§ 3179.303 - Leak detection inspection requirements for natural gas wellhead equipment and other equipment.

§ 3179.303 Leak detection inspection requirements for natural gas wellhead equipment and other equipment.

(a) Except as provided below or otherwise authorized in paragraph (b) of this section, the operator must inspect leak components located on and around the equipment identified in § 3179.301(a) of this subpart for leaks using a leak detection device listed under § 3179.302 according to the following parameters:

(1) The operator must inspect each site at least semi-annually, and consecutive semiannual inspections must be conducted at least 4 months apart; and

(2) The operator must inspect each compressor station at least quarterly, and consecutive quarterly inspections must be conducted at least 60 days apart.

(b) The BLM may approve an operator's request to use an alternative instrument-based leak detection program, in lieu of compliance with the requirements of § 3179.303(a), if the BLM finds that the alternative program would achieve equal or greater reduction of gas lost through leaks compared with the approach specified in §§ 3179.302(a)(1) and 3179.303(a) of this subpart. The operator must submit its request for an alternative leak detection program through a Sundry Notice that includes the following information:

(1) A detailed description of the alternative leak detection program, including how it will use one or more of the instruments specified in or approved under § 3179.302(a) and an identification of the specific instruments, methods and/or practices that would substitute for specific elements of the approach specified in §§ 3179.302(a) and 3179.303(a);

(2) The proposed monitoring protocol;

(3) Records and data from laboratory and field testing, including, but not limited to, performance testing, to the extent relevant;

(4) A demonstration that the proposed alternative leak detection program will achieve equal or greater reduction of gas lost through leaks compared to compliance with the requirements specified in §§ 3179.302(a) and 3179.303(a);

(5) A detailed description of how the operator will track and document its procedures, leaks found, and leaks repaired; and

(6) Proposed limitations on types of sites or other conditions on deployment of the alternative leak detection program.

(c) If the operator demonstrates, and the BLM agrees, that compliance with the requirements of §§ 3179.301-305, including the option for compliance with an alternative leak detection program under § 3179.303(b) would impose such costs as to cause the operator to cease production and abandon significant recoverable oil or gas reserves under the lease, the BLM may approve an alternative leak detection program for that operator that does not meet the criterion specified in § 3179.303(b)(4), but is as effective as possible consistent with not causing the operator to cease production and abandon significant recoverable oil or gas reserves under the lease.

(d) To support a demonstration under paragraph (c) of this section, the operator must submit a Sundry Notice that includes the following information:

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

(2) 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;

(3) Data that show the costs of compliance on the lease with the requirements of §§ 3179.301-305 and with an alternative leak detection program that meets the requirements of § 3179.303(b);

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

(5) The information required under § 3179.303(b), except that in lieu of the demonstration required under § 3179.303(b)(4), the operator must demonstrate that the alternative program is as effective as possible, consistent with not imposing such costs as to cause the operator to cease production and abandon significant recoverable oil or gas reserves under the lease.

(e) For any BLM approval of an operator's use of an alternative leak detection program under subparagraph (b) or (c) of this section, the BLM will post online the alternative program approved for that operator, including, at minimum, the information required in subparagraph (b)(1), (b)(2), (b)(5), and (b)(6) of this section.