TITLE
19 NATURAL
RESOURCES AND WILDLIFE
CHAPTER
15 OIL
AND GAS
PART
28 NATURAL GAS
GATHERING SYSTEMS
19.15.28.1 ISSUING AGENCY: Oil Conservation Commission.
[19.15.28.1
NMAC – N, 05/25/2021]
19.15.28.2 SCOPE: 19.15.28 NMAC applies to persons engaged in natural
gas gathering and processing within New Mexico.
[19.15.28.2
NMAC – N, 05/25/2021]
19.15.28.3 STATUTORY AUTHORITY: 19.15.28 NMAC is adopted pursuant to the Oil
and Gas Act, Section 70-2-6, Section 70-2-11 and Section 70-2-12 NMSA 1978.
[19.15.27.3
NMAC – N, 05/25/2021]
19.15.28.4 DURATION: Permanent.
[19.15.27.4
NMAC – N, 05/25/2021]
19.15.28.5 EFFECTIVE DATE: May 25, 2021, unless
a later date is cited at the end of a section.
[19.15.28.5
NMAC – N, 05/25/2021]
19.15.28.6 OBJECTIVE: To regulate the venting and flaring of natural
gas from natural gas gathering systems to prevent waste and protect public
health and the environment.
[19.15.28.6
NMAC – N, 05/25/2021]
19.15.28.7 DEFINITIONS: Terms shall have the meaning specified in
19.15.2 NMAC except as specified below.
B. “AVO” means audio, visual and olfactory.
C. “Custody transfer point” means
the transfer of natural gas from upstream separation, processing, treatment, or
in‑field gathering to a pipeline or any other form of transportation
occurring at sales metering equipment.
D. “Emergency” means a
temporary, infrequent, and unavoidable event in which the loss of natural gas
is uncontrollable or necessary to avoid a risk of an immediate and substantial
adverse impact on safety, public health or the environment, but does not
include an event arising from or related to:
(1) the operator’s failure to install
appropriate equipment of sufficient capacity to accommodate the anticipated or
actual rate and pressure of the natural gas gathering system;
(2) the operator’s failure to limit the gathering
of natural gas when the volume of natural gas exceeds the capacity of the
natural gas gathering system;
(3) scheduled maintenance;
(4) unscheduled maintenance or a malfunction
that results in venting or flaring of natural gas by an upstream operator for
which the operator fails to comply with Paragraph (2) of Subsection D of
19.15.28.8 NMAC;
(5) the operator’s negligence;
(6) recurring equipment failure; 4 or more times within a
single reporting area within the preceding 30 days pursuant to Subsection A of
19.15.28.10 NMAC; or
(7) Four or more emergencies within a
single reporting area pursuant to Subsection A of 19.15.28.10 NMAC experienced
by the operator within the preceding 30 days, unless the division determines the
operator could not have reasonably anticipated the current event and it was
beyond the operator’s control.
E. “Flare” or “Flaring” means
the controlled combustion of natural gas in a device designed for that purpose.
F. “Flare stack” means a device equipped
with a burner used to flare natural gas.
G. “Gathering pipeline” means a pipeline
that gathers natural gas within a natural gas gathering system.
H. “GIS” means geographic
information system.
I. “GPS” means global
positioning system.
J. “Malfunction” means a
sudden, unavoidable failure or breakdown of equipment beyond the reasonable
control of the operator that substantially disrupts operations, but does not
include a failure or breakdown that is caused entirely or in part by poor
maintenance, careless operation, or other preventable equipment failure or
breakdown.
K. “Natural gas” means a gaseous
mixture of hydrocarbon compounds, primarily composed of methane, and includes
both casinghead gas and gas as those terms are defined in 19.15.2 NMAC.
L. “Natural gas gathering system” means the gathering
pipelines and associated facilities that compress, dehydrate or treat natural
gas after the custody transfer point and ending at the connection point with a natural
gas processing plant or transmission or distribution system.
M. “New gathering pipeline” means a gathering pipeline
placed into service after May 25, 2021.
N. “Vent” or “Venting” means the release of uncombusted
natural gas to the atmosphere.
[19.15.28.7
NMAC – N, 05/25/2021]
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 sum the volume of natural gas 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]
19.15.28.9 LOCATION REQUIREMENTS:
A. The operator shall file with the division a GIS digitally
formatted as-built map:
(1) for a new gathering pipeline or
natural gas gathering system, no later than 90 days after placing the gathering
pipeline or system into service;
(2) for an existing gathering pipeline or
natural gas gathering system no later than 90 days after May 25, 2021; and
(3) for an addition to an existing
gathering pipeline or natural gas gathering system, no later than 90 days after
placing the addition into service.
B. To ensure proper field identification of a gathering
pipeline in an emergency, the as-built map shall include a layer which
identifies the pipeline size and construction material type.
C. No later than July 1st of each year, the
operator shall file with the division an updated GIS digitally formatted
as-built map of its gathering pipeline or natural gas gathering system, which shall
include a GIS layer that identifies the date, location and volume of vented or
flared natural gas of each emergency, malfunction and release reported to the
division since 19.15.28 NMAC became applicable to the pipeline or system.
D. The operator may assert confidentiality for the GIS
digitally formatted as-built map and GIS layer pursuant to Section 71-2-8 NMSA
1978.
[19.15.28.9
NMAC – N, 05/25/2021]
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 19.15.28.8 NMAC,
deducting that aggregated volume of lost gas from the aggregated volume of
natural gas gathered for each month during the preceding year, and dividing
that volume by the aggregated volume of natural gas 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]
History of 19.15.28 NMAC: [RESERVED]