BLM Update of Gas/ Oil Measurement Vernal, UT August 8, 2017 The New Rules 3173 Site Security, FMP, Commingling, Offlease measurement 3174 Oil Measurement 3175 Gas Measurment 3178 Royalty Free Use 3179 Waste Prevention All rules became effective on January 17, 2017 Outline
Overview of the new rules Timing for Implementation Facility Measurement Point (FMP) Variances and Equipment Approvals Recordkeeping End-of-month inventories Commingling Oil Measurement Gas Measurement Why did we promulgate these rules? Incorporate latest industry standards Provide a mechanism to nationally approve new measurement technology/procedures Provide a mechanism to regularly update industry standards incorporated by reference Automatically allow automatic tank gauging and Coriolis meters Define what meters the BLM cares about Address gaps in the Onshore Orders
Findings from GAO, OIG, RPC A Readers Guide Subpart 3170: Definitions, recordkeeping, bypass and tampering, variances, appeals, enforcement Subpart 3173 (Onshore Order 3): Site security, FMP, Commingling, Off-lease measurement Subpart 3174 (Onshore Order 4): Oil Measurement Subpart 3175 (Onshore Order 5, Statewide NTLs for electronic flow computers): Gas Measurement 43 CFR Part 3170 Subpart 3170: Definitions, recordkeeping, bypass and tampering, variances, appeals, enforcement Subpart 3173 (Onshore Order 3): Site security, FMP, Commingling, Off-lease measurement Subpart 3174 (Onshore Order 4): Oil Measurement Subpart 3175 (Onshore Order 5, Statewide NTLs for
electronic flow computers): Gas Measurement 43 CFR subpart 3175 Preamble Procedural Matters Regulation Executive Order All 3170 rules became effective on January 17, 2017 Requires BLM to review regulations Industry has suggested changes they would like to see Some of these changes we can handle through policy (IM and enforcement handbook) Other changes would require a rulemaking Promulgating a Regulation (the APA) Develop a draft regulation
Develop preamble Promulgating a Regulation (the APA) January 2017 July 2009 Develop a draft regulation Publish draft in Federal Register Develop preamble Respond to comments Internal review:
surnaming BLM Revise regulation Publish final in Federal Register OMB Internal review: surnaming Solicitor Asst. Secy Revise preamble OMB Regulation is effective BLM
Solicitor Asst. Secy Timing for Implementation Implementation Time Frames >10,000 Mcf/month, >100 bbl/month FMP #s 1,500 10,000 Mcf/month, 10 100 bbl/month (Existing meters) <1,500 Mcf/month, <10 bbl/month 3174 Compliance (Existing FMPs) 3175 Compliance (Existing FMPs) Same criteria as FMP application deadline High and Very High Low Very Low
3173/74/75 Compliance (New FMPs) GARVS All gas FMPs Approved Equipment (PMT) All FMPs 1 Nov. 17, 2016 Jan. 17, 2017 2 Years 3 Implementation Time Frames >10,000 Mcf/month, >100 bbl/month
FMP #s 1,500 10,000 Mcf/month, 10 100 bbl/month (Existing meters) <1,500 Mcf/month, <10 bbl/month 3174 Compliance (Existing FMPs) 3175 Compliance (Existing FMPs) Same criteria as FMP application deadline High and Very High Low Very Low 3173/74/75 Compliance (New FMPs) GARVS All gas FMPs Approved Equipment (PMT)
All FMPs 1 Nov. 17, 2016 Jan. 17, 2017 2 Years new effective date 3 Implementation Time Frames >10,000 Mcf/month, >100 bbl/month FMP #s 1,500Lease, 10,000 Mcf/month, 10 basis 100 bbl/month CA, or PA
(Existing meters) <1,500 Mcf/month, <10 bbl/month criteria as FMP 3174 Compliance Lease, CA,Same or PA basis application deadline (Existing FMPs) High and Very High 3175 Compliance FMP basis (Existing FMPs) Low Very Low 3173/74/75 Compliance (New FMPs) GARVS All gas FMPs
Approved Equipment (PMT) All FMPs 1 Nov. 17, 2016 Jan. 17, 2017 2 Years new effective date 3 NMN-16114 1500 Mcf/month (50 Mcf/day)
Total oil production: 110 bbl/month 1-2 90 bbl/month 900 Mcf/month (30 Mcf/day) 2-2 20 bbl/month Total gas production: 2,400 Mcf/month 1 year 110 100 bbl/month 1 year 10,000 Mcf/month
2 years FMP FMPApplication Application Deadline Deadline 11year yearfrom fromthe the new neweffective effective date date 2 years 2,400 10 bbl/month
1,500 Mcf/month 3 years Oil Applies Appliesto toall all FMPs FMPson onthe the lease, lease, CA, CA, or orPA PA 3 years Gas
NMN-16114 1500 Mcf/month (50 Mcf/day) Total oil production: 110 bbl/month 1-2 90 bbl/month 900 Mcf/month (30 Mcf/day) 2-2 20 bbl/month Total gas production: 2,400 Mcf/month 1 year
Well1-2: 1-2: 1/17/19 1/17/19 Well Well2-2: 2-2: 1/17/20 1/17/20 2 years 50 Compliance Complianceon onan anFMP FMP basis, basis, not noton onaalease lease
basis basis 35 Mcf/day 30 3 years Gas Facility Measurement Point (FMP) (3170 and 3173) 3170.3 Definition Facility measurement point (FMP) means a BLM-approved point where oil or gas produced from a Federal or Indian lease, unit PA, or CA is measured and the measurement affects the calculation of the volume or quality of production on which royalty is owed. FMP includes, but is not limited to, the approved point of royalty measurement and measurement points relevant to determining the allocation of production to Federal or Indian leases, unit PAs, or CAs. However, allocation facilities that are part of a commingling and allocation approval under 3173.15 or that are part of a commingling and
allocation approval approved after July 9, 2013, are not FMPs. An FMP also includes a meter or measurement facility used in the determination of the volume or quality of royalty-bearing oil or gas produced before BLM approval of an FMP under 3173.12. An FMP must be located on the lease, unit, or communitized area unless the BLM approves measurement off the lease, unit, or CA. The BLM will not approve a gas processing plant tailgate meter located off the lease, unit, or CA, as an FMP. 3170.3 Definition (simple) An FMP is a measurement facility that affects the calculation of the volume or quality of production on which royalty is owed, whether or not the BLM has approved it or it has been assigned an FMP number. An FMP does not include: Allocation facilities that are part of a commingling approval issued under IM 2013-152 or 3173.14. Tailgate meters at gas plants that are not located on the lease, CA, or unit PA. 3173.12(a)(1) Location Unless otherwise approved, the FMP(s) for all Federal and Indian leases, unit PAs, or CAs must be located
within the boundaries of the lease, unit, or communitized area from which the production originated and must measure only production from that lease, unit PA, or CA Why are FMPs Significant? The regulations (3173, 3174, 3175) primarily apply to FMPs Operators use the volumes and qualities determined by the FMP for OGOR B/C reporting* Requires approval from the BLM Requires an FMP number generated by the BLM *There may be some exceptions, typically dealing with royalty-free use. What are the FMP(s) for CA-16114? Month of: June 2017 1-1
3,000 OIL AND GAS OPERATIONS REPORT PART B PRODUCT DISPOSITION (OGOR-B) ACTION CODE DISPOSITION CODE X ORIGINAL MODIFY (DELETE/ADD BY LINE) REPLACE (OVERLAY PREVIOUS REPORT) PRODUCTION MONTH: MMCCYY 062017 OPERATOR LEASE/AGREEMENT NAME: LINE NUMBER REPORT TYPE:
1 2 3 4 5 6 A A A A A A 01 01 01 METERING POINT NUMBER 72123123045
72123123046 72123123047 GAS PLANT NUMBER ONRR LEASE/AGREEMENT NUMBER: MMS OPERATOR NUMBER: OPERATOR NAME: 99999 XYZ ENERGY OPERATOR LEASE/AGREEMENT NUMBER: API GRAVITY 99.9 BTU 9999 DISPOSITION VOLUMES
OIL/CONDENSATE GAS (BBL) (MCF) 1024 1105 1088 TOTAL DISPOSITIONS Disposition Codes: 01 Sales Royalty Due (MEASURED) AGENCY LEASE/AGREEMENT NUMBER: NDM016114 WATER (BBL) 2000
2-2 #5 #7 1,000 #6 NDM-16113 2-3 10,000 3,000 OIL AND GAS OPERATIONS REPORT PART B PRODUCT DISPOSITION (OGOR-B) 1 A
2 A 3 A DISPOSITION CODE ACTION CODE X ORIGINAL MODIFY (DELETE/ADD BY LINE) REPLACE (OVERLAY PREVIOUS REPORT) PRODUCTION MONTH: MMCCYY 062017 OPERATOR LEASE/AGREEMENT NAME: LINE NUMBER REPORT TYPE: 01 METERING
POINT NUMBER 72123123047 GAS PLANT NUMBER ONRR LEASE/AGREEMENT NUMBER: MMS OPERATOR NUMBER: OPERATOR NAME: 88888 ABC ENERGY OPERATOR LEASE/AGREEMENT NUMBER: API GRAVITY 99.9 BTU 9999
DISPOSITION VOLUMES OIL/CONDENSATE GAS (BBL) (MCF) 1024 TOTAL DISPOSITIONS Disposition Codes: 01 Sales Royalty Due (MEASURED) AGENCY LEASE/AGREEMENT NUMBER: CACA016114 WATER (BBL) 14000 0
#7 1,000 #6 NDM-16113 2-3 10,000 3,000 Off-lease measurement and commingling approval Month of: June 2017 1-1 #1 2,000
1-2 #2 #8 4,000 #3 NDM-16114 2-1 14,000 9,000 1-3 Are these FMPS? #4 7,000
2-2 #5 #7 1,000 #6 NDM-16113 2-3 10,000 3,000 #9 25,000 3170.3 Definition An FMP is a measurement facility that affects
calculation of the volume or quality of production on which royalty is owed, whether or not the BLM has approved it or it has been assigned an FMP number. An FMP does not include: Allocation facilities that are part of a commingling approval issued under IM 2013-152 or 3173.14. Tailgate meters at gas plants that are not located on the lease, CA, or unit PA. 1-1 #1 2,000 1-2 #2 #8 4,000
Compressor 25,000 FMPs for Tanks Federal Lease 1-1 1-2 1-3 NMN-25533 Federal Lease 1-1 1-2 1-3
NMN-25533 FMP Federal Lease 1-1 1-2 1-3 NMN-25533 Federal Lease 1-1 1 FMP 1 FMP number 3 unique tank numbers for strapping
1-2 1-3 NMN-25533 Federal Lease 1-1 1-2 1-3 NMN-25533 Federal Lease 1-1 3 FMPs 3 FMP numbers 3 unique tank numbers for strapping
1-2 1-3 NMN-25533 FMPs for LACTs and Gas Meters Federal Lease 1-1 1-2 1-3 NMN-25533 FMP (secondary) FMP
(primary) Federal Lease 1-1 FMP (primary) 1-2 1-3 FMP (secondary) FMP (primary) Each LACT must have its own FMP number NMN-25533 Federal Lease 1-1
FMP 1-2 1-3 FMP Each gas meter must have its own FMP number NMN-25533 3173.12 Applying for an FMP FMPs are only issued to operators and only operators can apply for an FMP To comply with the deadlines, an operators only obligation is to apply for an FMP The BLM will send operators a list of leases, CAs, and unit PAs that fall into each category Gas and oil measurement facilities each have their own FMP number even if they come off the same separator or well
3173 FMP Review Process FMP Application (simple) FMP Application (Comm/OLM) Grandfathered (Existing) Not Grandfathered Does comm./OLM comply with new regs? Yes No Approve FMP Issue FMP number Deny FMP
Rescind/mod approval Variances and Equipment Approvals (3170, 3174, 3175) Onshore Orders 4 and 5 Overall concept: Prescriptive requirements for equipment and procedures with opportunity to request meter-specific variances from the local field office. Oil: Manual tank gauging LACT using positive displacement meter Gas: Orifice meter with chart recorder Electronic flow computer (statewide NTLs) 3174 / 3175 Overall concept: Provide prescriptive measurement procedures as a default with the option for national approval of new or alternative equipment or methods that meet well-defined performance criteria.
Oil (default methods): Manual tank gauging Automatic tank gauging LACT with positive displacement meter LACT with Coriolis meter Stand-alone Coriolis meter 3174/3175 Gas (default methods): Flange-tapped orifice meter (primary device) Chart recorders (less than 200 Mcf/day) Electronic gas measurement (EGM) Standard methods of gas sampling and analysis New Technology Production Measurement Team (PMT): Central review body for new equipment and procedures Reviewing specific makes and models of equipment to ensure performance goals are met
Approval Process Operators or manufacturers request approval of a specific make, model, and size of device or a new method Request includes data primarily from independent laboratories PMT reviews data to determine if the device meets performance goals Recommends approval or denial to the BLM If approved, the BLM posts that make, model, size of device, or measurement method, on a website Once posted, any operator can use that device or method with no further review www.blm.gov-> Programs 3170.6 Variances Variances are only for meter-specific local issues and are issued by the local field office Must meet or exceed the performance goals
Recordkeeping (3170) 3170.7 Recordkeeping Recordkeeping is the responsibility of lessees, operators, purchasers, transporters, and any other person directly involved in producing, transporting, selling, or measuring oil and gas through the FMP or the point of first sale, whichever is later. Retention period (generally): 7 years for Federal leases 6 years for Indian leases 3163 Noncompliance and Civil Penalties BLM can issue incidents of noncompliance (INC) to and assess civil penalties on any person, not just operators Any person includes purchasers and transporters for recordkeeping violations only Any person includes contractors working on behalf on an operator
End-of-Month Inventories (3173) 3173.9 End of Month Inventory Required for each lease, CA, PA Must obtain through gauging (manual or automatic) Total Observed Volume (TOV): Does not have to follow procedures in 3174 Based only in liquid level and tank strapping table Timing (Option 1): 3 days March April 3173.9 End of Month Inventory Timing (Option 2): Derive end of month volume through linear interpolation 31 days 20 days
V1 March V2 April Commingling (3173) Commingling 43 CFR 3162.7-2 -3: All measurementmust not be commingled with gas originating from other sources unless approved by the authorized officer under subpart 3173 of this chapter Source Uncommitted Federal/ Anything with Indian lease a case number Federal/Indian CA
(e.g. NMN Federal/Indian unit PA 12345) State or fee lease 2-1 CA: NDM-25211 2-2 Not commingling 2-3 Unit Participating Area Approved (NDM-45721A) Fee 1-1 Not commingling: no approval needed 1-2
1-2 NDM-25533 1-3 3-3 2-1 3-5 2-2 NDM-25211 2-3 3-4 3173.12 - Commingling Conceptually the same as IM 2013-152 Existing commingling approvals are grandfathered if:
Production is less than 1,000 Mcf/month (gas) Production is less than 100 bbl/month (oil) Involves downhole commingling 3173.12 - Commingling Categories where the BLM can approve commingling: Each source has the same percentage of Federal or Indian (same tribe) ownership, same royalty rate, and same revenue distribution Economically marginal Production is less than 1,000 Mcf/month or 100 bbl/month Includes Indian leases and commingling is authorized by tribal law or approved by the tribe
Downhole commingling in the interest of maximum ultimate recovery Overriding considerations 3173.12 - Commingling Criteria 1: Economically marginal: 18 month payout (15% ROR in IM 2013-152) Based only the commodity commingled After tax (before tax in IM 2013-152) Explicitly includes taxes, royalties, operating, and variable costs (implicit in IM 2013-152) Also qualifies if net present value of royalty over the life of the equipment is less than the capital cost (same as IM 2013-152) Criteria 2: Capital expenditure greater than NPV of total
Federal royalty over the equipment life 3173 Other topics Sealing requirements Water-draining operations Hot oiling, clean-up, and completion operations Report of theft or mishandling of production Required recordkeeping for inventory and seal records (end-of-month inventory) Sundry notices Site facility diagrams
Facility measurement point Commingling Off-lease measurement Oil Measurement (3174) 3174 Oil Measurement Performance requirements Uncertainty, bias, verifiability Tank gauging, including automatic tank gauging LACT systems (PD) Temperature averager Coriolis measurement systems LACT systems (Coriolis) Meter proving requirements
Proving frequency Measurement tickets Required for LACTs and Coriolis Oil measurement by other methods (PMT) Gas Measurement (3175) Application of Regulations 3175 (Gas) Existing VHV Existing HV Existing LV Existing VLV New 3175.126 (Reporting) 1/17/17
1/17/18 1/17/19 1/17/20 Order 5, Statewide NTLs, Variances, Written Orders 3175, except GARVS (3175.120(f)) and BLM-approved equipment (3175.40) 3175 Grandfathering of meter tubes (A and A only) (3175.61(a)) Grandfathering of meter tubes (A and A only) and flow computer software (3175.61(b)) EOT 3175 Gas Measurement Performance requirements Uncertainty, bias, verifiability
Approval of measurement equipment by make and model (after January 17, 2019) Transducers Flow computer/software Flow conditioners Differential meters (other than orifice plates) Linear meters Accounting systems Orifice meter requirements Mechanical recorders (< 200 Mcf/day) 3175 Gas Measurement EGM systems (similar to statewide NTLs)
Gas sampling and analysis Calculation of volume and heating value Reporting of volume and heating value Heating value dry unless water vapor measured with laser, chilled mirror, or other BLM-approved device Volume cannot be adjusted for water vapor Testing protocols for transducers and flow computer software 3175 Phase-in Periods Phase-in periods are for measurement equipment and procedures The BLM believes that the requirement for dry Btus is a reporting issue, not a measurement equipment or procedure. Therefore, there is no phase-in period for reporting dry Btus
Light of wavelength l passes through a single slit of width a. The diffraction pattern is observed on a screen that is very far from from the slit. Which of the following will give the greatest increase in the angular...
Cluster of European Research Projects on the Internet of Things <Event, Date> ... Facilitate networking of different RFID and IoT projects in Europe Coordinate research activities in IoT including RFID Leverage expertise, talents, and resources and maximize impact Establish synergies...
CIS 375—Web App Dev II XForms Introduction to XForms XForms are the next generation of HTML forms are richer and more flexible than HTML forms are designed to handle interactive transactions are platform and device _____ separate data and logic...
Agrarsamfundenes ekspansion i Norden - Flemming Kaul Agrarsamfundets ekspansion i Neolitikum - Lasse Sørensen Shetlandsøerne, landbrug på grænsen 4000-3000 BC - Ditlev Mahler ... Peter Steen Henriksen. C. Netværk i Nord - kommunikation, handel og kulturmarkører
The History of the Light Microscope ... Hooke's cells Robert Hooke Robert Hooke was a mechanical genius. His book, Micrographia, was an important milestone in proving the importance of microscopy. ... a Dutch amateur scientist named Antony van Leeuwenhoek was...
This is called wave shoaling. b0 Shoaling Coastline H0 H E is the wave energy density Ks is the shoaling coefficient Wave Refraction As waves approach shore, the part of the wave in shallow water slows down The part of...
Images and clipart are from lds.org, sugardoodle.net, Microsoft Office, and other websites indicating the images were in the public domain. The hymns, scripture story and lesson are primarily from www.lds.org. Please do not use this presentation for commercial use.
Ready to download the document? Go ahead and hit continue!