[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: 43CFR3162.7-5]
[Page 440-442]
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. 3162.7-5 Site security on Federal and Indian (except Osage) oil and gas leases.
(a) Definitions. Appropriate valves. Those valves in a particular
piping system, i.e., fill lines, equalizer or overflow lines, sales
lines, circulating lines, and drain lines that shall be sealed during a
given operation.
Effectively sealed. The placement of a seal in such a manner that
the position of the sealed valve may not be altered without the seal
being destroyed.
Production phase. That period of time or mode of operation during
which
[[Page 441]]
crude oil is delivered directly to or through production vessels to the
storage facilities and includes all operations at the facility other
than those defined by the sales phase.
Sales phase. That period of time or mode of operation during which
crude oil is removed from the storage facilities for sales,
transportation or other purposes.
Seal. A device, uniquely numbered, which completely secures a valve.
(b) Minimum Standards. Each operator of a Federal or Indian lease
shall comply with the following minimum standards to assist in providing
accountability of oil or gas production:
(1) All lines entering or leaving oil storage tanks shall have
valves capable of being effectively sealed during the production and
sales operations unless otherwise modified by other subparagraphs of
this paragraph, and any equipment needed for effective sealing,
excluding the seals, shall be located at the site. For a minimum of 6
years the operator shall maintain a record of seal numbers used and
shall document on which valves or connections they were used as well as
when they were installed and removed. The site facility diagram(s) shall
show which valves will be sealed in which position during both the
production and sales phases of operation.
(2) Each Lease Automatic Custody Transfer (LACT) system shall employ
meters that have non-resettable totalizers. There shall be no by-pass
piping around the LACT. All components of the LACT that are used for
volume or quality determinations of the oil shall be effectively sealed.
For systems where production may only be removed through the LACT, no
sales or equalizer valves need be sealed. However, any valves which may
allow access for removal of oil before measurement through the LACT
shall be effectively sealed.
(3) There shall be no by-pass piping around gas meters. Equipment
which permits changing the orifice plate without bleeding the pressure
off the gas meter run is not considered a by-pass.
(4) For oil measured and sold by hand gauging, all appropriate
valves shall be sealed during the production or sales phase, as
applicable.
(5) Circulating lines having valves which may allow access to remove
oil from storage and sales facilities to any other source except through
the treating equipment back to storage shall be effectively sealed as
near the storage tank as possible.
(6) The operator, with reasonable frequency, shall inspect all
leases to determine production volumes and that the minimum site
security standards are being met. The operator shall retain records of
such inspections and measurements for 6 years from generation. Such
records and measurements shall be available to any authorized officer or
authorized representative upon request.
(7) Any person removing oil from a facility by motor vehicle shall
possess the identification documentation required by appicable NTL's or
onshore Orders while the oil is removed and transported.
(8) Theft or mishandling of oil from a Federal or Indian lease shall
be reported to the authorized officer as soon as discovered, but not
later than the next business day. Said report shall include an estimate
of the volume of oil involved. Operators also are expected to report
such thefts promptly to local law enforcement agencies and internal
company security.
(9) Any operator may request the authorized officer to approve a
variance from any of the minimum standards prescribed by this section.
The variance request shall be submitted in writing to the authorized
officer who may consider such factors as regional oil field facility
characteristics and fenced, guarded sites. The authorized officer may
approve a variance if the proposed alternative will ensure measures
equal to or in excess of the minimum standards provided in paragraph (b)
of this section wil be put in place to detect or prevent internal and
external theft, and will result in proper production accountability.
(c) Site security plans. (1) Site security plans, which include the
operator's plan for complying with the minimum standards enumerated in
paragraph (b) of this section for ensuring accountability of oil/
condensate production are
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required for all facilities and such facilities shall be maintained in
compliance with the plan. For new facilities, notice shall be given that
it is subject to a specific existing plan, or a notice of a new plan
shall be submitted, no later than 60 days after completion of
construction or first production or following the inclusion of a well on
committed non-Federal lands into a federally supervised unit or
communitization agreement, whichever occurs first, and on that date the
facilities shall be in compliance with the plan. At the operator's
option, a single plan may include all of the operator's leases, unit and
communitized areas, within a single BLM district, provided the plan
clearly identifies each lease, unit, or communitized area included
within the scope of the plan and the extent to which the plan is
applicable to each lease, unit, or communitized area so identified.
(2) The operator shall retain the plan but shall notify the
authorized officer of its completion and which leases, unit and
communitized areas are involved. Such notification is due at the time
the plan is completed as required by paragraph (c)(1) of this section,
Such notification shall include the location and normal business hours
of the office where the plan will be maintained. Upon request, all plans
shall be made available to the authorized officer.
(3) The plan shall include the frequency and method of the
operator's inspection and production volume recordation. The authorized
officer may, upon examination, require adjustment of the method or
frequency of inspection.
(d) Site facility diagrams. (1) Facility diagrams are required for
all facilities which are used in storing oil/condensate produced from,
or allocated to, Federal or Indian lands. Facility diagrams shall be
filed within 60 days after new measurement facilities are installed or
existing facilities are modified or following the inclusion of the
facility into a federally supervised unit or communitization agreement.
(2) No format is prescribed for facility diagrams. They are to be
prepared on 8\1/2\x11 paper, if possible, and be
legible and comprehensible to a person with ordinary working knowledge
of oil field operations and equipment. The diagram need not be drawn to
scale.
(3) A site facility diagram shall accurately reflect the actual
conditions at the site and shall, commencing with the header if
applicable, clearly identify the vessels, piping, metering system, and
pits, if any, which apply to the handling and disposal of oil, gas and
water. The diagram shall indicate which valves shall be sealed and in
what position during the production or sales phase. The diagram shall
clearly identify the lease on which the facility is located and the site
security plan to which it is subject, along with the location of the
plan.
[47 FR 47765, Oct. 27, 1982. Redesignated at 48 FR 36583-36586, Aug. 12,
1983, and amended at 52 FR 5392, Feb. 20, 1987. Redesignated at 53 FR
1218, Jan. 15, 1988; 53 FR 24688, June 30, 1988]