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Notice to Lessees and Operators (NTL) of Federal Oil and Gas Leases on the Outer Continental Shelf Flaring and Venting Approvals NOTE:
NTL 2006-N06
This NTL provides guidelines for flaring and venting approvals and updates personnel contacts. It supersedes NTL No. 2003-P04, dated May 18, 2003; NTL No. 2004-G08, dated April 21, 2004; and NTL No. 2005-G04, dated March 1, 2005. Definitions Flaring is the burning of gas in the field as it is released into the atmosphere. Venting is the release of gas into the atmosphere without igniting it. Venting includes gas that is released underwater and bubbles to the atmosphere. Reporting and Record-Keeping Requirements You must report all hydrocarbons produced from a well completion, including all gas flared and vented, to Minerals Revenue Management in accordance with 30 CFR 216.53. Under 30 CFR 250.1105(d), you must also prepare records detailing gas flaring and venting at each facility and maintain these field records for at least 6 years as required at 30 CFR 212.50. During the first 2 years, these field records should be kept at the facility and be available for Minerals Management Service (MMS) inspection in accordance with 30 CFR 250.1105(e). Your field records must include all gas flared and vented, not just gas that is flared and vented during upsets (see attached sample). For example, if your equipment is working properly but a small volume of gas is being flared or vented from storage vessels or other low-pressure production vessels because the gas cannot be economically recovered, this volume must be recorded on your field records. Current regulations do not require you to meter the volume of gas flared or vented at your facility. Therefore, unless the MMS has specifically required you to install flare-vent meters at your facility, you may calculate these volumes to the best of your ability and show these calculated values on your field records. You should be prepared to demonstrate the validity of your calculations to MMS at all times. Classifying Natural Gas Produced natural gas that is used on or for the benefit of lease operations may be reported as lease use gas. Examples include fuel gas used to power generators, fuel gas used to power compressors, gas for flare pilot lights, sparge gas used to regenerate glycol that is emitted with steam from the reboiler, and blanket gas used to maintain fluid levels in storage tanks. Operators should use the minimum amount of lease use gas necessary for its intended purpose. If the lease use gas is not combusted, it should be recaptured and marketed when it is economic to do so. If your equipment is working properly, but produced natural gas is being flared or vented from low-pressure storage vessels, this gas may be considered “small and uneconomic” for purposes of 30 CFR 250.1105(a)(1) only if the cost of installing and operating equipment necessary to capture the gas exceeds the value of the gas over the life of the facility. If the total volume of this gas exceeds an average of 50 thousand cubic feet (MCF) of gas per day at your facility, you should present an evaluation to the Regional Supervisor demonstrating that it is uneconomic to capture this gas and, therefore, the flaring or venting is allowable under 30 CFR 250.1105(a). As an alternative to presenting an economic evaluation, you may install the equipment necessary to capture the gas. Note that this paragraph only applies to gas flared and vented from storage vessels and other low-pressure production vessels. Gulf of Mexico Region (GOMR) Approval Guidelines You should contact the Rate Control Section to conduct business concerning 30 CFR 250, subpart K, and to make oral requests to flare or vent under 30 CFR 250.140. Operators must document oral flaring and venting approvals in writing and send them to the Rate Control Section within 72 hours. An email or facsimile transmission will satisfy this documentation requirement. Note that MMS District Offices are not authorized to approve flaring or venting. Whenever possible, please make requests during normal working hours (7 a.m. to 5 p.m., Monday through Friday). In the event of an evening or weekend emergency, you may call the Rate Control Section cell phone at (504) 914-2329. If there is no answer, please leave a voice mail message so your call can be returned. Contact Information Contact information
may change from time to time.
GOMR Contact Information Email Address: rate.control.unit@mms.gov Cell Number: (504) 914-2329 Fax Number: (504) 736-5754 Contact names and telephone numbers of personnel who can respond to your requests are:
Eric Kazanis, Petroleum Engineer
Joan Edwards, Petroleum Engineer
Michelle Uli, Petroleum Engineer
Richie Baud, Unit Supervisor
Ronald Bowser, Section Chief Pacific Region (POCSR) Approval Guidelines POCSR Contact Information
Office Address:
Office Address: Contact name and telephone number of person who can respond to your requests is:
Office of District Operations, California District Office
Armen Voskanian (Office of Resource Evaluation and Production)
Alaska Region Contact Information
Office Address:
The collection of information referred to in this notice provides clarification, description, or interpretation of requirements contained in 30 CFR 250, subparts K and A, and 30 CFR Part 216. The Office of Management and Budget has approved the collection of information required by these regulations and assigned OMB Control Numbers 1010-0041, 1010-0114, and 1010-0139, respectively. This notice does not impose additional information collection requirements subject to the Paperwork Reduction Act of 1995. Contact If you have any specific questions concerning this NTL, please contact Mr. Richie Baud by email at richie.baud@mms.gov or by phone at (504) 736-2480.
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____________________________________ Robert LaBelle | Privacy | Disclaimers | Accessibility | Topic Index | FOIA | Last Updated: 08/14/2008, 09:57 AM |