82 FR 27430 - Waste Prevention, Production Subject to Royalties, and Resource Conservation; Postponement of Certain Compliance Dates

DEPARTMENT OF THE INTERIOR
Bureau of Land Management

Federal Register Volume 82, Issue 114 (June 15, 2017)

Page Range		27430-27431
FR Document		2017-12325

On November 18, 2016, the Bureau of Land Management (BLM) issued a final rule entitled, ``Waste Prevention, Production Subject to Royalties, and Resource Conservation'' (the ``Waste Prevention Rule'' or ``Rule''). Immediately after the Waste Prevention Rule was issued, petitions for judicial review of the Rule were filed by industry groups and States with significant BLM-managed Federal and Indian minerals. This litigation has been consolidated and is now pending in the U.S. District Court for the District of Wyoming. In light of the existence and potential consequences of the pending litigation, the BLM has concluded that justice requires it to postpone the compliance dates for certain sections of the Rule pursuant to the Administrative Procedure Act, pending judicial review.

Federal Register, Volume 82 Issue 114 (Thursday, June 15, 2017)

[Federal Register Volume 82, Number 114 (Thursday, June 15, 2017)]
[Rules and Regulations]
[Pages 27430-27431]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-12325]


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DEPARTMENT OF THE INTERIOR

Bureau of Land Management

43 CFR Part 3170

[17X.LLWO310000.L13100000.PP0000]
RIN 1004-AE14


Waste Prevention, Production Subject to Royalties, and Resource 
Conservation; Postponement of Certain Compliance Dates

AGENCY: Bureau of Land Management, Interior.

ACTION: Notification; postponement of compliance dates.

-----------------------------------------------------------------------

SUMMARY: On November 18, 2016, the Bureau of Land Management (BLM) 
issued a final rule entitled, ``Waste Prevention, Production Subject to 
Royalties, and Resource Conservation'' (the ``Waste Prevention Rule'' 
or ``Rule''). Immediately after the Waste Prevention Rule was issued, 
petitions for judicial review of the Rule were filed by industry groups 
and States with significant BLM-managed Federal and Indian minerals. 
This litigation has been consolidated and is now pending in the U.S. 
District Court for the District of Wyoming. In light of the existence 
and potential consequences of the pending litigation, the BLM has 
concluded that justice requires it to postpone the compliance dates for 
certain sections of the Rule pursuant to the Administrative Procedure 
Act, pending judicial review.

DATES: June 15, 2017.

FOR FURTHER INFORMATION CONTACT: Timothy Spisak at the BLM Washington 
Office, 20 M Street SE., Room 2134 LM, Washington, DC 20003, or by 
telephone at 202-912-7311. For questions relating to regulatory process 
issues, contact Faith Bremner at 202-912-7441.
    Persons who use a telecommunications device for the deaf (TDD) may 
call the Federal Relay Service (FRS) at 1-800-877-8339 to contact these 
individuals during normal business hours. FRS is available 24 hours a 
day, 7 days a week to leave a message or question with these 
individuals. You will receive a reply during normal business hours.

SUPPLEMENTARY INFORMATION:

I. Background

    On November 18, 2016, the BLM published the Waste Prevention Rule. 
(81 FR 83008) The Rule addresses, among other things, the loss of 
natural gas through venting, flaring, and leaks during the production 
of Federal and Indian oil and gas. The Rule replaced Notice to Lessees 
and Operators of Onshore Federal and Indian Oil and Gas Leases, Royalty 
or Compensation for Oil and Gas Lost (1980) (``NTL-4A''), which 
governed the venting and flaring of Federal and Indian gas for more 
than three decades. In addition to updating and revising the 
requirements of NTL-4A, the Rule contained new requirements that 
operators capture a certain percentage of the gas they produce (43 CFR 
3179.7), measure flared volumes (43 CFR 3179.9), upgrade or replace 
pneumatic equipment (43 CFR 3179.201-179.202), capture or combust 
storage tank vapors (43 CFR 3179.203), and implement leak detection and 
repair (LDAR) programs (43 CFR 3179.301-.305). The Rule did not 
obligate operators to comply with these new requirements until January 
17, 2018. Compliance with certain other provisions of the Rule is 
already mandatory, including the requirement that operators submit a 
``waste minimization plan'' with applications for permits to drill (43 
CFR 3162.3-1), new regulations for the royalty-free use of production 
(43 CFR subpart 3178), new regulatory definitions of ``unavoidably 
lost'' and ``avoidably lost'' oil and gas (43 CFR 3179.4), limits on 
venting and flaring during drilling and production operations (43 CFR 
3179.101-179.105), and requirements for downhole well maintenance and 
liquids unloading (43 CFR 3179.204).
    Immediately after the Rule was issued, petitions for judicial 
review of the Rule were filed by industry groups and States with 
significant BLM-managed Federal and Indian minerals. The petitioners in 
this litigation are the Western Energy Alliance (WEA), the Independent 
Petroleum Association of

[[Page 27431]]

America, the State of Wyoming, the State of Montana, the State of North 
Dakota, and the State of Texas. This litigation has been consolidated 
and is now pending in the U.S. District Court for the District of 
Wyoming. Wyoming v. U.S. Dep't of the Interior, Case No. 2:16-cv-00285-
SWS (D. Wyo.). Petitioners assert that the BLM was arbitrary and 
capricious in promulgating the Rule and that the Rule exceeds the BLM's 
statutory authority.
    On March 28, 2017, the President issued Executive Order No. 13783 
(E.O. 13783) entitled, ``Promoting Energy Independence and Economic 
Growth.'' E.O. 13783 directed the Secretary of the Interior (Secretary) 
to review the Rule for consistency with the policies set forth in 
Section 1 of E.O. 13783 and, if appropriate, publish for notice and 
comment a proposed rule suspending, revising, or rescinding the Rule. 
E.O. 13783 Sec. 7(b). On March 29, 2017, the Secretary issued 
Secretarial Order 3349 implementing E.O. 13783. The Department's review 
of the Rule is ongoing.
    The Secretary has received written requests from WEA and the 
American Petroleum Institute (API) that the BLM suspend the Rule or 
postpone its compliance dates in light of the regulatory uncertainty 
created by the pending litigation and the ongoing administrative review 
of the Rule. Letter from Kathleen M. Sgamma to Secretary Zinke (April 
4, 2017); letter from Jack N. Gerard to Secretary Zinke (May 16, 2017). 
Both API and WEA stated that operators face the prospect of significant 
expenditures to comply with provisions of the Rule that will become 
operative in January 2018. WEA specifically noted that the LDAR, 
storage tank, and pneumatic device provisions will require operators to 
begin purchasing and installing tens of thousands of replacement parts 
in the near future.
    Section 705 of the Administrative Procedure Act (APA), 5 U.S.C. 
705, provides that, ``[w]hen an agency finds that justice so requires, 
it may postpone the effective date of action taken by it, pending 
judicial review.'' The Rule obligates operators to comply with its 
``capture percentage,'' flaring measurement, pneumatic equipment, 
storage tank, and LDAR provisions beginning on January 17, 2018. This 
compliance date has not yet passed and is within the meaning of the 
term ``effective date'' as that term is used in Section 705 of the APA. 
Considering the substantial cost that complying with these requirements 
poses to operators (see U.S. Bureau of Land Management, Regulatory 
Impact Analysis for: Revisions to 43 CFR subpart 3100 (Onshore Oil and 
Gas Leasing) and 43 CFR subpart 3600 (sic) (Onshore Oil and Gas 
Operations), Additions of 43 CFR subpart 3178 (Royalty-Free Use of 
Lease Production) and 43 CFR subpart 3179 (Waste Prevention and 
Resource Conservation) (November 10, 2016)), and the uncertain future 
these requirements face in light of the pending litigation and 
administrative review of the Rule, the BLM finds that justice requires 
it to postpone the future compliance dates for the following sections 
of the Rule: 43 CFR 3179.7, 3179.9, 3179.201, 3179.202, 3179.203, and 
3179.301-3179.305.
    While the BLM believes the Waste Prevention Rule was properly 
promulgated, the petitioners have raised serious questions concerning 
the validity of certain provisions of the Rule. Given this legal 
uncertainty, operators should not be required to expend substantial 
time and resources to comply with regulatory requirements that may 
prove short-lived as a result of pending litigation or the 
administrative review that is already under way. Postponing these 
compliance dates will help preserve the regulatory status quo while the 
litigation is pending and the Department reviews and reconsiders the 
Rule.
    The provisions with compliance dates that have passed and are 
therefore unaffected by this document include: the requirement that 
operators submit a ``waste minimization plan'' with applications for 
permits to drill (43 CFR 3162.3-1), new regulations for the royalty-
free use of production (43 CFR subpart 3178), new regulatory 
definitions of ``unavoidably lost'' and ``avoidably lost'' oil and gas 
(43 CFR 3179.4), limits on venting and flaring during drilling and 
production operations (43 CFR 3179.101-179.105), and requirements for 
downhole well maintenance and liquids unloading (43 CFR 3179.204).
    Separately, the BLM intends to conduct notice-and-comment 
rulemaking to suspend or extend the compliance dates of those sections 
affected by the Rule.

II. Postponement of Compliance Dates

    Pursuant to Section 705 of the APA, the BLM hereby postpones the 
future compliance dates for the following sections affected by the 
final rule entitled, ``Waste Prevention, Production Subject to 
Royalties, and Resource Conservation'', pending judicial review: 43 CFR 
3179.7, 3179.9, 3179.201, 3179.202, 3179.203, and 3179.301-3179.305. 
BLM will publish a document announcing the outcome of that review.

    Dated: June 9, 2017.
Katharine S. MacGregor
Delegated the Authority of the Assistant Secretary for Land and 
Minerals Management.
[FR Doc. 2017-12325 Filed 6-14-17; 8:45 am]
BILLING CODE 4310-84-P

27430 Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Rules and Regulations

2000), nor will it impose substantial Implementation Plan deficiencies Washington, DC 20003, or by telephone
direct costs on tribal governments or regarding requirements of Clean Air Act at 202–912–7311. For questions relating
preempt tribal law. section 110(a)(2)(D)(i)(II) related to to regulatory process issues, contact
The Congressional Review Act, 5 interference with measures to protect Faith Bremner at 202–912–7441.
U.S.C. 801 et seq., as added by the Small visibility in another state (prong 4) for Persons who use a
Business Regulatory Enforcement the 2010 1-hour NO2, 2010 1-hour SO2, telecommunications device for the deaf
Fairness Act of 1996, generally provides and 2012 annual PM2.5 NAAQS. EPA (TDD) may call the Federal Relay
that before a rule may take effect, the conditionally approved the prong 4 Service (FRS) at 1–800–877–8339 to
agency promulgating the rule must portions of Tennessee’s March 13, 2014, contact these individuals during normal
submit a rule report, which includes a 2010 1-hour NO2 and 2010 1-hour SO2 business hours. FRS is available 24
copy of the rule, to each House of the infrastructure SIP submission and hours a day, 7 days a week to leave a
Congress and to the Comptroller General December 16, 2015, 2012 annual PM2.5 message or question with these
of the United States. EPA will submit a infrastructure SIP submission in an individuals. You will receive a reply
report containing this action and other action published in the Federal Register during normal business hours.
required information to the U.S. Senate, on June 15, 2017. If Tennessee fails to SUPPLEMENTARY INFORMATION:
the U.S. House of Representatives, and meet its commitment by June 15, 2018,
the Comptroller General of the United I. Background
the conditional approval will
States prior to publication of the rule in automatically become a disapproval on On November 18, 2016, the BLM
the Federal Register. A major rule that date and EPA will issue a finding published the Waste Prevention Rule.
cannot take effect until 60 days after it of disapproval. (81 FR 83008) The Rule addresses,
is published in the Federal Register. among other things, the loss of natural
[FR Doc. 2017–12342 Filed 6–14–17; 8:45 am]
This action is not a ‘‘major rule’’ as gas through venting, flaring, and leaks
BILLING CODE 6560–50–P
defined by 5 U.S.C. 804(2). during the production of Federal and
Under section 307(b)(1) of the CAA, Indian oil and gas. The Rule replaced
petitions for judicial review of this Notice to Lessees and Operators of
action must be filed in the United States DEPARTMENT OF THE INTERIOR Onshore Federal and Indian Oil and Gas
Court of Appeals for the appropriate Leases, Royalty or Compensation for Oil
circuit by August 14, 2017. Filing a Bureau of Land Management and Gas Lost (1980) (‘‘NTL–4A’’), which
petition for reconsideration by the governed the venting and flaring of
Administrator of this final rule does not 43 CFR Part 3170 Federal and Indian gas for more than
affect the finality of this action for the [17X.LLWO310000.L13100000.PP0000] three decades. In addition to updating
purposes of judicial review nor does it and revising the requirements of NTL–
extend the time within which a petition RIN 1004–AE14 4A, the Rule contained new
for judicial review may be filed, and requirements that operators capture a
shall not postpone the effectiveness of Waste Prevention, Production Subject certain percentage of the gas they
such rule or action. This action may not to Royalties, and Resource produce (43 CFR 3179.7), measure
be challenged later in proceedings to Conservation; Postponement of flared volumes (43 CFR 3179.9),
enforce its requirements. See section Certain Compliance Dates upgrade or replace pneumatic
307(b)(2). AGENCY: Bureau of Land Management, equipment (43 CFR 3179.201–179.202),
Interior. capture or combust storage tank vapors
List of Subjects in 40 CFR Part 52 (43 CFR 3179.203), and implement leak
ACTION: Notification; postponement of
Environmental protection, Air detection and repair (LDAR) programs
pollution control, Incorporation by compliance dates. (43 CFR 3179.301–.305). The Rule did
reference, Intergovernmental relations, SUMMARY: On November 18, 2016, the not obligate operators to comply with
Nitrogen dioxide, Ozone, Particulate Bureau of Land Management (BLM) these new requirements until January
matter, Reporting and recordkeeping issued a final rule entitled, ‘‘Waste 17, 2018. Compliance with certain other
requirements, Volatile organic Prevention, Production Subject to provisions of the Rule is already
compounds. Royalties, and Resource Conservation’’ mandatory, including the requirement
Dated: May 25, 2017. (the ‘‘Waste Prevention Rule’’ or that operators submit a ‘‘waste
V. Anne Heard, ‘‘Rule’’). Immediately after the Waste minimization plan’’ with applications
Prevention Rule was issued, petitions for permits to drill (43 CFR 3162.3–1),
Acting Regional Administrator, Region 4.
for judicial review of the Rule were filed new regulations for the royalty-free use
40 CFR part 52 is amended as follows: of production (43 CFR subpart 3178),
by industry groups and States with
significant BLM-managed Federal and new regulatory definitions of
PART 52—APPROVAL AND ‘‘unavoidably lost’’ and ‘‘avoidably lost’’
PROMULGATION OF Indian minerals. This litigation has been
oil and gas (43 CFR 3179.4), limits on
IMPLEMENTATION PLANS consolidated and is now pending in the
venting and flaring during drilling and
U.S. District Court for the District of
1. The authority citation for part 52 production operations (43 CFR
■ Wyoming. In light of the existence and
continues to read as follows: 3179.101–179.105), and requirements
potential consequences of the pending
for downhole well maintenance and
Authority: 42 U.S.C. 7401 et seq. litigation, the BLM has concluded that
liquids unloading (43 CFR 3179.204).
justice requires it to postpone the Immediately after the Rule was
pmangrum on DSK3GDR082PROD with RULES

Subpart RR—Tennessee compliance dates for certain sections of issued, petitions for judicial review of
the Rule pursuant to the Administrative the Rule were filed by industry groups
■ 2. Add § 52.2219 to read as follows: Procedure Act, pending judicial review. and States with significant BLM-
§ 52.2219 Conditional approval. DATES: June 15, 2017. managed Federal and Indian minerals.
Tennessee submitted a letter to EPA FOR FURTHER INFORMATION CONTACT: The petitioners in this litigation are the
on December 7, 2016, with a Timothy Spisak at the BLM Washington Western Energy Alliance (WEA), the
commitment to address the State Office, 20 M Street SE., Room 2134 LM, Independent Petroleum Association of

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Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Rules and Regulations 27431

America, the State of Wyoming, the (Onshore Oil and Gas Leasing) and 43 Dated: June 9, 2017.
State of Montana, the State of North CFR subpart 3600 (sic) (Onshore Oil and Katharine S. MacGregor
Dakota, and the State of Texas. This Gas Operations), Additions of 43 CFR Delegated the Authority of the Assistant
litigation has been consolidated and is subpart 3178 (Royalty-Free Use of Lease Secretary for Land and Minerals
now pending in the U.S. District Court Production) and 43 CFR subpart 3179 Management.
for the District of Wyoming. Wyoming v. (Waste Prevention and Resource [FR Doc. 2017–12325 Filed 6–14–17; 8:45 am]
U.S. Dep’t of the Interior, Case No. 2:16– Conservation) (November 10, 2016)), BILLING CODE 4310–84–P
cv–00285–SWS (D. Wyo.). Petitioners and the uncertain future these
assert that the BLM was arbitrary and requirements face in light of the
capricious in promulgating the Rule and pending litigation and administrative NATIONAL FOUNDATION FOR THE
that the Rule exceeds the BLM’s review of the Rule, the BLM finds that ARTS AND HUMANITIES
statutory authority. justice requires it to postpone the future
On March 28, 2017, the President compliance dates for the following National Endowment for the Arts
issued Executive Order No. 13783 (E.O. sections of the Rule: 43 CFR 3179.7,
13783) entitled, ‘‘Promoting Energy 3179.9, 3179.201, 3179.202, 3179.203, 45 CFR Parts 1149 and 1158
Independence and Economic Growth.’’ and 3179.301–3179.305.
E.O. 13783 directed the Secretary of the RIN 3135–AA33
While the BLM believes the Waste
Interior (Secretary) to review the Rule Prevention Rule was properly Implementing the Federal Civil
for consistency with the policies set promulgated, the petitioners have raised Penalties Adjustment Act
forth in Section 1 of E.O. 13783 and, if serious questions concerning the Improvements Act of 2015
appropriate, publish for notice and validity of certain provisions of the
comment a proposed rule suspending, Rule. Given this legal uncertainty, AGENCY: National Endowment for the
revising, or rescinding the Rule. E.O. operators should not be required to Arts, National Foundation for the Arts
13783 Sec. 7(b). On March 29, 2017, the expend substantial time and resources and Humanities.
Secretary issued Secretarial Order 3349 to comply with regulatory requirements ACTION: Interim final rule; request for
implementing E.O. 13783. The that may prove short-lived as a result of comments.
Department’s review of the Rule is pending litigation or the administrative
ongoing. review that is already under way. SUMMARY: The National Endowment for
The Secretary has received written the Arts (NEA) is adjusting the
Postponing these compliance dates will
requests from WEA and the American maximum civil monetary penalties that
help preserve the regulatory status quo
Petroleum Institute (API) that the BLM may be imposed for violations of the
while the litigation is pending and the
suspend the Rule or postpone its Program Fraud and Civil Remedies Act
Department reviews and reconsiders the
compliance dates in light of the (PFCRA) and the NEA’s Restrictions on
Rule.
regulatory uncertainty created by the Lobbying to reflect the requirements of
pending litigation and the ongoing The provisions with compliance dates
that have passed and are therefore the Federal Civil Penalties Inflation
administrative review of the Rule. Letter Adjustment Act Improvements Act of
from Kathleen M. Sgamma to Secretary unaffected by this document include:
the requirement that operators submit a 2015 (the 2015 Act). The 2015 Act
Zinke (April 4, 2017); letter from Jack N. further amended the Federal Civil
Gerard to Secretary Zinke (May 16, ‘‘waste minimization plan’’ with
applications for permits to drill (43 CFR Penalties Inflation Adjustment Act of
2017). Both API and WEA stated that 1990 (the Inflation Adjustment Act) to
operators face the prospect of significant 3162.3–1), new regulations for the
royalty-free use of production (43 CFR improve the effectiveness of civil
expenditures to comply with provisions monetary penalties and to maintain
of the Rule that will become operative subpart 3178), new regulatory
definitions of ‘‘unavoidably lost’’ and their deterrent effect.
in January 2018. WEA specifically noted
‘‘avoidably lost’’ oil and gas (43 CFR DATES:
that the LDAR, storage tank, and
pneumatic device provisions will 3179.4), limits on venting and flaring Effective date: This rule is effective
require operators to begin purchasing during drilling and production June 15, 2017.
and installing tens of thousands of operations (43 CFR 3179.101–179.105), Comments date: Submit comments on
replacement parts in the near future. and requirements for downhole well or before July 17, 2017.
Section 705 of the Administrative maintenance and liquids unloading (43 ADDRESSES: You may submit comments,
Procedure Act (APA), 5 U.S.C. 705, CFR 3179.204). identified by RIN 3135–AA33, by any of
provides that, ‘‘[w]hen an agency finds Separately, the BLM intends to the following methods:
that justice so requires, it may postpone conduct notice-and-comment • Federal eRulemaking Portal:
the effective date of action taken by it, rulemaking to suspend or extend the https://www.regulations.gov. Follow the
pending judicial review.’’ The Rule compliance dates of those sections instructions for submitting comments.
obligates operators to comply with its affected by the Rule. • Email: generalcounsel@arts.gov.
‘‘capture percentage,’’ flaring Include RIN 3135–AA33 in the subject
II. Postponement of Compliance Dates
measurement, pneumatic equipment, line of the message.
storage tank, and LDAR provisions Pursuant to Section 705 of the APA, • Mail: National Endowment for the
beginning on January 17, 2018. This the BLM hereby postpones the future Arts, Office of the General Counsel, 400
compliance date has not yet passed and compliance dates for the following 7th Street SW., Second Floor,
is within the meaning of the term sections affected by the final rule Washington, DC 20506.
pmangrum on DSK3GDR082PROD with RULES

‘‘effective date’’ as that term is used in entitled, ‘‘Waste Prevention, Production • Hand Delivery/Courier: National
Section 705 of the APA. Considering the Subject to Royalties, and Resource Endowment for the Arts, Office of the
substantial cost that complying with Conservation’’, pending judicial review: General Counsel, 400 7th Street SW.,
these requirements poses to operators 43 CFR 3179.7, 3179.9, 3179.201, Second Floor, Washington, DC 20506.
(see U.S. Bureau of Land Management, 3179.202, 3179.203, and 3179.301– Instructions: All submissions received
Regulatory Impact Analysis for: 3179.305. BLM will publish a document must include the agency name and
Revisions to 43 CFR subpart 3100 announcing the outcome of that review. docket number or Regulatory

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Document Created: 2017-06-15 01:03:41
Document Modified: 2017-06-15 01:03:41

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Notification; postponement of compliance dates.
Dates		June 15, 2017.
Contact		Timothy Spisak at the BLM Washington Office, 20 M Street SE., Room 2134 LM, Washington, DC 20003, or by telephone at 202-912-7311. For questions relating to regulatory process issues, contact Faith Bremner at 202-912-7441.
FR Citation		82 FR 27430
RIN Number		1004-AE14

82 FR 27430 - Waste Prevention, Production Subject to Royalties, and Resource Conservation; Postponement of Certain Compliance Dates

DEPARTMENT OF THE INTERIORBureau of Land Management

Federal Register Volume 82, Issue 114 (June 15, 2017)

DEPARTMENT OF THE INTERIOR
Bureau of Land Management