Flaring or Venting Gas and Burning Liquid Hydrocarbons

DEPARTMENT OF THE INTERIOR

30 CFR Part 250

RIN 1010-AB96

Flaring or Venting Gas and Burning Liquid Hydrocarbons

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final rule.

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SUMMARY: This rule amends regulations governing restrictions on flaring

or venting gas to include restrictions on burning liquid hydrocarbons.

MMS made this amendment to clarify that burning liquid hydrocarbons is

allowable only under certain circumstances as approved by the Regional

Supervisor.

EFFECTIVE DATE: This final rule is effective on June 19, 1996.

FOR FURTHER INFORMATION CONTACT:

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

787-1600.

SUPPLEMENTARY INFORMATION: On February 17, 1995, MMS published a rule

in the Federal Register (60 FR 9312) that proposed to amend the

requirements at 30 CFR 250.175, flaring and venting of gas, to include

burning liquid hydrocarbons. This rule is necessary because requests to

burn liquid hydrocarbons are increasing, and we determined that we

needed to provide regulatory guidance on burning.

Response to Comments

During the 60-day comment period, MMS received eight comments,

predominately from the oil and gas industry. MMS appreciates the

suggestions and comments that we received. We reviewed all of the

comments, and in some instances, we revised the final language based on

these comments. MMS grouped the comments by the following major issues:

1. In Sec. 250.175(c), MMS proposed that the Regional Supervisor

allow a lessee to burn a ``minimal'' amount of liquid hydrocarbons with

prior approval. Several comments suggested that MMS determine the

absolute value of ``minimal.'' One comment suggested that we create a

table of allowable burn amounts by using distance from shore as the

determining factor. In general, the comments said that the term

``minimal'' is not specific enough.

Response

MMS agrees that, if possible, using an absolute value for the term

``minimal'' would be desirable. However, we feel that it is impractical

to determine an solute value because it depends on many economic,

technical, safety, and environmental factors. Therefore, an amount that

may be prudent to burn in one area may not be acceptable to burn in

another correlative area. Conserving natural resources is a major

consideration in burning liquid hydrocarbons. However, our

determination of the allowable ``minimal'' amount that you can burn

will also depend on technical, safety, and environmental factors.

2. Several comments suggested that storing and transporting or re-

injecting liquid hydrocarbons poses a greater risk than burning them.

Response

MMS agrees that in some cases the alternatives to burning liquid

hydrocarbons may be risky to the environment or personnel. That is the

reason MMS provided the option of showing the Regional Supervisor that

the alternatives are infeasible or pose significant risk. MMS will

evaluate the information that you supply concerning the risks of the

alternatives case by case. Please be assured that the Regional

Supervisor will evaluate your requests to burn hydrocarbons fairly and

promptly by using the information that you supply in your requests.

3. Section 250.175(c)--One comment suggested that MMS rewrite the

first sentence of paragraph (c) because the phrase ``lessees must not

burn liquid hydrocarbons'' may portray a negative bias against burning

liquid hydrocarbons.

Response

MMS did not intend to portray a negative bias against burning

liquid hydrocarbons. Our intent was only to set boundaries on burning

liquid hydrocarbons. However, to avoid any confusion, MMS will restate

the first sentence of paragraph (c) to say that ``Lessees may burn

produced liquid hydrocarbons only if the Regional Supervisor

approves.''

4. Section 250.175(a)(3)--Several comments opposed MMS's changing

the limit on flaring, without prior approval, during well evaluations

and cleaning, to 48 cumulative hours (from 48 continuous hours). The

individuals felt that 48 cumulative hours are not always sufficient

(especially in deep water). Similarly, one comment recommended that MMS

state that the Regional Supervisor has the authority to increase the

flaring limit.

Response

MMS feels that, for environmental and conservation reasons, it

needs to change the term ``continuous'' to ``cumulative'' for flaring

during well evaluations and cleaning operations (without prior

approval). Otherwise, the term ``continuous'' would permit multiple

flarings of up to 48 hours each simply by having a shut-in period

between flarings.

MMS realizes that 48 hours of flaring will not always meet well

testing needs. For these occasions, the Regional Supervisor has the

authority to increase the flaring limit. MMS will continue to evaluate

requests for more than 48 cumulative hours of flaring during well

evaluations or cleaning. However, without prior approval, MMS will only

allow 48 cumulative hours per testing operation on a single completion.

This limit of 48 hours should be adequate to accommodate most

operations.

MMS amended the final rule to clarify that the Regional Supervisor

has the authority to specify a shorter or longer flaring limit. In

addition, the MMS Regions are working on guidelines for extended

testing and flaring for deep water.

5. Section 250.175(a)(2)--One comment recommended that MMS delete

or define ``temporary'' which modified ``situations'' because it is too

vague.

Response

MMS agrees that the term ``temporary'' can be vague, and we deleted

it from the final rule.

6. Section 250.175(c)--One comment recommended that MMS define

``significant risk'' because it is vague.

Response

MMS has changed the phrase to ``significant risk that may harm.''

7. Several comments suggested that MMS mandate the type of burner

that it will permit a lessee to use.

Response

MMS recognizes that many burners exist with widely varying

specifications. However, since technology constantly changes, MMS feels

that it is impractical and too restrictive to mandate an allowable type

of burner. However, the

[[Page 25148]]

Regional Supervisor will take into account the type of burner industry

proposes to use when evaluating requests to burn liquids.

8. Several comments said that lessees can't predict test volumes or

other data that they will need for requests to flare or vent gas and

burn liquids.

Response

We realize that lessees can't precisely predict reservoir data. We

only ask that, as with all other pre-approval requirements, lessees

plan and, to the best of their ability, estimate well test results and

removal alternatives. The Regional Supervisor will work with lessees to

fairly evaluate requests.

Authors. Sharon Buffington and Jo Ann Lauterbach, Engineering

and Technology Division, MMS, prepared this document.

Executive Order (E.O.) 12866

This rule is not a significant rule under E.O. 12866.

Regulatory Flexibility Act

The Department of the Interior (DOI) determined that this rule will

not have a significant effect on a substantial number of small

entities. In general, we do not consider the entities that engage in

offshore activities small due to the technical and financial resources

and experience necessary to safely conduct such activities.

In addition, the DOI determined that this rule is not a major rule

because it will not result in an annual effect on the economy of $100

million or more. Also, this rule will not have significant adverse

effects on competition, employment, investment, productivity, or

innovation. The largest cost to industry is for the cases when the

lessee must transport the liquid hydrocarbons instead of burning them.

Based on the number of well tests, the number of times transportation

would occur, the annual gross cost to industry to transport these

liquid hydrocarbons is $348,000.

Paperwork Reduction Act

The proposed information collection requirement contained in

Sec. 250.175 were approved by the Office of Management and Budget (OMB)

as required by the Paperwork Reduction Act (44 U.S.C. 3501 et seq.).

The OMB control number is 1010-0041. An agency may not conduct or

sponsor, and a person is not required to respond to, a collection of

information unless it displays a currently valid OMB control number.

The MMS estimates the public reporting burden for this information

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

instructions, searching existing data sources, gathering and

maintaining the date needed, and completing and reviewing the

information collection.

Takings Implication Assessment

The DOI that this 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.

Unfunded Mandate Reform Act of 1995

This rule does not contain any unfunded mandates to State, local,

or tribal governments or the private sector.

E.O. 12988

The DOI certified to OMB that this rule meets the applicable civil

justice reform standards provided in Section 3(b)(2) of E.O. 12988.

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, Public lands--mineral resources, Public lands--rights-of-

way, Reporting and recordkeeping requirements, Sulphur development and

production, Sulphur exploration, Surety bonds.

Dated: March 13, 1996.

Bob Armstrong,

Assistant Secretary, Land and Minerals Management.

For the reasons set forth above, MMS is amending 30 CFR part 250 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 may flare or vent oil-well gas or gas-well gas without

receiving prior approval from the Regional Supervisor only 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 an equipment failure or to relieve system pressures. The

lessee must comply with the following conditions:

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

continuous hours unless the Regional Supervisor approves. The Regional

Supervisor may specify a limit of less than 48 hours to prevent air

quality degradation.

(ii) Lessees must not flare or vent gas from a facility for more

than 144 cumulative hours during any calendar month unless the Regional

Supervisor approves.

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

required to eliminate an emergency unless the Regional Supervisor

approves.

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

production testing, or other well-evaluation testing. Flaring or

venting must not exceed 48 cumulative hours per testing operation on a

single completion. The Regional Supervisor may allow less time to

prevent air quality degradation or more time if lessees need additional

time to evaluate reservoir parameters.

(b) Lessees may flare or vent oil-well gas for up to 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 either:

(i) The oil and gas produced from the well(s) will not economically

support the facilities necessary to save and/or sell the gas; or

(ii) There is not enough gas to market.

(c) Lessees may burn produced liquid hydrocarbons only if the

Regional Supervisor approves. To burn produced liquid hydrocarbons, the

lessee must demonstrate that the amounts to burn would be minimal, or

that the alternatives are infeasible or pose a significant risk that

may harm offshore personnel or the environment. Alternatives to burning

liquid hydrocarbons include transporting the liquids or storing and re-

injecting them into a producible zone.

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(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; and

(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 2 years. Lessees

must allow Minerals Management Service representatives to inspect the

records at the lessees' field office that is nearest the Outer

Continental Shelf facility, or at another location agreed to by the

Regional Supervisor. If the Regional Supervisor requests to see the

records, lessees must provide a copy.

[FR Doc. 96-12544 Filed 5-17-96; 8:45 am]

BILLING CODE 4310-MR-M