Waste Prevention, Production Subject to Royalties, and Resource Conservation, 92602-92606 [2024-27333]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Land Management

[Federal Register Volume 89, Number 226 (Friday, November 22, 2024)]
[Rules and Regulations]
[Pages 92602-92606]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-27333]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Part 3170

[BLM_HQ_FRN_MO4500181705]
RIN 1004-AF01


Waste Prevention, Production Subject to Royalties, and Resource 
Conservation

AGENCY: Bureau of Land Management, Interior.

ACTION: Direct final rule.

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

SUMMARY: On April 10, 2024, the Bureau of Land Management (BLM) 
published a final rule that aims to reduce the waste of natural gas 
from venting, flaring, and leaks during oil and gas production 
activities on Federal and Indian leases. This direct final rule 
corrects technical errors in that final rule, including revisions to 
equations for consistency with, or to better reflect, the regulatory 
text. It separately lists definitions of the variables for those 
equations for increased clarity. It also corrects typographical errors 
and makes minor re-arrangements of provisions for better clarity.

DATES: This direct final rule is effective on December 23, 2024, 
without further notice, unless the BLM receives significant adverse 
comment by December 23, 2024. If the BLM receives a significant adverse 
comment that leads it to conclude that the rule is controversial, the 
BLM will publish a timely withdrawal of this direct final rule in the 
Federal Register and the technical corrections described in this direct 
final rule will not go into effect. The incorporation by reference of 
certain material listed in the rule was approved by the Director of the 
Federal Register as of June 10, 2024.

ADDRESSES: 
    Mail, personal, or messenger delivery: U.S. Department of the 
Interior, Director (630), Bureau of Land Management, 1849 C St. NW, 
Room 5646, Washington, DC 20240, Attention: 1004-AF01.
    Federal eRulemaking Portal: https://www.regulations.gov. In the 
Searchbox, enter ``RIN 1004-AF01'' and click the ``Search'' button. 
Follow the instructions at this website.

FOR FURTHER INFORMATION CONTACT: John Ajak, Acting Division Chief, 
Division of Fluid Minerals at 505-549-9654 or [email protected] for 
information about the final rule. Please use ``RIN 1004-AF01'' in the 
subject line.
    Individuals in the United States who are deaf, deafblind, hard of 
hearing, or have a speech disability may dial 711 (TTY, TDD, or 
TeleBraille) to access telecommunications relay services. Individuals 
outside the United States should use the relay services offered within 
their country to make international calls to the point-of-contact in 
the United States.
    For a short, plain language summary of the direct final rule, 
please see the direct final rule summary document in docket BLM-2024-
0001 on www.regulations.gov.

SUPPLEMENTARY INFORMATION: 

I. Background

    This direct final rule corrects technical errors in 43 CFR subpart 
3179 of the final rule that published in the Federal Register on April 
10, 2024 (89 FR 25378), entitled, ``Waste Prevention, Production 
Subject to Royalties, and Resource Conservation'' (Waste Prevention 
rule). The Waste Prevention rule established various measures to reduce 
waste of natural gas from onshore Federal and Indian oil and gas 
leases, including measures that are intended to ensure that, when such 
gas is wasted, the public or Indian mineral owners are compensated for 
that gas through royalty payments. To assist in meeting these 
objectives, Sec.  3179.71(b) requires operators to measure flared gas 
for high-pressure flares for volumes greater than 1,050 Mcf per month 
above the averaging period (as defined in 43 CFR 3170.3). The Waste 
Prevention rule also sets out, in Sec.  3179.71(g) and (h), three 
equations intended to be used by operators when reporting or allocating 
flared gas. In addition, the Waste Prevention rule established a Leak 
Detection and Repair (LDAR) program for production facilities located 
on Federal or Indian surface estates.
    API 22.3 is referenced in the amendatory text of this document and 
was previously approved for Sec.  3179.71.

II. Direct Final Rulemaking

    The BLM is publishing corrections to the Waste Prevention rule as a 
direct final rule. This rule merely corrects inadvertent errors that 
would otherwise cause unnecessary confusion for the operators 
attempting to comply with the reporting requirements of the Waste 
Prevention rule, but does not impose new requirements. None of the 
changes are inconsistent with the BLM's explanation of the Waste 
Prevention rule in its preamble. Therefore, the Department of the 
Interior has determined that it is appropriate for this rule to go into 
effect at the close of a 30-day comment period unless BLM receives a 
significant adverse comment.
    A significant adverse comment is one that explains: (1) why the 
rule is inappropriate, including challenges to the rule's underlying 
premise or approach; or (2) why the direct final rule will be 
ineffective or unacceptable without additional changes. After the 30-
day comment period closes, the BLM will assess whether any of the 
comments received qualify as a significant adverse comment. If the BLM 
finds that there is a significant adverse comment, then it will 
withdraw this direct final rule. If no such comment is received, this 
direct final rule will become effective on December 23, 2024, without 
further BLM action. The BLM will not consider a comment recommending an 
addition to the rule to be significant or adverse unless the comment 
explains how this direct final rule would be ineffective without 
additional change. Aside from the technical corrections described in 
this direct final rule, this rule does not affect the Waste Prevention 
rule.

III. Discussion

    The BLM is making technical corrections to Equations 2 and 3 in 
Sec.  3179.71, as further discussed below. In addition, the BLM is 
restyling Equation 1 by moving the value to be determined from the 
right side of the equal sign to the left, in keeping with mathematical 
convention. In addition, for clarity, the rule as now corrected 
separately lists the variable definitions for each equation (in the 
final rule, the variable definitions for Equations 1 and 2 were 
combined in a single list). This rule also adds clarifying language in 
Sec.  3179.71(b) and (g) and removes unintended and unworkable 
references to low-pressure flare volumes, discussed below, and

[[Page 92603]]

corrects typographical errors, such as in Sec.  3179.2(a) (removing a 
second unintended instance of the word ``provide'') and in Sec.  
3179.71(b) (correcting the reference to paragraph (h) so that it refers 
instead to the intended paragraph (g)).
    In response to public comment on the proposed rule and based on 
further consideration, the BLM included equations in Sec.  3179.71(g) 
and (h) of the final Waste Prevention rule to guide operators in 
reporting estimated volumes of flared gas. The BLM included Equations 1 
and 2 in paragraph (g) for operators to use in estimating the flared 
volumes for high-pressure flares measuring less than 1,050 Mcf per 
month. The BLM included Equation 3 in paragraph (h) to assist operators 
in allocating flared volumes when gas from multiple leases, unit 
participating areas (unit PAs), or communitization areas (CAs) is 
commingled and then measured at a single flare, as authorized in Sec.  
3179.71(a).
    Following publication of the final rule, the BLM received questions 
from several industry groups. One group observed that Equation 2 does 
not account for the on-lease use of gas when accounting for the 
disposition of the total gas produced, contrary to the Waste Prevention 
rule preamble acknowledgment that ``[t]he BLM authorizes royalty-free 
use of lease production for operations and production purposes, 
including placing oil or gas in marketable condition.'' 89 FR 25420 
(emphasis added). Equation 2 calculates total gas produced by 
multiplying total oil produced by the gas-to-oil ratio, which is 
derived from operator-submitted Oil and Gas Operations Reports (OGORs) 
over a 6-month period (Equation 1). The equation in the April 10 rule 
would calculate the total volume of gas produced and then subtract the 
volume of gas sold to arrive at the total flared volume. The BLM agrees 
that Equation 2 in the Waste Prevention rule inadvertently omitted a 
variable for straightforward recognition of deductions for gas used on-
lease (VLU) that is necessary to put the product in 
marketable condition. This rule corrects that inadvertent omission.
    Equation 3 allocates total flared volume from a commingled high-
pressure flare to individual leases, unit PAs, or CAs that send gas to 
a common flare. The Waste Prevention rule provided in Sec.  3179(h) 
that the allocation is to be ``based on the oil production while 
flaring.'' Because of an error in Equation 3, however, that equation 
uses the volume of oil sold, commonly referred to as net standard 
volume (NSV). The BLM is correcting that typographical error in this 
final rule. As corrected, Equation 3 allocates the flared volume based 
on the total volume of oil produced (Vopi), which is 
consistent with the text of paragraph (h).
    In the Waste Prevention rule, Sec.  3179.71(g) would apply when, 
``the flared volume for a high-pressure flare is less than or equal to 
1,050 Mcf per month,'' instead of simply ``less than,'' as the BLM 
intended and as reflected in Table 1 to Sec.  3179.71(f). The BLM is 
correcting this typographical error by removing the reference to ``or 
equal to'' in Sec.  3179.71(g).
    In Sec.  3179.71(g) of the Waste Prevention rule, the BLM required 
estimation of low-pressure flare volumes based on Equations 1 and 2. 
Industry representatives, however, correctly pointed out that Equations 
1 and 2 do not work for low-pressure flare volumes. The inclusion of 
``and for low-pressure flares'' in the first sentence of Sec.  
3179.71(g) was therefore a mistake and would require operators to use 
inappropriate formulas to estimate low-pressure flare volumes. The 
preamble to the Waste Prevention rule discussing Sec.  3179.71 did not 
mention calculating low-pressure flare volumes, see 89 FR 25413 through 
25415, and neither did the proposed rule. Generally, low-pressure 
flares combust tank vapors that lack sufficient pressure to enter the 
sales line, so, under Sec.  3179.41(b)(7), normal operating losses from 
oil storage tanks are unavoidable losses and thus are not subject to 
royalty obligations. Because low-pressure flare volumes are also 
normally small in volume, and difficult to measure, there are several 
industry-accepted methods operators may use in estimating and reporting 
low-pressure flare volumes on the OGOR. For these reasons, this rule 
clarifies that the requirements in Sec.  3179.71(g) apply to high-
pressure flares, and the first sentence now states, ``For high-pressure 
flares with volumes less than 1,050 Mcf per month, the flared volume 
may be estimated, or measured.''
    The BLM is also correcting a typographical error in Sec.  
3179.71(b). That section--which currently requires operators to 
``measure flared gas for high-pressure flares for volumes greater than 
1,050 Mcf per month above the averaging period''--inadvertently omitted 
the words ``or equal to'' after ``greater.'' The correct phrasing 
appears in Table 1 to Sec.  3179.71(f) and is referenced twice in the 
final rule's preamble. See 89 FR 25413 (``requiring measurement on 
flared volumes less than 1,050 Mcf per month over the averaging period 
would encompass flaring operations that would meet the BLM's emergency 
criteria''); id. at 89 FR 25413 (``The study[ ] . . . supports the 
final rule requirement to measure high-pressure flares with volumes 
greater than or equal to 1,050 Mcf per month over the averaging 
period'').
    This direct final rule also corrects ``above the averaging period'' 
in Sec.  3179.71(b) to read ``over the averaging period,'' as BLM 
intended. There is no substantive difference, but ``over'' is a more 
standard expression (as in the above-quoted Waste Prevention rule 
preamble) and should prevent any confusion.
    There are two other inadvertent errors in Sec.  3179.71(b). The 
Waste Prevention rule provided that ``operators may estimate the volume 
flared, as described in paragraph (h) of this section.'' Paragraph (h), 
however, applies to combusting gas that is combined across multiple 
units, unit PAs, or CAs. Paragraph (h) and its Equation 3 make no sense 
for operators who are not combining gas for flaring. The intended 
reference in paragraph (b) was to paragraph (g), and this direct final 
rule corrects that typographical error.
    A second inadvertent error in Sec.  3179.71(b) is that it 
encourages operators to estimate volumes of low-pressure flaring, as 
provided in paragraph (g). For the reasons discussed above, paragraph 
(g) and its Equations 1 and 2 are not appropriate or intended for use 
in estimating low-pressure flare volumes. Accordingly, the BLM is 
removing the inadvertent language. The corrected second sentence in 
Sec.  3179(b) now states, ``For high-pressure flares measuring less 
than 1,050 Mcf per month over the averaging period, operators may 
estimate the volume flared, as described in paragraph (g) of this 
section,''
    In this direct final rule, the BLM also adds the full wording for 
the acronym AVO, which stands for Audio-Visual-Olfactory, in Sec.  
3179.100(b)(2)(i). The AVO acronym appears in the List of Acronyms (81 
FR 25328) in the Waste Prevention rule preamble. However, the AVO 
acronym explanation does not appear within the regulatory text. For 
clarity, this final rule will add the AVO acronym explanation to Sec.  
3179.100(b)(2)(i) to read, ``Well pads with only wellheads and no 
production equipment or storage must include quarterly Audio-Visual-
Olfactory (AVO) inspections for leak detection.'' This change is not 
substantive and only provides further clarity for a reader who does not 
have access to the preamble with its List of Acronyms.

[[Page 92604]]

IV. Procedural Matters

A. Regulatory Planning and Review (Executive Order (E.O.) 12866, E.O. 
13563)

    E.O. 12866, as amended by E.O. 14094, provides that the Office of 
Information and Regulatory Affairs (OIRA) in the Office of Management 
and Budget (OMB) will review all significant rules. OIRA has determined 
that this rule is not significant.
    E.O. 13563 reaffirms the principles of E.O. 12866, as amended by 
E.O. 14094, while calling for improvements in the Nation's regulatory 
system to promote predictability, reduce uncertainty, and use the best, 
most innovative, and least burdensome tools for achieving regulatory 
ends. E.O. 13563 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. E.O.13563 emphasizes further 
that agencies must base regulations on the best available science and 
that the rulemaking process must allow for public participation and an 
open exchange of ideas. The BLM developed this rule in a manner 
consistent with those requirements.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA, 5 U.S.C. 601-612) requires an 
agency to prepare a regulatory flexibility analysis for all rules 
unless the agency certifies that the rule will not have a significant 
economic impact on a substantial number of small entities. The RFA 
applies only to rules for which an agency is required to first publish 
a proposed rule. See 5 U.S.C. 603(a) and 604(a). As the BLM is not 
required to publish a notice of proposed rulemaking for this direct 
final rule, the RFA does not apply.

C. Congressional Review Act

    This rule is not a major rule under the Congressional Review Act, 5 
U.S.C. 804(2). Specifically, the direct final rule: (a) will not have 
an annual effect on the economy of $100 million or more; (b) will not 
cause a major increase in costs or prices for consumers, individual 
industries, Federal, State, or local government agencies, or geographic 
regions; and (c) will not have significant adverse effects on 
competition, employment, investment, productivity, innovation, or on 
the ability of United States-based enterprises to compete with foreign-
based enterprises in domestic and export markets.
Regulatory or Economic Impacts
    This direct final rule only corrects errors and provides 
consistency and clarity to the April 10 rule. The changes neither 
create new requirements nor eliminate substantive requirements from the 
Waste Prevention rule. Therefore, the regulatory impacts are unchanged 
from those analyzed for the Waste Prevention rule, and there is no need 
for a separate regulatory impact analysis for this rule.

D. Unfunded Mandates Reform Act

    This rule does not impose an unfunded mandate on State, local, or 
Tribal governments, or the private sector, of more than $100 million 
per year. The rule does not have a significant or unique effect on 
State, local, or Tribal governments, or the private sector. The rule 
merely corrects inadvertent errors in the Waste Prevention rule and 
other potential sources of confusion. Therefore, a statement containing 
the information required by the Unfunded Mandates Reform Act (2 U.S.C. 
1531 et seq.) is not required.

E. Takings (E.O. 12630)

    This rule does not result in a taking of private property or 
otherwise have regulatory takings implications under E.O. 12630. The 
rule primarily corrects inadvertent errors and sources of confusion in 
the Waste Prevention rule without substantive change; therefore, the 
rule will not result in private property being taken for public use 
without just compensation. A takings implication assessment is not 
required.

F. Federalism (E.O. 13132)

    Under the criteria of section 1 of E.O. 13132, this rule does not 
have sufficient federalism implications to warrant the preparation of a 
federalism summary impact statement. This rule will not have 
substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government. A 
federalism summary impact statement is not required.

G. Civil Justice Reform (E.O. 12988)

    This direct final rule complies with the requirements of E.O. 
12988. Among other things, 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;
    (b) Meets the criteria of section 3(b)(2) requiring that all 
regulations be written in clear language and contain clear legal 
standards.

H. Consultation With Indian Tribes (E.O. 13175 and Departmental Policy)

    The Department of the Interior strives to strengthen its 
government-to-government relationship with Indian Tribes through a 
commitment to consultation with Tribes and recognition of their right 
to self-governance and Tribal sovereignty. The BLM evaluated this 
direct final rule under E.O. 13175 and the Department's and the BLM's 
consultation policies and determined that it has no substantial direct 
effects on federally recognized Indian Tribes and that consultation 
under the Tribal consultation policies is not required. The rule merely 
revises the BLM's regulation to correct inadvertent errors and other 
potential sources of confusion.

I. Paperwork Reduction Act (44 U.S.C. 3501 et seq.)

    This rule does not impose any new information collection burden 
under the Paperwork Reduction Act. OMB previously approved the 
information collection activities contained in the April 10 rule and 
assigned OMB control number 1004-0211. This rule does not impose an 
information collection burden because the BLM is only clarifying, not 
increasing, the information collection requirements.

J. National Environmental Policy Act

    This direct final rule does not constitute a major Federal action 
significantly affecting the quality of the human environment. A 
detailed statement under the National Environmental Policy Act (NEPA, 
42 U.S.C. 4321 et seq.) is not required because this rule is covered by 
a categorical exclusion applicable to regulatory functions ``that are 
of an administrative, financial, legal, technical, or procedural 
nature.'' 43 CFR 46.210(i). In addition, the BLM has determined that 
this rule does not involve any of the extraordinary circumstances 
listed in 43 CFR 46.215 that would require further analysis under NEPA.

K. Effects on the Energy Supply (E.O. 13211)

    This direct final rule is not a significant energy action as 
defined in E.O. 13211. Therefore, a Statement of Energy Effects is not 
required.

List of Subjects in 43 CFR Part 3170

    Administrative practice and procedure, Flaring, Immediate 
assessments, Incorporation by reference,

[[Page 92605]]

Indians--lands, Mineral royalties, Oil and gas exploration, Oil and gas 
measurement, Public lands--mineral resources, Reporting and record 
keeping requirements, Royalty-free use, Venting.

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

PART 3170--ONSHORE OIL AND GAS PRODUCTION

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

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


0
2. In Sec.  3179.2, revise paragraph (a) introductory text to read as 
follows:


Sec.  3179.2  Scope.

    (a) Except as provided in paragraph (b), this subpart applies to:
* * * * *

0
3. Revise Sec.  3179.71 to read as follows:


Sec.  3179.71  Measurement of flared oil-well gas volume.

    (a) The operator may commingle flared gas from more than one lease, 
unit PA, or CA to a common high-pressure flare without BLM approval, 
subject to the allocation requirement in paragraph (h). The site 
facility diagram required under Sec.  3173.11 must indicate that the 
high-pressure flare is a common, commingled flare and list the leases, 
unit PAs, or CAs contributing gas to the common flare.
    (b) The operator must measure flared gas for high-pressure flares 
for volumes greater than or equal to 1,050 Mcf per month over the 
averaging period. For high-pressure flares measuring less than 1,050 
Mcf per month over the averaging period, operators may estimate the 
volume flared, as described in paragraph (g) of this section.
    (c) High-pressure flares requiring measurement must use either 
orifice plates and orifice meter tubes, or ultrasonic meters. High-
pressure flare measurement systems must meet the following 
requirements:
    (1) Orifice metering systems must comply with the low-volume 
measurement requirements in Sec.  3175.80, low-volume electronic gas 
measurement requirements in Sec.  3175.100, and the low-volume gas 
sampling and analysis requirements in Sec.  3175.110 with the gas 
sampling location requirements provided in paragraph (d) or (e) of this 
section.
    (2) Ultrasonic metering systems must comply with the following 
requirements:
    (i) Each ultrasonic meter make and model must be tested for flare 
use. Flare gas meter testing must be conducted and reported pursuant to 
API 22.3 (incorporated by reference, see Sec.  3179.30) and results 
must be made available to the AO upon request.
    (ii) Ultrasonic meters must be installed and operated for flare use 
according to the manufacturer's specifications and those specifications 
must be provided to the AO upon request.
    (iii) Ultrasonic metering systems must comply with the low-volume 
electronic gas measurement requirements in Sec.  3175.100, and the low-
volume gas sampling analysis requirements in Sec.  3175.110, except for 
the gas sampling requirements in paragraph (d) or (e) of this section.
    (3) Operators must evaluate the production facility to determine 
which type of flare measurement is safe for the facility.
    (d) The gas sample must be taken from one of the following 
locations when the high-pressure flare is measuring a single lease, 
unit PA, or CA:
    (1) At the flare meter;
    (2) At the gas FMP, if there is a gas FMP at the well site and the 
gas composition is the same as that of the flare-meter gas; or
    (3) At another location approved by the AO with a Sundry Notice 
submission.
    (e) The gas sample must be taken from one of the following 
locations for a common high-pressure flare that measures more than one 
lease, unit PA, or CA;
    (1) At the flare meter; or
    (2) At another location approved by the AO with a Sundry Notice 
submission.
    (f) Appropriate meters must be installed at all high-pressure 
flares pursuant to paragraph (c) of this section, and gas sampling must 
be taken from the appropriate location pursuant to paragraph (d) or (e) 
of this section according to the following phase-in timeline:

  Table 1 to Paragraph (f)--Deadline for Compliance With High-Pressure
              Flare Measurement, and Gas Sampling Location
------------------------------------------------------------------------
                                    Deadline for measurement compliance
       Flare flow category            for high-pressure flares and gas
                                             sampling location
------------------------------------------------------------------------
>=30,000 Mcf per month...........  December 10, 2024.
<30,000 Mcf per month and >=6,000  June 10, 2025.
 Mcf per month.
<6,000 Mcf per month and >=1,050   December 10, 2025.
 Mcf per month.
<1,050 Mcf per month.............  Not applicable.
------------------------------------------------------------------------

    (g) For high-pressure flares with volumes less than 1,050 Mcf per 
month, the flared volume may be estimated, or measured. Estimated 
flared gas volumes must be based on production reported on the ONRR 
OGORs over the previous 6 months and calculated as follows:

Equation 1 to Paragraph (g)
[GRAPHIC] [TIFF OMITTED] TR22NO24.000

Where:

GORr = The gas-to-oil ratio for the previous 6 months of 
production as reported on the OGOR
m = The previous 6 months of flaring
Vg = The total volume of gas produced from oil wells in 
the previous 6 months as reported on the OGOR
Vo = The total volume of oil produced from oil wells in 
the previous 6 months as reported on the OGOR

Equation 2 to Paragraph (g)

Vf = (Vop x GORr)-VLU-Vs

Where:

Vf  = The estimated gas flared from oil wells to be reported on the 
OGOR

[[Page 92606]]

Vop = The total oil produced from oil wells while flaring
GORr = The gas-to-oil ratio for the previous 6 months of production 
as calculated from Equation 1 to Paragraph (g) using volumes 
reported on the OGOR
VLU = The total gas used on lease, unit PA, or CA 
pursuant to subpart 3178
Vs = The total gas volume produced and sent through a gas FMP from 
oil wells while flaring

    (h) If a flare is combusting gas that is combined across multiple 
leases, unit PAs, or CAs, the operator may measure the gas at a single 
point at the flare and allocate flared volumes based on the oil 
production while flaring from each lease, unit PA, or CA as follows:

Equation 3 to Paragraph (h)
[GRAPHIC] [TIFF OMITTED] TR22NO24.001

Where:

n = The total number of leases, unit PAs, or CAs sending gas to a 
common flare
VFi = The volume flared from the ith lease, unit PA, or 
CA sent to a common flare
VFt = The total volume flared from a common flare
Vopi = The total volume of oil produced from oil wells on 
the ith lease, unit PA, or CA while flaring

    (i) Measurement points for flared volumes are not FMPs for the 
purposes of subpart 3175.

0
4. Revise Sec.  3179.100 to read as follows:


Sec.  3179.100  Leak detection and repair program.

    (a) Pursuant to paragraph (b) of this section, the operator must 
maintain a BLM administrative statewide LDAR program designed to 
prevent the waste of Federal or Indian gas.
    (b) Operators must submit a statewide LDAR program to the BLM state 
office with jurisdiction over the production for review. The LDAR 
program must cover operations and production equipment located on a 
Federal or Indian oil and gas lease and not operations and production 
equipment located on State or private tracts, even though those tracts 
are committed to a federally approved unit PA or CA. When there is a 
change of operator, the new operator must update the LDAR program on 
the annual update and revision timeline. Operators must submit the LDAR 
program in writing for review until such time as the BLM's electronic 
filing system is capable of receiving LDAR program submissions. At 
minimum, the LDAR program must contain the following information, as 
applicable:
    (1) Identification of the leases, unit PAs, CAs by geographic State 
for all States within BLM's administrative State boundaries to which 
the LDAR program applies; and
    (2) Identification of the method and frequency of leak detection 
inspection used at the lease, unit PA, or CA. Acceptable methods, as 
well as other methods approved by the BLM, and frequency include the 
following:
    (i) Well pads with only wellheads and no production equipment or 
storage must include quarterly Audio-Visual-Olfactory (AVO) inspections 
for leak detection;
    (ii) Well pads with any production and processing equipment and oil 
storage must include AVO inspections every other month and quarterly 
optical gas imaging for leak detection; and
    (iii) Other leak detection inspection methods and frequency 
acceptable to the BLM (e.g., continuous monitoring).
    (3) Identification of the operator's recordkeeping process for leak 
detection and repair pursuant to Sec.  3179.102.
    (c) The BLM will review the operator's LDAR program and notify the 
operator if the BLM deems the program to be inadequate. The 
notification will explain the basis for the BLM's determination, 
identify the plan's inadequacies, describe any additional measures that 
could address the inadequacies, and provide a reasonable time frame in 
which the operator must submit a revised LDAR program to the BLM for 
review.
    (d) For leases in effect on June 10, 2024, the operator must submit 
a statewide LDAR program to the state office no later than December 10, 
2025.
    (e) Operators must review and update submitted LDAR programs on an 
annual basis in the month in which the operator submitted the first 
LDAR program to ensure the identified leases, unit PAs, and CAs, leak 
detection methods, and frequency of inspections are current. If the 
operator's LDAR program requires no changes, then the operator must 
notify the BLM state office that the LDAR program submitted and 
reviewed by the BLM remains in effect. Any updates to the LDAR program 
must be submitted in writing to the BLM state office for review until 
such time as the BLM's electronic system is capable of receiving the 
annual LDAR updates.

Delegation of Signing Authority

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

Steven H. Feldgus,
Principal Deputy Assistant Secretary, Land and Minerals Management.
[FR Doc. 2024-27333 Filed 11-21-24; 8:45 am]
BILLING CODE 4331-29-P