CMM Regulatory Compliance & Environmental Issues 5

Question 1

What is the 'no surface occupancy' (NSO) stipulation that may be attached to a federal oil and gas lease?

Accepted Answer

A lease condition prohibiting any surface use or occupancy, requiring directional drilling from outside the stipulated area

Answer

An NSO stipulation prohibits all surface disturbance within the designated area, typically requiring operators to access the subsurface via directional drilling from outside the boundary.

Question 2

Under the Clean Air Act, what is a 'Title V operating permit' and which oil and gas facilities typically require one?

Accepted Answer

A comprehensive operating permit for major sources emitting 100+ tons/year of criteria pollutants or 10+ tons of a single HAP, covering all applicable air requirements

Answer

Title V permits are required for major sources and consolidate all applicable CAA requirements into one enforceable document, applying to large compressor stations and processing facilities that exceed major source thresholds.

Question 3

The 'Royalty Simplification and Fairness Act' (RSFA) of 1996 primarily changed oil and gas royalty compliance by:

Accepted Answer

Establishing a 7-year statute of limitations for royalty underpayment claims and shifting burden of proof in some contexts

Answer

RSFA established a 7-year limitation period for federal royalty claims and modified audit and appeal procedures to streamline royalty compliance for lessees.

Question 4

When an oil and gas operator discovers a historic artifact during ground-disturbing operations on federal land, what is the required immediate action under ARPA and BLM regulations?

Accepted Answer

Stop work immediately in the area of discovery and notify BLM and the appropriate SHPO or THPO

Answer

Under ARPA and BLM regulations, operators must immediately halt work near any discovered cultural resource and notify BLM so qualified personnel can assess and protect the site.

Question 5

Which provision of the Energy Policy Act of 2005 exempted hydraulic fracturing from regulation under the Safe Drinking Water Act's UIC program, commonly called the 'Halliburton Loophole'?

Accepted Answer

Section 322 of the Energy Policy Act of 2005, amending SDWA Section 1421(d)

Answer

Section 322 of the Energy Policy Act of 2005 amended SDWA to exclude hydraulic fracturing (except diesel fuel-based fracking) from UIC Class II well regulation.

(CMM) Certified Mineral Manager Practice Test

(CMM) Certified Mineral Manager Practice Test

CMM Regulatory Compliance & Environmental Issues 5