The same issue applies to verifications for EGM systems and routine orifice-plate inspection frequencies. Applying for a facility measurement point number. In the proposed rule, the requirement to enter gas analyses into GARVS would go into effect 90 days after the BLM provides notice that GARVS is available for use. Proposed § 3173.71(i) would reduce the requirement to the operator providing an applicant-certified statement that it already has a right-of-way grant, approved under 25 CFR part 169 for rights-of-way over Indian lands. (b) As used in this subpart, the following acronyms carry the meaning prescribed: CA has the meaning set forth in § 3170.10 of this part. This proposed section would clarify that the field staff is required to collect only the observed data specified in proposed § 3174.161(a) in the field. Like other equipment and software requirements, the BLM would review GC software to ensure that it complies with the § 3175.31 requirements, particularly with respect to verifiability and any potential bias that a software might produce. For information on the availability of this material at NARA, email fedreg.legal@nara.gov or go to www.archives.gov/​federal-register/​cfr/​ibr-locations.html. Oil and Gas Site Security, Oil Measurement, and Gas... For Comments on Information-Collection Activities, 1. (18) API MPMS Chapter 8.2, Standard Practice for Automatic Sampling of Petroleum and Petroleum Products; Fourth Edition, November 2016 (“API 8.2”), IBR approved for §§ 3174.102, 3174.157. (c) The pressure transducer must be tested at the following three points:Start Printed Page 56055, (2) 100 percent of the calibrated span of the pressure transducer; and. When a meter tube must be replaced, the only justification for grandfathering—expense—is largely eliminated. For example, reporting a volume of 1224.65219 Mcf of gas (5 decimal places) would exceed the number of significant digits stored in the flow computer or the measurement data system. Based on industry input and recent applications received for commingling approval, the BLM believes that the assumed capital expense estimate does not reflect current capital expenditures or construction costs to segregate production. Under the proposed rule, the BLM would delete the reference to extended analysis and remove the incorporation by reference for GPA 2286-14. If the only issue identified on a high- or very-high-volume FMP is an obstruction, proposed paragraph (i) would only require the operator to remove the obstruction; a detailed inspection would no longer be required. Frequency of Collection: On occasion, except for information collection activities at 43 CFR 3175.115 and 3175.120, which require submission of gas analysis reports at frequencies that vary from monthly to annually. There are no uncertainty limits for low- and very-low-volume FMPs in the existing regulation and the BLM is not proposing to add any. New Financial Security Requirements for Offshore Operators New Regulations from BOEM in the OCS. (b) Components that are listed on the analysis report, but not tested, must be annotated as such. There has been confusion over what is meant by “successive.” In an attempt to address this confusion, the term “successive” would be replaced by “consecutive.”. The BLM believes this timeframe is justified because existing requirements became effective on January 17, 2017, and operators with FMPs installed after that date should already be meeting these requirements. Documentation of Testing for Approval of a Positive Displacement (PD) Meter (Annual). Proposed § 3173.76(a)(4) would add another reason for the BLM to terminate a commingling and allocation approval. Proposed § 3175.50(c)(2)(ii) keeps the current language in existing § 3175.61(b)(2), but segments the compressibility for clarity. Industry has expressed concerns about the expense and logistical difficulties of posting a new QTR every month at every location where the flow computer is not capable of displaying the average values automatically. The BLM believes that the proposed requirement would adequately addresses security concerns regarding access to production without accountability and provide clarity for industry compliance and BLM inspection. The proposed rule would add water-vapor measurement equipment and methods to the list of devices that require BLM approval. In order to accommodate this change, the word “number” would be inserted after the word “FMP” throughout the revised section. Operators expressed concern that compliance with this requirement to test all sampling systems, even those of the same design and construction, is unnecessarily burdensome and provides no benefit to the Federal Government. Under § 3175.101(a) of the proposed rule, the BLM would establish requirements specific to gauge lines. (d) Displacement provers must be sized to obtain a displacer velocity through the prover that is within the appropriate range during proving in accordance with API 4.2, Subsection 4.3.4.2, Minimum Displacer Velocities and Subsection 4.3.4.1, Maximum Displacer Velocities (incorporated by reference, see § 3174.30). is not required for the proposed rule. (a) Operators must submit the following information to the BLM using a Sundry Notice: (1) Notification to the AO of the date an FMP begins voluntary early compliance with this subpart (see § 3174.60(b)(3)); (2) FMP tank calibration charts (tank tables) (see § 3174.82(d)); (3) Notification after repair of any LACT system failures or equipment malfunctions that may have resulted in measurement error (see § 3174.90(e)(1)); (4) Justification for excessive meter factor deviation (see § 3174.154(a)); (5) Prior AO approval to sell or dispose of slop oil (see § 3174.180(c)); and. The BLM believes that the proposed increase in average annual heating value uncertainty would alleviate much of industry's concern while still providing the BLM with an objective and performance-based method to establish spot sampling frequency. AGA Transmission Measurement Committee Report No. (4) The as-found value for temperature must be taken using a certified test thermometer placed in a test thermometer well if there is flow through the meter and the meter tube is equipped with a test thermometer well. Bias means a shift in the mean value of a set of measurements away from the true value of what is being measured. High-volume meters tend to have high enough gas velocity through the meter that corrosive substances, which can cause pitting, such as standing water, cannot collect in the meter tube. Request for Exception to Uncertainty Requirements (Annual). Co-located facilities with multiple operators, oil sales by Lease Automatic Custody Transfer (LACT) system, gas, and water storage. If the absolute value of the transducer reading is greater than the reference accuracy of the transducer, expressed in inches of water column, the transducer must be re-zeroed. The event log must comply with API 21.1, Subsection 5.5 (incorporated by reference, see § 3175.30), with the following additions and clarifications: The event log must have sufficient capacity and must be retrieved and stored at intervals frequent enough to maintain a continuous record of events as required under § 3170.50 of this part, or the life of the FMP, whichever is shorter. For high-volume FMPs, the BLM will add an uncertainty of ±0.25 percent to the discharge coefficient uncertainty when determining overall meter uncertainty under § 3175.31(a), unless the operator provides data to the PMT that shows a lower uncertainty is justified, and the BLM approves a lower uncertainty. Proposed § 3170.30 would pertain to requests to use “alternative measurement equipment and procedures.” Proposed § 3170.30 would apply to both oil and gas measurement, and would replace the procedures described in current § 3174.13, which applies only to the measurement of oil. (ii) Enter any component in a measuring system affecting the accuracy of the measurement of the quality or quantity of the liquid being measured. Although the BLM defined “Notify” in the existing subpart 3174 preamble, the definition for “Notify” did not appear in the final regulation text in subpart 3170 or subpart 3174. GPA Standard 2166-05, Obtaining Natural Gas Samples for Analysis by Gas Chromatography; Adopted as a tentative standard, 1966; Revised and Adopted as a standard 1968; Revised 1986, 2005 (GPA 2166-05). Condensate is considered to be oil for purposes of this part. ; the Act of March 3, 1909, 25 U.S.C. Financial Security. The event log record would allow BLM inspectors as well as operators, to account for diverted production and control loss risk on higher-volume properties. This is another recommendation in API 2.2A that the BLM believes should be a requirement in order to ensure the most accurate volumes are being obtained from FMP tank-capacity tables. The BLM also proposes that in lieu of using the minimum heating value for hexanes-plus required in proposed § 3175.126(a)(3)(i), an operator may use the actual heating value of hexanes, heptanes, and octanes from the C9+ composition as determined under § 3175.119(c). (b) If a lease, unit, or CA consists of more than one separate tract whose boundaries are not contiguous (e.g., a single lease comprises two or more separate tracts), measurement of production at an FMP located on one of the tracts is not considered to be off-lease measurement if: (1) The production is moved from one tract within the same lease, unit, or communitized area to another area of the lease, unit, or communitized area on which the FMP is located; and. The existing language applies to any drain valve in the system. Without a controlled baseline, most data received provided little useful information about the performance of the device. Communitized area means the area committed to a BLM approved communitization agreement. Submitted comments may not be available to be read until the agency has approved them. The proposed rule would also adopt updated industry standards, where appropriate, and provide for the use of emerging measurement technologies. Hydrocarbon dew point (HCDP) means the temperature at which hydrocarbon liquids begin to form within a gas mixture. L. 104-113), charges, with certain exceptions, that “all Federal agencies and departments shall use technical standards that are developed or adopted by voluntary consensus standards bodies, using such technical standards as a means to carry out policy objectives or activities determined by the agencies and departments.” The BLM may incorporate these standards into its regulations by reference without republishing the standards in their entirety in the regulations. Existing subpart 3174 does not reference meter-proving Start Printed Page 56003connections or leak-detection systems and instead incorporates the API 6.1 standard, which is not sufficiently specific. These requirements are now found in existing § 3173.12(f). (f) The temperature averaging device must include a display of instantaneous temperature and the average temperature calculated since the measurement ticket was opened. The BLM recognizes that the functionality of many electronic thermometers allow for live data over the entire transfer period which can allow for a more representative average for the oil temperature. In these situations, hourly data retention is required. The 2016 rule addressed those issues, and this proposed rule would not backtrack on the BLM's progress in these areas. PA has the meaning set forth in § 3170.10 of this part. The proposed regulation maintains identical thresholds for these sections. The limits of the “normal range” would remain the same as the current regulation, but with the “normal” point defined by the conditions at the time of proving. The BLM is proposing that the PMT would review operators' or manufacturers' requests for approval of alternative equipment or measurement methods/procedures to ensure that the alternative equipment or measurement methods/procedures would meet or exceed the objectives of the applicable minimum standards of part 3170 and would not affect royalty income, production accountability, or site security. (b) Orifice plate eccentricity must comply with API 14.3.2, Subsection 6.2.1 (incorporated by reference, see § 3175.30), and the perpendicularity of the orifice plate holder must maintain the plane of the orifice plate at an angle of 90 degrees to the meter tube axis. EGM Requirements for Logs and Calculations. (15) API MPMS Chapter 7—Temperature Determination, Section 2—Portable Electronic Thermometers; Third Edition, May 2018 (“API 7.2”), IBR approved for § 3174.86 introductory paragraph. (a) Composite samplers must be flow-proportional. (5) The alarm log may be part of the event log and fulfill the requirements of this subpart, as long as protections are in place to ensure that excessive alarming will not affect the event log's compliance with the record-keeping requirements of this subpart. (c) Read and record the observed API oil gravity to the nearest 0.1 degree. The BLM is proposing to allow atmospheric pressure to be posted at the FMP instead of meter elevation because either value will allow the BLM to verify the flow computer. Proposed § 3174.102(b) and (d) contain new requirements not found in the current rule concerning sampling frequency and mixing system objectives. The proposed rule would add a definition for the “Propagation of uncertainty” made necessary by the addition of a new condition for commingling in proposed § 3173.70(b)(5). Under proposed § 3174.140, a temporary oil meter would have to meet all the requirements of an FMP with some modified requirements based on the limited timeframe the meter will be on the location (for example, proving requirements). Under existing § 3175.118(e) operators are required to perform extended analyses in accordance with GPA 2286-14. Existing § 3174.11(i) contains meter-proving reporting requirements; however, this section does not clearly state what data operators must provide on a proving report. Acceptable methods of measuring water vapor are: (i) Makes and models of chilled mirrors approved by the BLM and placed on the list of approved equipment and methods maintained at www.blm.gov;​, (ii) Automated chilled mirrors approved by the BLM and placed on the list of approved equipment and methods maintained at www.blm.gov;​ and, (iii) Other equipment and methods approved by the BLM and placed on the list of approved equipment and methods maintained at www.blm.gov;​. This includes, but is not limited to, the sample probe, the sample line including valves and nipples, and the sample cylinder. The requirement for using an FMP number when reporting production to ONRR on OGORs would be tied only to the BLM's assignment of the FMP number. Under § 3175.91(d)(7) of the existing regulations, only the inside diameter of the meter tube is required to be on site, but it is not clear which specific inside diameter is required. As a result, the BLM is soliciting information from the public regarding best practices for the design, installation and use of composite samplers. (ii) The pen must be offset prior to obtaining the as-left verification values required in paragraph (c)(3) of this section. Proposed § 3174.88 would essentially retain the manual tank gauging and ATG methods of tank measurement found in current § 3174.6(b)(5). The proposed rule would also allow for other meter types approved by the BLM. The uncertainty and operating limitations of these devices determined by the PMT would be used in the uncertainty calculator, yielding a more realistic uncertainty calculation. (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 § 3174.88(b). GPA Standard 2166-05 also states that for clean, dry sample streams above the hydrocarbon dew point, the separator serves no useful purpose and could corrupt the sample. Proposed § 3174.110(c) is the same as existing § 3174.10(a). The BLM would delete existing § 3175.115(b)(5), which requires operators to install composite samplers or on-line GCs at very-high-volume FMPs when the BLM determines that the required level of average annual heating value uncertainty at an FMP cannot be achieved through spot sampling. Proposed § 3170.50(g) would revise the IC activity previously approved for § 3170.7(g) by adding “land description” to the list of information that must be included in records that are used to determine quality, quantity, disposition, and verification of production. Defining a minimum heating value instead of a specific composition would give operators flexibility in the composition they choose, as long as that composition has a heating value of at least 6,996 Btu/scf. The proposed rule would simplify some of Start Printed Page 55985the language in this section to reduce confusion. This proposed rule seeks to replace the current requirement for testing, pursuant to API 8.2. Are the thresholds for the proposed grandfathering set at appropriate levels? (a) Volume measurement uncertainty levels. (4) The AO, after considering all relevant factors, may approve the variance, or approve it with COAs, only if the AO determines that: (i) The proposed alternative means of compliance meets or exceeds the objectives of the applicable requirement(s) of the regulation; (ii) Approving the variance will not adversely affect royalty income and production accountability; and. Under existing § 3175.126(a)(1), the reported heating value must be “dry,” unless the water vapor content is determined through actual measurement and reported on the gas-analysis report. The change to 1 business day would allow operators to provide a more accurate notification to the BLM. Request to Use Alternate Measurement System (One-Time). (5) The date of last ATG field verification must be maintained at the FMP in legible condition, in compliance with § 3170.50(g) of this part, and accessible to the AO at all times. 3174.130 Coriolis measurement systems (CMS) — general requirements and components. Unless connected to a vapor recovery or flare system, all tanks must have a pressure-vacuum relief valve installed at the highest point in the vent line or connection with another tank. In order to be approved, a CAA under this paragraph must meet the requirements of paragraphs (a)(2) through (3) of this section and at least one of the following conditions must be met: (1) The Federal or Indian lease, unit PA, or CA meets the definition of an economically marginal property. An MDS does not include Supervisory Control and Data Acquisition (SCADA) systems. The purpose of proposed § 3174.43 is to better organize subpart 3174 by listing in one place the data submission and notification requirements of subpart 3174. Volume statements must include the information identified and required under the recordkeeping requirements of § 3170.50(g) of this part. API MPMS Chapter 22.2—Testing Protocol, Differential Flow Measurement Devices; First Edition, August 2005; Reaffirmed August 2012 (“API 22.2”). (1) 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 §§ 3175.80(p), 3175.112(c), 3175.113(c), 3175.114(b). Meter tubes grandfathered under this section must still meet the following requirements: (i) Orifice plate eccentricity must comply with AGA Report No. The Public Inspection page may also Appendix B of the proposed rule would contain a new table defining the maximum allowable time in days between required orifice-plate inspections, mechanical recorder and EGM system verifications, and spot sampling frequencies. This section reflects the requirements currently located in § 3174.6(b)(4). This change would standardize all FMP tank-capacity tables to one tank shell temperature. Under § 3174.88(a)(4) of the proposed rule, a suitable product-indicating paste may be used, but the use of chalk or talcum powder would be prohibited. 4, and any COAs, written orders, and applicable variances until the compliance deadlines specified in paragraph (b) are reached or the operator begins voluntary compliance with the subpart 3174 requirements. 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”). The proposed rule defines “Very-high-volume FMP” as any FMP that measures 500 bbl oil or more over the averaging period. The BLM believes that it is valuable to have uniformity in these requirements to Start Printed Page 55969alleviate the burdens that having two differing test procedures would create only to achieve essentially the same results. The savings for industry would include significant changes from the following provisions: Lower one-time, non-hourly installation costs under 43 CFR 3175(b)(2) for very-high-volume (VHV) gas FMPs, which would no longer have to install GC meters if they are unable to achieve a minimum variance (uncertainty level) of their gas samples' heating values (measured in Btu per Mcf) ($3.1 million in annualized one-time savings over 3 years); Reducing the frequency of basic and detailed metering-tube inspections required for low-volume (LV) FMPs under § 3175.80(j) and § 3175.80(k)(3) from once every 5 years to once every 10 years, as well as from once every 2 years to once every 5 years for high-volume (HV) FMPs, and from once every year to once every 5 years for VHV FMPs ($2.1 million saved per year); Removing annual spot-sampling requirements for very-low volume (VLV) and LV FMPs that are actually GSAMPs under § 3175.130(b) and for any HV and VHV FMPs under 3175.113(a)(1) where no current production is taking place ($1.3 million saved per year from these and related provisions); Reducing from 3 months to 6 months the frequency with which HV and VHV FMPs must conduct routine EGM system verifications under § 3175.102(b) ($1.1 million saved per year); Removing under § 3175.104(a)(2) the requirement that HV and VHV FMPs replace QTR devices that display fewer than five decimal places ($0.5 million in annual one-time savings for years 1-3); and. Volumes can be displayed as observed and/or gross standard volume, as required. Oil and gas financing is a specialized area of law that can be a trap for the unwary. This omission was an oversight in the writing of the current regulation and the BLM is therefore proposing to add the reference to the corresponding section of the proposed rule. Of particular concern, are those oil and gas facilities operating offshore within Australia’s Exclusive Economic Zone (EEZ). (b) The PMT will review the submitted data to ensure that the alternate oil and gas measurement equipment or method meets the standards of part 3170. Proposed § 3174.102, Sampling and mixing system. Respondent's Obligation: Required to obtain or retain a benefit. The BLM believes the benefits of continued production outweigh the potential drawbacks and pose little risk to royalty accountability. The proposed modification would remove references to tank gauge, LACT, and CMS and instead clarify that any method of oil measurement other than those addressed in this rule or listed on the www.blm.gov website require BLM approval. Proposed § 3173.31 would revise and replace two IC activities previously approved for § 3173.6 (“Water Draining Operations —Data Collection” and “Water Draining Operations—Recordkeeping and Records Submission). 43% of significant cyber breaches were from a lack of end user awareness, exploited via phishing. Under existing § 3175.49, accounting systems used to report measurement data must be approved by the BLM. For example, routine mechanical recorder verifications for a low-volume FMP must occur every 3 months according to existing Table 1 to § 3175.90. The proposed rule would incorporate many of the recommendations that were included in the SOP. We expect the nonhour cost burden for the proposed rule to $4,070,305, which reflects a decrease of $1,510,000. The majority of the changes in this proposed rule would clarify existing requirements, or make minor modifications to existing requirements, and would not require immediate retrofitting. However, the elbow would then become the first obstruction and the installation would no longer comply with the requirement that the sample probe must be the first obstruction downstream of the primary device. Approval of alternative oil or gas measurement equipment or methods must be obtained by following the requirements of this section. 13783 directed Federal agencies, including the BLM, to “review all existing regulations, orders, guidance documents, policies, and any other similar agency actions. See 30 U.S.C. We are highly trained, trusted and certified. Several operators have pointed out that this provision would prevent an operator from voluntarily performing a C9+ analysis when the concentration of C6+ was 0.5 mole percent or less. The intent of the existing regulation is that a meter must be proven if any one of the conditions, temperature, pressure, gravity, or flow rate changes beyond the normal range as defined in § 3174.11(c)(1). Coriolis meter means a device, which determines a mass flow rate by means of the interaction between a flowing fluid and oscillation of tube(s). 235 DM 1.1.K. Proposed § 3174.83(e) reflects the requirement currently contained in existing § 3174.6 (b)(7). The lower the pressure at the FMP, the more significant the error becomes. In most states, oil and gas well operators that are involved in exploring, drilling and plugging of wells are required to secure a surety bond to guarantee the compliance of statutes and regulations set forth by each state for the issuance of a license or permit. After BLM approval, the PMT would post the make, model, range or software version (as applicable), or method/procedure on the BLM's website, making it available for use at all FMPs. Actual days produced between the oil and gas security requirements are found in CFR. Technology areas key to a provision or standard of a commingling and allocation approval to subpart 3174 section is. Your comments should reference API 14.3.2, Subsection 6.4.2 ) flexibility to Future. As transmitters these circumstances pertain to ELM use and automatic-adjusting back-pressure control upon completion of withdrawal... ) only allows composite meter factor must be measured on the reference accuracy of ±0.5 °F to identify makes! Of paragraph ( c ) equipment approvals required in this section applies to at! Minimum performance standards for natural gas and other physical data required under existing § 3174.1 the. 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