New Mexico Register / Volume XXXIII, Issue 4 / February 22,
2022
This
is an amendment to 19.15.28 NMAC, Sections 8 and 10, effective February 22,
2022.
19.15.28.8 VENTING AND FLARING OF NATURAL
GAS:
A. Venting or flaring of natural gas from a natural gas gathering
system that constitutes waste as defined in 19.15.2 NMAC and is prohibited. The
operator has a general duty to maximize the gathering of natural gas by
minimizing the waste of natural gas through venting and flaring. The operator
may vent or flare natural gas only as authorized in Subsection B of 19.15.28.8
NMAC. In all circumstances, the operator
shall flare rather than vent natural gas except when flaring is technically infeasible
or would pose a risk to safe operations or personnel safety and venting is a
safer alternative than flaring.
B. The operator shall not flare or vent natural gas except:
(1) during an emergency or malfunction;
or
(2) during the following activities unless
prohibited by applicable state and federal law, rule, or regulation for the
emission of hydrocarbons and volatile organic compounds:
(a) repair and maintenance, including
blowing down and depressurizing equipment to perform repair or maintenance;
(b) normal operation of a gas‑activated
pneumatic controller or pump;
(c) normal operation of dehydration units
and amine treatment units;
(d) normal operation of compressors,
compressor engines, and turbines;
(e) normal operation of valves,
flanges, and connectors that are not the result of inadequate equipment design
or maintenance;
(f) normal operation of a storage tank
or other low-pressure production vessel, but not including venting from a thief
hatch that is not properly closed or maintained on an established schedule;
(g) gauging or sampling a storage tank or
other low-pressure vessel;
(h) loading out liquids from a storage
tank or other low-pressure vessel to a transport vehicle;
(i) normal
operations of valves, flanges or connectors that are not the result of
inadequate equipment design or maintenance;
(j) blow down to repair a gathering
pipeline;
(k) pigging a gathering pipeline;
(l) purging a gathering pipeline; or
(m) commissioning
of pipelines, equipment, or facilities only for as long as necessary to purge
introduced impurities from the pipeline or equipment.
C. Performance standards.
(1) The operator shall take all reasonable
actions to prevent and minimize leaks and releases of natural gas from a
natural gas gathering system and shall implement an operations plan to minimize
the waste of natural gas for each non‑contiguous natural gas gathering
system. The plan should include
procedures to reduce leaks and releases, such as a routine maintenance program,
cathodic protection, corrosion control, liquids management and integrity
management. The operator shall file its
operations plan with the division:
(a) for a natural gas gathering system
placed into service after May 25, 2021, within
60 days following the date the natural gas gathering system is placed into service;
(b) for a natural gas gathering system in
place on or before May 25, 2021, within 90 days following May 25, 2021; and
(c) for a natural gas gathering system to
which the operator added a new gathering pipeline during the calendar year or changed
the operations plan, an updated operations plan no later than March 31 of the following
year.
(2) During scheduled maintenance,
replacement, or repair of a new or existing natural gas gathering system, the
operator shall not vent natural gas during blowdown and shall route natural gas
to a portable flare stack which complies with the flare stack standards,
inspection, and recordkeeping requirements in Subsection E of 19.15.27.8 NMAC.
(3) During unscheduled maintenance,
replacement or repair of a new or existing natural gas gathering system, to the
extent that it is technically feasible and would not pose a risk to safe
operations or personnel safety, the operator shall not vent natural gas during
blowdown and shall route natural gas to a portable flare stack which complies
with the flare stack standards, inspection and recordkeeping in Subsection E of
19.15.27.8 NMAC.
(4) The operator shall conduct a weekly AVO
inspection of the compressors, dehydrators and treatment facilities associated
with a natural gas gathering system to confirm those components are operating
properly and there are no leaks or releases except as allowed in Subsection B
of 19.15.28.8 NMAC.
(a) During an AVO inspection the operator
shall inspect all components, including flare stacks, thief hatches, closed
vent systems, pumps, compressors, pressure relief devices, valves, lines,
flanges, connectors, and associated piping to identify defects, leaks, and
releases by:
(i) comprehensive
external visual inspection;
(ii) listening for pressure and liquid leaks;
and
(iii) smelling for unusual and strong odors.
(b) The operator shall make and keep a
record of an AVO inspection for no less than five years and make such records
available for inspection by the division upon request.
(c) Subject to the division’s prior
written approval, the operator may use a remote or automated monitoring technology
to detect leaks and releases in lieu of an AVO inspection.
(5) The operator shall perform an annual
monitoring of the entire length of a gathering pipeline using an AVO technique,
ALARM technology, aerial visual inspections, or other valid method to detect
leaks and releases. The operator shall
record and, upon the division’s request, report the date and time of the
monitoring, the method and technology used. The operator shall retain records
of monitoring for at least five years. Personnel conducting inspections shall
be knowledgeable on the methods and technology being used.
(6) For facilities constructed after May
25, 2021, facilities shall be designed to minimize waste.
(7) Operators have an obligation to
minimize waste and shall resolve emergencies as quickly and safely as is
feasible.
D. Reporting to affected upstream operators.
(1) No less than 14 days prior to the
date of scheduled maintenance, replacement or repair of a natural gas gathering
system, the operator shall provide written notification to each upstream
operator whose natural gas is gathered by the system of the date and expected
duration that the system will not gather natural gas.
(2) As soon as possible but no more than 12
hours after discovery of an emergency or malfunction, or the need for unscheduled
maintenance of a natural gas gathering system, the operator shall provide verbal
notification to each upstream operator whose natural gas is gathered by the
system of the date and expected duration that the system will not gather
natural gas, and shall provide written confirmation of the verbal notification,
including the date, time, person, and telephone number to whom verbal
notification was given no later than 24 hours after discovery.
(3) The operator shall make and keep a
record of each notification for no less than five years and make such records
available for inspection by the division upon request.
E. Measurement or estimation of vented and flared natural
gas.
(1) The operator shall measure or
estimate the volume of natural gas that it vents, flares or beneficially uses regardless
of the reason or authorization for such venting or flaring.
(2) The operator shall install equipment
to measure the volume of natural gas flared from a natural gas gathering
system.
(3) Measuring equipment shall conform to
an industry standard such as American Petroleum Institute (API) Manual of
Petroleum Measurement Standards (MPMS) Chapter 14.10 Measurement of Flow to
Flares.
(4) Measuring equipment shall not be designed
or equipped with a manifold that allows the diversion of natural gas around the
metering element except for the sole purpose of inspecting and servicing the
measuring equipment.
(5) If metering is not practicable due to
circumstances such as low flow rate or low pressure venting and flaring, the operator
shall estimate the volume of vented or flared natural gas using a methodology
that can be independently verified.
F. Reporting of vented or flared natural gas.
(1) Venting or flaring caused by an emergency, a malfunction, or of long
duration.
(a) The operator shall notify the
division of venting or flaring that exceeds 50 MCF in volume and either results
from an emergency or malfunction or lasts eight hours or more cumulatively
within any 24‑hour period from a single event by filing a form C-129 in
lieu of a C-141, except as provided by Subparagraph (d) of Paragraph (1) of
Subsection G of 19.15.27.8 NMAC, with the division as follows:
(i) for venting or flaring that equals
or exceeds 50 MCF but is less than 500 MCF from a single event, notify the
division in writing by filing a form C-129 no later than 15 days following
discovery or commencement of venting or flaring; or
(ii) for venting or flaring that equals or
exceeds 500 MCF or otherwise qualifies as a major release as defined in
19.15.29.7 NMAC from a single event, notify the division verbally or by e-mail
as soon as possible and no later than 24 hours following discovery or
commencement of venting or flaring and provide the information required in form
C-129. No later than 15 days following
the discovery or commencement of venting or flaring, the operator shall file a
form C-129 that verifies, updates, or corrects the verbal or e-mail
notification; and
(iii) no later than 15 days following the
termination of venting or flaring, notify the division by filing a form C-129.
(b) The operator shall provide and
certify the accuracy of the following information in the form C-129:
(i) operator’s name;
(ii) name and type of facility;
(iii) equipment involved;
(iv) compositional analysis of vented or
flared natural gas that is representative of the natural gas gathering system;
(v) date(s) and time(s) that venting or
flaring was discovered or commenced and terminated;
(vi) measured or estimated volume of vented
or flared natural gas;
(vii) cause and nature of venting or flaring;
(viii) steps taken to limit the duration and
magnitude of venting or flaring; and
(ix) corrective actions taken to eliminate the
cause and recurrence of venting or flaring.
(c) At the division’s request, the
operator shall provide and certify additional information by the specified date.
(d) The operator shall file a form C-141
instead of a form C-129 for a release which includes liquid during venting or
flaring that is or may be a major or minor release under 19.15.29.7 NMAC.
(2) Monthly
reporting of vented and flared natural gas. For each natural gas gathering system at which
venting or flaring occurred, the operator shall separately report the volume of
vented natural gas and the volume of flared natural gas for each month in each
category listed below. Beginning October
1, 2021, the operator shall gather data for quarterly reports in a format
specified by the division and submit by February 15, 2022 for the fourth
quarter of 2021 and May 15, 2022 for the first quarter of 2022. Beginning April 2022, the operator shall
submit a form C-115B monthly on or before the 15th
day of the second month following the month in which it vented or flared
natural gas. The operator shall
specify whether it estimated or measured each reported volume. In
filing the initial report, the operator shall provide the methodology (measured
or estimated using calculations and industry standard factors) used to report
the volumes on the form, and shall report changes in the methodology on future
forms. The operator shall make and keep records of
the measurements and estimates, including records showing how it calculated the
estimates, for no less than five years and make such records available for
inspection by the division upon request.
The categories are:
(a) emergency;
(b) non-scheduled maintenance or malfunction,
including the abnormal operation of equipment;
(c) routine repair and maintenance,
including blowdown and depressurization;
(d) beneficial use, including pilot and
purge gas, fired equipment and engines;
(e) gathering pipeline blowdown and
purging;
(f) gathering pipeline pigging;
(g) storage tanks;
(h) venting as a result of normal
operation of pneumatic controllers and pumps;
(i) improperly closed or maintained thief
hatches; and
(j) other surface waste as defined in Subparagraph
(b) of Paragraph (1) of Subsection W of 19.15.2.7 NMAC that is not described
above.
(3) Upon submittal of the C-115B report,
the division will compile and publish on the division’s website an operator’s
vented and flared natural gas information for each month on a volumetric and
gas capture percentage basis.
(a) To calculate the lost natural gas on
a volumetric basis, the operator shall [deduct] sum the volume of
natural gas [used for beneficial use and vented or flared during an
emergency, or vented as a result of normal operation of pneumatic controllers
and pumps from the volume of natural gas gathered reported on its form C-115B]
reported under Subparagraphs (b), (c), (e), (f), (g), (i) and (j) of
Paragraph (2) of Subsection F of 19.15.28.8 NMAC.
(b) To calculate the natural gas captured
on a percentage basis, the operator shall deduct the volume of lost gas
calculated in Subparagraph (a) of Paragraph (3) of Subsection F of 19.15.28.8
NMAC from the total volume of natural gas gathered and divide by the total
volume of natural gas gathered.
(4) Upon the New Mexico environment
department’s request, the operator shall promptly provide a copy of any form
filed pursuant to 19.15.28 NMAC.
[19.15.28.8
NMAC – N, 05/25/2021; A, 02/22/2022]
19.15.28.10 STATEWIDE NATURAL GAS CAPTURE
REQUIREMENTS:
A. Statewide natural gas capture requirements. Commencing April 1, 2022, the operator of a
natural gas gathering system shall reduce the annual volume of vented and
flared natural gas in order to capture no less than ninety-eight percent of the
natural gas gathered in each of two reporting areas, one north and one south of
the Township 10 North line, by December 31, 2026. The division shall calculate
and publish on the division’s website each operator’s baseline natural gas
capture rate based on the operator’s fourth quarter 2021 and first quarter 2022
quarterly reports as per Paragraph (2) of Subsection G of 19.15.28.8 NMAC. In each calendar year between January 1, 2022
and December 31, 2026, the operator shall increase its annual percentage of
natural gas captured in each reporting area in which it operates based on the
following formula: (baseline loss rate minus two percent) divided by five, except
that for 2022 only, an operator’s percentage of natural gas captured shall not
be less than seventy-five percent of the annual gas capture percentage increase
(2022 baseline loss rate minus two percent divided by five times 0.75), and the
balance shall be captured in 2023.
(1) The following table provides examples
of the formula based on a range of baseline natural gas capture rates.
|
Baseline
Natural Gas Capture
Rate |
Minimum
Required Annual Natural Gas Capture Percentage Increase |
|
90-98% |
0-1.6% |
|
80-89% |
>1.6-3.6% |
|
70-79% |
>3.6-5.6% |
|
0-69% |
>5.6-19.6% |
(3) An operator’s acquisition or sale of
a natural gas gathering system from another operator shall not affect its
annual natural gas capture requirements.
No later 60 days following the acquisition or sale, the operator may file a written request to the division
requesting to modify its annual gas capture percentage requirements for good
cause based on its acquisition or sale.
The division may approve, approve with conditions, or deny the request
in its sole discretion.
(4) Operators that are affiliated shall
consolidate their natural gas capture reporting and compliance obligations.
B. Accounting. No
later than February 28 of each year beginning in 2023, the operator shall
submit a report certifying compliance with its statewide gas capture
requirements. The operator shall
determine compliance with its statewide gas capture requirements by deducting
any ALARM credits approved pursuant to this subsection from the aggregated
volume of lost gas calculated for each month during the preceding year pursuant
to Subparagraph (a) of Paragraph (3) of Subsection F of [19.15.27.8] 19.15.28.8
NMAC, deducting that aggregated volume of lost gas from the aggregated volume
of natural gas [produced] gathered for each month during the
preceding year, and dividing that volume by the aggregated volume of natural
gas [produced] gathered for each month during the preceding year.
(1) An operator that used a division‑approved
ALARM technology to monitor for leaks and releases may obtain a credit against
the volume of lost natural gas if it discovered the leak or release using the
ALARM technology, and the operator:
(a) isolated the leak or release within
48 hours following field verification;
(b) repaired the leak or release within
15 days following field verification or another date approved by the division;
(c) timely notified the division by
filing a form C‑129 or form C‑141; and
(d) used ALARM monitoring technology
as a routine and on‑going aspect of its waste-reduction practices.
(i) For
discrete waste-reduction practices such as aerial methane monitoring, the
operator must use the technology at least twice per year; and
(ii) for
waste‑reduction practices such as automated emissions monitoring systems
that operate routinely or continuously, the division will determine the
required frequency of use.
(e) The
division shall publish a list of division-approve ALARM technologies on the
division’s website.
(2) An operator may file an application
with the division for a credit against its volume of lost natural gas that identifies:
(a) the ALARM technology used to discover the leak or release;
(b) the dates on which the leak or
release was discovered, field-verified, isolated, and repaired;
(c) the method used to measure or
estimate the volume of natural gas leaked or released;
(d) a description and the date of each action
taken to isolate and repair the leak or release;
(e) visual documentation or other
verification of discovery, isolation, and repair of the leak or release;
(f) a certification that the operator
did not know or have reason to know of the leak or release before discovery
using ALARM technology; and
(g) a description of how the operator used
ALARM technology as a routine and on‑going aspect of its waste‑reduction
practices.
(3) For each leak or release reported by
an operator that meets the requirements of Paragraphs (3) and (4) of Subsection
B of 29.15.28.10 NMAC, the division, in its sole discretion, may approve a
credit that the operator can apply against its reported volume of lost natural
gas as follows:
(a) a credit of forty percent of the
volume of natural gas discovered and isolated within 48 hours of discovery and
timely repaired; and
(b) an additional credit of twenty
percent if the operator used ALARM technology no less than once per calendar
quarter as a routine and on‑going aspect of its waste‑reduction
practices.
(4) A division‑approved ALARM
credit shall:
(b) not be transferred to or used by another
operator, including a parent, subsidiary, related entity or person acquiring
the natural gas gathering system;
(c) be used only once; and
(d) expire 24 months after division approval.
(5) The division will publish a list of
approved ALARM technology.
C. Third‑party verification. The
division may request that an operator verify any data or information collected
or reported pursuant to this part, make recommendations to correct or improve
the collection and reporting of data and information, submit a report of the
verification and recommendations to the division by the specified date, and
implement the recommendations in the manner approved by the division. If the
division and the operator cannot reach agreement on the division’s request, the
operator may file an application for hearing before the division. The operator,
at its own expense, shall retain a third party approved by the division to
conduct the activities agreed to by the division and the operator or ordered by
the division following a hearing.
[19.15.28.10
NMAC – N, 05/25/2021; A, 02/22/2022]