CHAPTER 15 3180 REGULATIONS

• Jurisdiction: United States

Federal Onshore Oil & Gas Pooling & Unitization - part 2
(Oct 2014)
CHAPTER 15
3180 REGULATIONS

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upon a request by an adversely affected party or on the State Director's or Administrative Law Judge's own initiative. If a State Director or Administrative Law Judge denies such a request. the requester can petition for a stay of the denial decision by filing a petition with the intertor Board of Land Appeals that addresses the standards described above in this paragraph.

(d) Effect of appeal on compliance requirements. Except as provided in paragraph (d) of this section, any appeal filed pursuant to paragraphs (a) and (b) of this section shall not result in a suspension of the requirement for compliance with the order or decision from which the appeal is taken unless the Interior Board of Land Appeals determines that suspension of the requirements of the order or decision will not be detrimental to the interests of the lessor or upon submission and acceptance of a bond deemed adequate to indemnify the lessor from loss or damage.

(e) Effect of appeal on assessments and penalties. (1) Except as provided in paragraph (d)(3) of this section, an appeal filed pursuant to paragraph (a) of this section shall suspend the accumulation of additional dally assessments. However, the pendency of an appeal shall not bar the authorized officer from assessing civil penalties under § 3163.2 of this title in the event the operator has failed to abate the violation which resulted in the assessment. The Board of Land Appeals may issue appropriate orders to coordinate the pending appeal and the pending civil penalty proceeding.

(2) Except as provided in paragraph (d)(3) of this section, an appeal filed pursuant to paragraph (b) of this section shall suspend the accumulation of additional daily civil penalties.

(3) When an appeal is filed under paragraph (a) or (b) of this section, the State Director may, within 10 days of receipt of the notice of appeal, recommend that the Director reinstate the accumulation of assessments and dally civil penalties until such time as a final decision is rendered or until the violation is abated. The Director may, if he/she determines that the public Interest requires it, reinstate such accumulation(s) upon a finding that the violation is causing or threatening immediate substantial and adverse impacts on public health and safety, the environment, production accountability. or royalty income. If the Director does not act on the recommendation to reinstate the accumulation(s) within 45 days of the filing of the notice of appeal, the suspension shall continue.

(4) When an appeal is filed under paragraph (a) of this section from a decision to require drainage protection. BLM's drainage determination will remain in effect during the appeal, notwithstanding the provisions of 43 CFR 4.21. Compensatory royalty and interest determined under 30 CFR Part 218 will continue to accrue throughout the appeal.

(f) Judicial review. Any person who is aggrieved by a final order of the Secretary under this section may seek review of such order in the United States District Court for the judicial district in which the alleged violation occurred. Because section 109 of the Federal Oil and Gas Royalty Management Act provides for judicial review of civil penalty determinations only where a person has requested a hearing on the record, a waiver of such hearing precludes further review by the district court. Review by the district court shall be on the administrative record only and not de novo. Such an action shall be barred unless filed within 90 days after issuance of final decision as provided in § 4.21 of this title.

[52 FR 5395. Feb. 20, 1987; 52 FR 10225, Mar. 31, 1967, as amended at 53 FR 17365, May 16, 1988; 57 FR 9013, Mar. 13, 1992; 66 FR 1894, Jan. 10, 2001]

PART 3180--ONSHORE OIL AND GAS UNIT AGREEMENTS: UNPROVEN AREAS

Note: Many existing unit agreements currently in effect specifically refer to the United States Geological Survey. USOS. Minerals Management Service. MMS. Supervisor. Conservation Manager, Deputy Conservation Manager, Minerals Manager and Deputy Minerals Manager in the body of the agreements, as well as references to 30 CFR part 221 or specific sections thereof. Those references shall now be read in the context of Secretarial Order 3087 and now mean either

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the Bureau of Land Management or Minerals Management Service, as appropriate.

Subpart 3180--Onshare Oil and Gas Unit Agreements: General

Sec.

3180.0-1 Purpose.

3180.0-2 Policy.

3180.0-3 Authority.

3180.0-5 Definitions.

Subpart 3181--Application for Unit Agreement

3181.1 Preliminary consideration of unit agreement.

3181.2 Designation of unit area; depth of test well.

3181.3 Parties to unit agreement.

3181.4 Inclusion of non-Federal lands.

3181.5 Compensatory royalty payment for unleased Federal land.

Subpart 3182--Qualifications of Unit Operator

3182.1 Qualifications of unit operator.

Subpart 3183--Filing and Approval of Documents

3183.1 Where to file papers.

3183.2 Designation of area.

3183.3 Executed agreements.

3183.4 Approval of executed agreement.

3183.5 Participating area.

3183.6 Plan of development.

3183.7 Return of approved documents.

Subpart 3184 [Reserved]

Subpart 3185--Appeals

3185.1 Appeals.

Subpart 3186--Model Forms

3186.1 Model onshore unit agreement for unproven areas.

3186.1-1 Model Exhibit "A."

3186.1-2 Model Exhibit "B."

3186.2 Model collective bond.

3186.3 Model for designation of successor unit operator by working interest owners.

3186.4 Model for change in unit operator by assignment.

Authority: 30 U.S.C. 189.

Source: 46 FR 26766, June 10, 1983, unless otherwise noted. Redesignated at 46 FR 36587, Aug. 12, 1983.

Subpart 3180--Onshore Oil and Gas Unit Agreements: General

§ 3180.0-1 Purpose.

The regulations in this part prescribe the procedures to be followed and the requirements to be met by the owners of any right, title or interest in Federal oil and gas leases (see §3160.0-5 of this title) and their representatives who wish to unite with each other, or jointly or separately with others, in collectively adopting and operating under a unit plan for the development of any oil or gas pool, field or like area. or any part thereof. All unit agreements on Federal leases are subject to the regulations contained in part 3160 of this title. Onshore Oil and Gas Operations. All unit operations on non-Federal lands included within Federal unit plans are subject to the reporting requirements of part 3160 of this title.

[48 FR 36587. Aug. 12, 1983]

§ 3180.0-2 Policy.

Subject to the supervisory authority of the Secretary of the Interior, the administration of the regulations in this part shall be under the jurisdiction of the authorized officer. In the exercise of his/her discretion, the authorized officer shall be subject to the direction and supervisory authority of the Director, Bureau of Land Management, who may exercise the jurisdiction of the authorized officer.

[48 FR 36587, Aug. 12, 1983]

§ 3180.0-3 Authority.

The Mineral Leasing Act, as amended and supplemented (30 U.S.C. 181, 189, 226(e) and 226(j)), and Order Number 3087, dated December 3, 1982, as amended on February 7, 1983 (48 FR 8983). under which the Secretary consolidated and transferred the onshore minerals management functions of the Department, except mineral revenue functions and the responsibility for leasing of restricted Indian lands, to the Bureau of Land Management.

[48 FR 36587, Aug. 12, 1983]

§ 3180.0-5 Definitions.

The following terms, as used in this part or in any unit agreement approved

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under the regulations in this part, shall have the meanings here indicated unless otherwise defined in such unit agreement:

Federal lease. A lease issued under the Act of February 25, 1920, as amended (30 U.S.C. 181 et seq.); the Act of May 21, 1930 (30 U.S.C. 351-359 ); the Act of August 7, 1947 (30 U.S.C. 351. et seq.); or the Act of November 16, 1981 (Pub. L. 97-98. 95 Stat. 1070).

Participating area. That part of a unit area which is considered reasonably proven to be productive of unitized substances in paying quantities or which is necessary for unit operations and to which production is allocated in the manner prescribed in the unit agreement.

Unit area. The area described in an agreement as constituting the land logically subject to exploration and/or development under such agreement.

Unitized land. Those lands and formations within a unit area which are committed to an approved agreement or plan.

Unitized substances. Deposits of oil and gas contained in the unitized land which are recoverable in paying quantities by operation under and pursuant to an agreement.

Working interest. An interest held in unitized substances or in lands containing the same by virtue of a lease, operating agreement, fee title, or otherwise, under which, except as otherwise provided in the agreement, the owner of such interest in vested with the right to explore for, develop, and produce such substances. The rights delegated to the unit operator by the unit agreement are not regarded as a working interest.

[48 FR 26766, June 10, 1983. Redesignated and amended at 48 FR 36587, Aug. 12, 1983; 51 FR 34603, Sept. 30, 1988]

Subpart 3181--Application for Unit Agreement

§ 3181.1 Preliminary consideration of unit agreement.

The model unit agreement set forth in §3186.1 of this title, is acceptable for use in unproven areas. Unique situations requiring special provisions should be clearly identified, since these and other special conditions may necessitate a modification of the model unit agreement set forth in §3186.1 of this title. Any proposed special provisions or other modifications of the model agreement should be submitted for preliminary consideration so that any necessary revision may be prescribed prior to execution by the...