§ 3179.202 - Requirements for pneumatic diaphragm pumps.

§ 3179.202 Requirements for pneumatic diaphragm pumps.

(a) A pneumatic diaphragm pump is subject to this section if it:

(1) Uses natural gas produced from a Federal or Indian lease, or from a unit or communitized area that includes a Federal or Indian lease; and

(2) Is not subject to any of the requirements of 40 CFR part 60, subpart OOOOa, but would be subject to that subpart if it were a new, modified or reconstructed source.

(b) An operator is not required to comply with paragraphs (c) through (h), with respect to a pneumatic diaphragm pump or pumps if:

(1) The pump does not vent exhaust gas to the atmosphere; or

(2) The operator submits a Sundry Notice to the BLM documenting that the pump(s) operated on less than 90 individual days in the prior calendar year.

(c) For each pneumatic diaphragm pump subject to this section and within the timeframes set forth in paragraph (h) of this section, the operator must:

(1) Replace the pump with a zero-emissions pump, which may be an electric-powered pump; or

(2) Route the pump exhaust gas to processing equipment for capture and sale.

(d) As an alternative to compliance with paragraph (c), the operator may route the pump exhaust gas to a flare or low pressure combustor device within the timeframes set forth in paragraph (h) of this section, if the operator determines and notifies the BLM through a Sundry Notice that:

(1) Replacing the pump with a zero-emissions pump is not viable because a pneumatic pump is necessary to perform the function required; and

(2) Routing the pump exhaust gas to processing equipment for capture and sale is technically infeasible or unduly costly.

(e) If the operator has met the criteria in paragraph (d) allowing the operator to use the compliance alternative provided in paragraph (d), but the operator has no flare or low pressure combustor device on site, or routing the exhaust gas to such a flare or low pressure combustor device would be technically infeasible, the operator need take no further action to comply with paragraphs (c) through (h).

(f) An operator that is required to replace a pump or route the exhaust gas from a pump to capture or a flare or combustion device under this section, may nonetheless be exempt from such requirement if the operator submits a Sundry Notice to the BLM that provides an economic analysis that demonstrates, and the BLM agrees, based on the information identified in paragraph (g) of this section, that compliance with the provisions of this section would impose such costs as to cause the operator to cease production and abandon significant recoverable oil reserves under the lease.

(g) The Sundry Notice described in paragraph (f) must include the following information:

(1) Well information must include:

(i) The name, number, and location of each well, and the number of the lease, unit, or communitized area with which it is associated; and

(ii) The oil and gas production levels of each of the operator's wells on the lease, unit or communitized area for the most recent production month for which information is available;

(2) Data that show the costs of compliance with paragraphs (c) through (e) of this section on the lease;

(3) The operator must consider the costs and revenues of the combined stream of revenues from both the gas and oil components and provide:

(i) The operator's projections of gas prices, gas production volumes, gas quality (i.e., heating value and H₂S content), revenues derived from gas production, and royalty payments on gas production over the next 15 years or the life of the operator's lease, unit, or communitized area, whichever is less; and

(ii) The operator's projections of oil prices, oil production volumes, costs, revenues, and royalty payments from the operator's oil and gas operations within the lease over the next 15 years or the life of the operator's lease, unit, or communitized area, whichever is less.

(h) The operator must replace the pneumatic diaphragm pump(s) or route the exhaust gas to capture or to a flare or combustion device by January 17, 2019, except that if the operator will comply with paragraph (c) of this section by replacing the pneumatic diaphragm pump with a zero-emission pump and the well or facility that the pneumatic diaphragm pump serves has an estimated remaining productive life of 3 years or less from January 17, 2017, the operator must notify the BLM through a Sundry Notice and replace the pneumatic diaphragm pump no later than 3 years from January 17, 2017.

(i) The operator must ensure its pneumatic diaphragm pumps are functioning within manufacturers' specifications.

[81 FR 83078, Nov. 18, 2016, as amended at 82 FR 58073, Dec. 8, 2017]