36.22.1220    ASSOCIATED GAS FLARING LIMITATION – APPLICATION TO EXCEED – BOARD REVIEW AND ACTION

(1) If the average daily gas production exceeds 100 MCFG and the operator intends to flare or otherwise waste the associated gas, the well may not produce more than an average of 100 MCFG per day each calendar month after the 60 day test required by ARM 36.22.1215 until such time as further relief may be granted by the board pursuant to subsections (2) and (3) .

(2) If the operator wishes to flare more than an average of the 100 MCFG per day each calendar month, the operator must submit with the production test results a statement justifying the need to flare or otherwise waste more than that amount. The statement should include such information as a gas analysis, estimated gas reserves, proximity of the well to a market, estimated gas price at the nearest market, estimated cost of marketing the gas, reinjection potential or other conservation-oriented disposition alternatives, amount of gas used in lease operations, and any other information pertinent to a determination of whether marketing or not marketing or otherwise conserving the associated gas is economically feasible.

(3) The petroleum engineer will review the justification statement with the board at its next regularly scheduled meeting. The board may elect to:

(a) docket a hearing for the operator to show further cause why it should be allowed to flare or otherwise waste more than an average of 100 MCFG per day each calendar month;

(b) restrict production until the gas is marketed or otherwise beneficially utilized; in which case the operator may docket a hearing on his own behalf to seek further relief; or

(c) take any other action the board deems appropriate in the circumstances.

History: 82-11-111, MCA; IMP, 82-11-123, 82-11-124, MCA; NEW, 1978 MAR p. 1425, Eff. 10/13/78; AMD, 1982 MAR p. 1398, Eff. 7/16/82.