[Federal Register Volume 80, Number 235 (Tuesday, December 8, 2015)]
[Notices]
[Pages 76307-76311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30883]



[[Page 76307]]

-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

[Docket ID BSEE-BSEE-2015-0011; OMB Control Number 1014-0019; 
15XE1700DX EEEE500000 EX1SF0000.DAQ000]


Information Collection Activities: Oil and Gas Production 
Requirements; Submitted for Office of Management and Budget (OMB) 
Review; Comment Request

ACTION: 30-day Notice.

-----------------------------------------------------------------------

SUMMARY: To comply with the Paperwork Reduction Act of 1995 (PRA), the 
Bureau of Safety and Environmental Enforcement (BSEE) is notifying the 
public that we have submitted to OMB an information collection request 
(ICR) to renew approval of the paperwork requirements in the 
regulations under subpart K, Oil and Gas Production Requirements. This 
notice also provides the public a second opportunity to comment on the 
revised paperwork burden of these regulatory requirements.

DATES: You must submit comments by January 7, 2016.

ADDRESSES: Submit comments by either fax (202) 395-5806 or email 
([email protected]) directly to the Office of Information and 
Regulatory Affairs, OMB, Attention: Desk Officer for the Department of 
the Interior (1014-0019). Please provide a copy of your comments to 
BSEE by any of the means below.
     Electronically go to http://www.regulations.gov. In the 
Search box, enter BSEE-2015-0011 then click search. Follow the 
instructions to submit public comments and view all related materials. 
We will post all comments.
     Email [email protected], fax (703) 787-1546, or mail 
or hand-carry comments to the Department of the Interior; Bureau of 
Safety and Environmental Enforcement; Regulations and Standards Branch; 
ATTN: Cheryl Blundon; 45600 Woodland Road, Sterling, VA 20166. Please 
reference ICR 1014-0019 in your comment and include your name and 
return address.

FOR FURTHER INFORMATION CONTACT: Cheryl Blundon, Regulations and 
Standards Branch, (703) 787-1607, to request additional information 
about this ICR. To see a copy of the entire ICR submitted to OMB, go to 
http://www.reginfo.gov (select Information Collection Review, Currently 
Under Review).

SUPPLEMENTARY INFORMATION: 
    Title: 30 CFR 250, Subpart K, Oil and Gas Production Requirements.
    Form(s): BSEE-0126 and BSEE-0128.
    OMB Control Number: 1014-0019.
    Abstract: The Outer Continental Shelf (OCS) Lands Act (OCSLA), at 
43 U.S.C. 1334 authorizes the Secretary of the Interior to prescribe 
rules and regulations necessary for the administration of the leasing 
provisions of that Act related to mineral resources on the OCS. Such 
rules and regulations will apply to all operations conducted under a 
lease, right-of-way, or a right-of-use and easement. Operations on the 
OCS must preserve, protect, and develop oil and natural gas resources 
in a manner that is consistent with the need to make such resources 
available to meet the Nation's energy needs as rapidly as possible; to 
balance orderly energy resource development with protection of human, 
marine, and coastal environments; to ensure the public a fair and 
equitable return on the resources of the OCS; and to preserve and 
maintain free enterprise competition.
    Section 5(a) of the OCS Lands Act requires the Secretary to 
prescribe rules and regulations ``to provide for the prevention of 
waste, and conservation of the natural resources of the Outer 
Continental Shelf, and the protection of correlative rights therein'' 
and to include provisions ``for the prompt and efficient exploration 
and development of a lease area.''
    Section 1334(g)(2) states ``. . . the lessee shall produce such oil 
or gas, or both, at rates . . . to assure the maximum rate of 
production which may be sustained without loss of ultimate recovery of 
oil or gas, or both, under sound engineering and economic principles, 
and which is safe for the duration of the activity covered by the 
approved plan.''
    In addition to the general authority of OCSLA, section 301(a) of 
the Federal Oil and Gas Royalty Management Act (FOGRMA), 30 U.S.C. 
1751(a), grants authority to the Secretary to prescribe such rules and 
regulations as are reasonably necessary to carry out FOGRMA's 
provisions. While the majority of FOGRMA is directed to royalty 
collection and enforcement, some provisions apply to offshore 
operations. For example, section 109(c)(2) and (d)(1), 30 U.S.C. 
1719(c)(2) and (d)(1), impose substantial civil penalties for failure 
to permit lawful inspections and for knowing or willful preparation or 
submission of false, inaccurate, or misleading reports, records, or 
other information. Because the Secretary has delegated some of the 
authority under FOGRMA to the Bureau of Safety and Environmental 
Enforcement (BSEE), 30 U.S.C. 1751 is included as additional authority 
for these requirements.
    The Independent Offices Appropriations Act (31 U.S.C. 9701), the 
Omnibus Appropriations Bill (Pub. L. 104-133, 110 Stat. 1321, April 26, 
1996), and OMB Circular A-25, authorize Federal agencies to recover the 
full cost of services that confer special benefits. Under the 
Department of the Interior's implementing policy, BSEE is required to 
charge the full cost for services that provide special benefits or 
privileges to an identifiable non-Federal recipient above and beyond 
those that accrue to the public at large. Several requests for approval 
required in Subpart K are subject to cost recovery and BSEE regulations 
specify service fees for these requests.
    Regulations implementing these responsibilities are among those 
delegated to BSEE.
    Responses are mandatory or are required to obtain or retain a 
benefit. No questions of a sensitive nature are asked. BSEE protects 
information considered proprietary under the Freedom of Information Act 
(5 U.S.C. 552) and DOI's implementing regulations (43 CFR 2), and under 
regulations at 30 CFR part 250.197, Data and information to be made 
available to the public or for limited inspection, 30 CFR part 252, OCS 
Oil and Gas Information Program.
    The information collected under Subpart K is used in our efforts to 
conserve natural resources, prevent waste, and protect correlative 
rights, including the Federal Government's royalty interest. 
Specifically, BSEE uses the information to:
     Evaluate requests to burn liquid hydrocarbons and vent and 
flare gas to ensure that these requests are appropriate;
     determine if a maximum production or efficient rate is 
required; and,
     review applications for downhole commingling to ensure 
that action does not result in harm to ultimate recovery.
    We collect the information required under this Subpart for 
reservoir, reserves, and conservation analyses, including the 
determination of maximum production rates (MPRs) when necessary for 
certain oil and gas completions and to evaluate the results of well 
tests to determine if reservoirs are being depleted in a manner that 
will lead to the greatest ultimate recovery of hydrocarbons.
    The current subpart K regulations also specify the use of forms 
BSEE-0126

[[Page 76308]]

(Well Potential Test Report) and BSEE-0128 (Semiannual Well Test 
Report). Under BSEE-0126, we use this information for reservoir, 
reserves, and conservation analyses, including the determination of 
maximum production rates (MPRs) when necessary for certain oil and gas 
completions. This requirement implements the conservation provisions of 
the OCS Lands Act and 30 CFR 250. The information obtained from the 
well potential test is essential to determine if an MPR is necessary 
for a well and to establish the appropriate rate. It is not possible to 
specify an MPR in the absence of information about the production rate 
capability (potential) of the well.
    Under BSEE-0128, we use this information to evaluate the results of 
well tests to determine if reservoirs are being depleted in a manner 
that will lead to the greatest ultimate recovery of hydrocarbons. This 
information is collected to determine the capability of hydrocarbon 
wells and to evaluate and verify an operator's approved maximum 
production rate if assigned. The form was designed to present current 
well data on a semiannual basis to permit the updating of permissible 
producing rates, and to provide the basis for estimates of currently 
remaining recoverable gas reserves.
    Frequency: On occasion, weekly, monthly, semi-annual, annual, and 
varies as required by regulations.
    Description of Respondents: Potential respondents comprise OCS 
Federal oil, gas, or sulphur lessees and/or operators.
    Estimated Reporting and Recordkeeping Hour Burden: The estimated 
annual hour burden for this information collection is a total of 46,136 
hours. The following chart details the individual components and 
estimated hour burdens. In calculating the burdens, we assumed that 
respondents perform certain requirements in the normal course of their 
activities. We consider these to be usual and customary and took that 
into account in estimating the burden.

                                                  Burden Table
----------------------------------------------------------------------------------------------------------------
                                                                            Non-hour cost burdens
                                          Reporting &       ----------------------------------------------------
 30 CFR 250 Subpart K and related        recordkeeping                                             Annual burden
               NTLs                      requirement *         Hour burden    Average number of        hours
                                                                               annual responses      (rounded)
----------------------------------------------------------------------------------------------------------------
                                  WELL TESTS/SURVEYS and CLASSIFYING RESERVOIRS
----------------------------------------------------------------------------------------------------------------
1151(a)(1), (c); 1167............  Conduct well production              3.4  587 forms and                 1,996
                                    test; submit Form BSEE-                   information.
                                    0126 (Well Potential
                                    Test Report) and
                                    supporting information
                                    within 15 days after
                                    end of test period.
----------------------------------------------------------------------------------------------------------------
1151(a)(2), (c); 1167............  Conduct well production              3.2  8,605 forms and              27,536
                                    test; submit Form BSEE-                   information.
                                    0128 (Semiannual Well
                                    Test Report) and
                                    supporting information
                                    within 45 days after
                                    end of calendar half-
                                    year.
----------------------------------------------------------------------------------------------------------------
1151(b)..........................  Request extension of                 0.6  8 requests.........               5
                                    time to submit results
                                    of semi-annual well
                                    test.
----------------------------------------------------------------------------------------------------------------
1152(b), (c);....................  Request approval to                  0.9  7 requests.........               6
                                    conduct well testing
                                    using alternative
                                    procedures.
----------------------------------------------------------------------------------------------------------------
1152(d)..........................  Provide advance notice               0.6  36 notices.........              22
                                    of time and date of
                                    well tests.
----------------------------------------------------------------------------------------------------------------
    Subtotal.....................  ........................  ..............  9,243 responses....          29,565
----------------------------------------------------------------------------------------------------------------
                                          APPROVALS PRIOR TO PRODUCTION
----------------------------------------------------------------------------------------------------------------
1156; 1167.......................  Request approval to                 8.75  20 requests........             175
                                    produce within 500 feet
                                    of a unit or lease
                                    line; submit supporting
                                    information/
                                    documentation; notify
                                    adjacent operators and
                                    provide BSEE proof of
                                    notice date.
                                                            ----------------------------------------------------
                                                                        $3,892 x 20 requests = $77,840
----------------------------------------------------------------------------------------------------------------
1156(b); 1158(b).................  Notify adjacent                     1.63  20 letters.........              33
                                    operators submit
                                    letters of acceptance
                                    or objection to BSEE
                                    within 30 days after
                                    notice; include proof
                                    of notice date.
----------------------------------------------------------------------------------------------------------------
1157; 1167.......................  Request approval to                 16.2  22 requests........             356
                                    produce gas-cap gas in
                                    an oil reservoir with
                                    an associated gas cap,
                                    or to continue
                                    producing an oil well
                                    showing characteristics
                                    of a gas well with an
                                    associated gas cap;
                                    submit producing an oil
                                    well showing
                                    characteristics of a
                                    gas well with an
                                    associated gas cap;
                                    submit supporting
                                    information.
                                                            ----------------------------------------------------
                                                                       $4,953 x 22 requests = $108,966
----------------------------------------------------------------------------------------------------------------

[[Page 76309]]

 
1158; 1167.......................  Request approval to                   24  30 applications....             720
                                    downhole commingle
                                    hydrocarbons; submit
                                    supporting information;
                                    notify operators and
                                    provide proof of notice
                                    date.
                                                            ----------------------------------------------------
                                                                     $5,779 x 30 applications = $173,370
----------------------------------------------------------------------------------------------------------------
    Subtotal.....................  ........................  ..............  92 responses.......           1,284
----------------------------------------------------------------------------------------------------------------
                                                      $360,176 non-hour costs
----------------------------------------------------------------------------------------------------------------
                                   FLARING, VENTING, and BURNING HYDROCARBONS
----------------------------------------------------------------------------------------------------------------
1160; 1161; 1163(e)..............  Request approval to                 2.55  231 requests/                   589
                                    flare or vent natural                     reports.
                                    gas or exceed specified
                                    time limits/volumes;
                                    submit evaluation/
                                    documentation; report
                                    flare/vent information
                                    due to blow down of
                                    transportation
                                    pipelines within 72
                                    hours after incident.
----------------------------------------------------------------------------------------------------------------
1160(b); 1164(b)(1), (2).........   H2S Contingency, Exploration, or Development and Production                0
                                     Plans and, Development Operations Coordination Documents--
                                        burdens covered under 1014-0018 and BOEM's 1010-0151.
                                     Monitor air quality and report--burdens covered under 1010-
                                                                0057.
----------------------------------------------------------------------------------------------------------------
1162; 1163(e)....................  Request approval to burn            1.25  3 requests/reports.               4
                                    produced liquid
                                    hydrocarbons;
                                    demonstrate no risk and/
                                    or submit documentation
                                    re transport. If
                                    approval needed, submit
                                    documentation with
                                    relevant information re
                                    hydrocarbons burned
                                    under the approval.
----------------------------------------------------------------------------------------------------------------
1163.............................  Initial purchase or               13 meters @$77,000 each--$1,001,000
                                    replacement of gas
                                    meters to measure the
                                    amount of gas flared or
                                    vented. This is a non-
                                    hour cost burden.
----------------------------------------------------------------------------------------------------------------
1163(a)(1).......................  Notify BSEE when                    1.25  33 notices.........              41
                                    facility begins to
                                    process more than an
                                    average of 2,000 bopd
                                    per month.
----------------------------------------------------------------------------------------------------------------
1163(b);.........................   Report to ONRR hydrocarbons produced, including measured gas               0
                                     flared/vented and liquid hydrocarbon burned--burden covered
                                                          under 1012-0004.
----------------------------------------------------------------------------------------------------------------
1163(a), (c), (d)................  Maintain records for 6              14.8  914 platforms (gas           13,527
                                    years detailing on a     ..............   flare/vent).        ..............
                                    daily and monthly                     1  60 liquid                        60
                                    cumulative basis gas                      hydrocarbon.
                                    flaring/venting, liquid
                                    hydrocarbon burning;
                                    and flare/vent meter
                                    recordings; make
                                    available for
                                    inspection or provide
                                    copies upon request.
----------------------------------------------------------------------------------------------------------------
1164(c)..........................  Submit monthly reports               3.6  15 operators x 12               648
                                    of flared or vented gas                   mos. = 180.
                                    containing H2S.
----------------------------------------------------------------------------------------------------------------
    Subtotal.....................  ........................  ..............  1,434 responses....          14,869
----------------------------------------------------------------------------------------------------------------
                                                     $1,001,000 non-hour costs
----------------------------------------------------------------------------------------------------------------
                                               OTHER REQUIREMENTS
----------------------------------------------------------------------------------------------------------------
1165.............................  Submit proposed plan and              12  18 plans...........             216
                                    supporting information
                                    for enhanced recovery
                                    operations.
----------------------------------------------------------------------------------------------------------------
1165(c)..........................     Submit periodic reports of volumes of oil, gas, or other                 0
                                       substances injected, produced, or produced for a second
                                            time--burden covered under ONRR's 1012-0004.
----------------------------------------------------------------------------------------------------------------
1166.............................  Alaska Region only:                    1  1 (req'd by State,                1
                                    submit annual reservoir                   BSEE gets copy).
                                    management report and
                                    supporting information.
                                                            ----------------------------------------------------
                                                                        100  1 new development               100
                                                                              not State lands.
                                                            ----------------------------------------------------
                                                                         20  1 revision.........              20
----------------------------------------------------------------------------------------------------------------

[[Page 76310]]

 
1150-1167........................  General departure or                 2.8  29 submissions.....              81
                                    alternative compliance
                                    requests not
                                    specifically covered
                                    elsewhere in Subpart K.
----------------------------------------------------------------------------------------------------------------
    Subtotal.....................  ........................  ..............  50 responses.......             418
                                  ------------------------------------------------------------------------------
        Total Burden.............  ........................  ..............  10,819 Responses...          46,136
                                  ------------------------------------------------------------------------------
                                                                       $1,361,176 non-hour cost burdens
----------------------------------------------------------------------------------------------------------------
* In the future, BSEE may require electronic filing of some submissions.

    Estimated Reporting and Recordkeeping Non-Hour Cost Burden: We have 
identified four non-hour cost burdens, for a total of $1,361,176. Three 
are service fees required to recover the Federal Government's 
processing costs of certain submissions. The fourth cost is an IC 
equipment expenditure. The details are as follows:

Sec.   250.1156 requires a service fee when submitting a          $3,892
 request for approval to produce within 500 feet of a unit
 or lease line.............................................
Sec.   250.1157 requires a service fee when submitting a          $4,953
 request for approval before producing gas-cap gas from
 each completion in an oil reservoir known to have an
 associated gas cap, or to continue producing if an oil
 reservoir is not initially known to have an associated gas
 cap, but begins to show characteristics of a gas well.....
Sec.   250.1158 requires a service fee for submitting a           $5,779
 request for approval to downhole commingle hydrocarbons...
Sec.   250.1163 requires respondents to purchase and             $77,000
 install gas meters to measure the amount of gas flared or
 vented gas for those that produce more than 2,000 bopd and
 do not already have a meter or need to replace a meter....
 

We have not identified any other non-hour cost burden associated with 
this collection of information.
    Public Disclosure Statement: The PRA (44 U.S.C. 3501, et seq.,) 
provides that an agency may not conduct or sponsor a collection of 
information unless it displays a currently valid OMB control number. 
Until OMB approves a collection of information, you are not obligated 
to respond.
    Comments: Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3501, et 
seq.,) requires each agency ``. . . to provide notice . . . and 
otherwise consult with members of the public and affected agencies 
concerning each proposed collection of information . . .'' Agencies 
must specifically solicit comments to: (a) Evaluate whether the 
collection is necessary or useful; (b) evaluate the accuracy of the 
burden of the proposed collection of information; (c) enhance the 
quality, usefulness, and clarity of the information to be collected; 
and (d) minimize the burden on the respondents, including the use of 
technology.
    To comply with the public consultation process, on August 27, 2015, 
we published a Federal Register notice (80 FR 52061) announcing that we 
would submit this ICR to OMB for approval. The notice provided the 
required 60-day comment period. In addition, Sec.  250.199 provides the 
OMB Control Number for the information collection requirements imposed 
by the 30 CFR 250, subpart K regulations and forms. The regulation also 
informs the public that they may comment at any time on the collections 
of information and provides the address to which they should send 
comments. We received eight comments (seven of which were from the same 
individual) in response to the Federal Register notice or unsolicited 
comments from respondents covered under these regulations. While the 
majority of the comments were not germane to the paperwork burden of 
this collection; we have responded to the specific electronic burden 
comments, and some broad based reporting requirement comments.
    In response to the comment that ``BSEE is still in the paper 
collection and data entry paradigm'' regarding the Well Potential Test 
Report (Form BSEE-0126) and the Semiannual Well Test Report (Form BSEE-
0128), we offer the following. Regarding the Semiannual Well Test 
Report, starting in 2009, we strongly encouraged operators to submit 
the data electronically as there is no regulatory authority to require 
electronic submittals. BSEE estimates that 40-50 percent of this data 
is currently submitted electronically. When submitted electronically, 
there is obviously no need for a public information copy. BSEE 
continues to encourage operators to submit this data electronically. 
Regarding the Well Potential Test Report, they are not currently 
submitted electronically because in addition to the form, structure 
maps, well log sections, and other proprietary data are attached as 
part of the submittal. Therefore, it would not be efficient to have 
operators submit the data on the form separate from the structure maps, 
etc. BSEE does agree that a long term solution could be to have all 
such data submitted electronically and will continue to pursue.
    In response to the comment that we should ``streamline the 
reporting as to reduce the burden to the oil and gas companies'', if we 
did not collect the information required in this subpart, BSEE would be 
unable to effectively carry out: The mandate of the OCS Lands Act, 
administer the offshore program, and promote and ensure the safety of 
the environment and personnel working on the OCS.
    In response to the comment, ``the oil and gas companies should only 
be required to report oil and gas production and operations to one 
office. This will reduce the reporting requirements and costs to the 
companies and those savings, should hopefully be passed upon to the 
consumers. Therefore, BSEE and BOEM should have one central point of 
contact to receive information from the oil and gas companies. 
Duplicative reporting should be avoided''. Our response, BSEE agrees 
that duplicative reporting should be avoided. There is no one central 
reporting location for both BSEE

[[Page 76311]]

and BOEM. However, BSEE works closely with BOEM to review the 
regulatory reporting requirements and to ensure there is no duplicative 
reporting. For more information on BSEE and BOEM individual reporting 
requirements refer to 30 CFR 250 and 550 respectively.
    Public Availability of Comments: Before including your address, 
phone number, email address, or other personal identifying information 
in your comment, you should be aware that your entire comment--
including your personal identifying information--may be made publicly 
available at any time. While you can ask us in your comment to withhold 
your personal identifying information from public review, we cannot 
guarantee that we will be able to do so.

    Dated: November 19, 2015.
Robert W. Middleton,
Deputy Chief, Office of Offshore Regulatory Programs.
[FR Doc. 2015-30883 Filed 12-7-15; 8:45 am]
 BILLING CODE 4310-VH-P