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[Federal Register Volume 75, Number 249 (Wednesday, December 29, 2010)]
[Proposed Rules]
[Pages 81950-81952]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-32674]

[[Page 81950]]

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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management, Regulation and Enforcement

30 CFR Part 250

[Docket ID: BOEM-2010-0042]

Flaring Versus Venting To Reduce Greenhouse Gas Emissions in the 
Outer Continental Shelf; Public Workshop

AGENCY: Bureau of Ocean Energy Management, Regulation and Enforcement 
(BOEMRE), Interior.

ACTION: Public workshop.

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SUMMARY: Bureau of Ocean Energy Management, Regulation and Enforcement 
is announcing a workshop to discuss possible new requirements on 
flaring versus venting of natural gas in the Outer Continental Shelf 
(OCS), when such atmospheric release of natural gas is necessary and in 
compliance with regulations. The main focus of this workshop will be 
aimed at the potential reduction of Greenhouse Gas (GHG) emissions.

DATES: The workshop will be held on Wednesday, March 30, 2011, from 9 
a.m. to 12 p.m.

ADDRESSES: The workshop will be held at 1201 Elmwood Park Blvd., New 
Orleans, Louisiana.

FOR FURTHER INFORMATION CONTACT: Ms. Robin Vaughn at (504) 736-2675 or 
robin.vaughn@boemre.gov.

SUPPLEMENTARY INFORMATION: 

Subpart K Rulemaking

    On March 6, 2007, the U.S. Department of the Interior (Department) 
published a Notice of Proposed Rulemaking (NPR) in the Federal Register 
(72 FR 9884). This NPR requested comments on proposed revisions to 30 
CFR part 250, subpart K, Oil and Gas Production Requirements. The 
Department conducted analyses to assess the costs and benefits of 
requiring flare/vent meters and of requiring flaring instead of 
venting.
     The first analysis supported the recommendation to require 
meters, provided that the facilities process more than 2,000 barrels of 
oil per day (BOPD). This requirement was included in the final rule, 
published on April 19, 2010, in the Federal Register (75 FR 20271), Oil 
and Gas Production Requirements, at 30 CFR part 250, subpart K.
     The second analysis indicated that a regulatory change to 
require flaring instead of venting may be appropriate. However, the 
cost of implementing this requirement could be significant, and input 
from potentially affected parties is necessary. We requested comments 
on this issue in the proposed rule.
     Commenters pointed out that converting existing facilities 
that are equipped to vent natural gas to be able to flare natural gas 
may require significant redesign for safety.
     They also pointed out that there are many factors in 
determining whether to flare natural gas or vent natural gas when 
designing a facility. These factors include the operating philosophy, 
nature and type of reservoir, facility design limitations or 
capabilities, operating practices, safety, and economics.
     Industry comments also recommended that, in addition to 
considering requiring flaring instead of venting, BOEMRE should work 
with them to find ways to reduce overall natural gas emissions.
     Industry representatives also stated that a requirement 
for flaring instead of venting should be only for new facilities.

Request for a Workshop

    Commenters requested that BOEMRE hold a workshop to discuss the 
issue. BOEMRE plans to work directly with interested parties to study 
the costs and benefits (especially GHG benefits) of requiring that 
companies flare the natural gas, whenever possible, when flaring or 
venting is necessary.
    Therefore, we are holding a workshop to discuss the issue of 
flaring instead of venting. This workshop and additional cost-benefit 
analysis will consider GHG issues associated with flaring and venting. 
The workshop will assist BOEMRE to determine how to best implement a 
General Accounting Office (GAO) recommendation (see GAO Report below).

Proposed Rulemaking

    BOEMRE will decide how to move forward with rulemaking on flaring 
natural gas after we hold the workshop. Our next step would likely be a 
proposed rule.

GAO Report

    In July 2004, the GAO issued a report on world-wide emissions from 
vented and flared natural gas titled, Natural Gas Flaring and Venting--
Opportunities to Improve Data and Reduce Emissions (GAO-04-809). This 
report is available on the GAO Web site at: http://www.gao.gov/new.items/d04809.pdf. This report reviewed the flaring and venting data 
available, the extent of flaring and venting, their contributions to 
GHG emissions, and opportunities for the Federal Government to reduce 
flaring and venting.
    The report concluded that more accurate records were needed on 
flaring and venting to determine the amount of the resource that is 
lost and the volume of GHG emissions these practices contribute to the 
atmosphere each year. The report also stated that the impact of methane 
(a naturally occurring gas released during venting) on the earth's 
atmosphere is about 23 times greater than that of carbon dioxide (a 
byproduct of flaring). The GAO made two recommendations to the 
Secretary of the Interior: (1) consider the cost and benefit of 
requiring that companies flare the natural gas, whenever possible, when 
flaring or venting is necessary; and (2) consider the cost and benefit 
of requiring that companies use flaring and venting meters to improve 
oversight. In addition, there was a recommendation to the Secretary of 
Energy to consider consulting with the Environmental Protection Agency 
(EPA), BOEMRE, and Bureau of Land Management, on how to best collect 
separate statistics on flaring and venting. In 2005, BOEMRE performed a 
cost-benefit analysis on the possible requirement to flare instead of 
vent. The agency determined that it was not appropriate to mandate 
flaring at that time, but noted that this topic would be pursued 
further. In light of developments since 2005, BOEMRE has determined 
that a workshop to hear public concerns is appropriate and a new cost-
benefit analysis is needed. Note also that the other two GAO 
recommendations (to consider a requirement to install flare/vent meters 
and to consider a requirement to report flare volumes separately from 
vent volumes) were implemented via the April 19, 2010, publication of 
regulations at 30 CFR Part 250, subpart K (75 FR 20271).

Oil and Gas Industry Contributions to GHG Emissions in the Federal OCS

    Most natural gas production involves extracting natural gas from 
wells drilled into underground gas reservoirs; however, some natural 
gas is generated as a by-product of oil production. During oil and 
natural gas production, it may become necessary to burn or release 
natural gas for a number of operational reasons, including safety. 
These operations may be associated with unloading or cleaning of a 
well, production testing, or relieving system pressure during equipment 
failure. The controlled burning of natural gas is called flaring, while 
the controlled release of unburned gases directly into the atmosphere 
is called venting. Most flaring and venting occurs at the end of

[[Page 81951]]

a flare stack or boom which ensures that natural gas can be safely 
disposed of in emergency and shutdown situations. It is virtually 
impossible to produce oil and natural gas without any flaring or 
venting, and it would be impractical to shut in production every time 
an upset occurs. It is estimated that operators in the Gulf of Mexico 
OCS flare and vent less than 0.5 percent of the gas produced, making 
this area a world leader in the conservation of natural gas resources.
    BOEMRE regulates air emissions as mandated by the OCS Lands Act. 
Under the 1990 Clean Air Act Amendments, BOEMRE has jurisdiction over 
Gulf of Mexico OCS emission sources westward of 87[deg]30' W longitude, 
and the EPA has jurisdiction over those eastward of 87[deg]30' W 
longitude. The EPA also has jurisdiction over emissions in the OCS of 
Alaska, the Atlantic, and the Pacific. BOEMRE regulates OCS emissions 
to assure compliance with the National Ambient Air Quality Standards 
and to prevent significant air quality deterioration in onshore areas. 
BOEMRE regulates activities that have the potential to affect air 
quality at the onshore areas.
    Both flaring and venting on the OCS are highly regulated by BOEMRE. 
Federal regulations at 30 CFR 250, subpart K specify the limited 
circumstances under which offshore oil and gas operators may flare or 
vent natural gas. In the Federal OCS, BOEMRE requires operators to 
continuously record these volumes and report them each month. These 
regulations strictly limit the amount of time operators may flare or 
vent. In some cases, operators request additional time in order to 
complete equipment repairs. BOEMRE evaluates each of these requests on 
a case-by-case basis, primarily focusing on environmental, safety, and 
conservation aspects. BOEMRE also performs onshore air quality impacts 
analyses to prevent significant onshore air quality deterioration from 
OCS activities.
    BOEMRE continuously strives to improve its oversight of OCS flaring 
and venting. New regulations, published in April 2010, require 
operators to install flare/vent meters on large platforms and also to 
report gas flared separately from gas vented. These regulatory changes 
will provide more accurate measurements of GHG emissions.
    Given the existing restrictions on OCS flaring and venting, there 
is minimal opportunity to further reduce the overall volume of gas 
flared and vented. However, the global warming potential of GHG 
emissions could be reduced if BOEMRE were to require operators to flare 
instead of vent (when the release of natural gas is necessary). Such a 
requirement would reduce the global warming potential of GHG emissions 
by converting most methane to carbon dioxide as it is released. The 
workshop will address this topic.
    It is difficult to estimate the impact that flaring instead of 
venting would have on GHG emissions until BOEMRE gathers the more 
accurate data required by new regulations (which require the 
installation of flare/vent meters and the separate reporting of flare 
and vent volumes). Furthermore, it is impractical, if not impossible, 
to eliminate all venting. Even if 100 percent of the released OCS gas 
could be flared instead of vented, the impact on total U.S. GHG 
emissions would be very small.
    In 2008, U.S. GHG emissions totaled 7.668 x 10\9\ tons of carbon 
dioxide equivalent (CO2e). Of that total, only 30.9 x 10\6\ 
tons of CO2e, or 0.40 percent, were related to OCS oil and 
gas production (including platform and non-platform sources), and 
flaring and venting activities represent only a fraction of that 
amount.
    Based on several assumptions, estimates, and existing analyses, 
BOEMRE roughly approximated the impact that might occur if it were to 
mandate flaring over venting. These estimates indicate that such a 
requirement would reduce total U.S. GHG emissions by less than 0.05 
percent. However, the accuracy of these estimates will improve over the 
next few years now that regulations at 30 CFR part 250, subpart K have 
been implemented. Reported OCS flare and vent volumes could increase or 
decrease based solely on improved reporting accuracy. In any event, 
further analysis may shed light on whether flaring rather than venting 
natural gas is cost effective from a GHG perspective, even if the total 
amount of GHGs is small.

Workshop Presentations

    In order to assist BOEMRE, assess the need for regulations on this 
topic, and ascertain the framework for any such regulations, interested 
parties are encouraged to register for the workshop and present their 
recommendations on the following topics:
     The impact of flaring versus venting on GHG emissions;
     If BOEMRE requires flaring instead of venting, whether 
this mandate should apply to all (new and existing) facilities, apply 
only to facilities emitting above a certain threshold, and what 
acceptable threshold levels should be;
     Technical and/or economical feasibility of retrofitting 
some or all existing facilities with flare tips;
     Flare tip technology and/or combustion efficiency;
     Emissions reduction;
     Existing worldwide best practices that could reduce GHG 
emissions from flaring and venting;
     Safety issues associated with requiring flaring instead of 
venting on OCS facilities;
     Variables and/or methods that should be used to evaluate 
the cost versus benefit of flaring instead of venting; and
     Equipment (specific components) that have to emit natural 
gas locally instead of the gas being routed to a flare tip due to 
safety, practical, or other reasons, as well as acceptable/or 
recommended volumes of natural gas emissions that would be associated 
with this equipment.
    Note that the primary focus of this workshop will be to receive 
feedback from all interested and potentially affected parties in 
advance of any rulemaking. BOEMRE anticipates that the agenda of the 
workshop will be predominantly presentations by those interested 
parties in order for BOEMRE to receive their input. In order to present 
at and/or attend this workshop, you must register in advance.
    Registration: There is no registration fee for this workshop. 
However, to assess the number of participants, BOEMRE requests 
participants to register with Ms. Robin Vaughn by phone at (504) 736-
2675, or by e-mail at robin.vaughn@boemre.gov, prior to the meeting. 
The deadline to register is February 28, 2011. Seating is limited and 
the number of attendees from each organization may have to be 
restricted.
     BOEMRE encourages you to submit your presentations and/or 
attend the workshop.
     We will also consider any questions submitted in advance 
so that the workshop can focus on key topics.
    Please submit the above to Ms. Robin Vaughn 
(robin.vaughn@boemre.gov) by February 28, 2011. You may also submit 
written comments for BOEMRE's consideration up to 30 days after the 
conclusion of this workshop. Written comments should be submitted to 
http://www.regulations.gov. In the entry entitled ``Enter Keyword or 
ID,'' enter Docket ID BOEM-2010-0042 then click search. Follow the 
instructions to submit public comments and view supporting and related 
materials available for this notice. BOEMRE will post all comments.

[[Page 81952]]

Paperwork Reduction Act of 1995 (PRA) Statement

    This Federal Register Notice does not refer to or impose any 
information collection subject to the PRA.

    Dated: November 9, 2010.
L. Renee Orr,
Acting Associate Director for Offshore Energy and Minerals Management.
[FR Doc. 2010-32674 Filed 12-28-10; 8:45 am]
BILLING CODE 4310-MR-P
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