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Assessment

Article 4 of ESDM 17/2021  lists the circumstances for and types of flaring events: routine, nonroutine, safety, emergency, instances when impure gas exceeds a 50 percent share, and flaring due to commercialization issues. Article 7 of ESDM 17/2021 lists the activities that qualify for nonroutine flaring; these include exploration and appraisal drilling, well testing and maintenance, and pressure relief. Article 9 requires contractors to make efforts to stop flaring in case of emergency situations or when safety is at risk. Processing business permit holders must make efforts to stop flaring during maintenance activities such as depressurizing. These efforts must be reported to DG Migas in writing, along with a plan to stop flaring and mitigate a recurrence through preventative efforts. In case a single flaring incident lasts more than a day and exceeds an average daily volume of 20 million standard cubic feet (mmscf), contractors with processing business permits must report online to the chief inspector within 24 hours of the incident and a written report must be submitted to DG Migas within seven days after the end of the incident (Article 6 of ESDM 17/2021).

According to Article 146 of the Law on Subsoil and Subsoil Use, 2017 , a permit is not required for flaring under emergency conditions. The operator must report the reasons for and volumes of flaring to the Ministry of Energy and MEGNR within 10 days. An emergency is defined as a threat to the lives of personnel, public health, or the environment.

Section 10 of the Malaysia-Thailand Joint Authority Procedures for Production Operations, 2009 , bans flaring and venting without prior approval except in the following circumstances: during well cleaning and testing periods (not exceeding 48 hours) in emergencies, such as shutdowns or pressure relief during maintenance (not exceeding one week) during temporary equipment failure (not exceeding 72 hours) during gas release from facilities when alternative uses of gas are not economic.      

Article 4 of the CNH Technical Provisions for the Use of Associated Natural Gas in the Exploration and Production of Hydrocarbons  states that gas venting is allowed only for safety reasons in emergency cases. Article 6 specifies that the flaring of associated natural gas is allowed during well testing (as long as it is included in the exploration or development plans approved by the CNH), in situations that pose safety threats, and when productive use is not viable (as shown by the technical-economic analysis required in Article 11 and approved by the CNH). Article 21 requires operators to notify the Commission when they have carried out flaring during well tests. The notification should be sent within five days of the test. If emergency gas venting occurs, ASEA must be informed of the volume vented. The volume of gas flared or vented must adhere to the provisions issued by the CNH based on the gas utilization program. The CNH website includes an example of the implementation experience in the Tepetate field.

Section 9 of the Norwegian Petroleum Act, 1996 , requires oil and gas operations to be conducted in such a manner as to maintain a high level of safety. Section 4-4 of the law allows operators to flare associated gas in the quantities needed for operational safety. Section 2 (General Factors) of the Guidelines for Production Permit Applications (last updated in spring 2023; see footnote 13) suggests that cold venting for safety reasons for normal operations is also allowed.

No explicit regulations on flaring or venting without prior approval were found. According to SAEP-400 , routine, nonroutine, and emergency flaring and how they will be managed and reported must be explained in each facility’s FMP. Section 8.4.1 of SAEP-400 provides the following examples of allowable reasons for routine flaring: safety (minimum purge gas to keep air out of the flare headers), leakage (control and safety valves), and normal operation control valve discharge. Section 8.4.2 provides an extensive list of nonroutine flaring examples. SAES-A-102 , Section 5.7, prohibits horizontal flares; refers to SAES-F-007 for flare height (air dispersion modeling is required but must be at least 30 feet) and other design requirements; requires FMP and FMS at all facilities; and mandates flow meters for each flare and reporting actual flaring data through the corporate FMS. Section 5.15 mandates leak detection and repair for fugitive emissions.

The Energy Act, 2016 , amended the Energy Act, 1976 . Under its Section 12A, approval for flaring or venting is not required if it is necessary to reduce or avoid the risk of personal injury, the risk could not reasonably have been foreseen in time to reduce or avoid it other than by flaring or venting, or it was not reasonably practicable to obtain consent in the time available.

During drilling operations, Rule 903(b) of the Environmental Impact Prevention 900 Series, 2021, allows emergency flaring without prior notice when necessary to protect the safety of onsite personnel. However, a verbal notification must be provided to the COGCC within 12 hours of the event, and a written report must be submitted within 7 days.

Flaring or venting are permitted without BSEE’s approval under a limited number of circumstances, listed in Title 30 CFR § 250.1160(a) . when natural gas is used to operate production facilities or as an additive to burn waste products during the restart of a facility that had been shut in because of weather conditions, such as a hurricane during the blow-down of transport pipelines downstream of the royalty meter during the unloading or cleaning of a well, drill-stem testing, production testing, other well-evaluation testing, or the blow-down necessary to perform these procedures when equipment fails to work correctly during equipment maintenance and repair or when system pressure must be relieved when the equipment works properly but there is a temporary upset condition.

Title 43 CFR Section 3179.4 of BLM’s new rule proposed in November 2022 defines “unavoidably lost” gas when flaring is allowed royalty free—the operator must not have been negligent, must have taken prudent and reasonable steps to avoid waste, and must have complied fully with applicable laws, lease terms, regulations, provisions of a previously approved operating plan, and other written orders of the BLM. Section 3179.4(b) provides a list of 14 operations or sources from which lost gas may be considered as “unavoidably lost.” Many of these operations or sources have limitations or requirements detailed in other subsections to qualify. For example, 10,000 mcf during new hydraulic fracturing completions; 5,000 mcf during recompletions (wells connected to a pipeline); and 20,000 mcf total during initial production tests up to 30 days (with possible extensions to 60 days or 30,000 mcf). Venting is not allowed unless flaring or capturing are not technically feasible or in the case of emergencies. The proposed rule provides more detailed description of conditions under which venting may be allowed under Title 43 CFR Section 3179.6 (Safety). According to NTL-4A , which is in effect until the proposed rule is enacted, flaring or venting is allowed without royalty obligation or prior authorization from the BLM if volumes are considered “unavoidably lost,” defined as follows: Volumes are lost during temporary emergencies, such as the failure of a compressor or other piece of equipment, relief of abnormal system pressures, or other conditions that result in flaring or venting of gas. Such venting or flaring cannot exceed 24 hours per incident or a cumulative total of 144 hours for the lease during any calendar month. Volumes are lost during the unloading or cleaning up of a well during routine evaluation tests. Such flaring or venting cannot exceed 24 hours. Volumes are lost during initial production tests, not exceeding 30 days or 50 million cubic feet (mmcf) of gas, whichever occurs first. Gas vapors are released from storage tanks or other low-pressure production vessels. A BLM regional supervisor may determine that operators must recover such vapors. Oil and gas are lost as a result of line failures, equipment malfunctions, blowouts, fires, or similar events. If a BLM regional supervisor determines that the loss resulted from the negligence or failure of the operator to take all reasonable measures to prevent the loss, losses cannot be classified as “unavoidably lost.”