University Lands FY21 Annual Report

Fiscal Year 2021 Annual Report 33

Environmental Stewardship

AIR

242 2.3% OGI flare inspections conducted Gas flared/MCF produced

Flaring

University Lands supports the goal of minimizing overall flaring on the Lands and industry-wide. Through regular communications with operators and regulatory bodies, UL encourages best practices to safely reduce routine flaring. These include bringing wells online only when adequate takeaway capacity is connected and shutting in production during prolonged upsets. UL monitors a real-time (based on production reporting deadlines) graphical interface of flared volumes by lease and operator. UL contacts operators reporting atypical flared volumes to discuss contributing factors and corrective actions. Operators owe royalty payments to UL for all gas produced on PUF Lands, even if flared or combusted for lease fuel, and as a result, the frequency of flaring on UL has been lower than for the total Permian Basin for six consecutive years. In 2021 University Lands established an OGI flare inspection program to inspect the performance of flares, thermal oxidizers and combustors. The operator is notified when unlit or otherwise malfunctioning flares are observed, and corrective action is documented. University Lands performed 242 flare inspections in the first year of this program.

OGi camera inspection

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