[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: 43CFR3160.0-5]

[Page 412-414]
 
                    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 3160--Onshore Oil and Gas Operations: General
 
Sec. 3160.0-5  Definitions.

    As used in this part, the term:
    Authorized representative means any entity or individual authorized 
by the Secretary to perform duties by cooperative agreement, delegation 
or contract.
    Avoidably lost means the venting or flaring of produced gas without 
the prior authorization, approval, ratification or acceptance of the 
authorized officer and the loss of produced oil or gas when the 
authorized officer determines that such loss occurred as a result of:
    (1) Negligence on the part of the operator; or
    (2) The failure of the operator to take all reasonable measures to 
prevent and/or control the loss; or
    (3) The failure of the operator to comply fully with the applicable 
lease terms and regulations, applicable orders and notices, or the 
written orders of the authorized officer; or
    (4) Any combination of the foregoing.
    Drainage means the migration of hydrocarbons, inert gases (other 
than helium), or associated resources caused by production from other 
wells.
    Federal lands means all lands and interests in lands owned by the 
United States which are subject to the mineral

[[Page 413]]

leasing laws, including mineral resources or mineral estates reserved to 
the United States in the conveyance of a surface or nonmineral estate.
    Fresh water means water containing not more than 1,000 ppm of total 
dissolved solids, provided that such water does not contain 
objectionable levels of any constituent that is toxic to animal, plant 
or acquatic life, unless otherwise specified in applicable notices or 
orders.
    Knowingly or willfully means a violation that constitutes the 
voluntary or conscious performance of an act that is prohibited or the 
voluntary or conscious failure to perform an act or duty that is 
required. It does not include performances or failures to perform that 
are honest mistakes or merely inadvertent. It includes, but does not 
require, performances or failures to perform that result from a criminal 
or evil intent or from a specific intent to violate the law. The knowing 
or willful nature of conduct may be established by plain indifference to 
or reckless disregard of the requirements of the law, regulations, 
orders, or terms of the lease. A consistent pattern of performance or 
failure to perform also may be sufficient to establish the knowing or 
willful nature of the conduct, where such consistent pattern is neither 
the result of honest mistakes or mere inadvertency. Conduct that is 
otherwise regarded as being knowing or willful is rendered neither 
accidental nor mitigated in character by the belief that the conduct is 
reasonable or legal.
    Lease means any contract, profit-share arrangement, joint venture or 
other agreement issued or approved by the United States under a mineral 
leasing law that authorizes exploration for, extraction of or removal of 
oil or gas.
    Lease site means any lands, including the surface of a severed 
mineral estate, on which exploration for, or extraction and removal of, 
oil or gas is authorized under a lease.
    Lessee means any person holding record title or owning operating 
rights in a lease issued or approved by the United States.
    Lessor means the party to a lease who holds legal or beneficial 
title to the mineral estate in the leased lands.
    Major violation means noncompliance that causes or threatens 
immediate, substantial, and adverse impacts on public health and safety, 
the environment, production accountability, or royalty income.
    Maximum ultimate economic recovery means the recovery of oil and gas 
from leased lands which a prudent operator could be expected to make 
from that field or reservoir given existing knowledge of reservoir and 
other pertinent facts and utilizing common industry practices for 
primary, secondary or tertiary recovery operations.
    Minor violation means noncompliance that does not rise to the level 
of a major violation.
    New or resumed production under section 102(b)(3) of the Federal Oil 
and Gas Royalty Management Act means the date on which a well commences 
production, or resumes production after having been off production for 
more than 90 days, and is to be construed as follows:
    (1) For an oil well, the date on which liquid hydrocarbons are first 
sold or shipped from a temporary storage facility, such as a test tank, 
or the date on which liquid hydrocarbons are first produced into a 
permanent storage facility, whichever first occurs; and
    (2) For a gas well, the date on which gas is first measured through 
sales metering facilities or the date on which associated liquid 
hydrocarbons are first sold or shipped from a temporary storage 
facility, whichever first occurs. For purposes of this provision, a gas 
well shall not be considered to have been off of production unless it is 
incapable of production.
    Notice to lessees and operators (NTL) means a written notice issued 
by the authorized officer. NTL's implement the regulations in this part 
and operating orders, and serve as instructions on specific item(s) of 
importance within a State, District, or Area.
    Onshore oil and gas order means a formal numbered order issued by 
the Director that implements and supplements the regulations in this 
part.
    Operating rights owner means a person who owns operating rights in a 
lease. A record title holder may also be an operating rights owner in a 
lease if it did not transfer all of its operating rights.

[[Page 414]]

    Operator means any person or entity including but not limited to the 
lessee or operating rights owner, who has stated in writing to the 
authorized officer that it is responsible under the terms and conditions 
of the lease for the operations conducted on the leased lands or a 
portion thereof.
    Paying well means a well that is capable of producing oil or gas of 
sufficient value to exceed direct operating costs and the costs of lease 
rentals or minimum royalty.
    Person means any individual, firm, corporation, association, 
partnership, consortium or joint venture.
    Production in paying quantities means production from a lease of oil 
and/or gas of sufficient value to exceed direct operating costs and the 
cost of lease rentals or minimum royalties.
    Protective well means a well drilled or modified to prevent or 
offset drainage of oil and gas resources from its Federal or Indian 
lease.
    Record title holder means the person(s) to whom BLM or an Indian 
lessor issued a lease or approved the assignment of record title in a 
lease.
    Superintendent means the superintendent of an Indian Agency, or 
other officer authorized to act in matters of record and law with 
respect to oil and gas leases on restricted Indian lands.
    Surface use plan of operations means a plan for surface use, 
disturbance, and reclamation.
    Waste of oil or gas means any act or failure to act by the operator 
that is not sanctioned by the authorized officer as necessary for proper 
development and production and which results in: (1) A reduction in the 
quantity or quality of oil and gas ultimately producible from a 
reservoir under prudent and proper operations; or (2) avoidable surface 
loss of oil or gas.

[53 FR 17362, May 16, 1988, as amended at 53 FR 22846, June 17, 1988; 66 
FR 1892, Jan. 10, 2001]