[Federal Register Volume 59, Number 4 (Thursday, January 6, 1994)]
[Proposed Rules]
[Pages 718-725]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-149]
[[Page Unknown]]
[Federal Register: January 6, 1994]
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DEPARTMENT OF THE INTERIOR
Bureau of Land Management
43 CFR Part 3160
[WO-610-4111-02-24 1A]
RIN 1004-AB22
Onshore Oil and Gas Operations, Federal and Indian Oil and Gas
Leases; Onshore Oil and Gas Order No. 5, Measurement of Gas
AGENCY: Bureau of Land Management, Interior.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would revise Onshore Oil and Gas Order No.
5 under 43 CFR 3164.1, originally issued February 24, 1989 (54 FR
8100), and made effective March 27, 1989, for new facilities, August
23, 1989, for existing facilities measuring 200 thousand cubic feet
(Mcf) or more per day of gas, and February 26, 1990, for existing
facilities producing less than 200 Mcf per day of gas. This proposed
revision would reorganize the Order to make it more logical in
sequence, remove unnecessary provisions, resolve internal
inconsistencies discovered in the Order, and clarify certain
provisions. These changes are based on several years of experience
implementing the Order, and on suggestions from the public.
DATES: Comments should be submitted by March 7, 1994. Comments received
or postmarked after the above date may not be considered in the
decisionmaking process on the final rule.
ADDRESSES: Comments should be sent to: Director (140), Bureau of Land
Management, Room 5555, Main Interior Building, 1849 C Street, N.W.,
Washington, D.C. 20240. Comments will be available for public review at
the above address during regular business hours (7:45 a.m. to 4:15
p.m.), Monday through Friday.
FOR FURTHER INFORMATION CONTACT: Lonny R. Bagley, (406) 255-2847.
SUPPLEMENTARY INFORMATION: Order No. 5, Measurement of Gas, implements
and supplements requirements found in 43 CFR Part 3160 relating to the
measurement of gas produced under the terms of Federal and Indian
(except Osage) oil and gas leases, as well as gas produced from State
or privately owned lands when Federal and/or Indian leases receive a
share of such production under the terms of an approved agreement. The
Order addresses gas measurement by orifice meter and gas measurement by
other methods acceptable to the authorized officer of the Bureau of
Land Management (BLM). Gas measurement by electronic flow computers,
utilizing an orifice, which calculate volume using the equations
specified by the American Gas Association (AGA) Committee Report No. 3,
may be implemented without prior approval if the minimum standards
outlined in the Order are adhered to.
Several years of experience implementing the Order have revealed
some areas where the organization of the Order can be improved, and
certain provisions that require amendment or clarification or both.
The statement of the purpose of the Order in section I.B. is
proposed to be amended to remove the reference to the assessments and
penalties imposed as a result of noncompliance or the failure to
correct noncompliance, because the Order does not set forth such
assessments and penalties. The purpose statement also is proposed to be
amended to include the purpose that measurements be accurate.
There are no amendments proposed in the definitions included in the
existing Order. However, one new definition (meter uncertainty) would
be added in this proposed rule.
Section III.A. on Required Recordkeeping is proposed to be amended
by adding requirements for the retention of data generated by
electronic flow computers. The revised Order would set forth
specifically the kinds of data required to be retained, without
prescribing an exhaustive list.
Article III. would be reorganized in the proposed Order. Two new
sections would be added to cover minimum standards specific to the
secondary element of the orifice meter and to allow the use of other
types of secondary elements, and to cover other requirements not
specific to orifice meters or the secondary element. Requirements
included in section C. on orifice meters are proposed to be moved, and
in some cases amended, as part of the new section D. on secondary
elements or section E. on other requirements, and several new
requirements have been added as part of section C. and new section D.
These changes are stated in table form below.
------------------------------------------------------------------------
Existing order citations Proposed order citations
------------------------------------------------------------------------
III.C. Gas Measurement by Orifice III.C Primary Element--Orifice
Meter. Meters.
C.1................................ C.1.
C.2................................ C.2.
C.3................................ C.3.
C.4................................ D.10.a.
C.5................................ D.10.b.
C.6................................ C.4.
C.7................................ D.1.
C.8................................ C.5.
C.6. (new).
C.9................................ C.7.
C.10............................... C.8.
C.11............................... C.9.
C.12............................... C.10.
C.13............................... (removed).
D. Secondary Element (new).
D.2. (new).
C.14............................... D.10.c.
C.15............................... D.3.
D.4. (new).
D5. (new).
C.16............................... D.10.d.
C.17............................... D.6.
C.18............................... D.7.
C.19............................... D.8.
D.11.a., b., and c. (new).
E. Other Requirements (new).
C.20............................... E.1.
C.21............................... C.11.
C.22............................... Removed.
C.23............................... E.2.
C.24............................... D.9.
C.25............................... E.3.
C.26............................... E.4.
D. Gas Measurmeent by Other Methods F. Gas Measurement by Other
Methods.
D.1................................ F.1.
D.2................................ F.2.
------------------------------------------------------------------------
The automatic exemption from some requirements for meters measuring
100 Mcf per day or less on a monthly basis would be expanded to include
3 additional standards. These added exemptions would include the
existing requirement that the static element be sized to make the pen
that records the static pressure operate in the outer \2/3\ of the
chart range for the majority of the flowing period, the new requirement
that electronic flow computers be installed, operated, and maintained
to achieve an overall meter uncertainty of plus or minus 3 percent, and
the new requirement for inspecting meter tubes every 5 years. Language
has been added to the Order identifying the applicable standards for
the exemption.
The following requirements proposed to be amended in revised Order
No. 5 are discussed below in the order they appear in this proposed
rule.
III.C.5. (formerly C.8.) is proposed to be amended purely for
clarification. It is the difference between the internal diameters of
the meter tube pipe and the orifice fittings that is to be within AGA
tolerance limits, not the diameters themselves, as the existing Order
seems to provide.
III.C.6. (new) is added to ensure that the meter tubes conform with
AGA Committee Report No. 3. Proper meter tube condition is essential
for accurate measurement. It is intended that all meter tube
inspections would be conducted within the first 5 years after the
effective date of the final rule, and every 5 years thereafter. Meters
measuring 100 Mcf per day or less on a monthly basis would be exempt
from this new requirement.
III.C.8. (formerly C.10.) is proposed to be amended for precision
in stating the requirement. As stated in this rule, orifice plates
would be required to be inspected during calibration of the secondary
element.
III.C.10. (formerly C.12.) is proposed to be amended by removing
the requirement that, when leaks are detected, the meter setting shall
be determined and recorded ``as found,'' and ``as left'' after the
meter is calibrated. This part of the existing requirement is
duplicated by the linearity test in requirement III.D.3. of the
proposed Order.
III.C.13. in the existing Order would be removed in the proposed
Order because it is duplicated by the linearity test in requirement
III.D.3. of the proposed Order.
III.C.11. (formerly C.21.) would be amended by revising the
corrective action to provide for the submittal of a report to BLM. The
form called for in existing requirement C.21. is now submitted to the
Minerals Management Service, not to the BLM. Under the proposed rule,
the operator would be required to submit a report to the BLM showing
what corrections were made.
III.D.1. (formerly C.7.) would be amended by removing the provision
allowing consideration of a variance for sales or allocation meters
measuring between 200 and 500 Mcf per day. This provision duplicates
the general provision for a variance under Article IV. of the Order.
The requirement for the use of an indicating thermometer would be
removed because when using an indicating thermometer the temperature is
not a true average flowing temperature. All meters measuring more than
100 Mcf per day are required to have a temperature recorder. Meters
measuring 100 Mcf per day or less are required to use either a
temperature recorder or an average flowing temperature.
III.D.2. (new) would ensure that the accuracy of the temperature
recording device is maintained.
III.D.3. (formerly C.15.) would be amended for clarification and to
require the recording of readings before and after adjustments are
made. The words ``of the element range'' would be added to make it
clear what the 0 and 100 percent refer to.
III.D.4. (new) would be added to require calibration equipment to
be more accurate than the equipment being calibrated. If the testing
equipment is not more accurate than the equipment being calibrated, the
inherent uncertainty in the metering equipment increases.
III.D.5. (new) would be added to require documentation of the
certification or recertification of calibration equipment to be
available to the authorized officer at the time of calibration.
III.D.6. (formerly C.17.) would be amended to allow meters that
measure 100 Mcf or less per day to be inspected and calibrated
semiannually rather than quarterly. Experience has shown that quarterly
inspections and calibrations of meters measuring such low volumes are
neither cost effective nor necessary to assure an acceptable degree of
accuracy.
III.D.7. (formerly C.18.) would be amended to require operators to
notify the authorized officer of the BLM well in advance of
calibrations to enable the planning of inspections.
III.D.8. (formerly C.19.) would be amended by changing the
reference to ``measuring equipment'' to ``recording device'' to conform
with changes in other requirements. The current Order requires that an
adjustment be made whenever a volume error of 2 percent or greater
occurs. It is proposed to change this standard to ``more than 1
percent'' because volume errors of less than 2 percent on higher volume
wells are very significant. However, in most instances, it will be the
policy of the BLM not to pursue volume errors of less than 200 Mcf per
month, because the cost of doing so would exceed the value of any
additional royalty that might result. The requirement that the meter be
adjusted to zero error would be removed because this is part of the
linearity test requirement in Section III.D.3. For the sake of
simplicity, the abatement period would be stated as 60 days only rather
than also stating the alternative ``prior to completion of
calibration.''
III.D.10. would be added combining several requirements from the
existing Order, as explained below.
III.D.10.a. (formerly C.4.) would be revised to clarify what is
meant by the outer \2/3\ of the chart range. Also, the reference to
sizing the orifice would be removed because doing so is not the only
alternative available to the operator to maintain the differential pen
in the outer \2/3\ of the chart.
III.D.10.b. (formerly C.5.) would be revised to clarify what is
meant by the outer \2/3\ of the chart range.
III.D.10.c. (formerly C.14.) would be amended by revising the
corrective action. It would no longer require recordation of the ``as
found'' and ``as left'' readings, which are meaningless.
III.D.11.a., b., and c. (new) would be added as requirements for
Electronic Flow Computers (EFCs). The requirements for EFCs would be no
more stringent than those for chart recorders. The current static
pressure, differential pressure, and temperature would have to be
displayed on a continuous basis, and the EFC would be required to have
a back-up power source capable of retaining data collected for a
minimum of 35 days.
III.E.3. and 4. (formerly C.25. and 26.) would be amended to make
them read as requirements rather than as descriptions or definitions,
as they appear to do in the existing Order.
Other editorial changes have been proposed to correct errors in the
existing Order and cross-references that must be changed as a result of
the proposed reorganization of the Order.
The principal authors of this proposed rule are Lonny R. Bagley,
Inspection and Enforcement Specialist, Montana State Office, Richard
Estabrook, Petroleum Engineer, Ukiah District Office, California,
Michael Kolling, Petroleum Engineering Technician, Dickinson District
Office, North Dakota, Will Lambert, Petroleum Engineer, Grand Junction
District Office, Colorado, and Larry Bray, Petroleum Engineering
Technician, Roswell Resource Area Office, New Mexico, assisted by the
staff of the Division of Legislation and Regulatory Management, all of
the BLM.
It is hereby determined that this proposed rule does not constitute
a major Federal action significantly affecting the quality of the human
environment, and that no detailed statement pursuant to Section
102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C)) is required. The Bureau of Land Management has determined
that this proposed rule is categorically excluded from further
environmental review pursuant to 516 Departmental Manual (DM), Chapter
2, Appendix 1, Item 1.10, and that the proposal would not significantly
affect the 10 criteria for exceptions listed in 516 DM 2, Appendix 2.
Pursuant to the Council on Environmental Quality regulations (40 CFR
1508.4) and environmental policies and procedures of the Department of
the Interior, ``categorical exclusions'' means a category of actions
that do not individually or cumulatively have a significant effect on
the human environment and that have been found to have no such effect
in procedures adopted by a Federal agency and for which neither an
environmental assessment nor an environmental impact statement is
required.
This rule has been reviewed under Executive Order 12866.
The Department has determined under the Regulatory Flexibility Act
(5 U.S.C. 601 et seq.) that it will not have a significant economic
impact on a substantial number of small entities for the same reasons.
The rule codifies industry standards that apply to all entities in the
industry, regardless of size. The Order would not require a substantial
amount of additional information or monitoring. Some additional
equipment may be required in certain cases, but the total cost of these
changes would not approach the threshold specified in the Executive
Order. Costs to the public should not increase at all as a result of
the Order.
The Department certifies that this proposed rule does not represent
a governmental action capable of interference with constitutionally
protected property rights. There would be no taking of private property
without due process. Failure to abate violations could result in
assessments under the Mineral Leasing Act and/or penalties under the
Federal Oil and Gas Royalty Management Act, and possibly lease
cancellation if the failure continues, but not without due process.
Therefore, as required by Executive Order 12630, the Department of the
Interior has determined that the proposed rule would not cause a taking
of private property.
The Department has certified to the Office of Management and Budget
that this proposed rule meets the applicable standards provided in
section 1(a) and 2(b)(2) of Executive Order 12788.
The information collection requirement(s) contained in Part 3160
that relate to this Order have been approved by the Office of
Management and Budget under 44 U.S.C. 3501 et seq. and assigned
clearance number 1004-0134.
List of Subjects in 43 CFR Part 3160
Government contracts; Mineral royalties; Oil and gas exploration;
Oil and gas production; Public lands--Mineral resources; Indian lands--
Mineral resources; Reporting requirements.
For the reasons stated above, under the authority of the Mineral
Leasing Act of 1920, as amended and supplemented (30 U.S.C. 181 et
seq.), the Department proposes to amend part 3160, Group 3100,
subchapter C, chapter II of title 43 of the Code of Federal Regulations
as set forth below:
PART 3160--ONSHORE OIL AND GAS OPERATIONS
1. The authority citation for part 3160 continues to read as
follows:
Authority: 43 U.S.C. 1733; 30 U.S.C. 181 et seq.; 30 U.S.C. 351-
359; 30 U.S.C. 301-306; 25 U.S.C. 396; 25 U.S.C. 396a-396q, 397,
398, 398a-398e, 399; 43 U.S.C. 1457; see also 40 Op.Atty.Gen. 41; 40
U.S.C. 471 et seq.; 42 U.S.C. 4321 et seq.; 43 U.S.C. 6508; 30
U.S.C. 1701 et seq.; and 25 U.S.C. 2101 et seq.
Subpart 3164--Special Provisions
2. Section 3164.1(b) is amended by revising the fifth entry of the
table to read as follows:
Sec. 3164.1 Onshore Oil and Gas Orders.
* * * * *
(b) * * *
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Order No. & Subject Effective date Federal Register reference Supersedes
----------------------------------------------------------------------------------------------------------------
* * * * * * *
5. Measurement of Gas.......... [30 days after date of [FR reference for final rule].. None.
publication of final rule].
* * * * * * *
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Dated: September 27, 1993.
Bob Armstrong,
Assistant Secretary of the Interior.
Appendix--Text of Oil and Gas Order No. 5
Note.--This appendix will not appear in the Code of Federal
Regulations.
Onshore Oil and Gas Order No. 5
Measurement of Gas
I. Introduction
A. Authority
B. Purpose
C. Scope
II. Definitions
III. Requirements
A. Required Recordkeeping
B. General
C. Primary Element--Orifice Meters
D. Secondary Element
E. Other Requirements
F. Gas Measurement by Other Methods or at Other Locations
Acceptable to the Authorized Officer
IV. Variances from Minimum Standards
Attachment
I. Sections from 43 CFR Subparts 3163 and 3165
Onshore Oil and Gas Order No. 5
Measurement of Gas on Federal and Indian Oil and Gas Leases
I. Introduction
A. Authority
This Order is established pursuant to the authority granted to the
Secretary of the Interior under various Federal and Indian mineral
leasing statutes and the Federal Oil and Gas Royalty Management Act of
1982. This authority has been delegated to the Bureau of Land
Management and is implemented by the onshore oil and gas operating
regulations contained in 43 CFR part 3160. Section 3164.1 thereof
specifically authorizes the Director to issue Onshore Oil and Gas
Orders when necessary to implement or supplement the operating
regulations and provides that all such Orders shall be binding on the
lessees and operators of Federal and restricted Indian oil and gas
leases which have been, or may hereafter, be issued.
Specific authority for the provisions contained in this Order is
found at: section 3162.4-1, Well records and reports; section 3162.4-2,
Samples, tests, and surveys; section 3162.7-1, Disposition of
production; section 3162.7-3, Measurement of gas; and subpart 3163,
Noncompliance, Assessments, and Penalties.
B. Purpose
One purpose of this Order is to establish requirements and minimum
standards for the accurate measurement of gas by the methods authorized
in 43 CFR 3162.7-3, i.e., measurement by orifice meter or other methods
acceptable to the authorized officer. Accurate gas measurement ensures
that the Federal Government, the general public, State Governments that
share in the proceeds, and Indian mineral owners receive the royalties
due, as specified in the governing oil and gas leases.
Another purpose of this Order is to establish abatement periods for
corrective action when noncompliance with the minimum standards is
detected.
This Order also serves as notice to any party cited for
noncompliance that it may request from the authorized officer an
extension of the abatement period for any violation, provided that the
request for extension is applied for and granted prior to the
expiration of the abatement period previously allowed.
C. Scope
This Order is applicable to all Federal and Indian (except Osage)
oil and gas leases. In addition, this Order is also applicable to all
wells and facilities on State or privately owned mineral lands
committed to a unit or communitization agreement that affects Federal
or Indian interests, notwithstanding any provision of a unit or
communitization agreement to the contrary.
II. Definitions
A. ``Authorized officer'' means any employee of the Bureau of Land
Management authorized to perform the duties described in 43 CFR Groups
3000 and 3100 (see 43 CFR 3000.0-5).
B. ``Business day'' means any day Monday through Friday excluding
Federal holidays.
C. ``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 standard temperature and pressure
conditions (see 43 CFR 3000.0-5(a)).
D. ``INC'' means incident of noncompliance, which serves as a
Notice of Violation under CFR subpart 3163.
E. ``Lessee'' means a person or entity holding record title in a
lease issued by the United States (see 43 CFR 3160.0-5).
F. ``Major violation'' means noncompliance that causes or threatens
immediate, substantial, and adverse impacts on public health and
safety, the environment, production accountability, or royalty income
(see 43 CFR 3160.0-5).
G. ``Meter uncertainty'' means the overall inaccuracy of a flow
meter caused by the inherent errors of the flow measurement equipment.
H. ``Minor violation'' means noncompliance that does not rise to
the level of a major violation (see 43 CFR 3160.0-5).
I. ``Operating rights owner'' means a person or entity holding
operating rights in a lease issued by the United States. A lessee also
may be an operating rights owner if the operating rights in a lease or
portion thereof have not been severed from record title.
J. ``Operator'' means any person or entity, including but not
limited to the lessee or operating rights owner, who has stated in
writing to the authorized officer that it is responsible under the
terms and conditions of the lease for the operations conducted on the
leased lands or portion thereof.
K. ``Production unit'' means, for purposes of reporting gas
production, a measurement unit of 1000 standard cubic feet (Mcf).
L. ``Standard cubic foot'' means the volume of gas contained in one
cubic foot at a base pressure of 14.73 pounds per square inch absolute,
and at a base temperature of 60 deg. F or 519.67 deg. Rankine (see 43
CFR 3162.7-3).
III. Requirements
A. Required Recordkeeping
The operator shall keep all test data, meter reports, charts/
recordings, or other similar records for 6 years from the date they
were generated, unless the operator is notified that an audit or
investigation involving such records has been initiated. If the
operator is notified that an audit or investigation involving the
records has been initiated, the operator shall maintain the records
until released in writing from the obligation to maintain them. The
authorized officer may request, and the operator shall produce, such
records any time within this period. For electronic flow computers
(EFCs), this includes but is not limited to:
1. Field edits or volume adjustments.
2. Hourly average static and differential pressures, hourly flow
temperatures, hourly sums of extensions calculated at each data point,
hourly volumes, and the method used to obtain the summation of
extensions, averages, and volumes. For the purposes of this Order,
extensions are the square root of the product of the differential
pressure and static pressure.
3. Subsequent edits or adjustments. If several changes are made,
only the original and the final readings shall be retained.
Along with any records submitted at the request of the authorized
officer, the operator shall provide all additional information used to
compute volumes so that computations may be verified.
B. General
All gas production shall be measured in accordance with an
authorized method of measurement. As set out in 43 CFR 3162.7-3, gas
measurement authorized for gas produced from leases, unit areas, and
communitization agreements subject to the jurisdiction of the Bureau of
Land Management, as such jurisdiction is defined in 43 CFR 3161.1, may
be by orifice meter or other methods acceptable to the authorized
officer. The requirements and minimum standards for gas measurement are
set out below. If these requirements for the primary element and chart
recorder are met, a meter accuracy of plus or minus 3 percent will be
attained. However, given the complex components and sophistication of
electronic flow computers (EFCs), no ``cook book'' method can be
established. Therefore, an uncertainty standard of plus or minus 3
percent would be included for EFCs.
The requirements of this Order are based on the standards and
specifications published by the American Gas Association (AGA) and
officially designated as ANSI/API 2530 and AGA Committee Report No. 3,
second edition, 1985, hereafter referred to as AGA Committee Report No.
3. The AGA-published standards and specifications are considered to be
appropriate for proper gas measurement by both the Department of the
Interior and the oil and gas industry. The requirements set minimum
standards necessary to promote conservation of natural resources and to
ensure proper measurement of gas production for sales and allocation
purposes, so that the Federal Government and Indian mineral owners will
receive the royalties due under governing oil and gas leases.
All future sales and allocation facilities and sales or allocation
facilities in existence on the effective date of this Order, unless
covered by a valid variance, shall meet the minimum standards
prescribed in this Order; provided, however, that all gas produced from
or allocated to Federal and Indian (except Osage) oil and gas leases
wherein the gas is measured through sales or allocation meters handling
100 thousand cubic feet (Mcf) per day or less on a monthly basis are
exempt from the standards in section III. C.1., C.2., D.10.a., D.10.b.,
and D.11.c. of this Order. The authorized officer may, where
appropriate and necessary for proper measurement, work with the
operators in designating consolidated gas sales and/or allocation meter
stations.
Meter installations constructed in accordance with the AGA
Committee Report No. 3 standards in effect at that time shall not
automatically be required to retrofit if the standards are revised. The
Bureau will review any revised standards and, when necessary, will
amend the Order through the rulemaking process.
The intent of these minimum standards is to ensure that when
equipment malfunctions occur that could result in inaccurate
measurement, proper corrective actions are taken, the authorized
officer is notified, and a report is submitted.
Failure to comply with these minimum standards will be considered
noncompliance and an incident of noncompliance (INC) will be issued.
Operators who discover noncompliance with these minimum standards and
take immediate corrective action will not be issued an INC. If the
authorized officer or his representative is present when an operator
discovers a malfunction or uses incorrect procedures as specified in
this Order, an INC will be issued unless immediate corrective action is
taken. Failure of equipment will not be considered a violation.
However, the incidents of noncompliance which may result from equipment
failure are considered violations. A partial list of such incidents
follows:
Failure to install equipment properly.
Failure to repair or correct equipment malfunction properly or in a
timely manner.
Failure to submit report of alternate method of sales.
Failure to submit required reports in a timely manner.
Failure to adhere to the minimum standard procedures specified in
this Order.
The use of improper equipment, when discovered, will be considered
a violation and a formal INC will be issued.
The use of improper procedures will be considered a violation and
when witnessed by the authorized officer or his representative,
immediate corrective action will be required. In the event that proper
procedures are then used as required by this Order, and prior to
completing the operation, calibration, or proving, the violation will
be considered as properly corrected. In this case, although the
violation will be documented in the agency files, no INC will be
issued.
The failure to take timely corrective action as required to meet
any standard in this article will be considered either a major or minor
violation in accordance with the classification set out below for each
standard, unless an applicable variance has been granted or the
standards have been otherwise modified in accordance with Article IV.
A major violation, as defined in this Order, will generally require
an immediate shut-in of the metering device. However, where the non-
recoupable loss is not significant or where damage to the resource is
likely to occur if a shut-in is required, an abatement period of 24
hours may be granted by the authorized officer or his representative.
Where abatement is required ``prior to sales or removal,'' action
is required to be taken so that no gas can be removed beyond the
measurement point until properly measured.
C. Primary Element--Orifice Meters
The following are minimum standards for the measurement of natural
gas using orifice meters.
1. For meters measuring more than 100 Mcf per day on a monthly
basis, the orifice to pipe diameter ratio (d/D), or the beta ratio,
with meters using ``flange taps,'' shall be between 0.15 and 0.70.
Violation: Major.
Corrective Action: Install an orifice of such size that subsequent
measurements will be within the appropriate beta ratio range. If
changing the orifice causes the differential pressure to be recorded in
the lower one-third of the chart, then either the meter tube or the
differential element shall be changed, sizing the straight pipe
sections in a manner that will provide subsequent measurement within
the appropriate beta ratio range.
Abatement Period: Prior to sales or removal.
2. For meters measuring more than 100 Mcf per day on a monthly
basis, the orifice to pipe diameter ratio (d/D), or the beta ratio,
with meters using ``pipe taps,'' shall be between 0.20 and 0.67.
Violation: Major.
Corrective Action: Same as C.1. above.
Abatement Period: Prior to sales or removal.
3. To obtain flow conditions as near optimum as possible and
minimize the effects of turbulence in gas flow, the minimum length of
straight pipe preceding and following an orifice, and the use of
straightening vanes, shall conform to the specifications shown in
Figures 4 through 9 of AGA Committee Report No. 3.
Violation: Major.
Corrective Action: Install proper length of pipe where appropriate
or install straightening vanes in accordance with appropriate AGA
Committee Report No. 3 specifications.
Abatement Period: Prior to sales or removal.
4. There shall be no pipe connections between the orifice and the
nearest pipe fitting other than the pressure taps and/or thermometer
wells as specified in AGA Committee Report No. 3.
Violation: Major.
Corrective Action: Replace entire length of pipe ahead of the
orifice meter with pipe of appropriate length and inside smoothness in
accordance with AGA Committee Report No. 3.
Abatement Period: Prior to sales or removal.
5. The difference between the internal diameters of the meter tube
pipe and the orifice fittings shall be within the tolerance limits set
by AGA.
Violation: Major.
Corrective Action: Install properly sized meter tube.
Abatement Period: Prior to sales or removal.
6. For meters measuring more than 100 Mcf per day on a monthly
basis, meter tubes shall be inspected at least every 5 years to ensure
continuing conformance with the meter tube specifications in AGA
Committee Report No. 3. Record results of inspections and take any
necessary corrective actions to bring the meter tube into conformance
with AGA Committee Report No. 3.
Violation: Minor.
Corrective Action: Inspect meter tube for conformance with AGA
Committee Report No. 3, record results of inspection, and take
necessary corrective actions.
Abatement Period: 60 days.
7. Meter tubes using flange taps or pipe taps shall have the
pressure tap holes located as specified in AGA Committee Report No. 3.
Violation: Major.
Corrective Action: Install pressure tap as specified.
Abatement Period: Prior to sales or removal.
8. Orifice plates shall be removed from the flange or plate holder,
and visually inspected for conformance with AGA standards and
specifications, at least semi-annually, during calibration of the
secondary element.
Violation: Minor.
Corrective Action: Remove and visually inspect orifice plate for
conformance with AGA standards and specifications.
Abatement Period: No later than the next meter calibration.
9. Any plate or orifice that is determined not to be in conformance
with AGA standards shall be replaced with one that is in conformance.
Violation: Major.
Corrective Action: Replace orifice plate.
Abatement Period: Prior to sales or removal.
10. All connections and fittings of the secondary element
(including meter pots and meter manifolds) shall be leak tested prior
to conducting tests of the meter's accuracy.
Violation: Minor.
Corrective Action: Stop meter calibration and conduct leak test.
Abatement Period: Prior to completion of calibration.
11. Volumes of gas delivered shall be determined according to the
flow equations specified in AGA Committee Report No. 3.
Violation: Minor.
Corrective Action: Recalculate all gas volumes not determined in
accordance with flow equations specified in AGA Committee Report No. 3.
Submit a report adjusting the volume of gas measured, and showing or
discussing all calculations made in correcting the volumes.
Abatement Period: 60 days.
D. Secondary Element
The following are minimum standards for the secondary element of
the orifice meter.
1. Continuous temperature recorders to measure the flowing gas
temperature are required on all sales and allocation meters measuring
more than 100 Mcf per day on a monthly basis. Meters measuring 100 Mcf
or less per day on a monthly basis shall determine the flowing
temperature of the gas by one of the following:
a. Continuous temperature recorder, or
b. Average flowing temperature, as determined by a method approved
by the authorized officer.
Violation: Major.
Corrective Action: Install temperature measuring device as
required.
Abatement Period: Prior to sales or removal.
2. The temperature recording device shall be tested for accuracy
utilizing one of the following:
a. ``Test well'' in the meter run; or
b. Water bath.
Record ``as found'' readings, make any necessary adjustments, and
record ``as left'' readings.
Violation: Minor.
Corrective Action: Test temperature recording device as specified,
record ``as found'' readings, make necessary adjustments, and record
``as left'' readings.
Abatement Period: Prior to completion of calibration.
3. Differential and static pen accuracy shall be tested for
linearity at zero, at 100 percent of the element range, and at 1 point
within the normal operating range of the differential and static
recordings. Record ``as found'' readings, make any necessary
adjustments, and record ``as left'' readings.
Violation: Minor.
Corrective Action: Test linearity at the required points, record
``as found'' readings, make necessary adjustments, and record ``as
left'' readings.
Abatement Period: Prior to completion of calibration.
4. All calibrating equipment shall be more accurate than the
required accuracy of the equipment being calibrated, as shown in the
documentation required in paragraph 5. Calibration equipment shall be
recertified at least annually.
Violation: Minor.
Corrective Action: Stop calibration, substitute proper calibrating
equipment, and restart calibration.
Abatement Period: Prior to completion of calibration.
5. Documentation of the certification/recertification of the
calibrating equipment shall be available to the authorized officer at
the time of calibration.
Violation: Minor.
Corrective Action: Provide documentation.
Abatement Period: 20 days.
6. The accuracy of the recording device(s) shall be tested
following initial meter installation and following repairs. Meters
measuring more than 100 Mcf per day on a monthly basis shall be tested
at least quarterly. Meters measuring 100 Mcf per day or less on a
monthly basis shall be tested at least semi-annually.
Violation: Minor.
Corrective Action: Test meter for accuracy.
Abatement Period: a. 24 hours for initial meter installation or
following repairs.
b. 30 days to conduct the quarterly or semi-annual meter test, as
applicable.
7. The authorized officer shall be notified in writing of all meter
calibrations. Calibration schedules covering monthly, quarterly,
semiannual, or annual periods shall be submitted at least 10 days prior
to the date of the first calibration on the schedule.
Violation: Minor.
Corrective Action: Submit the calibration schedule, as required.
Abatement Period: Prior to next calibration.
8. If the inaccuracy in the recording device(s) results in a volume
calculation more than 1 percent in error, the volume measured since the
last calibration shall be corrected. However, if the magnitude of the
volume error is less than 200 Mcf per month, it will not be pursued
unless it occurs on a continuing basis. In that case, the meter shall
be adjusted in accordance with Sections III.D.2. and III.D.3. Also, the
operator shall submit a report adjusting the volumes of gas measured,
and showing or discussing all calculations made in correcting the
volumes. The volumes shall be corrected back to the time the inaccuracy
occurred, if known. If this time is unknown, volumes shall be corrected
for the last half of the period elapsed since the date of last
calibration.
Violation: Minor.
Corrective Action: Submit report with adjusted volumes.
Abatement Period: 60 days.
9. All meter calibration report forms shall include the following
information, if applicable, and shall be submitted to the authorized
officer upon request.
a. Name of producer or seller;
b. Name of purchaser;
c. Federal or Indian lease number, communitization agreement
number, or unit name or number and participating area identification;
d. Station or meter number;
e. Meter data (make, differential, and static and temperature
range, recording period);
f. Type of connections (flange or pipe, upstream or downstream
static connections);
g. Orifice data (plate size and ID of meter tube);
h. Time and date of test;
i. Instrument error(s) found and certification of corrections, and
``as found'' and ``as left'' data for all instruments;
j. Signature and affiliation of tester and witness;
k. Remarks.
Violation: Minor.
Corrective Action: Submit amended meter calibration report(s) to
authorized officer, including all required information.
Abatement Period: 15 days.
10. Chart Recorder: The following are minimum standards that only
apply to chart recorders.
a. For meters measuring more than 100 Mcf per day on a monthly
basis, the pen that records differential pressure shall operate in the
outer \2/3\ of the chart range (the physical distance on the chart
measured from zero) for the majority of the flowing period.
Violation: Minor.
Corrective Action: Size the metering equipment so that the
differential pen will record in the outer \2/3\ of the chart range.
Abatement Period: 20 days.
b. For meters measuring more than 100 Mcf per day on a monthly
basis, the static element shall be sized to make the pen that records
the static pressure operate in the outer \2/3\ of the chart range (the
physical distance on the chart measured from zero) for the majority of
the flowing period.
Violation: Minor.
Corrective Action: Size static element so as to cause static pen to
record in the outer \2/3\ of the chart range.
Abatement Period: 20 days.
c. The meter's differential pen arc, the ability of the
differential pen to duplicate the test chart's time arc over the full
range of the test chart, shall be checked during each testing of the
meter's accuracy and adjustments made if necessary.
Violation: Minor.
Corrective Action: Stop meter calibration, check differential pen
arc, make necessary adjustments, and restart calibration.
Abatement Period: Prior to completion of calibration.
d. During testing of the meter accuracy, the static pen time lag
shall be adjusted to ensure independent movement of the static pen in
relation to the differential pen.
Violation: Minor.
Corrective Action: Make appropriate adjustments.
Abatement Period: Prior to completion of calibration.
11. Electronic Flow Computers: The following are minimum standards
that only apply to electronic flow computers (EFCs).
a. The current static pressure, differential pressure, and
temperature shall be displayed on a continuous basis.
Violation: Minor.
Corrective Action: Display required data.
Abatement Period: 30 days.
b. The EFC shall be equipped with a back-up power source capable of
retaining data collected for a minimum of 35 days.
Violation: Minor.
Corrective Action: Install back-up power source capable of
retaining data collected for a minimum of 35 days.
Abatement Period: 30 days.
c. For meters measuring more than 100 Mcf per day on a monthly
basis, the EFC shall be installed, operated, and maintained to achieve
an overall meter uncertainty of within plus-minuse>3 percent.
Violation: Minor.
Corrective Action: Make any necessary changes to bring the overall
meter uncertainty within plus-minuse>3 percent.
Abatement Period: 20 days.
E. Other Requirements
The following are minimum standards that apply to all sales and
sales allocation meter installations.
1. If, for any reason, the measuring equipment is out of service or
malfunctioning so that the quantity of gas delivered is not known, the
volume delivered during this period shall be estimated using one of the
following methods, in this order of priority:
a. Record data on check metering equipment if used in lieu of main
meter recordings. If check meters are not installed or are found to be
recording inaccurately, then
b. Base corrections on the percentage error found during the
instrument test. If that is not feasible, then
c. Estimate the quantity of gas run, based on deliveries made under
similar conditions when the metering equipment was registering
accurately.
Violation: Minor.
Corrective Action: Estimate volumes delivered during those periods
cited using one or more of the approved methods identified in the order
of priority and, where necessary, submit a report showing corrected
volumes.
Abatement Period: 60 days.
2. The Btu content shall be determined at least annually, unless
otherwise required by the authorized officer, by means of (1) a
recording calorimeter, (2) calculations based on a complete
compositional analysis of the gas and the heating value of each
constituent, in accordance with AGA Committee Report No. 3, or (3) any
other method acceptable to the authorized officer. The authorized
officer shall be apprised of the method used for each determination and
be furnished with all needed analytical data or other documentation
upon request. The Btu content most recently determined and used for
royalty purposes shall be reported.
Violation: Minor.
Corrective Action: Determine Btu content and submit a report.
Abatement Period: 30 days.
3. For purposes of measurement and meter calibration, atmospheric
pressure shall be established through an actual measurement or assumed
to be a constant value based on the elevation at the metering station.
Violation: Minor.
Corrective Action: Recalibrate gas meter and submit a report
indicating corrected volumes using the adjusted absolute zero or
properly calculated pressure extensions.
Abatement Period: 30 days.
4. The method and frequency of determining specific gravity shall
be determined by use of one of the following methods:
a. Continuous recording gravitometer;
b. Complete compositional analysis of a spot or cumulative gas
sample determined at least annually.
Violation: Minor.
Corrective Action: Determine specific gravity of gas by approved
method and submit a report with corrected volume.
Abatement Period: 30 days.
F. Gas Measurement by Other Methods or at Other Locations Acceptable to
the Authorized Officer
Using any method of gas measurement other than by orifice meter at
a location on the lease, unit, unit participating area, or communitized
area, requires prior approval from the authorized officer pursuant to
43 CFR 3162.7-3. Other measurement methods include, but are not limited
to:
Turbine metering systems
Positive displacement meter
Pitot tube
Orifice well tester
Critical flow prover
Gas-oil ratio
The requirements and minimum standards for gas measurement on the
lease, unit, unit participating area, or communitized area by an
alternate method of measurement, or at a location off the lease, unit,
unit participating area, or communitized area by either an authorized
or an alternate method of measurement, are as follows:
1. Measurement on the Lease, Unit, Unit Participating Area, or
Communitized Area
A written application for approval of an alternate gas measurement
method shall be submitted to the authorized officer and written
approval obtained before any such alternate gas measurement method is
installed or operated. Any operator requesting approval of any
alternate gas sales measurement system shall submit performance data,
actual field test results, or any other supporting data or evidence
acceptable to the authorized officer, that will demonstrate that the
proposed alternate gas sales measurement system will meet or exceed the
objectives of the applicable minimum standards or will not adversely
affect royalty income or production accountability.
Violation: Major.
Corrective Action: Submit application and obtain approval.
Abatement Period: Prior to sales or removal.
2. Measurement at a Location Off the Lease, Unit, Unit Participating
Area, or Communitized Area
a. A written application for off-lease measurement shall be
submitted to the authorized officer and written approval obtained
before any such off-lease gas measurement facilities are installed or
operated. The application for approval of off-lease measurement shall
justify the location of the measurement facilities at the desired off-
lease location before approval will be granted, but no additional
approval as to the gas sales measurement method is required, provided
measurement is to be accomplished by orifice meter pursuant to the
requirements and minimum standards of this Order.
Violation: Minor.
Corrective Action: Submit application and obtain approval.
Abatement Period: 20 days.
b. If gas measurement is to be accomplished at a location off the
lease, unit, unit participating area, or communitized area by any
alternate measurement method (any method other than measurement by
orifice meter), then the application, in addition to justifying the
location of the measurement facilities, shall also demonstrate the
acceptability of the alternate measurement method pursuant to Section
III.F.1. of this Order.
Violation: Major.
Corrective Action: Submit application and obtain approval.
Abatement Period: Prior to sales.
IV. Variances From Minimum Standards
An operator may request that the authorized officer approve a
variance from any of the minimum standards prescribed in Article III.
All such requests shall be submitted in writing to the appropriate
authorized officer and shall provide information as to the
circumstances warranting approval of the variance(s) requested and the
proposed alternative means by which the related minimum standard(s)
will be satisfied. The authorized officer, after considering all
relevant factors, shall approve the requested variance(s) if it is
determined that the proposed alternative(s) meets or exceeds the
objectives of the applicable minimum standard(s), or does not adversely
affect royalty income or production accountability.
In addition, approval may be given orally by the authorized officer
before the operator initiates actions which require a variance from
minimum standards. The oral request, if granted, shall be followed by a
written request not later than the fifth business day following oral
approval, and written approval will then be appropriate.
The authorized officer may also issue NTLs that establish modified
standards and requirements for specific geographic areas of operations.
After notice to the operator, the authorized officer may also
require compliance with standards that exceed those contained in this
Order whenever such additional requirements are necessary to achieve
protection of royalty income or production accountability. The
rationale for any such additional requirements shall be documented in
writing to the operator.
[FR Doc. 94-149 Filed 1-5-94; 8:45 am]
BILLING CODE 4310-84-P
