EMAIL TRANSMISSION – 05/21/2007
Instruction Memorandum No. MT-2007-053
To: Field Managers
From: State Director
Subject: Notice to Lessees (NTL) 2007-1 for Utilizing Electronic Flow Computers (EFCs) for Gas Measurement
Program Area: Federal and Indian Oil and Gas Operations.
Purpose: The purpose of this memorandum is to notify Field Offices of the issuance of NTL 2007-1; Standards for the Use of Electronic Flow Computers Used on Differential Type Flow Meters for Gas Measurement (Attachment 1). This IM only applies to the Miles City Field Office, North Dakota Field Office, and the Great Falls Field Station.
Policy/Action: The NTL 2007-1 regarding the standards for the use of EFCs used on differential type flow meters for gas measurement was signed on May 4, 2007. The EFCs that meet these standards and requirements are approved for use on all Federal and Indian oil and gas leases located within Montana, North Dakota, and South Dakota. Field Offices are required to implement the standards and requirements of the NTL.
Copies of the NTL were mailed to all of the operators of Federal and Indian oil and gas leases within Montana, North Dakota, and South Dakota. The NTL is also available on the Montana State Office website. Field Offices are encouraged to provide copies of the NTL to oil and gas field personnel involved with EFCs and to conduct outreach regarding the NTL when necessary.
This NTL supersedes the guidance issued in IM No. MT-90-18, Approval of Electronic Flow Computers, dated October 18, 1989.
Timeframe: The NTL is to be implemented immediately.
Budget Impact: The budget impact is anticipated to be minimal. Adequate base funding is provided to implement the NTL.
Background: The BLM is responsible for ensuring that gas removed from Federal and Indian oil and gas leases is accurately measured and properly reported. Existing regulatory requirements and standards for gas measurement on Federal and Indian oil and gas leases were published in Onshore Oil and Gas Order(Order) No. 5, on February 24, 1989 (54 FR 8100). Order No. 5 does not address new metering technology such as EFCs, which are now considered the industry standard, largely replacing analog chart recording devices. The EFCs, when set up and operated correctly, provide increased accuracy of gas measurement. Therefore, the appropriate use of EFC devices is beneficial to both industry and the BLM.
Without a revision to Order No. 5, EFCs can only be approved through the variance process. It may take several years to publish a revision addressing EFCs due to the procedures necessary to revise the existing Order No. 5. Therefore, a statewide NTL was necessary to allow the use of and to set the standards for EFCs.
A draft NTL was issued for public comment on November 9, 2007. Comments were received from three companies. The comments were reviewed and responses to the comments were prepared (Attachment 2).
Signed by: Gene R. Terland
Asst. FM, Havre
Asst. FM, Glasgow