[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: 43CFR3162.7-1]



[Page 438-439]

 

                    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 3162_Requirements for Operating Rights Owners and Operators

 

Sec.  3162.7-1  Disposition of production.



    (a) The operator shall put into marketable condition, if 

economically feasible, all oil, other hydrocarbons, gas, and sulphur 

produced from the leased land.

    (b) Where oil accumulates in a pit, such oil must either be (1) 

recirculated through the regular treating system and returned to the 

stock tanks for sale, or (2) pumped into a stock tank without treatment 

and measured for sale in the same manner as from any sales tank in 

accordance with applicable orders and notices. In the absence of prior 

approval from the authorized officer, no oil should go to a pit except 

in an emergency. Each such occurrence must be reported to the authorized 

officer and the oil promptly recovered in accordance with applicable 

orders and notices.

    (c)(1) Any person engaged in transporting by motor vehicle any oil 

from any lease site, or allocated to any such lease site, shall carry on 

his/her person, in his/her vehicle, or in his/her immediate control, 

documentation showing at a minimum; the amount, origin, and intended 

first purchaser of the oil.

    (2) Any person engaged in transporting any oil or gas by pipeline 

from any lease site, or allocated to any lease site, shall maintain 

documentation showing, at a minimum, the amount, origin, and intended 

first purchaser of such oil or gas.

    (3) On any lease site, any authorized representative who is properly 

identified may stop and inspect any motor vehicle that he/she has 

probable cause to believe is carrying oil from any such lease site, or 

allocated to such lease site, to determine whether the driver



[[Page 439]]



possesses proper documentation for the load of oil.

    (4) Any authorized representative who is properly identified and who 

is accompanied by an appropriate law enforcement officer, or an 

appropriate law enforcement officer alone, may stop and inspect any 

motor vehicle which is not on a lease site if he/she has probable cause 

to believe the vehicle is carrying oil from a lease site, or allocated 

to a lease site, to determine whether the driver possesses proper 

documentation for the load of oil.

    (d) The operator shall conduct operations in such a manner as to 

prevent avoidable loss of oil and gas. A operator shall be liable for 

royalty payments on oil or gas lost or wasted from a lease site, or 

allocated to a lease site, when such loss or waste is due to negligence 

on the part of the operator of such lease, or due to the failure of the 

operator to comply with any regulation, order or citation issued 

pursuant to this part.

    (e) When requested by the authorized officer, the operator shall 

furnish storage for royalty oil, on the leasehold or at a mutually 

agreed upon delivery point off the leased land without cost to the 

lessor, for 30 days following the end of the calendar month in which the 

royalty accrued.

    (f) Any records generated under this section shall be maintained for 

6 years from the date they were generated or, if notified by the 

Secretary, or his designee, that such records are involved in an audit 

or investigation, the records shall be maintained until the recordholder 

is released by the Secretary from the obligation to maintain them.



[47 FR 47765, Oct. 27, 1982. Redesignated and amended at 48 FR 36583-

36586, Aug. 12, 1983; 49 FR 37364, Sept. 21, 1984; 53 FR 17363, May 16, 

1988]