American Oil and Gas Reporter - October 2018 - 29

modified, and existing well sites, although
an exemption was allowed for existing
sites if a qualified professional engineer
certified that it was technically infeasible
to do so.
In its proposed amendments, EPA
says, it is seeking "comments and examples of circumstances at new well sites
that would make it technically infeasible
to control pneumatic pump emissions."
The agency says the amendments
also propose to allow "either a professional engineer or in-house engineer
with appropriate expertise to make those
certifications."
Regarding alternative means of emissions limitation (AMEL), the 2016 NSPS
required operators to request separate
AMELs for monitoring or reducing emissions from well sites and compressor stations, and well completions and reciprocating compressors. The 2018 rule proposes "to clarify that an individual AMEL
application may include the same technology for multiple sites, provided the
required information is provided for each
site," EPA says.
The agency adds, "The proposed
amendments also would allow operators
to join with manufacturers, vendors or
trade associations to apply for an AMEL
that incorporates the use of emerging
technologies."
The amendments to the 2016 NSPS
may be accessed at www.epa.gov/controlling-air-pollution-oil-and-natural-gasindustry. EPA says it will accept comments on the proposed regulation for 60
days following its publication in the
Federal Register.
Venting And Flaring
BLM's final revised venting and flaring regulation appeared to come closer
to hitting the mark, at least from an industry perspective, although the attorneys
general in California and New Mexico
immediately filed a lawsuit challenging
the rule's legality.
According to the Sept. 28 Federal
Register, the 2018 final rule rescinds the
2016 rule's "novel requirements pertaining to waste minimization plans,
gas-capture percentages, well drilling,
well completion and related operations,
pneumatic controllers, pneumatic diaphragm pumps, storage vessels, and
leak detection and repair."
BLM says the final rule still will discourage excessive venting and flaring by
"placing volume and/or time limits on
royalty-free venting and flaring during
production testing, emergencies, and
downhole well maintenance and liquids
unloading." It says it is adding provisions
regarding deference to appropriate state

or tribal regulations in determining when
flaring associated gas from oil wells will
be royalty free.
BLM says its 2018 rule retains the
2016 rule's Subpart 3178 provisions,
"which incentivize the beneficial use of
gas by making gas used for operations
and production purposes royalty free."
Kari Cutting, vice president of the
North Dakota Petroleum Council, says,
"BLM did an excellent job revising this
rule and removing requirements that duplicate and conflict with state regulations.
The new rule will better align venting
and flaring regulations with President
Trump's priorities on energy development,
job creation and reduced compliance
costs. These changes also will allow BLM
to recognize state regulatory efforts and
avoid duplicative requirements."
NDPC President Ron Ness comments
that the 2016 rule created additional duties
for BLM staff that duplicated state regulators' actions. This took attention and
resources away from building the gas
processing and transportation infrastructure
necessary to capture natural gas, he says.
"The oil and gas industry is fully supportive of capturing more natural gas,
but unfortunately, the 2016 rule was not
preventing waste, it was causing it," he
charges. "For this reason, we commend
Interior Secretary (Ryan) Zinke's rewrite
of these rules."
Independent Petroleum Association of
New Mexico Executive Director Jim Winchester says the 2016 rule "would have
decimated a large number of independent
producers and wells in New Mexico" by
disproportionally targeting oil wells that
produced less than 15 boe a day.
He estimates more than half of the
state's 30,000 marginal wells would have
been abandoned as a result of the enormous
costs imposed by the 2016 rule, resulting
in unrecovered resources and job losses
valued at $112 million.
BLM estimates that 73 percent of
wells on leases it administers are marginal, and that the annual compliance
costs associated with the 2016 rule would
have comprised 24 percent of an operator's annual revenues from even the
highest-producing marginal oil wells
and 86 percent of an operator's annual
revenues from the highest-producing
marginal gas wells.
The revised venting and flaring rule
is to take effect on Nov. 27.
States Sue
California Attorney General Xavier
Becerra and New Mexico Attorney General
Hector Balderas, along with the California
Air Resources Board, filed a lawsuit Sept.
18 in the U.S. District Court for the

Northern District of California, contending
the new venting and flaring rule violated
the Administrative Procedure Act, Mineral
Leasing Act and National Environmental
Policy Act.
Their lawsuit contends, "BLM fails
to offer a reasoned explanation for repealing requirements that, just two years
ago, the agency determined were necessary
to fulfill its statutory mandates. The rationale that BLM does provide-that the
Waste Prevention Rule would 'unnecessarily encumber energy production, constrain economic growth, and prevent job
creation'-lacks merit and is directly contradicted by the record."
In announcing the lawsuit, AG Becerra
declared, "We have sued the administration
before over the illegal delay and suspension
of this rule and will continue doing everything in our power to hold it accountable
for the sake of our people and planet."
Becerra points out that he and Balderas
sued the government after BLM in June
2017 attempted to postpone compliance
with key portions of the Waste Prevention,
Production Subject to Royalties, and Resource Conservation rule utilizing Section
705 of the APA.
After the Northern California District
Court ruled in states' favor, Becerra recalls,
BLM issued a proposed rule to delay implementation in October 2017, followed
by a final rule on Dec. 8, 2017, and the
two states sued again.
r

New Gathering System
Supports Delaware Basin
DALLAS-The EnLink Midstream
companies, EnLink Midstream Partners
LP and EnLink Midstream LLC, say they
will build a gathering system in the Northern Delaware Basin.
The Avenger Crude Oil Gathering
System is anchored by a 10-year contract
with Devon Energy Corp., and is supported by dedications from Devon's Todd
(Eddy and Lea counties in New Mexico)
and Potato Basin (Eddy County) development areas.
"EnLink has an established natural
gas footprint in the Delaware Basin, and
Avenger expands our service offerings
by leveraging our crude gathering expertise
to better serve our customers," says Michal
J. Garberding, EnLink's president and
chief executive officer.
The EnLink companies say they will
invest $35 million-$40 million in capital
expenditures to develop Avenger in
2018. Further capital expenditures are
expected in the future as Devon continues
to develop its acreage in the area, the
groups note.
r
OCTOBER 2018 29
http://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry http://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry http://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry
American Oil and Gas Reporter - October 2018

Table of Contents for the Digital Edition of American Oil and Gas Reporter - October 2018
