IADC CONNECTION • WIRELINES
IADC concerned over Bureau of Land Management’s missed Q1 lease sale deadline
In an 18 February news release, IADC
expressed its disappointment with the US
Department of Interior (DOI) missing its 15
February deadline to schedule an onshore
federal oil and gas lease sale for Q1 2022.
Under the Mineral Leasing Act, the
Bureau of Land Management (BLM) is
required to hold federal onshore lease sales
once per quarter and must provide at least
a 45-day notice. Despite these well-defined
requirements – as well as recent rulings in
US federal court that further affirm these
requirements – the Q1 deadline passed
without a sale being scheduled.
IADC remains deeply concerned that
the DOI lacks a fundamental respect of the
RRC launches database for flaring, venting applications
The Texas Railroad Commission (RRC)
launched a new online database of flar-
ing and venting applications. The Flare/
Vent Exceptions Query is part of a years-
long effort to improve public access to
the RRC’s information.
Updated nightly, the query makes
available all applications for exception
to Statewide Rule 32 (SWR 32) that have
been filed electronically with the agency
since 2 May 2021.
SWR 32 specifies exempt and autho-
rized flaring in which an operator can
flare, including for safety reasons,
without going through the application
process to obtain an exception to the
rule. Any other flaring request would go
through the application for exception to
the rule and be reviewed.
The RRC published a new form, Form
R-32, for operators to apply for an excep-
tion to SWR 32. It provides specific
guidance on when an exception to flare
would be permissible, under which cir-
cumstances and for how long.
The online version of the form
launched in May 2021.
The RRC noted that less that 0.2% of
natural gas produced in November was
flared, which was a record low. Further,
the amount of gas flared has been on a
steady decline every month since June
2019. Scan me to access the
Texas RRC Flare/Vent
Exceptions Query.
bit.ly/35FUVbv API appeals ruling invalidating 2021 federal lease sale
In early February, the American
Petroleum Institute (API) filed a notice of
appeal with the US Court of Appeals for
the DC Circuit of the decision by the DC
District Court that invalidated the results
of the only federal lease sale for natural
gas and oil held in 2021.
The sale generated more than $198
million in total bids, and the revenues
received are directed to the US Treasury,
state and local governments, the Land
and Water Conservation Fund and the
Historic Preservation Fund.
“At a time of rising energy costs and
heightened geopolitical tensions, the
misguided decision to cancel the only
lease sale held last year is contributing
to significant uncertainty for US natu-
ral gas and oil producers and limiting
access to the affordable, reliable energy
that’s needed here in the US and around
44 the world,” said Frank Macchiarola,
API Senior Vice President for Policy,
Economics and Regulatory Affairs.
The notice also said the court’s ruling
overlooked the comprehensive environ-
mental analysis that the Bureau of Ocean
and Energy Management had conducted
as part of the National Environmental
Policy Act process prior to the lease sale.
API also cited a report issued in
November 2016 by the US Bureau of
Ocean Energy Management analyzing
the effects of offshore leasing restric-
tions, which found that US greenhouse
gas emissions would be little affect-
ed and could increase if more foreign
imports are needed in the absence of
new US offshore leasing and production.
The report noted that increased produc-
tion and transport of foreign oil would
lead to higher greenhouse gas emissions.
requirement to conduct federal lease sales
in a timely manner.
As the world faces growing energy
demands and a rapid increase in fuel pric-
es, the administration seems oblivious to
the fact that holding regular federal lease
sales is a tool the government can leverage
to directly address those challenges.
API comments on proposed
EPA methane regulations
On 31 January, the API submitted com-
ments on the US Environmental Protection
Agency’s (EPA) proposed methane regula-
tions. The comments emphasized support
for the direct regulation of methane for
new and existing sources and highlighted
the industry’s progress in reducing meth-
ane emissions intensity from operations.
The EPA has yet to publish the rule
text for the proposed regulations, but the
API based its comments on the preamble
text and focused on the effectiveness of
emission-reduction strategies, safety, fea-
sibility, operability and cost. Where appro-
priate, alternative approaches were recom-
mended. The API also called on the EPA to
publish the full text before setting the new
source applicability date.
DOE issues cyber notice
amid Russia’s war in Ukraine
On 23 February 2022, the US Department
of Energy (DOE) issued a letter addressing
increasing concerns for heightened cyber-
security risks associated with the conflict
in Eastern Europe. The DOE encourages
organizations across the energy sector
to evaluate their cybersecurity measures
and implement a “shields up posture.”
Organizations should:
• Review the Cybersecurity and
Infrastructure Security Agency’s “Shields
Up” Guidance;
• Verify or otherwise engage with one of
the three energy Information Sharing and
Analysis Centers (ISAC);
• Ensure awareness, roles and responsi-
bilities, and cross-functional processes for
securing enterprise operations; and
• Immediately report attempted or con-
firmed cyber intrusions to ISAC points of
contact and US government emergency
response centers.
M A R C H/A P R I L 202 2 • D R I L L I N G C O N T R AC T O R
UPCOMING IADC EVENTS • IADC CONNECTION
Drilling Africa
IADC IADC
Drilling Onshore
2022 CONFERENCE & EXHIBITION
CONFERENCE & EXHIBITION
19 MAY 2022
HYATT REGENCY HOUSTON WEST
HOUSTON, TEXAS
31 MAY - 1 JUNE 2022
MÖVENPICK AMBASSADOR HOTEL
ACCRA, GHANA
IADC 9-10 JUNE 2022
RITZ CARLTON
NEW ORLEANS,
LOUISIANA International
Tax SEMINAR
SEMINAR World
Drilling IADC
2022 CONFERENCE & EXHIBITION
21-22 JUNE 2022
PULLMAN TOUR EIFFEL HOTEL
PARIS FRANCE
IADC Advanced
Rig Technology
CONFERENCE & EXHIBITION
Europe IADC
HSE AND SUSTAINABILITY
CO N FER EN CE
& E XH I B ITI O N
30-31 AUGUST 2022
HYATT REGENCY AUSTIN HOTEL
AUSTIN, TEXAS
14-15 SEPTEMBER 2022
APOLLO HOTEL
AMSTERDAM, THE NETHERLANDS
To register for these and other conferences please visit us online at www.iadc.org/conferences/upcoming.
D R I L L I N G C O N T R AC T O R • M A R C H/A P R I L 202 2
45