American Oil and Gas Reporter - December 2016 - 33

and restores congressionally authorized
flexibility to set royalty rates at or above
12.5 percent of the value of production,
consistent with the Mineral Leasing Act's
statutory authority. The department adds
that regulations now specify a 12.5 percent
rate with no discretion to adjust it to meet
changing conditions.
Under the new regulations, operators
will be required to capture most of their
gas after accounting for specified volumes
of allowed flaring. The capture targets
phase in from 2018 to 2026, increasing
from 85 percent to 98 percent of associated gas produced from development oil
wells, DOI says. Capture targets do not apply to "flaring allowable" volumes, which
decrease from 5.4 million cubic feet a well
in 2018 to 750 Mcf in 2025. According to
DOI, those targets could be met lease-bylease or through averaging statewide
across all of an operators' operations on
federal and Indian leases.
Under the rule, DOI says operators may
comply with proposed flaring limits by:
* Expanding gas-capture infrastructure, such as installing compressors to increase pipeline capacity or connecting
wells to infrastructure through gathering
lines;
* Adopting alternative on-site capture
technologies, including gas compression,
or stripping out natural gas liquids and
trucking the product to a gas processing
plant; or
* Temporarily slowing well production to minimize losses until capture infrastructure is installed.
Operators will be required to replace
high-bleed continuous pneumatic controllers with low/zero-bleed units within one
year, and also within a year replace pneumatic diaphragm pumps with solar pumps,
if adequate for the function, or route the
pumps to a flare if one is available on site.
Also within that time, the new rules require
operators to capture or flare gas from
storage tanks that vent more than six tons
of volatile organic compounds annually.
Other provisions of the Methane and
Waste Prevention Rule include:
* Excess flaring beyond the capture
target requires royalty payments, and is
subject to enforcement.
* Provisions for alternative requirements if meeting capture targets would
cause an operator to cease production and
abandon significant recoverable reserves
under a lease.
* Operators are required to measure
flared volumes through meters, or calculations based on gas-to-oil ratios when
flared volumes reach 50 Mcf/d.
* Operators must use instrumentbased leak detection programs to find and
repair leaks, using infrared cameras;

portable analyzers backed by audio, visual or olfactory inspections; or other BLMapproved methods.
* All sites except compressor stations
must be inspected semiannually; compressor stations must be inspected quarterly.
Other Objections
The BLM's rush to regulate something
already regulated at state and federal levels is an example of poor government policy, responds Erik Milito, director of upstream and industry operations for the
American Petroleum Institute. He warns
the new regulations could stifle the innovations that have led to the nation's environmental successes.
"Even as America is leading the world
in oil and natural gas production, methane
emissions have fallen, thanks to industry
leadership and investment in new technologies," Milito says. "U.S. carbon emissions
now are near 20-year lows because of increased use of natural gas, and the U.S. energy renaissance has saved drivers $550
in fuel costs and saved American households an average of $1,337 in energy expenditures in 2015."
If BLM's goal is to prevent emissions
rather than impede U.S. energy production,
the bureau should focus on fixing permitting, infrastructure and pipeline delays that
slow the capture of natural gas, Milito urges.
The Montana Petroleum Association
points out the final venting and flaring
rules would, according to BLM's most ambitious estimates, reduce U.S. greenhouse
gas emissions by 0.0092 percent.
"Oil and gas producers are reeling from
the effects of the most serious downturn
in nearly 40 years. (These) rules will place
a tremendous economic burden on energy development without any real benefit,"
MPA argues. "According to EPA, the entire oil and natural gas industry represents
a mere 3.4 percent of total U.S. GHG
emissions. Methane emissions from exploration and production represent only 1.07
percent of total GHG emissions in the
United States."
Adds MPA Executive Director Alan Olson, "Our industry has made great strides
over the past several years to manage emissions through rules implemented at the state
level, but we need infrastructure to capture
and move gas to markets. That means
pipelines. To build pipelines, we need a predictable regulatory climate, which is something (the Obama) administration has
robbed from business owners."
The rule, and its regulatory impact
analysis and environmental assessment, are
available at http://www.blm.gov/programs/energy-and-minerals/oil-andgas/operations-and-production/methaneand-waste-prevention-rule.
❒

ARTICLE

REPRINTS

✔ Professional
✔ Custom
✔ Quality
✔ Four-color
✔ Organized reproduction
✔ Include your advertisment
✔ Add your company logo
✔ 1,000 copies
✔ Up to 10,000 copies
✔ More than 10,000 copies

THE SMART
MARKETING TOOL!
For more information or
to order reprints contact:
NORA MOTA MAGILL
1-800-847-8301
001-316-788-6271
nmotamagill@aogr.com

www.aogr.com
DECEMBER 2016 33


http://www.blm.gov/programs/energy-and-minerals/oil-andgas/operations-and-production/methaneand-waste-prevention-rule http://www.aogr.com http://www.blm.gov/programs/energy-and-minerals/oil-andgas/operations-and-production/methaneand-waste-prevention-rule http://www.blm.gov/programs/energy-and-minerals/oil-andgas/operations-and-production/methaneand-waste-prevention-rule

American Oil and Gas Reporter - December 2016

Table of Contents for the Digital Edition of American Oil and Gas Reporter - December 2016

Contents
American Oil and Gas Reporter - December 2016 - Cover1
American Oil and Gas Reporter - December 2016 - Cover2
American Oil and Gas Reporter - December 2016 - Contents
American Oil and Gas Reporter - December 2016 - 4
American Oil and Gas Reporter - December 2016 - 5
American Oil and Gas Reporter - December 2016 - 6
American Oil and Gas Reporter - December 2016 - 7
American Oil and Gas Reporter - December 2016 - 8
American Oil and Gas Reporter - December 2016 - 9
American Oil and Gas Reporter - December 2016 - 10
American Oil and Gas Reporter - December 2016 - 11
American Oil and Gas Reporter - December 2016 - 12
American Oil and Gas Reporter - December 2016 - 13
American Oil and Gas Reporter - December 2016 - 14
American Oil and Gas Reporter - December 2016 - 15
American Oil and Gas Reporter - December 2016 - 16
American Oil and Gas Reporter - December 2016 - 17
American Oil and Gas Reporter - December 2016 - 18
American Oil and Gas Reporter - December 2016 - 19
American Oil and Gas Reporter - December 2016 - 20
American Oil and Gas Reporter - December 2016 - 21
American Oil and Gas Reporter - December 2016 - 22
American Oil and Gas Reporter - December 2016 - 23
American Oil and Gas Reporter - December 2016 - 24
American Oil and Gas Reporter - December 2016 - 25
American Oil and Gas Reporter - December 2016 - 26
American Oil and Gas Reporter - December 2016 - 27
American Oil and Gas Reporter - December 2016 - 28
American Oil and Gas Reporter - December 2016 - 29
American Oil and Gas Reporter - December 2016 - 30
American Oil and Gas Reporter - December 2016 - 31
American Oil and Gas Reporter - December 2016 - 32
American Oil and Gas Reporter - December 2016 - 33
American Oil and Gas Reporter - December 2016 - 34
American Oil and Gas Reporter - December 2016 - 35
American Oil and Gas Reporter - December 2016 - 36
American Oil and Gas Reporter - December 2016 - 37
American Oil and Gas Reporter - December 2016 - 38
American Oil and Gas Reporter - December 2016 - 39
American Oil and Gas Reporter - December 2016 - 40
American Oil and Gas Reporter - December 2016 - 41
American Oil and Gas Reporter - December 2016 - 42
American Oil and Gas Reporter - December 2016 - 43
American Oil and Gas Reporter - December 2016 - 44
American Oil and Gas Reporter - December 2016 - 45
American Oil and Gas Reporter - December 2016 - 46
American Oil and Gas Reporter - December 2016 - 47
American Oil and Gas Reporter - December 2016 - 48
American Oil and Gas Reporter - December 2016 - 49
American Oil and Gas Reporter - December 2016 - 50
American Oil and Gas Reporter - December 2016 - 51
American Oil and Gas Reporter - December 2016 - 52
American Oil and Gas Reporter - December 2016 - 53
American Oil and Gas Reporter - December 2016 - 54
American Oil and Gas Reporter - December 2016 - 55
American Oil and Gas Reporter - December 2016 - 56
American Oil and Gas Reporter - December 2016 - 57
American Oil and Gas Reporter - December 2016 - 58
American Oil and Gas Reporter - December 2016 - 59
American Oil and Gas Reporter - December 2016 - 60
American Oil and Gas Reporter - December 2016 - 61
American Oil and Gas Reporter - December 2016 - 62
American Oil and Gas Reporter - December 2016 - 63
American Oil and Gas Reporter - December 2016 - 64
American Oil and Gas Reporter - December 2016 - 65
American Oil and Gas Reporter - December 2016 - 66
American Oil and Gas Reporter - December 2016 - 67
American Oil and Gas Reporter - December 2016 - 68
American Oil and Gas Reporter - December 2016 - 69
American Oil and Gas Reporter - December 2016 - 70
American Oil and Gas Reporter - December 2016 - 71
American Oil and Gas Reporter - December 2016 - 72
American Oil and Gas Reporter - December 2016 - 73
American Oil and Gas Reporter - December 2016 - 74
American Oil and Gas Reporter - December 2016 - 75
American Oil and Gas Reporter - December 2016 - 76
American Oil and Gas Reporter - December 2016 - 77
American Oil and Gas Reporter - December 2016 - 78
American Oil and Gas Reporter - December 2016 - 79
American Oil and Gas Reporter - December 2016 - 80
American Oil and Gas Reporter - December 2016 - 81
American Oil and Gas Reporter - December 2016 - 82
American Oil and Gas Reporter - December 2016 - 83
American Oil and Gas Reporter - December 2016 - 84
American Oil and Gas Reporter - December 2016 - 85
American Oil and Gas Reporter - December 2016 - 86
American Oil and Gas Reporter - December 2016 - 87
American Oil and Gas Reporter - December 2016 - 88
American Oil and Gas Reporter - December 2016 - 89
American Oil and Gas Reporter - December 2016 - 90
American Oil and Gas Reporter - December 2016 - 91
American Oil and Gas Reporter - December 2016 - 92
American Oil and Gas Reporter - December 2016 - 93
American Oil and Gas Reporter - December 2016 - 94
American Oil and Gas Reporter - December 2016 - 95
American Oil and Gas Reporter - December 2016 - 96
American Oil and Gas Reporter - December 2016 - 97
American Oil and Gas Reporter - December 2016 - 98
American Oil and Gas Reporter - December 2016 - 99
American Oil and Gas Reporter - December 2016 - 100
American Oil and Gas Reporter - December 2016 - 101
American Oil and Gas Reporter - December 2016 - 102
American Oil and Gas Reporter - December 2016 - 103
American Oil and Gas Reporter - December 2016 - 104
American Oil and Gas Reporter - December 2016 - 105
American Oil and Gas Reporter - December 2016 - 106
American Oil and Gas Reporter - December 2016 - Cover3
American Oil and Gas Reporter - December 2016 - Cover4
https://www.nxtbook.com/nxtbooks/aogr/202403
https://www.nxtbook.com/nxtbooks/aogr/202402
https://www.nxtbook.com/nxtbooks/aogr/202401
https://www.nxtbook.com/nxtbooks/aogr/202312
https://www.nxtbook.com/nxtbooks/aogr/202311
https://www.nxtbook.com/nxtbooks/aogr/pbios_202310
https://www.nxtbook.com/nxtbooks/aogr/202309
https://www.nxtbook.com/nxtbooks/aogr/202308
https://www.nxtbook.com/nxtbooks/aogr/202307
https://www.nxtbook.com/nxtbooks/aogr/202306
https://www.nxtbook.com/nxtbooks/aogr/202305
https://www.nxtbook.com/nxtbooks/aogr/202304
https://www.nxtbook.com/nxtbooks/aogr/202303
https://www.nxtbook.com/nxtbooks/aogr/202302
https://www.nxtbook.com/nxtbooks/aogr/202301
https://www.nxtbook.com/nxtbooks/aogr/202212
https://www.nxtbook.com/nxtbooks/aogr/202211
https://www.nxtbook.com/nxtbooks/aogr/202210
https://www.nxtbook.com/nxtbooks/aogr/202209
https://www.nxtbook.com/nxtbooks/aogr/202208
https://www.nxtbook.com/nxtbooks/aogr/202207
https://www.nxtbook.com/nxtbooks/aogr/202206
https://www.nxtbook.com/nxtbooks/aogr/202205
https://www.nxtbook.com/nxtbooks/aogr/202204
https://www.nxtbook.com/nxtbooks/aogr/202203
https://www.nxtbook.com/nxtbooks/aogr/202202
https://www.nxtbook.com/nxtbooks/aogr/202201
https://www.nxtbook.com/nxtbooks/aogr/202112
https://www.nxtbook.com/nxtbooks/aogr/202111
https://www.nxtbook.com/nxtbooks/aogr/pbios_202110
https://www.nxtbook.com/nxtbooks/aogr/202109
https://www.nxtbook.com/nxtbooks/aogr/202108
https://www.nxtbook.com/nxtbooks/aogr/202107
https://www.nxtbook.com/nxtbooks/aogr/202106
https://www.nxtbook.com/nxtbooks/aogr/202105
https://www.nxtbook.com/nxtbooks/aogr/202104
https://www.nxtbook.com/nxtbooks/aogr/202103
https://www.nxtbook.com/nxtbooks/aogr/202102
https://www.nxtbook.com/nxtbooks/aogr/202101
https://www.nxtbook.com/nxtbooks/aogr/202012
https://www.nxtbook.com/nxtbooks/aogr/202011
https://www.nxtbook.com/nxtbooks/aogr/202010
https://www.nxtbook.com/nxtbooks/aogr/202009
https://www.nxtbook.com/nxtbooks/aogr/202008
https://www.nxtbook.com/nxtbooks/aogr/202007
https://www.nxtbook.com/nxtbooks/aogr/202006
https://www.nxtbook.com/nxtbooks/aogr/202005
https://www.nxtbook.com/nxtbooks/aogr/202004
https://www.nxtbook.com/nxtbooks/aogr/202003
https://www.nxtbook.com/nxtbooks/aogr/202002
https://www.nxtbook.com/nxtbooks/aogr/202001
https://www.nxtbook.com/nxtbooks/aogr/201912
https://www.nxtbook.com/nxtbooks/aogr/201911
https://www.nxtbook.com/nxtbooks/aogr/201910
https://www.nxtbook.com/nxtbooks/aogr/201909
https://www.nxtbook.com/nxtbooks/aogr/201908
https://www.nxtbook.com/nxtbooks/aogr/201907
https://www.nxtbook.com/nxtbooks/aogr/201906
https://www.nxtbook.com/nxtbooks/aogr/201905
https://www.nxtbook.com/nxtbooks/aogr/201904
https://www.nxtbook.com/nxtbooks/aogr/201903
https://www.nxtbook.com/nxtbooks/aogr/201902
https://www.nxtbook.com/nxtbooks/aogr/201901
https://www.nxtbook.com/nxtbooks/aogr/201812
https://www.nxtbook.com/nxtbooks/aogr/201811
https://www.nxtbook.com/nxtbooks/aogr/201810
https://www.nxtbook.com/nxtbooks/aogr/pbios_201810
https://www.nxtbook.com/nxtbooks/aogr/201809
https://www.nxtbook.com/nxtbooks/aogr/201808
https://www.nxtbook.com/nxtbooks/aogr/201807
https://www.nxtbook.com/nxtbooks/aogr/201806
https://www.nxtbook.com/nxtbooks/aogr/201805
https://www.nxtbook.com/nxtbooks/aogr/201804
https://www.nxtbook.com/nxtbooks/aogr/201803
https://www.nxtbook.com/nxtbooks/aogr/201802
https://www.nxtbook.com/nxtbooks/aogr/201801
https://www.nxtbook.com/nxtbooks/aogr/201712
https://www.nxtbook.com/nxtbooks/aogr/201711
https://www.nxtbook.com/nxtbooks/aogr/201710
https://www.nxtbook.com/nxtbooks/aogr/201709
https://www.nxtbook.com/nxtbooks/aogr/201708
https://www.nxtbook.com/nxtbooks/aogr/201707
https://www.nxtbook.com/nxtbooks/aogr/201706
https://www.nxtbook.com/nxtbooks/aogr/201705
https://www.nxtbook.com/nxtbooks/aogr/201704
https://www.nxtbook.com/nxtbooks/aogr/201703
https://www.nxtbook.com/nxtbooks/aogr/201702
https://www.nxtbook.com/nxtbooks/aogr/201701
https://www.nxtbook.com/nxtbooks/aogr/201612
https://www.nxtbook.com/nxtbooks/aogr/201611
https://www.nxtbook.com/nxtbooks/aogr/201610
https://www.nxtbook.com/nxtbooks/aogr/pbios2016_programguide
https://www.nxtbook.com/nxtbooks/aogr/201609
https://www.nxtbook.com/nxtbooks/aogr/201608
https://www.nxtbook.com/nxtbooks/aogr/201607
https://www.nxtbook.com/nxtbooks/aogr/201606
https://www.nxtbook.com/nxtbooks/aogr/201605
https://www.nxtbook.com/nxtbooks/aogr/201604
https://www.nxtbook.com/nxtbooks/aogr/201603
https://www.nxtbook.com/nxtbooks/aogr/201602
https://www.nxtbook.com/nxtbooks/aogr/201601
https://www.nxtbook.com/nxtbooks/aogr/201512
https://www.nxtbook.com/nxtbooks/aogr/201511
https://www.nxtbook.com/nxtbooks/aogr/201510
https://www.nxtbook.com/nxtbooks/aogr/201509
https://www.nxtbook.com/nxtbooks/aogr/201508
https://www.nxtbook.com/nxtbooks/aogr/201507
https://www.nxtbook.com/nxtbooks/aogr/201506
https://www.nxtbook.com/nxtbooks/aogr/201505
https://www.nxtbook.com/nxtbooks/aogr/201504
https://www.nxtbook.com/nxtbooks/aogr/201503
https://www.nxtbook.com/nxtbooks/aogr/201502
https://www.nxtbook.com/nxtbooks/aogr/201501
https://www.nxtbook.com/nxtbooks/aogr/201412
https://www.nxtbook.com/nxtbooks/aogr/201411
https://www.nxtbook.com/nxtbooks/aogr/201410
https://www.nxtbook.com/nxtbooks/aogr/201409
https://www.nxtbook.com/nxtbooks/aogr/pbios2014_programguide
https://www.nxtbook.com/nxtbooks/aogr/201408
https://www.nxtbook.com/nxtbooks/aogr/201407
https://www.nxtbook.com/nxtbooks/aogr/201406
https://www.nxtbook.com/nxtbooks/aogr/201405
https://www.nxtbook.com/nxtbooks/aogr/201404
https://www.nxtbook.com/nxtbooks/aogr/201403
https://www.nxtbook.com/nxtbooks/aogr/201402
https://www.nxtbook.com/nxtbooks/aogr/201401
https://www.nxtbook.com/nxtbooks/aogr/201312
https://www.nxtbook.com/nxtbooks/aogr/201311
https://www.nxtbook.com/nxtbooks/aogr/201310
https://www.nxtbook.com/nxtbooks/aogr/201309
https://www.nxtbook.com/nxtbooks/aogr/201308
https://www.nxtbook.com/nxtbooks/aogr/201307
https://www.nxtbook.com/nxtbooks/aogr/201306
https://www.nxtbook.com/nxtbooks/aogr/201305
https://www.nxtbook.com/nxtbooks/aogr/201304
https://www.nxtbook.com/nxtbooks/aogr/201303
https://www.nxtbook.com/nxtbooks/aogr/201302
https://www.nxtbook.com/nxtbooks/aogr/201301
https://www.nxtbook.com/nxtbooks/aogr/201212
https://www.nxtbook.com/nxtbooks/aogr/201211
https://www.nxtbook.com/nxtbooks/aogr/201210
https://www.nxtbook.com/nxtbooks/aogr/201209
https://www.nxtbook.com/nxtbooks/aogr/2012_pbios
https://www.nxtbook.com/nxtbooks/aogr/201208
https://www.nxtbook.com/nxtbooks/aogr/201207
https://www.nxtbook.com/nxtbooks/aogr/201206
https://www.nxtbook.com/nxtbooks/aogr/201205
https://www.nxtbook.com/nxtbooks/aogr/201204
https://www.nxtbook.com/nxtbooks/aogr/201203
https://www.nxtbook.com/nxtbooks/aogr/201202
https://www.nxtbook.com/nxtbooks/aogr/201201
https://www.nxtbook.com/nxtbooks/demo/aogr_clone
https://www.nxtbook.com/nxtbooks/aogr/201112
https://www.nxtbookmedia.com