Management of Non-Federal Oil and Gas Rights, 77199-77229 [2015-30977]
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Vol. 80
Friday,
No. 238
December 11, 2015
Part IV
Department of the Interior
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Fish and Wildlife Service
50 CFR Parts 28 and 29
Management of Non-Federal Oil and Gas Rights; Proposed Rule
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DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
50 CFR Parts 28 and 29
[Docket No. FWS–HQ–NWRS–2012–0086;
FXRS12610900000–156–FF09R24000]
RIN 1018–AX36
Management of Non-Federal Oil and
Gas Rights
Fish and Wildlife Service,
Interior.
ACTION: Proposed rule.
AGENCY:
We, the U.S. Fish and
Wildlife Service (Service), are proposing
to revise regulations governing the
exercise of non-Federal oil and gas
rights in order to improve our ability to
protect refuge resources, visitors, and
the general public’s health and safety
from potential impacts associated with
non-Federal oil and gas operations
located within U.S. Fish and Wildlife
Service refuge units. Non-Federal oil
and gas development refers to oil and
gas activities associated with any
private, State, or tribally owned mineral
interest where the surface estate is
administered by the Service as part of
the Refuge System. The existing nonFederal oil and gas regulations have
remained unchanged for more than 50
years and provide vague guidance to
staff and operators. This proposed rule
would make the regulations consistent
with existing laws, policies and
industry practices. It is designed to
provide regulatory clarity and guidance
to oil and gas operators and refuge staff,
provide a simple process for
compliance, incorporate technological
improvements in exploration and
drilling technology, and ensure that
non-Federal oil and gas operations are
conducted in a manner that avoids or
minimizes impacts to refuge resources.
DATES: Comments on this proposed rule
must be received on or before February
9, 2016. Comments on the information
collection aspects of this rule must be
received on or before January 11, 2016.
ADDRESSES: Document Availability: An
economic analysis and a draft
environmental impact statement (DEIS)
have been prepared in conjunction with
preparation of this proposed rule, and
both documents are available at https://
www.fws.gov/refuges/oil-and-gas/
rulemaking.html and also at
www.regulations.gov at Docket No.
FWS–HQ–NWRS–2012–0086.
Comments on the Proposed Rule and
DEIS: You may submit comments on
this proposed rule or the DEIS by one
of the following methods:
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SUMMARY:
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• Federal eRulemaking Portal: https://
www.regulations.gov. In the Search box,
type FWS–HQ–NWRS–2012–0086,
which is the docket number for this
proposed rule. Then click on the Search
button. When you have located the
correct document, you may submit a
comment by clicking on ‘‘Comment
Now!’’
• U.S. mail or hand-delivery: Submit
comments on the proposed rule or DEIS
to: Public Comments Processing Attn:
FWS–HQ–NWRS–2012–0086; Division
of Policy, Performance, and
Management Programs; U.S. Fish and
Wildlife Service, MS: BPHC; 5275
Leesburg Pike; Falls Church, VA 22041–
3803.
Please indicate to which document,
the proposed rule or the DEIS, your
comments apply. We request that you
send comments only by the methods
described above. We will post all
comments on https://
www.regulations.gov. This generally
means that we will post any personal
information you provide us. For
additional instructions on submitting
comments and additional information
on the rulemaking process, see the
Public Participation heading of the
SUPPLEMENTARY INFORMATION section of
this document.
Comments on the Information
Collection Aspects of the Proposed Rule:
You may review the Information
Collection Request online at https://
www.reginfo.gov. Follow the
instructions to review Department of the
Interior collections under review by
OMB. Send comments (identified by
1018–AX36) specific to the information
collection aspects of this proposed rule
to both the:
• Desk Officer for the Department of
the Interior at OMB–OIRA at (202) 295–
5806 (fax) or OIRA_Submission@
omb.eop.gov (email); and
• Service Information Collection
Clearance Officer; Division of Policy,
Performance, and Management
Programs; U.S. Fish and Wildlife
Service, MS: BPHC; 5275 Leesburg Pike;
Falls Church, VA 22041–3803 (mail); or
hope_grey@fws.gov (email).
FOR FURTHER INFORMATION CONTACT:
Scott Covington, U.S. Fish and Wildlife
Service, Division of Natural Resources
and Planning, MS: NWRS, 5275
Leesburg Pike, Falls Church, Virginia
22043; telephone 703–358–2427.
SUPPLEMENTARY INFORMATION:
Executive Summary
We are proposing to update the
existing regulations at subpart C of part
29 of title 50 of the Code of Federal
Regulations (CFR) and propose new
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regulations as subpart D of 50 CFR part
29, which would govern the exercise of
non-Federal oil and gas rights within
refuge units, to improve the
effectiveness of the regulations in
protecting refuge resources and values,
and to improve the clarity of the
regulations for both operators and the
Service.
Key components of the proposed rule
include:
• A permitting process for new
operations;
• A permitting process for wellplugging and reclamation for all
operations;
• Information requirements for
particular types of operations;
• Operating standards so that both the
Service and the operator can readily
identify what standards apply to
particular operations;
• Fees for new access beyond that
held as part of the operator’s oil and gas
right;
• Financial assurance (bonding);
• Penalty provisions;
• Clarification that the process for
authorizing access to non-Federal oil
and gas properties in Alaska will
continue to be controlled by 43 CFR part
36, which implements provisions of the
Alaska National Interest Lands
Conservation Act; and
• Codification of some existing
agency policies and practices.
A detailed discussion of all proposed
changes to the regulations is contained
in the section-by-section analysis.
Background
In 2003, the Government
Accountability Office (GAO) issued a
report (GAO–03–517) to Congress
highlighting the opportunities to
improve management and oversight of
oil and gas operations on National
Wildlife Refuge System (NWRS) lands
and waters. An update by GAO in 2007
(GAO–07–829R) reasserted the
recommendation that the Service take
the necessary steps to apply a consistent
and reasonable set of regulatory and
management controls over all oil and
gas activities occurring on refuges to
protect the public’s surface interests.
Other land management agencies have
regulations that address oil and gas
development for non-Federal subsurface
interests, including the Department of
the Interior’s National Park Service
(NPS) and the U.S. Department of
Agriculture’s Forest Service. This
proposed rule would address concerns
highlighted in the GAO reports and
bring the Service more in line with
other Federal land management
agencies.
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Based on Service data from 2011,
there are over 5,000 oil and gas wells on
107 refuges in a total of 599 refuge units.
Of the wells present on refuges, 1,665
actively produce oil and gas. Based on
the existence of split estates (where the
Service owns the surface estate and
another party owns the mineral estate),
exploration and production already
occurring on adjacent or nearby lands,
and future increases in energy prices,
non-Federal oil and gas operations
within refuges potentially could affect
many additional refuges. Because of the
impacts of oil and gas operations, a
rulemaking is necessary to create a
consistent and reasonable set of
regulatory management controls for
non-Federal oil and gas operations on
refuges.
In 1960, the Service promulgated the
current regulations at 50 CFR 29.32 to
govern the exercise of non-Federal
mineral rights on NWRS lands and
waters. These regulations have not been
updated. These regulations outline a
general policy to minimize impacts to
refuge resources to the extent
practicable from all activities associated
with non-Federal mineral exploration
and development where access is on,
across, or through federally owned or
controlled lands or waters of the NWRS.
However, they have been ineffective at
protecting refuge resources or providing
operators explicit requirements for
operating on refuge lands. The current
regulations lack both a process and
specific guidance for operators and
refuge employees to plan efficient
operations on refuges that minimize
impacts to refuge resources. Similarly,
existing Service policies related to
exploring and developing non-Federal
oil and gas rights under refuges, such as
612 FW 3, lack regulatory provisions
needed to successfully protect refuge
resources and provide sufficient
guidance.
Authority To Promulgate Regulations
One of the principal
recommendations of the 2003 GAO
report was for the Service to clarify its
regulatory authority over non-Federal
oil and gas operations on NWRS lands.
This rulemaking provides notice to the
public that the authorities given to the
Service by Congress include the
authority to regulate the exercise of nonFederal oil and gas rights located within
refuge units. Because the Service’s
current regulations from 1960 pre-date
the National Wildlife Refuge System
Administration Act (NWRSAA), as
amended by the National Wildlife
Refuge System Improvement Act
(NWRSIA) (16 U.S.C. 668dd et seq.) and
do not clearly assert or implement the
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full extent of the Service’s authority to
regulate non-Federal oil and gas rights
or provide for consistent management of
the exercise of those rights, we are
proposing to revise the current
regulations.
The authority of Congress to provide
for the regulation of non-Federal oil and
gas operations on NWRS lands is
derived from the Property Clause of the
United States Constitution (U.S. Const.
art. IV, sec. 3). Specifically, the Service
has been provided the statutory
authority to manage Federal lands and
resources under NWRSAA, as amended
by the NWRSIA. In 1997, Congress
enacted the NWRSIA, amending and
building upon the NWRSAA in a
manner that provided an organic act for
the NWRS similar to those which exist
for other public lands. Generally, in
enacting the NWRSIA, Congress
recognized that the Service needed
additional guidance and authority to
manage the NWRS.
The NWRSIA (16 U.S.C. 668dd(a)(4))
mandates the Secretary of the Interior,
in administering the System, to:
• Provide for the conservation of fish,
wildlife, and plants, and their habitats
within the NWRS;
• Ensure that the biological integrity,
diversity, and environmental health of
the NWRS are maintained for the benefit
of present and future generations of
Americans;
• Ensure that the mission of the
NWRS described at 16 U.S.C.
668dd(a)(2) and the purposes of each
refuge are carried out;
• Ensure effective coordination,
interaction, and cooperation with
owners of land adjoining refuges and
the fish and wildlife agency of the States
in which the units of the NWRS are
located;
• Assist in the maintenance of
adequate water quantity and water
quality to fulfill the mission of the
NWRS and the purposes of each refuge;
• Recognize compatible wildlifedependent recreational uses as the
priority general public uses of the
NWRS through which the American
public can develop an appreciation for
fish and wildlife;
• Ensure that opportunities are
provided within the NWRS for
compatible wildlife-dependent
recreational uses; and
• Monitor the status and trends of
fish, wildlife, and plants in each refuge.
The NWRSIA also gave the Service
new authority to promulgate regulations
to carry out the NWRSAA.
Several recent Circuit Court decisions
have held that this regulatory authority
extends to non-Federal property
interests within refuges. Although these
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cases did not directly address nonFederal mineral rights, nothing in these
decisions would limit the Service’s
regulatory authority with respect to this
form of property interest. In Burlison v.
United States (533 F.3d 419 (6th Cir.
2008)), the appeals court held that the
Service may reasonably regulate a
reserved easement within a refuge:
. . . . We do conclude, however, that the
Fish and Wildlife Service may legitimately
exercise the sovereign police power of the
federal government in regulating the
easement. Section 668dd(d)(1)(B) delegates
the power to the Secretary of the Interior (and
the Fish and Wildlife Service) ‘‘under such
regulations as he may prescribe,’’ to ‘‘permit
the use of . . . any areas within the System
for purposes such as . . . roads.’’ The
question before us is whether the permissive
power respecting roads authorized by the
Refuge Act also includes the power to
regulate a private easement over a road. We
answer this question in the affirmative.
Burlison also relied on the Duncan
Energy Co. v. United States Forest
Service, 50 F.3d 584 (8th Cir. 1995),
which upheld Federal regulation of nonFederal oil and gas rights on Forest
Service lands. In School Board of
Avoyelles Parish v. United States
Department of the Interior (647 F.3d 570
(5th Cir. 2011)), the Fifth Circuit held
that FWS had authority to regulate
access and use of refuge lands under the
NWRAA/NWRSIA even for holders of
valid easements. The Court’s opinion
notes that the relevant regulation
required a permit for ‘‘any person
entering a national wildlife refuge,’’
unless otherwise excepted by the
regulations, and found that, even though
the owner had a non-Federal property
interest in the land, they were required
to obtain a permit from the Service. The
court, citing Burlison and other cases,
found that the restrictions on the
exercise of the non-Federal property
right were well within Federal authority
under the Property Clause. The Service
fully recognizes, as the Burlison court
explained, that the right to reasonably
regulate these private property interests
does not mean that the Service may
‘‘eviscerate’’ those property rights.
These decisions support the Service’s
belief that it does have the necessary
statutory authority to promulgate these
proposed rules in order to achieve its
legislative mandates, including the
conservation of fish, wildlife, and plants
in their habitat, and ensuring the
biological integrity of the Refuge
System.
The Service is aware of the 1986
memorandum by the Associate
Solicitor, Conservation and Wildlife
(‘‘1986 Opinion’’) that interpreted that
the Service, at that time, lacked the
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authority from Congress to adopt
regulations requiring permits for access
by holders of mineral interests that were
reserved by the holder when the land
was sold to the United States for refuge
purposes, unless that authority was
provided for in the deed. That opinion
relied in part on Caire v. Fulton, 1986
U.S. Dist. LEXIS 31049 (W.D. La. 1986),
an unpublished district court decision,
where the United States had explicitly
agreed during eminent domain
proceedings to delete from the proposed
deed a provision authorizing Service
regulation of the oil and gas interests
not being acquired. Additionally, the
1986 Opinion made a distinction in the
Service’s authority to regulate between
reserved and outstanding rights, which
Interior recognized in its response to the
2003 GAO report.
The 1986 Opinion was also premised
on a provision of the Migratory Bird
Conservation Act (MBCA), 16 U.S.C.
715e, which was amended in 1935 to
provide:
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The Secretary of the Interior may do all
things and make all expenditures necessary
to secure the safe title in the United States
to the areas which may be acquired under
this subchapter, but no payment shall be
made for any such areas until the title thereto
shall be satisfactory to the Attorney General
or his designee, but the acquisition of such
areas by the United States shall in no case
be defeated because of rights-of-way,
easements, and reservations which from their
nature will in the opinion of the Secretary of
the Interior in no manner interfere with the
use of the areas so encumbered for the
purposes of this subchapter, but such rightsof-way, easements, and reservations retained
by the grantor or lessor from whom the
United States receives title under this
subchapter or any other Act for the
acquisition by the Secretary of the Interior of
areas for wildlife refuges shall be subject to
rules and regulations prescribed by the
Secretary of the Interior for the occupation,
use, operation, protection, and
administration of such areas as inviolate
sanctuaries for migratory birds or as refuges
for wildlife; and it shall be expressed in the
deed or lease that the use, occupation, and
operation of such rights-of-way, easements,
and reservations shall be subordinate to and
subject to such rules and regulations as are
set out in such deed or lease or, if deemed
necessary by the Secretary of the Interior, to
such rules and regulations as may be
prescribed by him from time to time.
The facts underlying the Caire case
have long suggested that it is of limited
precedential value. To the extent it
could be construed to stand for the
proposition that the Service may only
regulate the property interest reserved
in the deed when the deed expressly
provided for such regulation, the
decision appears to be overtaken by that
of the Avoyelles Parish Circuit Court.
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Moreover, Burlison and Avoyelles
Parish support the exercise of such
rulemaking authority without regard to
this provision of the MBCA. So, after
consultation with the Office of the
Solicitor of the Department of the
Interior, we now believe that the 1986
Opinion has been superseded by the
amendments to the Administration Act
and subsequent court decisions
interpreting the amended act, and that
our current regulations from 1960 do
not reflect the full extent of the
authorities enacted by Congress after
that date which direct the Service to
protect refuge resources and uses.
Therefore, the Service believes it does
have the authority to issue regulations
to reasonably regulate both reserved and
outstanding non-Federal oil and gas
interests within the NWRS even when
the right to regulate is not stated in the
relevant deed. In our review of various
deeds used by the Service to acquire the
lands and interests in lands that make
up the NWRS, we find many variations
and that it is not possible to review or
summarize all such provisions, or
ensure that we are familiar with the
circumstances surrounding each
acquisition of NWRS lands, which did
not include the mineral rights. As part
of the pre-application meeting with the
Service (see proposed § 29.91), and/or
the submission of an application (see
proposed § 29.94), the applicant should
provide the Service with copies of any
deeds or other relevant information
which the applicant believes would
control or otherwise limit the
applicability of the regulations under
this subpart to the applicant’s
operations. This process is intended to
ensure that the Service both fully
considers relevant deed provisions and
any other information concerning the
particular acquisitions before imposing
requirements on the applicant’s
operations. The Service will respect any
applicable deed conditions; however,
these new regulatory requirements still
apply to the extent that they do not
conflict with such deed conditions,
which we believe is the situation in
most cases.
The Service will consider any
comments on its authority to
promulgate these regulations and
address them in making its
determinations for a final rule.
Non-Federal Oil and Gas Rights Within
Refuges
Non-Federal oil and gas rights exist
within the NWRS in situations where
the oil and gas interest has been severed
from the estate acquired by the United
States, either because:
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• The United States acquired
property from a grantor that did not own
the oil and gas interest; or
• The United States acquired the
property from a grantor that reserved the
oil and gas interest from the
conveyance.
Non-Federal oil and gas interests can
be held by individuals, partnerships,
for-profit corporations, nonprofit
organizations, or States and their
political subdivisions. Interests in nonFederal oil and gas are property rights
that may only be taken for public use
with payment of just compensation in
accordance with the Fifth Amendment
of the U.S. Constitution. This proposed
rule is not intended to result in the
taking of a property interest, but rather
to impose reasonable regulations on
activities that involve or affect federally
owned lands and resources of the
NWRS to avoid or minimize impacts
from such activities to the maximum
extent practicable.
These regulations do not apply to the
development of the Federal mineral
estate, including Federal oil and gas,
which are administered by the Bureau
of Land Management (BLM), under the
Mineral Leasing Act and the Federal
Land Policy and Management Act. In
areas where oil and gas rights are owned
by the United States, and leasing is
authorized, the applicable regulations
can be found at 43 CFR part 3100. There
is a general prohibition to leasing
Federal oil and gas on refuge lands (43
CFR 3101.5–1).
Summary of Potential Impacts From Oil
and Gas Operations on Refuge
Resources and Uses
Examples of non-Federal oil and gas
operations conducted on refuges
include: Geophysical (seismic)
exploration; exploratory well drilling;
field development well drilling; oil and
gas well production operations,
including installation and operation of
well flowlines and gathering lines;
enhanced recovery operations; well
plugging and abandonment; and site
reclamation.
Oil and gas activities have the
potential to adversely impact refuge
resources in some or all of the following
manners:
• Surface water quality degradation
from spills, storm water runoff, erosion,
and sedimentation;
• Soil and groundwater
contamination from existing drilling
mud pits, poorly constructed wells,
improperly conducted enhanced
recovery techniques, spills, and leaks;
• Air quality degradation from dust,
natural gas flaring, hydrogen sulfide gas,
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and emissions from production
operations and vehicles;
• Increased noise from seismic
operations, blasting, construction, oil
and gas drilling and production
operations;
• Reduction of roadless areas on
refuges;
• Noise and human presence effects
on wildlife behavior, breeding, and
habitat use;
• Disruption of wildlife migration
routes;
• Adverse effects on sensitive and
endangered species;
• Viewshed (an area of land, water, or
other environmental element that is
visible to the human eye from a fixed
vantage point) intrusion by roads,
traffic, drilling equipment, production
equipment, pipelines, etc.;
• Night sky intrusion from artificial
lighting and gas flares;
• Disturbance to archaeological and
cultural resources associated with
seismic exploration and road/site
preparation, associated with
maintenance activities, or by spills;
• Visitor safety hazards from
equipment, pressurized vessels and
lines, presence of hydrogen sulfide gas,
and leaking oil and gas that can create
explosion and fire hazards;
• Wildlife mortality from oil spills or
entrapment in open-topped tanks or
pits, poaching, and vehicle collisions;
• Fish kills from oil and oilfield brine
spills; and
• Vegetation mortality from oilfield
brine spills.
gas owners and operators (6), business
associations (5), and a Federal agency,
along with almost 80,000 form letter
comments from members of two
environmental organizations.
The majority of commenters were in
favor of strengthening and expanding
the regulations to better protect refuge
resources and values. Some commenters
requested that we not revise the existing
regulations, while others questioned the
legality of regulating non-Federal oil
and gas operations on refuges.
More information on the ANPR and
these comments is available at https://
www.fws.gov/refuges/oil-and-gas/
rulemaking.html and also at
www.regulations.gov at Docket No.
FWS–HQ–NWRS–2012–0086.
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Summary of Advance Notice of
Proposed Rulemaking Comments
Draft Environmental Impact Statement
We have prepared a draft
environmental impact statement (DEIS),
which is being published for public
comment simultaneously with this
proposed rule and is available at
www.regulations.gov and at https://
www.fws.gov/refuges/oil-and-gas/
rulemaking.html, by clicking on the link
titled ‘‘Oil and Gas DEIS.’’ The DEIS
describes three alternatives: Alternative
A—No action; Alternative B—proposed
rule (preferred alternative); and
Alternative C. Alternative C would
include all the proposed changes in
Alternative B, would expand the
coverage of the regulations to operations
on non-Federal surface locations that
drill beneath the surface of a refuge to
access their non-Federal oil and gas
right, and would require all existing
operations to obtain operations permits
and maintain financial assurance.
On February 24, 2014, we issued an
advance notice of proposed rulemaking
(ANPR) (79 FR 10080) to assist us in
developing this proposed rule. The
ANPR had a 60-day comment period,
ending April 25, 2014. On June 9, 2014,
we reopened the comment period for
another 30 days, ending July 9, 2014 (79
FR 32903). The ANPR requested the
public to focus their comments on seven
topics identified as major areas of
concern:
(1) Plans of Operations and Special
Use Permits;
(2) Operating Standards;
(3) Financial Assurances;
(4) Access Fees;
(5) Noncompliance;
(6) Existing Operations; and
(7) Impacts from the Proposed
Rulemaking.
We received comments from
unaffiliated private citizens (36),
conservation organizations (14), State
agencies (8), counties (2), Alaska Native
Corporations (2), a tribal agency, oil and
Overview of Proposed Regulations
This proposed rule was developed in
coordination with the NPS and as a
result is consistent with its recently
published proposed rule governing nonFederal oil and gas rights within the
NPS (NPS 9B Regulations). An operator
working on both NWRS and NPS lands
would experience little difference in
regulatory resource and use protections,
regulatory structure based on
performance standards, operations
permit processes and requirements,
monitoring and compliance, and other
terms and conditions. However, there
are some variations between the two
proposed rules necessitated by differing
authorities and missions and the scope
of the two agencies’ non-Federal oil and
gas programs.
The proposed rule would generally
require that operators receive permits,
either special use permits or rights-ofway (ROW) permits, for new nonFederal oil and gas operations on NWRS
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lands; provide a regulatory framework
to achieve the necessary protections for
refuge resources; and improve
regulatory consistency to the benefit of
both refuge resources and oil and gas
operators. The proposed rule contains
performance-based standards that
provide flexibility to resource managers
and operators to use various and
evolving technologies within different
environments to achieve the standards.
It establishes standards for surface use
and site management, specific resource
protections, spill prevention and
response, waste management, and
reclamation. Additionally, the proposed
rule contains procedures for permit
applications and Service review and
approval. Finally, there are provisions
for financial assurance (bonding), access
fees, mitigation, change of operator,
permit modification, and prohibitions
and penalties. We incorporated public
input received during the ANPR process
to shape the proposed rule.
Proposed Permitting Approach
The proposed permitting process
would allow the Service to ensure that
refuge resources, as well as public
health and safety, are protected to the
greatest extent practicable. Under the
proposed rule, the Service would
require the following:
• New operations are by permit only.
Operators conducting new operations or
modifying their existing operation in a
manner that will have additional
impacts on refuge resources beyond the
scope, intensity, and/or duration of
existing impacts must obtain an
operations permit (special use or ROW
permit) before commencing new or
modified operations within a refuge.
This requirement addresses exploration,
drilling, production, enhanced recovery
operations, transportation, plugging,
and reclamation operations. We
encourage operators to contact the
Service early in the process so that the
Service can provide suggestions to
improve the application. Additionally,
an operator will not be authorized to
begin operations until the operator has
received all other required State and
Federal permits.
• Operations under an existing
Service permit may continue under the
terms of that permit as long as they
comply with existing Federal, State, and
local laws and regulations, and the
general terms and conditions outlined
in their permit and this rule. Operators
would be required to obtain a new
permit or amend their existing permit if
they propose to conduct new operations
or modify their existing operations (i.e.,
propose activities outside the scope of
their existing approval that would have
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impacts on refuge resources as
determined by the Service). At the time
of reclamation, the Service would
review existing permits and modify
them as necessary to ensure compliance
with all Service reclamation standards.
• Operations not under a Service
permit and being conducted prior to the
effective date of the final rule
promulgating this subpart, or prior to a
boundary change or establishment of a
new refuge unit, would be considered
‘‘pre-existing operations’’ and may
continue to operate as they have been as
long as they comply with existing
Federal, State, and local laws and
regulations and the general terms and
conditions outlined in this proposed
rule. However, these operations would
be required to obtain a permit if they
propose to conduct new operations or
modify their operations in a manner that
will have additional impacts on refuge
resources.
• All operators must have a permit
for plugging and reclamation and
comply with all Service reclamation
standards.
• Wells drilled from outside refuges
or on non-Federal inholdings to access
non-Federal minerals would be exempt
from these regulations. However, except
where 43 CFR 36.10 controls any access
on, across, or through federally owned
or managed lands in Alaska, operators
must comply with the applicable
provisions of this subpart, which may
require obtaining an operations permit
for new access or amending an existing
authorization for access.
The Service believes that this
proposed permitting process is the best
way to manage oil and gas operations
and protect refuge resources on NWRS
lands. The most effective way for the
Service to avoid or minimize impacts is
by using time, place, and manner
stipulations. The ‘‘place’’ factor in the
‘‘time, place, and manner’’ equation is
often most important in terms of ability
to protect an environmental resource.
The risks created by a poorly selected
location cannot easily be overcome with
even the best operational methods.
Conversely, proper site selection can do
much to mitigate the effects of accidents
or environmentally unsound practices.
The ‘‘time’’ factor restricts the timing of
operations to remove or minimize
impacts on resources that are only
seasonally present. The ‘‘manner’’ factor
is the method in which oil and gas
activities are conducted, using best
management practices. Therefore,
requiring a permit that contains such
stipulations is the most effective way to
avoid or minimize impacts of new
operations.
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Since new operations create the
greatest additional impacts, proper site
planning, timing restrictions, and best
management practices can accomplish
great improvements in resource
protection. Existing operations with a
special use or ROW permit would be
allowed to continue their operations
under the terms of that permit, because
such stipulations have already been
implemented in those permits. A permit
requirement on an existing operation
not currently under a permit could
result in significant administrative and
operational costs, similar to those of
new operations, on both the Service and
the operator. These costs could be
disproportional to the environmental
benefits gained where the operator’s
well has already been drilled and the
area of operations (access route, well
site, production facilities, and routes for
gathering lines) has already been
established. Many of the unnecessary
impacts occurring from existing
operations without permits can best be
cost effectively addressed through
ensuring adherence to existing Federal
and State rules. Additionally, in this
proposed rule, the Service would
assimilate non-conflicting State oil and
gas rules so that our Law Enforcement
officers can ensure compliance with
those requirements. This approach to
permitting allows the Service to focus
its limited time and resources on those
new operations that create the highest
level of incremental impacts. Also, by
requiring all operations to have a permit
for plugging and reclamation, it ensures
rehabilitation of habitat damaged by all
operations.
When a well is drilled outside a
refuge or on a non-Federal inholding,
impacts to refuge resources are avoided
or minimized to a great extent.
Therefore, the Service’s approach of
exempting downhole aspects of these
operations that occur within a refuge
from the proposed regulations is
intended to provide an incentive for
operators to use directional drilling
from a surface location not administered
by the Service in order to reach their oil
and gas rights under the refugeadministered surface estate. However,
anytime an operator needs to physically
cross Service land for access, including
access to a non-Federal surface location,
such as an inholding, to conduct
operations then the operator must
comply with the applicable provisions
of this subpart (in Alaska, 43 CFR
36.10), including obtaining an
operations permit for new access or
modification of existing access.
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Operating Standards
Refuges have sustained significant
damages from leaks and spills,
unplugged or inadequately plugged
wells, abandoned equipment, and
insufficient or no reclamation of refuge
lands and resources. Avoidance of spills
and similar problems is the best means
of ensuring that taxpayers are not left
with the costs of restoring refuge
resources. By incorporating new
operating standards into the regulations,
this should ensure that any future
damages to refuge land and resources
are minimized to the greatest extent
possible.
Regulations based on performancebased standards do not grow stale over
time and provide flexibility to resource
managers and operators to achieve
standards across various environments
using new and evolving technology. In
contrast, prescriptive regulations define
specific requirements of time, place, and
manner without considering how these
measures achieve a desired level of
resource protection or how they may
apply in different environments. The
Service examined other Federal and
State oil and gas regulations and
determined that the performance-based
standards approach provided the most
efficient means of successfully avoiding
or minimizing the effects of oil and gas
operations on refuge resources and
visitor uses. A one-size-fits-all (i.e.,
prescriptive) approach does not work
due to the widely differing
environments and national extent of
refuges with oil and gas. The proposed,
performance-based standards model has
been successfully used by NPS for more
than 35 years.
In developing and analyzing the
proposed rule and alternatives, the
Service found that the preponderance of
impacts and risks of impacts to refuge
resources associated with exploration
and development of oil and gas emanate
from surface activities. This holds true
for operations that include the use of
hydraulic fracturing. The Service found
that well drilling and production
operations that include the use of
hydraulic fracturing have the same
types of surface activities (e.g., road and
pad construction, tractor-trailer truck
traffic, use of water, use of chemicals,
use of large diesel-powered engines,
generation of waste) as operations that
do not include hydraulic fracturing.
Hydraulic fracturing operations can, in
some cases, increase the scope,
intensity, and duration of activities
commonly associated with oil and gas
well drilling and completion. In context
of this proposed rule, the term
‘‘hydraulic fracturing’’ means those
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operations conducted in an individual
wellbore designed to increase the flow
of hydrocarbons from the rock formation
to the wellbore through modifying the
permeability of reservoir rock by
applying fluids under pressure to
fracture it. It does not include the
comprehensive list of all oil and gas
activities associated with development
that happens to include hydraulic
fracturing. While the proposed rule’s
operating standards are not specific to
hydraulic fracturing operations, they
were developed with the expectation
that hydraulic fracturing would occur
on refuge lands and give the Service the
ability to effectively manage the
additional impacts that hydraulic
fracturing may have on refuge resources
and uses.
The Service notes that the Bureau of
Land Management (BLM) has recently
promulgated regulations addressing
hydraulic fracturing on Federal and
Indian lands at 43 CFR part 3160 (80 FR
16128, March 26, 2015). We carefully
considered the recently promulgated
BLM oil and gas regulations on
hydraulic fracturing. The agencies take
different approaches to operating
standards, because of their differing
statutory bases for regulating the
exercise of oil and gas rights.
Specifically, the BLM has regulatory
authority over the development of the
Federal mineral estate, including
Federal oil and gas resources under
Federal and Indian lands. Whereas, the
Service regulations address private
property rights within refuge units and
are based on the directive of the
NWRSAA for the NWRS ‘‘to administer
a national network of lands and waters
for the conservation, management, and
where appropriate, restoration of the
fish, wildlife, and plant resources and
their habitats within the United States
for the benefit of present and future
generations of Americans.’’ Therefore,
the Service’s regulations are largely
focused on avoiding or minimizing
impacts to federally owned lands and
resources of the NWRS to the maximum
extent practicable by using the most
technologically feasible, least damaging
oil and gas development methods to
protect refuge resources and uses.
As a result, BLM can and has
appropriately set more prescriptive
standards in its regulation, while the
Service is proposing to set required nonprescriptive operating standards, similar
to the NPS 9B regulations, which allow
operators flexibility to design operations
while still protecting refuge resources,
uses, and visitor health and safety. For
example, BLM’s regulation at 43 CFR
3162.5–2 (Control of wells) sets a
performance standard with regard to
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protection of usable quality water, and
BLM also prescribes regulatory
measures necessary to achieve and
verify the performance standard (43 CFR
3162.3–3(e)). The Service’s approach is
to review an operator’s submissions to
determine if they are avoiding or
minimizing impacts to the maximum
extent practicable, and if not, to add
terms and conditions in the permits to
ensure that they do so.
State Regulations
The Service’s goal, reflected in this
proposed rule, is to complement State
regulatory programs to the benefit of the
surface estate and the resources for
which we are entrusted, while not
compromising the ability of operators to
develop their resource. The Service and
State oil and gas agencies have
fundamentally different missions. The
Service’s legal mandate is to conserve
fish, wildlife, and plant resources and
their habitats for the benefit of present
and future generations. In contrast, State
oil and gas regulations typically focus
on the protection of mineral rights and
‘‘conservation’’ of the oil and gas
resources (i.e., minimizing waste of oil
and gas resources). From a regulatory
perspective, the Service must manage
oil and gas operations in order to protect
its surface resources to meet its mission
and congressional mandate.
Most States provide for protection of
surface and groundwater via well design
requirements and oil pollution control
measures. However, State programs vary
widely with regard to protection of
surface resources and surface use
conflicts. In general, State oil and gas
regulations do not address protections
necessary for wildlife and its habitat.
The Service conducted a review of State
oil and gas regulations in 2013. Of the
43 States that have oil and gas
regulations, all have requirements for
plugging wells, but few have adequate
requirements for removal of equipment
and full reclamation of the site
comparable to Service standards. Some
State laws or regulations address
impacts or damage to surface land
owners; some do not. Some afford
stronger protection to sensitive areas
such as wildlife management areas;
others do not. Some States address the
use and closure of open pits; others do
not. Bond requirements, oil spill
cleanup and reporting, and fines differ
considerably, as does the frequency of
inspections of oil and gas exploration
and production sites. Therefore, one of
the issues that operators face is differing
procedures and requirements from State
to State. The proposed regulations are
intended to provide a consistent set of
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procedures and operational standards
for operations on refuges.
The intention of the Service’s
proposed regulations is to avoid or
minimize potential procedural and
operational duplication of State
programs, while working cooperatively
to achieve common objectives between
the Service, States, and operators. For
example, the proposed regulation
includes a downhole operating standard
for isolation and protection of
subsurface (and surface) resources
throughout the life of a well. The
standard would inform the public and
operators of the Service’s responsibility
for all its resources, including
groundwater. However, the Service
generally proposes not to otherwise
regulate downhole activities. We
welcome comments on whether, and to
what extent, compliance with State
regulations (as a general matter or with
respect to particular States) is expected
to provide adequate protection of
groundwater and other subsurface
resources. Meeting operating standards
specific to downhole activities, by
compliance with State regulation,
industry operating guidelines, or
Service-identified requirements, also
serves to protect surface resources by
reducing the risks associated with well
control and well construction and
maintenance.
In the context of enforcing State oil
and gas regulations, the Service would
focus on noncompliance issues that
have the potential to adversely affect
refuge resources and visitor uses by
assimilating non-conflicting State oil
and gas law into our prohibited acts and
penalties. Assimilation allows us to
enforce on refuges State oil and gas
requirements as a matter of Federal law.
States may not have enough inspectors
to ensure companies are meeting State
standards. Louisiana, the State with the
most non-Federal oil and gas production
on refuge lands, recently reported that it
lacks an adequate number of inspectors
and its inspection rate is too low. Under
this proposed rule, the Service would
work cooperatively with States to
ensure that operators on refuges are
meeting both Service and State
regulations that pertain to oil and gas
operations.
Section-by-Section Analysis
§ 28.11
Purpose of Regulations
Proposed § 28.11 would be amended
for a technical correction.
§ 29.32
Non-Federal Mineral Rights
Proposed § 29.32 would be amended
to clarify the scope and general policy
of subpart D.
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Proposed § 29.32(a) clarifies that this
section is applicable to all NWRS nonFederal mineral rights owners within
the National Wildlife Refuge System,
excluding coordination areas, as defined
in 50 CFR 25.12, and that it is the
expectation of the Service that: All
exploration, development, and
production operations are conducted in
a manner that avoids or minimizes
impacts to refuge resources to the
maximum extent practicable; operators
comply with all applicable Federal and
State laws; and all structures and
equipment are removed when no longer
necessary and the area restored to preoperation conditions to the extent
possible. Proposed § 29.32(b) states that
nothing in the section will be applied to
contravene or nullify rights vested in
holders of mineral interests on refuge
lands.
§§ 29.40–29.44 Purpose and Scope
The existing regulations are
inadequate to protect the resources the
refuges were created to maintain. The
proposed rule would clarify that the
revised regulations will apply to all
non-Federal oil and gas operations
conducted on NWRS lands, excluding
coordination areas, in order to protect
federally owned or refuge-administered
lands, waters, or wildlife resources;
visitor uses or experiences; and visitor
and employee health and safety, as
Congress prescribed as the mission of
the NWRS at 16 U.S.C. 668dd(a)(4).
The purpose of proposed § 29.40(a) is
to ensure operators use technologically
feasible, least-damaging methods to
remove non-Federal oil and gas
resources from the subsurface of NWRS
lands in order to protect and conserve
refuge resources. Examples of
technologically feasible, least-damaging
methods include, but are not limited to,
use of directionally drilling (slant
drilling) to avoid surface impacts to
important habitat, consolidating
infrastructure (drilling multiple wells
off a single pad) to reduce
fragmentation, use of survey methods
that do not require line of sight, or mat
drilling in sensitive habitats.
Proposed § 29.40(b) provides that
subpart D applies to operators who
conduct or propose to conduct nonFederal oil and gas operations on the
Service-administered surface estate of
lands held in fee or less-than fee
(excluding coordination areas) as well
as to operations on any waters within
the boundaries of the refuge. Because
operations on and in the waters within
refuge boundaries have the potential to
broadly impact resources throughout the
refuge, we are proposing that these
regulations apply on and within waters
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subject to the jurisdiction of the United
States located within that unit,
including navigable waters and areas
within their ordinary reach (up to the
mean high-water line in places subject
to the ebb and flow of the tide, or up
to the ordinary high-water mark in other
places that are navigable), irrespective
of ownership of submerged lands,
tidelands or lowlands, and
jurisdictional status. Further, we note
that Congress specifically defined the
term refuges in the NWRSIA as
including ‘‘waters, or an interest in land
and waters’’ at 16 U.S.C. 668ee(11).
Operations are defined in proposed
§ 29.50 as ‘‘all existing and proposed
functions, work, and activities in
connection with the exercise of oil or
gas rights not owned by the United
States and located or occurring within a
refuge. Operations include, but are not
limited to: Access by any means to or
from an area of operations; construction;
geological and geophysical exploration;
drilling, well servicing, workover, or
recompletion; production; enhanced
recovery operations; gathering
(including installation and maintenance
of flowlines and gathering lines);
storage, transport, or processing of
petroleum products; earth moving;
excavation; hauling; disposal;
surveillance, inspection, monitoring, or
maintenance of wells, facilities, and
equipment; reclamation; road and pad
building or improvement; shot hole and
well plugging and abandonment, and
reclamation; and all other activities
incident to any of the foregoing.
Operations do not include
reconnaissance surveys as defined in
this subpart or oil and gas pipelines that
are located within a refuge under
authority of a deeded or other right-ofway.’’
These regulations are not intended to
apply to operations on neighboring
private lands or non-Federal surface
estates within refuge boundaries. As
discussed previously, if an operator
must physically cross Service lands, the
operator must obtain an operations
permit and comply with other
applicable provisions for that access.
Use of aircraft, including, but not
limited to, airplanes, helicopters, and
unmanned aircraft vehicles that do not
land on, or are not launched from,
refuge-administered surface estate land
or waters, is not subject to these
regulations.
Proposed § 29.40(c) of this subpart
would acknowledge that the intent of
the proposed rule is to reasonably
regulate such activities, but not to result
in a taking of private property. Although
we would place refuge-protecting
mitigation measures on proposed
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operations, the Service does not intend
that implementation of these regulations
would result in a denial of access to
prospective operators to exercise their
non-Federal oil and gas rights. We
would work with operators to ensure
they have reasonable access to their
operations and that refuge resources and
values are protected without resulting in
a taking in violation of the Fifth
Amendment of the U.S. Constitution.
Proposed § 29.41 clarifies this subpart
applies to operators if they conduct or
propose to conduct a non-Federal oil or
gas operation within a refuge.
Proposed § 29.42 clarifies what
authorization is necessary to conduct
operations on NWRS lands. The
regulations at § 29.42(a) would require
that all operators must demonstrate ‘‘up
front’’ that they hold a valid existing
right to conduct operations within a
refuge. Until the operator demonstrates
a valid existing right to conduct
operations, the operator may not operate
within a refuge and we will not
undertake a formal review of the
operator’s permit application.
Proposed § 29.42(b) would require
operators with a new oil and gas
operation to obtain a temporary access
permit to conduct reconnaissance
surveys and/or an operations permit to
conduct drilling or production within a
refuge. This permit requirement would
ensure that new operations on NWRS
lands use best management practices
and are conducted in a time, place, and
manner that avoid or minimize potential
impacts to refuge resources to the
maximum extent practicable.
Proposed § 29.42(c) would clarify that
for refuge units in Alaska, access to oil
and gas rights within any refuge would
continue to be governed by title XI of
the Alaska National Interest Lands
Conservation Act (ANILCA; 16 U.S.C.
410hh–410hh–5, 16 U.S.C. 3101 et seq.,
43 U.S.C. 1601 et seq.), and the
Department’s implementing regulations
and standards found at 43 CFR part 36
and 50 CFR part 29 subpart B. This
includes authorization to charge access
fees, as well as penalties for any
violations of permits issued under these
regulations. However, where the
proposed rule does not conflict with
these provisions, regulations, and
standards, the proposed rule will apply
to operations in Alaska. For example,
the operating standards at proposed
§§ 29.110–29.118 and the provisions
regarding well plugging at proposed
§§ 29.180–29.181 would be incorporated
into an operator’s ROW permit.
Additionally, the prohibited acts and
penalties at proposed § 29.190 would
apply where they do not conflict.
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including ownership documentation,
contact information, a scaled map
clearly delineating the existing area of
operations, and copies of all relevant
plans and permits. This information is
needed for future monitoring of the preexisting operations to ensure
compliance with existing standards
(local, State, Federal).
The proposed regulations at § 29.62(a)
would require the operator to obtain an
operations permit if the operator enters
a new phase of operations, such as
when an operator ends production
operations and proceeds to well
plugging and final reclamation.
Proposed § 29.62(b) would require the
operator to obtain an operations permit
if the Service determines that the
operator is modifying a pre-existing
operation. Modifying is defined at
proposed § 29.50 as ‘‘conducting new
activities that are outside the scope of
your existing operations in a manner
that has additional impacts on refuge
resources, visitor uses, refuge
§ 29.50 Definitions
administration, or human health and
The proposed rule would establish
safety beyond the scope, intensity, and/
and organize definitions for terms
or duration of existing impacts. If an
commonly used throughout the
operator is considering altering their
regulations.
operation in a manner that may result in
§§ 29.60–29.64 Pre-Existing Operations additional impacts to refuge resources,
they should consult with the Service to
Proposed § 29.60 defines pre-existing
determine whether proposed changes
operations as those being conducted
would constitute a modification.
under local, State, and Federal laws and Examples of a modification include
regulations and without an approved
drilling additional wells from the same
permit from the Service as of the
pad, creating additional surface
effective date of a final rule, or prior to
disturbance (e.g., expanding the
a boundary change or establishment of
footprint of a well pad, realigning a
a new refuge unit. These operations may road), or converting a natural gas well
continue without an operations permit
into a wastewater disposal well, as these
subject to the terms and conditions of
modifications will have impacts beyond
this section. Proposed operations that
the scope, intensity, and/or duration of
become located within a refuge unit as
existing impacts. This provision is not
the result of a boundary adjustment
intended to apply to minor actions, such
would be subject to the same process.
as repositioning of surface facilities
Proposed § 29.61(a)–(d) describes the
within the current footprint of preinformation for pre-existing operations
existing operations, minor changes in
that would be required to be submitted
color schemes, or minor, non-routine
to the Service to be in compliance with
maintenance actions.
the rule. For a new oil and gas operation
Proposed § 29.63 ensures that prewithin a refuge, we would require an
existing operations will be reclaimed to
operator to submit the information
Service standards at proposed
necessary for us to approve the least§ 29.117(d). Operators must comply
damaging locations for its access route,
with the proposed reclamation
drilling site, production facilities, and
requirements, including obtaining an
gathering lines routes. However, for pre- operations permit for all reclamation
existing operations, the operator’s well
activities.
Under proposed § 29.64, pre-existing
has already been drilled and the area of
operations would have to comply with
operations (access route, well site,
the general terms and conditions at
production facilities, and routes for
proposed §§ 29.120 and 29.121, as well
gathering lines) has already been
as proposed §§ 29.170(a) (change of
established. Therefore, under proposed
operator), 29.180–29.181 (well
§ 29.61, within 90 days of the effective
plugging), 29.190 (prohibited acts and
date of a final rule promulgating this
penalties), and 29.200 (appeals).
subpart, operators would have to
Suspensions would not be necessary if
provide the Service with the
operators are meeting Service standards.
information described in this section,
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Proposed § 29.43 would authorize an
operator who currently holds an
approved permit to continue operations,
subject to the applicable provisions of
that permit, until they propose to
conduct new operations or modify
existing operations.
If an operator does not hold an
existing special use permit but is
conducting an operation prior to the
effective date of the final rule, proposed
§ 29.44 would authorize the operator to
continue with this operation in
accordance with local, State, and
Federal laws and regulations. However,
these operations would need to comply
with proposed §§ 29.60 through 29.63,
which outline additional information
requirements, prohibitions, and
reclamation requirements, as well as the
requirements that, before conducting a
new operation or modifying a preexisting operation, an operator must
obtain an operations permit in
accordance with §§ 29.90 through 29.97.
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§§ 29.70–29.73 Temporary Access
Permits
Proposed §§ 29.70–29.73 outline the
process to obtain a temporary access
permit. The temporary access permit is
a special use permit that authorizes an
operator to conduct reconnaissance
surveys. Proposed § 29.71 identifies the
information necessary for the Service to
evaluate the operator’s proposal to
conduct reconnaissance surveys. This
includes a brief description of intended
operations so we can determine the
operator’s reconnaissance survey needs.
Proposed § 29.72 describes the process
for us to review the operator’s
temporary access permit application for
completeness. Under proposed § 29.73,
a temporary access permit would be
issued for reconnaissance surveys for a
period not to exceed 60 calendar days,
but may be extended for a reasonable
additional period when justified by an
operator.
§ 29.80 Accessing Oil and Gas Rights
From a Non-Federal Surface Location
(Including Inholdings)
As discussed above, operators are
exempt from the regulations if they
directionally drill from a non-Federal
surface location, including on nonFederal inholdings, and do not require
physical access across Service lands to
reach a bottom hole located within
refuge boundaries. Proposed § 29.80
identifies the information an operator
would be encouraged to submit to the
Service to ensure that the Service has
the necessary information to contact
operators in case of an emergency or if
unanticipated damages to refuge
resources occur. If the operator needs to
physically cross Service land for access
to non-Federal lands, the operator
would be required to comply with
applicable provisions of this subpart
only for that access, including obtaining
an operations permit for any new access
or a modification of existing access.
§§ 29.90–29.97 Operations Permit:
Application
The proposed regulations require
early collaboration in the planning
process to provide operators guidance
on information requirements, alternative
areas of operations locations, and
potential mitigation and avoidance
measures.
The proposed rule at §§ 29.90–29.97
organizes information requirements for
each type of operation. Further
discussion of the specific information
proposed to be collected can be found
under the section below, Paperwork
Reduction Act of 1995 (PRA).
Proposed § 29.90 would require
operators to submit an operations
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permit application, unless the operator
is exempt from those requirements
because they are operating under an
existing special use or ROW permit,
they are operating a pre-existing
operation, they are only conducting a
reconnaissance survey, or they are
drilling from a private (non-Federal)
surface location that is either outside
the refuge boundary or is a surface
inholding within the boundary,
provided that no operations associated
with the oil and gas right take place on
federally owned or Serviceadministered surface estate within the
refuge.
Proposed § 29.91 urges operators to
have a pre-application meeting with the
Service to allow for an early exchange
of information, including discussion of
Service and operator concerns, as well
as avoid delays in the application
process. At this meeting, operators are
encouraged to provide information on
oil and gas ownership (including deeds
or other relevant information which the
applicant believes would control the
applicability of the regulations under
this subpart to the applicant’s
operations), operation schedules,
contact information for company
officials and their contractors, map of
the proposed area of operations,
description of access and transportation
plans, and a description of the survey
methodology for refuge resources, such
as wildlife or cultural resources.
Proposed § 29.92 clarifies that
operators do not need to include
previously submitted information in
their operations permit application,
provided such information is on file
with the Service, still current, and
accurate. Operators may also submit
copies of documents submitted to other
agencies to meet the information
requirements of their operations permit
application.
Proposed § 29.93 clarifies that the
operator only needs to submit the
information for the operation for which
they are seeking approval.
Proposed § 29.94 lists information
requirements common to all operations,
including information about existing
conditions of the area of operations,
proposed new surface uses, use of
water, management of waste including
flowback fluids from hydraulic
fracturing operations, mitigation
actions, alternatives considered, a spill
control and emergency preparedness
plan, and proposed reclamation.
Proposed § 29.95 identifies the
additional information a geophysical
operator would need to submit to the
Service.
Proposed § 29.96 identifies the
additional information a drilling
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operator would need to submit to the
Service.
Proposed § 29.97 identifies the
additional information a production
operator would need to submit to the
Service.
§§ 29.100–29.104 Operations Permit:
Application Review
The proposed regulations at
§§ 29.100–29.104 establish a two-stage
permit application review process (an
initial review and a formal review),
provide realistic timeframes to provide
notice back to an operator, and
consolidate the final decisions the
Service can make on an operator’s
permit application.
Proposed § 29.100 provides general
information about how the Service will
review an operator’s application, which
is an initial review to ensure that
information is complete followed by
formal review. Proposed § 29.101
describes the Service’s initial review of
an operator’s permit application. During
initial review, the Service would
determine whether the applicant has
supplied all information necessary for
the Service to evaluate the operation’s
potential effects to federally owned or
administered lands, waters, or resources
of Service units; visitor uses or
experiences; or visitor or employee
health and safety. The Service would
respond to an applicant within 30 days
and state whether the information
contained in the permit application is
complete, identify the additional
information required for the application
to be complete, or notify the applicant
that the Service needs more time to
complete review. Once a permit
application is complete, the Service
conducts a formal review. For operators
accessing oil and gas rights within
Alaska refuges, proposed § 29.101(c)
ensures that the regulations under title
XI of ANILCA apply.
During the formal review process,
under proposed §§ 29.102–29.103, the
Service would evaluate the potential
impacts of the proposed operations on
refuge resources in compliance with
applicable Federal laws, such as the
National Environmental Policy Act of
1969 (NEPA, 42 U.S.C. 4321 et seq.); the
Endangered Species Act of 1973, as
amended (ESA, 16 U.S.C. 1531 et seq.);
the Migratory Bird Treaty Act (MBTA,
16 U.S.C. 703–712); and the National
Historic Preservation Act of 1966
(NHPA, 16 U.S.C. 470 et seq.). Under
proposed § 29.102(b), the Service would
identify any additional operating
conditions that would apply to the
operator’s approved application.
Operators conducting non-Federal oil
and gas operations in refuge units must
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also comply with all applicable nonconflicting State and local laws
(proposed 50 CFR 29.120). As discussed
above, it is the policy of the Service to
be consistent with and complementary
to State law to the maximum extent
possible. Operators would still be
required to obtain State-issued permits
where applicable.
Additionally, proposed § 29.103(a)
requires that, before approving an
operations permit, the Service
determine that the operator will use
technologically feasible, least-damaging
methods that provide for protection of
the refuge’s resources and public health
and safety.
Proposed § 29.103(b) includes two
prerequisites to approval: (1) Submittal
of adequate financial assurance, and (2)
proof of adequate liability insurance.
Proposed § 29.104 describes the
actions the Service will take on the
operations permit application. Proposed
§ 29.104(a) establishes a general 180-day
timeframe to complete its formal review.
These decisions require time to
adequately analyze an operator’s
proposal, work with the operator on a
design that incorporates acceptable
avoidance and mitigation measures, and
compliance with the associated Federal
statutory responsibilities such as NEPA,
ESA, and NHPA. The proposed
regulations would allow for a longer
period of time, if the parties agree to it,
or if the Service determines that it needs
more time to comply with applicable
laws, executive orders, and regulations.
The Service seeks comment on whether
180 days is reasonable and any
incremental impacts on operators.
For operations that need to access
inholdings in Alaska, proposed
§ 29.104(b) provides the timelines for
ANILCA title XI/Access (43 CFR part
36).
Proposed § 29.104(c) would establish
two final actions: (1) Approved, with or
without conditions; or (2) Denied, and
the justification for the denial. The
Service would notify the operator in
writing of the final action. If approved,
this written notification constitutes the
Service’s authorization to conduct
activities.
§§ 29.110–29.119 Operating Standards
Proposed §§ 29.110–29.119 would
clarify the purpose and function of
operating standards. As discussed
above, the Service would set
performance-based operating standards
to allow operators the flexibility to
design their proposed operation using
the latest technological innovations
with an overall objective of using
technologically feasible, least-damaging
methods that will best protect refuge
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resources, values, and visitor health and
safety.
The proposed rule would organize
operating standards into the following
categories: §§ 29.111 through 29.116 are
operating standards that apply to all
operations; § 29.117 contains operating
standards that apply to reclamation;
§ 29.118 contains operating standards
that apply to geophysical operations;
and § 29.119 contains operating
standards that apply to drilling and
production operations, including
enhanced recovery operations.
Organizing the standards in this manner
would allow the Service and the
operator to readily understand which
operating standards are applicable to the
particular type of proposed operation.
Proposed § 29.111 addresses general
facility design and management
standards. These include the extent of
surface disturbance, spill control, waste
management, air emissions, and control
of noxious and invasive species.
Proposed § 29.111(a) would ensure
that either existing or newly created
surface disturbance is kept to the
minimum necessary for the safe conduct
of operations.
Proposed § 29.111(b) would require
installation and maintenance of
secondary containment for all
equipment and facilities using or
containing contaminating substances
such as oil, brine, formation water, or
well stimulation chemicals. This could
include constructing dikes around tank
batteries to contain spills, fencing off
the area to exclude livestock and large
wildlife to prevent them from rubbing
against valves or pipes and causing
spills, stormproofing buildings used for
storing hazardous chemicals, or using
containment tubs or trays underneath
chemical containers to catch drips or
spills.
Proposed § 29.111(c) would require
maintaining waste in as small an area as
feasible. This could include a focus on
practices that minimize the generation
of waste, but could also include a waste
containment system, waste disposal
schedule, and identification of
responsible parties if waste is not
properly confined.
Proposed § 29.111(d) would require
adherence to all State and Federal air
quality standards.
Proposed § 29.111(e) would require
operators to construct, maintain, and
use roads to minimize fugitive dust
emissions. Many methods are available
to minimize fugitive dust emissions,
such as vehicle speed limits (< 25 mph),
applying water or other refuge-approved
dust control treatment, and constructing
roads to a minimum refuge-approved
design standard.
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Proposed § 29.111(f) would require
operators to minimize emissions of air
pollutants and releases or flaring of gas.
Some States require additional air
quality devices be installed (e.g.,
Colorado’s secondary burn units) or
installing additional scrubbers in areas
not meeting attainment goals.
Proposed § 29.111(g) would require
operators to minimize leakage of air
pollutants and hydrocarbons to the
atmosphere.
Proposed § 29.111(h) would require
operators to control the introduction of
noxious and invasive species on their
area of operations. This could include
inspecting all vehicles prior to their
arrival on the refuge, removing noxious
weeds from equipment and vehicles,
using only approved native species in
reclamation seed mixes, and
immediately implementing interim
reclamation in order to minimize the
potential for the spread of invasive
species in disturbed soils.
Proposed § 29.111(i) would require
operators to maintain a safe distance
(i.e., 500 feet) from any refuge structure
or facility used by refuges for
interpretation, public recreation, or
administration in order to protect
federally owned or administered
structures or facilities, visitor uses or
experiences, or visitor or employee
health and safety. This distance may
increase or decrease depending on the
situation.
The Service is proposing specific
standards at § 29.112 that would address
fish and wildlife protection.
Proposed § 29.112(a) would require
that operators and contractors abide by
all refuge regulations to protect fish,
wildlife, and plants. Our regulations in
title 50, chapter I, subchapter C of the
Code of Federal Regulations provide
general and specific refuge regulations,
such as hunting and fishing, safety, and
recreation, among others.
Proposed § 29.112(b) would require
that operators, as well as their
employees and contractors, be educated
and informed by refuge staff of
applicable wildlife protection practices.
This would include information such as
obeying all posted speed limits,
avoiding closed refuge areas, and
training staff on what constitutes
wildlife violations.
Proposed § 29.112(c) would require
operators to provide a safe environment
for fish and wildlife free from physical
and chemical hazards. This could
include maintaining equipment in good
condition, immediately reporting and
cleaning all spills, and proactive
management to prevent spills.
Proposed § 29.112(d) would require
that operators comply with all seasonal
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and other restrictive wildlife buffers.
This could include following timing
buffers (e.g., avoid areas between the
hours of 6 p.m. through 6 a.m.), seasonal
buffers (e.g., avoid areas between
November 15 and April 15), or distance
buffers (e.g., avoid human presence
within 1⁄4 mile of certain nest sites).
The Service is proposing specific
standards at § 29.113 that would address
hydrologic resources.
Proposed § 29.113(a) would require
operators to maintain a safe distance
(i.e., 500 feet) from all waters to reduce
the risk of contaminating those waters
with oil and gas-related fluids. This
distance may increase or decrease
depending on the situation. Often
distance and slope are the only buffers
that prevent contaminants from
reaching waterways.
Proposed § 29.113(b) would require
operators to construct facilities in a
manner to maintain hydrologic
movement and function. This could
include installing structures to divert
runoff away from well sites, not siting
facilities in floodplains, or installing
culverts in access roads to maintain
natural drainage patterns.
Proposed § 29.113(c) would require
operators to maintain the existing water
quality of the site. This could include
applying spill prevention, containment,
and countermeasures (SPCC) practices
to prevent chemical, oil, or brine leaks
and spills from contaminating surface
water, and implementing erosion
control measures to prevent or minimize
siltation of surface waters.
Proposed § 29.113(d) would require
operators to maintain natural levels of
erosion and sedimentation. This could
include recontouring and reseeding
disturbed areas, implementing larger
buffers away from waterways, building
roads and pads according to refuge
specifications, and installing water bars
and right-sized culverts.
The Service is proposing specific
standards at § 29.114 that would address
safety.
Proposed § 29.114(a) would require
operators to maintain their area of
operations in a manner that avoids or
minimizes the cause or spread of fire.
This could include maintaining fire
breaks around facilities and equipment,
and not driving across grassy areas
during hot, dry conditions.
Proposed § 29.114(b) would require
operators to maintain all facilities and
operations to prevent physical and
chemical hazards to refuge resources,
visitors, and employees. This could
include storing chemicals onsite,
locking storage buildings and sheds, and
substituting hazardous chemicals with
non-hazardous ones.
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Proposed § 29.114(c) would require
operators to provide site security to
prevent hazardous conditions from
affecting visitors or employees. This
could include fencing around the
facility, pump jack, well pad, or well
head; locking buildings; or posting
guards.
The Service is proposing specific
standards at § 29.115 that would address
lighting and visual impacts.
Proposed § 29.115(a) would require
operators to reduce effects to night skies
by minimizing light emissions from
their operations. This could include
using the minimum lighting necessary
for site safety, and directing lights
downward to minimize the effect on
night skies.
Proposed § 29.115(b) would require
operators to minimize the contrast
between their facilities and the
surrounding environment by blending
their operations with the background to
minimize their appearance. This could
include painting facilities, equipment,
and buildings to blend with the
background; siting facilities in low areas
beyond hills or rises; using topography
to help screen facilities; and using road
and well pad materials similar in
composition and color to minimize their
appearance (e.g., using native materials
for roads and well pads).
The Service is proposing specific
standards at § 29.116 that would address
noise reduction. This could include
sound abatement techniques, such as
hospital-grade mufflers, constructing
sound buffers (e.g., hay bales around a
drilling rig), and reducing speed limits
to reduce the effects of noise on wildlife
and visitors.
The Service is proposing specific
standards at proposed § 29.117 for
reclamation and protection measures
required of all operators.
Proposed § 29.117(a) would require
the operator to promptly clean up and
remove contaminating substances from
their area of operations in accordance
with all applicable Federal, State, and
local laws.
Proposed § 29.117(b) would require
partial reclamation of areas no longer
necessary for their operations. It would
also require an operator to initiate
reclamation within 6 months of
completion of authorized operations.
Proposed § 29.117(c) would require an
operator to protect all survey markers.
Proposed § 29.117(d) provides steps
that must be accomplished to reestablish the ecological function of the
site.
The Service is proposing specific
standards at proposed § 29.118 for
operators proposing geophysical
operations.
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Proposed § 29.118(a) directs operators
to use surveying methods that minimize
the need for vegetative trimming and
removal. This could include avoiding
use of line-of-sight surveying methods.
Proposed § 29.118(b) protects
pipelines, telephone lines, railroad
tracks, roads, power lines, water wells,
oil and gas wells, oil- and gasproduction facilities, and buildings.
This could include using industryaccepted minimum safe-offset distances.
Proposed § 29.118(c) directs operators
to match equipment to the environment
to minimize impacts. This could
include using boat-mounted drilling rigs
in marshy habitats, putting helicopter
equipment into areas where impacts
would be difficult to mitigate with
tracked vehicles, or conducting
operations when ground is frozen or
sensitive species are not present.
Proposed § 29.118(d) describes how
operators are to reclaim sites when
using shot holes as the energy source.
This could include using biodegradable
charges, plugging shot holes, and
leaving sites clean without impeding
surface reclamation or posing a hazard.
Proposed § 29.118(e) clarifies that, for
geological and geophysical exploration
for oil and gas within the coastal plain
of the Arctic National Wildlife Refuge,
the regulations at 50 CFR part 37 apply.
The Service is proposing specific
standards at proposed § 29.119 for
operators proposing drilling and
production operations.
Proposed § 29.119(a) establishes
drilling standards, including waste
management, such as using
containerized mud systems, avoiding
earthen pits, and using sound well
control equipment and practices. Well
design and operation must provide for
isolation and protection of usable water
zones. Drill cuttings must be disposed of
at an approved site off-refuge.
Proposed § 29.119(b) establishes
standards for production operations
including monitoring and maintenance
of equipment, proper site security, and
removal of unnecessary equipment.
§§ 29.120–29.122
Conditions
General Terms and
The Service proposes a ‘‘General
Terms and Conditions’’ section to
summarize those terms and conditions
that apply to all operations.
Proposed § 29.120(a) outlines the
operating standards that all operators
must comply with and states that those
standards for new operations would be
incorporated in the terms and
conditions of their operations permit.
This section also notifies an operator
that violation of these terms and
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conditions can lead to fines and/or
prosecution.
The proposed § 29.120(b) holds
operator’s contractors or subcontractors
accountable for compliance with all
requirements of this subpart.
Under proposed § 29.120(c), the
Service would retain a right to charge
fees for processing and administering
permit applications if they prove to be
a significant workload. The Service may
still require reimbursement for costs
incurred in processing applications,
whether or not the application is
withdrawn or a permit is issued.
Proposed § 29.120(d) restricts the use
of surface water or groundwater on
NWRS lands. If not covered by a Stateheld water right, any use of water
within a refuge must be approved by the
Service upon the Service’s
determination that it will not impair any
refuge resource or use.
Proposed § 29.120(e) would require
operators to provide a statement under
penalty of perjury, signed by an official
authorized to legally bind the company,
that the operations will comply with
applicable Federal, State, and local laws
and regulations and that the information
provided to the Service is true and
correct.
Proposed § 29.120(f) would require an
operator to indemnify and hold
harmless the United States and its
employees from all liability resulting
from activities conducted under an
operations permit.
Proposed § 29.120(g) would require an
operator to take all reasonable
precautions to avoid, minimize, rectify,
or reduce overall impacts of the
proposed operations. The operator may
be required to mitigate for any impacts
to refuge resources and lost uses by
creating or restoring habitat, or
providing other forms of compensation
under applicable State laws.
Proposed § 29.120(h) holds operators
responsible for unauthorized or
unanticipated damages because of their
operations, and actions of their
employees or contractors, and
reclamation of damages caused by
operations as a result of weather, fire,
earthquakes, or similar uncontrolled
actions. For example, an operator would
remain responsible for removing a tank
from a marsh after a hurricane blows it
off site.
Because monitoring and reporting
requirements apply, in varying degrees,
to all operations, the Service is
proposing to include monitoring and
reporting requirements under general
terms and conditions at proposed
§ 29.121.
Proposed § 29.121(a) would require an
operator to provide the Service access to
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its area of operations for monitoring
compliance with the rule. This
monitoring may include sample
collection and analysis of soil, surface
water, or ground water. Access to the
site is open to the Service regardless of
time, season, and date, and could
include third-party monitors or refuge
staff.
Proposed § 29.121(b) would allow the
Service to require that operators hire
third-party contractors (third-party
monitor) when necessary to ensure
compliance and protect refuge resources
and values. The use of third-party
monitors helps ensure that the Service
receives unbiased, reliable, and timely
monitoring information demonstrating
an operator’s compliance with its
permit. This proposed section also
describes the criteria that the Service
would consider when making the
decision to require an operator to pay
for a third-party monitor. The criteria
could include an operator’s proposal for
self-monitoring. The third-party monitor
would report directly to the Service to
ensure oversight and accountability and
prevent the appearance of a conflict of
interest. Use of third-party monitors is
a common industry practice.
Proposed § 29.121(c) would require
operators to report any injuries to or
mortality of fish, wildlife, or endangered
or threatened plants resulting from their
operations to the Service within 24
hours of any incident. Such
occurrences, regardless of the context,
should be reported as soon as possible,
but no later than 24 hours after the
incident. This could include a gas
release resulting in wildlife mortality,
collisions with company vehicles, or
entrapment in a facility or on a well
pad. This requirement is in addition to
any report required by other applicable
Federal or State laws.
Proposed § 29.121(d) would require
operators to report any accidents
involving serious personal injury or
death, and of any fires or spills on the
site immediately after the accident
occurs. Operators must also provide a
full written report to the Service within
90 days of the incident explaining what
happened, why it happened, who was
involved, the results, and how the
company intends to prevent similar
incidents in the future. This
requirement is in addition to any report
required by other applicable Federal or
State laws.
Proposed § 29.121(e) would require
that the operator submit any
information requested by the Service
that is necessary to verify compliance
with either a provision of the operations
permit or this subpart. To ease any
burden, the proposed rule would allow
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an operator to submit reports that the
operator has already submitted to a
State or other Federal agency to meet
this reporting requirement.
Proposed § 29.121(f) would require
that the operator provide public
disclosure of chemicals used in
hydraulic fracturing operations using
the FracFocus Chemical Disclosure
Registry or another approved database
system.
Proposed § 29.122 provides that an
operations permit is valid for the period
of the operation. However, a permit may
be modified by an operator or the
Service, as outlined in proposed
§ 29.160.
§§ 29.140–29.142
Access Fees
Operators may need to cross Federal
lands where they have no pre-existing
property or other legal right to do so.
Under proposed § 29.140, operators
would have to obtain permission from
the Service for such access across
NWRS lands. Proposed § 29.140(b)
clarifies that access in Alaska is
governed by regulations and standards
at 43 CFR part 36. This would include
access fees and violations of permits
issued under those regulations.
Proposed § 29.141 provides that the
Service may charge the operator a fee for
such additional access. The NPS, Forest
Service, and Bureau of Land
Management (BLM), as well as private
landowners, already charge similar fees
for such access. Such fees are based on
the fair market value of the use of
Federal property outside the scope of
their property right.
Proposed § 29.141(a) would require
operators to pay a fee for new access
(e.g., roads or gatherings lines) across
Federal lands not within the scope of
their oil and gas right. The Service
would set the fee amount using
generally accepted practices. For
example, the Service could set fees
consistent with current Service
regulations regarding fees for access,
calculate fees using the BLM’s Linear
Rights-of-way Fee Schedule, or use an
appraisal.
Under proposed § 29.141(b), the
Service would retain the right to charge
a fee for access on an existing road
consistent with a posted fee schedule.
This fee would be used to reflect any
increased maintenance costs on these
roads when compared to the normal use
by the general public or refuge staff,
such as purchasing fuel for a road
grader, gravel for a road, or maintaining
refuge equipment used in road
maintenance.
Proposed § 29.141(c) would give the
Service the ability to allow the operator
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to undertake in-kind services to offset
fees to the extent permitted by law.
Proposed § 29.142 would clarify that,
while the Service will not charge an
operator a fee for emergency access to
their operation, the operator would
remain liable for any damages caused to
refuge resources as a result of such
emergency access.
§§ 29.150–29.154
Financial Assurance
The current regulations at 50 CFR
29.32 do not require financial assurance
for well plugging and reclamation. In
the event of a company default, the
Service must find the funds to plug
wells and restore the site (i.e., remove
well pad, roads and surface equipment,
and restore habitat). Proposed § 29.150
would require an operator to file an
acceptable method of financial
assurance as a condition of the
operations permit in order to ensure that
adequate funds will be available to carry
out the plugging and reclamation
requirements of the operations permit if
an operator becomes insolvent or
defaults on his/her obligations. One
example of an acceptable method of
financial assurance is a performance
bond. The assurance is intended to
ensure that funding is available for
restoration of the site, removal of
equipment and contaminated soil, and
revegetation of the area, in the event an
operator defaults on their obligations
under the permit. This financial
assurance is in addition to any financial
assurance required by any other Federal
or State regulatory authority.
Proposed § 29.151(a) would make the
financial assurance amount equal to the
cost of plugging and abandonment and
reclamation, as conducted by a thirdparty contractor. It also provides that, if
the plugging and abandonment and
reclamation costs exceed the operator’s
bond amount, they are obligated to pay
that difference.
Proposed § 29.151(b) provides a
method to reduce the operator’s bond
amount if the operator provides in-kind
reclamation.
Proposed § 29.152 allows the Service
to adjust the amount of financial
assurance due to changed conditions or
circumstances that increase or decrease
the estimated costs of reclamation. For
instance, if an operator elects to conduct
interim reclamation, the bond amount
for full reclamation could be reduced
based on the amount of the site
reclaimed. On the other hand, if the
operator modifies their operations in a
manner that would make the cost of
plugging or reclamation more
expensive, the bond amount could be
increased.
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§ 29.160 Modification to an Operation
The objectives of proposed § 29.160
are to provide the Service or operator a
method to modify an operations permit
to address new or unanticipated
changes in operational or environmental
conditions. Any modification to an
approved permit must meet the same
criteria that apply to an operations
permit as outlined in the application
review process (proposed §§ 29.100
through 29.104). Examples of a
modification could include drilling
additional wells from the same pad,
creating additional surface disturbance
(expanding the footprint of a well pad,
realigning a road), or converting a
natural gas well into a wastewater
disposal well so that the resulting
modification has notable impacts to the
refuge resource.
Minor actions that are not specifically
addressed in the operations permit but
are within the scope of the impacts
analyzed would not be considered
modifications for the purpose of this
section. Examples of such minor actions
would include repositioning of surface
facilities within the permitted area of
operations, minor changes in color
schemes, or non-routine maintenance
actions.
stock or change in the membership of
the Board of Directors is not by itself a
transfer subject to Service approval to
which this provision applies. We
encourage the transferring party, as well
as new operators, to consult with the
refuge manager prior to transfer of
operations to facilitate the transition.
Proposed § 29.170 outlines the steps
the operator must take if they are the
transferring party.
Under proposed § 29.170(a), if an
operator’s operations are not under a
Service-issued permit, the operator must
provide the Service within 30 calendar
days of the transfer the contact
information of the party to whom the
operator transferred their operation, the
effective date of the transfer, and a
description of the rights transferred. The
operator must also provide written
acknowledgement from the new
operator that the contents of the
notification are true and correct.
Under proposed § 29.170(b), if
operations are being conducted under a
Service-issued permit, in addition to the
notification requirements above, the
operator remains responsible for
compliance with their operations permit
until the new operator agrees in writing
to adopt the permit with all its terms
and conditions. In addition, if financial
assurance is a component of the permit,
the Service will retain the financial
assurance until the new operator
replaces it.
Proposed § 29.171 describes the
responsibilities of the new operator.
Proposed § 29.171(a) states that, when
pre-existing operations are transferred to
a new operator, the new operator may
continue operating under the same
conditions as the previous operator, but
within 30 calendar days from the date
of the transfer, would have to provide to
the Service its right-to-operate
documentation and company contact
information.
Proposed § 29.171(b) states that, if
operations being conducted under a
Service-issued permit are transferred to
a new operator, the new operator would
need to agree in writing to conduct
operations in accordance with all terms
and conditions of the previous
operator’s permit and file any financial
assurance required under the permit
with the Service.
Under proposed § 29.171(c), new
operators have the ability to propose
modifications to operations transferred
to them as outlined in § 29.160.
§§ 29.170–29.171 Change of Operator
A change of operator occurs anytime
an entity exercising non-Federal oil and
gas rights transfers those rights to
another party. However, a transfer of
§§ 29.180–29.181 Well Plugging
The proposed procedures are
consistent with the way many States
approach the issue of inactive wells,
and recognize that certain economic or
tkelley on DSK3SPTVN1PROD with PROPOSALS3
Proposed § 29.153 describes the
conditions under which the Service
would release the financial assurance.
The Service will release an operator’s
bond if they have met all applicable
reclamation operating standards, as well
as any additional conditions outlined in
their operations permit.
Proposed § 29.154 describes those
circumstances that would result in
forfeiture. Failure to comply with any
provision of the operations permit could
result in forfeiture of the operator’s
financial assurance to the extent it
would cost the Service to remedy the
noncompliance. Also, under this
provision, if the operator forfeits their
financial assurance, the Service may
prohibit the operator from removing all
structures, equipment, or other material
from the operator’s area of operations;
require the operator to secure the
operations site and take any other
necessary steps to protect refuge lands
or resources, visitor uses, and visitor or
employee health and safety; and/or
suspend review of any pending permit
applications until the Service
determines that all violations have been
resolved.
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logistical reasons exist to justify
maintenance of wells in shut-in status
for extended periods of time. Rather
than a ‘‘produce or plug’’ policy, the
proposed regulations provide assurance
that shut-in wells are maintained in an
environmentally sound and safe
manner.
Proposed § 29.180 would require
operators to plug a well within 60 days
after cessation of drilling operations
(when no further action has been taken);
or within a year of continuous inactivity
after completion of production
operations; or after expiration of the
period approved in the operations
permit to maintain the well in shut-in
status.
Under proposed § 29.181, operators
would be able to seek an extension to
the plugging requirement by applying
for an operations permit or modification
to existing operations permit to
maintain a well in shut-in status for up
to 5 years. The operator must: Describe
why drilling or production operations
have ceased; provide a reasonable future
use of the well; demonstrate mechanical
integrity of the well; and follow
maintenance requirements.
§§ 29.190–29.192
Penalties
Prohibited Acts and
Proposed § 29.190 provides notices to
operators of the prohibited acts that
would constitute a violation of these
regulations. This list is in addition to
general prohibited acts for members of
the public while on NWRS lands
outlined at 50 CFR part 27. Prohibited
acts listed in proposed § 29.190 include
operating in violation of terms or
conditions of an operations permit
under § 29.43; damaging Federal
property; conducting operations without
Service authorization; failure to comply
with suspension or revocation orders;
and failure to comply with local, State,
and Federal statutes or regulations.
Proposed §§ 29.191–29.192 would
give the Service the discretion to take
various enforcement actions if the
operator engages in a prohibited act,
including fines, imprisonment, and/or
suspension or revocation of the right to
operate an operation. In order to protect
refuge resources, the Service may refrain
from processing an applicant’s permit if
the applicant has not taken action
elsewhere to remedy severe and
substantial violations within the NWRS.
These new provisions do not affect
other regulatory provisions that
authorize termination of a permit for
noncompliance under 50 CFR 25.43, or
the general penalty provisions under 50
CFR 28.31.
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§ 29.200
Appeals
This section would provide that the
operator has the right to appeal a
decision through the process outlined in
current regulations at 50 CFR 25.45. For
ROWs, appeals would still be governed
by 50 CFR 29.22; in Alaska, appeals
would still be governed by 43 CFR 36.8.
Under the provisions of 50 CFR 25.45,
the operator has 20 days after
notification of any adverse decision to
respond. The operator shall be notified
within 20 days after receipt of their
response of the final decision. If the
Service intends to proceed with the
proposed action, the operator shall have
30 days from the final decision to file an
appeal to the project leader (e.g., refuge
complex manager or refuge regional
supervisor). The operator shall be
notified in writing within 30 days from
the date of the appeal of that decision.
The operator has 30 days from receipt
of the decision to further appeal in
writing to the Regional Director. The
Regional Director’s decision shall be
final and issued in writing to the
operator within 30 days from the date of
the appeal. The operator shall be
provided an opportunity for oral
presentation within the respective 30day appeal periods. The operator must
also use this administrative appeals
process before challenging the Service’s
decision in court. The time to file
appeals and to complete the process of
appeals may be extended at the
discretion of the Regional Director.
tkelley on DSK3SPTVN1PROD with PROPOSALS3
§ 29.210
Public Information
This section would offer information
on how the public can learn about oil
and gas activities on refuge lands. The
proposed rule provides the ability for an
operator to protect proprietary or
confidential information from
disclosure to the public. Operators need
to clearly mark those documents that
they wish to protect from public
disclosure as ‘‘proprietary or
confidential information’’ such that
these documents are readily identifiable
by the Service decision maker. The
Service has also included proposed
provisions that allow an operator
engaged in hydraulic fracturing
operations or other operations involving
the use of chemicals to withhold
chemical formulations that are deemed
to be a trade secret.
§ 29.220
Information Collection
This section would provide
information on Office of Management
and Budget (OMB) approval of the
collection of information set forth in
these regulations.
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Compliance With Other Laws,
Executive Orders, and Department
Policies
Regulatory Planning and Review
(Executive Orders 12866 and 13563)
Executive Order 12866 provides that
the Office of Information and Regulatory
Affairs (OIRA) in the Office of
Management and Budget will review all
significant rules. OIRA has determined
that this proposed rule is significant,
because it may raise novel legal or
policy issues arising out of legal
mandates, the President’s priorities, or
the principles set forth in the Executive
order.
Executive Order 13563 reaffirms the
principles of Executive Order 12866
while calling for improvements in the
nation’s regulatory system to promote
predictability, to reduce uncertainty,
and to use the best, most innovative,
and least burdensome tools for
achieving regulatory ends. The
executive order directs agencies to
consider regulatory approaches that
reduce burdens and maintain flexibility
and freedom of choice for the public
where these approaches are relevant,
feasible, and consistent with regulatory
objectives. Executive Order 13563
emphasizes further that regulations
must be based on the best available
science and that the rulemaking process
must allow for public participation and
an open exchange of ideas. We have
developed this rule in a manner
consistent with these requirements. As
noted above, we have carefully
considered both the NPS’s proposed
amendments to the 9B regulations and
the recent BLM regulations related to
hydraulic fracturing, to ensure
consistency to the greatest extent
possible. The Service is aware of the
current litigation concerning BLM’s
final hydraulic fracturing rule, State of
Wyoming v. U.S. Department of the
Interior, Case No: 2:15–CV–043–SWS
(D. Wyo.) (consolidated with No. 2:15–
CV–041–SWS), and Southern Ute
Indian Tribe v. U.S. Department of the
Interior, Case No: 15–CV–01303–MSK
(D. Colo.), and will consider public
comment as well as any rulings that
may occur in the litigation in reaching
final decisions on its final rule.
Regulatory Flexibility Act
Under the Regulatory Flexibility Act
(RFA), as amended by the Small
Business Regulatory Enforcement
Fairness Act of 1996 (SBREFA), 5 U.S.C.
601 et seq., whenever an agency is
required to publish a notice of
rulemaking for any proposed or final
rule, it must prepare and make available
for public comment a regulatory
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flexibility analysis that describes the
effects of the rule on small entities (i.e.,
small businesses, small organizations,
and small government jurisdictions).
However, no regulatory flexibility
analysis is required if the head of the
agency certifies the rule will not have a
significant economic impact on a
substantial number of small entities.
The SBREFA amended the RFA to
require Federal agencies to provide a
statement of the factual basis for
certifying that the rule will not have a
significant economic impact on a
substantial number of small entities.
We certify that, if promulgated as
proposed, this rule would not have a
significant economic effect on a
substantial number of small entities
under the RFA (5 U.S.C. 601 et seq.).
This certification is based on the costbenefit and regulatory flexibility
analysis found in the report entitled
Non-Federal Oil and Gas Rulemaking
Economic Analysis, which can be
viewed at www.regulations.gov or at
https://www.fws.gov/refuges/oil-and-gas/
rulemaking.html, by clicking on the link
entitled Non-Federal Oil and Gas
Rulemaking Economic Analysis.
Small Business Regulatory Enforcement
Fairness Act (SBREFA)
This proposed rule is not a major rule
under 5 U.S.C. 804(2). This rule:
(a) Would not have an annual effect
on the economy of $100 million or
more;
(b) Would not cause a major increase
in costs or prices for consumers,
individual industries, Federal, State, or
local government agencies, or
geographic regions; and
(c) Would 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.
These conclusions are based on the
cost-benefit and regulatory flexibility
analysis found in the report entitled
Non-Federal Oil and Gas Rulemaking
Economic Analysis, which can be
viewed at www.regulations.gov and also
at https://www.fws.gov/refuges/oil-andgas/rulemaking.html, by clicking on the
link entitled Non-Federal Oil and Gas
Rulemaking Economic Analysis.
Unfunded Mandates Reform Act
(UMRA)
This proposed rule would not impose
an unfunded mandate on State, local, or
tribal governments or the private sector
of more than $100 million per year. The
rule would not have a significant or
unique effect on State, local, or tribal
governments or the private sector. It
addresses use of refuge lands, and
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would impose no requirements on other
agencies or governments. A statement
containing the information required by
the UMRA (2 U.S.C. 1531 et seq.) is not
required.
Takings (Executive Order 12630)
This proposed rule is not intended to
result in the taking of private property
or otherwise have takings implications
under Executive Order 12630. The
provisions of this proposed rule would
afford access to operators exercising
non-Federal mineral rights under
reasonable regulation. No other private
property is affected. A takings
implication assessment is not required.
Federalism (Executive Order 13132)
Under the criteria in section 1 of
Executive Order 13132, the proposed
rule does not have sufficient Federalism
implications to warrant the preparation
of a federalism summary impact
statement. It addresses use of refuge
lands, and would impose no
requirements on other agencies or
governments. A federalism summary
impact statement is not required.
Civil Justice Reform (Executive Order
12988)
This proposed rule complies with the
requirements of Executive Order 12988.
Specifically, this rule:
(a) Meets the criteria of section 3(a)
requiring that all regulations be
reviewed to eliminate errors and
ambiguity and be written to minimize
litigation; and
(b) Meets the criteria of section 3(b)(2)
requiring that all regulations be written
in clear language and contain clear legal
standards.
tkelley on DSK3SPTVN1PROD with PROPOSALS3
Consultation With Indian Tribes
(Executive Order 13175 and Department
Policy)
The Department of the Interior strives
to strengthen its government-togovernment relationship with Indian
tribes through a commitment to
consultation with Indian tribes and
recognition of their right to selfgovernance and tribal sovereignty. We
have evaluated this proposed rule under
the Department’s consultation policy
and under the criteria in Executive
Order 13175 and have determined that
it has no substantial direct effects on
federally recognized Indian tribes, but
we opened consultation under the
Department’s tribal consultation policy
with all interested tribes.
Paperwork Reduction Act of 1995 (PRA)
This proposed rule contains a
collection of information that we have
submitted to OMB for approval under
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the PRA (44 U.S.C. 3501 et seq.). We
may not conduct or sponsor and you are
not required to respond to a collection
of information unless it displays a
currently valid OMB control number.
We are proposing to collect the
following information associated with
non-Federal oil and gas operations on
National Wildlife Refuge System lands.
Operators do not need to resubmit
information that is already on file with
the Service, provided the information is
still current and accurate. Documents
and materials submitted to other Federal
and State agencies may be submitted, if
they meet the specific requirements of
the Service.
Pre-existing Operations (§ 29.61).
Within 90 days after the effective date
of these regulations, or after a boundary
change or establishment of a new refuge
unit, pre-existing operators without a
Service-issued permit must submit:
• Documentation of the right to
operate within the refuge.
• Contact information (names, phone
numbers, and addresses) of the primary
company representative; the
representative responsible for field
supervision; and the representative
responsible for emergency response.
• Scaled map clearly delineating the
existing area of operations.
• Copies of all plans and permits
required by local, State, and Federal
agencies.
Temporary Access Permit Application
(§ 29.71). We propose to use Parts 1 and
2 of FWS Form 3–2469 (Oil and Gas
Operations Special Use Permit
Application) as the application for a
Temporary Access Permit. The operator
must provide the information requested
in Parts 1 and 2 of the form, including,
but not limited to:
• Contact information (name, legal
address, and telephone number) for the
person(s) responsible for the overall
management of the proposed operations.
• Documentation demonstrating the
right to operate within the refuge.
• Name, legal address, telephone
number, and qualifications of all
specialists responsible for conducting
the reconnaissance surveys. (Only
required if the assistants/
subcontractors/subpermittees will be
operating on the refuge without the
permittee being present.)
• Brief description of the intended
operation so that we can determine
reconnaissance survey needs.
• Description of the survey methods
that will be used to identify the natural
and cultural resources.
• Location map (to-scale and
determined by us to be acceptable)
delineating the proposed
reconnaissance survey area in relation
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to the refuge boundary and the proposed
area of operations.
• Description of proposed means of
access and routes for conducting the
reconnaissance surveys.
Accessing Oil And Gas Rights From a
Non-Federal Surface Location (§ 29.80).
We encourage operators to provide us,
at least 60 calendar days prior to
beginning operations, the names,
telephone numbers, and addresses of
the primary company representative, the
representative responsible for field
supervision, and the representative
responsible for emergency response.
Pre-Application Meeting for
Operations Permit (§ 29.91). Before
submitting an application for an
Operations Permit, operators should
participate in a pre-application meeting
with the Service and provide:
• Documentation demonstrating the
right to operate within the refuge.
• An overview of the proposed
operation and timing.
Operations Permit Application
(§§ 29.94, 29.95, 29.96, and 29.97). We
propose to use FWS Form 3–2469 (Oil
and Gas Operations Special Use Permit
Application) as the application for an
Operations Permit. All applicants must
provide the information requested in
Parts 1, 3, 4, 8, 9, and 10, FWS Form 3–
2469, including, but not limited to:
Part 1 (§ 29.94(a)–(b))
• Contact information (name, legal
address, and telephone number) for the
person(s) responsible for the overall
management of the proposed operations.
• Documentation demonstrating the
right to operate within the refuge.
Part 3 (§ 29.94(c)–(f))
• Description of the natural features
of the proposed area of operations, such
as: Streams, lakes, ponds, wetlands
(including estimated depths to the top
and bottom of zones of usable water);
topographic relief; and areas that the
Service has indicated are sensitive.
• Locations of existing roads, trails,
railroad tracks, pipeline rights-of-way,
pads, and other disturbed areas.
• Locations of existing structures that
the operations could affect, including
buildings; pipelines; oil and gas wells
including both producing and plugged
and abandoned wells; injection wells;
freshwater wells; underground and
overhead electrical lines; and other
utility lines.
• Descriptions of the natural resource
and cultural resource survey reports for
the proposed area of operations.
Part 4 (§ 29.94(g)–(n))
• Location maps (to-scale and
determined by us to be acceptable) that
clearly identify:
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(1) Proposed area of operations,
existing conditions, and proposed new
surface uses, including the boundaries
of each of the oil and gas tracts in
relation to the proposed operations and
the relevant refuge boundary.
(2) Proposed access routes of new
surface disturbances as determined by a
location survey.
(3) Location of all support facilities,
including those for transportation (e.g.,
vehicle parking areas, helicopter pads,
etc.), sanitation, occupation, staging
areas, fuel storage areas, refueling areas,
loading docks, water supplies, and
disposal facilities).
• Method and diagrams (including
cross sections) of any proposed pad
construction, road construction, cutand-fill areas, and surface maintenance,
including erosion control.
• Number and types of equipment
and vehicles, including an estimate of
vehicular round trips associated with
the operation.
• Estimated timetable for the
proposed operations, including any
operational timing constraints.
• Type and extent of security
measures proposed at the area of
operation.
• Power sources and their
transmission systems for the proposed
operations.
• Types and quantities of all solid
and liquid waste generated and the
proposed methods of storage, handling,
and disposal.
• Source, quantity, access route, and
transportation/conveyance method for
all water to be used in operations,
including hydraulic fracturing, and
estimates of any anticipated waste water
volumes generated, including flowback
fluids from hydraulic fracturing
operations, and the proposed methods
of storage, handling, and recycling or
disposal.
tkelley on DSK3SPTVN1PROD with PROPOSALS3
Part 8 (§ 29.94(o))
• Description of proposed steps to
mitigate anticipated adverse
environmental impacts on refuge
resources and uses, including, but not
limited to: refuge’s land features, land
uses, fish and wildlife, vegetation, soils,
surface and subsurface water resources,
air quality, noise, lightscapes,
viewsheds, cultural resources, and
economic environment.
• Description of any anticipated
impacts that cannot be mitigated.
• Description of all alternatives
considered that meet the criteria of
technologically feasible, least-damaging
methods of operations, as well as the
costs and environmental effects of such
alternatives.
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information requested in Part 5 of FWS
• Contact information (name, address, Form 3–2469, including, but not limited
to:
and telephone number) for persons that
• Map showing the positions of each
we can contact in the event of a spill,
survey line including all source and
fire, or accident, including the order in
receiver locations as determined by a
which the persons should be contacted.
locational survey, and shot point offset
• Notification procedures and steps
distances from wells, buildings, other
taken to minimize damage in the event
infrastructure, cultural resources, and
of spill, fire, or accident.
environmentally sensitive areas.
• Identification of contaminating or
• Number of crews and numbers of
toxic substances used within the area of
workers in each crew.
operations or expected to be
• Description of the acquisition
encountered during operations.
methods (including the procedures and
• Trajectory analysis for potential
specific equipment that will be used),
spills that are not contained on location. and energy sources (e.g., explosives,
• Identification of abnormal pressure, vibroseis trucks, etc.).
temperature, toxic gases or substances,
• Description of methods of access
or other hazardous conditions at the
along each survey line for personnel,
area of operations or expected to be
materials, and equipment.
encountered during operations.
• List of all explosives, blasting
• Measures (e.g., procedures, facility
equipment, chemicals, and fuels that
design, equipment, etc.) to minimize
will be used in the proposed operations,
risks to human health and safety, and
including a description of proposed
the environment.
disposal methods, transportation
• Steps to prevent accumulations of
methods, safety measures, and storage
oil or other materials deemed to be fire
facilities.
hazards from occurring in the vicinity of
Proposed Drilling Operations
well locations and lease tanks.
(§ 29.96). Applicants proposing drilling
• Equipment and methods for
operations must also provide the
containment and cleanup of
information requested in Part 6 of FWS
contaminating substances, including a
Form 3–2469, including, but not limited
description of the equipment available
to:
at the area of operations and equipment
• Description of well pad
available from local contractors.
construction, including dimensions and
• Storm water drainage plan and
cross sections of: Cut-and-fill areas and
actions intended to mitigate storm water excavations for ditches, sumps, and
runoff.
spill control equipment or structures,
• Material safety data sheets (where
including lined areas.
required by law) for each material that
• Description of the drill rig and
will be used or encountered during
equipment layout, including rig
operations, including expected
components, fuel tanks, testing
quantities maintained at the area of
equipment, support facilities, storage
operations.
areas, and all other well-site equipment
• Description of the emergency
and facilities.
actions that will be taken in the event
• Description of type and
of injury or death to fish and wildlife or characteristics of the proposed drilling
vegetation.
mud systems.
• Description of the emergency
• Description of the equipment,
actions that will be taken in the event
materials, and methods of surface
of accidents causing human injury.
operations associated with drilling, well
• Contingency plans for conditions
casing and cementing, well control, well
and emergencies other than spills, such
evaluation and testing, well completion,
as if the area of operations is located in
hydraulic fracturing or other well
areas prone to hurricanes, flooding,
stimulation, and well plugging.
Production Operations (§ 29.97).
tornados, fires, or earthquakes.
Applicants proposing production
Part 10 (§ 29.94(q)–(r))
operations must also provide the
• Description of the specific
information requested in Part 7 of FWS
equipment, materials, methods, and
Form 3–2469, including, but not limited
schedule that will be used to meet the
to:
operating standards for reclamation at
• Dimensions and a to-scale layout of:
§ 29.117.
The well pad, clearly identifying well
• Itemized list of the estimated costs
locations and noting partial reclamation
that a third party would charge to
areas; gathering, separation, metering,
complete reclamation.
and storage equipment; electrical lines;
Geophysical Exploration (§ 29.95).
fences; spill control equipment or
Applicants proposing geophysical
structures including lined areas,
exploration must also provide the
artificial lift equipment, tank batteries,
Part 9 (§ 29.94(p))
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treating and separating vessels,
secondary or enhanced recovery
facilities, water disposal facilities, gas
compression and/or injection facilities;
metering points; sales point (if on lease);
tanker pickup points; gas compressor,
including size and type (if applicable);
and any other well site equipment.
• General description of anticipated
stimulations, servicing, and workovers.
• Description of the procedures and
equipment used to maintain well
control.
• Description of method and means
used to transport produced oil and gas,
including vehicular transport; flowline
and gathering line construction and
operation, pipe size, and operating
pressure; cathodic protection methods;
surface equipment use; surface
equipment location; maintenance
procedures; maintenance schedules;
pressure detection methods; and
shutdown procedures.
• Road and well pad maintenance
plan, including equipment and
materials to maintain the road surface
and control erosion.
• Vegetation management plan on
well sites, roads, pipeline corridors, and
other disturbed surface areas, including
control of noxious and invasive species.
• Stormwater management plan on
the well site.
• Produced water storage and
disposal plan.
• Description of the equipment,
materials, and procedures proposed for
well plugging.
Financial Assurance (§§ 29.103(b)
and 29.150). Before operations begin,
operators must submit:
• Financial assurance in the amount
specified by the Service and in
accordance with the requirements of
§§ 29.150 through 29.154.
• Proof of liability insurance with
limits sufficient to cover injuries to
persons or property caused by the
operations.
Identification of Wells and Related
Facilities (§ 29.119(b)(3)). Operators
must identify wells and related facilities
with a sign that must remain in place
until the well is plugged and abandoned
and related facilities are closed. Each
sign must show the name of the well,
name of the operator, and the
emergency contact phone number.
Reporting (§ 29.121(b)–(f))
• Third-party monitors will report
directly to the Service regarding
compliance with the operations permit
and efforts to protect federally owned or
administered lands, waters, or the
resources of refuges, visitor uses and
experiences, and visitor or employee
health and safety.
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• Operators must notify the Service
within 24 hours of any injuries to or
mortality of fish, wildlife, or endangered
or threatened plants.
• Operators must notify the Service of
any accidents involving serious
personal injury or death and of any fires
or spills on the site immediately after
the accident occurs. A full written
report on the accident must be
submitted to the Service within 90 days
after the accident occurs.
• Operators must submit reports or
other information necessary to verify
compliance with the permit or with any
provision of subpart D of the
regulations.
• If operations include hydraulic
fracturing, the operator must provide
the Service with a report including the
true vertical depth of the well, total
water volume used, and a description of
the base fluid and each additive in the
hydraulic fracturing fluid, including the
trade name, supplier, purpose,
ingredients, Chemical Abstract Service
Number (CAS), maximum ingredient
concentration in additive (percent by
mass), and maximum ingredient
concentration in hydraulic fracturing
fluid (percent by mass). The report must
be submitted through FracFocus or
another Service-designated database.
Permit Modifications (§ 29.160(a)). To
request a modification to operations
under an approved permit, permittees
must provide, in writing, to the Service,
the operator’s assigned permit number,
a description of the proposed
modification, and an explanation of
why the modification is needed.
Change of Operator (§§ 29.170, 29.171)
Transfer of Right To Operate (§ 29.170)
Operators conducting operations
under §§ 29.43 or 29.44 must notify the
Service in writing within 30 calendar
days from the date the new operator
acquires the rights to conduct
operations. Written notification must
include:
• Names and addresses of the person
or entity conveying the right and of the
person or entity acquiring the right.
• Effective date of transfer.
• Description of the rights, assets, and
liabilities being transferred and which
ones, if any, are being reserved by the
previous operator.
New operators must provide:
• Written acknowledgement that the
contents of the notification are true and
correct.
• Financial assurance.
Change of Operator (§ 29.171)
§ 29.171(a). When operations
conducted under § 29.44 are transferred,
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the transferee must provide to the
Service within 30 calendar days from
the date of the transfer:
• Documentation demonstrating that
the operator holds the right to operate
within the refuge.
• Names, phone numbers, and
addresses of the primary company
representative, the representative
responsible for field supervision, and
the representative responsible for
emergency response.
§ 29.171(b). If operations conducted
under § 29.43 or an operations permit
are transferred, the transferee must
provide the following within 30 days of
commencing operations:
• Information required under
§ 29.171(a).
• Written agreement to conduct
operations in accordance with all terms
and conditions of the previous
operator’s permit.
• Financial assurance that is
acceptable to the Service and made
payable to the Service.
Extension to Well Plugging
Requirement (§ 29.181(a)). To maintain
a well in a shut-in status for up to 5
years, operators may apply for either an
operations permit or a modification to
operations under an approved permit.
The application or modification must
include the information requested in
FWS Form 3–2469, including, but not
limited to:
• Explanation of why the well is shutin or temporarily abandoned and future
plans for utilization.
• Demonstration of the mechanical
integrity of the well.
• Description of the manner in which
the operator’s well, equipment, and area
of operations will be maintained in
accordance with the standards in
subpart D of the regulations.
Public Information
§ 29.210(d). An operator, or the
operator and the owner of the
information required under this subpart
may support a claim to be exempt from
public disclosure of information
otherwise required. If required
information is withheld, the regulation
requires submission of an affidavit that:
• Identifies the owner of the withheld
information and provides the name,
address, and contact information for an
authorized representative of the owner
of the information;
• Identifies the Federal statute or
regulation that would prohibit the
Service from publicly disclosing the
information if it were in the Service’s
possession;
• Affirms that the operator has been
provided the withheld information from
the owner of the information and is
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maintaining records of the withheld
information, or that the operator has
access and will maintain access to the
information held by the owner of the
information;
• Affirms that the information is not
publicly available;
• Affirms that the information is not
required to be publicly disclosed under
any applicable local, State, or Federal
law;
• Affirms that the owner of the
information is in actual competition and
identifies competitors or others that
could use the withheld information to
cause the owner substantial competitive
harm;
• Affirms that the release of the
information would likely cause
substantial competitive harm to the
owner and provides the factual basis for
that affirmation; and
• Affirms that the information is not
readily apparent through reverse
engineering with publicly available
information.
even if the information is in the custody
of its owner.
§ 29.210(i). If any of the chemical
identity information required in this
subpart is withheld, the operator must
provide the generic chemical name in
the submission required. The generic
chemical name must be only as
nonspecific as is necessary to protect
the confidential chemical identity, and
should be the same as or no less
descriptive than the generic chemical
name provided to the Environmental
Protection Agency.
OMB Control No: 1018–XXXX.
Title: Non-Federal Oil and Gas
Operations on National Wildlife Refuge
System Lands, 50 CFR 29, subpart D.
Service Form Number(s): 3–2469.
Description of Respondents:
Businesses that conduct oil and gas
exploration on national wildlife refuges.
Respondent’s Obligation: Required to
obtain or retain a benefit.
Frequency of Collection: On occasion.
Total Annual Nonhour Cost Burden:
None.
§ 29.210(e). If the operator relies upon
information from third parties, such as
the owner of the withheld information,
to make the previous affirmations, the
operator must provide a written
affidavit from the third party that sets
forth the relied-upon information.
§ 29.210(f). The Service may require
any operator to submit to the Service
any withheld information, and any
information relevant to a claim that
withheld information is exempt from
public disclosure.
§ 29.210(h). The operator is required
to maintain records of any withheld
information until the later of the
Service’s release of the operator’s
financial assurance or 7 years after
completion of operations on refuge
lands. Any subsequent operator will be
responsible for maintaining access to
records of any withheld information
during its operation of the well. The
operator will be deemed to be
maintaining the records if it can
promptly provide the complete and
accurate information to the Service,
Estimated
number of
annual
responses
Activity/requirement
tkelley on DSK3SPTVN1PROD with PROPOSALS3
Preexisting Operations—provide documentation (§ 29.61) .........................................................
Temporary Access Permit Application (§ 29.71) .........................................................................
Accessing Oil and Gas Rights from Non-Federal Location—provide contact information
(§ 29.80) ...................................................................................................................................
Pre-application Meeting for Operations Permit—provide documentation (§ 29.91) ....................
Operations Permit Application (§§ 29.94–29.97) .........................................................................
Financial Assurance (§ 29.103, 29.150) ......................................................................................
Identification of Wells—signage requirements (§ 29.119(b)) .......................................................
Reporting (§ 29.121(b)).
Third-Party Monitor Report ...................................................................................................
Notification—Injuries/Mortality to Fish and Wildlife and .......................................................
Threatened/Endangered Plants ............................................................................................
Notification—Accidents involving Serious Injuries/Death and Fires/Spills ...........................
Written Report—Accidents Involving Serious Injuries/Deaths and Fires/Spills ...................
Report—Verify Compliance with Permits .............................................................................
Notification—Chemical Disclosure of Hydraulic Fracturing Fluids uploaded to FracFocus
(§ 29.121(f)) .......................................................................................................................
Permit Modifications (§ 29.160(a)) ...............................................................................................
Change of Operator (§§ 29.170, 29.171) ....................................................................................
Extension to Well Plugging (§ 29.181(a)).
Application for Permit ...........................................................................................................
Modification ...........................................................................................................................
Public Information (§ 29.210) .......................................................................................................
Affidavit in Support of Claim of Confidentiality (§§ 29.210(c) and (d)) ................................
Confidential Information (§ 29.210(e) and (f)) ......................................................................
Maintenance of Confidential Information (§ 29.210(h)) ........................................................
Generic Chemical Name Disclosure (§ 29.210(i)) ................................................................
Total ...............................................................................................................................
As part of our continuing efforts to
reduce paperwork and respondent
burdens, we invite the public and other
Federal agencies to comment on any
aspect of the reporting burden
associated with this proposed
information collection. We specifically
invite comments concerning:
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Estimated total
annual burden
hours
40
35
50
17
2,000
595
5
45
45
45
45
1
2
140
1
2
5
90
6,300
45
90
300
17
5,100
20
20
20
240
1
1
16
4
20
20
320
960
5
10
40
1
16
8
5
160
320
10
5
........................
1
1
1
1
934
140
16
........................
1
1
1
1
........................
1,400
80
........................
1
1
1
1
17,514
• Whether or not the collection of
information is necessary for the proper
performance of our management
functions involving management of nonFederal oil and gas rights, including
whether or not the information will
have practical utility;
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Completion
time per
response
(hours)
• The accuracy of our estimate of the
burden for the collection of information;
• Ways to enhance the quality, utility,
and clarity of the information to be
collected; and
• Ways to minimize the burden of the
collection of information on
respondents.
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If you wish to comment on the
information collection requirements of
this proposed rule, send your comments
directly to OMB (see detailed
instructions under the heading
Comments on the Information
Collection Aspects of the Proposed Rule
in the ADDRESSES section). Please
identify your comments with 1018–
AX36. Please provide a copy of your
comments to the Service Information
Collection Clearance Officer (see
detailed instructions under the heading
Comments on the Information
Collection Aspects of the Proposed Rule
in the ADDRESSES section).
National Environmental Policy Act
(NEPA)
This rule constitutes a major Federal
action with the potential to significantly
affect the quality of the human
environment. We have prepared the
draft environmental impact statement
(DEIS) under the requirements of the
NEPA of 1969 (42 U.S.C. 4321 et seq.).
The DEIS is available online at
www.regulations.gov and also at https://
www.fws.gov/refuges/oil-and-gas/
rulemaking.html, by clicking on the link
entitled ‘‘Non-Federal Oil and Gas
DEIS.’’
In addition, EPA is publishing a
notice announcing the draft EIS, as
required under section 309 of the Clean
Air Act (42 U.S.C. 7401 et seq.) The
publication date of EPA’s notice of
availability is the official start of the
public comment period for the draft EIS.
Under the Clean Air Act, EPA also must
subsequently announce the final EIS via
the Federal Register. The EPA is
charged under section 309 of the Clean
Air Act to review all Federal agencies’
environmental impact statements (EISs)
and to comment on the adequacy and
the acceptability of the environmental
impacts of proposed actions in the EISs.
EPA also serves as the repository (EIS
database) for EISs prepared by Federal
agencies and provides notice of their
availability in the Federal Register. The
Environmental Impact Statement (EIS)
Database provides information about
EISs prepared by Federal agencies, as
well as EPA’s comments concerning the
EISs. All EISs are filed with EPA, which
publishes a notice of availability on
Fridays in the Federal Register.
The notice of availability is the start
of the 60-day public comment period for
draft EISs, and the start of the 30-day
‘‘wait period’’ for final EISs, during
which agencies are generally required to
wait 30 days before making a decision
on a proposed action. For more
information, see https://www.epa.gov/
compliance/nepa/eisdata.html. You
may search for EPA comments on EISs,
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along with EISs themselves, at https://
cdxnodengn.epa.gov/cdx-enepa-public/
action/eis/search.
Effects on the Energy Supply (Executive
Order 13211)
This rule is not a significant energy
action under the definition in Executive
Order 13211. A statement of Energy
Effects is not required.
Clarity of This Rule
We are required by Executive Orders
12866 (section 1(b)(12)), 12988 (section
3(b)(1)(B)), and 13563 (section 1(a)), and
by the Presidential Memorandum of
June 1, 1998, to write all rules in plain
language. This means that each rule we
publish must:
(a) Be logically organized;
(b) Use the active voice to address
readers directly;
(c) Use common, everyday words and
clear language rather than jargon;
(d) Be divided into short sections and
sentences; and
(e) Use lists and tables wherever
possible.
If you believe we have not met these
requirements, send us comments by one
of the methods listed in the ADDRESSES
section. To better help us revise the
rule, your comments should be as
specific as possible. For example, you
should tell us the numbers of the
sections or paragraphs that you find
unclear, which sections or sentences are
too long, the sections where you believe
lists or tables would be useful, etc.
Drafting Information
This proposed rule reflects the
collective efforts of Service staff in the
NWRS, Division of Natural Resource
and Conservation Planning, Branch of
Wildlife Resources, refuges, and field
offices, with assistance from the
Department of the Interior, Office of the
Solicitor.
Public Participation
It is the policy of the Department of
the Interior, whenever feasible, to afford
the public an opportunity to participate
in the rulemaking process. Accordingly,
interested persons may submit written
comments regarding this proposed rule
by one of the methods listed in the
ADDRESSES section. All comments must
be received by 11:59 p.m. Eastern Time
on the last day of the comment period
(see DATES).
We are particularly interested in
comments concerning:
1. Substantive differences between the
Service’s proposed regulations of oil
and gas activity and those of other
Federal agencies, including differences
in the associated costs and benefits.
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2. The costs and benefits of applying
this rule to inholdings and operators
accessing oil and gas rights from a
surface location outside the refuge
boundary.
3. Whether the performance and
operating standards are clear and certain
in their purpose, including §§ 29.40(c),
29.103(a), 29.110(b), and 29.119.
Public Availability of Comments
Before including your address, phone
number, email address, or other
personal identifying information in your
comment, you should be aware that
your entire comment—including your
personal identifying information—may
be made publicly available at any time.
While you can ask us in your comment
to withhold your personal identifying
information from public review, we
cannot guarantee that we will be able to
do so.
List of Subjects
50 CFR Part 28
Law enforcement, Penalties, Wildlife
refuges.
50 CFR Part 29
Oil and gas exploration, Public
lands—mineral resources, Public
lands—rights-of-way, Reporting and
recordkeeping requirements, Wildlife
refuges.
Proposed Regulation Promulgation
In consideration of the foregoing, the
Service proposes to amend 50 CFR parts
28 and 29 as follows:
PART 28—ENFORCEMENT, PENALTY,
AND PROCEDURAL REQUIREMENTS
FOR VIOLATIONS OF SUBCHAPTER C
1. The authority citation for part 28
continues to read as follows:
■
Authority: Sec. 2, 33 Stat. 614, as
amended (16 U.S.C. 685); sec. 5, 43 Stat. 651
(16 U.S.C. 725); sec. 5, 45 Stat. 449 (16 U.S.C.
690d); sec. 10, 45 Stat. 1224 (16 U.S.C. 715i);
sec. 4, 48 Stat. 402, as amended (16 U.S.C.
664); sec. 2, 48 Stat. 1270 (43 U.S.C. 315a);
sec. 4, 76 Stat. 654 (16 U.S.C. 460k); sec. 4,
80 Stat. 927 (16 U.S.C. 668dd) (5 U.S.C. 301).
2. Revise the heading of part 28 to
read as set forth above.
■ 3. Revise § 28.11 to read as follows:
■
§ 28.11
Purpose of regulations.
The regulations in this part govern
enforcement, penalty, and procedural
requirements for violations of
subchapter C.
PART 29—LAND USE MANAGEMENT
4. The authority citation for part 29 is
revised to read as follows:
■
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Authority: Sec. 2, 33 Stat. 614, as
amended (16 U.S.C. 685); sec. 5, 43 Stat. 651
(16 U.S.C. 725); sec. 5, 45 Stat. 449 (16 U.S.C.
690d); sec. 10, 45 Stat. 1224 (16 U.S.C. 715i);
sec. 4, 48 Stat. 402, as amended (16 U.S.C.
664); sec. 2, 48 Stat. 1270 (43 U.S.C. 315a);
sec. 4, 76 Stat. 654 (16 U.S.C. 460k); sec. 4,
80 Stat. 927 (16 U.S.C. 668dd) (5 U.S.C. 301);
Pub. L. 106–113, 113 Stat. 1501A–139–140;
sec. 1, 96 Stat. 1051 (31 U.S.C. 9701); sec. 1,
96 Stat. 971 (31 U.S.C. 3711); sec. 1110, 94
Stat. 2457 (16 U.S.C 3161); sec. 28, 41 Stat.
449 (30 U.S.C. 185; sec. 1, 76 Stat. 1129 (40
U.S.C. 319).
■
5. Revise § 29.32 to read as follows:
tkelley on DSK3SPTVN1PROD with PROPOSALS3
§ 29.32
Non-Federal mineral rights.
(a) Non-Federal mineral rights owners
within the National Wildlife Refuge
System, not including coordination
areas, must, to the greatest extent
practicable, conduct all exploration,
development, and production
operations in such a manner as to
prevent damage, erosion, pollution, or
contamination to the lands, waters,
facilities, and vegetation of the area. So
far as is practicable, such operations
must also be conducted without
interference to the operation of the
refuge or disturbance to the wildlife
thereon.
(1) Physical occupancy of the area
must be kept to the minimum space
necessary to conduct efficient mineral
operations.
(2) Persons conducting mineral
operations on refuge areas must comply
with all applicable Federal and State
laws and regulations for the protection
of wildlife and the administration of the
area.
(3) All waste and contaminating
substances must be kept in the smallest
practicable area, confined so as to
prevent escape as a result of rains and
high water or otherwise, and removed
from the area as quickly as practicable
in such a manner as to prevent
contamination, pollution, damage, or
injury to the lands, waters, facilities, or
vegetation of the refuge or to wildlife.
(4) Structures and equipment must be
removed from the area when the need
for them has ended, and, upon the
cessation of operations, the area must be
restored as nearly as possible to its
condition prior to the commencement of
operations.
(b) Nothing in this section will be
applied so as to contravene or nullify
rights vested in holders of mineral
interests on refuge lands.
■ 6. Add subpart D to read as set forth
below:
Subpart D—Non-Federal Oil and Gas
Operations
Purpose and Scope
Sec.
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29.40 What are the purpose and scope of
the regulations in this subpart?
29.41 When does this subpart apply to me?
29.42 What authorization do I need to
conduct operations?
29.43 If I am already operating under
Service authorization, what do I need to
do?
29.44 If I am operating without prior
Service authorization, what do I need to
do?
Definitions
29.50 What do the terms used in this
subpart mean?
Pre-existing Operations
29.60 Do I need an operations permit for my
pre-existing operation?
29.61 What information must I provide to
the Service?
29.62 What if I intend to conduct new
operations or modify my pre-existing
operations?
29.63 What reclamation requirements apply
to my pre-existing operations?
29.64 What other provisions apply to my
operations?
Temporary Access Permits
29.70 When do I need a temporary access
permit?
29.71 How do I apply for a temporary
access permit?
29.72 When will the Service grant a
temporary access permit?
29.73 How much time will I have to
conduct my reconnaissance surveys?
Accessing Oil and Gas Rights From a NonFederal Surface Location (Including
Inholdings)
29.80 Do I need a permit for accessing oil
and gas rights from a non-Federal
location?
Operations Permit: Application
29.90 Who must apply for an operations
permit?
29.91 What should I do before filing an
application?
29.92 May I use previously submitted
information?
29.93 Do I need to submit information for
all possible future operations?
29.94 What information must be included
in all applications?
29.95 What additional information must be
included if I am proposing geophysical
exploration?
29.96 What additional information must be
included if I am proposing drilling
operations?
29.97 What additional information must be
included if I am proposing production
operations?
Operations Permit: Application Review
29.100 How will the Service process my
application?
29.101 How will the Service conduct an
initial review?
29.102 How will the Service conduct a
formal review?
29.103 What standards must be met to
approve my application?
29.104 What actions may the Service take
on my operations permit application?
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77219
Operating Standards
29.110 What are the purposes of the
Service’s operating standards?
29.111 What general facility design and
management standards must I meet?
29.112 What fish and wildlife protection
standards must I meet?
29.113 What hydrologic standards must I
meet?
29.114 What safety standards must I meet?
29.115 What lighting and visual standards
must I meet?
29.116 What noise reduction standards
must I meet?
29.117 What reclamation and protection
standards must I meet?
29.118 What additional operating standards
apply to geophysical operations?
29.119 What additional operating standards
apply to drilling and production
operations?
General Terms and Conditions
29.120 What terms and conditions apply to
all operators?
29.121 What monitoring and reporting is
required for all operators?
29.122 For how long is my operations
permit valid?
Access Fees
29.140 May I cross Federal property to
reach the boundary of my oil and gas
right?
29.141 Will the Service charge me a fee for
access?
29.142 Will I be charged a fee for
emergency access to my operations?
Financial Assurance
29.150 When do I have to provide financial
assurance to the Service?
29.151 How does the Service establish the
amount of financial assurance?
29.152 Will the Service adjust the amount
required for my financial assurance?
29.153 When will the Service release my
financial assurance?
29.154 Under what circumstances will I
forfeit my financial assurance?
Modification to an Operation
29.160 Can I modify operations under an
approved permit?
Change of Operator
29.170 What are my responsibilities if I
transfer my right to operate?
29.171 What must I do if operations are
transferred to me?
Well Plugging
29.180 When must I plug my well?
29.181 Can I get an extension to the well
plugging requirement?
Prohibited Acts and Penalties
29.190 What acts are prohibited under this
subpart?
29.191 What enforcement actions can the
Service take?
29.192 How do violations affect my ability
to obtain a permit?
Appeals
29.200 Can I, as operator, appeal Service
decisions?
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Public Information
29.210 How can the public learn about oil
and gas activities on refuge lands?
Information Collection
29.220 Has the Office of Management and
Budget approved the collection of
information?
Subpart D—Non-Federal Oil and Gas
Operations
Purpose and Scope
tkelley on DSK3SPTVN1PROD with PROPOSALS3
§ 29.40 What are the purpose and scope of
the regulations in this subpart?
(a) This subpart ensures that operators
exercising non-Federal oil and gas rights
within the National Wildlife Refuge
System (NWRS), excluding coordination
areas, use technologically feasible, leastdamaging methods to:
(1) Protect federally owned or
administered lands, waters, or resources
of refuges;
(2) Protect refuge wildlife-dependent
recreational uses or experiences and
visitor or employee health and safety;
and
(3) Conserve refuges for the benefit of
present and future generations of
Americans.
(b) This subpart applies to all
operators conducting non-Federal oil
and gas operations on Serviceadministered surface estate held in fee
or less-than fee (excluding coordination
areas) or waters within the boundaries
of the refuge to the extent necessary to
protect those property interests. These
regulations apply to operations in
waters subject to the jurisdiction of the
United States located within the
boundaries of the Refuge System,
including navigable waters and areas
within their ordinary reach (up to the
mean high-water line in places subject
to the ebb and flow of the tide and up
to the ordinary high-water mark in other
places) and without regard to the
ownership of submerged lands,
tidelands, or lowlands. For areas where
the United States does not hold a
property interest but that lie within the
boundaries of a refuge (i.e., inholdings),
these regulations do not apply if refuge
lands are not accessed.
(c) This subpart is not intended to
result in a taking of any property
interest. The purpose of this subpart is
to reasonably regulate operations to
protect federally owned or administered
lands, waters, or resources of refuges,
visitor uses and experiences, and visitor
or employee health and safety.
§ 29.41
me?
When does this subpart apply to
This subpart applies to you if you are
an operator who conducts or proposes
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to conduct non-Federal oil or gas
operations on the surface of land or
waters within the boundaries of a
refuge.
§ 29.42 What authorization do I need to
conduct operations?
(a) You must demonstrate that you
have the right to operate in order to
conduct activities within a refuge.
(b) Except as provided in §§ 29.43 or
29.44, before starting operations, you
must obtain a temporary access permit
under §§ 29.70 through 29.73 for
reconnaissance surveys and/or an
operations permit under §§ 29.90
through 29.97.
(c) In refuge units in Alaska,
regulations at 43 CFR part 36 govern the
permitting process for authorizing the
use of refuge land in order to provide
access to an operator’s oil and gas right.
§ 29.43 If I am already operating under
Service authorization, what do I need to do?
If you already have a Serviceapproved special use permit or ROW
permit, you may continue to operate
according to the terms and conditions of
that approval, subject to the provisions
of this subpart. If you propose to
conduct new operations or modify your
existing operations, you must either
amend your current authorization or
obtain an operations permit in
accordance with §§ 29.90 through 29.97.
§ 29.44 If I am operating without prior
Service authorization, what do I need to do?
Any operation being conducted on
[INSERT EFFECTIVE DATE OF FINAL
RULE] in accordance with local, State,
and Federal laws and regulations may
continue without an operations permit.
However, your operation is subject to
applicable requirements of this subpart,
including §§ 29.60 through 29.64, PREEXISTING OPERATIONS, and the
requirements that when you either
propose to conduct new operations or
modify your pre-existing operations,
you must obtain an operations permit in
accordance with §§ 29.90 through 29.97.
Definitions
§ 29.50 What do the terms used in this
subpart mean?
In addition to the definitions in
§§ 25.12, 29.21, and 36.2 of this
subchapter, the following definitions
apply to this subpart:
Access means any method of entering
or traversing on or across federally
owned or controlled lands or waters,
including but not limited to: Vehicle,
watercraft, fixed-wing aircraft,
helicopter, unmanned aerial vehicle,
off-road vehicle, mobile heavy
equipment, snowmobile, pack animal,
and foot.
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Area of operations means lands or
waters within a refuge unit on which
operations are approved to be carried
out, including roads or other areas that
you are authorized to use related to the
exercise of your oil and gas rights.
Contaminating substance means any
toxic or hazardous substance that is
used in or results from the conduct of
operations and is listed under the Clean
Air Act (42 U.S.C. 7401 et seq.), Clean
Water Act regulations at 40 CFR part
116, the Resource Conservation and
Recovery Act regulations at 40 CFR part
261, or the Hazardous Materials
Transportation Act regulations at 49
CFR part 172. This includes, but is not
limited to, explosives, radioactive
materials, brine waters, formation
waters, petroleum products, petroleum
byproducts, and chemical compounds
used for drilling, production,
processing, well testing, well
completion, and well servicing.
Gas means any fluid, either
combustible or noncombustible, that is
produced in a natural state from the
earth and that maintains a gaseous or
rarefied state at ordinary temperature
and pressure conditions.
Oil means any viscous combustible
liquid hydrocarbon or solid
hydrocarbon substance that occurs
naturally in the earth and is easily
liquefiable on warming.
Modifying means conducting new
activities that will have additional
impacts on refuge resources, visitor
uses, refuge administration, or human
health and safety beyond the scope,
intensity, and/or duration of existing
impacts. In order to determine if new
activities would have additional
impacts, you must consult with the
Service.
Operations means all existing and
proposed functions, work, and activities
in connection with the exercise of oil or
gas rights not owned by the United
States and located or occurring within a
refuge.
(1) Operations include, but are not
limited to: Access by any means to or
from an area of operations; construction;
geological and geophysical exploration;
drilling, well servicing, workover, or
recompletion; production; hydraulic
fracturing, well simulation, and
injection wells; gathering (including
installation and maintenance of
flowlines and gathering lines); storage,
transport, or processing of petroleum
products; earth moving; excavation;
hauling; disposal; surveillance,
inspection, monitoring, or maintenance
of wells, facilities, and equipment;
reclamation; road and pad building or
improvement; shot hole and well
plugging and abandonment, and
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reclamation; and all other activities
incident to any of the foregoing.
(2) Operations do not include
reconnaissance surveys as defined in
this subpart or oil and gas pipelines that
are located within a refuge under
authority of a deeded or other right-ofway.
Operator means any person or entity,
agent, assignee, designee, lessee, or
representative thereof exercising or
proposing to exercise non-Federal oil
and gas rights within the boundaries of
a refuge.
Operations permit means a refuge
permit (i.e., special use permit or ROW
permit) authorizing an operator to
conduct operations within the
boundaries of a refuge.
Reconnaissance survey means an
inspection or survey conducted by
qualified specialists for the purpose of
preparing a permit application. A
reconnaissance survey:
(1) Includes identification of the area
of operations and collection of natural
and cultural resource information
within and adjacent to the proposed
area of operations.
(2) Does not include surface
disturbance activities except for
minimal disturbance necessary to
perform cultural resource surveys,
natural resource surveys, and location
surveys required under this subpart.
Right to operate means a deed, lease,
memorandum of lease, designation of
operator, assignment of right, or other
documentation demonstrating that you
hold a legal right to conduct the
operations you are proposing within a
refuge.
ROW means a right-of-way issued
under 50 CFR part 29 or, for Alaska,
under 43 CFR part 36.
Service, we, us and our means the
U.S. Fish and Wildlife Service.
Technologically feasible, leastdamaging methods are those that we
determine, on a case-by-case basis, to be
most protective of refuge resources and
uses while ensuring human health and
safety, taking into consideration all
relevant factors, including
environmental, economic, and
technological factors and the
requirements of applicable law.
Temporary access permit means a
Service special use permit authorizing
an operator to access that operator’s
proposed area of operations to conduct
reconnaissance surveys to collect basic
information necessary to prepare an
operations permit application.
Third-party monitor means a qualified
specialist, who is not an employee,
agent, or representative of the operator,
and who has demonstrated to the
Service the relevant expertise to monitor
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operations for compliance with
applicable laws, regulations, and permit
requirements.
Usable water means an aquifer or its
portion that:
(1) Supplies any public water system;
or
(2) Contains a sufficient quantity of
ground water to supply a public water
system; and currently supplies drinking
water for human consumption; or
contains fewer than 10,000 mg/l total
dissolved solids; and
(3) Is not an exempted aquifer.
Waste means any material that is
discarded. It includes, but is not limited
to: Drilling fluids and cuttings;
produced fluids not under regulation as
a toxic or hazardous substance; human
waste; garbage; fuel drums; pipes; oil;
refined oil and other hydrocarbons;
contaminated soil; synthetic materials;
manmade structures or equipment; or
native and nonnative materials.
You means the operator, unless
otherwise specified or indicated by the
context.
Pre-Existing Operations
§ 29.60 Do I need an operations permit for
my pre-existing operation?
No. Pre-existing operations are those
conducted as of [INSERT EFFECTIVE
DATE OF FINAL RULE] without an
approved permit from the Service or
prior to a boundary change or
establishment of a new refuge unit. Preexisting operations may be continued
without an operations permit, but are
required to operate in accordance with
applicable local, State, and Federal
laws, including regulations, and are
subject to applicable provisions of this
subpart, including requirements for a
permit when the operator proposes to
conduct new operations or to modify
pre-existing operations.
§ 29.61 What information must I provide to
the Service?
You must submit the following
information to the refuge where your
pre-existing operation is occurring by
[INSERT DATE 90 DAYS AFTER THE
EFFECTIVE DATE OF FINAL RULE] or
90 days after a boundary change or
establishment of a new refuge:
(a) Documentation demonstrating that
you hold the right to operate within a
refuge.
(b) The names, phone numbers, and
addresses of your:
(1) Primary company representative;
(2) Representative responsible for
field supervision; and
(3) Representative responsible for
emergency response.
(c) A scaled map clearly delineating
your existing area of operations.
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(d) Copies of all plans and permits
required by local, State, and Federal
agencies.
§ 29.62 What if I intend to conduct new
operations or modify my pre-existing
operations?
(a) You must obtain an operations
permit before conducting operations
that are begun after [INSERT
EFFECTIVE DATE OF FINAL RULE] in
accordance with §§ 29.90 through 29.97,
Operations Permit: Application.
(b) You must obtain an operations
permit prior to modifying your preexisting operations.
§ 29.63 What reclamation requirements
apply to my pre-existing operations?
Upon completion of your production
operation, you will be subject to the
reclamation standards in § 29.117(d).
You must obtain an operations permit
prior to conducting well plugging and
reclamation in accordance with
applicable sections of this subpart.
§ 29.64 What other provisions apply to my
operations?
Your pre-existing operations are also
subject to the following regulations in
this part 29:
(a) §§ 29.120 and 29.121, General
Terms and Conditions;
(b) § 29.170(a), Change of Operator;
(c) §§ 29.180 and 29.181, Well
Plugging;
(d) § 29.190, Prohibited Acts and
Penalties; and
(e) § 29.200, Appeals.
Temporary Access Permits
§ 29.70 When do I need a temporary
access permit?
You must apply to the Service for a
temporary access permit to access your
proposed area of operations in order to
conduct reconnaissance surveys. This
permit will describe the means, routes,
timing, and other terms and conditions
of your access as determined by the
Service to result in only the minimum
disturbance necessary to perform
surveys. For Alaska, the temporary
access provisions at 43 CFR 36.10 still
apply.
§ 29.71 How do I apply for a temporary
access permit?
You must submit the information
requested in FWS Form 3–2469 (Oil and
Gas Operations Special Use Permit
Application) to the refuge in which you
propose to conduct operations.
Information includes, but is not limited
to:
(a) The name, legal address, and
telephone number of the operator,
employee, agent, or contractor
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responsible for overall management of
the proposed operations;
(b) Documentation demonstrating that
you hold the right to operate within the
refuge;
(c) The name, legal address, telephone
number, and qualifications of all
specialists responsible for conducting
the reconnaissance surveys (Only
required if the assistants/
subcontractors/subpermittees will be
operating on the refuge without the
permittee being present.);
(d) A brief description of the intended
operation so that we can determine
reconnaissance survey needs;
(e) A description of the survey
methods you intend to use to identify
the natural and cultural resources;
(f) A map (to-scale and determined by
us to be acceptable) delineating the
proposed reconnaissance survey area in
relation to the refuge boundary and the
proposed area of operations; and
(g) A description of proposed means
of access and routes for conducting the
reconnaissance surveys.
§ 29.72 When will the Service grant a
temporary access permit?
Within 30 calendar days of receipt of
the application for a reconnaissance
survey, we will advise you whether the
application fulfills the requirements of
§§ 29.70 through 29.71 and issue you a
temporary access permit or provide you
with a statement of additional
information that is needed for us to
conduct review of your application.
§ 29.73 How much time will I have to
conduct my reconnaissance surveys?
Your temporary access permit will be
in effect for a maximum of 60 calendar
days from the date of issuance, unless
a longer term is specified in the permit
approval. We may extend the term of
the permit for a reasonable period of
time, based upon your written request
that explains why an extension is
necessary.
Accessing Oil and Gas Rights From a
Non-Federal Surface Location
(Including Inholdings)
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No. Using directional drilling from a
non-Federal surface location to reach
your oil and gas rights within a refuge
is exempt from these regulations.
However, you are encouraged to provide
the Service the names, phone numbers,
and addresses of your primary company
representative, representative
responsible for field supervision, and
representative responsible for
emergency response at least 60 calendar
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Operations Permit: Application
§ 29.90 Who must apply for an operations
permit?
Except as otherwise provided in
§§ 29.43, 29.44, 29.70 and 29.80, if you
are proposing to conduct operations
within a refuge, you must submit an
application (FWS Form 3–2469, or if in
Alaska SF–299) for an operations permit
to the Service.
§ 29.91 What should I do before filing an
application?
You should participate in a preapplication meeting with the Service to
allow for an early exchange of
information between you and the
Service with the intent of avoiding
delays in your application process.
(a) For the meeting, you should
provide:
(1) Documentation demonstrating that
you hold the legal right to operate; and
(2) An overview of your proposed
operation and timing.
(b) The Service will provide guidance
on the permitting process and
information on available resource data,
and identify additional data needs.
§ 29.92 May I use previously submitted
information?
Yes.
(a) You do not need to resubmit
information that is already on file with
the Service, provided that such
information is still current and accurate.
You may reference this information in
your oil and gas operations permit
application.
(b) You may submit documents and
materials submitted to other Federal and
State agencies noting how the
information meets the specific
requirements of §§ 29.93 through 29.97.
§ 29.93 Do I need to submit information for
all possible future operations?
§ 29.80 Do I need a permit for accessing
oil and gas rights from a non-Federal
location?
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days prior to conducting your operation.
If you require access across Federal
surface estate, that access is subject to
applicable provisions of this subpart,
including obtaining an operations
permit for any new access or
modification of existing access.
No. You need only provide
information for those operations for
which you are seeking immediate
approval. Approval of activities beyond
the scope of your application may be
subject to a new application and
approval process.
§ 29.94 What information must be included
in all applications?
All applications must include the
information requested on FWS Form 3–
2469 (or SF–299, if applicable),
including, but not limited to:
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(a) The name, legal address, and
telephone number of the operator,
employee, agent, or contractor
responsible for overall management of
the proposed operations.
(b) Documentation demonstrating that
you hold the legal right to operate
within the refuge.
(c) A description of the natural
features of your proposed area of
operations, such as: Streams, lakes,
ponds, wetlands (including estimated
depths to the top and bottom of zones
of usable water); topographic relief; and
areas the Service has indicated to you
are sensitive.
(d) The location of existing roads,
trails, railroad tracks, pipeline rights-ofway, pads, and other disturbed areas.
(e) The location of existing structures
that your operations could affect,
including buildings, pipelines, oil and
gas wells including both producing and
plugged and abandoned wells, injection
wells, freshwater wells, underground
and overhead electrical lines, and other
utility lines.
(f) Descriptions of the natural resource
and cultural resource survey reports for
your proposed area of operations.
(g) Locations map(s) (to-scale and
determined by us to be acceptable) that
clearly identifies:
(1) Proposed area of operations,
existing conditions, and proposed new
surface uses, including the boundaries
of each of your oil and gas tracts in
relation to your proposed operations
and the relevant refuge boundary.
(2) Proposed access routes of new
surface disturbances as determined by a
location survey.
(3) Proposed location of all support
facilities, including those for
transportation (e.g., vehicle parking
areas, helicopter pads, etc.), sanitation,
occupation, staging areas, fuel storage
areas, refueling areas, loading docks,
water supplies, and disposal facilities.
(h) The method and diagrams,
including cross-sections, of any
proposed pad construction, road
construction, cut-and-fill areas, and
surface maintenance, including erosion
control.
(i) The number and types of
equipment and vehicles, including an
estimate of vehicular round trips
associated with your operation.
(j) An estimated timetable for the
proposed operations, including any
operational timing constraints.
(k) The type and extent of security
measures proposed at your area of
operations.
(l) The power sources and their
transmission systems for the proposed
operations.
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(m) The types and quantities of all
solid and liquid waste generated and the
proposed methods of storage, handling,
and disposal.
(n) The source, quantity, access route,
and transportation/conveyance method
for all water to be used in operations,
including hydraulic fracturing, and
estimations of any anticipated
wastewater volumes generated,
including flowback fluids from
hydraulic fracturing, and the proposed
methods of storage, handling, and
recycling or disposal.
(o) The following information
regarding mitigation actions and
alternatives considered:
(1) A description of the steps you
propose to take to mitigate anticipated
adverse environmental impacts on
refuge resources and uses, including,
but not limited to, the refuge’s land
features, land uses, fish and wildlife,
vegetation, soils, surface and subsurface
water resources, air quality, noise,
lightscapes, viewsheds, cultural
resources, and economic environment.
(2) A description of any anticipated
impacts that you cannot mitigate.
(3) A description of alternatives
considered that meet the criteria of
technologically feasible, least-damaging
methods of operations, as well as the
costs and environmental effects of such
alternatives.
(p) You must submit the following
information about your spill control and
emergency preparedness plan. You may
use a spill prevention control and
countermeasure plan prepared under 40
CFR part 112 if the plan includes all of
the information required by this section.
You must submit:
(1) The names, addresses, and
telephone numbers of the people whom
the Service can contact in the event of
a spill, fire, or accident, including the
order in which the individuals should
be contacted.
(2) The notification procedures and
steps taken to minimize damage in
event of spill, fire, or accident.
(3) Identification of contaminating or
toxic substances used within your area
of operations or expected to be
encountered during operations.
(4) Trajectory analysis for potential
spills that are not contained on location.
(5) Identification of abnormal
pressure, temperature, toxic gases or
substances, or other hazardous
conditions at your area of operations or
expected to be encountered during
operations.
(6) Measures (e.g., procedures, facility
design, equipment, etc.) to minimize
risks to human health and safety, and
the environment.
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(7) Steps to prevent accumulations of
oil or other materials deemed to be fire
hazards from occurring in the vicinity of
well locations and lease tanks.
(8) The equipment and methods for
containment and cleanup of
contaminating substances, including a
description of the equipment available
at your area of operations and
equipment available from local
contractors.
(9) A stormwater drainage plan and
actions intended to mitigate stormwater
runoff.
(10) Material safety data sheets, where
required by law, for each material you
will use or encounter during operations,
including expected quantities
maintained at your area of operations.
(11) A description of the emergency
actions you will take in the event of
injury or death to fish and wildlife or
vegetation.
(12) A description of the emergency
actions you will take in the event of
accidents causing human injury.
(13) Contingency plans for conditions
and emergencies other than spills, such
as if your area of operations is located
in areas prone to hurricanes, flooding,
tornadoes, fires, or earthquakes.
(q) A description of the specific
equipment, materials, methods, and
schedule that will be used to meet the
operating standards for reclamation at
§ 29.117.
(r) An itemized list of the estimated
costs that a third party would charge to
complete reclamation.
§ 29.95 What additional information must
be included if I am proposing geophysical
exploration?
If you propose to conduct geophysical
exploration, you must submit the
information requested on FWS Form 3–
2469, including, but not limited to:
(a) A map showing the positions of
each survey line including all source
and receiver locations as determined by
a locational survey, and including shot
point offset distances from wells,
buildings, other infrastructure, cultural
resources, and environmentally
sensitive areas;
(b) The number of crews and numbers
of workers in each crew;
(c) A description of the acquisition
methods, including the procedures and
specific equipment you will use, and
energy sources (e.g., explosives,
vibroseis trucks);
(d) A description of the methods of
access along each survey line for
personnel, materials, and equipment;
and
(e) A list of all explosives, blasting
equipment, chemicals, and fuels you
will use in the proposed operations,
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including a description of proposed
disposal methods, transportation
methods, safety measures, and storage
facilities.
§ 29.96 What additional information must
be included if I am proposing drilling
operations?
If you are proposing to drill a well,
you must submit the information
requested on FWS Form 3–2469,
including, but not limited to:
(a) A description of the well pad
construction, including dimensions and
cross sections of cut-and-fill areas and
excavations for ditches, sumps, and
spill control equipment or structures,
including lined areas;
(b) A description of the drill rig and
equipment layout, including rig
components, fuel tanks, testing
equipment, support facilities, storage
areas, and all other well-site equipment
and facilities;
(c) A description of the type and
characteristics of the proposed drilling
mud systems; and
(d) A description of the equipment,
materials, and methods of surface
operations associated with your drilling,
well casing and cementing, well control,
well evaluation and testing, well
completion, hydraulic fracturing or
other well stimulation, and well
plugging programs.
§ 29.97 What additional information must
be included if I am proposing production
operations?
If you are proposing to produce a
well, you must submit the information
requested on FWS Form 3–2469,
including, but not limited to:
(a) The dimensions and the to-scale
layout of the well pad, clearly
identifying well locations, noting partial
reclamation areas; gathering, separation,
metering, and storage equipment;
electrical lines; fences; spill control
equipment or structures, including lined
areas, artificial lift equipment, tank
batteries, treating and separating
vessels, secondary or enhanced recovery
facilities, water disposal facilities, gas
compression and/or injection facilities;
metering points; sales point (if on lease);
tanker pickup points; gas compressor,
including size and type (if applicable);
and any other well site equipment.
(b) A general description of
anticipated stimulations, servicing, and
workovers.
(c) A description of the procedures
and equipment used to maintain well
control.
(d) A description of the method and
means used to transport produced oil
and gas, including vehicular transport;
flowline and gathering line construction
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and operation, pipe size, and operating
pressure; cathodic protection methods;
surface equipment use; surface
equipment location; maintenance
procedures; maintenance schedules;
pressure detection methods; and
shutdown procedures.
(e) A road and well pad maintenance
plan, including equipment and
materials to maintain the road surface
and control erosion.
(f) A vegetation management plan on
well sites, roads, pipeline corridors, and
other disturbed surface areas, including
control of noxious and invasive species.
(g) A stormwater management plan on
the well site.
(h) A produced water storage and
disposal plan.
(i) A description of the equipment,
materials, and procedures proposed for
well plugging.
Operations Permit: Application Review
§ 29.100 How will the Service process my
application?
We will conduct initial review of your
application to determine if all
information is complete. Once your
information is complete, we will begin
formal review.
tkelley on DSK3SPTVN1PROD with PROPOSALS3
§ 29.101 How will the Service conduct an
initial review?
(a) Within 30 calendar days of receipt
of your application, the Service will
notify you in writing that one of the
following situations exists:
(1) Your application is complete, and
the Service will begin formal review;
(2) Your application does not meet the
information requirements, in which case
we will identify the additional
information required to be submitted
before the Service will be able to
conduct formal review of your
application; or
(3) More time is necessary to complete
the review, in which case the Service
will provide the amount of additional
time reasonably needed along with a
justification.
(b) If you submit additional
information as requested under
§ 29.101(a)(2), and the Service
determines that you have met all
applicable information requirements,
the Service will notify you within 30
calendar days from receipt of the
additional information that either:
(1) Your application is complete, and
the Service will begin formal review; or
(2) More time is necessary to complete
the initial review, in which case the
Service will provide the amount of
additional time reasonably needed along
with a justification.
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(c) When ANILCA title XI/Access to
inholdings applies, 43 CFR 36.5 governs
the review.
(2) Denied, and provide justification
for the denial. Any such denial must be
consistent with § 29.40(c).
§ 29.102 How will the Service conduct a
formal review?
Operating Standards
For those applications for which the
Service determines that the applicant
holds a valid property right, the Service
will conduct a formal review of your
application by:
(a) Evaluating the potential impacts of
your proposal on federally owned or
administered lands, waters, or resources
of refuges; visitor uses or experiences; or
visitor or employee health and safety in
compliance with applicable Federal
laws; and
(b) Identifying any additional
operating conditions that would apply
to your approved application.
§ 29.103 What standards must be met to
approve my application?
(a) In order to approve your
operations permit application, it must
comply with all applicable Federal,
State, and local laws, and the Service
must determine that your operations
will:
(1) Use technologically feasible, leastdamaging methods; and
(2) Meet all applicable operating
standards.
(b) Before operations begin, you must
submit to the Service:
(1) Financial assurance in the amount
specified by the Service and in
accordance with the requirements of
§§ 29.150 through 29.154, Financial
Assurance; and
(2) Proof of liability insurance with
limits sufficient to cover injuries to
persons or property caused by your
operations.
§ 29.104 What actions may the Service
take on my operations permit application?
(a) We will make a decision on your
application within 180 days from the
date we deem your application
complete unless:
(1) We and you agree that such
decision will occur within a shorter or
longer period of time; or
(2) We determine that an additional
period of time is required to ensure that
we have, in reviewing the permit
application, complied with other
applicable laws, Executive Orders, and
regulations.
(b) For ANILCA title XI/Access to
inholding timelines, 43 CFR part 36
governs.
(c) We will notify you in writing that
your permit application is:
(1) Approved, with or without
operating conditions; or
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§ 29.110 What are the purposes of the
Service’s operating standards?
The purposes are to:
(a) Protect federally owned or
administered lands, waters, and refuge
resources; wildlife-dependent visitor
uses and experiences; and visitor and
employee health and safety; and
(b) Ensure use of technologically
feasible, least-damaging methods. The
operating standards give us and the
operator flexibility to consider using
alternative methods, equipment,
materials design, and conduct of
operations.
§ 29.111 What general facility design and
management standards must I meet?
As a permittee, you must:
(a) Design, construct, operate, and
maintain access to your operational site
to cause the minimum amount of
surface disturbance needed to safely
conduct operations and to avoid areas
we have identified as containing
sensitive resources.
(b) Install and maintain secondary
containment materials and structures for
all equipment and facilities using or
storing contaminating substances. The
containment system must be sufficiently
impervious to prevent discharge and
must have sufficient storage capacity to
contain, at a minimum, the largest
potential spill incident.
(c) Keep temporarily stored waste in
the smallest area feasible, and confine
the waste to prevent escape as a result
of percolation, rain, high water, or other
causes. You must regularly remove
waste from the refuge and lawfully
dispose of the waste in a direct and
workable timeframe. You may not
establish a solid waste disposal site on
a refuge.
(d) Use engines that adhere to current
Federal and State emission standards.
(e) Construct, maintain, and use roads
in a manner to minimize fugitive dust
emissions.
(f) Use equipment and implement
work practice standards that are
consistent with good air pollution
control practices to minimize emissions
of air pollutants, and releases or flaring
of gas.
(g) Design, operate, and maintain your
operations and equipment in a manner
consistent with good air pollution
control practices so as to minimize leaks
of air pollutants and hydrocarbons to
the atmosphere to the extent reasonably
practicable.
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(h) Control the invasion of noxious
and invasive plant and animal species
in your area of operations from the
beginning through final reclamation.
(i) Avoid conducting grounddisturbing operations within 500 feet of
any refuge structure or facility used by
refuges for interpretation, public
recreation, or administration. We may
increase or decrease this distance as
needed to protect federally owned or
administered structures or facilities,
visitor uses or experiences, or visitor or
employee health and safety; or to ensure
that you have reasonable access to your
non-Federal oil and gas. Measurements
for purposes of this paragraph are by
map distance.
§ 29.112 What fish and wildlife protection
standards must I meet?
To protect fish and wildlife resources
on the refuge, you must:
(a) Along with your employees and
contractors, adhere to all refuge
regulations for the protection of fish,
wildlife, and plants;
(b) Ensure that you, your employees,
and contractors have been informed and
educated by the refuge staff on the
appropriate protection practices for
wildlife conservation;
(c) Provide a safe environment for fish
and wildlife that minimizes or avoids
exposure to unpermitted physical and
chemical hazards; and
(d) Comply with all seasonal buffers
or restrictions to protect wildlife.
tkelley on DSK3SPTVN1PROD with PROPOSALS3
§ 29.113
meet?
What hydrologic standards must I
You must:
(a) Avoid conducting grounddisturbing operations within 500 feet of
surface water, including an intermittent
or ephemeral watercourse, or wetland.
We may increase or decrease this
distance as needed to protect federally
owned or administered lands, waters, or
resources of the refuge, visitor uses or
experiences, or visitor or employee
health and safety; or to ensure that you
have reasonable access to your nonFederal oil and gas. Measurements for
purposes of this paragraph are by map
distance.
(b) Construct facilities in a manner
that maintains hydrologic movement
and function.
(c) Not cause measurable degradation
of surface water or groundwater beyond
that of existing conditions.
(d) Conduct operations in a manner
that maintains natural processes of
erosion and sedimentation.
§ 29.114
meet?
What safety standards must I
To ensure the safety of your
operations, you must:
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(a) Maintain your area of operations in
a manner that avoids or minimizes the
cause or spread of fire and does not
intensify fire originating outside your
operations area;
(b) Maintain structures, facilities,
improvements, and equipment in a safe
and professional manner in order to
provide a safe environment for refuge
resources, visitors, and employees, free
from exposure to physical and chemical
hazards; and
(c) Provide site-security measures to
protect visitors from hazardous
conditions resulting from the conduct of
your operations.
§ 29.115 What lighting and visual
standards must I meet?
(a) You must design, shield, and focus
lighting to minimize the effects of spill
light on the night sky or adjacent areas;
and
(b) You must reduce visual contrast in
the landscape in selecting the area of
operations, avoiding unnecessary
disturbance, choosing appropriate
colors and materials for roads and
permanent structures, and other means.
§ 29.116 What noise reduction standards
must I meet?
You must prevent or minimize all
noise that:
(a) Adversely affects refuge resources
or uses, taking into account frequency,
magnitude, or duration; or
(b) Exceeds levels that have been
identified through monitoring as being
acceptable to or appropriate for uses at
the sites being monitored.
§ 29.117 What reclamation and protection
standards must I meet?
(a) You must promptly clean up and
remove from the refuge any released
contaminating substances in accordance
with all applicable Federal, State, and
local laws.
(b) You must perform partial
reclamation of areas that are no longer
necessary to conduct operations. You
must begin final reclamation within 6
months after you complete your
authorized operations unless we
authorize a different reclamation period
in writing.
(c) You must protect all survey
markers (e.g., monuments, witness
corners, reference monuments, and
bearing trees) against destruction,
obliteration, or damage from operations.
You are responsible for reestablishment,
restoration, and referencing of any
monuments, corners, and bearing trees
that are destroyed, obliterated, or
damaged by your operations.
(d) You must complete reclamation
by:
(1) Plugging all wells;
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(2) Removing all above-ground
structures, equipment, roads, and all
other manmade material and debris
resulting from operations;
(3) Removing or neutralizing any
contaminating substances;
(4) Reestablishing native vegetative
communities, or providing for
conditions where ecological processes
typical of the ecological zone (e.g., plant
or wildlife succession) will reestablish
themselves;
(5) Grading to reasonably conform the
contours to pre-existing elevations that
are most appropriate to maximizing
ecologic functional value;
(6) Restoring conditions to
predisturbance hydrologic movement
and functionality;
(7) Restoring natural systems using
native soil material that is similar in
character to the adjacent undisturbed
soil profiles;
(8) Ensuring that reclamation does not
interfere with visitor use or with
administration of the unit;
(9) Attaining conditions that are
consistent with the management
objectives of the refuge, designed to
meet the purposes for which the refuge
was established; and
(10) Coordinating with us or with
other operators who may be using a
portion of your area of operations to
ensure proper and equitable
apportionment of reclamation
responsibilities.
§ 29.118 What additional operating
standards apply to geophysical operations?
If you conduct geophysical
operations, you must do all of the
following:
(a) Use surveying methods that
minimize the need for vegetative
trimming and removal.
(b) Locate source points using
industry-accepted minimum safe-offset
distances from pipelines, telephone
lines, railroad tracks, roads, power lines,
water wells, oil and gas wells, oil- and
gas-production facilities, and buildings.
(c) Use equipment and methods that,
based upon the specific environment,
will minimize impacts to federally
owned or administered lands, waters,
and resources of refuges; visitor uses
and experiences; and visitor and
employee health and safety.
(d) If you use shot holes, you must:
(1) Use biodegradable charges;
(2) Plug all shot holes to prevent a
pathway for migration for fluids along
any portion of the bore; and
(3) Leave the site in a clean and safe
condition that will not impede surface
reclamation or pose a hazard to human
health and safety.
(e) For geological and geophysical
exploration for oil and gas within the
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coastal plain of the Arctic National
Wildlife Refuge, the regulations at 50
CFR part 37 apply.
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§ 29.119 What additional operating
standards apply to drilling and production
operations?
If you conduct drilling and
production operations, you must meet
all of the following standards:
(a) To conduct drilling operations,
you must:
(1) Use containerized mud circulation
systems for operations;
(2) Not create or use earthen pits;
(3) Take all necessary precautions to
keep your wells under control at all
times, using only employees,
contractors, or subcontractors trained
and competent in well control
procedures and equipment operation,
and using industry-accepted well
control equipment and practices; and
(4) Design, implement, and maintain
integrated casing, cementing, drilling
fluid, completion, stimulation, and
blowout prevention programs to prevent
escape of fluids to the surface and to
isolate and protect usable water zones
throughout the life of the well, taking
into account all relevant geologic and
engineering factors.
(b) To conduct production operations,
in addition to meeting the standards of
paragraphs (a)(1) through (a)(4) of this
section, you must do all of the
following:
(1) Monitor producing conditions for
early indications that could lead to loss
of mechanical integrity of producing
equipment.
(2) Maintain all surface equipment
and the wellhead to prevent leaks or
releases of any fluids or air pollutants.
(3) Identify wells and related facilities
with appropriate signage. Signs must
remain in place until the well is plugged
and abandoned and the related facilities
are removed. Signs must be of durable
construction, and the lettering must be
legible and large enough to be read
under normal conditions at a distance of
at least 50 feet. Each sign must show the
name of the well, name of the operator,
and the emergency contact phone
number.
(4) Regularly remove all equipment
and materials that are no longer needed
for a particular phase of your operation.
(5) Plug all wells, leaving the surface
in a clean and safe condition that will
not impede surface reclamation or pose
a hazard to human health and safety, in
accordance with § 29.117.
General Terms and Conditions
§ 29.120 What terms and conditions apply
to all operators?
The following terms and conditions
apply to all operators, regardless of
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whether these terms and conditions are
expressly included in the operations
permit:
(a) You must comply with all
applicable operating standards in
§§ 29.111 through 29.119; these
operating standards will be incorporated
in the terms and conditions of your
operations permit. Violation of these
operating standards, unless otherwise
provided in your operations permit, will
subject you to the Prohibited Acts and
penalties provisions of §§ 29.190
through 29.192.
(b) You are responsible for ensuring
that all of your employees, agents,
contractors, and subcontractors comply
fully with the requirements of this
subpart.
(c) You may be required to reimburse
the Service for the costs of processing
and administering temporary access
permits and operations permits.
(d) If not covered by a State-held
water right, any use of water within a
refuge must be approved by the Service
upon the Service’s determination that it
will not impair any refuge resource or
use.
(e) You must provide the refuge a
statement under penalty of perjury,
signed by an official who is authorized
to legally bind the company, stating that
proposed operations are in compliance
with all applicable Federal, State, and
local laws and regulations and that all
information submitted to the Service is
true and correct.
(f) You agree to indemnify and hold
harmless the United States and its
officers and employees from and against
any and all liability of any kind
whatsoever arising out of or resulting
from the acts or omissions of you and
your employees, agents, representatives,
contractors, and subcontractors in the
conduct of activities under the
operations permit.
(g) You will be required to take all
reasonable precautions to avoid,
minimize, rectify, or reduce the overall
impacts of your proposed oil and gas
activities to the refuge. You may be
required to mitigate for impacts to
refuge resources and lost uses by
providing for habitat creation, habitat
restoration, land purchase, or other
compensation agreed to by the Service.
(h) You will be responsible for
unanticipated and unauthorized
damages as a direct or indirect result of
your operations. You will be responsible
for the actions and consequences of
your employees and subcontractors.
You will also be responsible for any
reclamation of damages to refuge
resources caused by your operations as
a result of severe weather, fire,
earthquakes, or the like thereof.
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§ 29.121 What monitoring and reporting is
required for all operators?
(a) The Service may access your area
of operations at any time to monitor the
effects of your operations to ensure
compliance with the regulations in this
subpart.
(b) The Service may determine that
third-party monitors are necessary to
ensure compliance with your operations
permit and to protect federally owned or
administered lands, waters, or the
resources of refuges, visitor uses and
experiences, and visitor or employee
health and safety.
(1) The Service’s determination will
be based on the scope and complexity
of the proposed operation, reports that
you are required to submit under
paragraph (e) of this section, and
whether the refuge has the staff and
technical ability to ensure compliance
with the operations permit and any
provision of this subpart.
(2) A third-party monitor will report
directly to the Service at intervals
determined by the Service. We will
make the information reported available
to you upon your request.
(3) You will be responsible for the
cost of the third-party monitor.
(c) You must notify the Service within
24 hours of any injuries to or mortality
of fish, wildlife, or endangered or
threatened plants resulting from your
operations.
(d) You must notify the Service of any
accidents involving serious personal
injury or death and of any fires or spills
on the site immediately after the
accident occurs. You must submit a full
written report on the accident to the
Service within 90 days after the
accident occurs.
(e) Upon our request, you must
submit reports or other information
necessary to verify compliance with
your permit or with any provision of
this subpart. To fulfill this request, you
may submit to us reports that you have
submitted to the State under State
regulations, or that you have submitted
to any other Federal agency.
(f) If your operations include
hydraulic fracturing, you must provide
the Service with a report including the
true vertical depth of the well, total
water volume used, and a description of
the base fluid and each additive in the
hydraulic fracturing fluid, including the
trade name, supplier, purpose,
ingredients, Chemical Abstract Service
Number (CAS), maximum ingredient
concentration in additive (percent by
mass), and maximum ingredient
concentration in hydraulic fracturing
fluid (percent by mass). The report must
be submitted through FracFocus or
another Service-designated database.
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§ 29.122 For how long is my operations
permit valid?
Operations permits remain valid for
the duration of the operation. Provisions
of § 29.160 apply.
Access Fees
§ 29.140 May I cross Federal property to
reach the boundary of my oil and gas right?
(a) The Service may grant you the
privilege of access on, across, or through
federally owned or administered lands
or waters in any refuge to reach the
boundary of your oil and gas right. You
should contact the Service to determine
if additional permits are necessary for
access.
(b) In refuge units in Alaska,
regulations and standards at 43 CFR part
36 govern access, including access fees,
to an operator’s oil and gas right.
§ 29.141 Will the Service charge me a fee
for access?
(a) The Service will charge you a fee
if you require use of federally owned or
administered lands or waters outside
the boundary or scope of your oil and
gas right:
(1) If you require new use of federally
owned or administered lands or waters,
we will charge you a fee based on the
fair market value of that use.
(2) Fees under this section will not be
charged for access within the scope of
your oil and gas right or access to your
right that is otherwise provided for by
law.
(b) If access to your oil and gas right
is across an existing refuge road, we
may charge a fee according to a posted
fee schedule.
(c) We, to the extent permitted by law,
may allow you to undertake in-kind
services to offset fees.
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§ 29.142 Will I be charged a fee for
emergency access to my operations?
No.
(a) The Service will not charge a fee
for access across federally owned or
administered lands beyond the scope of
your oil and gas right as necessary to
respond to an emergency situation at
your area of operations if we determine
after the fact that the circumstances
required an immediate response to
either:
(1) Prevent or minimize injury to
refuge resources; or
(2) Ensure public health and safety.
(b) You will be liable for any damage
caused to refuge resources as a result of
such emergency access.
Financial Assurance
§ 29.150 When do I have to provide
financial assurance to the Service?
You will need to provide financial
assurances as a condition of approval
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for your operations permit when you
submit your application. You must file
financial assurance with us in a form
acceptable to the Service and payable
upon demand. This financial assurance
is in addition to any financial assurance
required by any other Federal or State
regulatory authority.
§ 29.151 How does the Service establish
the amount of financial assurance?
(a) We will base the financial
assurance amount upon the estimated
cost that a third-party contractor would
charge to complete reclamation in
accordance with this subpart. If the cost
of reclamation exceeds the amount of
your financial assurance, you will
remain liable for all costs of reclamation
in excess of the financial assurance.
(b) The Service will reduce the
required amount of your financial
assurance during the pendency of
operations by the amount we determine
is represented by in-kind reclamation
you provide during your operations.
§ 29.152 Will the Service adjust the
amount required for my financial
assurance?
The Service may require, or you may
request, an adjustment to the financial
assurance amount because of any
circumstance that increases or decreases
the estimated costs established under
§ 29.151.
§ 29.153 When will the Service release my
financial assurance?
(a) Your responsibility under the
financial assurance will continue until
either:
(1) The Service determines that you
have met all applicable reclamation
operating standards and any additional
reclamation requirements that may be
included in your operations permit; or
(2) A new operator assumes your
operations, as provided in § 29.170(b).
(b) You will be notified by the Service
within 30 calendar days of our
determination that your financial
assurance has been released.
§ 29.154 Under what circumstances will I
forfeit my financial assurance?
(a) You may forfeit all or part of your
financial assurance if we cannot secure
your compliance with the provisions of
your operations permit or a provision of
this subpart. The part of your financial
assurance forfeited is based on costs to
the Service to remedy your
noncompliance.
(b) In addition to forfeited financial
assurance, we may temporarily:
(1) Prohibit you from removing all
structures, equipment, or other
materials from your area of operations;
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(2) Require you to secure the
operations site and take any necessary
actions to protect federally owned or
administered lands, waters, and
resources of the refuge; visitor uses; and
visitor or employee health and safety;
and
(3) Suspend review of any permit
applications you have submitted until
we determine that all violations of
permit provisions or of any provision of
this subpart are resolved.
(4) Seek recovery as provided in
§ 29.151 for all costs of reclamation in
excess of the posted financial assurance.
Modification to an Operation
§ 29.160 Can I modify operations under an
approved permit?
The Service may amend an approved
temporary access permit or an
operations permit to adjust to changed
conditions or to address unanticipated
conditions, either upon our own action
or at your request.
(a) To request a modification to your
operation, you must provide, in writing,
to the Service, your assigned permit
number, a description of the proposed
modification, and an explanation of
why the modification is needed. We
will review your request for
modification under the approval
standards at §§ 29.72 or 29.103.
(b) If the Service needs to amend your
temporary access permit or operations
permit, you will receive a written notice
that:
(1) Describes the modification
required and justification; and
(2) Specifies the time within which
you must incorporate the modification
into your operations.
(c) You may not implement any
modification until you have received
the Service’s written approval.
Change of Operator
§ 29.170 What are my responsibilities if I
transfer my right to operate?
(a) If your operations are being
conducted under § 29.44, you must
notify the Service in writing within 30
calendar days from the date the new
operator acquires the rights to conduct
operations. Your written notification
must include:
(1) The names and addresses of the
person or entity conveying the right and
of the person or entity acquiring the
right;
(2) The effective date of transfer;
(3) The description of the rights,
assets, and liabilities being transferred
and which ones, if any, are being
reserved by the previous operator; and
(4) A written acknowledgement from
the new operator that the contents of the
notification are true and correct.
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(b) If your operations are being
conducted under § 29.43 or an
operations permit:
(1) You must provide notice under
paragraph (a) of this section.
(2) You remain responsible for
compliance with your operations
permit, and we will retain your
financial assurance until the new
operator:
(i) Adopts and agrees in writing to
conduct operations in accordance with
all terms and conditions of your
operations permit;
(ii) Provides financial assurance with
us that is acceptable to the Service and
made payable to the Service; and
(iii) Receives written notification from
the Service that transfer of the
operations permit has been approved.
§ 29.171 What must I do if operations are
transferred to me?
(a) If another operator transfers
operations conducted under § 29.44, as
the transferee you may continue
operating under the requirements of that
section, but within 30 calendar days
from the date of the transfer, you must
provide to the Service:
(1) Documentation demonstrating that
you hold the right to operate; and
(2) The names, phone numbers, and
addresses of your:
(i) Primary company representative;
(ii) Representative responsible for
field supervision; and
(iii) Representative responsible for
emergency response.
(b) If another operator transfers
operations conducted under § 29.43 or
an operations permit, in addition to the
information required under paragraph
(a) of this section, you must within 30
days of commencing transferred
operations:
(1) Agree in writing to conduct
operations in accordance with all terms
and conditions of the previous
operator’s permit; and
(2) File financial assurance with us
that is acceptable to the Service and
made payable to the Service; and
(3) Receive written approval from the
Service for the transfer of the
operation’s permit.
(c) You may modify operations
transferred to you in accordance with
§ 29.160.
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Well Plugging
§ 29.180
When must I plug my well?
Except as provided in § 29.181, you
must plug your well, in accordance with
the standards and procedures outlined
in this subpart, when any of the
following occurs:
(a) Your drilling operations have
ended and you have taken no further
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action on your well within 60 calendar
days;
(b) Your well, which has been
completed for production operations, is
continuously inactive for a period of 1
year; or
(c) The period approved in your
operations permit to maintain your well
in shut-in status has expired.
§ 29.181 Can I get an extension to the well
plugging requirement?
(a) You may apply for either an
operations permit or a modification to
your approved operations permit to
maintain your well in a shut-in status
for up to 5 years. Provide the
information requested on FWS Form 3–
2469, including, but not limited to:
(1) An explanation of why the well is
shut-in or temporarily abandoned and
your future plans for utilization;
(2) A demonstration of the mechanical
integrity of the well; and
(3) A description of the manner in
which your well, equipment, and area of
operations will be maintained in
accordance with the standards in the
subpart.
(b) Based on the information provided
under this section, we may approve
your application to maintain your well
in shut-in status for a period up to 5
years.
(c) You may apply for additional
extensions by submitting a new
application under paragraph (a) of this
section.
Prohibited Acts and Penalties
§ 29.190 What acts are prohibited under
this subpart?
The following acts are prohibited:
(a) Operating in violation of the terms
or conditions of a temporary access
permit, an operations permit, a permit
under § 29.43, or any applicable
provision of this subpart, including
§ 29.60 for pre-existing operations.
(b) Damaging federally owned or
administered lands, waters, or resources
of a refuge as a result of failure to
comply with the terms or conditions of
a temporary access permit, an
operations permit, operations being
conducted under §§ 29.43 or 29.44, or
any provision of this subpart.
(c) Conducting operations without a
temporary access permit or an
operations permit, unless conducting
operations under §§ 29.43 or 29.44.
(d) Failure to comply with any
suspension or revocation order issued
under this subpart.
(e) Failure to comply with any
applicable Federal law or regulation,
including any applicable State law or
regulation. Unless specifically covered
by the general and special regulations
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set forth in this subchapter, the laws
and regulations of the State within
whose exterior boundaries a national
wildlife refuge or portion thereof is
located will govern the exploration,
production, storage, and transportation
of oil and gas. Such non-conflicting
State laws and regulations that are now
or may hereafter be in effect are hereby
adopted and made a part of the
regulations in this part.
(f) Failure to comply with any of the
above in Alaska, except for violations of
43 CFR part 36, which are governed by
the regulations in subpart B of this part.
§ 29.191 What enforcement actions can
the Service take?
If you engage in a prohibited act:
(a) The Service may suspend and/or
revoke your approved operations permit
and your authorization for operations as
set forth at § 29.43 and § 29.44; and/or
(b) All prohibited acts are subject to
the penalty provisions set forth at
§ 28.31 of subchapter C of this chapter.
§ 29.192 How do violations affect my
ability to obtain a permit?
Until you comply with the regulations
in this subpart, we will not consider a
new request to conduct any operations
within a refuge.
Appeals
§ 29.200 Can I, as operator, appeal Service
decisions?
Yes. If you disagree with a decision
made by the Service under this subpart,
you may use the appeals process in
§ 25.45 of subchapter C of this chapter.
For ROWs, appeals would still be
governed by § 29.22; in Alaska, appeals
would still be governed by 43 CFR 36.8.
Public Information
§ 29.210 How can the public learn about oil
and gas activities on refuge lands?
(a) Interested parties may view the
publicly available documents at the
refuge’s office during normal business
hours or by other means prescribed by
the refuge. The availability for public
inspection of information about the
nature, location, character, or ownership
of refuge resources will conform to all
applicable law and implementing
regulations, standards, and guidelines.
(b) The refuge will make available for
public inspection any documents that
an operator submits to the Service under
this subpart except those that you have
identified as proprietary or confidential.
(c) For the information required in
§ 29.121(f), the operator and the owner
of the information will be deemed to
have waived any right to protect from
public disclosure information submitted
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through FracFocus or another Servicedesignated database.
(d) For information required under
this subpart that the owner of the
information claims to be exempt from
public disclosure and is withheld from
the Service, a corporate officer,
managing partner, or sole proprietor of
the operator must sign and the operator
must submit to the authorized officer an
affidavit that:
(1) Identifies the owner of the
withheld information and provides the
name, address, and contact information
for a corporate officer, managing
partner, or sole proprietor of the owner
of the information;
(2) Identifies the Federal statute or
regulation that would prohibit the
Service from publicly disclosing the
information if it were in the Service’s
possession;
(3) Affirms that the operator has been
provided the withheld information from
the owner of the information and is
maintaining records of the withheld
information, or that the operator has
access and will maintain access to the
withheld information held by the owner
of the information;
(4) Affirms that the information is not
publicly available;
(5) Affirms that the information is not
required to be publicly disclosed under
any applicable local, State, tribal, or
Federal law;
(6) Affirms that the owner of the
information is in actual competition and
identifies competitors or others that
could use the withheld information to
cause the owner of the information
substantial competitive harm;
(7) Affirms that the release of the
information would likely cause
substantial competitive harm to the
VerDate Sep<11>2014
18:35 Dec 10, 2015
Jkt 238001
owner of the information and provides
the factual basis for that affirmation; and
(8) Affirms that the information is not
readily apparent through reverse
engineering with publicly available
information.
(e) If the operator relies upon
information from third parties, such as
the owner of the withheld information,
to make the affirmations in paragraphs
(d)(6) through (d)(8) of this section, the
operator must provide a written
affidavit from the third party that sets
forth the relied-upon information.
(f) The Service may require any
operator to submit to the Service any
withheld information, and any
information relevant to a claim that
withheld information is exempt from
public disclosure.
(g) If the Service determines that the
information submitted under paragraph
(e) of this section is not exempt from
disclosure, the Service will make the
information available to the public after
providing the operator and owner of the
information with no fewer than 10
business days’ notice of the Service’s
determination.
(h) The operator must maintain
records of the withheld information
until the later of the Service’s release of
the operator’s financial assurance or 7
years after completion of operations on
refuge lands. Any subsequent operator
will be responsible for maintaining
access to records required by this
paragraph during its operation of the
well. The operator will be deemed to be
maintaining the records if it can
promptly provide the complete and
accurate information to the Service,
even if the information is in the custody
of its owner.
PO 00000
Frm 00031
Fmt 4701
Sfmt 9990
77229
(i) If any of the chemical identity
information required in this subpart is
withheld, the operator must provide the
generic chemical name in the
submission required. The generic
chemical name must be only as
nonspecific as is necessary to protect
the confidential chemical identity, and
should be the same as or no less
descriptive than the generic chemical
name provided to the Environmental
Protection Agency.
Information Collection
§ 29.220 Has the Office of Management
and Budget approved the collection of
information?
The Office of Management and Budget
reviewed and approved the information
collection requirements contained in
this subpart and assigned OMB Control
No. 1018–XXXX. We use the
information collected under this subpart
to manage non-Federal oil and gas
operations within refuge boundaries for
the purpose of protecting wildlife and
habitat, water quality and quantity,
wildlife-dependent recreational
opportunities, and the health and safety
of employees and visitors on NWRS
lands. We may not conduct or sponsor
and you are not required to respond to
a collection of information unless it
displays a currently valid OMB control
number. You may send comments on
the information collection requirements
to the Information Collection Clearance
Officer, U.S. Fish and Wildlife Service,
at the address listed in 50 CFR 2.2.
Karen Hyun,
Deputy Assistant Secretary for Fish and
Wildlife and Parks.
[FR Doc. 2015–30977 Filed 12–10–15; 8:45 am]
BILLING CODE 4333–15–P
E:\FR\FM\11DEP3.SGM
11DEP3
Agencies
[Federal Register Volume 80, Number 238 (Friday, December 11, 2015)]
[Proposed Rules]
[Pages 77199-77229]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30977]
[[Page 77199]]
Vol. 80
Friday,
No. 238
December 11, 2015
Part IV
Department of the Interior
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Fish and Wildlife Service
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50 CFR Parts 28 and 29
Management of Non-Federal Oil and Gas Rights; Proposed Rule
Federal Register / Vol. 80 , No. 238 / Friday, December 11, 2015 /
Proposed Rules
[[Page 77200]]
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DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
50 CFR Parts 28 and 29
[Docket No. FWS-HQ-NWRS-2012-0086; FXRS12610900000-156-FF09R24000]
RIN 1018-AX36
Management of Non-Federal Oil and Gas Rights
AGENCY: Fish and Wildlife Service, Interior.
ACTION: Proposed rule.
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SUMMARY: We, the U.S. Fish and Wildlife Service (Service), are
proposing to revise regulations governing the exercise of non-Federal
oil and gas rights in order to improve our ability to protect refuge
resources, visitors, and the general public's health and safety from
potential impacts associated with non-Federal oil and gas operations
located within U.S. Fish and Wildlife Service refuge units. Non-Federal
oil and gas development refers to oil and gas activities associated
with any private, State, or tribally owned mineral interest where the
surface estate is administered by the Service as part of the Refuge
System. The existing non-Federal oil and gas regulations have remained
unchanged for more than 50 years and provide vague guidance to staff
and operators. This proposed rule would make the regulations consistent
with existing laws, policies and industry practices. It is designed to
provide regulatory clarity and guidance to oil and gas operators and
refuge staff, provide a simple process for compliance, incorporate
technological improvements in exploration and drilling technology, and
ensure that non-Federal oil and gas operations are conducted in a
manner that avoids or minimizes impacts to refuge resources.
DATES: Comments on this proposed rule must be received on or before
February 9, 2016. Comments on the information collection aspects of
this rule must be received on or before January 11, 2016.
ADDRESSES: Document Availability: An economic analysis and a draft
environmental impact statement (DEIS) have been prepared in conjunction
with preparation of this proposed rule, and both documents are
available at https://www.fws.gov/refuges/oil-and-gas/rulemaking.html and
also at www.regulations.gov at Docket No. FWS-HQ-NWRS-2012-0086.
Comments on the Proposed Rule and DEIS: You may submit comments on
this proposed rule or the DEIS by one of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov. In
the Search box, type FWS-HQ-NWRS-2012-0086, which is the docket number
for this proposed rule. Then click on the Search button. When you have
located the correct document, you may submit a comment by clicking on
``Comment Now!''
U.S. mail or hand-delivery: Submit comments on the
proposed rule or DEIS to: Public Comments Processing Attn: FWS-HQ-NWRS-
2012-0086; Division of Policy, Performance, and Management Programs;
U.S. Fish and Wildlife Service, MS: BPHC; 5275 Leesburg Pike; Falls
Church, VA 22041-3803.
Please indicate to which document, the proposed rule or the DEIS,
your comments apply. We request that you send comments only by the
methods described above. We will post all comments on https://www.regulations.gov. This generally means that we will post any
personal information you provide us. For additional instructions on
submitting comments and additional information on the rulemaking
process, see the Public Participation heading of the SUPPLEMENTARY
INFORMATION section of this document.
Comments on the Information Collection Aspects of the Proposed
Rule: You may review the Information Collection Request online at
https://www.reginfo.gov. Follow the instructions to review Department of
the Interior collections under review by OMB. Send comments (identified
by 1018-AX36) specific to the information collection aspects of this
proposed rule to both the:
Desk Officer for the Department of the Interior at OMB-
OIRA at (202) 295-5806 (fax) or OIRA_Submission@omb.eop.gov (email);
and
Service Information Collection Clearance Officer; Division
of Policy, Performance, and Management Programs; U.S. Fish and Wildlife
Service, MS: BPHC; 5275 Leesburg Pike; Falls Church, VA 22041-3803
(mail); or hope_grey@fws.gov (email).
FOR FURTHER INFORMATION CONTACT: Scott Covington, U.S. Fish and
Wildlife Service, Division of Natural Resources and Planning, MS: NWRS,
5275 Leesburg Pike, Falls Church, Virginia 22043; telephone 703-358-
2427.
SUPPLEMENTARY INFORMATION:
Executive Summary
We are proposing to update the existing regulations at subpart C of
part 29 of title 50 of the Code of Federal Regulations (CFR) and
propose new regulations as subpart D of 50 CFR part 29, which would
govern the exercise of non-Federal oil and gas rights within refuge
units, to improve the effectiveness of the regulations in protecting
refuge resources and values, and to improve the clarity of the
regulations for both operators and the Service.
Key components of the proposed rule include:
A permitting process for new operations;
A permitting process for well-plugging and reclamation for
all operations;
Information requirements for particular types of
operations;
Operating standards so that both the Service and the
operator can readily identify what standards apply to particular
operations;
Fees for new access beyond that held as part of the
operator's oil and gas right;
Financial assurance (bonding);
Penalty provisions;
Clarification that the process for authorizing access to
non-Federal oil and gas properties in Alaska will continue to be
controlled by 43 CFR part 36, which implements provisions of the Alaska
National Interest Lands Conservation Act; and
Codification of some existing agency policies and
practices.
A detailed discussion of all proposed changes to the regulations is
contained in the section-by-section analysis.
Background
In 2003, the Government Accountability Office (GAO) issued a report
(GAO-03-517) to Congress highlighting the opportunities to improve
management and oversight of oil and gas operations on National Wildlife
Refuge System (NWRS) lands and waters. An update by GAO in 2007 (GAO-
07-829R) reasserted the recommendation that the Service take the
necessary steps to apply a consistent and reasonable set of regulatory
and management controls over all oil and gas activities occurring on
refuges to protect the public's surface interests. Other land
management agencies have regulations that address oil and gas
development for non-Federal subsurface interests, including the
Department of the Interior's National Park Service (NPS) and the U.S.
Department of Agriculture's Forest Service. This proposed rule would
address concerns highlighted in the GAO reports and bring the Service
more in line with other Federal land management agencies.
[[Page 77201]]
Based on Service data from 2011, there are over 5,000 oil and gas
wells on 107 refuges in a total of 599 refuge units. Of the wells
present on refuges, 1,665 actively produce oil and gas. Based on the
existence of split estates (where the Service owns the surface estate
and another party owns the mineral estate), exploration and production
already occurring on adjacent or nearby lands, and future increases in
energy prices, non-Federal oil and gas operations within refuges
potentially could affect many additional refuges. Because of the
impacts of oil and gas operations, a rulemaking is necessary to create
a consistent and reasonable set of regulatory management controls for
non-Federal oil and gas operations on refuges.
In 1960, the Service promulgated the current regulations at 50 CFR
29.32 to govern the exercise of non-Federal mineral rights on NWRS
lands and waters. These regulations have not been updated. These
regulations outline a general policy to minimize impacts to refuge
resources to the extent practicable from all activities associated with
non-Federal mineral exploration and development where access is on,
across, or through federally owned or controlled lands or waters of the
NWRS. However, they have been ineffective at protecting refuge
resources or providing operators explicit requirements for operating on
refuge lands. The current regulations lack both a process and specific
guidance for operators and refuge employees to plan efficient
operations on refuges that minimize impacts to refuge resources.
Similarly, existing Service policies related to exploring and
developing non-Federal oil and gas rights under refuges, such as 612 FW
3, lack regulatory provisions needed to successfully protect refuge
resources and provide sufficient guidance.
Authority To Promulgate Regulations
One of the principal recommendations of the 2003 GAO report was for
the Service to clarify its regulatory authority over non-Federal oil
and gas operations on NWRS lands. This rulemaking provides notice to
the public that the authorities given to the Service by Congress
include the authority to regulate the exercise of non-Federal oil and
gas rights located within refuge units. Because the Service's current
regulations from 1960 pre-date the National Wildlife Refuge System
Administration Act (NWRSAA), as amended by the National Wildlife Refuge
System Improvement Act (NWRSIA) (16 U.S.C. 668dd et seq.) and do not
clearly assert or implement the full extent of the Service's authority
to regulate non-Federal oil and gas rights or provide for consistent
management of the exercise of those rights, we are proposing to revise
the current regulations.
The authority of Congress to provide for the regulation of non-
Federal oil and gas operations on NWRS lands is derived from the
Property Clause of the United States Constitution (U.S. Const. art. IV,
sec. 3). Specifically, the Service has been provided the statutory
authority to manage Federal lands and resources under NWRSAA, as
amended by the NWRSIA. In 1997, Congress enacted the NWRSIA, amending
and building upon the NWRSAA in a manner that provided an organic act
for the NWRS similar to those which exist for other public lands.
Generally, in enacting the NWRSIA, Congress recognized that the Service
needed additional guidance and authority to manage the NWRS.
The NWRSIA (16 U.S.C. 668dd(a)(4)) mandates the Secretary of the
Interior, in administering the System, to:
Provide for the conservation of fish, wildlife, and
plants, and their habitats within the NWRS;
Ensure that the biological integrity, diversity, and
environmental health of the NWRS are maintained for the benefit of
present and future generations of Americans;
Ensure that the mission of the NWRS described at 16 U.S.C.
668dd(a)(2) and the purposes of each refuge are carried out;
Ensure effective coordination, interaction, and
cooperation with owners of land adjoining refuges and the fish and
wildlife agency of the States in which the units of the NWRS are
located;
Assist in the maintenance of adequate water quantity and
water quality to fulfill the mission of the NWRS and the purposes of
each refuge;
Recognize compatible wildlife-dependent recreational uses
as the priority general public uses of the NWRS through which the
American public can develop an appreciation for fish and wildlife;
Ensure that opportunities are provided within the NWRS for
compatible wildlife-dependent recreational uses; and
Monitor the status and trends of fish, wildlife, and
plants in each refuge.
The NWRSIA also gave the Service new authority to promulgate
regulations to carry out the NWRSAA.
Several recent Circuit Court decisions have held that this
regulatory authority extends to non-Federal property interests within
refuges. Although these cases did not directly address non-Federal
mineral rights, nothing in these decisions would limit the Service's
regulatory authority with respect to this form of property interest. In
Burlison v. United States (533 F.3d 419 (6th Cir. 2008)), the appeals
court held that the Service may reasonably regulate a reserved easement
within a refuge:
. . . . We do conclude, however, that the Fish and Wildlife
Service may legitimately exercise the sovereign police power of the
federal government in regulating the easement. Section
668dd(d)(1)(B) delegates the power to the Secretary of the Interior
(and the Fish and Wildlife Service) ``under such regulations as he
may prescribe,'' to ``permit the use of . . . any areas within the
System for purposes such as . . . roads.'' The question before us is
whether the permissive power respecting roads authorized by the
Refuge Act also includes the power to regulate a private easement
over a road. We answer this question in the affirmative.
Burlison also relied on the Duncan Energy Co. v. United States
Forest Service, 50 F.3d 584 (8th Cir. 1995), which upheld Federal
regulation of non-Federal oil and gas rights on Forest Service lands.
In School Board of Avoyelles Parish v. United States Department of the
Interior (647 F.3d 570 (5th Cir. 2011)), the Fifth Circuit held that
FWS had authority to regulate access and use of refuge lands under the
NWRAA/NWRSIA even for holders of valid easements. The Court's opinion
notes that the relevant regulation required a permit for ``any person
entering a national wildlife refuge,'' unless otherwise excepted by the
regulations, and found that, even though the owner had a non-Federal
property interest in the land, they were required to obtain a permit
from the Service. The court, citing Burlison and other cases, found
that the restrictions on the exercise of the non-Federal property right
were well within Federal authority under the Property Clause. The
Service fully recognizes, as the Burlison court explained, that the
right to reasonably regulate these private property interests does not
mean that the Service may ``eviscerate'' those property rights. These
decisions support the Service's belief that it does have the necessary
statutory authority to promulgate these proposed rules in order to
achieve its legislative mandates, including the conservation of fish,
wildlife, and plants in their habitat, and ensuring the biological
integrity of the Refuge System.
The Service is aware of the 1986 memorandum by the Associate
Solicitor, Conservation and Wildlife (``1986 Opinion'') that
interpreted that the Service, at that time, lacked the
[[Page 77202]]
authority from Congress to adopt regulations requiring permits for
access by holders of mineral interests that were reserved by the holder
when the land was sold to the United States for refuge purposes, unless
that authority was provided for in the deed. That opinion relied in
part on Caire v. Fulton, 1986 U.S. Dist. LEXIS 31049 (W.D. La. 1986),
an unpublished district court decision, where the United States had
explicitly agreed during eminent domain proceedings to delete from the
proposed deed a provision authorizing Service regulation of the oil and
gas interests not being acquired. Additionally, the 1986 Opinion made a
distinction in the Service's authority to regulate between reserved and
outstanding rights, which Interior recognized in its response to the
2003 GAO report.
The 1986 Opinion was also premised on a provision of the Migratory
Bird Conservation Act (MBCA), 16 U.S.C. 715e, which was amended in 1935
to provide:
The Secretary of the Interior may do all things and make all
expenditures necessary to secure the safe title in the United States
to the areas which may be acquired under this subchapter, but no
payment shall be made for any such areas until the title thereto
shall be satisfactory to the Attorney General or his designee, but
the acquisition of such areas by the United States shall in no case
be defeated because of rights-of-way, easements, and reservations
which from their nature will in the opinion of the Secretary of the
Interior in no manner interfere with the use of the areas so
encumbered for the purposes of this subchapter, but such rights-of-
way, easements, and reservations retained by the grantor or lessor
from whom the United States receives title under this subchapter or
any other Act for the acquisition by the Secretary of the Interior
of areas for wildlife refuges shall be subject to rules and
regulations prescribed by the Secretary of the Interior for the
occupation, use, operation, protection, and administration of such
areas as inviolate sanctuaries for migratory birds or as refuges for
wildlife; and it shall be expressed in the deed or lease that the
use, occupation, and operation of such rights-of-way, easements, and
reservations shall be subordinate to and subject to such rules and
regulations as are set out in such deed or lease or, if deemed
necessary by the Secretary of the Interior, to such rules and
regulations as may be prescribed by him from time to time.
The facts underlying the Caire case have long suggested that it is
of limited precedential value. To the extent it could be construed to
stand for the proposition that the Service may only regulate the
property interest reserved in the deed when the deed expressly provided
for such regulation, the decision appears to be overtaken by that of
the Avoyelles Parish Circuit Court. Moreover, Burlison and Avoyelles
Parish support the exercise of such rulemaking authority without regard
to this provision of the MBCA. So, after consultation with the Office
of the Solicitor of the Department of the Interior, we now believe that
the 1986 Opinion has been superseded by the amendments to the
Administration Act and subsequent court decisions interpreting the
amended act, and that our current regulations from 1960 do not reflect
the full extent of the authorities enacted by Congress after that date
which direct the Service to protect refuge resources and uses.
Therefore, the Service believes it does have the authority to issue
regulations to reasonably regulate both reserved and outstanding non-
Federal oil and gas interests within the NWRS even when the right to
regulate is not stated in the relevant deed. In our review of various
deeds used by the Service to acquire the lands and interests in lands
that make up the NWRS, we find many variations and that it is not
possible to review or summarize all such provisions, or ensure that we
are familiar with the circumstances surrounding each acquisition of
NWRS lands, which did not include the mineral rights. As part of the
pre-application meeting with the Service (see proposed Sec. 29.91),
and/or the submission of an application (see proposed Sec. 29.94), the
applicant should provide the Service with copies of any deeds or other
relevant information which the applicant believes would control or
otherwise limit the applicability of the regulations under this subpart
to the applicant's operations. This process is intended to ensure that
the Service both fully considers relevant deed provisions and any other
information concerning the particular acquisitions before imposing
requirements on the applicant's operations. The Service will respect
any applicable deed conditions; however, these new regulatory
requirements still apply to the extent that they do not conflict with
such deed conditions, which we believe is the situation in most cases.
The Service will consider any comments on its authority to
promulgate these regulations and address them in making its
determinations for a final rule.
Non-Federal Oil and Gas Rights Within Refuges
Non-Federal oil and gas rights exist within the NWRS in situations
where the oil and gas interest has been severed from the estate
acquired by the United States, either because:
The United States acquired property from a grantor that
did not own the oil and gas interest; or
The United States acquired the property from a grantor
that reserved the oil and gas interest from the conveyance.
Non-Federal oil and gas interests can be held by individuals,
partnerships, for-profit corporations, nonprofit organizations, or
States and their political subdivisions. Interests in non-Federal oil
and gas are property rights that may only be taken for public use with
payment of just compensation in accordance with the Fifth Amendment of
the U.S. Constitution. This proposed rule is not intended to result in
the taking of a property interest, but rather to impose reasonable
regulations on activities that involve or affect federally owned lands
and resources of the NWRS to avoid or minimize impacts from such
activities to the maximum extent practicable.
These regulations do not apply to the development of the Federal
mineral estate, including Federal oil and gas, which are administered
by the Bureau of Land Management (BLM), under the Mineral Leasing Act
and the Federal Land Policy and Management Act. In areas where oil and
gas rights are owned by the United States, and leasing is authorized,
the applicable regulations can be found at 43 CFR part 3100. There is a
general prohibition to leasing Federal oil and gas on refuge lands (43
CFR 3101.5-1).
Summary of Potential Impacts From Oil and Gas Operations on Refuge
Resources and Uses
Examples of non-Federal oil and gas operations conducted on refuges
include: Geophysical (seismic) exploration; exploratory well drilling;
field development well drilling; oil and gas well production
operations, including installation and operation of well flowlines and
gathering lines; enhanced recovery operations; well plugging and
abandonment; and site reclamation.
Oil and gas activities have the potential to adversely impact
refuge resources in some or all of the following manners:
Surface water quality degradation from spills, storm water
runoff, erosion, and sedimentation;
Soil and groundwater contamination from existing drilling
mud pits, poorly constructed wells, improperly conducted enhanced
recovery techniques, spills, and leaks;
Air quality degradation from dust, natural gas flaring,
hydrogen sulfide gas,
[[Page 77203]]
and emissions from production operations and vehicles;
Increased noise from seismic operations, blasting,
construction, oil and gas drilling and production operations;
Reduction of roadless areas on refuges;
Noise and human presence effects on wildlife behavior,
breeding, and habitat use;
Disruption of wildlife migration routes;
Adverse effects on sensitive and endangered species;
Viewshed (an area of land, water, or other environmental
element that is visible to the human eye from a fixed vantage point)
intrusion by roads, traffic, drilling equipment, production equipment,
pipelines, etc.;
Night sky intrusion from artificial lighting and gas
flares;
Disturbance to archaeological and cultural resources
associated with seismic exploration and road/site preparation,
associated with maintenance activities, or by spills;
Visitor safety hazards from equipment, pressurized vessels
and lines, presence of hydrogen sulfide gas, and leaking oil and gas
that can create explosion and fire hazards;
Wildlife mortality from oil spills or entrapment in open-
topped tanks or pits, poaching, and vehicle collisions;
Fish kills from oil and oilfield brine spills; and
Vegetation mortality from oilfield brine spills.
Summary of Advance Notice of Proposed Rulemaking Comments
On February 24, 2014, we issued an advance notice of proposed
rulemaking (ANPR) (79 FR 10080) to assist us in developing this
proposed rule. The ANPR had a 60-day comment period, ending April 25,
2014. On June 9, 2014, we reopened the comment period for another 30
days, ending July 9, 2014 (79 FR 32903). The ANPR requested the public
to focus their comments on seven topics identified as major areas of
concern:
(1) Plans of Operations and Special Use Permits;
(2) Operating Standards;
(3) Financial Assurances;
(4) Access Fees;
(5) Noncompliance;
(6) Existing Operations; and
(7) Impacts from the Proposed Rulemaking.
We received comments from unaffiliated private citizens (36),
conservation organizations (14), State agencies (8), counties (2),
Alaska Native Corporations (2), a tribal agency, oil and gas owners and
operators (6), business associations (5), and a Federal agency, along
with almost 80,000 form letter comments from members of two
environmental organizations.
The majority of commenters were in favor of strengthening and
expanding the regulations to better protect refuge resources and
values. Some commenters requested that we not revise the existing
regulations, while others questioned the legality of regulating non-
Federal oil and gas operations on refuges.
More information on the ANPR and these comments is available at
https://www.fws.gov/refuges/oil-and-gas/rulemaking.html and also at
www.regulations.gov at Docket No. FWS-HQ-NWRS-2012-0086.
Draft Environmental Impact Statement
We have prepared a draft environmental impact statement (DEIS),
which is being published for public comment simultaneously with this
proposed rule and is available at www.regulations.gov and at https://www.fws.gov/refuges/oil-and-gas/rulemaking.html, by clicking on the
link titled ``Oil and Gas DEIS.'' The DEIS describes three
alternatives: Alternative A--No action; Alternative B--proposed rule
(preferred alternative); and Alternative C. Alternative C would include
all the proposed changes in Alternative B, would expand the coverage of
the regulations to operations on non-Federal surface locations that
drill beneath the surface of a refuge to access their non-Federal oil
and gas right, and would require all existing operations to obtain
operations permits and maintain financial assurance.
Overview of Proposed Regulations
This proposed rule was developed in coordination with the NPS and
as a result is consistent with its recently published proposed rule
governing non-Federal oil and gas rights within the NPS (NPS 9B
Regulations). An operator working on both NWRS and NPS lands would
experience little difference in regulatory resource and use
protections, regulatory structure based on performance standards,
operations permit processes and requirements, monitoring and
compliance, and other terms and conditions. However, there are some
variations between the two proposed rules necessitated by differing
authorities and missions and the scope of the two agencies' non-Federal
oil and gas programs.
The proposed rule would generally require that operators receive
permits, either special use permits or rights-of-way (ROW) permits, for
new non-Federal oil and gas operations on NWRS lands; provide a
regulatory framework to achieve the necessary protections for refuge
resources; and improve regulatory consistency to the benefit of both
refuge resources and oil and gas operators. The proposed rule contains
performance-based standards that provide flexibility to resource
managers and operators to use various and evolving technologies within
different environments to achieve the standards. It establishes
standards for surface use and site management, specific resource
protections, spill prevention and response, waste management, and
reclamation. Additionally, the proposed rule contains procedures for
permit applications and Service review and approval. Finally, there are
provisions for financial assurance (bonding), access fees, mitigation,
change of operator, permit modification, and prohibitions and
penalties. We incorporated public input received during the ANPR
process to shape the proposed rule.
Proposed Permitting Approach
The proposed permitting process would allow the Service to ensure
that refuge resources, as well as public health and safety, are
protected to the greatest extent practicable. Under the proposed rule,
the Service would require the following:
New operations are by permit only. Operators conducting
new operations or modifying their existing operation in a manner that
will have additional impacts on refuge resources beyond the scope,
intensity, and/or duration of existing impacts must obtain an
operations permit (special use or ROW permit) before commencing new or
modified operations within a refuge. This requirement addresses
exploration, drilling, production, enhanced recovery operations,
transportation, plugging, and reclamation operations. We encourage
operators to contact the Service early in the process so that the
Service can provide suggestions to improve the application.
Additionally, an operator will not be authorized to begin operations
until the operator has received all other required State and Federal
permits.
Operations under an existing Service permit may continue
under the terms of that permit as long as they comply with existing
Federal, State, and local laws and regulations, and the general terms
and conditions outlined in their permit and this rule. Operators would
be required to obtain a new permit or amend their existing permit if
they propose to conduct new operations or modify their existing
operations (i.e., propose activities outside the scope of their
existing approval that would have
[[Page 77204]]
impacts on refuge resources as determined by the Service). At the time
of reclamation, the Service would review existing permits and modify
them as necessary to ensure compliance with all Service reclamation
standards.
Operations not under a Service permit and being conducted
prior to the effective date of the final rule promulgating this
subpart, or prior to a boundary change or establishment of a new refuge
unit, would be considered ``pre-existing operations'' and may continue
to operate as they have been as long as they comply with existing
Federal, State, and local laws and regulations and the general terms
and conditions outlined in this proposed rule. However, these
operations would be required to obtain a permit if they propose to
conduct new operations or modify their operations in a manner that will
have additional impacts on refuge resources.
All operators must have a permit for plugging and
reclamation and comply with all Service reclamation standards.
Wells drilled from outside refuges or on non-Federal
inholdings to access non-Federal minerals would be exempt from these
regulations. However, except where 43 CFR 36.10 controls any access on,
across, or through federally owned or managed lands in Alaska,
operators must comply with the applicable provisions of this subpart,
which may require obtaining an operations permit for new access or
amending an existing authorization for access.
The Service believes that this proposed permitting process is the
best way to manage oil and gas operations and protect refuge resources
on NWRS lands. The most effective way for the Service to avoid or
minimize impacts is by using time, place, and manner stipulations. The
``place'' factor in the ``time, place, and manner'' equation is often
most important in terms of ability to protect an environmental
resource. The risks created by a poorly selected location cannot easily
be overcome with even the best operational methods. Conversely, proper
site selection can do much to mitigate the effects of accidents or
environmentally unsound practices. The ``time'' factor restricts the
timing of operations to remove or minimize impacts on resources that
are only seasonally present. The ``manner'' factor is the method in
which oil and gas activities are conducted, using best management
practices. Therefore, requiring a permit that contains such
stipulations is the most effective way to avoid or minimize impacts of
new operations.
Since new operations create the greatest additional impacts, proper
site planning, timing restrictions, and best management practices can
accomplish great improvements in resource protection. Existing
operations with a special use or ROW permit would be allowed to
continue their operations under the terms of that permit, because such
stipulations have already been implemented in those permits. A permit
requirement on an existing operation not currently under a permit could
result in significant administrative and operational costs, similar to
those of new operations, on both the Service and the operator. These
costs could be disproportional to the environmental benefits gained
where the operator's well has already been drilled and the area of
operations (access route, well site, production facilities, and routes
for gathering lines) has already been established. Many of the
unnecessary impacts occurring from existing operations without permits
can best be cost effectively addressed through ensuring adherence to
existing Federal and State rules. Additionally, in this proposed rule,
the Service would assimilate non-conflicting State oil and gas rules so
that our Law Enforcement officers can ensure compliance with those
requirements. This approach to permitting allows the Service to focus
its limited time and resources on those new operations that create the
highest level of incremental impacts. Also, by requiring all operations
to have a permit for plugging and reclamation, it ensures
rehabilitation of habitat damaged by all operations.
When a well is drilled outside a refuge or on a non-Federal
inholding, impacts to refuge resources are avoided or minimized to a
great extent. Therefore, the Service's approach of exempting downhole
aspects of these operations that occur within a refuge from the
proposed regulations is intended to provide an incentive for operators
to use directional drilling from a surface location not administered by
the Service in order to reach their oil and gas rights under the
refuge-administered surface estate. However, anytime an operator needs
to physically cross Service land for access, including access to a non-
Federal surface location, such as an inholding, to conduct operations
then the operator must comply with the applicable provisions of this
subpart (in Alaska, 43 CFR 36.10), including obtaining an operations
permit for new access or modification of existing access.
Operating Standards
Refuges have sustained significant damages from leaks and spills,
unplugged or inadequately plugged wells, abandoned equipment, and
insufficient or no reclamation of refuge lands and resources. Avoidance
of spills and similar problems is the best means of ensuring that
taxpayers are not left with the costs of restoring refuge resources. By
incorporating new operating standards into the regulations, this should
ensure that any future damages to refuge land and resources are
minimized to the greatest extent possible.
Regulations based on performance-based standards do not grow stale
over time and provide flexibility to resource managers and operators to
achieve standards across various environments using new and evolving
technology. In contrast, prescriptive regulations define specific
requirements of time, place, and manner without considering how these
measures achieve a desired level of resource protection or how they may
apply in different environments. The Service examined other Federal and
State oil and gas regulations and determined that the performance-based
standards approach provided the most efficient means of successfully
avoiding or minimizing the effects of oil and gas operations on refuge
resources and visitor uses. A one-size-fits-all (i.e., prescriptive)
approach does not work due to the widely differing environments and
national extent of refuges with oil and gas. The proposed, performance-
based standards model has been successfully used by NPS for more than
35 years.
In developing and analyzing the proposed rule and alternatives, the
Service found that the preponderance of impacts and risks of impacts to
refuge resources associated with exploration and development of oil and
gas emanate from surface activities. This holds true for operations
that include the use of hydraulic fracturing. The Service found that
well drilling and production operations that include the use of
hydraulic fracturing have the same types of surface activities (e.g.,
road and pad construction, tractor-trailer truck traffic, use of water,
use of chemicals, use of large diesel-powered engines, generation of
waste) as operations that do not include hydraulic fracturing.
Hydraulic fracturing operations can, in some cases, increase the scope,
intensity, and duration of activities commonly associated with oil and
gas well drilling and completion. In context of this proposed rule, the
term ``hydraulic fracturing'' means those
[[Page 77205]]
operations conducted in an individual wellbore designed to increase the
flow of hydrocarbons from the rock formation to the wellbore through
modifying the permeability of reservoir rock by applying fluids under
pressure to fracture it. It does not include the comprehensive list of
all oil and gas activities associated with development that happens to
include hydraulic fracturing. While the proposed rule's operating
standards are not specific to hydraulic fracturing operations, they
were developed with the expectation that hydraulic fracturing would
occur on refuge lands and give the Service the ability to effectively
manage the additional impacts that hydraulic fracturing may have on
refuge resources and uses.
The Service notes that the Bureau of Land Management (BLM) has
recently promulgated regulations addressing hydraulic fracturing on
Federal and Indian lands at 43 CFR part 3160 (80 FR 16128, March 26,
2015). We carefully considered the recently promulgated BLM oil and gas
regulations on hydraulic fracturing. The agencies take different
approaches to operating standards, because of their differing statutory
bases for regulating the exercise of oil and gas rights. Specifically,
the BLM has regulatory authority over the development of the Federal
mineral estate, including Federal oil and gas resources under Federal
and Indian lands. Whereas, the Service regulations address private
property rights within refuge units and are based on the directive of
the NWRSAA for the NWRS ``to administer a national network of lands and
waters for the conservation, management, and where appropriate,
restoration of the fish, wildlife, and plant resources and their
habitats within the United States for the benefit of present and future
generations of Americans.'' Therefore, the Service's regulations are
largely focused on avoiding or minimizing impacts to federally owned
lands and resources of the NWRS to the maximum extent practicable by
using the most technologically feasible, least damaging oil and gas
development methods to protect refuge resources and uses.
As a result, BLM can and has appropriately set more prescriptive
standards in its regulation, while the Service is proposing to set
required non-prescriptive operating standards, similar to the NPS 9B
regulations, which allow operators flexibility to design operations
while still protecting refuge resources, uses, and visitor health and
safety. For example, BLM's regulation at 43 CFR 3162.5-2 (Control of
wells) sets a performance standard with regard to protection of usable
quality water, and BLM also prescribes regulatory measures necessary to
achieve and verify the performance standard (43 CFR 3162.3-3(e)). The
Service's approach is to review an operator's submissions to determine
if they are avoiding or minimizing impacts to the maximum extent
practicable, and if not, to add terms and conditions in the permits to
ensure that they do so.
State Regulations
The Service's goal, reflected in this proposed rule, is to
complement State regulatory programs to the benefit of the surface
estate and the resources for which we are entrusted, while not
compromising the ability of operators to develop their resource. The
Service and State oil and gas agencies have fundamentally different
missions. The Service's legal mandate is to conserve fish, wildlife,
and plant resources and their habitats for the benefit of present and
future generations. In contrast, State oil and gas regulations
typically focus on the protection of mineral rights and
``conservation'' of the oil and gas resources (i.e., minimizing waste
of oil and gas resources). From a regulatory perspective, the Service
must manage oil and gas operations in order to protect its surface
resources to meet its mission and congressional mandate.
Most States provide for protection of surface and groundwater via
well design requirements and oil pollution control measures. However,
State programs vary widely with regard to protection of surface
resources and surface use conflicts. In general, State oil and gas
regulations do not address protections necessary for wildlife and its
habitat. The Service conducted a review of State oil and gas
regulations in 2013. Of the 43 States that have oil and gas
regulations, all have requirements for plugging wells, but few have
adequate requirements for removal of equipment and full reclamation of
the site comparable to Service standards. Some State laws or
regulations address impacts or damage to surface land owners; some do
not. Some afford stronger protection to sensitive areas such as
wildlife management areas; others do not. Some States address the use
and closure of open pits; others do not. Bond requirements, oil spill
cleanup and reporting, and fines differ considerably, as does the
frequency of inspections of oil and gas exploration and production
sites. Therefore, one of the issues that operators face is differing
procedures and requirements from State to State. The proposed
regulations are intended to provide a consistent set of procedures and
operational standards for operations on refuges.
The intention of the Service's proposed regulations is to avoid or
minimize potential procedural and operational duplication of State
programs, while working cooperatively to achieve common objectives
between the Service, States, and operators. For example, the proposed
regulation includes a downhole operating standard for isolation and
protection of subsurface (and surface) resources throughout the life of
a well. The standard would inform the public and operators of the
Service's responsibility for all its resources, including groundwater.
However, the Service generally proposes not to otherwise regulate
downhole activities. We welcome comments on whether, and to what
extent, compliance with State regulations (as a general matter or with
respect to particular States) is expected to provide adequate
protection of groundwater and other subsurface resources. Meeting
operating standards specific to downhole activities, by compliance with
State regulation, industry operating guidelines, or Service-identified
requirements, also serves to protect surface resources by reducing the
risks associated with well control and well construction and
maintenance.
In the context of enforcing State oil and gas regulations, the
Service would focus on noncompliance issues that have the potential to
adversely affect refuge resources and visitor uses by assimilating non-
conflicting State oil and gas law into our prohibited acts and
penalties. Assimilation allows us to enforce on refuges State oil and
gas requirements as a matter of Federal law. States may not have enough
inspectors to ensure companies are meeting State standards. Louisiana,
the State with the most non-Federal oil and gas production on refuge
lands, recently reported that it lacks an adequate number of inspectors
and its inspection rate is too low. Under this proposed rule, the
Service would work cooperatively with States to ensure that operators
on refuges are meeting both Service and State regulations that pertain
to oil and gas operations.
Section-by-Section Analysis
Sec. 28.11 Purpose of Regulations
Proposed Sec. 28.11 would be amended for a technical correction.
Sec. 29.32 Non-Federal Mineral Rights
Proposed Sec. 29.32 would be amended to clarify the scope and
general policy of subpart D.
[[Page 77206]]
Proposed Sec. 29.32(a) clarifies that this section is applicable
to all NWRS non-Federal mineral rights owners within the National
Wildlife Refuge System, excluding coordination areas, as defined in 50
CFR 25.12, and that it is the expectation of the Service that: All
exploration, development, and production operations are conducted in a
manner that avoids or minimizes impacts to refuge resources to the
maximum extent practicable; operators comply with all applicable
Federal and State laws; and all structures and equipment are removed
when no longer necessary and the area restored to pre-operation
conditions to the extent possible. Proposed Sec. 29.32(b) states that
nothing in the section will be applied to contravene or nullify rights
vested in holders of mineral interests on refuge lands.
Sec. Sec. 29.40-29.44 Purpose and Scope
The existing regulations are inadequate to protect the resources
the refuges were created to maintain. The proposed rule would clarify
that the revised regulations will apply to all non-Federal oil and gas
operations conducted on NWRS lands, excluding coordination areas, in
order to protect federally owned or refuge-administered lands, waters,
or wildlife resources; visitor uses or experiences; and visitor and
employee health and safety, as Congress prescribed as the mission of
the NWRS at 16 U.S.C. 668dd(a)(4).
The purpose of proposed Sec. 29.40(a) is to ensure operators use
technologically feasible, least-damaging methods to remove non-Federal
oil and gas resources from the subsurface of NWRS lands in order to
protect and conserve refuge resources. Examples of technologically
feasible, least-damaging methods include, but are not limited to, use
of directionally drilling (slant drilling) to avoid surface impacts to
important habitat, consolidating infrastructure (drilling multiple
wells off a single pad) to reduce fragmentation, use of survey methods
that do not require line of sight, or mat drilling in sensitive
habitats.
Proposed Sec. 29.40(b) provides that subpart D applies to
operators who conduct or propose to conduct non-Federal oil and gas
operations on the Service-administered surface estate of lands held in
fee or less-than fee (excluding coordination areas) as well as to
operations on any waters within the boundaries of the refuge. Because
operations on and in the waters within refuge boundaries have the
potential to broadly impact resources throughout the refuge, we are
proposing that these regulations apply on and within waters subject to
the jurisdiction of the United States located within that unit,
including navigable waters and areas within their ordinary reach (up to
the mean high-water line in places subject to the ebb and flow of the
tide, or up to the ordinary high-water mark in other places that are
navigable), irrespective of ownership of submerged lands, tidelands or
lowlands, and jurisdictional status. Further, we note that Congress
specifically defined the term refuges in the NWRSIA as including
``waters, or an interest in land and waters'' at 16 U.S.C. 668ee(11).
Operations are defined in proposed Sec. 29.50 as ``all existing
and proposed functions, work, and activities in connection with the
exercise of oil or gas rights not owned by the United States and
located or occurring within a refuge. Operations include, but are not
limited to: Access by any means to or from an area of operations;
construction; geological and geophysical exploration; drilling, well
servicing, workover, or recompletion; production; enhanced recovery
operations; gathering (including installation and maintenance of
flowlines and gathering lines); storage, transport, or processing of
petroleum products; earth moving; excavation; hauling; disposal;
surveillance, inspection, monitoring, or maintenance of wells,
facilities, and equipment; reclamation; road and pad building or
improvement; shot hole and well plugging and abandonment, and
reclamation; and all other activities incident to any of the foregoing.
Operations do not include reconnaissance surveys as defined in this
subpart or oil and gas pipelines that are located within a refuge under
authority of a deeded or other right-of-way.''
These regulations are not intended to apply to operations on
neighboring private lands or non-Federal surface estates within refuge
boundaries. As discussed previously, if an operator must physically
cross Service lands, the operator must obtain an operations permit and
comply with other applicable provisions for that access. Use of
aircraft, including, but not limited to, airplanes, helicopters, and
unmanned aircraft vehicles that do not land on, or are not launched
from, refuge-administered surface estate land or waters, is not subject
to these regulations.
Proposed Sec. 29.40(c) of this subpart would acknowledge that the
intent of the proposed rule is to reasonably regulate such activities,
but not to result in a taking of private property. Although we would
place refuge-protecting mitigation measures on proposed operations, the
Service does not intend that implementation of these regulations would
result in a denial of access to prospective operators to exercise their
non-Federal oil and gas rights. We would work with operators to ensure
they have reasonable access to their operations and that refuge
resources and values are protected without resulting in a taking in
violation of the Fifth Amendment of the U.S. Constitution.
Proposed Sec. 29.41 clarifies this subpart applies to operators if
they conduct or propose to conduct a non-Federal oil or gas operation
within a refuge.
Proposed Sec. 29.42 clarifies what authorization is necessary to
conduct operations on NWRS lands. The regulations at Sec. 29.42(a)
would require that all operators must demonstrate ``up front'' that
they hold a valid existing right to conduct operations within a refuge.
Until the operator demonstrates a valid existing right to conduct
operations, the operator may not operate within a refuge and we will
not undertake a formal review of the operator's permit application.
Proposed Sec. 29.42(b) would require operators with a new oil and
gas operation to obtain a temporary access permit to conduct
reconnaissance surveys and/or an operations permit to conduct drilling
or production within a refuge. This permit requirement would ensure
that new operations on NWRS lands use best management practices and are
conducted in a time, place, and manner that avoid or minimize potential
impacts to refuge resources to the maximum extent practicable.
Proposed Sec. 29.42(c) would clarify that for refuge units in
Alaska, access to oil and gas rights within any refuge would continue
to be governed by title XI of the Alaska National Interest Lands
Conservation Act (ANILCA; 16 U.S.C. 410hh-410hh-5, 16 U.S.C. 3101 et
seq., 43 U.S.C. 1601 et seq.), and the Department's implementing
regulations and standards found at 43 CFR part 36 and 50 CFR part 29
subpart B. This includes authorization to charge access fees, as well
as penalties for any violations of permits issued under these
regulations. However, where the proposed rule does not conflict with
these provisions, regulations, and standards, the proposed rule will
apply to operations in Alaska. For example, the operating standards at
proposed Sec. Sec. 29.110-29.118 and the provisions regarding well
plugging at proposed Sec. Sec. 29.180-29.181 would be incorporated
into an operator's ROW permit. Additionally, the prohibited acts and
penalties at proposed Sec. 29.190 would apply where they do not
conflict.
[[Page 77207]]
Proposed Sec. 29.43 would authorize an operator who currently
holds an approved permit to continue operations, subject to the
applicable provisions of that permit, until they propose to conduct new
operations or modify existing operations.
If an operator does not hold an existing special use permit but is
conducting an operation prior to the effective date of the final rule,
proposed Sec. 29.44 would authorize the operator to continue with this
operation in accordance with local, State, and Federal laws and
regulations. However, these operations would need to comply with
proposed Sec. Sec. 29.60 through 29.63, which outline additional
information requirements, prohibitions, and reclamation requirements,
as well as the requirements that, before conducting a new operation or
modifying a pre-existing operation, an operator must obtain an
operations permit in accordance with Sec. Sec. 29.90 through 29.97.
Sec. 29.50 Definitions
The proposed rule would establish and organize definitions for
terms commonly used throughout the regulations.
Sec. Sec. 29.60-29.64 Pre-Existing Operations
Proposed Sec. 29.60 defines pre-existing operations as those being
conducted under local, State, and Federal laws and regulations and
without an approved permit from the Service as of the effective date of
a final rule, or prior to a boundary change or establishment of a new
refuge unit. These operations may continue without an operations permit
subject to the terms and conditions of this section. Proposed
operations that become located within a refuge unit as the result of a
boundary adjustment would be subject to the same process.
Proposed Sec. 29.61(a)-(d) describes the information for pre-
existing operations that would be required to be submitted to the
Service to be in compliance with the rule. For a new oil and gas
operation within a refuge, we would require an operator to submit the
information necessary for us to approve the least-damaging locations
for its access route, drilling site, production facilities, and
gathering lines routes. However, for pre-existing operations, the
operator's well has already been drilled and the area of operations
(access route, well site, production facilities, and routes for
gathering lines) has already been established. Therefore, under
proposed Sec. 29.61, within 90 days of the effective date of a final
rule promulgating this subpart, operators would have to provide the
Service with the information described in this section, including
ownership documentation, contact information, a scaled map clearly
delineating the existing area of operations, and copies of all relevant
plans and permits. This information is needed for future monitoring of
the pre-existing operations to ensure compliance with existing
standards (local, State, Federal).
The proposed regulations at Sec. 29.62(a) would require the
operator to obtain an operations permit if the operator enters a new
phase of operations, such as when an operator ends production
operations and proceeds to well plugging and final reclamation.
Proposed Sec. 29.62(b) would require the operator to obtain an
operations permit if the Service determines that the operator is
modifying a pre-existing operation. Modifying is defined at proposed
Sec. 29.50 as ``conducting new activities that are outside the scope
of your existing operations in a manner that has additional impacts on
refuge resources, visitor uses, refuge administration, or human health
and safety beyond the scope, intensity, and/or duration of existing
impacts. If an operator is considering altering their operation in a
manner that may result in additional impacts to refuge resources, they
should consult with the Service to determine whether proposed changes
would constitute a modification. Examples of a modification include
drilling additional wells from the same pad, creating additional
surface disturbance (e.g., expanding the footprint of a well pad,
realigning a road), or converting a natural gas well into a wastewater
disposal well, as these modifications will have impacts beyond the
scope, intensity, and/or duration of existing impacts. This provision
is not intended to apply to minor actions, such as repositioning of
surface facilities within the current footprint of pre-existing
operations, minor changes in color schemes, or minor, non-routine
maintenance actions.
Proposed Sec. 29.63 ensures that pre-existing operations will be
reclaimed to Service standards at proposed Sec. 29.117(d). Operators
must comply with the proposed reclamation requirements, including
obtaining an operations permit for all reclamation activities.
Under proposed Sec. 29.64, pre-existing operations would have to
comply with the general terms and conditions at proposed Sec. Sec.
29.120 and 29.121, as well as proposed Sec. Sec. 29.170(a) (change of
operator), 29.180-29.181 (well plugging), 29.190 (prohibited acts and
penalties), and 29.200 (appeals). Suspensions would not be necessary if
operators are meeting Service standards.
Sec. Sec. 29.70-29.73 Temporary Access Permits
Proposed Sec. Sec. 29.70-29.73 outline the process to obtain a
temporary access permit. The temporary access permit is a special use
permit that authorizes an operator to conduct reconnaissance surveys.
Proposed Sec. 29.71 identifies the information necessary for the
Service to evaluate the operator's proposal to conduct reconnaissance
surveys. This includes a brief description of intended operations so we
can determine the operator's reconnaissance survey needs. Proposed
Sec. 29.72 describes the process for us to review the operator's
temporary access permit application for completeness. Under proposed
Sec. 29.73, a temporary access permit would be issued for
reconnaissance surveys for a period not to exceed 60 calendar days, but
may be extended for a reasonable additional period when justified by an
operator.
Sec. 29.80 Accessing Oil and Gas Rights From a Non-Federal Surface
Location (Including Inholdings)
As discussed above, operators are exempt from the regulations if
they directionally drill from a non-Federal surface location, including
on non-Federal inholdings, and do not require physical access across
Service lands to reach a bottom hole located within refuge boundaries.
Proposed Sec. 29.80 identifies the information an operator would be
encouraged to submit to the Service to ensure that the Service has the
necessary information to contact operators in case of an emergency or
if unanticipated damages to refuge resources occur. If the operator
needs to physically cross Service land for access to non-Federal lands,
the operator would be required to comply with applicable provisions of
this subpart only for that access, including obtaining an operations
permit for any new access or a modification of existing access.
Sec. Sec. 29.90-29.97 Operations Permit: Application
The proposed regulations require early collaboration in the
planning process to provide operators guidance on information
requirements, alternative areas of operations locations, and potential
mitigation and avoidance measures.
The proposed rule at Sec. Sec. 29.90-29.97 organizes information
requirements for each type of operation. Further discussion of the
specific information proposed to be collected can be found under the
section below, Paperwork Reduction Act of 1995 (PRA).
Proposed Sec. 29.90 would require operators to submit an
operations
[[Page 77208]]
permit application, unless the operator is exempt from those
requirements because they are operating under an existing special use
or ROW permit, they are operating a pre-existing operation, they are
only conducting a reconnaissance survey, or they are drilling from a
private (non-Federal) surface location that is either outside the
refuge boundary or is a surface inholding within the boundary, provided
that no operations associated with the oil and gas right take place on
federally owned or Service-administered surface estate within the
refuge.
Proposed Sec. 29.91 urges operators to have a pre-application
meeting with the Service to allow for an early exchange of information,
including discussion of Service and operator concerns, as well as avoid
delays in the application process. At this meeting, operators are
encouraged to provide information on oil and gas ownership (including
deeds or other relevant information which the applicant believes would
control the applicability of the regulations under this subpart to the
applicant's operations), operation schedules, contact information for
company officials and their contractors, map of the proposed area of
operations, description of access and transportation plans, and a
description of the survey methodology for refuge resources, such as
wildlife or cultural resources.
Proposed Sec. 29.92 clarifies that operators do not need to
include previously submitted information in their operations permit
application, provided such information is on file with the Service,
still current, and accurate. Operators may also submit copies of
documents submitted to other agencies to meet the information
requirements of their operations permit application.
Proposed Sec. 29.93 clarifies that the operator only needs to
submit the information for the operation for which they are seeking
approval.
Proposed Sec. 29.94 lists information requirements common to all
operations, including information about existing conditions of the area
of operations, proposed new surface uses, use of water, management of
waste including flowback fluids from hydraulic fracturing operations,
mitigation actions, alternatives considered, a spill control and
emergency preparedness plan, and proposed reclamation.
Proposed Sec. 29.95 identifies the additional information a
geophysical operator would need to submit to the Service.
Proposed Sec. 29.96 identifies the additional information a
drilling operator would need to submit to the Service.
Proposed Sec. 29.97 identifies the additional information a
production operator would need to submit to the Service.
Sec. Sec. 29.100-29.104 Operations Permit: Application Review
The proposed regulations at Sec. Sec. 29.100-29.104 establish a
two-stage permit application review process (an initial review and a
formal review), provide realistic timeframes to provide notice back to
an operator, and consolidate the final decisions the Service can make
on an operator's permit application.
Proposed Sec. 29.100 provides general information about how the
Service will review an operator's application, which is an initial
review to ensure that information is complete followed by formal
review. Proposed Sec. 29.101 describes the Service's initial review of
an operator's permit application. During initial review, the Service
would determine whether the applicant has supplied all information
necessary for the Service to evaluate the operation's potential effects
to federally owned or administered lands, waters, or resources of
Service units; visitor uses or experiences; or visitor or employee
health and safety. The Service would respond to an applicant within 30
days and state whether the information contained in the permit
application is complete, identify the additional information required
for the application to