Leak Detection and Repair

Maintain tanks in a workmanlike manner. Operators shall catch leaks and drips, contain spills, and cleanup promptly. The division shall be notified of all fires, leaks, breaks, spills, and blowouts. Prior to drilling the plug after cementing, all casing strings except the drive or structural casing, shall be pressure tested. If there are other indications of a leak, corrective measures must be taken until a satisfactory test is obtained. All spills or leakage of oil and liquid or solid pollutants shall be immediately reported to the division. A complete written statement of all circumstances shall be forwarded to said agencies within 72 hours of such occurrences.

Applicant shall submit detailed construction/installation diagrams of leak detection systems. The unloading facility shall be designed with a leak detection system if determined necessary by the division. Applicant shall submit procedures for repair should leakage occur. The division shall be notified at least 72 hours prior to the installation of leak detection systems. All unauthorized discharges or spills from disposal facilities shall be reported within 24 hours to the division. This report shall include the volume and type of wastes received at the facility during the quarter and results of the weekly leak detection system inspections.

Venting and/or Flaring

Produced gas from an oil/gas well may be flared or vented only in the following amounts: Up to 1,800 MCF of gas may be vented or flared from an individual well on a monthly basis at any time without approval. During the period of time allowed for conducting any approved test, the operator may vent or flare all produced gas/oil well gas as needed for conducting the test. The operator shall not vent or flare gas that is not necessary for conducting the test. During the first month immediately following the time allowed for conducting the initial production test, the operator may vent or flare up to 3,000 MCF of gas without approval. Unavoidable or short-term gas/oil well gas venting or flaring may occur without approval.

If an operator desires to produce a well for the purpose of testing beyond the time allowed, the operator shall submit a written request for administrative action to the division to allow venting or flaring. The operator shall provide any information pertinent to a determination of whether marketing or otherwise conserving the produced gas is economically feasible. Upon such request the division may authorize venting or flaring at unrestricted rates for up to 30 days of testing or no more than 50 MMCF of gas vented or flared, whichever is less.

Once a well is completed for production, the operator is allowed unavoidable or short-term venting or flaring without approval only in the following cases: Gas may be vented or released from oil storage tanks unless the division determines that the recovery of such vapors is warranted. Gas may be vented or flared from a well during emergencies if shutting in or restricting production from the well would cause waste or create adverse impact on the well. Upon notification, the division shall determine if venting or flaring is justified and specify conditions of approval if necessary. Gas may be vented or flared from a well during periods of well purging or evaluation tests not exceeding a period of 24 hours or a maximum of 144 hours per month. The operator shall provide immediate written notification to the division in all such cases.

If an operator wishes to flare or vent a greater amount of produced gas than allowed, the operator must submit a request to the board. The request should include the following items: A statement justifying the need to vent or flare more than the allowable amount. A description of test results. A chemical analysis of the produced gas. The estimated oil and gas reserves. A description of the reinjection potential. The amount of gas used in operations. An economic evaluation supporting the operator's determination that conservation of the gas is not economically viable. Any other information pertinent to a determination of whether marketing or otherwise conserving the produced gas is economically feasible.

Upon review of the request for approval to vent or flare gas, the board may elect to: Grant the request. Restrict production until the gas is marketed. Take any other action the board deems appropriate.

When venting or flaring from a well has not been approved by the division the board may issue a formal order to alleviate the noncompliance and/or require the operator to appear before the board to provide justification of such venting or flaring.

No plant shall flare or vent unless venting or flaring is made necessary by mechanical difficulty of a very limited temporary nature or unless the gas vented or flared is of no commercial value. In the event of a more prolonged mechanical difficulty or other reasons, or in the event a plant is unable to accept, process, and market all of the casinghead gas, the plant operator shall notify the division as soon as possible of the full details following which the division shall take such action as is necessary.