[Federal Register Volume 60, Number 228 (Tuesday, November 28, 1995)]
[Proposed Rules]
[Pages 58590-58593]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-28965]
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DEPARTMENT OF THE INTERIOR
Bureau of Land Management
43 CFR Part 3160
[WO-310-4191-02-24 1A]
RIN 1004-AC09
Onshore Oil and Gas Operations
AGENCY: Bureau of Land Management, Interior.
ACTION: Proposed rule.
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SUMMARY: The Department of the Interior, through the Bureau of Land
Management (BLM), proposes to amend the provisions of 43 CFR Part 3160
that address BLM's responsibility for managing oil and gas operations
on lands administered by the United States Forest Service (Forest
Service). This action is being taken to clarify the regulations
implementing the Federal Onshore Oil and Gas Leasing Reform Act of 1987
(Reform Act), to establish clearly that BLM's responsibility on
National Forest System (NFS) lands is limited to the approval of
applications for permit to drill (APD), the approval of other
development or operational proposals involving subsurface activity,
related impacts, and any appeals regarding the same. On NFS lands the
approval of an APD does not, in itself, constitute approval of the
surface use plan of operations (SUPO). Surface use plans of operations
on NFS lands require separate approval by the Forest Service, and all
appeals related to the SUPO are appeals from the decision of the Forest
Service. Agency responsibilities under this rule and the Reform Act are
determined on the basis of subsurface (BLM) and surface (Forest
Service) authority for oil and gas operations on NFS lands.
DATES: Comments should be submitted by January 29, 1996. Comments
received or postmarked after this date may not be considered in the
decision making on the final rule.
ADDRESSES: Comments should be sent to: Director (420), Bureau of Land
Management, Room 401 LS, 1849 C Street, NW., Washington, DC 20240.
Comments can also be sent to internet!WO140@attmail.com. Please include
``attn: AC09'' and your name and return address in your internet
message. 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: Erick Kaarlela, (202) 452-0340, or
Howard Lemm, (406) 255-2842.
SUPPLEMENTARY INFORMATION: The Federal Onshore Oil and Gas Reform Act
of 1987 (30 U.S.C. 226) vests the Secretary of the Interior and the
Secretary of Agriculture with the authority to take actions on NFS
lands for APD and SUPO approvals, respectively. The purpose of this
proposed rule is to clarify in the regulations the statutory division
of authority between the Department of the Interior, acting through the
BLM, and the Department of Agriculture, acting through the Forest
Service, for managing oil and gas operations on NFS lands. The
responsibility for review of actions on NFS lands by the BLM for APDs
and the Forest Service for SUPOs is clearly divisible. Each agency is
responsible for predecisional reviews under such statutes as the
National Environmental Policy Act of 1969 (42 U.S.C. 4332 et seq.) and
the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.) to the
extent that such reviews are performed for decisions proposed to be
made pursuant to its decisional authority.
The Reform Act authorizes the Secretary of Agriculture to regulate
all surface-disturbing activities carried out in conjunction with oil
and gas development and operation on NFS lands. The Act states: ``The
Secretary of the Interior, or for National Forest lands, the Secretary
of Agriculture, shall regulate all surface-disturbing activities
conducted pursuant to any lease issued under this Act, and shall
determine
[[Page 58591]]
reclamation and other actions as required in the interest of
conservation of surface resources. No permit to drill on an oil and gas
lease issued under this Act may be granted without the analysis and
approval by the Secretary concerned of a plan of operations covering
proposed surface-disturbing activities within the lease area.'' As
applied to SUPOs and APDS, the Reform Act makes an approved SUPO a
condition precedent to the granting of an APD. Although the Forest
Service is responsible for the SUPO approval prior to the APD, the
Reform Act does not make the SUPO a part of the APD. The analysis and
subsequent decisions for SUPOs and APDs are separate functions for
Forest Service and BLM, respectively.
Although Section 5102(g) of the Reform Act delineates the authority
given to each agency, clarification of this division in part 3160 of
Title 43 of the Code of Federal regulations is needed to bring the
existing regulations into greater conformance with the Reform Act. The
intent of this proposed rule is to accurately describe the authority of
the BLM for managing oil and gas operations on NFS lands. The proposed
rule would abolish the existing regulatory provision making the SUPO a
part of an APD on NFS lands, thus making it clearer that a SUPO
approved by the Forest Service is instead a precondition to the
approval of an APD on NFS lands. The proposed rule would also clarify
BLM's exclusive responsibility for APD approval and any subsequent
appeals related to actions taken on APDs for NFS lands pursuant to 43
CFR 3162.3-1(h). Concurrently, the Forest Service is preparing a
technical amendment to 36 CFR 228 subpart E to clarify the exclusive
responsibility of that agency to approve any SUPO for oil and gas
operations on NFS lands and to hear any appeals of related actions. It
is the intention of both agencies to coordinate these rulemaking
activities.
The BLM's environmental review responsibilities for oil and gas
development on NFS lands would be for decisions related to those
actions described in a new section 3161.3 subtitled Responsibility of
the authorized officer on National Forest System lands. Section 3161.3
would reiterate that BLM's authority to make decisions relating to
drilling and suspension of operations or production will be
appropriately coordinated with Forest Service decisions on the
corresponding SUPO.
It is intended under this proposed rule that environmental review
responsibilities for oil and gas development on NFS lands would be
fully met through the coordinated efforts of the BLM and Forest
Service. These coordinated efforts could include the development of
environmental documents as cooperating agencies pursuant to the
regulations located at 40 CFR 1501.6 implementing the National
Environmental Policy Act of 1969 (NEPA, 42 U.S.C. 4332 et seq.).
Although this proposed rule would not affect the working relationships
between the two agencies in terms of NEPA compliance, the rule would
make clear the limits of authority of the two agencies for the ultimate
decisions on APDs and SUPOs involving NFS lands.
The existing national level Memorandum of Understanding (MOU)
between the BLM and the Forest Service dated November 11, 1991, would
be updated, as needed, to ensure coordination between the agencies with
respect to oil and gas development on NFS lands in a manner consistent
with the rule. It is anticipated that items to be considered in future
amendment of the MOU would include, but would not be limited to, public
posting requirements, review timeframes, operator notification
requirements, SUPO and APD information sharing, and the distribution of
environmental review findings and decision documents.
The principal authors of this proposed rule are Howard Lemm and
Chun Wong of the Montana State Office and Erick Kaarlela of the
Washington Office (WO) Compliance Team, assisted by the Regulatory
Management Team, WO BLM, and the Forest Service.
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 rule is categorically excluded from further environmental
review pursuant to Departmental Manual (DM), Chapter 2, Appendix 1,
Item 1.10, being a regulation of an administrative, financial, legal,
technical, or procedural nature, and that the rule will 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 which do not individually or cumulatively have a
significant effect on the human environment and which 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 was not subject to review by the Office of Management and
Budget under Executive Order 12866. This rule will not have a
significant effect on the oil and gas industry. The rule will not
adversely affect in a material way, the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local or tribal communities. The rule would
have a positive impact in that it would eliminate duplicative
responsibilities and appeal processes, thereby streamlining the process
for all involved without compromising the stewardship of the resource.
The Department has further determined that this rulemaking would
not have a significant economic impact on a substantial number of small
entities under the Regulatory Flexibility Act (5 U.S.C. 605 et seq.).
No small entities are likely to be affected by this rule and there are
no particularly affected industries or sectors.
The Department certifies that this proposed rule does not represent
a governmental action capable of interference with constitutionally
protected property rights. Therefore, as required by Executive Order
12630, the Department of the Interior has determined that the rule
would not cause a taking of private property.
The Department has certified to the Office of Management and Budget
that these regulations meet the applicable standards provided in
Sections 2(a) and 2(b)(2) of Executive Order 12778.
This rule does not contain information collection requirements that
require approval by the Office of Management and Budget under 44 U.S.C.
3501 et seq.
List of Subjects in 43 CFR Part 3160
Government contracts, Indian lands--mineral resources, Mineral
royalties, Oil and gas exploration, Oil and gas production, Public
lands--mineral resources, Reporting and recordkeeping requirements.
For the reasons stated in the preamble, part 3160, of title 43 of
the Code of Federal Regulations is proposed to be amended as follows.
PART 3160--ONSHORE OIL AND GAS OPERATIONS
1. The authority citation for Part 3160 is revised to read as
follows:
[[Page 58592]]
Authority: 30 U.S.C. 181 et seq.; 30 U.S.C. 359; 30 U.S.C. 306;
25 U.S.C. 396; 25 U.S.C. 396d; 25 U.S.C. 398e; 25 U.S.C. 399; and 30
U.S.C. 1701, 1751(a).
Sec. 3160.0-2 [Removed]
2. Section 3160.0-2 is removed.
3. Section 3160.0-5 is amended by redesignating paragraphs (m)
through (w) as paragraphs (n) through (x), respectively, and by adding
a new paragraph (m) to read as follows:
Sec. 3160.0-5 Definitions.
* * * * *
(m) National Forest System lands means all National Forest lands
reserved or withdrawn from the public domain of the United States, all
National Forest lands acquired through purchase, exchange, donation, or
other means, the National Grasslands and land utilization projects
administered by the Forest Service under title III of the Bankhead-
Jones Farm Tenant Act (7 U.S.C. 1010 et seq.), and other lands, waters
or interests therein which are administered by the Forest Service or
are designated for administration through the Forest Service as a part
of the System (16 U.S.C. 1609).
* * * * *
4. In Sec. 3161.1 paragraph (a) is revised to read as follows:
Sec. 3161.1 Jurisdiction.
(a) All operations conducted on a Federal or Indian oil and gas
lease by the operator are subject to the regulations in this part
except as provided in Sec. 3161.3.
* * * * *
5. Section 3161.2 is revised to read as follows:
Sec. 3161.2 Responsibility of the authorized officer.
Except as provided in Sec. 3161.3 of this title, the authorized
officer is authorized and directed to approve unitization,
communitization, gas storage and other contractual agreements for
Federal lands; to assess compensatory royalty; to approve suspensions
of operations or production, or both; to issue NTLs; to approve and
monitor other operator proposals for drilling, development or
production of oil and gas; to perform administrative reviews; to impose
monetary assessments or penalties; to provide technical information and
advice relative to oil and gas development and operations on Federal
and Indian lands; to enter into cooperative agreements with States,
Federal agencies and Indian tribes relative to oil and gas development
and operations; to approve, inspect and regulate the operations that
are subject to the regulations in this part; to require compliance with
lease terms, with the regulations in this title and all other
applicable regulations promulgated under the cited laws; and to require
that all operations be conducted in a manner which protects other
natural resources and environmental quality, protects life and property
and results in the maximum ultimate recovery of oil and gas with
minimum waste and with minimum adverse effect on the ultimate recovery
of other mineral resources. The authorized officer may issue written or
oral orders to govern specific lease operations. Any such oral orders
shall be confirmed in writing by the authorized officer within 10
working days from issuance thereof. Before approving operations on
leasehold, the authorized officer shall determine that the lease is in
effect, that acceptable bond coverage has been provided and that except
as provided in Sec. 3161.3 of this title the proposed plan of
operations is sound both from a technical and environmental standpoint.
Sec. 3161.3 [Redesignated as Sec. 3161.4]
6. Section 3161.3 is redesignated as Sec. 3161.4.
7. A new Sec. 3161.3 is added as follows:
Sec. 3161.3 Responsibility of the authorized officer on National
Forest System lands.
(a) The authorized officer is responsible for the approval,
inspection, and regulation of drilling, development and production
operations on National Forest System lands to the same extent as
described in Sec. 3161.2 of this title except that the authorized
officer has no responsibility for the approval, enforcement,
modification or revocation of any surface use plan of operations
covering National Forest System lands. Approval of Applications for
Permit to Drill, or approval of other proposed actions that would
involve additional surface disturbance or reclamation, shall not be
granted for operations to be conducted on National Forest System lands
until the authorized representative of the Secretary of Agriculture has
approved a surface use plan of operations covering related surface-
disturbing activities. The authorized officer has the right to
reexamine Applications for Permit to Drill, and other proposed
development or production activities on National Forest System lands,
if a related surface use plan of operations is revoked, modified or
amended by the authorized representative of the Secretary of
Agriculture.
(b) A surface use plan of operations related to the operator's
proposed oil and gas operations must be furnished to the authorized
officer for informational purposes at the time the operator submits an
Application for Permit to Drill or other development or operational
proposals applying to National Forest System lands.
8. In Sec. 3162.3-1 paragraph (d)(1) is amended by removing the
period and adding a semicolon in its place, paragraph (d)(3) is amended
by removing ``, and'' and adding ``; and'' in its place, and paragraph
(d)(2) is revised to read as follows:
Sec. 3162.3-1 Drilling applications and plans.
* * * * *
(d) * * *
(2) A surface use plan of operations containing information
required by paragraph (f) of this section and appropriate orders and
notices, except on National Forest System lands a surface use plan of
operations is not required as part of an Application for Permit to
Drill;
* * * * *
9. Paragraph (a) of Sec. 3162.3-2 is revised to read as follows:
Sec. 3162.3-2 Subsequent well operations.
(a) A proposal for further well operations shall be submitted by
the operator on Form 3160-5 and approved by the authorized officer
prior to commencing operations to redrill, perform casing repairs,
plug-back, alter casing, perform nonroutine fracturing jobs, recomplete
in a different interval, perform water shut off, commingle production
between intervals and/or convert to an injection well. If there will be
additional surface disturbance, the proposal shall include a surface
use plan of operations as an integral part of the proposal unless it
comes within the exception provided in Sec. 3161.3, in which case a
copy of such surface use plan must be provided in accordance with
Sec. 3161.3(b). The authorized officer may prescribe that each proposal
contain all or a portion of the information set forth in Sec. 3162.3-1
of this part. The operator shall file a subsequent report of these
operations with the authorized officer using Form 3160-5.
* * * * *
10. Section 3162.3-3 is revised to read as follows:
Sec. 3162.3-3 Other lease operations.
Prior to commencing any operation on the leasehold that will result
in additional surface disturbance, other than those activities
authorized under Sec. 3162.3-1 or Sec. 3162.3-2 of this title, the
operator shall submit a proposal on Form 3160-5 and receive approval of
the authorized officer. The proposal
[[Page 58593]]
shall include a surface use plan of operations as an integral part of
the proposal unless it comes within the exception provided in
Sec. 3161.3 of this title, in which case a copy of such surface use
plan must be provided in accordance with Sec. 3161.3(b).
11. Paragraph (c) of Sec. 3162.3-4 is amended by revising the last
sentence to read as follows:
Sec. 3162.3-4 Well abandonment.
* * * * *
(c) * * * Upon the removal of drilling or producing equipment from
the site of a well that is to be permanently abandoned, the surface of
the lands disturbed in connection with the conduct of operations shall
be reclaimed in accordance with a plan already approved or prescribed
by the authorized officer or, where appropriate, where approved by the
authorized representative of the Secretary of Agriculture as provided
in Sec. 3161.3 of this title.
Dated: November 13, 1995.
Bob Armstrong,
Assistant Secretary of the Interior.
[FR Doc. 95-28965 Filed 11-27-95; 8:45 am]
BILLING CODE 4310-84-P
