BLM Seeks Comment on Proposed Rule to Modernize Oil and Gas Regulations

WASHINGTON – The Bureau of Land Management (BLM) today released proposed, updated regulations to ensure accurate measurement, accountability, and royalty payments for oil and gas production from Federal and Indian leases. Aimed at preventing theft and loss of these valuable resources, the proposed rule does not impose an unreasonable financial or regulatory burden on industry or the BLM. Public comment on the rule is being sought for 60 days, through September 11, 2015. “The proposed rule represents an important step in the BLM’s modernization of its oil and gas regulations,” said Assistant Secretary for Land and Minerals Management Janice M. Schneider. “These updates will help ensure that oil and gas produced from leases overseen by the BLM is properly measured, that American taxpayers receive fair value for public resources, and that Indian tribes and allottees, States and local governments receive the full royalties they are due.”
The proposed rule will replace Onshore Oil and Gas Order Number 3 (Order 3), which has not been updated since 1989 and does not reflect modern industry operations or technology. Order 3 sets minimum standards for ensuring that oil and gas produced from leases overseen by the BLM are properly and securely handled. The BLM determined that updates to these standards were necessary based on its experience with oil and gas measurement in the field and the changes in technology and industry operations that have occurred since Order 3 was issued.