Country
Assessment
According to Title 30 CFR § 250.1160(b) , regardless of the exceptions, operators must not exceed the volume approved for flaring or venting in the Development Operations Coordination Document submitted to BOEM.
The BLM’s 2016 Waste Prevention Rule required that a waste-minimization plan be submitted along with the application for an oil well drilling permit. The BLM rescinded this requirement in 2018. According to the BLM’s justification, at least some states have comparable gas capture requirements. In the rule proposed in November 2022, the BLM demonstrates that state programs are insufficient for the BLM, as the federal regulator, to assess potential waste during the permitting stage. Accordingly, the proposed rule requires operators to submit a plan to minimize waste of associated gas from an oil well along with the application for a permit to drill (APD). The plan must demonstrate how the operator plans to capture associated gas as soon as production starts, or justify any delays (adding Paragraphs [j] and [k] to Title 43 CFR Subpart 3162.3-1). The waste prevention plans are assessed using the concept of “unreasonable and undue waste of gas” defined in the rule as “frequent or ongoing loss of gas that could be avoided without causing an ultimately greater loss of equivalent total energy than would occur if the loss of gas were to continue unabated.” The BLM sought comments on this definition as it proposed to use it to approve, deny, or delay APDs.
Order 24665, 2014 , requires upstream operators to submit a gas capture plan with every drilling permit application to the NDIC. Gas capture plans must include information on area gathering system connections and processing plants, the rate and duration of planned flowback, current system capacity, and a timeline for connecting the well. They must also include a signed affidavit verifying that the plan has been shared with area midstream companies. The NDIC allows production from horizontal wells in Bakken and Three Forks Pools for up to 90 days (one year in noncore areas) at the maximum efficiency rate irrespective of flaring volumes. After 90 days, the operator should either meet gas capture goals or limit production. NDIC Order 24665, 2014, provides flexibility in the form of temporary exemptions from production restrictions for up to one year if an operator files a request and provides the necessary documentation. The NDIC may consider further flexibility under other extenuating circumstances after notifying the operator and hearing whether the exemption is expected to result in a significant net increase in gas capture within a year. The NDIC has also implemented a gas capture credit system (see section 22 of this case study).