[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 43CFR3160.0-5]



[Page 425-427]

 

                    TITLE 43--PUBLIC LANDS: INTERIOR

 

    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR

 

PART 3160_ONSHORE OIL AND GAS OPERATIONS--Table of Contents

 

          Subpart 3160_Onshore Oil and Gas Operations: General

 

Sec.  3160.0-5  Definitions.



    As used in this part, the term:

    Authorized representative means any entity or individual authorized 

by the Secretary to perform duties by cooperative agreement, delegation 

or contract.

    Avoidably lost means the venting or flaring of produced gas without 

the prior authorization, approval, ratification or acceptance of the 

authorized officer and the loss of produced oil or gas when the 

authorized officer determines that such loss occurred as a result of:

    (1) Negligence on the part of the operator; or

    (2) The failure of the operator to take all reasonable measures to 

prevent and/or control the loss; or

    (3) The failure of the operator to comply fully with the applicable 

lease terms and regulations, applicable orders and notices, or the 

written orders of the authorized officer; or

    (4) Any combination of the foregoing.

    Drainage means the migration of hydrocarbons, inert gases (other 

than helium), or associated resources caused by production from other 

wells.

    Federal lands means all lands and interests in lands owned by the 

United States which are subject to the mineral leasing laws, including 

mineral resources or mineral estates reserved to the United States in 

the conveyance of a surface or nonmineral estate.

    Fresh water means water containing not more than 1,000 ppm of total 

dissolved solids, provided that such water does not contain 

objectionable levels of any constituent that is toxic to animal, plant 

or acquatic life, unless otherwise specified in applicable notices or 

orders.

    Knowingly or willfully means a violation that constitutes the 

voluntary or conscious performance of an act that is prohibited or the 

voluntary or conscious failure to perform an act or duty that is 

required. It does not include performances or failures to perform that 

are honest mistakes or merely inadvertent. It includes, but does not 

require, performances or failures to perform that result from a criminal 

or evil



[[Page 426]]



intent or from a specific intent to violate the law. The knowing or 

willful nature of conduct may be established by plain indifference to or 

reckless disregard of the requirements of the law, regulations, orders, 

or terms of the lease. A consistent pattern of performance or failure to 

perform also may be sufficient to establish the knowing or willful 

nature of the conduct, where such consistent pattern is neither the 

result of honest mistakes or mere inadvertency. Conduct that is 

otherwise regarded as being knowing or willful is rendered neither 

accidental nor mitigated in character by the belief that the conduct is 

reasonable or legal.

    Lease means any contract, profit-share arrangement, joint venture or 

other agreement issued or approved by the United States under a mineral 

leasing law that authorizes exploration for, extraction of or removal of 

oil or gas.

    Lease site means any lands, including the surface of a severed 

mineral estate, on which exploration for, or extraction and removal of, 

oil or gas is authorized under a lease.

    Lessee means any person holding record title or owning operating 

rights in a lease issued or approved by the United States.

    Lessor means the party to a lease who holds legal or beneficial 

title to the mineral estate in the leased lands.

    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.

    Maximum ultimate economic recovery means the recovery of oil and gas 

from leased lands which a prudent operator could be expected to make 

from that field or reservoir given existing knowledge of reservoir and 

other pertinent facts and utilizing common industry practices for 

primary, secondary or tertiary recovery operations.

    Minor violation means noncompliance that does not rise to the level 

of a major violation.

    New or resumed production under section 102(b)(3) of the Federal Oil 

and Gas Royalty Management Act means the date on which a well commences 

production, or resumes production after having been off production for 

more than 90 days, and is to be construed as follows:

    (1) For an oil well, the date on which liquid hydrocarbons are first 

sold or shipped from a temporary storage facility, such as a test tank, 

or the date on which liquid hydrocarbons are first produced into a 

permanent storage facility, whichever first occurs; and

    (2) For a gas well, the date on which gas is first measured through 

sales metering facilities or the date on which associated liquid 

hydrocarbons are first sold or shipped from a temporary storage 

facility, whichever first occurs. For purposes of this provision, a gas 

well shall not be considered to have been off of production unless it is 

incapable of production.

    Notice to lessees and operators (NTL) means a written notice issued 

by the authorized officer. NTL's implement the regulations in this part 

and operating orders, and serve as instructions on specific item(s) of 

importance within a State, District, or Area.

    Onshore oil and gas order means a formal numbered order issued by 

the Director that implements and supplements the regulations in this 

part.

    Operating rights owner means a person who owns operating rights in a 

lease. A record title holder may also be an operating rights owner in a 

lease if it did not transfer all of its operating rights.

    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 a 

portion thereof.

    Paying well means a well that is capable of producing oil or gas of 

sufficient value to exceed direct operating costs and the costs of lease 

rentals or minimum royalty.

    Person means any individual, firm, corporation, association, 

partnership, consortium or joint venture.

    Production in paying quantities means production from a lease of oil 

and/or gas of sufficient value to exceed direct operating costs and the 

cost of lease rentals or minimum royalties.

    Protective well means a well drilled or modified to prevent or 

offset drainage



[[Page 427]]



of oil and gas resources from its Federal or Indian lease.

    Record title holder means the person(s) to whom BLM or an Indian 

lessor issued a lease or approved the assignment of record title in a 

lease.

    Superintendent means the superintendent of an Indian Agency, or 

other officer authorized to act in matters of record and law with 

respect to oil and gas leases on restricted Indian lands.

    Surface use plan of operations means a plan for surface use, 

disturbance, and reclamation.

    Waste of oil or gas means any act or failure to act by the operator 

that is not sanctioned by the authorized officer as necessary for proper 

development and production and which results in: (1) A reduction in the 

quantity or quality of oil and gas ultimately producible from a 

reservoir under prudent and proper operations; or (2) avoidable surface 

loss of oil or gas.



[53 FR 17362, May 16, 1988, as amended at 53 FR 22846, June 17, 1988; 66 

FR 1892, Jan. 10, 2001]