BLM FLARIN NG Due to pressure being deleted from m the Mancos/Gallup form mation, Nitrogen (N2) is injeected into thee  formation n as hydraulicc fracturing occcurs. The use e of N2 reduc es the water volume used d to fracture tthe  formation ns by as much h as 70%. The N2 content in n the natural  gas that is prroduced when the well is  completed can be upw wards of 60%. This high N2 content is noot acceptebe by third‐partyy pipeline  companie es. This requirres the gas to o be flared until the N2 conntent is 10% o or less.         BLM GUIDANC CE Operators s are required d to follow No otice to Lesse ees and Operrators of Onshore Federal and Indian O Oil and Gas Leases L (NTL-4A), which re eads as follow ws, III. AUTHORIZED VENTING AND FLARING OF O GAS ees or operato ors are hereb by authorized d to vent or fl are gas on a short-term b basis withoutt Lesse incurrring a royalty y obligation in n the followin ng circumstan nces: A. Emergencie es. During tem mporary eme ergency situa tions, such a as compressor or other eq quipment faillures, relief of o abnormal system s pressu ures, or othe er conditions w which result in th he unavoidab ble short-term m venting or flaring f of gass. However, this authoriza ation to vent or fla are gas in such circumstances withoutt incurring a rroyalty obliga ation is limite ed to 24 hourrs per Mancos Gallup G RMPA//EIS Marchh 2014   incident and to 144 hours cumulative for the lease during any calendar month, except with the prior authorization, approval, ratification, or acceptance of the Supervisor. B. Well Purging and Evaluation Tests. During the unloading or cleaning up of a well during drillstem, producing, routine purging, or evaluation tests, not exceeding a period of 24 hours. C. Initial Production Tests. During initial well evaluation tests, not exceeding a period of 30 days or the production of 50 MMcf [million cubic feet] of gas, whichever occurs first, unless a longer test period has been authorized by the appropriate State regulatory agency and ratified or accepted by the Supervisor. D. Routine or Special Well Tests. During routine or special well tests, other than those cited in III.B and C above, only after approval by the Supervisor. If the operator is flaring under circumstance C, the operator will submit a Notice of Intent sundry to extend the flaring of gas at 30-day intervals. The operator must submit a gas analysis verifying the current N2 content. In addition, gas volumes measured in thousand cubic feet (MCF) per day are estimated to verify that the volume to be flared over the 30-day period does not exceed 50 MMcf. Mancos Gallup RMPA/EIS March 2014