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GAO-17-275R 1 (2016-12-05)

handle is hein.gao/gaobadsxo0001 and id is 1 raw text is: G A O U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 B-328613 December 5, 2016 The Honorable Lisa Murkowski Chairman The Honorable Maria Cantwell Ranking Member Committee on Energy and Natural Resources United States Senate The Honorable Rob Bishop Chairman The Honorable Rail Grijalva Ranking Member Committee on Natural Resources House of Representatives Subject: Department of the Interior, Bureau of Land Management- Waste Prevention, Production Subject to Royalties, and Resource Conservation Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of the Interior, Bureau of Land Management (BLM) entitled Waste Prevention, Production Subject to Royalties, and Resource Conservation (RIN: 1004-AE14). We received the rule on November 18, 2016. It was published in the Federal Registeras a final rule on November 18, 2016, with an effective date of January 17, 2017. 81 Fed. Reg. 83,008. The final rule requires operators to take various actions to reduce waste of gas, establishes criteria for when flared gas will qualify as waste and therefore be subject to royalties, and clarifies which on-site uses of gas are exempt from royalties. The rule focuses on several points or processes in the oil and gas production process where BLM determined waste-prevention actions are most effective and least costly: venting and flaring of associated gas from development oil wells (routine flaring occurs at oil wells that dispose of gas as a waste product); gas leaks from equipment at the well site or elsewhere on the lease; operation of high-bleed pneumatic controllers and certain pneumatic pumps; gas emissions from storage vessels; downhole well maintenance and liquids unloading; and well drilling and completions. Enclosed is our assessment of BLM's compliance with the procedural steps required by section 801 (a)(1)(B)(i) through (iv) of title 5 with respect to the rule. Our review of the procedural steps taken indicates that BLM complied with the applicable requirements. GAO-1 7-275R

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