[Federal Register Volume 88, Number 116 (Friday, June 16, 2023)]
[Rules and Regulations]
[Pages 39514-39566]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-11742]



[[Page 39513]]

Vol. 88

Friday,

No. 116

June 16, 2023

Part II





Department of the Interior





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Bureau of Land Management





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43 CFR Part 3170





Onshore Oil and Gas Operations; Federal and Indian Oil and Gas Leases; 
Codification of Onshore Orders 1, 2, 6, and 7

  Federal Register / Vol. 88 , No. 116 / Friday, June 16, 2023 / Rules 
and Regulations  

[[Page 39514]]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Part 3170

[BLM_HQ_FRN_MO4500171611]
RIN 1004-AE90


Onshore Oil and Gas Operations; Federal and Indian Oil and Gas 
Leases; Codification of Onshore Orders 1, 2, 6, and 7

AGENCY: Bureau of Land Management, Interior.

ACTION: Final rule.

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SUMMARY: This final rule codifies Onshore Order 1--Approval of 
Operations; Onshore Order 2--Drilling Operations on Federal and Indian 
Oil and Gas Leases; Onshore Order 6--Hydrogen Sulfide Operations; and 
Onshore Order 7--Disposal of Produced Water. This rule places the 
existing regulations, which were promulgated over the years through 
various notice and comment rulemakings but not codified in the Code of 
Federal Regulations (CFR), into the CFR in their entirety without 
making any substantive changes.

DATES: This final rule is effective on June 16, 2023.
    The incorporation by reference of certain publications listed in 
the rule is approved by the Director of the Federal Register as of June 
16, 2023.

ADDRESSES: You may send inquiries or suggestions to Director (630), 
Bureau of Land Management, 1849 C St. NW, Room 5646, Washington, DC 
20240; Attention: RIN 1004-AE86.

FOR FURTHER INFORMATION CONTACT: Matthew Warren, Acting Chief, Division 
of Fluid Minerals, 505-216-8832, [email protected]; or Faith Bremner, 
Regulatory Analyst, Division of Regulatory Affairs, [email protected]. 
Individuals in the United States who are deaf, blind, hard of hearing, 
or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to 
access telecommunications relay services for contacting Mr. Warren. 
Individuals outside the United States should use the relay services 
offered within their country to make international calls to the point-
of-contact in the United States.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Bureau of Land Management's (BLM) regulations at 43 CFR part 
3160 authorize the agency to issue onshore oil and gas orders to 
``implement and supplement'' the oil and gas operations regulations in 
part 3160. See 43 CFR 3164.1. The Onshore Orders apply nationwide to 
all Federal onshore and Indian (except the Osage Nation) oil and gas 
leases and are documents of general applicability and legal effect. All 
the Onshore Orders were published in the Federal Register and adopted 
through prior notice-and-comment rulemaking, but were never codified in 
the CFR.
    Beginning in 1983, the BLM issued and revised a total of seven 
Onshore Orders. The four Orders that are the subject of this final rule 
were published and revised as follows:
    Onshore Order 1--Approval of Operations, published October 21, 1983 
(48 FR 48916); revised March 7, 2007 (72 FR 10308), and January 10, 
2017 (82 FR 2906). This Onshore Order supplements regulations at 43 CFR 
3162.3, Conduct of operations, and Sec.  3162.5, Environment and 
safety.
    Onshore Order 2--Drilling Operations on Federal and Indian Oil and 
Gas Leases, published November 18, 1988 (53 FR 46798); revised 
September 27, 1989 (54 FR 39528); and January 27, 1992 (57 FR 3023). 
This Onshore Order supplements regulations at: 43 CFR 3162.3-1, 
Drilling applications and plans; 3162.3-4, Well abandonment; 3162.4-1, 
Well records and reports; 3162.4-2, Samples, tests, and surveys; 
3162.5-1, Environmental obligations; 3162.5-2, Control of wells; 
3162.5-3, Safety precautions.
    Onshore Order 6--Hydrogen Sulfide Operations, published November 
23, 1990 (55 FR 48958); revised January 17, 1992 (57 FR 2039 and 57 FR 
2136); and February 12, 1992 (57 FR 5211). This Onshore Order 
supplements regulations at: 43 CFR 3162.1, General requirements; 
3162.5-1, Environmental obligations; 3162.5-2, Control of wells; and 
3162.5-3, Safety precautions.
    Onshore Order 7--Disposal of Produced Water, published September 8, 
1993 (58 FR 47354); revised November 2, 1993 (58 FR 58505). This 
Onshore Order supplements the regulations at 43 CFR 3162.5-1, 
Environmental obligations.
    Several years ago, the Office of the Federal Register (OFR) 
informed the BLM that it would no longer allow the BLM to revise the 
existing Onshore Orders unless the agency codified the Orders in the 
CFR. The OFR cited as its justification the Federal Register Act (44 
U.S.C. 1510), which requires documents of general applicability and 
legal effect to be codified in the CFR.
    As a result, when the BLM made major revisions to three of the 
Onshore Orders in 2016, it codified the Orders in the CFR after 
publishing proposed and final rules for each. Those three Onshore 
Orders were: Onshore Order 3--Site Security; Onshore Order 4--
Measurement of Oil; and Onshore Order 5--Measurement of Gas.\1\
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    \1\ On November 17, 2016, the BLM published in the Federal 
Register three final rules: (1) ``Onshore Oil and Gas Operations; 
Federal and Indian Oil and Gas Leases; Site Security'' (81 FR 
81365), codified at 43 CFR part 3170, subparts 3170 and 3173; (2) 
``Onshore Oil and Gas Operations; Federal and Indian Oil and Gas 
Leases; Measurement of Oil'' (81 FR 81462), codified at 43 CFR part 
3170, subpart 3174; and (3) ``Onshore Oil and Gas Operations; 
Federal and Indian Oil and Gas Leases; Measurement of Gas'' (81 FR 
81516), codified at 43 CFR part 3170, subpart 3175.
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    This final rule codifies the remaining four Onshore Orders without 
making any substantive changes to their content. The only changes made 
to the four Onshore Orders pertain to formatting, such as adding new 
section and paragraph designations, so that the Orders conform to the 
OFR's Document Drafting Handbook requirements. This final codification 
rule also includes a new section at 43 CFR 3176.11 to reflect the 
incorporation by reference (IBR) requirements of the Office of the 
Federal Register consistent with 5 U.S.C. 552(a) and 1 CFR part 51. The 
IBR section does not alter the substance of the Onshore Orders 
themselves.
    All of the materials that the BLM is incorporating by reference are 
available for inspection at all BLM offices with jurisdiction over oil 
and gas activities. Contact the BLM at: Office of Energy, Minerals, and 
Realty Management, 1849 C Street Northwest, Washington, DC 20240; 
telephone 202-208-3801; email Ben Gruber at [email protected]; website 
www.blm.gov/programs/energy-and-minerals/oil-and-gas.
    The American National Standards Institute (ANSI) materials should 
be available for inspection at ANSI, 25 West 43rd St, 4th floor, New 
York., NY 10036; telephone: 212-642-4980; email: [email protected]; 
website: www.ansi.org. If the ANSI material is not available from 
document resellers, contact the BLM to obtain a copy.
    The American Petroleum Institute (API) materials are available for 
inspection and purchase at API, 200 Massachusetts Avenue NW, Suite 
1100, Washington, DC 20001; telephone: 202-682-8000; email: 
[email protected]; website: www.api.org. API also offers free, read-only 
access to some of the material at http://publications.api.org.
    The material published by the Association for Materials Protection 
and Performance (AMPP), formerly known as NACE International, is 
available from AMPP, 15835 Park Ten Place, Houston, TX 77084; 
telephone: 1-800-797-6223; website: www.ampp.org.

[[Page 39515]]

    The following describes the ANSI, API, and AMPP standards that the 
BLM is incorporating by reference into this rule.
     ANSI Standard Z88.2-1992 for Respiratory Protection, 
Approved August 6, 1992 (``ANSI Z88.2-1992''). This standard sets forth 
accepted practices for respirator users. It provides information and 
guidance on the proper selection, use, and care of respirators, and 
contains requirements for establishing and regulating respirator 
programs.
     API Recommended Practice 49--Recommended Practice for 
Drilling and Well Servicing Operations Involving Hydrogen Sulfide; 
Third Edition, May 2001; Reaffirmed, January 2013 (``API RP 49''). 
These recommendations apply to oil and gas well drilling and servicing 
operations that involve hydrogen sulfide, including well drilling, 
completion, servicing, workover, downhole maintenance, and plug and 
abandonment procedures conducted with hydrogen sulfide present in the 
fluids being handled.
     ANSI/NACE MR0175-2021/ISO 15156-1:2020; Petroleum and 
natural gas industries--Materials for use in H2S-containing 
environments in oil and gas production; Part 1: General principles for 
selection of cracking-resistant materials; Fourth Edition, Approved 
September 21, 2022 (``NACE MR 0175-2021''). This standard provides 
requirements and recommendations for the selection and qualification of 
metallic minerals for service in equipment used in oil and gas 
production and in natural-gas sweetening plants in H2S-
containing environments.
    The BLM may consider making substantive changes to the four Onshore 
Orders in the future but would do so through notice and comment 
rulemakings. This final rule to codify the remaining Onshore Orders is 
a proactive measure to facilitate future amendments. Because these four 
Onshore Orders were duly promulgated through prior notice-and-comment 
rulemakings, and this final rule does not change them, it is 
appropriate that the BLM codify the orders in the CFR as a final rule 
without any further public comment.

II. Discussion of Final Rule

    This final rule codifies existing Onshore Orders 1, 2, 6, and 7 in 
their entirety. Oil and gas operators have been following these 
regulations for many years. They are not new. Only the section and 
paragraph designations have been changed to conform with CFR style 
requirements. Technical diagrams and figures that are a part of the 
four existing Onshore Orders are included in this final rule as 
appendices.
    The four Onshore Orders will now be located in 43 CFR part 3170--
Onshore Oil and Gas Production. The Onshore Order 1 regulations will 
appear under subpart 3171--Approval of Operations; Onshore Order 2 
under subpart 3172--Drilling Operations on Federal and Indian Oil and 
Gas Leases; Onshore Order 6 under subpart 3176--Hydrogen Sulfide 
Operations; and Onshore Order 7 under subpart 3177--Disposal of 
Produced Water.
    Subpart 3171 describes the procedure for filing Applications for 
Permit to Drill and required approvals of subsequent well operations 
and other lease operations. Subpart 3172 provides the requirements and 
standards for drilling and abandonment operations. Subpart 3176 
provides the requirements and standards for conducting oil and gas 
operations in an environment known or expected to contain hydrogen 
sulfide gas (H2S). Subpart 3177 provides the methods and 
approvals necessary to dispose of produced water associated with oil 
and gas operations.
    Subparts 3172, 3176, and 3177 identify violations, corrective 
actions, normal abatement periods, and enforcement actions that may 
result if violations of the associated requirements are not abated in a 
timely manner.
    This rule removes the table located in 43 CFR 3164.1 that lists the 
four Onshore Orders that are being codified in this regulation. Since 
the Onshore Orders will now be contained in title 43 of the CFR, this 
table is no longer valid.

III. Procedural Matters

Regulatory Planning and Review (Executive Order 12866)

    This document is not a significant rule, and the Office of 
Management and Budget has not reviewed this final rule under Executive 
Order 12866.
    The BLM has determined that this final rule will not have an annual 
effect on the economy of $100 million or more. It will not adversely 
affect in a material way the economy, a sector of the economy, 
productivity, competition, jobs, the environment, public health or 
safety, or State, local, or tribal governments or communities. The 
final rule merely codifies into the CFR regulations that are already in 
effect.
    This final rule will not create inconsistencies or otherwise 
interfere with an action taken or planned by another agency. This rule 
does not change the relationships of the onshore minerals programs with 
other agencies' actions. These relationships are included in agreements 
and memoranda of understanding that will not change with this rule.
    In addition, this final rule does not materially affect the 
budgetary impact of entitlements, grants, or loan programs, or the 
rights and obligations of their recipients.
    Finally, this final rule will not raise novel legal or policy 
issues. As explained earlier, this final rule simply places into the 
CFR regulations that have been in effect for many years, some dating 
back to 1983.

The Regulatory Flexibility Act

    This final rule will not have a significant economic effect on a 
substantial number of small entities as defined under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.). As a result, a Regulatory 
Flexibility Analysis is not required. The Small Business Administration 
defines small entities as individual, limited partnerships, or small 
companies considered to be at arm's length from the control of any 
parent companies if they meet the following size requirements as 
established for each North American Industry Classification System 
(NAICS) code:
     Crude Petroleum Extraction (NAICS code 211120): 1,250 or 
fewer employees
     Natural Gas Extraction (NAICS code 211130): 1,250 or fewer 
employees
    The Small Business Administration (SBA) would consider many, if not 
most, of the operators with whom the BLM works in the onshore minerals 
programs to be small entities. The BLM notes that this final rule does 
not affect service industries, for which the SBA has a different 
definition of ``small entity.''
    The final rule will not affect a large number of small entities 
because these entities are already subject to, and should be complying 
with, the regulations. This rule merely codifies regulations that have 
been in effect for many years.

The Small Business Regulatory Enforcement Fairness Act

    This final rule is not a ``major rule'' as defined at 5 U.S.C. 
804(2). The final rule will not have an annual effect on the economy 
greater than $100 million; it will not result in major cost or price 
increases for consumers, industries, government agencies, or regions; 
and it will not have significant adverse effects on competition, 
employment, investment, productivity, innovation, or the ability of 
U.S.-based enterprises to compete with foreign-based enterprises.

[[Page 39516]]

Accordingly, a Small Entity Compliance Guide is not required.

Executive Order 13132, Federalism

    This final rule will not have a substantial direct effect on the 
States, on the relationship between the National Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. In accordance with Executive Order 13132, 
the BLM therefore finds that the final rule does not have federalism 
implications, and a federalism assessment is not required.

The Paperwork Reduction Act of 1995

    The Paperwork Reduction Act (PRA) (44 U.S.C. 3501-3521) generally 
provides that an agency may not conduct or sponsor, and not 
withstanding any other provision of law, a person is not required to 
respond to a collection of information, unless it displays a currently 
valid Office of Management and Budget (OMB) control number. Collections 
of information include any request or requirement that persons obtain, 
maintain, retain, or report information to an agency, or disclose 
information to a third party or to the public (44 U.S.C. 3502(3) and 5 
CFR 1320.3(c)). OMB has generally approved the information collection 
requirements contained in this final rule; including the required forms 
3160-3, Application for Permit to Drill or Re-enter, 3160-4, Well 
Completion or Recompletion Report and Log, and 3160-5, Sundry Notices 
and Reports on Wells, under OMB control number 1004-0137.
    The information collection requirements contained in final 43 CFR 
parts 3171, 3172, 3176, and 3177 are consistent with those also 
currently contained in the BLM's regulations at 43 CFR parts 3160 and 
3170 and the existing Onshore Order Nos. 1, 2, 6, and 7. This final 
rule does not change any of these approved information collection 
requirements nor the public burdens associated with those information 
collection requirements; therefore, no information collection request 
has been submitted to OMB in association with this final rule.

Takings Implication Assessment (Executive Order 12630)

    As required by Executive Order 12630, the BLM has determined that 
this final rule will not cause a taking of private property. The BLM 
therefore certifies that this final rule does not represent a 
governmental action capable of interference with constitutionally 
protected property rights.

Civil Justice Reform (Executive Order 12988)

    In accordance with Executive Order 12988, the BLM finds that this 
final rule will not unduly burden the judicial system and meets the 
requirements of sections 3(a) and 3(b)(2) of the Executive order.

The National Environmental Policy Act (NEPA)

    The BLM has determined that this final rule qualifies as an 
administrative, housekeeping action that is categorically excluded from 
environmental review under NEPA pursuant to 43 CFR 46.205 and 
46.210(i). The final rule does not meet any of the 12 criteria for 
exceptions to categorical exclusions listed at 43 CFR 46.215. 
Therefore, neither an environmental assessment nor an environmental 
impact statement is required in connection with the rule (40 CFR 
1501.3).

The Unfunded Mandates Reform Act of 1995

    The BLM has determined that this final rule is not significant 
under the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1501 et seq., 
because it will not result in State, local, private sector, or tribal 
government expenditures of $100 million or more in any one year, 2 
U.S.C. 1532. This rule will not significantly or uniquely affect small 
governments. Therefore, the BLM is not required to prepare a statement 
containing the information required by the Unfunded Mandates Reform 
Act.

Consultation and Coordination With Indian Tribal Governments (Executive 
Order 13175)

    In accordance with Executive Order 13175, the BLM has determined 
that this final rule does not include policies that have tribal 
implications. Specifically, the rule would not have substantial direct 
effects on one or more Indian Tribes. Consequently, the BLM did not use 
the consultation process set forth in section 5 of the Executive order.

Information Quality Act

    In developing this final rule, the BLM did not conduct or use a 
study, experiment, or survey requiring peer review under the 
Information Quality Act (Pub. L. 106-554).

Effects on the Nation's Energy Supply (Executive Order 13211)

    In accordance with Executive Order 13211, the BLM has determined 
that this final rule will not have a significant adverse effect on the 
supply, distribution, or use of energy. It merely codifies regulations 
that have been in effect for many years.

Delegation of Signing Authority

    The action taken herein is pursuant to an existing delegation of 
authority.

List of Subjects in 43 CFR Part 3170

    Administrative practice and procedure, Disposal of produced water, 
Drilling operations, Flaring, Government contracts, Hydrogen sulfide 
operations, Incorporation by reference, Indians-lands, Immediate 
assessments, Mineral royalties, Oil and gas exploration, Oil and gas 
measurement, Public lands--mineral resources, Reporting and record 
keeping requirements, Royalty-free use, Venting.

Laura Daniel-Davis,
Principal Deputy Assistant Secretary, Land and Minerals Management.

43 CFR Chapter II

    For the reasons set out in the preamble, the Bureau of Land 
Management is amending 43 CFR part 3170 as follows:

PART 3170--ONSHORE OIL AND GAS PRODUCTION

0
1. The authority citation for part 3170 continues to read as follows:

    Authority:  25 U.S.C. 396d and 2107; 30 U.S.C. 189, 306, 359, 
and 1751; and 43 U.S.C. 1732(b), 1733, and 1740.


0
2. Add subparts 3171 and 3172 to read as follows:

Subpart 3171--Approval of Operations

Sec.
3171.1 Authority.
3171.2 Purpose.
3171.3 Scope.
3171.4 Definitions.
3171.5 Application for Permit to Drill (APD).
3171.6 Components of a complete APD package.
3171.7 Drilling plan.
3171.8 Surface Use Plan of Operations.
3171.9 Bonding.
3171.10 Operator certification.
3171.11 Onsite inspection.
3171.12 APD posting and processing.
3171.13 Approval of APDs.
3171.14 Valid period of approved APD.
3171.15 Master Development Plans.
3171.16 Waiver from electronic submission requirements.
3171.17 General operating requirements--operator responsibilities.
3171.18 Rights-of-Way and Special Use Authorizations.
3171.19 Operating on lands with non-Federal surface and Federal oil 
and gas.
3171.20 Leases for Indian oil and gas.
3171.21 Subsequent operations and Sundry Notices.
3171.22 Well conversions.

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3171.23 Variances.
3171.24 Waivers, exceptions, or modifications.
3171.25 Abandonment.
3171.26 Appeal procedures.
Appendix A to Subpart 3171--Sample Format for Notice of Staking


Sec.  3171.1  Authority.

    (a) The Secretaries of the Interior and Agriculture have authority 
under various Federal and Indian mineral leasing laws, as defined in 30 
U.S.C. 1702, to manage oil and gas operations. The Secretary of the 
Interior has delegated this authority to the Bureau of Land Management 
(BLM), which has issued onshore oil and gas operating regulations 
codified at 43 CFR part 3160. For leases on Indian lands, the 
delegation to the BLM appears at 25 CFR parts 211, 212, 213, 225, and 
227.
    (b) The Secretary of Agriculture has authority under the Federal 
Onshore Oil and Gas Leasing Reform Act of 1987 (Pub. L. 100-203) 
(Reform Act) to regulate surface disturbing activities conducted 
pursuant to a Federal oil and gas lease on National Forest Service 
(NFS) lands. This authority has been delegated to the Forest Service 
(FS). Its regulatory authority is at 36 CFR chapter II, including, but 
not limited to, part 228, subpart E, part 251, subpart B, and part 261. 
The FS is responsible only for approving and regulating surface 
disturbing activities on NFS lands and appeals related to FS decisions 
or approvals.


Sec.  3171.2  Purpose.

    The purpose of this subpart is to state the application 
requirements for the approval of all proposed oil and gas and service 
wells, certain subsequent well operations, and abandonment.


Sec.  3171.3  Scope.

    This subpart applies to all onshore leases of Federal and Indian 
oil and gas (other than those of the Osage Tribe). It also applies to 
Indian Mineral Development Act agreements. For proposed operations on a 
committed State or fee tract in a federally supervised unit or 
communitized tract, the operator must furnish a copy of the approved 
State permit to the authorized officer of the BLM which will be 
accepted for record purposes.


Sec.  3171.4  Definitions.

    As used in this subpart, the following definitions apply:
    Best Management Practices (BMP) means practices that provide for 
state-of-the-art mitigation of specific impacts that result from 
surface operations. Best Management Practices are voluntary unless they 
have been analyzed as a mitigation measure in the environmental review 
for a Master Development Plan, Application for Permit to Drill (APD), 
Right-of-Way, or other related facility and included as a Condition of 
Approval.
    Blooie line means a discharge line used in conjunction with a 
rotating head in drilling operations when air or gas is used as the 
circulating medium.
    Casual use means activities involving practices that do not 
ordinarily lead to any appreciable disturbance or damage to lands, 
resources, or improvements. This term does not apply to private 
surface. Casual use includes surveying activities.
    Complete APD means that the information in the APD package is 
accurate and addresses all of the requirements of this subpart. The 
onsite inspection verifies important information that is part of the 
APD package and is a critical step in determining if the package is 
complete. Therefore, the onsite inspection must be conducted, and any 
deficiencies identified at the onsite corrected, before the APD package 
can be considered to be complete. While cultural, biological, or other 
inventories and environmental assessments (EA) or environmental impact 
statements (EIS) may be required to approve the APD, they are not 
required before an APD package is considered to be complete.
    (1) The APD package must contain:
    (i) A completed Form 3160-3 (Application for Permit to Drill or 
Reenter) (see 43 CFR 3162.3-1(d));
    (ii) A well plat certified by a registered surveyor with a 
surveyor's original stamp (see Sec.  3171.6(b));
    (iii) A drilling plan (see 43 CFR 3162.3-1(d) and 3171.7);
    (iv) A Surface Use Plan of Operations (see 43 CFR 3162.3-1(d) and 
3171.8);
    (v) Evidence of bond coverage (see 43 CFR 3162.3-1(d) and 3171.9);
    (vi) Operator certification with original signature (see Sec.  
3171.10); and
    (vii) Other information that may be required by order or notice 
(see 43 CFR 3162.3-1(d)(4)).
    (2) The BLM and the surface managing agency, as appropriate, will 
review the APD package and determine that the drilling plan, the 
Surface Use Plan of Operations, and other information that the BLM may 
require (43 CFR 3162.3-1(d)(4)), including the well location plat and 
geospatial databases, completely describe the proposed action.
    Condition of Approval (COA) means a site-specific requirement 
included in an approved APD or Sundry Notice that may limit or amend 
the specific actions proposed by the operator. Conditions of Approval 
minimize, mitigate, or prevent impacts to public lands or other 
resources. Best Management Practices may be incorporated as a Condition 
of Approval.
    Days means all calendar days including holidays.
    Emergency repairs means actions necessary to correct an unforeseen 
problem that could cause or threaten immediate substantial adverse 
impact on public health and safety or the environment.
    Geospatial database means a set of georeferenced computer data that 
contains both spatial and attribute data. The spatial data defines the 
geometry of the object and the attribute data defines all other 
characteristics.
    Indian lands means any lands or interest in lands of an Indian 
tribe or an Indian allottee held in trust by the United States or which 
is subject to a Federal restriction against alienation.
    Indian oil and gas means any oil and gas interest of an Indian 
tribe or on allotted lands where the interest is held in trust by the 
United States or is subject to Federal restrictions against alienation. 
It does not include minerals subject to the provisions of section 3 of 
the Act of June 28, 1906 (34 Stat. 539), but does include oil and gas 
on lands administered by the United States under section 14(g) of 
Public Law 92-203, as amended.
    Master Development Plan means information common to multiple 
planned wells, including drilling plans, Surface Use Plans of 
Operations, and plans for future production.
    National Forest System lands means those Federal lands administered 
by the U.S. Forest Service, such as the National Forests and the 
National Grasslands.
    Onsite inspection means an inspection of the proposed drill pad, 
access road, flowline route, and any associated Right-of-Way or Special 
Use Authorization needed for support facilities, conducted before the 
approval of the APD or Surface Use Plan of Operations and construction 
activities.
    Private surface owner means a non-Federal or non-State owner of the 
surface estate and includes any Indian owner of surface estate not held 
in trust by the United States.
    Reclamation means returning disturbed land as near to its 
predisturbed condition as is reasonably practical.
    Split estate means lands where the surface is owned by an entity or 
person other than the owner of the Federal or Indian oil and gas.
    Surface managing agency means any Federal or State agency having

[[Page 39518]]

jurisdiction over the surface overlying Federal or Indian oil and gas.
    Variance means an approved alternative to a provision or standard 
of an order or Notice to Lessee.


Sec.  3171.5  Application for Permit to Drill (APD).

    An Application for Permit to Drill or Reenter, on Form 3160-3, is 
required for each proposed well, and for reentry of existing wells 
(including disposal and service wells), to develop an onshore lease for 
Federal or Indian oil and gas.
    (a) Where to file. On or after March 13, 2017, the operator must 
file an APD and associated documents using the BLM's electronic 
commerce application for oil and gas permitting and reporting. The 
operator may contact the local BLM Field Office for information on how 
to gain access to the electronic commerce application. Prior to March 
13, 2017, an operator may file an APD and associated documents in the 
BLM Field Office having jurisdiction over the application.
    (b) Early notification. The operator may wish to contact the BLM 
and any applicable surface managing agency, as well as all private 
surface owners, to request an initial planning conference as soon as 
the operator has identified a potential area of development. Early 
notification is voluntary and would precede the Notice of Staking 
option or filing of an APD. It allows the involved surface managing 
agency or private surface owner to apprise the prospective operator of 
any unusual conditions on the lease area. Early notification also 
provides both the surface managing agency or private surface owner and 
the prospective operator with the earliest possible identification of 
seasonal restrictions and determination of potential areas of conflict. 
The prospective operator should have a map of the proposed project 
available for surface managing agency review to determine if a cultural 
or biological inventory or other information may be required. 
Inventories are not the responsibility of the operator.
    (c) Notice of Staking option. (1) Before filing an APD or Master 
Development Plan, the operator may file a Notice of Staking with the 
BLM. The purpose of the Notice of Staking is to provide the operator 
with an opportunity to gather information to better address site-
specific resource concerns while preparing the APD package. This may 
expedite approval of the APD. On or after March 13, 2017, if an 
operator chooses to file a Notice of Staking (NOS), the operator must 
file the NOS using the BLM's electronic commerce application for oil 
and gas permitting and reporting. Attachment I, Sample Format for 
Notice of Staking, provides the information required for the Notice of 
Staking option. Prior to March 13, 2017, an operator may file a Notice 
of Staking in the BLM Field Office having jurisdiction.
    (2) For Federal lands managed by other surface managing agencies, 
the BLM will provide a copy of the Notice of Staking to the appropriate 
surface managing agency office. In Alaska, when a subsistence 
stipulation is part of the lease, the operator must also send a copy of 
the Notice of Staking to the appropriate Borough and/or Native Regional 
or Village Corporation.
    (3) Within 10 days of receiving the Notice of Staking, the BLM or 
the FS will review it for required information and schedule a date for 
the onsite inspection. The onsite inspection will be conducted as soon 
as weather and other conditions permit. The operator must stake the 
proposed drill pad and ancillary facilities, and flag new or 
reconstructed access routes, before the onsite inspection. The staking 
must include a center stake for the proposed well, two reference 
stakes, and a flagged access road centerline. Staking activities are 
considered casual use unless the particular activity is likely to cause 
more than negligible disturbance or damage. Offroad vehicular use for 
the purposes of staking is casual use unless, in a particular case, it 
is likely to cause more than negligible disturbance or damage, or 
otherwise prohibited.
    (4) On non-NFS lands, the BLM will invite the surface managing 
agency and private surface owner, if applicable, to participate in the 
onsite inspection. If the surface is privately owned, the operator must 
furnish to the BLM the name, address, and telephone number of the 
surface owner if known. All parties who attend the onsite inspection 
will jointly develop a list of resource concerns that the operator must 
address in the APD. The operator will be provided a list of these 
concerns either during the onsite inspection or within 7 days of the 
onsite inspection. Surface owner concerns will be considered to the 
extent practical within the law. Failure to submit an APD within 60 
days of the onsite inspection will result in the Notice of Staking 
being returned to the operator.


Sec.  3171.6  Components of a complete APD package.

    Operators are encouraged to consider and incorporate Best 
Management Practices into their APDs because Best Management Practices 
can result in reduced processing times and reduced number of Conditions 
of Approval. An APD package must include the following information that 
will be reviewed by technical specialists of the appropriate agencies 
to determine the technical adequacy of the package:
    (a) A completed Form 3160-3; and
    (b) Operators must include in the APD package a well plat and 
geospatial database prepared by a registered surveyor depicting the 
proposed location of the well and identifying the points of control and 
datum used to establish the section lines or metes and bounds. The 
purpose of this plat is to ensure that operations are within the 
boundaries of the lease or agreement and that the depiction of these 
operations is accurately recorded both as to location (latitude and 
longitude) and in relation to the surrounding lease or agreement 
boundaries (public land survey corner and boundary ties). The 
registered surveyor should coordinate with the cadastral survey 
division of the appropriate BLM State Office, particularly where the 
lands have not been surveyed under the Public Land Survey System.
    (1) The plat and geospatial database must describe the location of 
operations in:
    (i) Geographical coordinates referenced to the National Spatial 
Reference System, North American Datum 1983 or latest edition; and
    (ii) In feet and direction from the nearest two adjacent section 
lines, or, if not within the Rectangular Survey System, the nearest two 
adjacent property lines, generated from the BLM's current Geographic 
Coordinate Data Base.
    (2) The surveyor who prepared the plat must sign it, certifying 
that the location has been staked on the ground as shown on the plat.
    (3) Surveying and staking are necessary casual uses, typically 
involving negligible surface disturbance. The operator is responsible 
for making access arrangements with the appropriate surface managing 
agency (other than the BLM and the FS) or private surface owner. On 
tribal or allotted lands, the operator must contact the appropriate 
office of the Bureau of Indian Affairs (BIA) to make access 
arrangements with the Indian surface owners. In the event that not all 
of the Indian owners consent or may be located, but a majority of those 
who can be located consent, or the owners of interests are so numerous 
that it would be impracticable to obtain their consent and the BIA 
finds that the issuance of the APD will cause no substantive injury to 
the land or any owner thereof, the BIA may approve access. Typical off-
road vehicular use, when conducted in conjunction with these 
activities, is a

[[Page 39519]]

necessary action for obtaining a permit and may be done without advance 
approval from the surface managing agency, except for:
    (i) Lands administered by the Department of Defense;
    (ii) Other lands used for military purposes;
    (iii) Indian lands; or
    (iv) Where more than negligible surface disturbance is likely to 
occur or is otherwise prohibited.
    (4) No entry on split estate lands for surveying and staking should 
occur without the operator first making a good faith effort to notify 
the surface owner. Also, operators are encouraged to notify the BLM or 
the FS, as appropriate, before entering private lands to stake for 
Federal mineral estate locations.


Sec.  3171.7  Drilling plan.

    With each copy of Form 3160-3, the operator must submit to the BLM 
either a drilling plan or reference a previously submitted field-wide 
drilling plan (a drilling plan that can be used for all the wells in a 
field, any differences for specific wells will be described in the APD 
specific to that well). The drilling plans must be in sufficient detail 
to permit a complete appraisal of the technical adequacy of, and 
environmental effects associated with, the proposed project. The 
drilling plan must adhere to the provisions and standards of subpart 
3172 of this part and, if applicable, subpart 3176 of this part and 
must include the following information:
    (a) Names and estimated tops of all geologic groups, formations, 
members, or zones.
    (b) Estimated depth and thickness of formations, members, or zones 
potentially containing usable water, oil, gas, or prospectively 
valuable deposits of other minerals that the operator expects to 
encounter, and the operator's plans for protecting such resources.
    (c) The operator's minimum specifications for blowout prevention 
equipment and diverter systems to be used, including size, pressure 
rating, configuration, and the testing procedure and frequency. Blowout 
prevention equipment must meet the minimum standards outlined in 
subpart 3172 of this part.
    (d) The operator's proposed casing program, including size, grade, 
weight, type of thread and coupling, the setting depth of each string, 
and its condition. The operator must include the minimum design 
criteria, including casing loading assumptions and corresponding safety 
factors for burst, collapse, and tensions (body yield and joint 
strength). The operator must also include the lengths and setting depth 
of each casing when a tapered casing string is proposed. The hole size 
for each well bore section of hole drilled must be included. Special 
casing designs such as the use of coiled tubing or expandable casing 
may necessitate additional information.
    (e) The estimated amount and type(s) of cement expected to be used 
in the setting of each casing string. If stage cementing will be used, 
provide the setting depth of the stage tool(s) and amount and type of 
cement, including additives, to be used for each stage. Provide the 
yield of each cement slurry and the expected top of cement, with 
excess, for each cemented string or stage.
    (f) Type and characteristics of the proposed circulating medium or 
mediums proposed for the drilling of each well bore section, the 
quantities and types of mud and weighting material to be maintained, 
and the monitoring equipment to be used on the circulating system. The 
operator must submit the following information when air or gas drilling 
is proposed:
    (1) Length, size, and location of the blooie line, including the 
gas ignition and dust suppression systems;
    (2) Location and capacity of the compressor equipment, including 
safety devices, describe the distance from the well bore, and location 
within the drill site; and
    (3) Anticipated amounts, types, and other characteristics as 
defined in this section, of the stand by mud or kill fluid and 
associated circulating equipment.
    (g) The testing, logging, and coring procedures proposed, including 
drill stem testing procedures, equipment, and safety measures.
    (h) The expected bottom-hole pressure and any anticipated abnormal 
pressures, temperatures, or potential hazards that the operator expects 
to encounter, such as lost circulation and hydrogen sulfide (see 
subpart 3176 of this part). A description of the operator's plans for 
mitigating such hazards must be included.
    (i) Any other facets of the proposed operation that the operator 
would like the BLM to consider in reviewing the application. Examples 
include, but are not limited to:
    (1) For directional wells, proposed directional design, plan view, 
and vertical section in true vertical and measured depths;
    (2) Horizontal drilling; and
    (3) Coil tubing operations.


Sec.  3171.8  Surface Use Plan of Operations.

    (a) The Surface Use Plan of Operations must:
    (1) Describe the access road(s) and drill pad, the construction 
methods that the operator plans to use, and the proposed means for 
containment and disposal of all waste materials;
    (2) Provide for safe operations, adequate protection of surface 
resources, groundwater, and other environmental components;
    (3) Include adequate measures for stabilization and reclamation of 
disturbed lands:
    (4) Describe any Best Management Practices the operator plans to 
use; and
    (5) Where the surface is privately owned, include a certification 
of Surface Access Agreement or an adequate bond, as described in Sec.  
3171.19.
    (b) All maps that are included in the Surface Use Plan of 
Operations must be of a scale no smaller than 1:24,000, unless 
otherwise stated in paragraph (e) of this section. Geospatial vector 
and raster data must include appropriate attributes and metadata. 
Georeferenced raster images must be from the same source as hardcopy 
plats and maps submitted in the APD package. All proposed on-lease 
surface disturbance must be surveyed and staked as described in 
paragraphs (e)(1) through (12) of this section, including:
    (1) The well location;
    (2) Two 200-foot (61-meter) directional reference stakes;
    (3) The exterior pad dimensions;
    (4) The reserve pit;
    (5) Cuts and fills;
    (6) Outer limits of the area to be disturbed (catch points); and
    (7) Any off-location facilities.
    (c) Proposed new roads require centerline flagging with stakes 
clearly visible from one to the next. In rugged terrain, cut and fill 
staking and/or slope staking of proposed new access roads and locations 
for ancillary facilities that may be necessary, as determined by the 
BLM or the FS.
    (d) The onsite inspection will not occur until the required 
surveying and staking is complete, and any new access road(s) have been 
flagged, unless a variance is first granted under Sec.  3171.23.
    (e) Information required by the Surface Use Plan of Operations may 
be shown on the same map if it is appropriately labeled or on separate 
diagrams or maps and must include the following:
    (1) Existing roads. The operator must submit a legible map such as 
a highway or county road, United States Geological Survey (USGS) 
topographic, Alaska Borough, or other such map that shows the proposed 
well site and access route to the proposed well in relation to a town, 
village, or other locatable public access point.

[[Page 39520]]

    (i) The operator must improve or maintain existing roads in a 
condition the same as or better than before operations began. The 
operator must provide any plans for improvement and/or maintenance of 
existing roads. The information provided by the operator for 
construction and use of roads will be used by the BLM for any Right-of-
Way application, as described in Sec.  3171.18. The operator may use 
existing terrain and two-track trails, where appropriate, to assure 
environmental protection. The operator should consider using Best 
Management Practices in improving or maintaining existing roads.
    (ii) The operator may use existing roads under the jurisdiction of 
the FS for access if they meet the transportation objectives of the FS. 
When access involves the use of existing roads, the FS may require that 
the operator contribute to road maintenance. This is usually authorized 
by a Road Use Permit or a joint road use agreement. The FS will charge 
the operator a pro rata share of the costs of road maintenance and 
improvement, based upon the anticipated use of the road.
    (2) New or reconstructed access roads. The operator must identify 
on a map all permanent and temporary access roads that it plans to 
construct or reconstruct in connection with the drilling of the 
proposed well. Locations of all existing and proposed road structures 
(culverts, bridges, low water crossings, etc.) must be shown. The 
proposed route to the proposed drill site must be shown, including 
distances from the point where the access route exits established 
roads. All permanent and temporary access roads must be located and 
designed to meet the applicable standards of the appropriate surface 
managing agency, and be consistent with the needs of the operator. The 
operator should consider using Best Management Practices in designing 
and constructing roads. The operator must design roads based upon the 
class or type of road, the safety requirements, traffic 
characteristics, environmental conditions, and the vehicles the road is 
expected to carry. The operator must describe for all road construction 
or reconstruction:
    (i) Road width;
    (ii) Maximum grade;
    (iii) Crown design;
    (iv) Turnouts;
    (v) Drainage and ditch design;
    (vi) On-site and off-site erosion control;
    (vii) Revegetation of disturbed areas;
    (viii) Location and size of culverts and/or bridges;
    (ix) Fence cuts and/or cattleguards;
    (x) Major cuts and fills;
    (xi) Source and storage of topsoil; and
    (xii) Type of surfacing materials, if any, that will be used.
    (3) Location of existing wells. The operator must include a map and 
may include a geospatial database that includes all known wells, 
regardless of the well status (producing, abandoned, etc.), within a 
one-mile radius of the proposed location.
    (4) Location of existing and/or proposed production facilities. The 
operator must include a map or diagram of facilities planned either on 
or off the well pad that shows, to the extent known or anticipated, the 
location of all production facilities and lines likely to be installed 
if the well is successfully completed for production.
    (i) The map or diagram and optional geospatial database must show 
and differentiate between proposed and existing flow lines, overhead 
and buried power lines, and water lines. If facilities will be located 
on the well pad, the information should be consistent with the layout 
provided in paragraph (e)(9) of this section.
    (ii) The operator must show the dimensions of the facility layouts 
for all new construction. This information may be used by the BLM or 
the FS for Right- of-Way or Special Use Authorization application 
information, as specified in Sec.  3171.18.
    (iii) If the operator has not developed information regarding 
production facilities, it may defer submission of that information 
until a production well is completed, in which case the operator will 
follow the procedures in Sec.  3171.21. However, for purposes of the 
National Environmental Policy Act (NEPA) analysis, the BLM or the FS 
will need a reasonable estimate of the facilities to be employed.
    (5) Location and types of water supply. Information concerning 
water supply, such as rivers, creeks, springs, lakes, ponds, and wells, 
may be shown by quarter-quarter section on a map or plat, or may be 
described in writing. The operator must identify the source, access 
route, and transportation method for all water anticipated for use in 
drilling the proposed well. The operator must describe any newly 
constructed or reconstructed access roads crossing Federal or Indian 
lands that are needed to haul the water as provided in paragraph (e)(2) 
of this section. The operator must indicate if it plans to drill a 
water supply well on the lease and, if so, the operator must describe 
the location, construction details, and expected production 
requirements, including a description of how water will be transported 
and procedures for well abandonment.
    (6) Construction materials. The operator must state the character 
and intended use of all construction materials, such as sand, gravel, 
stone, and soil material. The proposed source must be shown on a 
quarter-quarter section of a map or plat or in a written description.
    (7) Methods for handling waste. The Surface Use Plan of Operations 
must contain a written description of the methods and locations 
proposed for safe containment and disposal of each type of waste 
material (e.g., cuttings, garbage, salts, chemicals, sewage, etc.) that 
results from drilling the proposed well. The narrative must include 
plans for the eventual disposal of drilling fluids and any produced oil 
or water recovered during testing operations. The operator must 
describe plans for the construction and lining, if necessary, of the 
reserve pit.
    (8) Ancillary facilities. The operator must identify on a map the 
location and construction methods and materials for all anticipated 
ancillary facilities such as camps, airstrips, and staging areas. The 
operator must stake on the ground the approximate center of proposed 
camps and the centerline of airstrips. If the ancillary facilities are 
located off- lease, depending on surface managing agency policy, the 
BLM or the FS may require the operator to obtain an additional 
authorization, such as a Right-of-Way or Special Use Authorization.
    (9) Well site layout. A diagram of the well site layout must have 
an arrow indicating the north direction. Diagrams with cuts and fills 
must be surveyed, designed, drawn, digitized, and certified by licensed 
professional surveyors or engineers.
    (i) The operator must submit a plat of a scale of not less than 1 
inch = 50 feet showing the location and orientation of:
    (A) The proposed drill pad;
    (B) Reserve pit/blooie line/flare pit location;
    (C) Access road entry points and their approximate location with 
respect to topographic features and with cross section diagrams of the 
drill pad; and
    (D) The reserve pit showing all cuts; and fills and the relation to 
topography.
    (ii) The plat must also include the approximate proposed location 
and orientation of the:
    (A) Drilling rig;
    (B) Dikes and ditches to be constructed; and
    (C) Topsoil and/or spoil material stockpiles.
    (10) Plans for surface reclamation. The operator must submit a plan 
for the surface reclamation or stabilization of all disturbed areas. 
This plan must

[[Page 39521]]

address interim (during production) reclamation for the area of the 
well pad not needed for production, as well as final abandonment of the 
well location.
    (i) Such plans must include, as appropriate:
    (A) Configuration of the reshaped topography;
    (B) Drainage systems;
    (C) Segregation of spoil materials (stockpiles);
    (D) Surface disturbances;
    (E) Backfill requirements;
    (F) Proposals for pit/sump closures;
    (G) Redistribution of topsoil;
    (H) Soil treatments;
    (I) Seeding or other steps to reestablish vegetation;
    (J) Weed control; and
    (K) Practices necessary to reclaim all disturbed areas, including 
any access roads and pipelines.
    (ii) The operator may amend this reclamation plan at the time of 
abandonment. Further details for reclamation are contained in Sec.  
3171.25.
    (11) Surface ownership. The operator must indicate (in a narrative) 
the surface ownership at the well location, and of all lands crossed by 
roads that the operator plans to construct or upgrade, including, if 
known, the name of the agency or owner, phone number, and address. The 
operator must certify that they have provided a copy of the Surface Use 
Plan of Operations required in this section to the private surface 
owner of the well site location, if applicable, or that they made a 
good faith effort if unable to provide the document to the surface 
owner.
    (12) Other information. The operator must include other information 
required by applicable orders and notices (43 CFR 3162.3-1(d)(4)). When 
an integrated pest management program is needed for weed or insect 
control, the operator must coordinate plans with State or local 
management agencies and include the pest management program in the 
Surface Use Plan of Operations. The BLM also encourages the operator to 
submit any additional information that may be helpful in processing the 
application.


Sec.  3171.9  Bonding.

    (a) Most bonding needs for oil and gas operations on Federal leases 
are discussed in 43 CFR part 3100, subpart 3104. The operator must 
obtain a bond in its own name as principal, or a bond in the name of 
the lessee or sublessee. If the operator uses the lessee or sublessee's 
bond, the operator must furnish a rider (consent of surety and 
principal) that includes the operator under the coverage of the bond. 
The operator must specify on the APD, Form 3160-3, the type of bond and 
bond number under which the operations will be conducted.
    (1) For Indian oil and gas, the appropriate provisions at 25 CFR 
chapter I, subchapter I, govern bonding.
    (2) Under the regulations at 43 CFR 3104.5 and 36 CFR 228.109, the 
BLM or the FS may require additional bond coverage for specific APDs. 
Other factors that the BLM or the FS may consider include:
    (i) History of previous violations;
    (ii) Location and depth of wells;
    (iii) The total number of wells involved;
    (iv) The age and production capability of the field; and
    (v) Unique environmental issues.
    (3) These bonds may be in addition to any statewide, nationwide, or 
separate lease bond already applicable to the lease. In determining the 
bond amount, the BLM may consider impacts of activities on both Federal 
and non-Federal lands required to develop the lease that impact lands, 
waters, and other resources off the lease.
    (4) Separate bonds may be required for associated Rights-of-Way 
and/or Special Use Authorizations that authorize activities not covered 
by the approved APD.
    (b) On Federal leases, operators may request a phased release of an 
individual lease bond. The BLM will grant this reduction after 
reclamation of some portion of the lease only if the operator:
    (1) Has satisfied the terms and conditions in the plan for surface 
reclamation for that particular operation; and
    (2) No longer has any down-hole liability.
    (c) If appropriate, the BLM may reduce the bond in the amount 
requested by the operator or appropriate surface managing agency. The 
FS also may reduce bonds it requires (but not the BLM-required bonds). 
The BLM and the FS will base the amount of the bond reduction on a 
calculation of the sum that is sufficient to cover the remaining 
operations (including royalty payments) and abandonment (including 
reclamation) as authorized by the Surface Use Plan of Operations.


Sec.  3171.10  Operator certification.

    (a) The operator must include its name, address, and telephone 
number, and the same information for its field representative, in the 
APD package.
    (b) The following certification must carry the operator's original 
signature or be submitted to the BLM using the BLM's electronic 
reporting system:

    I hereby certify that I, or someone under my direct supervision, 
have inspected the drill site and access route proposed herein; that 
I am familiar with the conditions which currently exist; that I have 
full knowledge of state and Federal laws applicable to this 
operation; that the statements made in this APD package are, to the 
best of my knowledge, true and correct; and that the work associated 
with the operations proposed herein will be performed in conformity 
with this APD package and the terms and conditions under which it is 
approved. I also certify that I, or the company I represent, am 
responsible for the operations conducted under this application. 
These statements are subject to the provisions of 18 U.S.C. 1001 for 
the filing of false statements.

Executed this _ day of ___, 20__.

Name-------------------------------------------------------------------
Position---------------------------------------------------------------
Title------------------------------------------------------------------
Address----------------------------------------------------------------
Telephone--------------------------------------------------------------
Field representative (if not above signatory)--------------------------
Address (if different from above)--------------------------------------
Telephone (if different from above)------------------------------------
Email (optional)-------------------------------------------------------

    (c) Agents not directly employed by the operator must submit a 
letter from the operator authorizing that agent to act or file this 
application on their behalf.


Sec.  3171.11  Onsite inspection.

    The onsite inspection must be conducted before the APD will be 
considered complete.


Sec.  3171.12  APD posting and processing.

    (a) Posting. The BLM and the Federal surface managing agency, if 
other than the BLM, must provide at least 30 days public notice before 
the BLM may approve an APD or Master Development Plan on a Federal oil 
and gas lease. Posting is not required for an APD for an Indian oil and 
gas lease or agreement.
    (1) The BLM will post information about the APD or Notice of 
Staking for Federal oil and gas leases to the internet and in an area 
of the BLM Field Office having jurisdiction that is readily accessible 
to the public. Posting to the internet under this provision will not be 
required until after March 13, 2017. If the surface is managed by a 
Federal agency other than the BLM, that agency also is required to post 
the notice for at least 30 days. This would include the BIA where the 
surface is held in trust but the mineral estate is federally owned. The 
posting is for informational purposes only and is not an appealable 
decision. The purpose of the posting is to give any interested party 
notification that a Federal approval of mineral operations has been 
requested. The BLM or the FS will not post confidential information.

[[Page 39522]]

    (2) Reposting of the proposal may be necessary if the posted 
location of the proposed well is:
    (i) Moved to a different quarter-quarter section;
    (ii) Moved more than 660 feet for lands that are not covered by a 
Public Land Survey; or
    (iii) If the BLM or the FS determine that the move is substantial.
    (b) Processing. The timeframes established in this paragraph apply 
to both individual APDs and to the multiple APDs included in Master 
Development Plans and to leases of Indian minerals as well as leases of 
Federal minerals. If there is enough information to begin processing 
the application, the BLM (and the FS if applicable) will process it up 
to the point that missing information or uncorrected deficiencies 
render further processing impractical or impossible.
    (1) Within 10 days of receiving an application, the BLM (in 
consultation with the FS if the application concerns NFS lands) will 
notify the operator as to whether or not the application is complete. 
The BLM will request additional information and correction of any 
material submitted, if necessary, in the 10-day notification. If an 
onsite inspection has not been performed, the applicant will be 
notified that the application is not complete. Within 10 days of 
receiving the application, the BLM, in coordination with the operator 
and surface managing agency, including the private surface owner in the 
case of split estate minerals, will schedule a date for the onsite 
inspection (unless the onsite inspection has already been conducted as 
part of a Notice of Staking). The onsite inspection will be held as 
soon as practicable based on participants' schedules and weather 
conditions. The operator will be notified at the onsite inspection of 
any additional deficiencies that are discovered during the inspection. 
The operator has 45 days after receiving notice from the BLM to provide 
any additional information necessary to complete the APD, or the APD 
may be returned to the operator.
    (2) Within 30 days after the operator has submitted a complete 
application, including incorporating any changes that resulted from the 
onsite inspection, the BLM will:
    (i) Approve the application, subject to reasonable Conditions of 
Approval, if the appropriate requirements of the NEPA, National 
Historic Preservation Act, Endangered Species Act, and other applicable 
law have been met and, if on NFS lands, the FS has approved the Surface 
Use Plan of Operations;
    (ii) Notify the operator that it is deferring action on the permit; 
or
    (iii) Deny the permit if it cannot be approved and the BLM cannot 
identify any actions that the operator could take that would enable the 
BLM to issue the permit or the FS to approve the Surface Use Plan of 
Operations, if applicable.
    (3) The notice of deferral in paragraph (b)(2)(ii) of this section 
must specify:
    (i) Any action the operator could take that would enable the BLM 
(in consultation with the FS if applicable) to issue a final decision 
on the application. The FS will notify the applicant of any action the 
applicant could take that would enable the FS to issue a final decision 
on the Surface Use Plan of Operations on NFS lands. Actions may 
include, but are not limited to, assistance with:
    (A) Data gathering; and
    (B) Preparing analyses and documents.
    (ii) If applicable, a list of actions that the BLM or the FS need 
to take before making a final decision on the application, including 
appropriate analysis under NEPA or other applicable law and a schedule 
for completing these actions.
    (4) The operator has 2 years from the date of the notice under 
paragraph (b)(3)(i) of this section to take the action specified in the 
notice. If the appropriate analyses required by NEPA, National Historic 
Preservation Act, Endangered Species Act, and other applicable laws 
have been completed, the BLM (and the FS if applicable), will make a 
decision on the permit and the Surface Use Plan of Operations within 10 
days of receiving a report from the operator addressing all of the 
issues or actions specified in the notice under paragraph (b)(3)(i) of 
this section and certifying that all required actions have been taken. 
If the operator has not completed the actions specified in the notice 
within 2 years from the operator's receipt of the notice under 
paragraph (b)(3)(i), the BLM will deny the permit.
    (5) For APDs on NFS lands, the decision to approve a Surface Use 
Plan of Operations or Master Development Plan may be subject to FS 
appeal procedures. The BLM cannot approve an APD until the appeal of 
the Surface Use Plan of Operations is resolved.


Sec.  3171.13  Approval of APDs.

    (a) The BLM has the lead responsibility for completing the 
environmental review process, except in the case of NFS lands.
    (1) The BLM cannot approve an APD or Master Development Plan until 
the requirements of certain other laws and regulations including NEPA, 
the National Historic Preservation Act, and the Endangered Species Act 
have been met. The BLM must document that the needed reviews have been 
adequately conducted. In some cases, operators conduct these reviews, 
but the BLM remains responsible for their scope and content and makes 
its own evaluation of the environmental issues, as required by 40 CFR 
1506.5(b).
    (2) The approved APD will contain Conditions of Approval that 
reflect necessary mitigation measures. In accordance with 43 CFR 
3101.1-2 and 36 CFR 228.107, the BLM or the FS may require reasonable 
mitigation measures to ensure that the proposed operations minimize 
adverse impacts to other resources, uses, and users, consistent with 
granted lease rights. The BLM will incorporate any mitigation 
requirements, including Best Management Practices, identified through 
the APD review and appropriate NEPA and related analyses, as Conditions 
of Approval to the APD.
    (3) The BLM will establish the terms and Conditions of Approval for 
any associated Right-of-Way when the application is approved.
    (b) For NFS lands, the FS will establish the terms and Conditions 
of Approval for both the Surface Use Plan of Operations and any 
associated Surface Use Authorization. On NFS lands the FS has principal 
responsibility for compliance with NEPA, the National Historic 
Preservation Act, and the Endangered Species Act, but the BLM should be 
a cooperating or co-lead agency for this purpose and adopt the analysis 
as the basis for its decision. After the FS notifies the BLM it has 
approved a Surface Use Plan of Operations on NFS lands, the BLM must 
approve the APD before the operator may begin any surface-disturbing 
activity.
    (c) On Indian lands, BIA has responsibility for approving Rights-
of-Way.
    (d) In the case of Indian lands, the BLM may be a cooperating or 
co-lead agency for NEPA compliance or may adopt the NEPA analysis 
prepared by the BIA (516 Department of the Interior Manual (DM) 3).


Sec.  3171.14  Valid period of approved APD.

    (a) An APD approval is valid for 2 years from the date that it is 
approved, or until lease expiration, whichever occurs first. If the 
operator submits a written request before the expiration of the 
original approval, the BLM, in coordination with the FS, as appropriate 
may extend the APD's validity for up to 2 additional years.

[[Page 39523]]

    (b) The operator is responsible for reclaiming any surface 
disturbance that resulted from its actions, even if a well was not 
drilled.


Sec.  3171.15  Master Development Plans.

    (a) An operator may elect to submit a Master Development Plan 
addressing two or more APDs that share a common drilling plan, Surface 
Use Plan of Operations, and plans for future development and 
production. Submitting a Master Development Plan facilitates early 
planning, orderly development, and the cumulative effects analysis for 
all the APDs expected to be drilled by an operator in a developing 
field. Approval of a Master Development Plan serves as approval of all 
of the APDs submitted with the Plan. Processing of a Master Development 
Plan follows the procedures in Sec.  3171.12(b).
    (b) After the Master Development Plan is approved, subsequent APDs 
can reference the Master Development Plan and be approved using the 
NEPA analysis for the Master Development Plan, absent substantial 
deviation from the Master Development Plan previously analyzed or 
significant new information relevant to environmental effects. 
Therefore, an approved Master Development Plan results in timelier 
processing of subsequent APDs. Each subsequent proposed well must have 
a survey plat and an APD (Form 3160-3) that references the Master 
Development Plan and any specific variations for that well.


Sec.  3171.16  Waiver from electronic submission requirements.

    The operator may request a waiver from the electronic submission 
requirement for an APD or Notice of Staking if compliance would cause 
hardship or the operator is unable to file these documents 
electronically. In the request, the operator must explain the reason(s) 
that prevent its use of the electronic system, plans for complying with 
the electronic submission requirement, and a timeframe for compliance. 
If the request applies to a particular set of APDs or Notices of 
Staking, then the request must identify the APDs or Notices of Staking 
to which the waiver applies. The waiver request is subject to BLM 
approval. If the request does not specify a particular set of APDs or 
Notices of Staking, then the waiver will apply to all submissions made 
by the operator during the compliance timeframe included as part of the 
BLM's waiver approval. The BLM will not consider an APD or Notice of 
Staking that the operator did not submit through the electronic system, 
unless the BLM approves a waiver.


Sec.  3171.17  General operating requirements--operator 
responsibilities.

    (a) In the APD package, the operator must describe or show, as set 
forth in this subpart, the procedures, equipment, and materials to be 
used in the proposed operations. The operator must conduct operations 
to minimize adverse effects to surface and subsurface resources, 
prevent unnecessary surface disturbance, and conform with currently 
available technology and practice. While appropriate compliance with 
certain statutes, such as NEPA, the National Historic Preservation Act, 
and the Endangered Species Act, are Federal responsibilities, the 
operator may choose to conduct inventories and provide documentation to 
assist the BLM or the surface managing agency to meet the requirements 
of this paragraph (a). The inventories and other work may require 
entering the lease and adjacent lands before approval of the APD. As in 
staking and surveying, the operator should make a good faith effort to 
contact the surface managing agency or surface owner before entry upon 
the lands for these purposes.
    (b) The operator cannot commence either drilling operations or 
preliminary construction activities before the BLM's approval of the 
APD. A copy of the approved APD and any Conditions of Approval must be 
available for review at the drill site. Operators are responsible for 
their contractor and subcontractor's compliance with the requirements 
of the approved APD and/or Surface Use Plan of Operations. Drilling 
without approval or causing surface disturbance without approval is a 
violation of 43 CFR 3162.3-1(c) and is subject to a monetary assessment 
under 43 CFR 3163.1(b)(2).
    (c) The operator must comply with the provisions of the approved 
APD and applicable laws, regulations, and Notices to Lessees, 
including, but not limited to, those that address the issues described 
in paragraphs (c)(1) through (5) of this section.
    (1) Cultural and historic resources. If historic or archaeological 
materials are uncovered during construction, the operator must 
immediately stop work that might further disturb such materials, 
contact the BLM and if appropriate, the FS or other surface managing 
agency. The BLM or the FS will inform the operator within 7 days after 
the operator contacted the BLM as to whether the materials appear 
eligible for listing on the National Register of Historic Places.
    (i) If the operator decides to relocate operations to avoid further 
costs to mitigate the site, the operator remains responsible for 
recording the location of any historic or archaeological resource that 
are discovered as a result of the operator's actions. The operator also 
is responsible for stabilizing the exposed cultural material if the 
operator created an unstable condition that must be addressed 
immediately. The BLM, the FS, or other appropriate surface managing 
agency will assume responsibility for evaluation and determination of 
significance related to the historic or archaeological site.
    (ii) If the operator does not relocate operations, the operator is 
responsible for mitigation and stabilization costs and the BLM, the FS, 
or appropriate surface managing agency will provide technical and 
procedural guidelines for conducting mitigation. The operator may 
resume construction operations when the BLM or the FS verifies that the 
operator has completed the required mitigation.
    (iii) Relocation of activities may subject the proposal to 
additional environmental review. Therefore, if the presence of such 
sites is suspected, the operator may want to submit alternate locations 
for advance approval before starting construction.
    (2) Endangered Species Act. To comply with the Endangered Species 
Act, as amended (16 U.S.C. 1531 et seq.), and its implementing 
regulations in 50 CFR chapter I, the operator must conduct all 
operations such that all operations avoid a ``take'' of listed or 
proposed threatened or endangered species and their critical habitats.
    (3) Surface protection. Except as otherwise provided in an approved 
Surface Use Plan of Operations, the operator must not conduct 
operations in areas subject to mass soil movement, riparian areas, 
floodplains, lakeshores, and/or wetlands. The operator also must take 
measures to minimize or prevent erosion and sediment production. Such 
measures may include, but are not limited to:
    (i) Avoiding steep slopes and excessive land clearing when siting 
structures, facilities, and other improvements; and
    (ii) Temporarily suspending operations when frozen ground, thawing, 
or other weather-related conditions would cause otherwise avoidable or 
excessive impacts.
    (4) Safety measures. The operator must maintain structures, 
facilities, improvements, and equipment in a safe condition in 
accordance with the approved APD. The operator must also take 
appropriate measures as specified in Notices to Lessees to protect the

[[Page 39524]]

public from any hazardous conditions resulting from operations.
    (i) In the event of an emergency, the operator may take immediate 
action without prior surface managing agency approval to safeguard life 
or to prevent significant environmental degradation. The BLM or the FS 
must receive notification of the emergency situation and the remedial 
action taken by the operator as soon as possible, but not later than 24 
hours after the emergency occurred. If the emergency only affected 
drilling operations and had no surface impacts, only the BLM must be 
notified.
    (ii) If the emergency involved surface resources on other surface 
managing agency lands, the operator should also notify the surface 
managing agency and private surface owner within 24 hours.
    (iii) Upon conclusion of the emergency, the BLM or the FS, where 
appropriate, will review the incident and take appropriate action.
    (5) Completion reports. Within 30 days after the well completion, 
the lessee or operator must submit to the BLM two copies of a completed 
Form 3160-4, Well Completion or Recompletion Report and Log. Well logs 
may be submitted to the BLM in an electronic format such as ``.LAS'' 
format. Surface and bottom-hole locations must be in latitude and 
longitude.


Sec.  3171.18  Rights-of-Way and Special Use Authorizations.

    (a) The BLM or the FS will notify the operator of any additional 
Rights-of-Way, Special Use Authorizations, licenses, or other permits 
that are needed for roads and support facilities for drilling or off-
lease access, as appropriate. This notification will normally occur at 
the time the operator submits the APD or Notice of Staking package, or 
Sundry Notice, or during the onsite inspection.
    (b) The BLM or the FS, as appropriate, will approve or accept on-
lease activities that are associated with actions proposed in the APD 
or Sundry Notice and that will occur on the lease as part of the APD or 
Sundry Notice. These actions do not require a Right-of- Way or Special 
Use Authorization. For pipeline Rights-of-Way crossing lands under the 
jurisdiction of two or more Federal surface managing agencies, except 
lands in the National Park Service or Indian lands, applications should 
be submitted to the BLM. Refer to 43 CFR parts 2800 and 2880 for 
guidance on BLM Rights-of-Way and 36 CFR part 251 for guidance on FS 
Special Use Authorizations.
    (1) Rights-of-Way (BLM). (i) For BLM lands, the APD package may 
serve as the supporting document for the Right-of-Way application in 
lieu of a Right-of-Way plan of development.
    (ii) Any additional information specified in 43 CFR parts 2800 and 
2880 will be required in order to process the Right- of-Way. The BLM 
will notify the operator within 10 days of receipt of a Notice of 
Staking, APD, or other notification if any parts of the project require 
a Right- of-Way. If a Right-of-Way is needed, the information required 
from the operator to approve the Right-of-Way may be submitted by the 
operator with the APD package if the Notice of Staking option has been 
used.
    (2) Special Use Authorizations (FS) (36 CFR part 251, subpart B). 
When a Special Use Authorization is required, the Surface Use Plan of 
Operations may serve as the application for the Special Use 
Authorization if the facility for which a Special Use Authorization is 
required is adequately described (see 36 CFR 251.54(d)(ii)). Conditions 
regulating the authorized use may be imposed to protect the public 
interest, to ensure compatibility with other NFS lands programs and 
activities consistent with the Forest Land and Resources Management 
Plan. A Special Use Authorization, when related to an APD, will include 
terms and conditions (36 CFR 251.56) and may require a specific 
reclamation plan or adopt applicable parts of the Surface Use Plan of 
Operations by reference.


Sec.  3171.19  Operating on lands with non-Federal surface and Federal 
oil and gas.

    (a) The operator must submit the name, address, and phone number of 
the surface owner, if known, in its APD. The BLM will invite the 
surface owner to the onsite inspection to assure that their concerns 
are considered. As provided in the oil and gas lease, the BLM may 
request that the applicant conduct surveys or otherwise provide 
information needed for the BLM's National Historic Preservation Act 
consultation with the State Historic Preservation Officer or Indian 
tribe or its Endangered Species Act consultation with the relevant 
fisheries agency. The Federal mineral lessee has the right to enter the 
property for the purpose set out in the preceding sentence, since it is 
a necessary prerequisite to development of the dominant mineral estate. 
Nevertheless, the lessee or operator should seek to reach agreement 
with the surface owner about the time and method by which any survey 
would be conducted.
    (b) Likewise, in the case of actual oil and gas operations, the 
operator must make a good faith effort to notify the private surface 
owner before entry and make a good faith effort to obtain a Surface 
Access Agreement from the surface owner. This section also applies to 
lands with Indian trust surface and Federal minerals. In these cases, 
the operator must make a good faith effort to obtain surface access 
agreement with the tribe in the case of tribally owned surface, 
otherwise with the majority of the Indian surface owners who can be 
located with the assistance and concurrence of the BIA. The Surface 
Access Agreement may include terms or conditions of use, be a waiver, 
or an agreement for compensation. The operator must certify to the BLM 
that:
    (1) It made a good faith effort to notify the surface owner before 
entry; and
    (2) That an agreement with the surface owner has been reached or 
that a good faith effort to reach an agreement failed. If no agreement 
was reached with the surface owner, the operator must submit an 
adequate bond (minimum of $1,000) to the BLM for the benefit of the 
surface owner sufficient to:
    (i) Pay for loss or damages; or
    (ii) As otherwise required by the specific statutory authority 
under which the surface was patented and the terms of the lease.
    (c) Surface owners have the right to appeal the sufficiency of the 
bond. Before the approval of the APD, the BLM will make a good faith 
effort to contact the surface owner to assure that they understand 
their rights to appeal.
    (d) The BLM must comply with NEPA, the National Historic 
Preservation Act, the Endangered Species Act, and related Federal 
statutes when authorizing lease operations on split estate lands where 
the surface is not federally owned and the oil and gas is Federal. For 
split estate lands within FS administrative boundaries, the BLM has the 
lead responsibility, unless there is a local BLM/FS agreement that 
gives the FS this responsibility.
    (e) The operator must make a good faith effort to provide a copy of 
their Surface Use Plan of Operations to the surface owner. After the 
APD is approved the operator must make a good faith effort to provide a 
copy of the Conditions of Approval to the surface owner. The APD 
approval is not contingent upon delivery of a copy of the Conditions of 
Approval to the surface owner.


Sec.  3171.20  Leases for Indian oil and gas.

    (a) Approval of operations. The BLM will process APDs, Master 
Development Plans, and Sundry Notices on Indian tribal and allotted oil 
and gas leases, and Indian Mineral Development Act mineral agreements 
in a manner similar to Federal leases. For processing such

[[Page 39525]]

applications, the BLM considers the BIA to be the surface managing 
agency. Operators are responsible for obtaining any special use or 
access permits from appropriate BIA and, where applicable, tribal 
offices. The BLM is not required to post for public inspection APDs for 
minerals subject to Indian oil and gas leases or agreements.
    (b) Surface use. Where the wellsite and/or access road is proposed 
on Indian lands with a different beneficial owner than the minerals, 
the operator is responsible for entering into a surface use agreement 
with the Indian tribe or the individual Indian surface owner, subject 
to BIA approval. This agreement must specify the requirements for 
protection of surface resources, mitigation, and reclamation of 
disturbed areas. The BIA, the Indian surface owner, and the BLM, 
pursuant to 25 CFR 211.4, 212.4 and 225.4, will develop the Conditions 
of Approval. If the operator is unable to obtain a Surface Access 
Agreement, it may provide a bond for the benefit of the surface 
owner(s) (see Sec.  3171.19).


Sec.  3171.21  Subsequent operations and Sundry Notices.

    Subsequent operations must follow 43 CFR part 3160, applicable 
lease stipulations, and APD Conditions of Approval. The operator must 
file the Sundry Notice in the BLM Field Office having jurisdiction over 
the lands described in the notice or the operator may file it using the 
BLM's electronic commerce system.
    (a) Surface disturbing operations. (1) Lessees and operators must 
submit for BLM or FS approval a request on Form 3160-5 before:
    (i) Undertaking any subsequent new construction outside the 
approved area of operations; or
    (ii) Reconstructing or altering existing facilities including, but 
not limited to, roads, emergency pits, firewalls, flowlines, or other 
production facilities on any lease that will result in additional 
surface disturbance.
    (2) If, at the time the original APD was filed, the lessee or 
operator elected to defer submitting information under Sec.  
3171.8(e)(4)(iii), the lessee or operator must supply this information 
before construction and installation of the facilities. The BLM, in 
consultation with any other involved surface managing agency, may 
require a field inspection before approving the proposal. The lessee or 
operator may not begin construction until the BLM approves the proposed 
plan in writing.
    (3) The operator must certify on Form 3160-5 that they have made a 
good faith effort to provide a copy of any proposal involving new 
surface disturbance to the private surface owner in the case of split 
estate.
    (b) Emergency repairs. Lessees or operators may undertake emergency 
repairs without prior approval if they promptly notify the BLM. Lessees 
or operators must submit sufficient information to the BLM or the FS to 
permit a proper evaluation of any:
    (1) Resulting surface disturbing activities; or
    (2) Planned accommodations necessary to mitigate potential adverse 
environmental effects.


Sec.  3171.22  Well conversions.

    (a) Conversion to an injection well. When subsequent operations 
will result in a well being converted to a Class II injection well 
(i.e., for disposal of produced water, oil and gas production 
enhancement, or underground storage of hydrocarbons), the operator must 
file with the appropriate BLM office a Sundry Notice, Notice of Intent 
to Convert to Injection on Form 3160-5. The BLM and the surface 
managing agency, if applicable, will review the information to ensure 
its technical and administrative adequacy. Following the review, the 
BLM, in consultation with the surface managing agency, where 
applicable, will decide upon the approval or disapproval of the 
application based upon relevant laws and regulations and the 
circumstances (e.g., the well used for lease or non-lease operations, 
surface ownership, and protection of subsurface mineral ownership). The 
BLM will determine if a Right-of-Way or Special Use Authorization and 
additional bonding are necessary and notify the operator.
    (b) Conversion to a water supply well. In cases where the surface 
managing agency or private surface owner desires to acquire an oil and 
gas well and convert it to a water supply well or acquire a water 
supply well that was drilled by the operator to support lease 
operations, the surface managing agency or private surface owner must 
inform the appropriate BLM office of its intent before the approval of 
the APD in the case of a dry hole and no later than the time a Notice 
of Intent to Abandon is submitted for a depleted production well. The 
operator must abandon the well according to BLM instructions, and must 
complete the surface cleanup and reclamation, in conjunction with the 
approved APD, Surface Use Plan of Operations, or Notice of Intent to 
Abandon, if the BLM or the FS require it. The surface managing agency 
or private surface owner must reach agreement with the operator as to 
the satisfactory completion of reclamation operations before the BLM 
will approve any abandonment or reclamation. The BLM approval of the 
partial abandonment under this section, completion of any required 
reclamation operations, and the signed release agreement will relieve 
the operator of further obligation for the well. If the surface 
managing agency or private surface owner acquires the well for water 
use purposes, the party acquiring the well assumes liability for the 
well.


Sec.  3171.23  Variances.

    The operator may make a written request to the agency with 
jurisdiction to request a variance from this subpart. A request for a 
variance must explain the reason the variance is needed and demonstrate 
how the operator will satisfy the intent of this subpart. The operator 
may include the request in the APD package. A variance from the 
requirements of this subpart does not constitute a variance to 
provisions of other regulations, laws, or orders. When the BLM is the 
decision maker on a request for a variance, the decision whether to 
grant or deny the variance request is entirely within the BLM's 
discretion. The decision on a variance request is not subject to 
administrative appeals either to the State Director or pursuant to 43 
CFR part 4.


Sec.  3171.24  Waivers, exceptions, or modifications.

    (a) An operator may also request that the BLM waive (permanently 
remove), except (case-by-case exemption), or modify (permanently 
change) a lease stipulation for a Federal lease. In the case of Federal 
leases, a request to waive, except, or modify a stipulation should also 
include information demonstrating that the factors leading to its 
inclusion in the lease have changed sufficiently to make the protection 
provided by the stipulation no longer justified or that the proposed 
operation would not cause unacceptable impacts.
    (b) When the waiver, exception, or modification is substantial, the 
proposed waiver, exception, or modification is subject to public review 
for 30 days. Prior to such public review, the BLM, and when applicable 
the FS, will post it in their local Field Office and, when possible, 
electronically on the internet. When the request is included in the 
Notice of Staking or APD, the request will be included as part of the 
application posting under Sec.  3171.5(c). Prior to granting a waiver, 
exception, or modification, the BLM will obtain the concurrence or 
approval of the FS or Federal surface managing agency. Decisions on 
such waivers,

[[Page 39526]]

exceptions, or modifications are subject to appeal pursuant to 43 CFR 
part 4.
    (c) After drilling has commenced, the BLM and the FS may consider 
verbal requests for waivers, exceptions, or modifications. However, the 
operator must submit a written notice within 7 days after the verbal 
request. The BLM and the FS will confirm in writing any verbal 
approval. Decisions on waivers, exceptions, or modifications submitted 
after drilling has commenced are final for the Department of the 
Interior and not subject to administrative review by the State Director 
or appeal pursuant to 43 CFR part 4.


Sec.  3171.25  Abandonment.

    In accordance with the requirements of 43 CFR 3162.3-4, before 
starting abandonment operations the operator must submit a Notice of 
Intent to Abandon on Sundry Notices and Reports on Wells, Form 3160-5. 
If the operator proposes to modify the plans for surface reclamation 
approved at the APD stage, the operator must attach these modifications 
to the Notice of Intent to Abandon.
    (a) Plugging. The operator must obtain BLM approval for the 
plugging of the well by submitting a Notice of Intent to Abandon. In 
the case of dry holes, drilling failures, and in emergency situations, 
verbal approval for plugging may be obtained from the BLM, with the 
Notice of Intent to Abandon promptly submitted as written 
documentation. Within 30 days following completion of well plugging, 
the operator must file with the BLM a Subsequent Report of Plug and 
Abandon, using Sundry Notices and Reports on Wells, Form 3160-5. For 
depleted production wells, the operator must submit a Notice of Intent 
to Abandon and obtain the BLM's approval before plugging.
    (b) Reclamation. Plans for surface reclamation are a part of the 
Surface Use Plan of Operations, as specified in Sec.  3171.8(e)(10), 
and must be designed to return the disturbed area to productive use and 
to meet the objectives of the land and resource management plan. If the 
operator proposes to modify the plans for surface reclamation approved 
at the APD stage, the operator must attach these modifications to the 
Subsequent Report of Plug and Abandon using Sundry Notices and Reports 
on Wells, Form 3160-5.
    (1) For wells not having an approved plan for surface reclamation, 
operators must submit to the BLM a proposal describing the procedures 
to be followed for complete abandonment, including a map showing the 
disturbed area and roads to be reclaimed. The BLM will forward the 
request to the FS or other surface managing agency. If applicable, the 
private surface owner will be notified and their views will be 
carefully considered.
    (2) Earthwork for interim and final reclamation must be completed 
within 6 months of well completion or well plugging (weather 
permitting). All pads, pits, and roads must be reclaimed to a 
satisfactorily revegetated, safe, and stable condition, unless an 
agreement is made with the landowner or surface managing agency to keep 
the road or pad in place. Pits containing fluid must not be breached 
(cut) and pit fluids must be removed or solidified before backfilling. 
Pits may be allowed to air dry subject to BLM or FS approval, but the 
use of chemicals to aid in fluid evaporation, stabilization, or 
solidification must have prior BLM or FS approval. Seeding or other 
activities to reestablish vegetation must be completed within the time 
period approved by the BLM or the FS.
    (3) Upon completion of reclamation operations, the lessee or 
operator must notify the BLM or the FS using Form 3160-5, Final 
Abandonment Notice, when the location is ready for inspection. Final 
abandonment will not be approved until the surface reclamation work 
required in the Surface Use Plan of Operations or Subsequent Report of 
Plug and Abandon has been completed to the satisfaction of the BLM or 
the FS and surface managing agency, if appropriate.


Sec.  3171.26  Appeal procedures.

    (a) Complete information concerning the review and appeal processes 
for BLM actions is contained in 43 CFR parts 4 and 3160, subpart 3165. 
Incorporation of a FS approved Surface Use Plan of Operations into the 
approval of an APD or a Master Development Plan is not subject to 
protest to the BLM or appeal to the Interior Board of Land Appeals.
    (b) The FS's decisions approving use of NFS lands may be subject to 
agency appeal procedures, in accordance with 36 CFR part 215 or 251.
    (c) Decisions governing Surface Use Plan of Operations and Special 
Use Authorization approvals on NFS lands that involve analysis, 
documentation, and other requirements of the NEPA may be subject to 
agency appeal procedures, under 36 CFR part 215.
    (d) The FS's regulations at 36 CFR part 251 govern appeals by an 
operator of written FS decisions related to Conditions of Approval or 
administration of Surface Use Plans of Operations or Special Use 
Authorizations to occupy and use NFS lands.
    (e) The operator may appeal decisions of the BIA under 25 CFR part 
2.

Appendix A to Subpart 3171--Sample Format for Notice of Staking

(Not to be used in place of Application for Permit to Drill or 
Reenter Form 3160-3)

1. Oil Well
    Gas Well
    Other (Specify)
2. Name, Address, and Telephone of Operator
3. Name and Telephone of Specific Contact Person
4. Surface Location of Well
Attach:
    (a) Sketch showing road entry onto pad, pad dimensions, and 
reserve pit
    (b) Topographical or other acceptable map (e.g., a USGS 7-\1/
2\'' Quadrangle) showing location, access road, and lease boundaries
5. Lease Number
6. If Indian, Allottee or Tribe Name
7. Unit Agreement Name
8. Well Name and Number
9. American Petroleum Institute (API) Well Number (if available)
10. Field Name or Wildcat
11. Section, Township, Range, Meridian; or Block and Survey; or Area
12. County, Parish, or Borough
13. State
14. Name and Depth of Formation Objective(s)
15. Estimated Well Depth
16. For directional or horizontal wells, anticipated bottom-hole 
location.
17. Additional Information (as appropriate; include surface owner's 
name, address and, if known, telephone).
18. Signed-------------------------------------------------------------
Title------------------------------------------------------------------
Date-------------------------------------------------------------------

    Note: When the Bureau of Land Management or the Forest Service, 
as appropriate, receives this Notice, the agency will schedule the 
date of the onsite inspection. You must stake the location and flag 
the access road before the onsite inspection. Operators should 
consider the following before the onsite inspection and incorporate 
these considerations into the Notice of Staking Option, as 
appropriate:

    (a) H2S Potential;
    (b) Cultural Resources (Archeology); and
    (c) Federal Right-of-Way or Special Use Permit.

Subpart 3172--Drilling Operations on Federal and Indian Oil and Gas 
Leases

Sec.
3172.1 Authority.
3172.2 Purpose.
3172.3 Scope.
3172.4 General.
3172.5 Definitions.
3172.6 Well control.
3172.7 Casing and cementing.
3172.8 Mud program.
3172.9 Drill stem testing.
3172.10 Special drilling operations.
3172.11 Surface use.
3172.12 Drilling abandonment.

[[Page 39527]]

3172.13 Variances from minimum standards.
Appendix A to Subpart 3172--Diagrams of Choke Manifold Requirements


Sec.  3172.1  Authority.

    (a) This subpart is established pursuant to the authority granted 
to the Secretary of the Interior pursuant to various Federal and Indian 
mineral leasing statutes and the Federal Oil and Gas Royalty Management 
Act of 1982. This authority has been delegated to the Bureau of Land 
Management and is implemented by the onshore oil and gas operating 
regulations contained in 43 CFR part 3160.
    (b) Specific authority for the provisions contained in this subpart 
is found at: 43 CFR 3162.3-1, 3162.3-4, 3162.4-1, 3162.4-3, 3162.5-1, 
3162.5-2 (see paragraph (a)), and 3162.5-3; and 43 CFR part 3160, 
subpart 3163.


Sec.  3172.2  Purpose.

    This subpart details the Bureau's uniform national standards for 
the minimum levels of performance expected from lessees and operators 
when conducting drilling operations on Federal and Indian lands (except 
Osage Tribe) and for abandonment immediately following drilling. The 
purpose also is to identify the enforcement actions that will result 
when violations of the minimum standards are found, and when those 
violations are not abated in a timely manner.


Sec.  3172.3  Scope.

    This subpart is applicable to all onshore Federal and Indian 
(except Osage Tribe) oil and gas leases.


Sec.  3172.4  General.

    (a) If an operator chooses to use higher rated equipment than that 
authorized in the Application for Permit to Drill (APD), testing 
procedures shall apply to the approved working pressures, not the 
upgraded higher working pressures.
    (b) Some situations may exist either on a well-by-well or field-
wide basis whereby it is commonly accepted practice to vary a 
particular minimum standard(s) established in this subpart. This 
situation may be resolved by requesting a variance (see Sec.  3172.13), 
by the inclusion of a stipulation to the APD, or by the issuance of a 
Notice to Lessees and Operators (NTL) by the appropriate BLM office.
    (c) When a violation is discovered, and if it does not cause or 
threaten immediate substantial and adverse impact on public health and 
safety, the environment, production accountability or royalty income, 
it will be classified as minor. The violation may be reissued as a 
major violation if not corrected during the abatement period and 
continued drilling has changed the adverse impact of the violation so 
that it meets the specific definition of a major violation.
    (d) This subpart is not intended to circumvent the reporting 
requirements or compliance aspects that may be stated elsewhere in 
existing NTLs, regulations, etc. A lessee's compliance with the 
requirements of the regulations in this subpart shall not relieve the 
lessee of the obligation to comply with other applicable laws and 
regulations in accordance with 43 CFR 3162.5-1(c). Lessees should give 
special attention to the automatic assessment provisions in 43 CFR 
3163.1(b).
    (e) This subpart is based upon the assumption that operations have 
been approved in accordance with 43 CFR part 3160 and subpart 3171 of 
this part. Failure to obtain approval prior to commencement of drilling 
or related operations shall subject the operator to immediate 
assessment under 43 CFR 3163.1(b)(2).


Sec.  3172.5  Definitions.

    As used in this subpart, the term:
    2M, 3M, 5M, 10M, and 15M mean the pressure ratings used for 
equipment with a working pressure rating of the equivalent thousand 
pounds per square inch (psi) (2M=2,000 psi, 3M=3,000 psi, etc.).
    Abnormal pressure zone means a zone that has either pressure above 
or below the normal gradient for an area and/or depth.
    Bleed line means the vent line that bypasses the chokes in the 
choke manifold system; also referred to as panic line.
    Blooie line means a discharge line used in conjunction with a 
rotating head.
    Drilling spool means a connection component with both ends either 
flanged or hubbed, with an internal diameter at least equal to the bore 
of the casing, and with smaller side outlets for connecting auxiliary 
lines.
    Exploratory well means any well drilled beyond the known producing 
limits of a pool.
    Fill-up line means the line used to fill the hole when the drill 
pipe is being removed from the well. It is usually connected to a 2-
inch collar that is welded into a drilling nipple.
    Flare line means a line used to carry gas away from the rig to be 
burned at a safer location. The gas comes from the degasser, gas 
buster, separator, or when drill stem testing, directly from the drill 
pipe.
    Functionally operated means activating equipment without subjecting 
it to well-bore pressure.
    Isolating means using cement to protect, separate, or segregate 
usable water and mineral resources.
    Lease means any contract, profit-share agreement, 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 (see 43 CFR 3160.0-5).
    Lessee means a person holding record title in a lease issued by the 
United States (see 43 CFR 3160.0-5).
    Make-up water means water that is used in mixing slurry for cement 
jobs and plugging operations and is compatible with the cement 
constituents being used.
    Manual locking device means any manually activated device, such as 
a hand wheel, etc., that is used for the purpose of locking the 
preventer in the closed position.
    Mud for plugging purposes means a slurry of bentonite or similar 
flocculent/viscosifier, water, and additives needed to achieve the 
desired weight and consistency to stabilize the hole.
    Mudding up means adding materials and chemicals to water to control 
the viscosity, weight, and filtrate loss of the circulating system.
    Operating rights owner (or owner) means a person or entity holding 
operating rights in a lease issued by the United States. A lessee also 
may be an operating rights owner if the operating rights in a lease or 
portion thereof have not been severed from record title.
    Operational means capable of functioning as designed and installed 
without undue force or further modification.
    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 his/her responsibility for the operations conducted 
in the leased lands or a portion thereof.
    Precharge pressure means the nitrogen pressure remaining in the 
accumulator after all the hydraulic fluid has been expelled from 
beneath the movable barrier.
    Prompt correction means immediate correction of violations, with 
drilling suspended if required in the discretion of the authorized 
officer.
    Prospectively valuable deposit of minerals means any deposit of 
minerals that the authorized officer determines to have characteristics 
of quantity and quality that warrant its protection.
    Tagging the plug means running in the hole with a string of tubing 
or drill

[[Page 39528]]

pipe and placing sufficient weight on the plug to ensure its integrity. 
Other methods of tagging the plug may be approved by the authorized 
officer.
    Targeted tee or turn means a fitting used in pressure piping in 
which a bull plug or blind flange of the same pressure rating as the 
rest of the approved system is installed at the end of a tee or cross, 
opposite the fluid entry arm, to change the direction of flow and to 
reduce erosion.
    Usable water means generally those waters containing up to 10,000 
parts per million (ppm) of total dissolved solids.
    Weep hole means a small hole that allows pressure to bleed off 
through the metal plate used in covering well bores after abandonment 
operations.


Sec.  3172.6  Well control.

    (a) Requirements. Blowout preventer (BOP) and related equipment 
(BOPE) shall be installed, used, maintained, and tested in a manner 
necessary to assure well control and shall be in place and operational 
prior to drilling the surface casing shoe unless otherwise approved by 
the APD. Commencement of drilling without the approved BOPE installed, 
unless otherwise approved, shall subject the operator to immediate 
assessment under 43 CFR 3163.1(b)(1). The BOP and related control 
equipment shall be suitable for operations in those areas which are 
subject to sub-freezing conditions. The BOPE shall be based on known or 
anticipated sub-surface pressures, geologic conditions, accepted 
engineering practice, and surface environment. Item number 7 of the 8 
point plan in the APD specifically addresses expected pressures. The 
working pressure of all BOPE shall exceed the anticipated surface 
pressure to which it may be subjected, assuming a partially evacuated 
hole with a pressure gradient of 0.22 psi/ft.
    (b) Violation classifications. The gravity of the violation for 
many of the well control minimum standards listed in paragraphs (b)(1) 
through (9) of this section are shown as minor. However, very short 
abatement periods in this subpart are often specified in recognition 
that by continuing to drill, the violation which was originally 
determined to be of a minor nature may cause or threaten immediate, 
substantial, and adverse impact on public health and safety, the 
environment, production accountability, or royalty income, which would 
require it reclassification as a major violation.
    (1) Minimum standards and enforcement provisions for well control 
equipment. (i) A well control device shall be installed at the surface 
that is capable of complete closure of the well bore. This device shall 
be closed whenever the well is unattended.

                    Table 1 to Sec.   3172.6(b)(1)(i)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install the           Prompt correction
                               equipment as          required.
                               specified.
------------------------------------------------------------------------

    (ii) For 2M system:
    (A) Annular preventer, double ram, or two rams with one being blind 
and one being a pipe ram (major);
    (B) Kill line (2 inch minimum);
    (C) 1 kill line valve (2 inch minimum);
    (D) 1 choke line valve;
    (E) 2 chokes (refer to diagram in appendix A to this subpart);
    (F) Upper kelly cock valve with handle available;
    (G) Safety valve and subs to fit all drill strings in use;
    (H) Pressure gauge on choke manifold;
    (I) 2 inch minimum choke line; and
    (J) Fill-up line above the uppermost preventer.

                   Table 2 to Sec.   3172.6(b)(1)(ii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install the           24 hours.
                               equipment as
                               specified.
Major (as indicated)........  Install the           Prompt correction
                               equipment as          required.
                               specified.
------------------------------------------------------------------------

    (iii) For 3M system:
    (A) Annular preventers (major);
    (B) Double ram with blind rams and pipe rams (major);
    (C) Drilling spool, or blowout preventer with 2 side outlets (choke 
side shall be a 3-inch minimum diameter, kill side shall be at least 2-
inch diameter) (major);
    (D) Kill line (2 inch minimum);
    (E) A minimum of 2 choke line valves (3 inch minimum) (major);
    (F) 3 inch diameter choke line;
    (G) 2 kill line valves, one of which shall be a check valve (2 inch 
minimum) (major);
    (H) 2 chokes (refer to diagram in appendix A to this subpart);
    (I) Pressure gauge on choke manifold;
    (J) Upper kelly cock valve with handle available;
    (K) Safety valve and subs to fit all drill string connections in 
use;
    (L) All BOPE connections subjected to well pressure shall be 
flanged, welded, or clamped (major); and
    (M) Fill-up line above the uppermost preventer.

                   Table 3 to Sec.   3172.6(b)(1)(iii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install the           24 hours.
                               equipment as
                               specified.
Major (as indicated)........  Install the           Prompt correction
                               equipment as          required.
                               specified.
------------------------------------------------------------------------

    (iv) For 5M system:
    (A) Annular preventer (major);
    (B) Pipe ram, blind ram, and, if conditions warrant, as specified 
by the authorized officer, another pipe ram shall also be required 
(major);

[[Page 39529]]

    (C) A second pipe ram preventer or variable bore pipe ram preventer 
shall be used with a tapered drill string;
    (D) Drilling spool, or blowout preventer with 2 side outlets (choke 
side shall be a 3-inch minimum diameter, kill side shall be at least 2-
inch diameter) (major);
    (E) 3 inch diameter choke line;
    (F) 2 choke line valves (3 inch minimum) (major);
    (G) Kill line (2 inch minimum);
    (H) 2 chokes with 1 remotely controlled from rig floor (refer to 
diagram in appendix A to this subpart);
    (I) 2 kill line valves and a check valve (2 inch minimum) (major);
    (J) Upper kelly cock valve with a handle available;
    (K) When the expected pressures approach working pressure of the 
system, 1 remote kill line tested to stack pressure (which shall run to 
the outer edge of the substructure and be unobstructed);
    (L) Lower kelly cock valve with handle available;
    (M) Safety valve(s) and subs to fit all drill string connections in 
use;
    (N) Inside BOP or float sub available;
    (O) Pressure gauge on choke manifold;
    (P) All BOPE connections subjected to well pressure shall be 
flanged, welded, or clamped (major); and
    (Q) Fill-up line above the uppermost preventer.

                   Table 4 to Sec.   3172.6(b)(1)(iv)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install the           24 hours.
                               equipment as
                               specified.
Major (as indicated)........  Install the           Prompt correction
                               equipment as          required.
                               specified.
------------------------------------------------------------------------

    (v) For 10M & 15M system:
    (A) Annular preventer (major);
    (B) 2 pipe rams (major);
    (C) Blind rams (major);
    (D) Drilling spool, or blowout preventer with 2 side outlets (choke 
side shall be a 3-inch minimum diameter, kill side shall be at least 2-
inch diameter) (major):
    (E) 3 inch choke line (major);
    (F) 2 kill line valves (2 inch minimum) and check valve (major):
    (G) Remote kill line (2 inch minimum) shall run to the outer edge 
of the substructure and be unobstructed;
    (H) Manual and hydraulic choke line valves (3 inch minimum) 
(major);
    (I) 3 chokes, 1 being remotely controlled (refer to diagram in 
appendix A to this subpart);
    (J) Pressure gauge on choke manifold;
    (K) Upper kelly cock valve with handle available;
    (L) Lower kelly cock valve with handle available;
    (M) Safety valves and subs to fit all drill string connections in 
use;
    (N) Inside BOP or float sub available;
    (O) Wear ring in casing head;
    (P) All BOPE connections subjected to well pressure shall be 
flanged, welded, or clamped (major); and
    (Q) Fill-up line installed above the uppermost preventer.

                    Table 5 to Sec.   3172.6(b)(1)(v)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install the           24 hours.
                               equipment as
                               specified.
Major (as indicated)........  Install the           Prompt correction
                               equipment as          required.
                               specified.
------------------------------------------------------------------------

    (vi) If repair or replacement of the BOPE is required after 
testing, this work shall be performed prior to drilling out the casing 
shoe.

                   Table 6 to Sec.   3172.6(b)(1)(vi)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install the           Prompt correction
                               equipment as          required.
                               specified.
------------------------------------------------------------------------

    (vii) When the BOPE cannot function to secure the hole, the hole 
shall be secured using cement, retrievable packer or a bridge plug 
packer, bridge plug, or other acceptable approved method to assure safe 
well conditions.

                   Table 7 to Sec.   3172.6(b)(1)(vii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install the           Prompt correction
                               equipment as          required.
                               specified.
------------------------------------------------------------------------

    (2) Minimum standards and enforcement provisions for choke manifold 
equipment. (i) All choke lines shall be straight lines unless turns use 
tee blocks or are targeted with running tees, and shall be anchored to 
prevent whip and reduce vibration.

[[Page 39530]]



                    Table 8 to Sec.   3172.6(b)(2)(i)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install the           24 hours.
                               equipment as
                               specified.
------------------------------------------------------------------------

    (ii) Choke manifold equipment configuration shall be functionally 
equivalent to the appropriate example diagram shown in appendix A of 
this subpart. The configuration of the chokes may vary.

                   Table 9 to Sec.   3172.6(b)(2)(ii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install the           Prompt correction
                               equipment as          required.
                               specified.
------------------------------------------------------------------------

    (iii) All valves (except chokes) in the kill line, choke manifold, 
and choke line shall be a type that does not restrict the flow (full 
opening) and that allows a straight through flow (same enforcement as 
paragraph (b)(2)(ii) of this section).
    (iv) Pressure gauges in the well control system shall be a type 
designed for drilling fluid service (same enforcement as paragraph 
(b)(2)(ii) of this section).
    (3) Minimum standards and enforcement provisions for pressure 
accumulator system. (i) 2M system--accumulator shall have sufficient 
capacity to close all BOP's and retain 200 psi above precharge. 
Nitrogen bottles that meet manufacturer's specifications may be used as 
the backup to the required independent power source.

                   Table 10 to Sec.   3172.6(b)(3)(i)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install the           24 hours.
                               equipment as
                               specified.
------------------------------------------------------------------------

    (ii) 3M system--accumulator shall have sufficient capacity to open 
the hydraulically controlled choke line valve (if so equipped), close 
all rams plus the annual preventer, and retain a minimum of 200 psi 
above precharge on the closing manifold without the use of the closing 
unit pumps. This is a minimum requirement. The fluid reservoir capacity 
shall be double the usable fluid volume of the accumulator system 
capacity and the fluid level of the reservoir shall be maintained at 
the manufacturer's recommendations. The 3M system shall have 2 
independent power sources to close the preventers. Nitrogen bottles (3 
minimum) may be 1 of the independent power sources and, if so, shall 
maintain a charge equal to the manufacturer's specifications.

                   Table 11 to Sec.   3172.6(b)(3)(ii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install the           24 hours.
                               equipment as
                               specified.
------------------------------------------------------------------------

    (iii) 5M and higher system--accumulator shall have sufficient 
capacity to open the hydraulically controlled gate valve (if so 
equipped) and close all rams plus the annular preventer (for 3 ram 
systems add a 50 percent safety factor to compensate for any fluid loss 
in the control system or preventers) and retain a minimum pressure of 
200 psi above precharge on the closing manifold without use of the 
closing unit pumps. The fluid reservoir capacity shall be double the 
usable fluid volume of the accumulator system capacity and the fluid 
level of the reservoir shall be maintained at the manufacturer's 
recommendations. Two independent sources of power shall be available 
for powering the closing unit pumps. Sufficient nitrogen bottles are 
suitable as a backup power source only, and shall be recharged when the 
pressure falls below manufacturer's specifications.

                  Table 12 to Sec.   3172.6(b)(3)(iii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install the           24 hours.
                               equipment as
                               specified.
------------------------------------------------------------------------

    (4) Minimum standards and enforcement provisions for accumulator 
precharge pressure test. This test shall be conducted prior to 
connecting the closing unit to the BOP stack and at least once every 6 
months. The accumulator pressure shall be corrected if the measured 
precharge pressure is found to be above or below the maximum or minimum 
limit specified in table 13 to this paragraph (b)(4) (only nitrogen gas 
may be used to precharge):

[[Page 39531]]



                                         Table 13 to Sec.   3172.6(b)(4)
----------------------------------------------------------------------------------------------------------------
 Accumulator working     Minimum acceptable                            Maximum acceptable    Minimum acceptable
   pressure rating       operating pressure     Desired precharge      precharge pressure    precharge pressure
        (psi)                  (psi)             pressure  (psi)             (psi)                  (psi)
----------------------------------------------------------------------------------------------------------------
             1,500                  1,500                    750                    800                   700
             2,000                  2,000                  1,000                  1,100                   900
             3,000                  3,000                  1,000                  1,100                   900
----------------------------------------------------------------------------------------------------------------


                     Table 14 to Sec.   3172.6(b)(4)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Perform test........  24 hours.
------------------------------------------------------------------------

    (5) Minimum standards and enforcement provisions for power 
availability. Power for the closing unit pumps shall be available to 
the unit at all times so that the pumps shall automatically start when 
the closing unit manifold pressure has decreased to a pre-set level.

                     Table 15 to Sec.   3172.6(b)(5)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install the           Prompt correction
                               equipment as          required.
                               specified.
------------------------------------------------------------------------

    (6) Minimum standards and enforcement provisions for accumulator 
pump capacity. Each BOP closing unit shall be equipped with sufficient 
number and sizes of pumps so that, with the accumulator system isolated 
from service, the pumps shall be capable of opening the hydraulically 
operated gate valve (if so equipped), plus closing the annular 
preventer on the smallest size drill pipe to be used within 2 minutes, 
and obtain a minimum of 200 psi above specified accumulator precharge 
pressure.

                     Table 16 to Sec.   3172.6(b)(6)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install the           24 hours.
                               equipment as
                               specified.
------------------------------------------------------------------------

    (7) Minimum standards and enforcement provisions for locking 
devices. A manual locking device (i.e., hand wheels) or automatic 
locking devices shall be installed on all systems of 2M or greater. A 
valve shall be installed in the closing line as close as possible to 
the annular preventer to act as a locking device. This valve shall be 
maintained in the open position and shall be closed only when the power 
source for the accumulator system is inoperative.

                     Table 17 to Sec.   3172.6(b)(7)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install the           24 hours.
                               equipment as
                               specified.
------------------------------------------------------------------------

    (8) Minimum standards and enforcement provisions for remote 
controls. Remote controls shall be readily accessible to the driller. 
Remote controls for all 3M or greater systems shall be capable of 
closing all preventers. Remote controls for 5M or greater systems shall 
be capable of both opening and closing all preventers. Master controls 
shall be at the accumulator and shall be capable of opening and closing 
all preventers and the choke line valve (if so equipped). No remote 
control for a 2M system is required.

                     Table 18 to Sec.   3172.6(b)(8)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install the           24 hours.
                               equipment as
                               specified.
------------------------------------------------------------------------

    (9) Minimum standards and enforcement provisions for well control 
equipment testing. (i) Perform all tests described in paragraphs 
(b)(9)(ii) through (x) of this section using clear water or an 
appropriate clear liquid for

[[Page 39532]]

subfreezing temperatures with a viscosity similar to water.
    (ii) Ram type preventers and associated equipment shall be tested 
to approved (see Sec.  3172.4(a)) stack working pressure if isolated by 
test plug or to 70 percent of internal yield pressure of casing if BOP 
stack is not isolated from casing. Pressure shall be maintained for at 
least 10 minutes or until requirements of test are met, whichever is 
longer. If a test plug is utilized, no bleed-off of pressure is 
acceptable. For a test not utilizing a test plug, if a decline in 
pressure of more than 10 percent in 30 minutes occurs, the test shall 
be considered to have failed. Valve on casing head below test plug 
shall be open during test of BOP stack.
    (iii) Annular type preventers shall be tested to 50 percent of 
rated working pressure. Pressure shall be maintained at least 10 
minutes or until provisions of test are met, whichever is longer.
    (iv) As a minimum, the test in paragraph (b)(9)(iii) of this 
section shall be performed:
    (A) When initially installed;
    (B) Whenever any seal subject to test pressure is broken;
    (C) Following related repairs; and
    (D) At 30-day intervals.
    (v) Valves shall be tested from working pressure side during BOPE 
tests with all down stream valves open.
    (vi) When testing the kill line valve(s), the check valve shall be 
held open or the ball removed.
    (vii) Annular preventers shall be functionally operated at least 
weekly.
    (viii) Pipe and blind rams shall be activated each trip, however, 
this function need not be performed more than once a day.
    (ix) A BOPE pit level drill shall be conducted weekly for each 
drilling crew.
    (x) Pressure tests shall apply to all related well control 
equipment.
    (xi) All of the tests described in paragraphs (b)(1)(ii) through 
(x) of this section and/or drills shall be recorded in the drilling 
log.

                     Table 19 to Sec.   3172.6(b)(9)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Perform the           24 hours or next
                               necessary test or     trip, as most
                               provide               appropriate.
                               documentation.
------------------------------------------------------------------------

Sec.  3172.7  Casing and cementing.

    (a) Requirements. The proposed casing and cementing programs shall 
be conducted as approved to protect and/or isolate all usable water 
zones, potentially productive zones, lost circulation zones, abnormally 
pressured zones, and any prospectively valuable deposits of minerals. 
Any isolating medium other than cement shall receive approval prior to 
use. The casing setting depth shall be calculated to position the 
casing seat opposite a competent formation which will contain the 
maximum pressure to which it will be exposed during normal drilling 
operations. Determination of casing setting depth shall be based on all 
relevant factors, including: presence/absence of hydrocarbons; fracture 
gradients; usable water zones; formation pressures; lost circulation 
zones; other minerals; or other unusual characteristics. All 
indications of usable water shall be reported.
    (1) Minimum design factors for tensions, collapse, and burst that 
are incorporated into the casing design by an operator/lessee shall be 
submitted to the authorized operator for his review and approval along 
with the APD for all exploratory wells or as otherwise specified by the 
authorized officer.
    (2) Casing design shall assume formation pressure gradients of 0.44 
to 0.50 psi per foot for exploratory wells (lacking better data).
    (3) Casing design shall assume fracture gradients from 0.70 to 1.00 
psi per foot for exploratory wells (lacking better data).
    (4) Casing collars shall have a minimum clearance of 0.422 inches 
on all sides in the hole/casing annulus, with recognition that 
variances can be granted for justified exceptions.
    (5) All waiting on cement times shall be adequate to achieve a 
minimum of 500 psi compressive strength at the casing shoe prior to 
drilling out.
    (b) Minimum standards and enforcement provisions for casing and 
cementing. (1) All casing, except the conductor casing, shall be new or 
reconditioned and tested casing. All casing shall meet or exceed 
American Petroleum Institute (API) standards for new casing. The use of 
reconditioned and tested used casing shall be subject to approval by 
the authorized officer: approval will be contingent upon the wall 
thickness of any such casing being verified to be at least 87\1/2\ 
percent of the nominal wall thickness of new casing.

                     Table 1 to Sec.   3172.7(b)(1)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Perform remedial      Prompt correction
                               action as specified   required.
                               by the authorized
                               officer.
------------------------------------------------------------------------

    (2) For liners, a minimum of 100 feet of overlap between a string 
of casing and the next larger casing is required. The interval of 
overlap shall be sealed and tested. The liner shall be tested by a 
fluid entry or pressure test to determine whether a seal between the 
liner top and next larger string has been achieved. The test pressure 
shall be the maximum anticipated pressure to which the seal will be 
exposed. No test shall be required for liners that do not incorporate 
or need a seal mechanism.

                     Table 2 to Sec.   3172.7(b)(2)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Perform remedial      Upon determination
                               action as specified   of corrective
                               by the authorized     action.
                               officer.
------------------------------------------------------------------------


[[Page 39533]]

    (3) The surface casing shall be cemented back to surface either 
during the primary cement job or by remedial cementing.

                     Table 3 to Sec.   3172.7(b)(3)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Perform remedial      Prompt correction
                               cementing.            required.
------------------------------------------------------------------------

    (4) All of the tests described in paragraphs (b)(1) through (3) of 
this section shall be recorded in the drilling log.

                     Table 4 to Sec.   3172.7(b)(4)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Perform the           24 hours.
                               necessary test or
                               provide
                               documentation.
------------------------------------------------------------------------

    (5) All indications of usable water shall be reported to the 
authorized officer prior to running the next string of casing or before 
plugging orders are requested, whichever occurs first.

                     Table 5 to Sec.   3172.7(b)(5)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Report information    Prompt correction
                               as required.          required.
------------------------------------------------------------------------

    (6) Surface casing shall have centralizers on the bottom 3 joints 
of the casing (a minimum of 1 centralizer per joint, starting with the 
shoe joint).

                     Table 6 to Sec.   3172.7(b)(6)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Logging/testing may   Prompt correction
                               be required to        upon determination
                               determine the         of corrective
                               quality of the job.   action.
                               Recementing may
                               then be specified.
------------------------------------------------------------------------

    (7) Top plugs shall be used to reduce contamination of cement by 
displacement fluid. A bottom plug or other acceptable technique, such 
as a suitable preflush fluid, inner string cement method, etc., shall 
be utilized to help isolate the cement from contamination by the mud 
fluid being displaced ahead of the cement slurry.

                     Table 7 to Sec.   3172.7(b)(7)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Logging may be        Based upon
                               required to           determination of
                               determine the         corrective action.
                               quality of the
                               cement job.
                               Recementing or
                               further recementing
                               may then be
                               specified.
------------------------------------------------------------------------

    (8) All casing strings below the conductor shall be pressure tested 
to 0.22 psi per foot of casing string length or 1,500 psi, whichever is 
greater, but not to exceed 70 percent of the minimum internal yield. If 
pressure declines more than 10 percent in 30 minutes, corrective action 
shall be taken.

                     Table 8 to Sec.   3172.7(b)(8)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Perform the test and/ 24 hours.
                               or remedial action
                               as specified by the
                               authorized officer.
------------------------------------------------------------------------

    (9) On all exploratory wells, and on that portion of any well 
approved for a 5M BOPE system or greater, a pressure integrity test of 
each casing shoe shall be performed. Formation at the shoe shall be 
tested to a minimum of the mud weight equivalent anticipated to control 
the formation pressure to the next casing depth or at total depth of 
the

[[Page 39534]]

well. This test shall be performed before drilling more than 20 feet of 
new hole.

                     Table 9 to Sec.   3172.7(b)(9)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Perform the           24 hours.
                               specified test.
------------------------------------------------------------------------

Sec.  3172.8  Mud program.

    (a) Requirements. The characteristics, use, and testing of drilling 
mud and the implementation of related drilling procedures shall be 
designed to prevent the loss of well control. Sufficient quantities of 
mud materials shall be maintained or readily accessible for the purpose 
of assuring well control.
    (b) Minimum standards and enforcement provisions for mud program 
and equipment. (1) Record slow pump speed on daily drilling report 
after mudding up.

                     Table 1 to Sec.   3172.8(b)(1)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Record required       24 hours.
                               information.
------------------------------------------------------------------------

    (2) Visual mud monitoring equipment shall be in place to detect 
volume changes indicating loss or gain of circulating fluid volume.

                     Table 2 to Sec.   3172.8(b)(2)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install necessary     24 hours.
                               equipment.
------------------------------------------------------------------------

    (3) When abnormal pressures are anticipated, electronic/mechanical 
mud monitoring equipment shall be required, which shall include as a 
minimum: pit volume totalizer (PVT); stroke counter; and flow sensor.

                     Table 3 to Sec.   3172.8(b)(3)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install necessary     24 hours.
                               instrumentation.
------------------------------------------------------------------------

    (4) A mud test shall be performed every 24 hours after mudding up 
to determine, as applicable: density, viscosity, gel strength, 
filtration, and pH.

                     Table 4 to Sec.   3172.8(b)(4)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Perform necessary     24 hours.
                               tests.
------------------------------------------------------------------------

    (5) A trip tank shall be used on 10M and 15M systems and on 
upgraded 5M systems as determined by the authorized officer.

                     Table 5 to Sec.   3172.8(b)(5)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install necessary     24 hours.
                               equipment.
------------------------------------------------------------------------

    (6)(i) Gas detecting equipment shall be installed in the mud return 
system for exploratory wells or wells where abnormal pressure is 
anticipated, and hydrocarbon gas shall be monitored for pore pressure 
changes.
    (ii) Hydrogen sulfide safety and monitoring equipment requirements 
may be found in subpart 3176 of this part.

[[Page 39535]]



                   Table 6 to Sec.   3172.8(b)(6)(ii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install necessary     24 hours.
                               equipment.
------------------------------------------------------------------------

    (7) All flare systems shall be designed to gather and burn all gas. 
The flare line(s) discharge shall be located not less than 100 feet 
from the well head, having straight lines unless turns are targeted 
with running tees, and shall be positioned downwind of the prevailing 
wind direction and shall be anchored. The flare system shall have an 
effective method for ignition. Where noncombustible gas is likely or 
expected to be vented, the system shall be provided supplemental fuel 
for ignition and to maintain a continuous flare.

                     Table 6 to Sec.   3172.8(b)(7)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install equipment as  24 hours.
                               specified.
------------------------------------------------------------------------

    (8) A mud-gas separator (gas buster) shall be installed and 
operable for all systems of 10M or greater and for any system where 
abnormal pressure is anticipated beginning at a point at least 500 feet 
above any anticipated hydrocarbon zone of interest.

                     Table 8 to Sec.   3172.8(b)(8)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install required      Prompt correction
                               equipment.            required.
------------------------------------------------------------------------

Sec.  3172.9  Drill stem testing.

    (a) Requirements. Initial opening of drill stem test tools shall be 
restricted to daylight hours unless specific approval to start during 
other hours is obtained from the authorized officer. However, drill 
stem tests (DSTs) may be allowed to continue at night if the test was 
initiated during daylight hours and the rate of flow is stabilized and 
if adequate lighting is available (i.e., lighting which is adequate for 
visibility and vapor-proof for safe operations). Packers can be 
released, but tripping shall not begin before daylight, unless prior 
approval is obtained from the authorized officer. Closed chamber DSTs 
may be accomplished day or night.
    (b) Minimum standards for drill stem testing. (1) A DST that flows 
to the surface with evidence of hydrocarbons shall be either reversed 
out of the testing string under controlled surface conditions, or 
displaced into the formation prior to pulling the test tool. This would 
involve providing some means for reserve circulation.

                     Table 1 to Sec.   3172.9(b)(1)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Contingent on         Prompt correction
                               circumstances and     required.
                               as specified by the
                               authorized officer.
------------------------------------------------------------------------

    (2) Separation equipment required for the anticipated recovery 
shall be properly installed before a test starts.

                     Table 2 to Sec.   3172.9(b)(2)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install required      Prompt correction
                               equipment.            required.
------------------------------------------------------------------------

    (3) All engines within 100 feet of the wellbore that are required 
to ``run'' during the test shall have spark arresters or water-cooled 
exhausts.

                     Table 3 to Sec.   3172.9(b)(3)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install required      Prompt correction
                               equipment.            required.
------------------------------------------------------------------------


[[Page 39536]]

Sec.  3172.10  Special drilling operations.

    (a) In addition to the equipment already specified elsewhere in 
this subpart, the following equipment shall be in place and operational 
during air/gas drilling:
    (1) Properly lubricated and maintained rotating head (major);
    (2) Spark arresters on engines or water-cooled exhaust (major);
    (3) Blooie line discharge 100 feet from well bore and securely 
anchored;
    (4) Straight run on blooie line unless otherwise approved;
    (5) Deduster equipment (major);
    (6) All cuttings and circulating medium shall be directed into a 
reserve or blooie pit (major);
    (7) Float valve above bit (major);
    (8) Automatic igniter or continuous pilot light on the blooie line 
(major);
    (9) Compressors located in the opposite direction from the blooie 
line a minimum of 100 feet from the well bore; and
    (10) Mud circulating equipment, water, and mud materials (does not 
have to be premixed) sufficient to maintain the capacity of the hole 
and circulating tanks or pits.

                      Table 1 to Sec.   3172.10(a)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install the           24 hours.
                               equipment as
                               specified.
Major (as indicated)........  Install the           Prompt correction
                               equipment as          required.
                               specified.
------------------------------------------------------------------------

    (b) Hydrogen sulfide operation is specifically addressed under 
subpart 3176 of this part.


Sec.  3172.11  Surface use.

    (a) Responsibilities. Subpart 3171 of this part specifically 
addresses surface use. Subpart 3171 provides for safe operations, 
adequate protection of surface resources and uses, and other 
environmental components. The operator/lessee is responsible for, and 
liable for, all building, construction, and operating activities and 
subcontracting activities conducted in association with the APD. 
Requirements and special stipulations for surface use are contained in 
or attached to the approved APD.
    (b) Minimum standards and enforcement provisions for surface use. 
The requirements and stipulations of approval shall be strictly adhered 
to by the operator/lessee and any contractors.
    (c) Violation. If a violation is identified by the authorized 
officer he shall determine whether it is major or minor, considering 
the definitions in 43 CFR 3160.0-5, and shall specify the appropriate 
corrective action and abatement period.


Sec.  3172.12  Drilling abandonment.

    (a) Requirements. The standards in paragraphs (a)(1) through (11) 
of this section apply to the abandonment of newly drilled dry or non- 
productive wells in accordance with Sec.  3171.18 and 43 CFR 3162.3-4. 
Approval shall be obtained prior to the commencement of abandonment. 
All formations bearing usable-quality water, oil, gas, or geothermal 
resources, and/or a prospectively valuable deposit of minerals shall be 
protected. Approval may be given orally by the authorized officer 
before abandonment operations are initiated. This oral request and 
approval shall be followed by a written Notice of Intent to Abandon 
filed not later than the fifth business day following oral approval. 
Failure to obtain approval prior to commencement of abandonment 
operations shall result in immediate assessment of under 43 CFR 
3163.1(b)(3). The hole shall be in static condition at the time any 
plugs are placed (this does not pertain to plugging lost circulation 
zones). Within 30 days of completion of abandonment, a subsequent 
report of abandonment shall be filed. Plugging design for an 
abandonment hole shall include the following:
    (1) Open hole. (i) A cement plug shall be placed to extend at least 
50 feet below the bottom (except as limited by total depth (TD) or 
plugged back total depth (PBTD)), to 50 feet above the top of:
    (A) Any zone encountered during drilling which contains fluid or 
gas with a potential to migrate; and (B) Any prospectively valuable 
deposit of minerals.
    (ii) All cement plugs, except the surface plug, shall have 
sufficient slurry volume to fill 100 feet of hole, plus an additional 
10 percent of slurry for each 1,000 feet of depth.
    (iii) No plug, except the surface plug, shall be less than 25 sacks 
without receiving specific approval from the authorized officer.
    (iv) Extremely thick sections of a single formation may be secured 
by placing 100-foot plugs across the top and bottom of the formation, 
and in accordance with paragraph (a)(1)(ii) of this section.
    (v) In the absence of productive zones or prospectively valuable 
deposits of minerals which otherwise require placement of cement plugs, 
long sections of open hole shall be plugged at least every 3,000 feet. 
Such plugs shall be placed across in-gauge sections of the hole, unless 
otherwise approved by the authorized officer.
    (2) Cased hole. A cement plug shall be placed opposite all open 
perforations and extend to a minimum of 50 feet below (except as 
limited by TD or PBTD) to 50 feet above the perforated interval. All 
cement plugs, except the surface plug, shall have sufficient slurry 
volume to fill 100 feet of hole, plus an additional 10 percent of 
slurry for each 1,000 feet of depth. In lieu of the cement plug, a 
bridge plug is acceptable, provided:
    (i) The bridge plug is set within 50 feet to 100 feet above the 
open perforations; (ii) The perforations are isolated from any open 
hole below; and (iii) The bridge plug is capped with 50 feet of cement. 
If a bailer is used to cap this plug, 35 feet of cement shall be 
sufficient.
    (3) Casing removed from hole. If any casing is cut and recovered, a 
cement plug shall be placed to extend at least 50 feet above and below 
the stub. The exposed hole resulting from the casing removal shall be 
secured as required in paragraphs (a)(1)(i) and (ii) of this section.
    (4) Cement plug. An additional cement plug placed to extend a 
minimum of 50 feet above and below the shoe of the surface casing (or 
intermediate string, as appropriate).
    (5) Annular space. No annular space that extends to the surface 
shall be left open to the drilled hole below. If this condition exists, 
a minimum of the top 50 feet of annulus shall be plugged with cement.
    (6) Isolating medium. Any cement plug which is the only isolating 
medium for a fresh water interval or a zone containing a prospectively 
valuable deposit of minerals shall be tested by tagging with the drill 
string. Any plugs placed where the fluid level will not remain static 
also shall be tested by either tagging the plug with the working pipe 
string, or pressuring to a minimum

[[Page 39537]]

pump (surface) pressure of 1,000 psi, with no more than a 10 percent 
drop during a 15-minute period (cased hole only). If the integrity of 
any other plug is questionable, or if the authorized officer has 
specific concerns for which he/she orders a plug to be tested, it shall 
be tested in the same manner.
    (7) Silica sand or silica flour. Silica sand or silica flour shall 
be added to cement exposed to bottom hole static temperatures above 
230[ordm] F to prevent heat degradation of the cement.
    (8) Surface plug. A cement plug of at least 50 feet shall be placed 
across all annuluses. The top of this plug shall be placed as near the 
eventual casing cutoff point as possible.
    (9) Mud. Each of the intervals between plugs shall be filled with 
mud of sufficient density to exert hydrostatic pressure exceeding the 
greatest formation pressure encountered while drilling such interval. 
In the absence of other information at the time plugging is approved, a 
minimum mud weight of 9 pounds per gallon shall be specified.
    (10) Surface cap. All casing shall be cut-off at the base of the 
cellar or 3 feet below final restored ground level (whichever is 
deeper). The well bore shall then be covered with a metal plate at 
least \1/4\ inch thick and welded in place, or a 4-inch pipe, 10-feet 
in length, 4 feet above ground and embedded in cement as specified by 
the authorized officer. The well location and identity shall be 
permanently inscribed. A weep hole shall be left if a metal plate is 
welded in place.
    (11) Cellar. The cellar shall be filled with suitable material as 
specified by the authorized officer and the surface restored in 
accordance with the instructions of the authorized officer.
    (b) Minimum standard. All plugging orders shall be strictly adhered 
to.

                      Table 1 to Sec.   3172.12(b)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Contingent upon       Prompt correction
                               circumstances.        required.
------------------------------------------------------------------------

Sec.  3172.13  Variances from minimum standards.

    (a) An operator may request the authorized officer to approve a 
variance from any of the minimum standards prescribed in Sec. Sec.  
3172.6 through 3172.12. All such requests shall be submitted in writing 
to the appropriate authorized officer and provide information as to the 
circumstances which warrant approval of the variance(s) requested and 
the proposed alternative methods by which the related minimum 
standard(s) are to be satisfied. The authorized officer, after 
considering all relevant factors, if appropriate, may approve the 
requested variance(s) if it is determined that the proposed 
alternative(s) meet or exceed the objectives of the applicable minimum 
standard(s).
    (b) Emergency or other situations of an immediate nature that could 
not be reasonably foreseen at the time of APD approval may receive oral 
approval. However, such requests shall be followed up by a written 
notice filed not later than the fifth business day following oral 
approval.

Appendix A to Subpart 3172--Diagrams of Choke Manifold Equipment

BILLING CODE 4331-29-P
Figure 1 to Appendix A to Subpart 3172--2M Choke Manifold Equipment

[[Page 39538]]

[GRAPHIC] [TIFF OMITTED] TR16JN23.000

Figure 2 to Appendix A to Subpart 3172--3M Choke Manifold Equipment
[GRAPHIC] [TIFF OMITTED] TR16JN23.001


[[Page 39539]]


Figure 3 to Appendix A to Subpart 3172--5M Choke Manifold Equipment
[GRAPHIC] [TIFF OMITTED] TR16JN23.002


[[Page 39540]]


Figure 4 to Appendix A to Subpart 3172--10M and 15M Choke Manifold 
Equipment
[GRAPHIC] [TIFF OMITTED] TR16JN23.003

BILLING CODE 4331-29-C

0
3. Add subparts 3176 and 3177 to read as follows

Subpart 3176--Onshore Oil and Gas Production: Hydrogen Sulfide 
Operations

Sec.
3176.1 Authority.
3176.2 Purpose.
3176.3 Scope.
3176.4 Definitions.
3176.5 Requirements.
3176.6 Applications, approvals, and reports.
3176.7 Public protection.
3176.8 Drilling/completion/workover requirements.
3176.9 Production requirements.
3176.10 Variances from requirements.
3176.11 Incorporation by reference.

    Authority:  25 U.S.C. 396d and 2107; 30 U.S.C. 189, 306, 359, 
and 1751; and 43 U.S.C. 1732(b), 1733, and 1740.


Sec.  3176.1  Authority.

    This subpart is established pursuant to the authority granted to 
the Secretary of the Interior through various Federal and Indian 
mineral leasing statutes and the Federal Oil and Gas Royalty Management 
Act of 1982. This authority has been delegated to the Bureau of Land 
Management and is implemented by the onshore oil and gas operating 
regulations contained in 43 CFR part 3160. More specifically, this 
subpart implements and supplements the provisions of 43 CFR 3162.1, 
3162.5-1(a), (c), and (d), 3162.5-2(a), and 3162.5-3.


Sec.  3176.2  Purpose.

    The purpose of this subpart is to protect public health and safety 
and those personnel essential to maintaining control of the well. This 
subpart identifies the Bureau of Land Management's uniform national 
requirements and minimum standards of performance expected from 
operators when conducting operations involving oil or gas that is known 
or could reasonably be expected to contain hydrogen sulfide 
(H2S) or which results in the emission of sulfur dioxide 
(SO2) as a result of flaring H2S. This subpart 
also identifies the gravity of violations, probable corrective 
action(s), and normal abatement periods.

[[Page 39541]]

Sec.  3176.3  Scope.

    (a) This subpart is applicable to all onshore Federal and Indian 
(except Osage Tribe) oil and gas leases when drilling, completing, 
testing, reworking, producing, injecting, gathering, storing, or 
treating operations are being conducted in zones which are known or 
could reasonably be expected to contain H2S or which, when 
flared, could produce SO2, in such concentrations that upon 
release could constitute a hazard to human life. The requirements and 
minimum standards of this subpart do not apply when operating in zones 
where H2S is presently known not to be present or cannot 
reasonably be expected to be present in concentrations of 100 parts per 
million (ppm) or more in the gas stream.
    (b) The requirements and minimum standards in this subpart do not 
relieve an operator from compliance with any applicable Federal, State, 
or local requirement(s) regarding H2S or SO2 
which are more stringent.


Sec.  3176.4  Definitions.

    As used in this subpart, the term:
    Authorized officer means any employee of the Bureau of Land 
Management authorized to perform the duties described in 43 CFR parts 
3000 and 3100 (43 CFR 3000.0-5).
    Christmas tree means an assembly of valves and fittings used to 
control production and provide access to the producing tubing string. 
The assembly includes all equipment above the tubinghead top flange.
    Dispersion technique means a mathematical representation of the 
physical and chemical transportation, dilution, and transformation of 
H2S gas emitted into the atmosphere.
    Escape rate means that the maximum volume (Q) used as the escape 
rate in determining the radius of exposure shall be that specified in 
paragraphs (1) through (4) of this definition, as applicable:
    (1) For a production facility, the escape rate shall be calculated 
using the maximum daily rate of gas produced through that facility or 
the best estimate thereof;
    (2) For gas wells, the escape rate shall be calculated by using the 
current daily absolute open-flow rate against atmospheric pressure;
    (3) For oil wells, the escape rate shall be calculated by 
multiplying the producing gas/oil ratio by the maximum daily production 
rate or best estimate thereof; or
    (4) For a well being drilled in a developed area, the escape rate 
may be determined by using the offset wells completed in the 
interval(s) in question.
    Essential personnel means those on-site personnel directly 
associated with the operation being conducted and necessary to maintain 
control of the well.
    Exploratory well means any well drilled beyond the known producing 
limits of a pool.
    Gas well means a well for which the energy equivalent of the gas 
produced, including the entrained liquid hydrocarbons, exceeds the 
energy equivalent of the oil produced.
    H2S Drilling Operations Plan means a written plan which provides 
for safety of essential personnel and for maintaining control of the 
well with regard to H2S and SO2.
    Lessee means a person or entity holding record title in a lease 
issued by the United States (43 CFR 3160.0-5).
    Major violation means noncompliance which causes or threatens 
immediate. substantial, and adverse impacts on public health and 
safety, the environment, production accountability, or royalty income 
(43 CFR 3160.0-5).
    Minor violation means noncompliance which does not rise to the 
level of a major violation (43 CFR 3160.0-5).
    Oil well means a well for which the energy equivalent of the oil 
produced exceeds the energy equivalent of the gas produced, including 
the entrained liquid hydrocarbons.
    Operating rights owner means a person or entity holding operating 
rights in a lease issued by the United States. A lessee may also be an 
operating rights owner if the operating rights in a lease or portion 
thereof have not been severed from record title (43 CFR 3160.0-5).
    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 he/she is responsible under the terms of the 
lease for the operations conducted on the leased lands or a portion 
thereof (43 CFR 3160.0-5).
    Potentially hazardous volume means a volume of gas of such 
H2S concentration and flow rate that it may result in radius 
of exposure-calculated ambient concentrations of 100 ppm H2S 
at any occupied residence, school, church, park, school bus stop, place 
of business, or other area where the public could reasonably be 
expected to frequent, or 500 ppm H2S at any Federal, State, 
County, or municipal road or highway.
    Production facilities means any wellhead, flowline, piping, 
treating, or separating equipment, water disposal pits, processing 
plant, or combination thereof prior to the approved measurement point 
for any lease, communitization agreement, or unit participating area.
    Prompt correction means immediate correction of violations, with 
operation suspended if required at the discretion of the authorized 
officer.
    Public Protection Plan means a written plan which provides for the 
safety of the potentially affected public with regard to H2S 
and SO2.
    Radius of exposure means the calculation resulting from using the 
following Pasquill-Gifford derived equation, or by such other method(s) 
as may be approved by the authorized officer:
    (1) For determining the 100 ppm radius of exposure where the 
H2S concentration in the gas stream is less than 10:

X = [1.589)(H2S concentration)(Q)]\(0.6258)\; or

    (2) For determining the 500 ppm radius of exposure where the 
H2S concentration in the gas stream is less than 10:

X = [(0.4546)(H2S concentration)(Q)]\(0.6258)\

Where:

X = radius of exposure in feet;
H2S Concentration = decimal equivalent of the mole or 
volume fractions of H2S in the gaseous mixture; and
Q = maximum volume of gas determined to be available for escape in 
cubic feet per day (at standard conditions of 14.73 psia and 
60[deg]F).

    (3) For determining the 100 ppm or the 500 ppm radius of exposure 
in gas streams containing H2S concentrations of 10 percent 
or greater, a dispersion technique that takes into account 
representative wind speed, direction, atmospheric stability, complex 
terrain, and other dispersion features shall be utilized. Such 
techniques may include, but shall not be limited to, one of a series of 
computer models outlined in the Environmental Protection Agency's 
``Guidelines on Air Quality Models'' (EPA-450/2-78-027R).
    (4) Where multiple H2S sources (i.e., wells, treatment 
equipment, flowlines, etc.) are present, the operator may elect to 
utilize a radius of exposure which covers a larger area than would be 
calculated using radius of exposure formula for each component part of 
the drilling/completion/workover/production system.
    (5) For a well being drilled in an area where insufficient data 
exits to calculate a radius of exposure, but where H2S could 
reasonably be expected to be present in concentrations in excess of 100 
ppm in the gas stream, a 100 ppm radius of exposure equal to 3,000 feet 
shall be assumed.

[[Page 39542]]

    Zones known not to contain H2S means geological formations in a 
field where prior drilling, logging, coring, testing, or producing 
operations have confirmed the absence of H2S-bearing zones 
that contain 100 ppm or more of H2S in the gas stream.
    Zones known to contain H2S means geological formations in a field 
where prior drilling, logging, coring, testing, or producing operations 
have confirmed that H2S-bearing zones will be encountered 
that contain 100 ppm or more of H2S in the gas stream.
    Zones which can reasonably be expected to contain H2S means 
geological formations in the area which have not had prior drilling, 
but prior drilling to the same formations in similar field(s) within 
the same geologic basin indicates there is a potential for 100 ppm or 
more of H2S in the gas stream.
    Zones which cannot reasonably be expected to contain H2S means 
geological formations in the area which have not had prior drilling, 
but prior drilling to the same formations in similar field(s) within 
the same geologic basin indicates there is not a potential for 100 ppm 
or more of H2S in the gas stream.


Sec.  3176.5  Requirements.

    The requirements of this subpart are the minimum acceptable 
standards with regard to H2S operations. This subpart also 
classifies violations as typically major or minor for purposes of the 
assessment and penalty provisions of 43 CFR part 3160, subpart 3163, 
specifies the corrective action which will probably be required, and 
establishes the normal abatement period following detection of a major 
or minor violation in which the violator may take such corrective 
action without incurring an assessment. However, the authorized officer 
may, after consideration of all appropriate factors, require reasonable 
and necessary standards, corrective actions, and abatement periods that 
may, in some cases, vary from those specified in this subpart that he/
she determines to be necessary to protect public health and safety, the 
environment, or to maintain control of a well to prevent waste of 
Federal mineral resources. To the extent such standards, actions, or 
abatement periods differ from those set forth in this subpart, they may 
be subject to review pursuant to 43 CFR 3165.3.


Sec.  3176.6  Applications, approvals, and reports.

    (a) Drilling. For proposed drilling operations where formations 
will be penetrated which have zones known to contain or which could 
reasonably be expected to contain concentrations of H2S of 
100 ppm or more in the gas stream, the H2S Drilling 
Operation Plan and, if the applicability criteria in Sec.  3176.7(a) 
are met, a Public Protection Plan as outlined in Sec.  3176.7(b), shall 
be submitted as part of the Application for Permit to Drill (APD) 
(refer to subpart 3171 of this part). In cases where multiple filings 
are being made with a single drilling plan, a single H2S 
Drilling Operations Plan and, if applicable, a single Public Protection 
Plan may be submitted for the lease, communitization agreement, unit, 
or field in accordance with subpart 3171. Failure to submit either the 
H2S Drilling Operations Plan or the Public Protection Plan 
when required by this subpart shall result in an incomplete APD 
pursuant to 43 CFR 3162.3-1.
    (b) Drilling plan. The H2S Drilling Operations Plan 
shall fully describe the manner in which the requirements and minimum 
standards in Sec.  3176.8, shall be met and implemented. As required by 
this subpart (Sec.  3176.8), the following must be submitted in the 
H2S Drilling Operations Plan:
    (1) Statement that all personnel shall receive proper 
H2S training in accordance, with Sec.  3176.8(c)(1).
    (2) A legible well site diagram of accurate scale (may be included 
as part of the well site layout as required by subpart 3171 of this 
part) showing the following:
    (i) Drill rig orientation;
    (ii) Prevailing wind direction;
    (iii) Terrain of surrounding area;
    (iv) Location of all briefing areas (designate primary briefing 
area);
    (v) Location of access road(s) (including secondary egress);
    (vi) Location of flare line(s) and pit(s);
    (vii) Location of caution and/or danger signs; and
    (viii) Location of wind direction indicators.
    (3) As required by this subpart, a complete description of the 
following H2S safety equipment/systems:
    (i) Well control equipment. (A) Flare line(s) and means of 
ignition;
    (B) Remote controlled choke;
    (C) Flare gun/flares; and
    (D) Mud-gas separator and rotating head (if exploratory well);
    (ii) Protective equipment for essential personnel. (A) Location, 
type, storage, and maintenance of all working and escape breathing 
apparatus; and
    (B) Means of communication when using protective breathing 
apparatus;
    (iii) H2S detection and monitoring equipment. (A) H2S 
sensors and associated audible/visual alarm(s); and
    (B) Portable H2S and SO2 monitor(s);
    (iv) Visual warning systems. (A) Wind direction indicators; and (B) 
Caution/danger sign(s) and flag(s);
    (v) Mud program. (A) Mud system and additives; and (B) Mud 
degassing system;
    (vi) Metallurgy. Metallurgical properties of all tubular goods and 
well control equipment which could be exposed to H2S (Sec.  
3176.8(d)(3)); and
    (vii) Communication. Means of communication from wellsite.
    (4) Plans for well testing.
    (c) Production. (1) For each existing production facility having an 
H2S concentration of 100 ppm or more in the gas stream, the 
operator shall calculate and submit the calculations to the authorized 
officer within 180 days of January 22, 1991, the 100 and, if 
applicable, the 500 ppm radii of exposure for all facilities to 
determine if the applicability criteria in Sec.  3176.7(a) are met. 
Radii of exposure calculations shall not be required for oil or water 
flowlines. Further, if any of the applicability criteria (Sec.  
3176.7(a)) are met, the operator shall submit a complete Public 
Protection Plan which meets the requirements of Sec.  3176.7(b)(2) to 
the authorized officer within 1 year of January 22, 1991. For 
production facilities constructed after January 22, 1991, and meeting 
the minimum concentration (100 ppm in gas stream), the operator shall 
report the radii of exposure calculations, and if the applicability 
criteria in Sec.  3176.7(a) are met, submit a complete Public 
Protection Plan (Sec.  3176.7(b)(2)) to the authorized officer within 
60 days after completion of production facilities.

                     Table 1 to Sec.   3176.6(c)(1)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor for failure to submit   Submit required       20 to 40 days.
 required information.         information (radii
                               of exposure and/or
                               complete Public
                               Protection Plan).
------------------------------------------------------------------------


[[Page 39543]]

    (2) The operator shall initially test the H2S 
concentration of the gas stream for each well or production facility 
and shall make the results available to the authorized officer, upon 
request.

                     Table 2 to Sec.   3176.6(c)(2)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Test gas from well    20 to 40 days.
                               or production
                               facility.
------------------------------------------------------------------------

    (3) If operational or production alterations result in a 5 percent 
or more increase in the H2S concentration (i.e., well 
recompletion, increased gas-to-oil ratios) or the radius of exposure as 
calculated under paragraph (c)(1) of this section, notification of such 
changes shall be submitted to the authorized officer within 60 days 
after identification of the change.

                     Table 3 to Sec.   3176.6(c)(3)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Submit information    20 to 40 days.
                               to authorized
                               officer.
------------------------------------------------------------------------

    (d) Plans and reports. (1) H2S Drilling Operations 
Plan(s) or Public Protection Plan(s) shall be reviewed by the operator 
on an annual basis and a copy of any necessary revisions shall be 
submitted to the authorized officer upon request.

                     Table 4 to Sec.   3176.6(d)(1)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Submit information    20 to 40 days.
                               to authorized
                               officer.
------------------------------------------------------------------------

    (2) Any release of a potentially hazardous volume of H2S 
shall be reported to the authorized officer as soon as practicable, but 
no later than 24 hours following identification of the release.

                     Table 5 to Sec.   3176.6(d)(2)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Report undesirable    24 hours.
                               event to the
                               authorized officer.
------------------------------------------------------------------------

Sec.  3176.7  Public protection.

    (a) Applicability criteria. For both drilling/completion/workover 
and production operations, the H2S radius of exposure shall 
be determined on all wells and production facilities subject to this 
subpart. A Public Protection Plan (paragraph (b) of this section) shall 
be required when any of the following conditions apply:
    (1) The 100 ppm radius of exposure is greater than 50 feet and 
includes any occupied residence, school, church, park, school bus stop, 
place of business, or other areas where the public could reasonably be 
expected to frequent;
    (2) The 500 ppm radius of exposure is greater than 50 feet and 
includes any part of a Federal, State, County, or municipal road or 
highway owned and principally maintained for public use; or
    (3) The 100 ppm radius of exposure is equal to or greater than 
3,000 feet where facilities or roads are principally maintained for 
public use. Additional specific requirements for drilling/completion/
workover or producing operations are described in Sec. Sec.  3176.8 and 
3176.9, respectively.
    (b) Public Protection Plan--(1) Plan submission/implementation/
availability. (i) A Public Protection Plan providing details of actions 
to alert and protect the public in the event of a release of a 
potentially hazardous volume of H2S shall be submitted to 
the authorized officer as required by Sec.  3176.6(a) for drilling or 
by Sec.  3176.6(c) for producing operations when the applicability 
criteria established in paragraph (a) of this section are met. One plan 
may be submitted for each well, lease, communitization agreement, unit, 
or field, at the operator's discretion. The Public Protection Plan 
shall be maintained and updated, in accordance with Sec.  3176.6(d).
    (ii) The Public Protection Plan shall be activated immediately upon 
detection of release of a potentially hazardous volume of 
H2S.

                   Table 1 to Sec.   3176.7(b)(1)(ii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Immediate             Prompt correction
                               implementation of     required.
                               the Public
                               Protection Plan.
------------------------------------------------------------------------


[[Page 39544]]

    (iii) A copy of the Public Protection Plan shall be available at 
the drilling/completion site for such wells and at the facility, field 
office, or with the pumper, as appropriate, for producing wells, 
facilities, and during workover operations.

                   Table 2 to Sec.   3176.7(b)(1)(iii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Make copy of Plan     24 hours (drilling/
                               available.            completion/
                                                     workover), 5 to 7
                                                     days (production).
------------------------------------------------------------------------

    (2) Plan content. (i) The details of the Public Protection Plan may 
vary according to the site-specific characteristics (concentration, 
volume, terrain, etc.) expected to be encountered and the number and 
proximity of the population potentially at risk. In the areas of high 
population density or in other special cases, the authorized officer 
may require more stringent plans to be developed. These may include 
public education seminars, mass alert systems, and use of sirens, 
telephone, radio, and television depending on the number of people at 
risk and their location with respect to the well site.
    (ii) The Public Protection Plan shall include:
    (A) The responsibilities and duties of key personnel, and 
instructions for alerting the public and requesting assistance;
    (B) A list of names and telephone numbers of residents, those 
responsible for safety of public roadways, and individuals responsible 
for the safety of occupants of buildings within the 100 ppm radius of 
exposure (e.g., school principals, building managers, etc.) as defined 
by the applicability criteria in paragraph (a) of this section. The 
operator shall ensure that those who are at the greatest risk are 
notified first. The Plan shall define when and how people are to be 
notified in case of an H2S emergency;
    (C) A telephone call list (including telephone numbers) for 
requesting assistance from law enforcement, fire department, and 
medical personnel and Federal and State regulatory agencies, as 
required. Necessary information to be communicated and the emergency 
responses that may be required shall be listed. This information shall 
be based on previous contacts with these organizations;
    (D) A legible 100 ppm (or 3,000 feet, if conditions unknown) radius 
plat of all private and public dwellings, schools, roads, recreational 
areas, and other areas where the public might reasonably be expected to 
frequent;
    (E) Advance briefings, by visit, meeting, or letter to the people 
identified in paragraph (b)(2)(ii)(B) of this section, including:
    (1) Hazards of H2S and SO2;
    (2) Necessity for an emergency action plan;
    (3) Possible sources of H2S and S02;
    (4) Instructions for reporting a leak to the operator;
    (5) The manner in which the public shall be notified of an 
emergency; and
    (6) Steps to be taken in case of an emergency, including evacuation 
of any people;
    (F) Guidelines for the ignition of the H2S bearing gas. 
The Plan shall designate the title or position of the person(s) who has 
the authority to ignite the escaping gas and define when, how, and by 
whom the gas is to be ignited;
    (G) Additional measures necessary following the release of 
H2S and SO2 until the release is contained are as 
follows:
    (1) Monitoring of H2S and SO2 levels and wind 
direction in the affected area;
    (2) Maintenance of site security and access control;
    (3) Communication of status of well control; and
    (4) Other necessary measures as required by the authorized officer; 
and
    (H) For production facilities, a description of the detection 
system(s) utilized to determine the concentration of H2S 
released.


Sec.  3176.8  Drilling/completion/workover requirements.

    (a) General. (1) A copy of the H2S Drilling Operations 
Plan shall be available during operations at the well site, beginning 
when the operation is subject to the terms of this subpart (i.e., 3 
days or 500 feet of known or probable H2S zone).

                     Table 1 to Sec.   3176.8(a)(1)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Make copy of Plan     24 hours.
                               available.
------------------------------------------------------------------------

    (2) Initial H2S training shall be completed and all 
H2S related safety equipment shall be installed, tested, and 
operational when drilling reaches a depth of 500 feet above, or 3 days 
prior to penetrating (whichever comes first) the first zone containing 
or reasonably expected to contain H2S. A specific 
H2S operations plan for completion and workover operations 
will not be required for approval. For completion and workover 
operations, all required equipment and warning systems shall be 
operational and training completed prior to commencing operations.

                     Table 2 to Sec.   3176.8(a)(2)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Implement H2S         Prompt correction
                               operational           required.
                               requirements, such
                               as completion of
                               training and/or
                               installation,
                               repair, or
                               replacement of
                               equipment, as
                               necessary.
------------------------------------------------------------------------


[[Page 39545]]

    (3) If H2S was not anticipated at the time the APD was 
approved, but is encountered in excess of 100 ppm in the gas stream, 
the following measures shall be taken:
    (i) The operator shall immediately ensure control of the well, 
suspend drilling ahead operations (unless detrimental to well control), 
and obtain materials and safety equipment to bring the operations into 
compliance with the applicable provisions of this subpart.

                    Table 3 to Sec.   3176.8(a)(3)(i)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Implement H2S         Prompt correction
                               operational           required.
                               requirements, as
                               applicable.
------------------------------------------------------------------------

    (ii) The operator shall notify the authorized officer of the event 
and the mitigating steps that have or are being taken as soon as 
possible, but no later than the next business day. If said notification 
is subsequent to actual resumption of drilling operations, the operator 
shall notify the authorized officer of the date that drilling was 
resumed no later than the next business day.

                   Table 4 to Sec.   3176.8(a)(3)(ii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Notify authorized     24 hours.
                               officer.
------------------------------------------------------------------------

    (iii) It is the operator's responsibility to ensure that the 
applicable requirements of this subpart have been met prior to the 
resumption of drilling ahead operations. Drilling ahead operations will 
not be suspended pending receipt of a written H2S Drilling 
Operations Plan(s) and, if necessary, Public Protection Plan(s) 
provided that complete copies of the applicable Plan(s) are filed with 
the authorized officer for approval within 5 business days following 
resumption of drilling ahead operations.

                   Table 5 to Sec.   3176.8(a)(3)(iii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Submit plans to       5 days.
                               authorized officer.
------------------------------------------------------------------------

    (b) Locations. (1) Where practical, 2 roads shall be established, 1 
at each end of the location, or as dictated by prevailing winds and 
terrain. If an alternate road is not practical, a clearly marked 
footpath shall be provided to a safe area. The purpose of such an 
alternate escape route is only to provide a means of egress to a safe 
area.

                     Table 6 to Sec.   3176.8(b)(1)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Designate or          24 hours.
                               establish an
                               alternate escape
                               route.
------------------------------------------------------------------------

    (2) The alternate escape route shall be kept passable at all times.

                     Table 7 to Sec.   3176.8(b)(2)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Make alternate        24 hours.
                               escape route
                               passable.
------------------------------------------------------------------------

    (3) For workovers, a secondary means of egress shall be designated.

                     Table 8 to Sec.   3176.8(b)(3)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Designate secondary   24 hours.
                               means of egress.
------------------------------------------------------------------------


[[Page 39546]]

    (c) Personnel protection--(1) Training program. The operator shall 
ensure that all personnel who will be working at the wellsite will be 
properly trained in H2S drilling and contingency procedures 
in accordance with the general training requirements outlined in API 
RP-49, Section 2 (incorporated by reference, see Sec.  3176.11). (The 
use of later editions of API RP-49 is deemed to comply with the 
requirements of this paragraph (c)(1).) The operator also shall ensure 
that the training will be accomplished prior to a well coming under the 
terms of this subpart (i.e., 3 days or 500 feet of known or probable 
H2S zone). In addition to the requirements of API RP-49, a 
minimum of an initial training session and weekly H2S and 
well control drills for all personnel in each working crew shall be 
conducted. The initial training session for each well shall include a 
review of the site-specific Drilling Operations Plan and, if 
applicable, the Public Protection Plan.

                     Table 9 to Sec.   3176.8(c)(1)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Train all personnel   Prompt correction
                               and conduct drills.   required.
------------------------------------------------------------------------

    (i) All training sessions and drills shall be recorded on the 
driller's log or its equivalent.

                   Table 10 to Sec.   3176.8(c)(1)(i)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Record on driller's   24 hours.
                               log or equivalent.
------------------------------------------------------------------------

    (ii) For drilling/completion/workover wells, at least 2 briefing 
areas shall be designated for assembly of personnel during emergency 
conditions, located a minimum of 150 feet from the well bore, and 1 of 
the briefing areas shall be upwind of the well at all times. The 
briefing area located most normally upwind shall be designated as the 
``primary briefing area.''

                   Table 11 to Sec.   3176.8(c)(1)(ii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Designate briefing    24 hours.
                               areas.
------------------------------------------------------------------------

    (iii) One person (by job title) shall be designated and identified 
to all on-site personnel as the person primarily responsible for the 
overall operation of the on-site safety and training programs.

                  Table 12 to Sec.   3176.8(c)(1)(iii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Designate safety      24 hours.
                               responsibilities.
------------------------------------------------------------------------

    (2) Protective equipment. (i) The operator shall ensure that proper 
respiratory protection equipment program is implemented, in accordance 
with ANSI Z88.2-1992 (incorporated by reference, see Sec.  3176.11). 
(The use of ANSI Z88.2-1980 is deemed to comply with the requirements 
of this paragraph (d)(2)(i).) Proper protective breathing apparatus 
shall be readily accessible to all essential personnel on a drilling/
completion/workover site. Escape and pressure-demand type working 
equipment shall be provided for essential personnel in the 
H2S environment to maintain or regain control of the well. 
For pressure-demand type working equipment those essential personnel 
shall be able to obtain a continuous seal to the face with the 
equipment. The operator shall ensure that service companies have the 
proper respiratory protection equipment when called to the location. 
Lightweight, escape-type, self-contained breathing apparatus with a 
minimum of 5-minute rated supply shall be readily accessible at a 
location for the derrickman and at any other location(s) where escape 
from an H2S contaminated atmosphere would be difficult.

                   Table 13 to Sec.   3176.8(c)(2)(i)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Acquire, repair, or   Prompt correction
                               replace equipment,    required.
                               as necessary.
------------------------------------------------------------------------


[[Page 39547]]

    (ii) Storage and maintenance of protective breathing apparatus 
shall be planned to ensure that at least 1 working apparatus per person 
is readily available for all essential personnel.

                   Table 14 to Sec.   3176.8(c)(2)(ii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Acquire or rearrange  Prompt correction
                               equipment, as         required.
                               necessary.
------------------------------------------------------------------------

    (iii) The following additional safety equipment shall be available 
for use:
    (A) Effective means of communication when using protective 
breathing apparatus;
    (B) Flare gun and flares to ignite the well; and
    (C) Telephone, radio, mobile phone, or any other device that 
provides communication from a safe area at the rig location, where 
practical.

                  Table 15 to Sec.   3176.8(c)(2)(iii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Acquire, repair, or   24 hours.
                               replace equipment.
------------------------------------------------------------------------

    (3) H2S detection and monitoring equipment. (i) Each drilling/
completion site shall have an H2S detection and monitoring 
system that automatically activates visible and audible alarms when the 
ambient air concentration of H2S reaches the threshold 
limits of 10 and 15 ppm in air, respectively. The sensors shall have a 
rapid response time and be capable of sensing a minimum of 10 ppm of 
H2S in ambient air, with at least 3 sensing points located 
at the shale shaker, rig floor, and bell nipple for a drilling site and 
the cellar, rig floor, and circulating tanks or shale shaker for a 
completion site. The detection system shall be installed, calibrated, 
tested, and maintained in accordance with the manufacturer's 
recommendations.

                   Table 16 to Sec.   3176.8(c)(3)(i)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install, repair,      Prompt correction
                               calibrate, or         required.
                               replace equipment,
                               as necessary.
------------------------------------------------------------------------

    (ii) All tests of the H2S monitoring system shall be 
recorded on the driller's log or its equivalent.

                   Table 17 to Sec.   3176.8(c)(3)(ii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Record on driller's   24 hours.
                               log or equivalent.
------------------------------------------------------------------------

    (iii) For workover operations, 1 operational sensing point shall be 
located as close to the wellbore as practical. Additional sensing 
points may be necessary for large and/or long-term operations.

                  Table 18 to Sec.   3176.8(c)(3)(iii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install, repair,      Prompt correction
                               calibrate, or         required.
                               replace equipment,
                               as necessary.
------------------------------------------------------------------------

    (4) Visible warning system. (i) Equipment to indicate wind 
direction at all times shall be installed at prominent locations and 
shall be visible at all times during drilling operations. At least 2 
such wind direction indicators (i.e., windsocks, windvanes, pennants 
with tailstreamers, etc.) shall be located at separate elevations 
(i.e., near ground level, rig floor, and/or treetop height). At least 1 
wind direction indicator shall be clearly visible from all principal 
working areas at all times so that wind direction can be easily 
determined. For completion/workover operations, 1 wind direction 
indicator shall suffice, provided it is visible from all principal 
working areas on the location. In addition, a wind direction indicator 
at each of the 2 briefing areas shall be provided if the wind direction

[[Page 39548]]

indicator(s) previously required in this paragraph (c)(4)(i) are not 
visible from the briefing areas.

                   Table 19 to Sec.   3176.8(c)(4)(i)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install, repair,      24 hours.
                               move, or replace
                               wind direction
                               indicator(s), as
                               necessary.
------------------------------------------------------------------------

    (ii) At any time when the terms of this subpart are in effect, 
operational danger or caution sign(s) shall be displayed along all 
controlled accesses to the site.

                   Table 20 to Sec.   3176.8(c)(4)(ii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Erect appropriate     24 hours.
                               signs.
------------------------------------------------------------------------

    (iii) Each sign shall be painted a high visibility red, black and 
white, or yellow with black lettering.

                  Table 21 to Sec.   3176.8(c)(4)(iii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Replace or alter      5 to 20 days.
                               sign, as necessary.
------------------------------------------------------------------------

    (iv) The sign(s) shall be legible and large enough to be read by 
all persons entering the well site and be placed a minimum of 200 feet 
but no more than 500 feet from the well site and at a location which 
allows vehicles to turn around at a safe distance prior to reaching the 
site.

                   Table 22 to Sec.   3176.8(c)(4)(iv)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Replace, alter, or    24 hours.
                               move sign, as
                               necessary.
------------------------------------------------------------------------

    (v) The sign(s) shall read: ``DANGER--POISON GAS--HYDROGEN 
SULFIDE,'' and in smaller lettering: ``Do Not Approach If Red Flag is 
Flying'' or equivalent language if approved by the authorized officer. 
Where appropriate, bilingual or multilingual danger sign(s) shall be 
used.

                   Table 23 to Sec.   3176.8(c)(4)(v)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Alter sign(s), as     5 to 20 days.
                               necessary.
------------------------------------------------------------------------

    (vi) All sign(s) and, when appropriate, flag(s) shall be visible to 
all personnel approaching the location under normal lighting and 
weather conditions.

                   Table 24 to Sec.   3176.8(c)(4)(vi)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Erect or move         24 hours.
                               sign(s) and/or
                               flag(s), as
                               necessary.
------------------------------------------------------------------------

    (vii) When H2S is detected in excess of 10 ppm at any 
detection point, red flag(s) shall be displayed.

[[Page 39549]]



                  Table 25 to Sec.   3176.8(c)(4)(vii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Display red flag....  Prompt correction
                                                     required.
------------------------------------------------------------------------

    (5) Warning system response. When H2S is detected in 
excess of 10 ppm at any detection point, all non-essential personnel 
shall be moved to a safe area and essential personnel (i.e., those 
necessary to maintain control of the well) shall wear pressure-demand 
type protective breathing apparatus. Once accomplished, operations may 
proceed.

                     Table 26 to Sec.   3176.8(c)(5)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Move non-essential    Prompt correction
                               personnel to safe     required.
                               area and mask-up
                               essential personnel.
------------------------------------------------------------------------

    (d) Operating procedures and equipment--(1) General/operations. 
Drilling/completion/workover operations in H2S areas shall 
be subject to the following requirements:
    (i) If zones containing in excess of 100 ppm of H2S gas 
are encountered while drilling with air, gas, mist, other nonmud 
circulating mediums or aerated mud, the well shall be killed with a 
water- or oil-based mud and mud shall be used thereafter as the 
circulating medium for continued drilling.

                   Table 27 to Sec.   3176.8(d)(1)(i)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Convert to            Prompt correction
                               appropriate fluid     required.
                               medium.
------------------------------------------------------------------------

    (ii) A flare system shall be designed and installed to safely 
gather and burn H2S-bearing gas.

                   Table 28 to Sec.   3176.8(d)(1)(ii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install flare system  Prompt correction
                                                     required.
------------------------------------------------------------------------

    (iii) Flare lines shall be located as far from the operating site 
as feasible and in a manner to compensate for wind changes. The flare 
line(s) mouth(s) shall be located not less than 150 feet from the 
wellbore unless otherwise approved by the authorized officer. Flare 
lines shall be straight unless targeted with running tees.

                  Table 29 to Sec.   3176.8(d)(1)(iii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Adjust flare line(s)  24 hours.
                               as necessary.
------------------------------------------------------------------------

    (iv) The flare system shall be equipped with a suitable and safe 
means of ignition.

                   Table 30 to Sec.   3176.8(d)(1)(iv)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install, repair, or   24 hours.
                               replace equipment,
                               as necessary.
------------------------------------------------------------------------

    (v) Where noncombustible gas is to be flared, the system shall be 
provided supplemental fuel to maintain ignition.

[[Page 39550]]



                   Table 31 to Sec.   3176.8(d)(1)(v)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Acquire supplemental  24 hours.
                               fuel.
------------------------------------------------------------------------

    (vi) At any wellsite where SO2, may be released as a 
result of flaring of H2S during drilling, completion, or 
workover operations, the operator shall make SO2, portable 
detection equipment available for checking the SO2 level in 
the flare impact area.

                   Table 32 to Sec.   3176.8(d)(1)(vi)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Acquire, repair, or   24 hours to 3 days.
                               replace equipment
                               as necessary.
------------------------------------------------------------------------

    (vii) If the flare impact area reaches a sustained ambient 
threshold level of 2 ppm or greater of SO2 in air and 
includes any occupied residence, school, church, park, or place of 
business, or other area where the public could reasonably be expected 
to frequent, the Public Protection Plan shall be implemented.

                  Table 33 to Sec.   3176.8(d)(1)(vii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Contain SO2 release   Prompt correction
                               and/or implement      required.
                               Public Protection
                               Plan.
------------------------------------------------------------------------

    (viii) A remote controlled choke shall be installed for all 
H2S drilling and, where feasible, for completion operations. 
A remote-controlled valve may be used in lieu of this requirement for 
completion operations.

                  Table 34 to Sec.   3176.8(d)(1)(viii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install, repair, or   Prompt correction
                               replace equipment,    required.
                               as necessary.
------------------------------------------------------------------------

    (ix) Mud-gas separators and rotating heads shall be installed and 
operable for all exploratory wells.

                   Table 35 to Sec.   3176.8(d)(1)(ix)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install, repair, or   Prompt correction
                               replace equipment,    required.
                               as necessary.
------------------------------------------------------------------------

    (2) Mud program. (i) A pH of 10 or above in a fresh water-base mud 
system shall be maintained to control corrosion, H2S gas 
returns to surface, and minimize sulfide stress cracking and 
embrittlement unless other formation conditions or mud types justify to 
the authorized officer a lesser pH level is necessary.

                   Table 36 to Sec.   3176.8(d)(2)(i)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Adjust pH...........  Prompt correction
                                                     required.
------------------------------------------------------------------------

    (ii) Drilling mud containing H2S gas shall be degassed 
in accordance with API RP-49, sec. 5.14 (incorporated by reference, see 
Sec.  3176.11), at an optimum location for the rig configuration. These 
gases shall be piped into the flare system. (The use of later editions 
of API RP-49 is deemed to comply with the requirements of this 
paragraph (d)(2)(ii).)

[[Page 39551]]



                   Table 37 to Sec.   3176.8(d)(2)(ii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install, repair, or   24 hours.
                               replace equipment,
                               as necessary.
------------------------------------------------------------------------

    (iii) Sufficient quantities of mud additives shall be maintained on 
location to scavenge and/or neutralize H2S where formation 
pressures are unknown.

                  Table 38 to Sec.   3176.8(d)(2)(iii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Obtain proper mud     24 hours.
                               additives.
------------------------------------------------------------------------

    (3) Metallurgical equipment. (i) All equipment that has the 
potential to be exposed to H2S shall be suitable for 
H2S service. Equipment which shall meet these metallurgical 
standards include the drill string, casing, wellhead, blowout preventer 
assembly, casing head and spool, rotating head, kill lines, choke, 
choke manifold and lines, valves, mud-gas separators, drill-stem test 
tools, test units, tubing, flanges, and other related equipment.
    (ii) To minimize stress corrosion cracking and/or H2S 
embrittlement, the equipment shall be constructed of material whose 
metallurgical properties are chosen with consideration for both an 
H2S working environment and the anticipated stress. The 
metallurgical properties of the materials used shall conform to NACE MR 
0175-2021 (incorporated by reference, see Sec.  3176.11). (The use of 
NACE MR 0175-90 through NACE MR 0175-2021 is deemed to comply with the 
requirements of this paragraph (d)(3)(ii).) These metallurgical 
properties include the grade of steel, the processing method (rolled, 
normalized, tempered, and/or quenched), and the resulting strength 
properties. The working environment considerations include the 
H2S concentration, the well fluid pH, and the wellbore 
pressures and temperatures. Elastomers, packing, and similar inner 
parts exposed to H2S shall be resistant at the maximum 
anticipated temperature of exposure. The manufacturer's verification of 
design for use in an H2S environment shall be sufficient 
verification of suitable service in accordance with this subpart.

                   Table 39 to Sec.   3176.8(d)(3)(ii)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Install, repair, or   Prompt correction
                               replace appropriate   required.
                               equipment, as
                               necessary.
------------------------------------------------------------------------

    (4) Well testing in an H2S environment. Testing shall be 
performed with a minimum number of personnel in the immediate vicinity 
which are necessary to safely and adequately operate the test 
equipment. Except with prior approval by the authorized officer, the 
drill-stem testing of H2S zones shall be conducted only 
during daylight hours and formation fluids shall not be flowed to the 
surface (closed chamber only).

                     Table 40 to Sec.   3176.8(d)(4)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Terminate the well    Prompt correction
                               test.                 required.
------------------------------------------------------------------------

Sec.  3176.9  Production requirements.

    (a) General. (1) All existing production facilities which do not 
currently meet the requirements and minimum standards set forth in this 
section shall be brought into conformance within 1 year after January 
22, 1991. All existing equipment that is in a safe working condition as 
of January 22, 1991, is specifically exempt from the metallurgical 
requirements prescribed in paragraph (c)(7) of this section.

                     Table 1 to Sec.   3176.9(a)(1)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Bring facility into   60 days.
                               compliance.
------------------------------------------------------------------------

    (2) Production facilities constructed after January 22, 1991, shall 
be designed, constructed, and operated to meet the requirements and 
minimum standards set forth in this section. Any variations from the 
standards or

[[Page 39552]]

established time frames shall be approved by the authorized officer in 
accordance with the provisions of Sec.  3176.10. Except for storage 
tanks, a determination of the radius of exposure for all production 
facilities shall be made in the manner prescribed in Sec.  3176.4.

                     Table 2 to Sec.   3176.9(a)(2)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Bring facility into   60 days.
                               compliance.
------------------------------------------------------------------------

    (3) At any production facility or storage tank(s) where the 
sustained ambient H2S concentration is in excess of 10 ppm 
at 50 feet from the production facility or storage tank(s) as measured 
at ground level under calm (1 mph) conditions, the operator shall 
collect or reduce vapors from the system and they shall be sold, 
beneficially used, reinjected, or flared provided terrain and 
conditions permit.

                     Table 3 to Sec.   3176.9(a)(3)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major, if the authorized      Bring facility into   3 days for major, 30
 officer determines that a     compliance.           days for minor.
 health or safety problem to
 the public is imminent,
 otherwise minor.
------------------------------------------------------------------------

    (b) Storage tanks. Storage tanks containing produced fluids and 
utilized as part of a production operation and operated at or near 
atmospheric pressure, where the vapor accumulation has an 
H2S concentration in excess of 500 ppm in the tank, shall be 
subject to the following:
    (1) No determination of a radius of exposure need be made for 
storage tanks.
    (2) All stairs/ladders leading to the top of storage tanks shall be 
chained and/or marked to restrict entry. For any storage, tank(s) which 
require fencing (see paragraph (b)(6) of this section), a danger sign 
posted at the gate(s) shall suffice in lieu of this requirement.

                     Table 4 to Sec.   3176.9(b)(2)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Chain or mark         5 to 20 days.
                               stair(s)/ladder(s)
                               or post sign, as
                               necessary.
------------------------------------------------------------------------

    (3) A danger sign shall be posted on or within 50 feet of the 
storage tank(s) to alert the public of the potential H2S 
danger. For any storage tank(s) which require fencing (see paragraph 
(b)(6) of this section), a danger sign posted at the locked gate(s) 
shall suffice in lieu of this requirement.

                     Table 5 to Sec.   3176.9(b)(3)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Post or move          5 to 20 days.
                               sign(s), as
                               necessary.
------------------------------------------------------------------------

    (4) The sign(s) shall be painted in high-visibility red, black, and 
white. The sign(s) shall read: ``DANGER--POISON GAS--HYDROGEN SULFIDE'' 
or equivalent language if approved by the authorized officer. Where 
appropriate, bilingual or multilingual warning signs shall be used.

                     Table 6 to Sec.   3176.9(b)(4)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Post, move, replace,  20 to 40 days.
                               or alter sign(s),
                               as necessary.
------------------------------------------------------------------------

    (5) At least 1 permanent wind direction indicator shall be 
installed so that wind direction can be easily determined at or 
approaching the storage tank(s).

[[Page 39553]]



                     Table 7 to Sec.   3176.9(b)(5)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install, repair, or   20 to 40 days.
                               replace wind
                               direction
                               indicator, as
                               necessary.
------------------------------------------------------------------------

    (6) A minimum 5-foot chain-link, 5-strand barbed wire, or 
comparable type fence and gate(s) that restrict(s) public access shall 
be required when storage tanks are located within \1/4\ mile of or 
contained inside a city or incorporated limits of a town or within \1/
4\ mile of an occupied residence, school, church, park, playground, 
school bus stop, place of business, or where the public could 
reasonably be expected to frequent.

                     Table 8 to Sec.   3176.9(b)(6)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install, repair, or   20 to 40 days.
                               replace fence and/
                               or gate(s), as
                               necessary.
------------------------------------------------------------------------

    (7) Gate(s), as required by paragraph (b)(6) of this section, shall 
be locked when unattended by the operator.

                     Table 9 to Sec.   3176.9(b)(7)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Lock gate...........  24 hours.
------------------------------------------------------------------------

    (c) Production facilities. Production facilities containing 100 ppm 
or more of H2S in the gas stream shall be subject to the 
following:
    (1) Danger signs as specified in paragraph (b)(4) of this section 
shall be posted on or within 50 feet of each production facility to 
alert the public of the potential H2S danger. In the event 
the storage tanks and production facilities are located at the same 
site, 1 such danger sign shall suffice. Further, for any facilities 
which require fencing (paragraph (b)(6) of this section), 1 such danger 
sign at the gate(s) shall suffice in lieu of this requirement.

                     Table 10 to Sec.   3176.9(c)(1)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Post, move, or alter  5 to 20 days.
                               sign(s), as
                               necessary.
------------------------------------------------------------------------

    (2) Danger signs, as specified in paragraph (b)(4) of this section, 
shall be required for well flowlines and lease gathering lines that 
carry H2S gas. Placement shall be where said lines cross 
public or lease roads. The signs shall be legible and shall contain 
sufficient additional information to permit a determination of the 
owner of the line.

                     Table 11 to Sec.   3176.9(c)(2)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Post, move, or alter  5 to 20 days.
                               sign(s), as
                               necessary.
------------------------------------------------------------------------

    (3) Fencing and gate(s), as specified in paragraph (b)(6) of this 
section, shall be required when production facilities are located 
within \1/4\ mile of or contained inside a city or incorporated limits 
of a town or within \1/4\ mile of an occupied residence, school, 
church, park, playground, school bus stop, place of business, or any 
other area where the public could reasonably be expected to frequent. 
Flowlines are exempted from this additional fencing requirement.

                     Table 12 to Sec.   3176.9(c)(3)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install, repair, or   20 to 40 days.
                               replace fence, and/
                               or gate(s), as
                               necessary.
------------------------------------------------------------------------


[[Page 39554]]

    (4) Gate(s), as required by paragraph (c)(3) of this section, shall 
be locked when unattended by the operator.

                     Table 13 to Sec.   3176.9(c)(4)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Lock gate...........  24 hours.
------------------------------------------------------------------------

    (5) Wind direction indicator(s) as specified in paragraph (b)(5) of 
this section shall be required. In the event the storage tanks and 
production facilities are located at the same site, 1 such indicator 
shall suffice. Flowlines are exempt from this requirement.

                     Table 14 to Sec.   3176.9(c)(5)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install, repair, or   20 to 40 days.
                               replace wind
                               direction
                               indicator(s), as
                               necessary.
------------------------------------------------------------------------

    (6) All wells, unless produced by artificial lift, shall possess a 
secondary means of immediate well control through the use of 
appropriate christmas tree and/or downhole completion equipment. Such 
equipment shall allow downhole accessibility (reentry) under pressure 
for permanent well control operations. If the applicability criteria 
stated in Sec.  3176.7(a) are met, a minimum of 2 master valves shall 
be installed.

                     Table 15 to Sec.   3176.9(c)(6)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install, repair, or   20 to 40 days.
                               replace equipment,
                               as necessary.
------------------------------------------------------------------------

    (7) All equipment shall be chosen with consideration for both the 
H2S working environment and anticipated stresses. NACE MR 
0175-2021 (incorporated by reference, see Sec.  3176.11) shall be used 
for metallic equipment selection and, if applicable, adequate 
protection by chemical inhibition or other such method that controls or 
limits the corrosive effects of H2S shall be used. (The use 
of NACE MR 0175-90 through NACE MR 0175-2021 is deemed to comply with 
the requirements of this paragraph (c)(7).)

                     Table 16 to Sec.   3176.9(c)(7)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install, repair, or   20 to 40 days.
                               replace equipment,
                               as necessary.
------------------------------------------------------------------------

    (8) Where the 100 ppm radius of exposure for H2S 
includes any occupied residence, place of business, school, or other 
inhabited structure or any area where the public may reasonably be 
expected to frequent, the operator shall install automatic safety 
valves or shutdowns at the wellhead, or other appropriate shut-in 
controls for wells equipped with artificial lift.

                     Table 17 to Sec.   3176.9(c)(8)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Install, repair, or   20 to 40 days.
                               replace equipment,
                               as necessary.
------------------------------------------------------------------------

    (9) The automatic safety valves or shutdowns, as required by 
paragraph (c)(8) of this section, shall be set to activate upon a 
release of a potentially hazardous volume of H2S.

                     Table 18 to Sec.   3176.9(c)(9)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Repair, replace or    Prompt correction
                               adjust equipment,     required.
                               as necessary.
------------------------------------------------------------------------


[[Page 39555]]

    (10) If the sustained ambient concentration of H2S or 
SO2 from a production facility which is venting or flaring 
reaches a concentration of H2S (10 ppm) or SO2 (2 
ppm), respectively, at any of the following locations, the operator 
shall modify the production facility as approved by the authorized 
officer. The locations include any occupied residence, school, church, 
park, playground, school bus stop, place of business, or other areas 
where the public could reasonably be expected to frequent.

                    Table 19 to Sec.   3176.9(c)(10)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Major.......................  Repair facility to    Prompt correction
                               bring into            required
                               compliance..
------------------------------------------------------------------------

    (d) Public protection. When conditions as defined in Sec.  
3176.7(a) exist, a Public Protection Plan for producing operations 
shall be submitted to the authorized officer in accordance with Sec.  
3176.7(b)(1) which includes the provisions of Sec.  3176.7(b)(2).

                      Table 20 to Sec.   3176.9(d)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Submit Public         20 to 40 days.
                               Protection Plan.
------------------------------------------------------------------------

Sec.  3176.10  Variances from requirements.

    An operator may request the authorized officer to approve a 
variance from any of the requirements prescribed in Sec. Sec.  3176.5 
through 3176.9. All such requests shall be submitted in writing to the 
appropriate authorized officer and provide information as to the 
circumstances which warrant approval of the variance(s) requested and 
the proposed alternative methods by which the related requirement(a) of 
minimum standard(s) are to be satisfied. The authorized officer, after 
considering all relevant factors, may approve the requested variance(s) 
if it is determined that the proposed alterative(s) meets or exceeds 
the objectives of the applicable requirement(s) or minimum standard(s).


Sec.  3176.11  Incorporation by reference.

    Certain material is incorporated by reference into this subpart 
with the approval of the Director of the Federal Register under 5 
U.S.C. 552(a) and 1 CFR part 51. All approved incorporation by 
reference (IBR) material is available for inspection at all Bureau of 
Land Management offices with jurisdiction over oil and gas activities, 
and at the National Archives and Records Administration (NARA). Contact 
the BLM at: Office of Energy, Minerals, and Realty Management, 1849 C 
Street Northwest, Washington, DC 20240; telephone 202-208-3801; email 
[email protected]; website www.blm.gov/programs/energy-and-minerals/oil-and-gas. For information on the availability of this material at NARA, 
visit www.archives.gov/federal-register/cfr/ibr-locations.html or email 
[email protected]. The material also may be obtained from the 
following sources:
    (a) American National Standards Institute (ANSI), 25 West 43rd St., 
4th floor, New York, NY 10036; telephone: 212-642-4980; email: 
[email protected]; website: www.ansi.org.
    (1) ANSI Standard Z88.2-1992 for Respiratory Protection, Approved 
August 6, 1992 (``ANSI Z88.2-1992''), IBR approved for Sec.  3176.8.
    (2) [Reserved]

    Note 1 to paragraph (a): If ANSI Z88.2 is not available from 
document resellers, contact the BLM to obtain a copy.

    (b) American Petroleum Institute (API), 200 Massachusetts Avenue 
NW, Suite 1100, Washington, DC 20001; telephone: 202-682-8000; email: 
[email protected]; website: www.api.org.
    (1) API Recommended Practice 49--Recommended Practice for Drilling 
and Well Servicing Operations Involving Hydrogen Sulfide; Third 
Edition, May 2001; Reaffirmed, January 2013 (``API RP 49''), IBR 
approved for Sec.  3176.8.
    (2) [Reserved]
    (c) Association for Materials Protection and Performance (AMPP) 
formerly known as NACE International, 15835 Park Ten Place, Houston, TX 
77084; telephone: 1-800-797-6223; website: www.ampp.org.
    (1) ANSI/NACE MR0175-2021/ISO 15156-1:2020; Petroleum and natural 
gas industries--Materials for use in H2S-containing 
environments in oil and gas production; Part 1: General principles for 
selection of cracking-resistant materials; Fourth Edition, Approved 
September 21, 2022 (``NACE MR 0175-2021''); IBR approved for Sec. Sec.  
3176.8; 3176.9.
    (2) [Reserved]

Subpart 3177--Onshore Oil and Gas Production: Disposal of Produced 
Water

Sec.
3177.1 Authority.
3177.2 Purpose.
3177.3 Scope.
3177.4 Definitions.
3177.5 Requirements.
3177.6 Application and approval authority.
3177.7 Informational requirements for injection wells.
3177.8 Informational requirements for pits.
3177.9 Design requirements for pits.
3177.10 Construction and maintenance requirements for pits.
3177.11 Other disposal methods.
3177.12 Reporting requirements for disposal facilities.
3177.13 Variances from requirements or minimum standards.
Appendix A to Subpart 3177--Examples of Acceptable Designs and 
Construction


Sec.  3177.1  Authority.

    This subpart is established pursuant to the authority granted to 
the Secretary of the Interior by various Federal and Indian mineral 
leasing statutes and the Federal Oil and Gas Royalty Management Act of 
1982. Said authority has been delegated to the Bureau of Land 
Management and is implemented by the onshore oil and gas operating 
regulations contained in 43 CFR part 3160. As directed by the Federal 
Onshore Oil and Gas Leasing Reform Act of 1987, for National Forest 
lands the Secretary of Agriculture shall regulate all surface-
disturbing activities and shall determine reclamation and other actions 
required in the interest of conservation of surface resources. Specific 
authority for the provisions contained in this subpart is found at 43

[[Page 39556]]

CFR 3162.3 and 3162.5 and 43 CFR part 3160, subpart 3163.


Sec.  3177.2  Purpose.

    This subpart supersedes Notice to Lessees and Operators of Federal 
and Indian Oil and Gas Leases (NTL-2B), Disposal of Produced Water. The 
purpose of this subpart is to specify informational and procedural 
requirements for submittal of an application for the disposal of 
produced water, and the design, construction, and maintenance 
requirements for pits as well as the minimum standards necessary to 
satisfy the requirements and procedures for seeking a variance from the 
minimum standards. Also set forth in this subpart are certain specific 
acts of noncompliance, corrective actions required, and the abatement 
period allowed for correction.


Sec.  3177.3  Scope.

    This subpart is applicable to disposal of produced water from 
completed wells on Federal and Indian (except Osage) oil and gas 
leases. It does not apply to approval of disposal facilities on lands 
other than Federal and Indian lands. Separate approval under this 
subpart is not required if the method of disposal has been covered 
under an enhanced recovery project approved by the authorized officer.


Sec.  3177.4  Definitions.

    As used in this subpart, the term:
    Authorized officer means any employee of the Bureau of Land 
Management authorized to perform duties described in 43 CFR parts 3000 
and 3100.
    Federal lands means all lands and interests in lands owned by the 
United States which are subject to the mineral leasing laws, including 
mineral resources or mineral estates reserved to the United States in 
the conveyance of a surface or nonmineral estate.
    Free-board means the vertical distance from the top of the fluid 
surface to the lowest point on the top of the dike surrounding the pit.
    Injection well means a well used for the disposal of produced water 
or for enhanced recovery operations.
    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 authorized exploration for, extraction of, or 
removal of oil or gas (see 43 CFR 3160.0-5).
    Lessee means a person or entity holding record title in a lease 
issued by the United States (see 43 CFR 3160.0-5).
    Lined pit means an excavated and/or bermed area that is required to 
be lined with natural or manmade material that will prevent seepage. 
Such pit shall also include a leak detection system.
    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 
(see 43 CFR 3160.0-5).
    Minor violation means noncompliance that does not rise to the level 
of a ``major violation'' (see 43 CFR 3160.0-5).
    Natural Pollutant Discharge Elimination System (NPDES) means a 
program administered by the Environmental Protection Agency or primacy 
State that requires permits for the discharge of pollutants from any 
point source into navigable waters of the United States.
    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 (see 43 CFR 3610.0-5).
    Produced water means water produced in conjunction with oil and gas 
production.
    Toxic constituents means substances in produced water that when 
found in toxic concentrations specified by Federal or State regulations 
have harmful effects in plant or animal life. These substances include 
but are not limited to arsenic (As), barium (Ba), cadmium (Cd), 
hexavalent chromium (hCr), total chromium (tCr), lead (Pb), mercury 
(Hg), zinc (Zn), selenium (Se), benzene, toluene, ethylbenzene, and 
xylenes, as defined in 40 CFR part 261.
    Underground Injection Control (UIC) program means a program by 
administered by the EPA, primacy State, or Indian Tribe under the Safe 
Drinking Water Act to ensure that subsurface injection does not 
endanger underground sources of drinking water.
    Unlined pit means an excavated and/or bermed area that is not 
required to be lined, or any pit that is lined but does not contain a 
leak detection system.


Sec.  3177.5  Requirements.

    (a) General requirements. Operators of onshore Federal and Indian 
oil and gas leases shall comply with the requirements and standards of 
this subpart for the protection of surface and subsurface resources. 
Except as provided under Sec.  3177.8(c), the operator may not dispose 
of produced water unless and until approval is obtained from the 
authorized officer. All produced water from Federal/Indian leases must 
be disposed of by injection into the subsurface, discharging into pits, 
or other acceptable methods approved by the authorized officer, 
including surface discharge under NPDES permit. Injection is generally 
the preferred method of disposal. Operators are encouraged to contact 
the appropriate authorized officer before filing an application for 
disposal of produced water so that the operator may be apprised of any 
existing agreements outlining cooperative procedures between the Bureau 
of Land Management and either the State/Indian Tribe or the 
Environmental Protection Agency concerning Underground Injection 
Control permits for injection wells, and of any potentially significant 
adverse effects on surface and/or subsurface resources. The approval of 
the Environmental Protection Agency or a State/Tribe shall not be 
considered as granting approval to dispose of produced water from 
leased Federal or Indian lands until and unless BLM approval is 
obtained. Applications filed pursuant to NTL-2B and still pending 
approval shall be supplemented or resubmitted if they do not meet the 
requirements and standards of this subpart. The disposal methods shall 
be approved in writing by the authorized officer regardless of the 
physical location of the disposal facility. Existing NTL-2B approvals 
will remain valid. However, upon written justification, the authorized 
officer may impose additional conditions or revoke any previously 
approved disposal permit, if the authorized officer, for example, finds 
that an existing facility is creating environmental problems, or that 
an unlined pit should be lined, because the quality of the produced 
water has changed so that it no longer meets the standards for unlined 
pits set out in this subpart.
    (b) Temporary disposal. Unless prohibited by the authorized 
officer, produced water from newly completed wells may be temporarily 
disposed of into reserve pits for a period of up to 90 days, if the use 
of the pit was approved as a part of an application for permit to 
drill. Any extension of time beyond this period requires documented 
approval by the authorized officer.
    (c) Approval timeline. (1) Upon receipt of a completed application 
the authorized officer shall take one of the following actions within 
30 days:
    (i) Approve the application as submitted or with appropriate 
modification or conditions;
    (ii) Return the application and advise the applicant in writing of 
the reasons for disapproval; or

[[Page 39557]]

    (iii) Advise the applicant in writing of the reasons for delay and 
the excepted final action date.
    (2) If the approval for a disposal facility, e.g., commercial pit 
or class II injection well, is revoked or suspended by the permitting 
agencies such as the Environmental Protection Agency or the primacy 
State, the BLM water disposal approval is immediately terminated and 
the operator is required to propose an alternative disposal method.


Sec.  3177.6  Application and approval authority.

    (a) On-lease disposal. For water produced from a Federal/Indian 
lease and disposed of on the same Federal/Indian lease, or on other 
committed Federal/Indian leases if in a unit or communitized area, the 
approval of the disposal method is usually granted in conjunction with 
the approval for the disposal facilities. An example would be the 
approval of a proposal to drill an injection well to be used for the 
disposal of produced water from a well or wells on the same lease.
    (1) Disposal of water in injection wells. When approval is 
requested for on-lease disposal of produced water into an injection 
well, the operator shall submit a Sundry Notice, Form 3160-5. 
Information submitted in support of obtaining the Underground Injection 
Control permit shall be accepted by the authorized officer in approving 
the disposal method, provided the information submitted in support of 
obtaining such a permit satisfies all applicable Bureau of Land 
Management statutory responsibilities (including but not limited to 
drilling safety, down hole integrity, and protection of mineral and 
surface resources) and requirements in this subpart. If the authorized 
officer has on file a copy of the approval for the receiving 
facilities, he/she may determine that a reference to that document is 
sufficient.
    (2) Disposal of water in pits. When approval is requested for 
disposal of produced water in a lined or unlined pit, the operator 
shall submit a Sundry Notice, Form 3160-5. The operator shall comply 
with all the applicable Bureau of Land Management requirements and 
standards for pits established in this subpart. On National Forest 
lands, where the proposed pit location creates new surface disturbance, 
the authorized officer shall not approve the proposal without the prior 
approval of the Forest Service.
    (b) Off-lease disposal--(1) On leased or unleased Federal/Indian 
lands. The purpose of the off-lease disposal approval process is to 
ensure that the removal of the produced water from a Federal or Indian 
oil and gas lease is proper and that the water is disposed of in an 
authorized facility. Therefore, the operator shall submit a Sundry 
Notice, Form 3160-5, for removal of the water together with a copy of 
the authorization for the disposal facility. If the authorized officer 
has a copy of the approval for the receiving facilities on file, he/she 
may determine that a reference to that document is sufficient. Where an 
associated right-of-way authorization is required, the information for 
the right-of-way authorization may be incorporated in the Sundry 
Notice, and the Bureau of Land Management will process both 
authorizations simultaneously for Bureau lands.
    (i) Disposal of water in injection wells. When approval is 
requested for removing water that is produced from wells on leased 
Federal or Indian lands and that is to be injected into a well located 
on another lease or unleased Federal lands, the operator shall submit 
to the authorized officer a Sundry Notice, Form 3160-5, along with a 
copy of the Underground Injection Control permit issued to the operator 
of the injection well, unless the well is authorized by rule under 40 
CFR part 144.
    (ii) Disposal of water in pits. When approval is requested for 
removing water that is produced from wells on leased Federal or Indian 
lands and is to be disposed of into a lined or unlined pit located on 
another lease or unleased Federal lands, the operator shall submit to 
the authorized officer a Sundry Notice, Form 3160-5.
    (iii) Right-of-way procedures. The operator of the injection well 
or pit is required to have an authorization from the Bureau of Land 
Management for disposing of the water into the pit or well, under Title 
V of the Federal Land Policy and Management Act (FLPMA) and 43 CFR part 
2800, or a similar authorization from the responsible surface 
management agency. In transporting the produced water from the lease to 
the pit or injection well, e.g., building a road or laying a pipeline, 
a right-of-way authorization under Title V of FLPMA and 43 CFR part 
2800 from the Bureau of Land Management or a similar permit from the 
responsible surface management agency also shall be obtained by the 
operator of the pit or any injection well or other responsible party.
    (2) Disposal of water on State and privately owned lands--(i) 
Disposal of water in injection wells. When approval is requested for 
removing water that is produced from wells on leased Federal or Indian 
lands and that is to be injected into a well located on State or 
privately owned lands, the operator shall submit to the authorized 
officer, in addition to a Sundry Notice, Form 3160-5, a copy of the 
Underground Injection Control permit issued for the injection well by 
Environmental Protection Agency or the State where the State has 
achieved primacy. Submittal of the Underground Injection Control permit 
will be accepted by the authorized officer and approval will be granted 
for the removal of the produced water unless the authorized officer 
states in writing that such approval will have adverse effects on the 
Federal/Indian lands or public health and safety.
    (ii) Disposal of water in pits. When approval is requested for 
removing water that is produced from wells on leased Federal and/or 
Indian lands and is to be disposed of into a pit located on State or 
privately owned lands, the operator shall submit to the authorized 
officer, in addition to a Sundry Notice, Form 3160-5, a copy of the 
permit issued for the pit by the State or any other regulatory agency, 
if required, for disposal in such pit. Submittal of the permit will be 
accepted by the authorized officer and approval will be granted for 
removal of the produced water unless the authorized officer states in 
writing that such approval will have adverse effects on the Federal/
Indian lands or public health and safety. If such a permit is not 
issued by the State or other regulatory agency, the requested removal 
of the produced water from leased Federal or Indian lands will be 
denied.
    (iii) Right-of-way procedures. If the water produced from wells on 
leased Federal and/or Indian lands, and to be disposed of at a location 
on State or privately owned lands, will be transported over off-lease 
Federal or Indian lands, the operator of the disposal facility or other 
responsible party shall have an authorization from the Bureau of Land 
Management under Title V of FLPMA and 43 CFR part 2800, or a similar 
authorization from the responsible surface management agency.


Sec.  3177.7  Informational requirements for injection wells.

    For an injection well proposed on Federal or Indian leases, the 
operator shall obtain an Underground Injection Control (UIC) permit 
pursuant to 40 CFR parts 144 and 146 from the Environmental Protection 
Agency or the State/Tribe where the State/Tribe has achieved primacy. 
The operator shall also comply with the pertinent procedural and 
informational requirements for Application for Permit to Drill or 
Sundry Notice as set forth in

[[Page 39558]]

subpart 3171 of this part. The injection well shall be designed and 
drilled or conditioned in accordance with the requirements and 
standards described in subpart 3172 of this part and pertinent NTLs, as 
well as the UIC permit.


Sec.  3177.8  Informational requirements for pits.

    Operators who request approval for disposal of produced water into 
a lined or unlined pit shall file an application on a Sundry Notice, 
Form 3160-5, and identify the operator's field representative by name, 
address, and telephone number and the source of the produced water. 
Sources of produced water shall be identified by facility, lease 
number, well number and name, and legal description of well location. 
All samples for water analysis shall be taken at the current discharge 
a point. A reclamation plan detailing the procedures expected to be 
followed for closure of the pit and the contouring and revegetating of 
the site shall be submitted prior to pit abandonment. If requested by 
the authorized officer, a contingency plan to deal with specific 
anticipated emergency situations shall be submitted as provided for in 
43 CFR 3162.5-1(d).
    (a) Lined pits. The authorized officer shall not consider for 
approval an application for disposal into lined pits on Federal/Indian 
leases unless the operator also provides the following information:
    (1) A map and drawings of the site on a suitable scale that show 
the pit dimension, cross section, side slopes, leak detection system, 
and location relative to other site facilities;
    (2) The daily quantity of water to be disposed of (maximum daily 
quantity shall be cited if major fluctuations are anticipated) and a 
water analysis (unless waived by the authorized officer as unnecessary) 
that includes the concentrations of chlorides, sulfates, pH, total 
dissolved solids (TDS), and toxic constituents that the authorized 
officer reasonably believes to be present;
    (3) Criteria used to determine the pit size, which includes a 
minimum of 2 feet of free-board;
    (4) The average monthly evaporation and average monthly 
precipitation for the area;
    (5) The method and schedule for periodic disposal of precipitated 
solids and a copy of the appropriate disposal permit, if any; and
    (6) The type, thickness, and life span of material to be used for 
lining the pit and the method of installation. The manufacturer's 
guidebook and information for the product shall be included, if 
available.
    (b) Unlined pits. (1) Application for disposal into unlined pits 
may be considered for approval by the authorized officer where the 
application of the operator shows that such disposal meets one or more 
of the following criteria:
    (i) The water to be disposed of has an annual average TDS 
concentration equal to or less than that of the existing water to be 
protected, provided that the level of any toxic constituents in the 
produced water does not exceed established State or Federal standards 
for protection of surface and/or ground water;
    (ii) All, or a substantial part, of the produced water is being 
used for beneficial purposes and meets minimum water quality standards 
for such uses. For example, uses of produced water for purposes such as 
irrigation and livestock or wildlife watering shall be considered as 
beneficial;
    (iii)(A) The water to be disposed of will not degrade the quality 
of surface or subsurface waters in the area;
    (B) The surface and subsurface waters contain TDS above 10,000 ppm, 
or toxic constituents in high concentrations; or
    (C) The surface and subsurface waters are of such poor quality or 
small quantity as to eliminate any practical use thereof; and
    (iv) That the volume of water to be disposed of per disposal 
facility does not exceed an average of 5 barrels per day on a monthly 
basis.
    (2) Operators applying for disposal into an unlined pit shall also 
submit the following information, as appropriate:
    (i) Applications for disposal into unlined pits that meet the 
criteria in paragraphs (b)(1)(i) through (iv) of this section shall 
include:
    (A) A map and drawings of the site on a suitable scale that show 
the pit dimension, cross section, side slopes, size, and location 
relative to other site facilities;
    (B) The daily quantity of water to be disposed of and a water 
analysis that includes total dissolved solids (in ppm), pH, oil and 
grease content, the concentrations of chlorides and sulfates, and other 
parameters or constituents toxic to animal or plant life as reasonably 
prescribed by the authorized officer. The applicant should also 
indicate any effect or interaction of produced water with any water 
resources present at or near the surface and other known mineral 
deposits. For applications submitted under criterion in paragraph 
(b)(1)(iv) of this section, the water quality analysis is not needed 
unless requested by the authorized officer;
    (C) The average monthly evaporation and the average monthly 
precipitation for the area. For applications submitted under criterion 
in paragraph (b)(1)(iv) of this section, average annual data will be 
acceptable;
    (D) The estimated percolation rate based on soil characteristics 
under and adjacent to the pit. In some cases the authorized officer may 
require percolation tests using accepted test procedures; and
    (E) Estimated depth and areal extent of the shallowest known 
aquifer with TDS less than 10,000 ppm, and the depth and extent of any 
known mineral deposits in the area.
    (ii) Where beneficial use (criterion in paragraph (b)(1)(ii) of 
this section) is the basis for the application, the justification 
submitted shall also contain written confirmation from the user(s).
    (iii) If the application is made on the basis that surface and 
subsurface waters will not be adversely affected by disposal in an 
unlined pit (paragraph (b)(1)(iii) of this section), the justification 
shall also include the following additional information:
    (A) Map of the site showing the location of surface waters, water 
wells, and existing water disposal facilities within 1 mile of the 
proposed disposal facility;
    (B) Average concentration of TDS (in ppm) of all surface and 
subsurface waters within the 1-mile radius that might be affected by 
the proposed disposal;
    (C) Reasonable geologic and hydrologic evidence that shows the 
proposed disposal method will not adversely affect existing water 
quality or major uses of such waters, and identifies the presence of 
any impermeable barrier(s), as necessary; and
    (D) A copy of any State order or other authorization granted as a 
result of a public hearing that is pertinent to the authorized 
officer's consideration of the application.
    (c) Emergency pits. Application for a permanent pit (lined or 
unlined) to be used for anticipated emergency purposes shall be 
submitted by the operator on a Sundry Notice, Form 3160-5, for approval 
by the authorized officer, unless it has been approved in conjunction 
with a previously approved operational activity. Design criteria for an 
emergency pit will be established by the authorized officer on a case-
by-case basis. Any emergency use of such pits shall be reported in 
accordance with NTL-3A, and the pit shall be emptied and the liquids 
disposed of in

[[Page 39559]]

accordance with applicable State and/or Federal regulations within 48 
hours following its use, unless such time is extended by the authorized 
officer.


Sec.  3177.9  Design requirements for pits.

    (a) Pits shall be designed to meet the following requirements and 
minimum standards. For unlined pits approved under criterion in Sec.  
3177.8(b)(1)(iv), requirements in paragraphs (a)(4) and (5) of this 
section, do not apply.
    (1) As much as practical, the pit shall be located on level ground 
and away from established drainage patterns, including intermittent/
ephemeral drainage ways, and unstable ground or depressions in the 
area.
    (2) The pit shall have adequate storage capacity for safe 
containment of all produced water, even in those periods when 
evaporation rates are at a minimum. The design shall provide for a 
minimum of 2 feet of free-board.
    (3) The pit shall be fenced or enclosed to prevent access by 
livestock, wildlife, and unauthorized personnel. If necessary, the pit 
shall be equipped to deter entry by birds. Fences shall not be 
constructed on the levees. Figure 1 in appendix A to this subpart shows 
an example of an acceptable fence design.
    (4) The pit levees are to be constructed so that the inside grade 
of the levee is no steeper than 1 (vertical):2 (horizonal), and the 
outside grade no steeper than 1:3.
    (5) The top of levees shall be level and at least 18 inches wide.
    (6) The pit location shall be reclaimed pursuant to the 
requirements and standards of the surface management agency. On a spilt 
estate (private surface, Federal mineral) a surface owner's release 
statement or form is acceptable.
    (b) Lined pits shall be designed to meet following requirement and 
minimum standards in addition to those specified in paragraph (a) of 
this section:
    (1) The material used in lining pits shall be impervious. It shall 
be resistant to weather, sunlight, hydrocarbons, aqueous acids, 
alkalies, salt, fungi, or other substances likely to be contained in 
the produced water.
    (2) If rigid materials are used, leak-proof expansion joints shall 
be provided, or the material shall be of sufficient thickness and 
length to withstand expansion without cracking, contraction, and 
settling movements in the underlying earth. Semi-rigid liners such as 
compacted bentonite or clay may also be used provided that, considering 
the thickness of the lining material chosen and its degree of 
permeability, the liner is impervious for the expected period of use. 
Figure 2 in appendix A to this subpart shows examples of acceptable 
standards for concrete, asphalt, and bentonite/clay liners.
    (3) If flexible membrane materials are used, they shall have 
adequate resistance to tears or punctures. Figure 3 in appendix A to 
this subpart gives an example of acceptable standards for installation 
of the flexible membrane.
    (4) Lined pits shall have an underlying gravel-filled sump and 
lateral system or other suitable devices for the detection of leaks. 
Examples of the acceptable design of the leak detection system are 
shown in Figures 4 and 5 of appendix A to this subpart.
    (c) Failure to design the pit to meet the requirements in 
paragraphs (a) and (b) of this section and minimum standards in this 
subpart will result in disapproval of the proposal or a requirement 
that it be modified unless a request for variance is approved by the 
authorized officer.


Sec.  3177.10  Construction and maintenance requirements for pits.

    Inspections will be conducted according to the following 
requirements and minimum standards during the construction and 
operation of the pit. Failure to meet the requirements and standards 
may result in issuance of an Incident of Noncompliance (INC) for the 
violation. The gravity of the violation, corrective actions, and the 
normal abatement period allowed are specified for each of the 
requirements/standards.
    (a) Any disposal method that has not been approved shall be 
considered an incident of noncompliance and may result in the issuance 
of a shut-in order, assessments, or penalties pursuant to 43 CFR part 
3163 until an acceptable disposal method is provided and approved by 
the authorized officer.

                      Table 1 to Sec.   3177.10(a)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor: If it causes no        Minor: Submit         Minor: 1 to 20 days
 significant environmental     acceptable            or as directed by
 damages or effects.           application.          authorized officer.
Major: If it causes or        Major: Shut-in, take  Major: Within 10
 threatens immediate,          corrective action     days.
 substantial and adverse       to repair or
 impact on public health and   replace damages
 safety, the environment,      according to
 production accountability,    instructions of
 or royalty income.            authorized officer.
------------------------------------------------------------------------

    (b) The operator shall notify the authorized officer to inspect the 
leak detection system at least 2 business days prior to the 
installation of the pit liner.

                      Table 2 to Sec.   3177.10(b)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Require verification  Prior to use of pit.
                               of its installation.
------------------------------------------------------------------------

    (c) At least 2 business days prior to its use, the operator shall 
notify the authorized officer of completion of the pit construction, so 
that the authorized officer may verify that the pit has been 
constructed in accordance with the approved plan.

[[Page 39560]]



                      Table 3 to Sec.   3177.10(c)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
(For failure to notify)       N/A.................  N/A.
 Minor.
(For failure to construct in  The authorized        1 to 20 days
 accordance with the           officer may shut-in   depending on the
 approved plan) Minor,         operations and        severity of the
 unless Major by definition.   require corrections   violation and the
                               to comply with the    degree of
                               plan or require       difficulty to
                               amendment of the      correct, if the pit
                               plan.                 is in use.
------------------------------------------------------------------------

    (d) Lined pit shall be maintained and operated to prevent 
unauthorized subsurface discharge of water.

                      Table 4 to Sec.   3177.10(d)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Usually Minor, unless Major   Repair/replace liner  1 to 20 days
 as result of discharge.       and possibly shut     depending on the
                               in operations.        onsite situation.
------------------------------------------------------------------------

    (e) The pit shall be maintained as designed to prevent entrance of 
surface water by providing adequate surface drainage away from the pit.

                      Table 5 to Sec.   3177.10(e)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Provide surface       Within 20 days.
                               drainage.
------------------------------------------------------------------------

    (f) The pit shall be maintained and operated to prevent 
unauthorized surface discharge of water.

                      Table 6 to Sec.   3177.10(f)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Usually Minor, unless         Clean up if spill     1 to 20 days
 discharge results in Major.   occurs, and reduce    depending upon the
                               the water level to    onsite situation.
                               maintain the 2 feet
                               of free-board; shut-
                               in operations, if
                               required by
                               authorized officer.
------------------------------------------------------------------------

    (g) The outside walls of the pit levee shall be maintained as 
designed to minimize erosion.

                      Table 7 to Sec.   3177.10(g)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Necessary repair....  Within 20 days.
------------------------------------------------------------------------

    (h) The pit shall be kept reasonably free from surface accumulation 
of liquid hydrocarbons that would retard evaporation.

                      Table 8 to Sec.   3177.10(h)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Clean-up, and may     Within 20 days.
                               require skimmer
                               pits, settling
                               tanks, or other
                               suitable equipment.
------------------------------------------------------------------------

    (i) The operator shall inspect the leak detection system at least 
once a month or more often if required by the authorized officer in 
appropriate circumstances. The record of inspection shall describe the 
result of the

[[Page 39561]]

inspection by date and shall be kept and made available to the 
authorized officer upon request.

                      Table 9 to Sec.   3177.10(i)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Commence the          Within 30 days.
                               required routine
                               inspection and
                               recordkeeping.
------------------------------------------------------------------------

    (j) Prior to pit abandonment and reclamation, the operator shall 
submit a Sundry Notice for approval by the authorized officer, if not 
previously approved.

                      Table 10 to Sec.   3177.10(j)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor.......................  Cease operations and  Within 10 days.
                               file an application.
------------------------------------------------------------------------

    (k) When change in the quantity and/or quality of the water 
disposed into an unlined pit causes the pit no longer to meet the 
unlined pit criteria listed under Sec.  3177.8(b)(1), the operator 
shall submit a Sundry Notice amending the pit design for approval by 
the authorized officer.

                      Table 11 to Sec.   3177.10(k)
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor unless the resulting    Submit the required   As specified by the
 damage is Major.              amendment; shut-in    authorized officer.
                               operations if
                               damage is
                               determined by the
                               authorized officer
                               to be Major.
------------------------------------------------------------------------

Sec.  3177.11  Other disposal methods.

    (a) The person applying to use the surface discharge disposal 
method under an NPDES permit shall furnish a copy of the NPDES permit 
issued by the EPA or the primacy State, a current water quality 
analysis, and a Sundry Notice, Form 3160-5, describing site facilities 
(e.g., retention ponds, skimmer pits and equipment, tanks, and any 
additional surface disturbance). Operations from the point of origin to 
the point of discharge are under the jurisdiction of the BLM. 
Operations from the point of discharge downstream are under the 
jurisdiction of the EPA or the primacy State.
    (b) Use of existing commercial pits designed for containment of 
produced water or tanks in lieu of pits.
    (c) New technology or any other proposal meeting the objective of 
this subpart that the authorized officer deems acceptable and that 
meets the requirements of State and Federal laws and regulations.


Sec.  3177.12  Reporting requirements for disposal facilities.

    All unauthorized discharge or spills from disposal facilities on 
Federal/Indian leases shall be reported to the authorized officer in 
accordance with the provisions of NTL-3A.

                        Table 1 to Sec.   3177.12
------------------------------------------------------------------------
                                                      Normal abatement
          Violation             Corrective action          period
------------------------------------------------------------------------
Minor unless resulting        Submit the required   As specified by the
 damage is major.              report.               authorized officer.
------------------------------------------------------------------------

Sec.  3177.13  Variances from requirements or minimum standards.

    An operator may request that the authorized officer approve a 
variance from any of the requirements or minimum standards prescribed 
in Sec. Sec.  3177.5 through 3177.12. All such requests shall be 
submitted in writing to the appropriate authorized officer and provide 
information as to the circumstances that warrant approval of the 
variance(s) requested and the proposed alternative means by which the 
requirements or related minimum standard(s) will be satisfied. The 
authorized officer, after considering all relevant factors, will 
approve the requested variance(s) if it is determined that the proposed 
alterative(s) meet or exceed the objectives of the applicable minimum 
standard(s); or if the authorized officer determines that the exemption 
of the requirement is justified. Variances granted by BLM under this 
section shall be limited to proposals and requirements under BLM 
statutory and/or regulatory authority only, and shall not be construed 
as granting variances to regulations under EPA, State, or Tribal 
authority.

Appendix A to Subpart 3177--Examples of Acceptable Designs and 
Construction

BILLING CODE 4331-29-P
Figure 1 to Appendix A to Subpart 3177--Construction of Fences and 
Corner Posts

[[Page 39562]]

[GRAPHIC] [TIFF OMITTED] TR16JN23.004


[[Page 39563]]


Figure 2 to Appendix A to Subpart 3177--Concrete, Asphalt, and 
Bentonite/Clay Liners
[GRAPHIC] [TIFF OMITTED] TR16JN23.005


[[Page 39564]]


Figure 3 to Appendix A to Subpart 3177--Flexible Liners
[GRAPHIC] [TIFF OMITTED] TR16JN23.006


[[Page 39565]]


Figure 4 to Appendix A to Subpart 3177--Leak Detection System for a 
Lined Pit Constructed in Relatively Impermeable Soils
[GRAPHIC] [TIFF OMITTED] TR16JN23.007


[[Page 39566]]


Figure 5 to Appendix A to Subpart 3177--Leak Detection System for a 
Lined Pit Constructed in Permeable Soils
[GRAPHIC] [TIFF OMITTED] TR16JN23.008

[FR Doc. 2023-11742 Filed 6-15-23; 8:45 am]
BILLING CODE 4331-29-C