(a) What are the requirements for site security? You must:

1. (1) Protect Federal production against production loss or theft;
2. (2) Post a sign at each royalty or inventory tank which is used in the royalty determination process. The sign must contain the name of the facility operator, the size of the tank, and the tank number;
3. (3) Not bypass BSEE-approved liquid hydrocarbon royalty meters and tanks; and

4. (4) Report the following to the Regional Supervisor as soon as possible, but no later than the next business day after discovery:

   1. (i) Theft or mishandling of production;
   2. (ii) Tampering or bypassing any component of the royalty measurement facility; and
   3. (iii) Falsifying production measurements.

(b) What are the requirements for using seals? You must:

1. (1) Seal the following components of liquid hydrocarbon royalty meter installations to ensure that tampering cannot occur without destroying the seal:

   1. (i) Meter component connections from the base of the meter up to and including the register;
   2. (ii) Sampling systems including packing device, fittings, sight glass, and container lid;
   3. (iii) Temperature and gravity compensation device components;
   4. (iv) All valves on lines leaving a royalty or inventory storage tank, including load-out line valves, drain-line valves, and connection-line valves between royalty and non-royalty tanks; and
   5. (v) Any additional components required by the Regional Supervisor.
2. (2) Seal all bypass valves of gas royalty and allocation meters.
3. (3) Number and track the seals and keep the records at the field location for at least 2 years; and
4. (4) Make the records of seals available for BSEE inspection.