CMM Regulatory Compliance & Environmental Issues 4

Question 1

What is 'produced water' and what is the primary federal regulatory concern for its disposal onshore?

Accepted Answer

Water co-produced with oil and gas from the reservoir; regulated primarily under SDWA Class II UIC disposal well rules and state programs

Answer

Produced water is naturally occurring formation water that comes up with hydrocarbons; its underground disposal is regulated under SDWA Class II injection well rules.

Question 2

Under OSHA's Process Safety Management (PSM) standard (29 CFR 1910.119), what threshold quantity of flammable liquids in a process triggers PSM requirements?

Accepted Answer

10,000 lbs at or above the normal boiling point

Answer

OSHA's PSM standard applies when a process contains 10,000 lbs or more of a flammable liquid or gas at or above its normal boiling point.

Question 3

Which BLM regulation governs the measurement, reporting, and royalty valuation of oil and gas produced from federal and Indian leases?

Accepted Answer

30 CFR Parts 1202 and 1206 (ONRR Royalty Valuation)

Answer

The Office of Natural Resources Revenue (ONRR) administers 30 CFR Parts 1202 and 1206, which govern royalty reporting and valuation for federal and Indian mineral production.

Question 4

A 'completion report' submitted to BLM after drilling a well on federal land must include:

Accepted Answer

Geologic, engineering, and production test data, including casing details, perforations, and initial production rates

Answer

BLM's Well Completion or Recompletion Report (Form 3160-4) requires comprehensive technical data including geology, casing program, completion interval, and initial production test results.

Question 5

Under CERCLA, what is the legal significance of being designated a 'Potentially Responsible Party' (PRP)?

Accepted Answer

PRPs may be held jointly and severally liable for all cleanup costs at a Superfund site regardless of fault percentage

Answer

CERCLA imposes strict, joint and several liability on PRPs, meaning any one party can be held responsible for 100% of cleanup costs regardless of their proportionate contribution.

(CMM) Certified Mineral Manager Practice Test

(CMM) Certified Mineral Manager Practice Test

CMM Regulatory Compliance & Environmental Issues 4