20 AAC 25.235. Gas disposition

(a) For each production facility the operator shall compile and report monthly gas disposition and acquisition on the Facility Report of Produced Gas Disposition (Form 10-422). If a facility's production comes from multiple pools, the operator shall allocate production between each producing pool as a percentage of the total volume of gas that the facility handled for the month. The operator shall report gas acquisition or disposition by category, as follows:

(1) gas sold;

(2) gas reinjected;

(3) gas flared or vented;

(4) gas used for lease operations other than flaring or venting;

(5) natural gas liquids (NGLs) produced;

(6) gas purchased;

(7) gas transferred;

(8) other.

(b) Any release, burning, or escape into the air of gas other than incidental de minimis venting as authorized under (d)(4) of this section must be reported as flared or vented on the Facility Report of Produced Gas Disposition (Form 10-422). The operator shall submit a written supplement for any flaring or venting incident exceeding one hour. The supplement must describe why the gas was flared or vented, list the beginning and ending time of the flaring or venting, report the volume of gas flared or vented, and describe actions taken to comply with (c) of this section.

(c) The operator shall take action in accordance with good oil field engineering practices and conservation purposes to minimize the volume of gas released, burned, or permitted to escape into the air.

(d) Gas released, burned, or permitted to escape into the air constitutes waste, except that

(1) flaring or venting gas for a period not exceeding one hour as the result of an emergency or operational upset is authorized for safety;

(2) flaring or venting gas for a period not exceeding one hour as the result of a planned lease operation is authorized for safety;

(3) flaring pilot or purge gas to test or fuel the safety flare system is authorized for safety;

(4) de minimis venting of gas incidental to normal oil field operations is authorized;

(5) within 90 days after receipt of the report required under (b) of this section, the commission will, in its discretion, authorize the flaring or venting of gas for a period exceeding one hour

(A) if the flaring or venting is necessary for facility operations, repairs, upgrades, or testing procedures;

(B) if an emergency that threatens life or property requires the flaring or venting, unless failure to operate in a safe and skillful manner causes the emergency; or

(6) upon application, the commission will, in its discretion, authorize the flaring or venting of gas for purposes of testing a well before regular production.

(e) Notwithstanding an authorization under (d) of this section, the commission will, in its discretion, review flaring or venting of gas and classify as waste any volume of gas flared or vented in violation of (c) of this section.

(f) Notwithstanding conservation orders that the commission issued before 1/1/95, this section applies to flaring or venting of gas that occurs on or after 1/1/95.

History: Eff. 4/13/80, Register 74; am 4/2/86, Register 97; am 1/1/95, Register 132; am 11/7/99, Register 152

Authority: AS 31.05.030

AS 31.05.095

AS 31.05.170

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