The Bureau of Land Management (BLM) provides the operational requirements for the exploration, development, and production of oil and gas on Federal and Indian onshore leases, which were collectively known as the "Onshore Orders." The replacement for Onshore Order 4 (43 CFR 3174) was published in the Federal Register on November 17, 2016 and will become effective on January 17, 2017.
If you are currently involved with oil and gas production which is regulated by the BLM, we strongly recommend reviewing the changes to determine how they may impact your business and operations. Listed below are some of the changes which relate to oil measurement:
- LACT (Lease Automated Custody Transfer) unit totalizers can no longer employ automatic temperature or API gravity compensators.
- LACT meters must be proved anytime the non-resettable totalizer reaches 75,000 bbls or quarterly, whichever comes first; the frequency, however, should not exceed monthly.
- Coriolis meters are permitted in lieu of PD meters, but either type of meter must first be approved by the BLM through their Production Measurement Team. Note that the requirement to use BLM-approved equipment will not go into effect until January 17, 2019.
- All tanks used for measurement by tank gauging must be calibrated using actual tank measurements. Two consecutive identical manual gauging measurements are required for all tank sizes, or three consecutive measurements averaged to the nearest 1/8 inch for tanks with a capacity of greater than 1,000 bbls and to the nearest 1/4 inch for tanks of 1,000 bbls or less.
- Oil storage tanks must be vapor-tight and all venting should be through a pressure vacuum relief valve, unless connected to a vapor recovery or flare system.
- Automatic tank gauging is now acceptable and various makes/models of approved equipment will be posted on the BLM website prior to January 17, 2019.
As mentioned in our most recent Statement of the Month, the final regulations are available on the BLM’s website; click here
to view these.
We would like to take this opportunity to wish everyone peace and happiness as this year comes to a close, and hope the upcoming New Year fulfills all of your wishes.
Happy Holidays and Best Wishes for 2017!
"I have noticed even people who claim everything is predestined and that we
can do nothing to change it, look before they cross the road."
~ Stephen Hawking, British theoretical physicist