Enforcement procedures associated with blm requests to increase oil and gas bonds bureau of land management c gastronomie plateaux repas

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Purpose: The Wyoming (WY) State Office Division of Minerals and Lands, continues to be concerned about potential liability in Wyoming from oil and gas operations on Federal leases. This includes, but is not limited to: (1) large oil/gas companies selling their 76 gas station hours properties to small independents, (2) the growing number of Federal wells in Wyoming that have been shut-in for an extended period of time, (3) potential insufficient bond coverage, and (4) increased number of companies filing for bankruptcy.

of WY-923 to require the operator (or bond principal, as appropriate) to raise the bond above the existing amount whenever there is an unacceptable degree of risk and/or potential liability to the Federal Government for the plugging and reclamation costs of unplugged wells. The Field Manager (AO) has been delegated authority to take enforcement actions for noncompliance (See 1203 Wyoming Delegation of Authority Manual Supplement for additional information).

You have 60 Calendar Days from receipt of this letter to file a new bond or a rider to your existing bond in the amount specified in this decision. The terms of Federal oil and gas leases and the regulations at 43 CFR 3104.1(a), 3162.3(a) and 3162.3-1(d) (3) specify that a sufficient oil and gas bond is required to drill and/or operate wells on Federal oil and gas leases, and to otherwise ensure compliance with the Mineral Leasing Act of 1920, as amended.

1. After completing a bond adequacy review, the AO will electricity in water pipes prepare and transmit a memo requesting the recommended bond increase amount to WY-923 within 10 business days following the review u gas hampton. Please include a copy of the Bond Adequacy Review Worksheet with the bond memo. The AO will timely input all required data into the Automated Fluid Minerals Support System (AFMSS) including entering the date of transmittal into the appropriate AFMSS screen (Date Recommended).

2. WY-923 will prepare and transmit the Additional Bond Amount Required decision letter, including noncompliance and appeals language, to the operator. A carbon copy should be provided to all Field and District Offices if the requested bond increase is for a statewide or nationwide bond. For good cause, WY-923 may approve a timely request z gas el salvador empleos from the operator for an extension of time to comply with the decision letter. WY-923 will track bond increase requests and bond increase amounts for reporting purposes.

3. If the operator does not submit a new bond or rider in the correct amount to WY-923 within 60 calendar days, WY-923 will notify the appropriate AO within 10 business days. If the bond is a statewide or nationwide bond, WY-923 will send electronic notification to all Wyoming Offices advising that the operator’s statewide or nationwide bond is inadequate.

This policy is also intended to re-emphasize that the AO has considerable discretion in determining proper bond amounts. However, if the AO chooses to override the points assigned by the worksheet or the prescribed amount of bond increase found in WO IM No. 2013-151, the AO must document the reason(s) why the bond was not increased by the prescribed amount in the case file. The AO may also decide to increase the bond as described at 43 CFR 3104.5(b).

Budget Impact: This policy will increase the time needed to follow up on any operator noncompliance issues as described in Attachment 1. Therefore, this policy may result in a slight to moderate impact to oil and gas budgets and workload when noncompliance is involved. However, this policy may actually reduce future gas in oil pressure washer adverse impacts to the BLM’s budget by decreasing the risk and potential liability in WY from oil and gas operations on Federal leases.

Background: WO IM No. 2013-151, Oil and Gas Bond Adequacy Reviews established policy requiring the AO to perform bond adequacy reviews on all oil and gas bonds at least once every 5 years or whenever a bond review is warranted. It is the responsibility of WY-923 to issue the Additional Bond Amount Required decision letter to the operator to raise the bond above the existing amount whenever there is an unacceptable degree gas bijoux soho of risk and potential liability to the Federal Government for the plugging and reclamation costs of unplugged wells.

1. After the 60-day timeframe identified in the bond increase decision, within 10 business days, WY-923 will notify the applicable AO that the operator did not comply with the bond increase decision. If the bond is a statewide or nationwide bond, WY-923 will send electronic notification to all WY Field Offices advising that the operator’s statewide or nationwide bond is inadequate. For recommended increases to a nationwide bond,

When the subject bond is a lease bond, only the applicable lease will p gasol be identified on the INC form. When the subject bond is a statewide or nationwide bond, all applicable Federal leases attached to the bond (only leases located within the Field Office that performed the bond review) will be identified on the INC form. When the subject bond is a unit bond, all Federal leases committed to the unit will be identified on the INC form. Generally, the abatement period should be set at 20 calendar days. For good cause, the AO may approve a timely request from the operator for an extension of time to comply with the INC.

6. If the operator fails to comply with the second INC, the AO will issue a Notice to Shut Down Operation. The shutdown of operations will apply to all operations on the leases located within the applicable Field Office area. The AO will send gas prices in michigan a copy of the Notice to all record title and operating rights owners. The abatement period to shut down all operations shall take into consideration the number of wells involved, but generally should not be less than 20 calendar days.

7. If the operator fails to comply with the second INC, the AO will also issue a Notice of Proposed Civil Penalties to the operator with a carbon copy to all applicable record title and operating rights owners. A copy of the Notice of Proposed Civil Penalties should also be sent to the WY-921 Inspection and Enforcement Coordinator and to the DO Energy Resource Advisor.

9. If the operator fails to respond to the Notice of Proposed Civil Penalties, the AO will also issue a Notice of Written Order to the current electricity bill nye record title owners requiring them to either comply with the bond increase decision, or provide a plan to plug all the wells, remove all the infrastructure, and reclaim all the disturbed surface. The Notice of Written Order should indicate that the reclamation activities must be completed in accordance with the approved Application for Permit to Drill (APD), or require the record title owners to submit a reclamation plan if the APD did not have a reclamation plan.

12. The AO will determine whether the lease(s) is capable of producing hydrocarbons in paying quantities. If the lease(s) is not capable of producing in paying quantities, the AO will notify WY-923. WY-923 will gas station near me open proceed with lease termination. If the lease(s) is capable of producing in paying quantities, the AO will notify WY-923. WY-923 will coordinate with the Regional Solicitor and the Department of Justice to cancel the lease(s).

13. The AO will take appropriate action as described in WO IM No. 2012-131, Entities in Noncompliance with Section 17(g) of the Mineral Leasing Act of 1920. Also, refer to the regulation at 43 CFR 3102.5-1. The Act prohibits the Secretary from issuing an oil and gas lease or approving an assignment or transfer of an oil and gas lease to any entity that has failed or refused to comply with reclamation requirements until such time the noncompliance is resolved to the satisfaction of the AO. The AO will notify WY-921 when entities are potentially eligible to be added to the Section 17(g) list. WY-921 will determine if the entity meets the requirements for listing, and prepare the notification letters to the affected parties; WY-923 will sign the notification letters and distribute as appropriate to WY-923 staff that are responsible for processing leasing actions. WY-921 will then notify WO-310 v gashi 2015 to place the entity on the 17(g) list.