.

The rule codifies industry standards that apply to all entities in the

industry, regardless of size. The Order would not require a substantial

amount of additional information or monitoring. Some additional

equipment may be required in certain cases, but the total cost of these

changes would not approach the threshold specified in the Executive

Order. Costs to the public should not increase at all as a result of

the Order.

The Department certifies that this proposed rule does not represent

a governmental action capable of interference with constitutionally

protected property rights. There would be no taking of private property

without due process. Failure to abate violations could result in

assessments under the Mineral Leasing Act and/or penalties under the

Federal Oil and Gas Royalty Management Act, and possibly lease

cancellation if the failure continues, but not without due process.

Therefore, as required by Executive Order 12630, the Department of the

Interior has determined that the proposed rule would not cause a taking

of private property.

The Department has certified to the Office of Management and Budget

that this proposed rule meets the applicable standards provided in

section 1(a) and 2(b)(2) of Executive Order 12788.

The information collection requirement(s) contained in Part 3160

that relate to this Order have been approved by the Office of

Management and Budget under 44 U.S.C. 3501 et seq. and assigned

clearance number 1004-0134.

List of Subjects in 43 CFR Part 3160

Government contracts; Mineral royalties; Oil and gas exploration;

Oil and gas production; Public lands--Mineral resources; Indian lands--

Mineral resources; Reporting requirements.

For the reasons stated above, under the authority of the Mineral

Leasing Act of 1920, as amended and supplemented (30 U.S.C. 181 et

seq.), the Department proposes to amend part 3160, Group 3100,

subchapter C, chapter II of title 43 of the Code of Federal Regulations

as set forth below:

PART 3160--ONSHORE OIL AND GAS OPERATIONS

1. The authority citation for part 3160 continues to read as

follows:

Authority: 43 U.S.C. 1733; 30 U.S.C. 181 et seq.; 30 U.S.C. 351-

359; 30 U.S.C. 301-306; 25 U.S.C. 396; 25 U.S.C. 396a-396q, 397,

398, 398a-398e, 399; 43 U.S.C. 1457; see also 40 Op.Atty.Gen. 41; 40

U.S.C. 471 et seq.; 42 U.S.C. 4321 et seq.; 43 U.S.C. 6508; 30

U.S.C. 1701 et seq.; and 25 U.S.C. 2101 et seq.

Subpart 3164--Special Provisions

2. Section 3164.1(b) is amended by revising the fifth entry of the

table to read as follows:

Sec. 3164.1 Onshore Oil and Gas Orders.

* * * * *

(b) * * *

----------------------------------------------------------------------------------------------------------------

Order No. & Subject Effective date Federal Register reference Supersedes

----------------------------------------------------------------------------------------------------------------

* * * * * * *

5. Measurement of Gas.......... [30 days after date of [FR reference for final rule].. None.

publication of final rule].

* * * * * * *

----------------------------------------------------------------------------------------------------------------

Dated: September 27, 1993.

Bob Armstrong,

Assistant Secretary of the Interior.

Appendix--Text of Oil and Gas Order No. 5

Note.--This appendix will not appear in the Code of Federal

Regulations.

Onshore Oil and Gas Order No. 5

Measurement of Gas

I. Introduction

A. Authority

B. Purpose

C. Scope

II. Definitions

III. Requirements

A. Required Recordkeeping

B. General

C. Primary Element--Orifice Meters

D. Secondary Element

E. Other Requirements

F. Gas Measurement by Other Methods or at Other Locations

Acceptable to the Authorized Officer

IV. Variances from Minimum Standards

Attachment

I. Sections from 43 CFR Subparts 3163 and 3165

Onshore Oil and Gas Order No. 5

Measurement of Gas on Federal and Indian Oil and Gas Leases

I. Introduction

A. Authority

This Order is established pursuant to the authority granted to the

Secretary of the Interior under various Federal and Indian mineral

leasing statutes and the Federal Oil and Gas Royalty Management Act of

1982. This authority has been delegated to the Bureau of Land

Management and is implemented by the onshore oil and gas operating

regulations contained in 43 CFR part 3160. Section 3164.1 thereof

specifically authorizes the Director to issue Onshore Oil and Gas

Orders when necessary to implement or supplement the operating

regulations and provides that all such Orders shall be binding on the

lessees and operators of Federal and restricted Indian oil and gas

leases which have been, or may hereafter, be issued.

Specific authority for the provisions contained in this Order is

found at: section 3162.4-1, Well records and reports; section 3162.4-2,

Samples, tests, and surveys; section 3162.7-1, Disposition of

production; section 3162.7-3, Measurement of gas; and subpart 3163,

Noncompliance, Assessments, and Penalties.

B. Purpose

One purpose of this Order is to establish requirements and minimum

standards for the accurate measurement of gas by the methods authorized

in 43 CFR 3162.7-3, i.e., measurement by orifice meter or other methods

acceptable to the authorized officer. Accurate gas measurement ensures

that the Federal Government, the general public, State Governments that

share in the proceeds, and Indian mineral owners receive the royalties

due, as specified in the governing oil and gas leases.

Another purpose of this Order is to establish abatement periods for

corrective action when noncompliance with the minimum standards is

detected.

This Order also serves as notice to any party cited for

noncompliance that it may request from the authorized officer an

extension of the abatement period for any violation, provided that the

request for extension is applied for and granted prior to the

expiration of the abatement period previously allowed.

C. Scope

This Order is applicable to all Federal and Indian (except Osage)

oil and gas leases. In addition, this Order is also applicable to all

wells and facilities on State or privately owned mineral lands

committed to a unit or communitization agreement that affects Federal

or Indian interests, notwithstanding any provision of a unit or

communitization agreement to the contrary.

II. Definitions

A. ``Authorized officer'' means any employee of the Bureau of Land

Management authorized to perform the duties described in 43 CFR Groups

3000 and 3100 (see 43 CFR 3000.0-5).

B. ``Business day'' means any day Monday through Friday excluding

Federal holidays.

C. ``Gas'' means any fluid, either combustible or noncombustible,

that is produced in a natural state from the earth and that maintains a

gaseous or rarefied state at standard temperature and pressure

conditions (see 43 CFR 3000.0-5(a)).

D. ``INC'' means incident of noncompliance, which serves as a

Notice of Violation under CFR subpart 3163.

E. ``Lessee'' means a person or entity holding record title in a

lease issued by the United States (see 43 CFR 3160.0-5).

F. ``Major violation'' means noncompliance that causes or threatens

immediate, substantial, and adverse impacts on public health and

safety, the environment, production accountability, or royalty income

(see 43 CFR 3160.0-5).

G. ``Meter uncertainty'' means the overall inaccuracy of a flow

meter caused by the inherent errors of the flow measurement equipment.

H. ``Minor violation'' means noncompliance that does not rise to

the level of a major violation (see 43 CFR 3160.0-5).

I. ``Operating rights owner'' means a person or entity holding

operating rights in a lease issued by the United States. A lessee also

may be an operating rights owner if the operating rights in a lease or

portion thereof have not been severed from record title.

J. ``Operator'' means any person or entity, including but not

limited to the lessee or operating rights owner, who has stated in

writing to the authorized officer that it is responsible under the

terms and conditions of the lease for the operations conducted on the

leased lands or portion thereof.

K. ``Production unit'' means, for purposes of reporting gas

production, a measurement unit of 1000 standard cubic feet (Mcf).

L. ``Standard cubic foot'' means the volume of gas contained in one

cubic foot at a base pressure of 14.73 pounds per square inch absolute,

and at a base temperature of 60 deg. F or 519.67 deg. Rankine (see 43

CFR 3162.7-3).

III. Requirements

A. Required Recordkeeping

The operator shall keep all test data, meter reports, charts/

recordings, or other similar records for 6 years from the date they

were generated, unless the operator is notified that an audit or

investigation involving such records has been initiated. If the

operator is notified that an audit or investigation involving the

records has been initiated, the operator shall maintain the records

until released in writing from the obligation to maintain them. The

authorized officer may request, and the operator shall produce, such

records any time within this period. For electronic flow computers

(EFCs), this includes but is not limited to:

1. Field edits or volume adjustments.

2. Hourly average static and differential pressures, hourly flow

temperatures, hourly sums of extensions calculated at each data point,

hourly volumes, and the method used to obtain the summation of

extensions, averages, and volumes. For the purposes of this Order,

extensions are the square root of the product of the differential

pressure and static pressure.

3. Subsequent edits or adjustments. If several changes are made,

only the original and the final readings shall be retained.

Along with any records submitted at the request of the authorized

officer, the operator shall provide all additional information used to

compute volumes so that computations may be verified.

B. General

All gas production shall be measured in accordance with an

authorized method of measurement. As set out in 43 CFR 3162.7-3, gas

measurement authorized for gas produced from leases, unit areas, and

communitization agreements subject to the jurisdiction of the Bureau of

Land Management, as such jurisdiction is defined in 43 CFR 3161.1, may

be by orifice meter or other methods acceptable to the authorized

officer. The requirements and minimum standards for gas measurement are

set out below. If these requirements for the primary element and chart

recorder are met, a meter accuracy of plus or minus 3 percent will be

attained. However, given the complex components and sophistication of

electronic flow computers (EFCs), no ``cook book'' method can be

established. Therefore, an uncertainty standard of plus or minus 3

percent would be included for EFCs.

The requirements of this Order are based on the standards and

specifications published by the American Gas Association (AGA) and

officially designated as ANSI/API 2530 and AGA Committee Report No. 3,

second edition, 1985, hereafter referred to as AGA Committee Report No.

3. The AGA-published standards and specifications are considered to be

appropriate for proper gas measurement by both the Department of the

Interior and the oil and gas industry. The requirements set minimum

standards necessary to promote conservation of natural resources and to

ensure proper measurement of gas production for sales and allocation

purposes, so that the Federal Government and Indian mineral owners will

receive the royalties due under governing oil and gas leases.

All future sales and allocation facilities and sales or allocation

facilities in existence on the effective date of this Order, unless

covered by a valid variance, shall meet the minimum standards

prescribed in this Order; provided, however, that all gas produced from

or allocated to Federal and Indian (except Osage) oil and gas leases

wherein the gas is measured through sales or allocation meters handling

100 thousand cubic feet (Mcf) per day or less on a monthly basis are

exempt from the standards in section III. C.1., C.2., D.10.a., D.10.b.,

and D.11.c. of this Order. The authorized officer may, where

appropriate and necessary for proper measurement, work with the

operators in designating consolidated gas sales and/or allocation meter

stations.

Meter installations constructed in accordance with the AGA

Committee Report No. 3 standards in effect at that time shall not

automatically be required to retrofit if the standards are revised. The

Bureau will review any revised standards and, when necessary, will

amend the Order through the rulemaking process.

The intent of these minimum standards is to ensure that when

equipment malfunctions occur that could result in inaccurate

measurement, proper corrective actions are taken, the authorized

officer is notified, and a report is submitted.

Failure to comply with these minimum standards will be considered

noncompliance and an incident of noncompliance (INC) will be issued.

Operators who discover noncompliance with these minimum standards and

take immediate corrective action will not be issued an INC. If the

authorized officer or his representative is present when an operator

discovers a malfunction or uses incorrect procedures as specified in

this Order, an INC will be issued unless immediate corrective action is

taken. Failure of equipment will not be considered a violation.

However, the incidents of noncompliance which may result from equipment

failure are considered violations. A partial list of such incidents

follows:

Failure to install equipment properly.

Failure to repair or correct equipment malfunction properly or in a

timely manner.

Failure to submit report of alternate method of sales.

Failure to submit required reports in a timely manner.

Failure to adhere to the minimum standard procedures specified in

this Order.

The use of improper equipment, when discovered, will be considered

a violation and a formal INC will be issued.

The use of improper procedures will be considered a violation and

when witnessed by the authorized officer or his representative,

immediate corrective action will be required. In the event that proper

procedures are then used as required by this Order, and prior to

completing the operation, calibration, or proving, the violation will

be considered as properly corrected. In this case, although the

violation will be documented in the agency files, no INC will be

issued.

The failure to take timely corrective action as required to meet

any standard in this article will be considered either a major or minor

violation in accordance with the classification set out below for each

standard, unless an applicable variance has been granted or the

standards have been otherwise modified in accordance with Article IV.

A major violation, as defined in this Order, will generally require

an immediate shut-in of the metering device. However, where the non-

recoupable loss is not significant or where damage to the resource is

likely to occur if a shut-in is required, an abatement period of 24

hours may be granted by the authorized officer or his representative.

Where abatement is required ``prior to sales or removal,'' action

is required to be taken so that no gas can be removed beyond the

measurement point until properly measured.

C. Primary Element--Orifice Meters

The following are minimum standards for the measurement of natural

gas using orifice meters.

1. For meters measuring more than 100 Mcf per day on a monthly

basis, the orifice to pipe diameter ratio (d/D), or the beta ratio,

with meters using ``flange taps,'' shall be between 0.15 and 0.70.

Violation: Major.

Corrective Action: Install an orifice of such size that subsequent

measurements will be within the appropriate beta ratio range. If

changing the orifice causes the differential pressure to be recorded in

the lower one-third of the chart, then either the meter tube or the

differential element shall be changed, sizing the straight pipe

sections in a manner that will provide subsequent measurement within

the appropriate beta ratio range.

Abatement Period: Prior to sales or removal.

2. For meters measuring more than 100 Mcf per day on a monthly

basis, the orifice to pipe diameter ratio (d/D), or the beta ratio,

with meters using ``pipe taps,'' shall be between 0.20 and 0.67.

Violation: Major.

Corrective Action: Same as C.1. above.

Abatement Period: Prior to sales or removal.

3. To obtain flow conditions as near optimum as possible and

minimize the effects of turbulence in gas flow, the minimum length of

straight pipe preceding and following an orifice, and the use of

straightening vanes, shall conform to the specifications shown in

Figures 4 through 9 of AGA Committee Report No. 3.

Violation: Major.

Corrective Action: Install proper length of pipe where appropriate

or install straightening vanes in accordance with appropriate AGA

Committee Report No. 3 specifications.

Abatement Period: Prior to sales or removal.

4. There shall be no pipe connections between the orifice and the

nearest pipe fitting other than the pressure taps and/or thermometer

wells as specified in AGA Committee Report No. 3.

Violation: Major.

Corrective Action: Replace entire length of pipe ahead of the

orifice meter with pipe of appropriate length and inside smoothness in

accordance with AGA Committee Report No. 3.

Abatement Period: Prior to sales or removal.

5. The difference between the internal diameters of the meter tube

pipe and the orifice fittings shall be within the tolerance limits set

by AGA.

Violation: Major.

Corrective Action: Install properly sized meter tube.

Abatement Period: Prior to sales or removal.

6. For meters measuring more than 100 Mcf per day on a monthly

basis, meter tubes shall be inspected at least every 5 years to ensure

continuing conformance with the meter tube specifications in AGA

Committee Report No. 3. Record results of inspections and take any

necessary corrective actions to bring the meter tube into conformance

with AGA Committee Report No. 3.

Violation: Minor.

Corrective Action: Inspect meter tube for conformance with AGA

Committee Report No. 3, record results of inspection, and take

necessary corrective actions.

Abatement Period: 60 days.

7. Meter tubes using flange taps or pipe taps shall have the

pressure tap holes located as specified in AGA Committee Report No. 3.

Violation: Major.

Corrective Action: Install pressure tap as specified.

Abatement Period: Prior to sales or removal.

8. Orifice plates shall be removed from the flange or plate holder,

and visually inspected for conformance with AGA standards and

specifications, at least semi-annually, during calibration of the

secondary element.

Violation: Minor.

Corrective Action: Remove and visually inspect orifice plate for

conformance with AGA standards and specifications.

Abatement Period: No later than the next meter calibration.

9. Any plate or orifice that is determined not to be in conformance

with AGA standards shall be replaced with one that is in conformance.

Violation: Major.

Corrective Action: Replace orifice plate.

Abatement Period: Prior to sales or removal.

10. All connections and fittings of the secondary element

(including meter pots and meter manifolds) shall be leak tested prior

to conducting tests of the meter's accuracy.

Violation: Minor.

Corrective Action: Stop meter calibration and conduct leak test.

Abatement Period: Prior to completion of calibration.

11. Volumes of gas delivered shall be determined according to the

flow equations specified in AGA Committee Report No. 3.

Violation: Minor.

Corrective Action: Recalculate all gas volumes not determined in

accordance with flow equations specified in AGA Committee Report No. 3.

Submit a report adjusting the volume of gas measured, and showing or

discussing all calculations made in correcting the volumes.

Abatement Period: 60 days.

D. Secondary Element

The following are minimum standards for the secondary element of

the orifice meter.

1. Continuous temperature recorders to measure the flowing gas

temperature are required on all sales and allocation meters measuring

more than 100 Mcf per day on a monthly basis. Meters measuring 100 Mcf

or less per day on a monthly basis shall determine the flowing

temperature of the gas by one of the following:

a. Continuous temperature recorder, or

b. Average flowing temperature, as determined by a method approved

by the authorized officer.

Violation: Major.

Corrective Action: Install temperature measuring device as

required.

Abatement Period: Prior to sales or removal.

2. The temperature recording device shall be tested for accuracy

utilizing one of the following:

a. ``Test well'' in the meter run; or

b. Water bath.

Record ``as found'' readings, make any necessary adjustments, and

record ``as left'' readings.

Violation: Minor.

Corrective Action: Test temperature recording device as specified,

record ``as found'' readings, make necessary adjustments, and record

``as left'' readings.

Abatement Period: Prior to completion of calibration.

3. Differential and static pen accuracy shall be tested for

linearity at zero, at 100 percent of the element range, and at 1 point

within the normal operating range of the differential and static

recordings. Record ``as found'' readings, make any necessary

adjustments, and record ``as left'' readings.

Violation: Minor.

Corrective Action: Test linearity at the required points, record

``as found'' readings, make necessary adjustments, and record ``as

left'' readings.

Abatement Period: Prior to completion of calibration.

4. All calibrating equipment shall be more accurate than the

required accuracy of the equipment being calibrated, as shown in the

documentation required in paragraph 5. Calibration equipment shall be

recertified at least annually.

Violation: Minor.

Corrective Action: Stop calibration, substitute proper calibrating

equipment, and restart calibration.

Abatement Period: Prior to completion of calibration.

5. Documentation of the certification/recertification of the

calibrating equipment shall be available to the authorized officer at

the time of calibration.

Violation: Minor.

Corrective Action: Provide documentation.

Abatement Period: 20 days.

6. The accuracy of the recording device(s) shall be tested

following initial meter installation and following repairs. Meters

measuring more than 100 Mcf per day on a monthly basis shall be tested

at least quarterly. Meters measuring 100 Mcf per day or less on a

monthly basis shall be tested at least semi-annually.

Violation: Minor.

Corrective Action: Test meter for accuracy.

Abatement Period: a. 24 hours for initial meter installation or

following repairs.

b. 30 days to conduct the quarterly or semi-annual meter test, as

applicable.

7. The authorized officer shall be notified in writing of all meter

calibrations. Calibration schedules covering monthly, quarterly,

semiannual, or annual periods shall be submitted at least 10 days prior

to the date of the first calibration on the schedule.

Violation: Minor.

Corrective Action: Submit the calibration schedule, as required.

Abatement Period: Prior to next calibration.

8. If the inaccuracy in the recording device(s) results in a volume

calculation more than 1 percent in error, the volume measured since the

last calibration shall be corrected. However, if the magnitude of the

volume error is less than 200 Mcf per month, it will not be pursued

unless it occurs on a continuing basis. In that case, the meter shall

be adjusted in accordance with Sections III.D.2. and III.D.3. Also, the

operator shall submit a report adjusting the volumes of gas measured,

and showing or discussing all calculations made in correcting the

volumes. The volumes shall be corrected back to the time the inaccuracy

occurred, if known. If this time is unknown, volumes shall be corrected

for the last half of the period elapsed since the date of last

calibration.

Violation: Minor.

Corrective Action: Submit report with adjusted volumes.

Abatement Period: 60 days.

9. All meter calibration report forms shall include the following

information, if applicable, and shall be submitted to the authorized

officer upon request.

a. Name of producer or seller;

b. Name of purchaser;

c. Federal or Indian lease number, communitization agreement

number, or unit name or number and participating area identification;

d. Station or meter number;

e. Meter data (make, differential, and static and temperature

range, recording period);

f. Type of connections (flange or pipe, upstream or downstream

static connections);

g. Orifice data (plate size and ID of meter tube);

h. Time and date of test;

i. Instrument error(s) found and certification of corrections, and

``as found'' and ``as left'' data for all instruments;

j. Signature and affiliation of tester and witness;

k. Remarks.

Violation: Minor.

Corrective Action: Submit amended meter calibration report(s) to

authorized officer, including all required information.

Abatement Period: 15 days.

10. Chart Recorder: The following are minimum standards that only

apply to chart recorders.

a. For meters measuring more than 100 Mcf per day on a monthly

basis, the pen that records differential pressure shall operate in the

outer \2/3\ of the chart range (the physical distance on the chart

measured from zero) for the majority of the flowing period.

Violation: Minor.

Corrective Action: Size the metering equipment so that the

differential pen will record in the outer \2/3\ of the chart range.

Abatement Period: 20 days.

b. For meters measuring more than 100 Mcf per day on a monthly

basis, the static element shall be sized to make the pen that records

the static pressure operate in the outer \2/3\ of the chart range (the

physical distance on the chart measured from zero) for the majority of

the flowing period.

Violation: Minor.

Corrective Action: Size static element so as to cause static pen to

record in the outer \2/3\ of the chart range.

Abatement Period: 20 days.

c. The meter's differential pen arc, the ability of the

differential pen to duplicate the test chart's time arc over the full

range of the test chart, shall be checked during each testing of the

meter's accuracy and adjustments made if necessary.

Violation: Minor.

Corrective Action: Stop meter calibration, check differential pen

arc, make necessary adjustments, and restart calibration.

Abatement Period: Prior to completion of calibration.

d. During testing of the meter accuracy, the static pen time lag

shall be adjusted to ensure independent movement of the static pen in

relation to the differential pen.

Violation: Minor.

Corrective Action: Make appropriate adjustments.

Abatement Period: Prior to completion of calibration.

11. Electronic Flow Computers: The following are minimum standards

that only apply to electronic flow computers (EFCs).

a. The current static pressure, differential pressure, and

temperature shall be displayed on a continuous basis.

Violation: Minor.

Corrective Action: Display required data.

Abatement Period: 30 days.

b. The EFC shall be equipped with a back-up power source capable of

retaining data collected for a minimum of 35 days.

Violation: Minor.

Corrective Action: Install back-up power source capable of

retaining data collected for a minimum of 35 days.

Abatement Period: 30 days.

c. For meters measuring more than 100 Mcf per day on a monthly

basis, the EFC shall be installed, operated, and maintained to achieve

an overall meter uncertainty of within plus-minuse>3 percent.

Violation: Minor.

Corrective Action: Make any necessary changes to bring the overall

meter uncertainty within plus-minuse>3 percent.

Abatement Period: 20 days.

E. Other Requirements

The following are minimum standards that apply to all sales and

sales allocation meter installations.

1. If, for any reason, the measuring equipment is out of service or

malfunctioning so that the quantity of gas delivered is not known, the

volume delivered during this period shall be estimated using one of the

following methods, in this order of priority:

a. Record data on check metering equipment if used in lieu of main

meter recordings. If check meters are not installed or are found to be

recording inaccurately, then

b. Base corrections on the percentage error found during the

instrument test. If that is not feasible, then

c. Estimate the quantity of gas run, based on deliveries made under

similar conditions when the metering equipment was registering

accurately.

Violation: Minor.

Corrective Action: Estimate volumes delivered during those periods

cited using one or more of the approved methods identified in the order

of priority and, where necessary, submit a report showing corrected

volumes.

Abatement Period: 60 days.

2. The Btu content shall be determined at least annually, unless

otherwise required by the authorized officer, by means of (1) a

recording calorimeter, (2) calculations based on a complete

compositional analysis of the gas and the heating value of each

constituent, in accordance with AGA Committee Report No. 3, or (3) any

other method acceptable to the authorized officer. The authorized

officer shall be apprised of the method used for each determination and

be furnished with all needed analytical data or other documentation

upon request. The Btu content most recently determined and used for

royalty purposes shall be reported.

Violation: Minor.

Corrective Action: Determine Btu content and submit a report.

Abatement Period: 30 days.

3. For purposes of measurement and meter calibration, atmospheric

pressure shall be established through an actual measurement or assumed

to be a constant value based on the elevation at the metering station.

Violation: Minor.

Corrective Action: Recalibrate gas meter and submit a report

indicating corrected volumes using the adjusted absolute zero or

properly calculated pressure extensions.

Abatement Period: 30 days.

4. The method and frequency of determining specific gravity shall

be determined by use of one of the following methods:

a. Continuous recording gravitometer;

b. Complete compositional analysis of a spot or cumulative gas

sample determined at least annually.

Violation: Minor.

Corrective Action: Determine specific gravity of gas by approved

method and submit a report with corrected volume.

Abatement Period: 30 days.

F. Gas Measurement by Other Methods or at Other Locations Acceptable to

the Authorized Officer

Using any method of gas measurement other than by orifice meter at

a location on the lease, unit, unit participating area, or communitized

area, requires prior approval from the authorized officer pursuant to

43 CFR 3162.7-3. Other measurement methods include, but are not limited

to:

Turbine metering systems

Positive displacement meter

Pitot tube

Orifice well tester

Critical flow prover

Gas-oil ratio

The requirements and minimum standards for gas measurement on the

lease, unit, unit participating area, or communitized area by an

alternate method of measurement, or at a location off the lease, unit,

unit participating area, or communitized area by either an authorized

or an alternate method of measurement, are as follows:

1. Measurement on the Lease, Unit, Unit Participating Area, or

Communitized Area

A written application for approval of an alternate gas measurement

method shall be submitted to the authorized officer and written

approval obtained before any such alternate gas measurement method is

installed or operated. Any operator requesting approval of any

alternate gas sales measurement system shall submit performance data,

actual field test results, or any other supporting data or evidence

acceptable to the authorized officer, that will demonstrate that the

proposed alternate gas sales measurement system will meet or exceed the

objectives of the applicable minimum standards or will not adversely

affect royalty income or production accountability.

Violation: Major.

Corrective Action: Submit application and obtain approval.

Abatement Period: Prior to sales or removal.

2. Measurement at a Location Off the Lease, Unit, Unit Participating

Area, or Communitized Area

a. A written application for off-lease measurement shall be

submitted to the authorized officer and written approval obtained

before any such off-lease gas measurement facilities are installed or

operated. The application for approval of off-lease measurement shall

justify the location of the measurement facilities at the desired off-

lease location before approval will be granted, but no additional

approval as to the gas sales measurement method is required, provided

measurement is to be accomplished by orifice meter pursuant to the

requirements and minimum standards of this Order.

Violation: Minor.

Corrective Action: Submit application and obtain approval.

Abatement Period: 20 days.

b. If gas measurement is to be accomplished at a location off the

lease, unit, unit participating area, or communitized area by any

alternate measurement method (any method other than measurement by

orifice meter), then the application, in addition to justifying the

location of the measurement facilities, shall also demonstrate the

acceptability of the alternate measurement method pursuant to Section

III.F.1. of this Order.

Violation: Major.

Corrective Action: Submit application and obtain approval.

Abatement Period: Prior to sales.

IV. Variances From Minimum Standards

An operator may request that the authorized officer approve a

variance from any of the minimum standards prescribed in Article III.

All such requests shall be submitted in writing to the appropriate

authorized officer and shall provide information as to the

circumstances warranting approval of the variance(s) requested and the

proposed alternative means by which the related minimum standard(s)

will be satisfied. The authorized officer, after considering all

relevant factors, shall approve the requested variance(s) if it is

determined that the proposed alternative(s) meets or exceeds the

objectives of the applicable minimum standard(s), or does not adversely

affect royalty income or production accountability.

In addition, approval may be given orally by the authorized officer

before the operator initiates actions which require a variance from

minimum standards. The oral request, if granted, shall be followed by a

written request not later than the fifth business day following oral

approval, and written approval will then be appropriate.

The authorized officer may also issue NTLs that establish modified

standards and requirements for specific geographic areas of operations.

After notice to the operator, the authorized officer may also

require compliance with standards that exceed those contained in this

Order whenever such additional requirements are necessary to achieve

protection of royalty income or production accountability. The

rationale for any such additional requirements shall be documented in

writing to the operator.

[FR Doc. 94-149 Filed 1-5-94; 8:45 am]

BILLING CODE 4310-84-P