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[Federal Register Volume 77, Number 187 (Wednesday, September 26, 2012)]
[Notices]
[Pages 59209-59211]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-23687]

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DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

[Docket ID BSEE-2012-0015; OMB Control Number 1014-0019]

Information Collection Activities: Oil and Gas Production 
Requirements; Proposed Collection; Comment Request

ACTION:  60-day Notice.

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SUMMARY:  To comply with the Paperwork Reduction Act of 1995 (PRA), 
BSEE is inviting comments on a collection of information that we will 
submit to the Office of Management and Budget (OMB) for review and 
approval. The information collection request (ICR) concerns a revision 
to the paperwork requirements in the regulations under Subpart K, Oil 
and Gas Production Requirements.

DATE:  You must submit comments by November 26, 2012.

ADDRESSES:  You may submit comments by either of the following methods 
listed below.
     Electronically: go to http://www.regulations.gov. In the 
entry titled Enter Keyword or ID, enter BSEE-2012-0015 then click 
search. Follow the instructions to submit public comments and view all 
related materials. We will post all comments.
     Email cheryl.blundon@bsee.gov. Mail or hand-carry comments 
to the Department of the Interior; Bureau of Safety and Environmental 
Enforcement; Regulations and Standards Branch; Attention: Cheryl 
Blundon; 381 Elden Street, HE3313; Herndon, Virginia 20170-4817. Please 
reference ICR 1014-0019 in your comment and include your name and 
return address.

FOR FURTHER INFORMATION CONTACT:  Cheryl Blundon, Regulations and 
Standards Branch at (703) 787-1607 to request additional information 
about this ICR.

SUPPLEMENTARY INFORMATION: Title: 30 CFR Part 250, Subpart K, Oil and 
Gas Production Requirements.
    OMB Control Number: 1014-0019.
    Form(s): BSEE-0126 and BSEE-0128.
    Abstract: The Outer Continental Shelf (OCS) Lands Act, as amended 
(43 U.S.C. 1331 et seq. and 43 U.S.C. 1801 et seq.), authorizes the 
Secretary of the Interior to prescribe rules and regulations to 
administer leasing of mineral resources on the OCS. Such rules and 
regulations will apply to all operations conducted under a lease, 
right-of-way, or a right-of-use and easement. Operations on the OCS 
must preserve, protect, and develop oil and natural gas resources in a 
manner that is consistent with the need to make such resources 
available to meet the Nation's energy needs as rapidly as possible; to 
balance orderly energy resource development with protection of human, 
marine, and coastal environments; to ensure the public a fair and 
equitable return on the resources of the OCS; and to preserve and 
maintain free enterprise competition.
    Section 5(a) of the OCS Lands Act requires the Secretary to 
prescribe rules and regulations ``to provide for the prevention of 
waste, and conservation of the natural resources of the Outer 
Continental Shelf, and the protection of correlative rights therein'' 
and to include provisions ``for the prompt and efficient exploration 
and development of a lease area.''
    Section 1334(g)(2) states ``* * * the lessee shall produce such oil 
or gas, or both, at rates * * * to assure the maximum rate of 
production which may be sustained without loss of ultimate recovery of 
oil or gas, or both, under sound engineering and economic principles, 
and which is safe for the duration of the activity covered by the 
approved plan.''
    The Independent Offices Appropriations Act (31 U.S.C. 9701), the 
Omnibus Appropriations Bill (Pub. L. 104-133, 110 Stat. 1321, April 26, 
1996), and OMB Circular A-25, authorize Federal agencies to recover the 
full cost of services that confer special benefits. Under the 
Department of the Interior's implementing policy, the Bureau of Safety 
and Environmental Enforcement (BSEE) is required to charge the full 
cost for services that provide special benefits or privileges to an 
identifiable non-Federal recipient above and beyond those that accrue 
to the public at large. Several requests for approval required in 
Subpart K are subject to cost recovery, and BSEE regulations specify 
service fees for these requests.
    This ICR addresses our current regulations governing oil and gas 
production at 30 CFR Part 250, Subpart K, associated forms, and related 
Notices to Lessees (NTLs) and Operators. The BSEE issued several NTLs 
to clarify and provide additional guidance on some aspects of the 
current Subpart K regulations. This collection of information will 
renew the approved information collection for the current Subpart K 
regulations (1014-0019).
    Regulations at 30 CFR Part 250, Subpart K, implement these 
statutory requirements. We use the information in our efforts to 
conserve natural resources, prevent waste, and protect correlative 
rights, including the Government's royalty interest. Specifically, BSEE 
uses the information to:
     Evaluate requests to burn liquid hydrocarbons and vent and 
flare gas to ensure that these requests are appropriate;
     Determine if a maximum production or efficient rate is 
required; and,
     Review applications for downhole commingling to ensure 
that action does not result in harm to ultimate recovery.
    However, in this ICR, we have also clarified some sections of Form 
BSEE-0126. These clarifications pose minor edits and they are as 
follows:
    In Block No. 88, TYPE OF REQUEST, we added the word 
``Reestablish''; in Block No. 108, we revised the block that read ``API 
@ 60[deg] F'' to now read as ``API @ 14.73 PSI & 60[deg] F'' and in 
Block No. 109, we revised the block from ``SP GR GAS'' to now read as 
``SP GR GAS @ 14.73 PSI & 60[deg]F''.
    We use the information in Form BSEE-0126, Well Potential Test 
Report, for reservoir, reserves, and conservation analyses, including 
the determination of maximum production rates (MPRs) when necessary for 
certain oil and gas completions. The information obtained from the well 
potential test is essential to determine if an MPR is necessary for a 
well and to establish the appropriate

[[Page 59210]]

rate. The information in Form BSEE-0128, Semiannual Well Test Report, 
is used to evaluate the results of well tests to determine if 
reservoirs are being depleted in a manner that will lead to the 
greatest ultimate recovery of hydrocarbons. This information is 
collected to determine the capability of hydrocarbon wells and to 
evaluate and verify an operator's approved maximum production rate if 
assigned.
    We protect proprietary information according to the Freedom of 
Information Act (5 U.S.C. 552) and its implementing regulations (43 CFR 
2), and 30 CFR 250.197, Data and information to be made available to 
the public or for limited inspection, 30 CFR part 252, OCS Oil and Gas 
Information Program. Proprietary information concerning geological and 
geophysical data will be protected according to 43 U.S.C. 1352. 
Responses are mandatory or are required to obtain or retain a benefit.
    Frequency: On occasion, monthly, semi-annually, annually, and as a 
result of situations encountered depending upon the requirements.
    Description of Respondents: Potential respondents comprise Federal 
oil, gas, or sulphur lessees and/or operators.
    Estimated Reporting and Recordkeeping Hour Burden: The currently 
approved annual reporting burden for this collection is 43,396 hours. 
The following chart details the individual components and respective 
hour burden estimates of this ICR. In calculating the burdens, we 
assumed that respondents perform certain requirements in the normal 
course of their activities. We consider these to be usual and customary 
and took that into account in estimating the burden.

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                                                                                       Hour burden
  30 CFR Part 250 Subpart K and related     Reporting & recordkeeping  -----------------------------------------
                   NTLs                            requirement                   Non-hour cost $ burden
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                                  WELL TESTS/SURVEYS and CLASSIFYING RESERVOIRS
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1151(a)(1), (c); 1167....................  Conduct well production      3.
                                            test; submit Form BSEE-
                                            0126 (Well Potential Test
                                            Report) and supporting
                                            information within 15 days
                                            after end of test period.
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1151(a)(2), (c); 1167....................  Conduct well production      0.1 to 3.*
                                            test; submit Form BSEE-
                                            0128 (Semiannual Well Test
                                            Report) and supporting
                                            information within 45 days
                                            after end of calendar half-
                                            year.
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1151(b)..................................  Request extension of time    0.5.
                                            to submit results of semi-
                                            annual well test.
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1152(b), (c);............................  Request approval to conduct  0.5.
                                            well testing using
                                            alternative procedures.
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1152(d)..................................  Provide advance notice of    0.5.
                                            time and date of well
                                            tests.
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                                          APPROVALS PRIOR TO PRODUCTION
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1156; 1167...............................  Request approval to produce  5.
                                            within 500 feet of a unit   $3,608 per request.
                                            or lease line; submit
                                            supporting information/
                                            documentation; notify
                                            adjacent operators and
                                            provide BSEE proof of
                                            notice date.
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1156(b); 1158(b).........................  Notify adjacent operators    .5.
                                            submit letters of
                                            acceptance or objection to
                                            BSEE within 30 days after
                                            notice; include proof of
                                            notice date.
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1157; 1167...............................  Request approval to produce  12
                                            gas-cap gas in an oil       $4,592 per request.
                                            reservoir with an
                                            associated gas cap, or to
                                            continue producing an oil
                                            well showing
                                            characteristics of a gas
                                            well with an associated
                                            gas cap; submit producing
                                            an oil well showing
                                            characteristics of a gas
                                            well with an associated
                                            gas cap; submit supporting
                                            information.
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1158; 1167...............................  Request approval to          6.
                                            downhole commingle          $5,357 per request.
                                            hydrocarbons; submit
                                            supporting information;
                                            notify operators and
                                            provide proof of notice
                                            date.
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                                   FLARING, VENTING, and BURNING HYDROCARBONS
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1160; 1161; 1163(e)......................  Request approval to flare    0.5.
                                            or vent natural gas or
                                            exceed specified time
                                            limits/volumes; submit
                                            evaluation/documentation;
                                            report flare/vent
                                            information due to blow
                                            down of transportation
                                            pipelines within 72 hours
                                            after incident.
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1160(b); 1164(b)(1), (2).................  H2S Contingency, Exploration, or Development and Production Plans
                                            and, Development Operations Coordination Documents--burdens covered
                                            under 1014-0018 and BOEM's 1010-0151. Monitor air quality and
                                            report--burdens covered under BOEM's 1010-0057.
----------------------------------------------------------------------------------------------------------------
1162; 1163(e)............................  Request approval to burn     0.5.
                                            produced liquid
                                            hydrocarbons; demonstrate
                                            no risk and/or submit
                                            documentation re
                                            transport. If approval
                                            needed, submit
                                            documentation with
                                            relevant information re
                                            hydrocarbons burned under
                                            the approval.
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1163.....................................  Initial purchase and         $77,000 per meter.
                                            installation of gas meters
                                            to measure the amount of
                                            gas flared or vented.
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1163(a)(1)...............................  Notify BSEE when facility    0.833
                                            begins to process more
                                            than an average of 2,000
                                            bopd per month..
----------------------------------------------------------------------------------------------------------------
1163(b);.................................  Report to ONRR hydrocarbons produced, including measured gas flared/
                                            vented and liquid hydrocarbon burned--burden covered under 1012-
                                            0004.
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[[Page 59211]]

 
1163(a), (c), (d)........................  Maintain records for 6       13.
                                            years detailing gas
                                            flaring/venting, liquid
                                            hydrocarbon burning;
                                           flare/vent meter             .5.
                                            recordings; make available
                                            for inspection or provide
                                            copies upon request.
----------------------------------------------------------------------------------------------------------------
1164(c)..................................  Submit monthly reports of    2.
                                            flared or vented gas
                                            containing H2S.
----------------------------------------------------------------------------------------------------------------
                                               OTHER REQUIREMENTS
----------------------------------------------------------------------------------------------------------------
1165(b)..................................  Submit proposed plan and     12.
                                            supporting information for
                                            enhanced recovery
                                            operations.
----------------------------------------------------------------------------------------------------------------
1165(c)..................................  Submit periodic reports of volumes of oil, gas, or other substances
                                            injected, produced, or produced for a second time--burden covered
                                            under ONRR's 1012-0004.
----------------------------------------------------------------------------------------------------------------
1166.....................................  Alaska Region only: submit   1.
                                            annual reservoir            100.
                                            management report and       20.
                                            supporting information:
                                            Required by State; New
                                            development not State;
                                            Annual revision.
----------------------------------------------------------------------------------------------------------------
1150-1167................................  General departure or         1.
                                            alternative compliance
                                            requests not specifically
                                            covered elsewhere in
                                            Subpart K.
----------------------------------------------------------------------------------------------------------------
* Reporting burden for this form is estimated to average 0.1 to 3 hours per form depending on the number of well
  tests reported, including the time for reviewing instructions, gathering and maintaining data, and completing
  and reviewing the form.

    Estimated Reporting and Recordkeeping Non-Hour Cost Burden: We have 
identified four non-hour cost burdens for this collection. Section 
250.1157 requires a fee ($4,592) for a gas cap production request. 
Section 250.1156 requires a fee ($3,608) to produce within 500 feet of 
a lease line request. Section 250.1158 requires a fee ($5,357) for a 
downhole commingling request. Section 250.1163 requires purchase and 
installation of gas meters ($77,000) to measure the amount of gas 
flared or vented for facilities that produce more than 2,000 bopd. We 
have not identified any other non-hour cost burdens associated with 
this collection of information.
    Public Disclosure Statement: The PRA (44 U.S.C. 3501, et seq.) 
provides that an agency may not conduct or sponsor a collection of 
information unless it displays a currently valid OMB control number. 
Until OMB approves a collection of information, you are not obligated 
to respond.
    Comments: Before submitting an ICR to OMB, PRA section 
3506(c)(2)(A) requires each agency ``* * * to provide notice * * * and 
otherwise consult with members of the public and affected agencies 
concerning each proposed collection of information * * *''. Agencies 
must specifically solicit comments to: (a) Evaluate whether the 
collection is necessary or useful; (b) evaluate the accuracy of the 
burden of the proposed collection of information; (c) enhance the 
quality, usefulness, and clarity of the information to be collected; 
and (d) minimize the burden on the respondents, including the use of 
technology.
    Agencies must also estimate the non-hour paperwork cost burdens to 
respondents or recordkeepers resulting from the collection of 
information. Therefore, if you have other than hour burden costs to 
generate, maintain, and disclose this information, you should comment 
and provide your total capital and startup cost components or annual 
operation, maintenance, and purchase of service components. For further 
information on this burden, refer to 5 CFR 1320.3(b)(1) and (2), or 
contact the Bureau representative listed previously in this notice.
    We will summarize written responses to this notice and address them 
in our submission for OMB approval. As a result of your comments, we 
will make any necessary adjustments to the burden in our submission to 
OMB.
    Public Comment Procedures: Before including your address, phone 
number, email address, or other personal identifying information in 
your comment, you should be aware that your entire comment--including 
your personal identifying information--may be made publicly available 
at any time. While you can ask us in your comment to withhold your 
personal identifying information from public review, we cannot 
guarantee that we will be able to do so.

    Dated: September 18, 2012.
Robert W. Middleton,
Deputy Chief, Office of Offshore Regulatory Programs.
[FR Doc. 2012-23687 Filed 9-25-12; 8:45 am]
BILLING CODE 4310-VH-P
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