Flaring or Venting Gas and Burning Liquid Hydrocarbons

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Part 250

RIN 1010-AB96

Flaring or Venting Gas and Burning Liquid Hydrocarbons

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would amend regulations governing the

restrictions on flaring or venting gas to include restrictions on

burning liquid hydrocarbons. The MMS is proposing to amend these

regulations because of the increased interest in burning liquid

hydrocarbons and to clarify the restrictions on burning this natural

resource. The amendment would conserve liquid hydrocarbons and protect

the environment from the possible effects of burning liquid

hydrocarbons.

DATES: Comments on this proposed rule must be postmarked or received on

or before April 18, 1995 to be considered for this rulemaking.

ADDRESSES: Mail or hand-carry comments to the Department of the

Interior; Minerals Management Service; Mail Stop 4700; 381 Elden

Street; Herndon, Virginia 22070-4817; Attention: Chief, Engineering and

Standards Branch.

FOR FURTHER INFORMATION CONTACT:

Sharon Buffington, Engineering and Standards Branch, telephone (703)

787-1600.

SUPPLEMENTARY INFORMATION: Requests for burning liquid hydrocarbons

(crude oil and condensate) have become more frequent in the Outer

Continental Shelf. In the interest of conserving natural resources, and

because of the environmental concerns associated with this burning, MMS

proposes to amend the regulations at 30 CFR 250.175, which currently

include restrictions on flaring and venting of gas, to include

restrictions on burning liquid hydrocarbons.

Under proposed new paragraph (c) of 30 CFR 250.175, lessees will

not be permitted to burn liquid hydrocarbons without the prior approval

of the Regional Supervisor. To obtain approval, the lessee must

demonstrate that the amounts to be burned would be minimal or that the

alternatives, such as transporting the liquids or storing and re-

injecting the liquids, are infeasible or pose a significant risk to

offshore personnel or the environment. The term ``lessee'' also

includes their agents and designees.

Authors

Sharon Buffington and Jo Ann Lauterbach, Engineering and Technology

Division, MMS, prepared this document.

Executive Order (E.O.) 12866

The Department of the Interior (DOI) reviewed this proposed rule

under E.O 12866 and determined that it is not a significant rule.

Regulatory Flexibility Act

The DOI determined that this proposed rule will not have a

significant effect on a substantial number of small entities. In

general, the entities that engage in offshore activities are not

considered small due to the technical and financial resources and

experience necessary to safety conduct such activities.

Paperwork Reduction Act

The proposed information collection requirements contained in

Sec. 250.175 were submitted to the Office of Management and Budget

(OMB) for approval as required by the Paperwork Reduction Act (44

U.S.C. 3501 et seq.).

The DOI will not require the collection on this information until

OMB has approved its collection.

The MMS estimates the public reporting burden for this information

to average 1.5 hours per response, including the time for reviewing

instructions, searching existing data sources, gathering and

maintaining the data needed, and completing and reviewing the

information collection. Send comments regarding this burden estimate or

any other aspects of this collection of information, including

suggestions for reducing the burden, to the Information Collection

Clearance Officer; Minerals Management Service; Mail Stop 2053, 381

Elden Street; Herndon, Virginia 22070-4817, and the Office of

Management and Budget, Paperwork Reduction Project (1010-0041),

Washington, DC 20503.

Takings Implication Assessment

The DOI determined that this proposed rule does not represent a

governmental action capable of interference with constitutionally

protected property rights. Thus, a Takings Implication Assessment does

not need to be prepared pursuant to E.O. 12630, Government Action and

Interference with Constitutionally Protected Property Rights.

E.O. 12778

The DOI certified to OMB that this proposed rule meets the

applicable civil justice reform standards provided in Sections 2(a) and

2(b)(2) of E.O. 12778.

National Environmental Policy Act

The DOI determined that this action does not constitute a major

Federal action significantly affecting the quality of the human

environment; therefore, an Environmental Impact Statement is not

required.

List of Subjects in 30 CFR Part 250

Continental shelf, Environmental impact statements, Environmental

protection, Government contracts, Incorporation by reference,

Investigations, Mineral royalties, Oil and gas development and

production, Oil and gas exploration, Oil and gas reserves, Penalties,

Pipelines, Pubic lands--mineral resources, Public lands--rights-of-way,

Reporting and recordkeeping requirements, Sulphur development and

production, Sulphur exploration, Surety bonds.

Dated: December 23, 1994.

Bob Armstrong,

Assistant Secretary, Land and Minerals Management.

For the reasons set forth above, MMS proposes to amend 30 CFR part

250 to read as follows:

PART 250--OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER

CONTINENTAL SHELF

1. The authority citation for part 250 continues to read as

follows:

Authority: 43 U.S.C. 1334.

2. Section 250.175 is revised to read as follows:

Sec. 250.175 Flaring or venting gas and burning liquid hydrocarbons.

(a) Lessees must not flare or vent oil-well gas or gas-well gas

without the prior approval of the Regional Supervisor except in the

following situations:

(1) When gas vapors are flared or vented in small volumes from

storage vessels or other low-pressure production vessels and cannot be

economically recovered.

(2) During temporary situations such as a compressor or other

equipment [[Page 9313]] failure or the relief of system pressures. The

following conditions apply:

(i) Lessees must not flare or vent oil-well gas for more than 48

continuous hours without the approval of the Regional Supervisor. The

Regional Supervisor may specify a limit of less than 48 hours when

necessary to prevent air quality degradation. Flaring or venting gas

from a facility must not continue for more than 144 cumulative hours

during any calendar month without the approval of the Regional

Supervisor.

(ii) Lessees must not flare or vent gas-well gas beyond the time

required to eliminate a temporary emergency without the approval of the

Regional Supervisor.

(3) During the unloading or cleaning of a well, drill-stem testing,

production-testing, or other well-evaluation testing for periods not to

exceed 48 cumulative hours per testing operation on a single

completion. The Regional Supervisor may specify a shorter period of

time, under prior notice, to prevent air quality degradation.

(b) Lessees may flare or vent oil-well gas for a period not to

exceed 1 year when the Regional Supervisor approves the request for one

of the following reasons:

(1) The lessee initiated an action which, when completed, will

eliminate flaring and venting; or

(2) The lessee submitted an evaluation supported by engineering,

geologic, and economic data indicating that the oil and gas produced

from the well(s) will not economically support the facilities necessary

to save and/or sell the gas, or that sufficient quantities of gas are

not available for marketing.

(c) Lessees must not burn produced liquid hydrocarbons without the

prior approval of the Regional Supervisor. To burn produced liquid

hydrocarbons, the lessee must demonstrate that the amounts to be burned

would be minimal, or that the alternatives are infeasible or pose a

significant risk to offshore personnel or the environment. Alternatives

to burning liquid hydrocarbons include transporting the liquids or

storing and re-injecting them into a producible zone.

(d) Lessees must prepare records detailing gas flaring or venting,

and liquid hydrocarbon burning, for each facility. The records must

include, at a minimum:

(1) Daily volumes of gas flared or vented, and liquid hydrocarbons

burned.

(2) Number of hours of flaring, venting, or burning on a daily

basis.

(3) Reasons for flaring, venting, or burning.

(4) A list of the wells contributing to flaring, venting, or

burning, along with the gas-oil ratio data.

(e) Lessees must keep these records for at least two (2) years.

Lessees must make the records available for inspection by Minerals

Management Service (MMS) representatives at the lessees' field office

that is nearest the Outer Continental Shelf facility, or at other

locations conveniently available to the Regional Supervisor. Upon

request by the Regional Supervisor, lessees must provide a copy of the

records to MMS.

[FR Doc. 95-3986 Filed 2-16-95; 8:45 am]

BILLING CODE 4310-MR-M