[Code of Federal Regulations]
[Title 43, Volume 2]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 43CFR3162.7-5]

[Page 428-430]
 
                    TITLE 43--PUBLIC LANDS: INTERIOR
 
    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR
 
PART 3160--ONSHORE OIL AND GAS OPERATIONS--Table of Contents
 
  Subpart 3162--Requirements for Operating Rights Owners and Operators
 
Sec. 3162.7-5  Site security on Federal and Indian (except Osage) oil and gas leases.

    (a) Definitions.
    Appropriate valves. Those valves in a particular piping system, 
i.e., fill lines, equalizer or overflow lines, sales lines, circulating 
lines, and drain lines that shall be sealed during a given operation.
    Effectively sealed. The placement of a seal in such a manner that 
the position of the sealed valve may not be altered without the seal 
being destroyed.
    Production phase. That period of time or mode of operation during 
which crude oil is delivered directly to or through production vessels 
to the storage facilities and includes all operations at the facility 
other than those defined by the sales phase.
    Sales phase. That period of time or mode of operation during which 
crude oil is removed from the storage facilities for sales, 
transportation or other purposes.
    Seal. A device, uniquely numbered, which completely secures a valve.
    (b) Minimum Standards. Each operator of a Federal or Indian lease 
shall comply with the following minimum standards to assist in providing 
accountability of oil or gas production:
    (1) All lines entering or leaving oil storage tanks shall have 
valves capable of being effectively sealed during the production and 
sales operations unless otherwise modified by other subparagraphs of 
this paragraph, and any equipment needed for effective sealing, 
excluding the seals, shall be located at the site. For a minimum of 6 
years the operator shall maintain a record of seal numbers used and 
shall document on which valves or connections they were used as well as 
when they were installed and removed. The site facility diagram(s) shall 
show which valves will be sealed in which position during both the 
production and sales phases of operation.
    (2) Each Lease Automatic Custody Transfer (LACT) system shall employ 
meters that have non-resettable totalizers. There shall be no by-pass 
piping around the LACT. All components of the LACT that are used for 
volume or quality determinations of the oil shall be effectively sealed. 
For systems where production may only be removed through the LACT, no 
sales or equalizer valves need be sealed. However, any valves which may 
allow access for removal of oil before measurement through the LACT 
shall be effectively sealed.
    (3) There shall be no by-pass piping around gas meters. Equipment 
which permits changing the orifice plate without bleeding the pressure 
off the gas meter run is not considered a by-pass.
    (4) For oil measured and sold by hand gauging, all appropriate 
valves shall be sealed during the production or sales phase, as 
applicable.
    (5) Circulating lines having valves which may allow access to remove 
oil from storage and sales facilities to any other source except through 
the treating equipment back to storage shall be effectively sealed as 
near the storage tank as possible.
    (6) The operator, with reasonable frequency, shall inspect all 
leases to determine production volumes and that the minimum site 
security standards are being met. The operator shall retain records of 
such inspections and measurements for 6 years from generation. Such 
records and measurements shall be available to any authorized officer or 
authorized representative upon request.
    (7) Any person removing oil from a facility by motor vehicle shall 
possess

[[Page 429]]

the identification documentation required by appicable NTL's or onshore 
Orders while the oil is removed and transported.
    (8) Theft or mishandling of oil from a Federal or Indian lease shall 
be reported to the authorized officer as soon as discovered, but not 
later than the next business day. Said report shall include an estimate 
of the volume of oil involved. Operators also are expected to report 
such thefts promptly to local law enforcement agencies and internal 
company security.
    (9) Any operator may request the authorized officer to approve a 
variance from any of the minimum standards prescribed by this section. 
The variance request shall be submitted in writing to the authorized 
officer who may consider such factors as regional oil field facility 
characteristics and fenced, guarded sites. The authorized officer may 
approve a variance if the proposed alternative will ensure measures 
equal to or in excess of the minimum standards provided in paragraph (b) 
of this section wil be put in place to detect or prevent internal and 
external theft, and will result in proper production accountability.
    (c) Site security plans. (1) Site security plans, which include the 
operator's plan for complying with the minimum standards enumerated in 
paragraph (b) of this section for ensuring accountability of oil/
condensate production are required for all facilities and such 
facilities shall be maintained in compliance with the plan. For new 
facilities, notice shall be given that it is subject to a specific 
existing plan, or a notice of a new plan shall be submitted, no later 
than 60 days after completion of construction or first production or 
following the inclusion of a well on committed non-Federal lands into a 
federally supervised unit or communitization agreement, whichever occurs 
first, and on that date the facilities shall be in compliance with the 
plan. At the operator's option, a single plan may include all of the 
operator's leases, unit and communitized areas, within a single BLM 
district, provided the plan clearly identifies each lease, unit, or 
communitized area included within the scope of the plan and the extent 
to which the plan is applicable to each lease, unit, or communitized 
area so identified.
    (2) The operator shall retain the plan but shall notify the 
authorized officer of its completion and which leases, unit and 
communitized areas are involved. Such notification is due at the time 
the plan is completed as required by paragraph (c)(1) of this section, 
Such notification shall include the location and normal business hours 
of the office where the plan will be maintained. Upon request, all plans 
shall be made available to the authorized officer.
    (3) The plan shall include the frequency and method of the 
operator's inspection and production volume recordation. The authorized 
officer may, upon examination, require adjustment of the method or 
frequency of inspection.
    (d) Site facility diagrams. (1) Facility diagrams are required for 
all facilities which are used in storing oil/condensate produced from, 
or allocated to, Federal or Indian lands. Facility diagrams shall be 
filed within 60 days after new measurement facilities are installed or 
existing facilities are modified or following the inclusion of the 
facility into a federally supervised unit or communitization agreement.
    (2) No format is prescribed for facility diagrams. They are to be 
prepared on 8\1/2\x11 paper, if possible, and be 
legible and comprehensible to a person with ordinary working knowledge 
of oil field operations and equipment. The diagram need not be drawn to 
scale.
    (3) A site facility diagram shall accurately reflect the actual 
conditions at the site and shall, commencing with the header if 
applicable, clearly identify the vessels, piping, metering system, and 
pits, if any, which apply to the handling and disposal of oil, gas and 
water. The diagram shall indicate which valves shall be sealed and in 
what position during the production or sales phase. The diagram shall 
clearly identify the lease on which the facility is located and the site 
security plan to

[[Page 430]]

which it is subject, along with the location of the plan.

[47 FR 47765, Oct. 27, 1982. Redesignated at 48 FR 36583-36586, Aug. 12, 
1983, and amended at 52 FR 5392, Feb. 20, 1987. Redesignated at 53 FR 
1218, Jan. 15, 1988; 53 FR 24688, June 30, 1988]