The Department of the Interior has announced proposed updates to Bureau of Land Management (BLM) regulations regarding oil and gas production. The changes aim to simplify the process for operators to combine production from multiple leases, a practice known as commingling. This initiative aligns with directives from the One Big Beautiful Bill, urging the Secretary of the Interior to approve onshore commingling applications.
Currently, BLM regulations only allow commingling when leases have identical mineral ownership, royalty rates, and revenue distribution. These restrictions present challenges in areas with complex mineral ownership. The proposed changes would permit commingling even when these conditions vary, potentially unlocking significant energy resources.
“This is about common sense and catching up with today’s technology,” stated Secretary of the Interior Doug Burgum. “The current rules were written for a different era. These updates will help us manage public resources more efficiently, support responsible energy production, and make sure taxpayers and tribes get every dollar they’re owed.”
Advancements in metering and measurement technologies now enable operators to accurately track production and allocate royalties at individual wellheads. These technologies comply with BLM's precision standards, ensuring all mineral owners receive their fair share. Incorporating these advances into regulations aims to align with modern industry practices while maintaining transparency and accountability.
If finalized, the updated rules could save the industry up to $1.8 billion annually. These savings could be reinvested into new energy production projects, supporting domestic energy development and reducing infrastructure redundancy. The rule change would also offer greater flexibility in combining and measuring production, enhancing efficiency and minimizing surface disturbance.
This proposal aligns with recent directives from the Trump administration aimed at reducing regulatory burdens, promoting energy development, and updating outdated policies. The BLM plans to expedite updating relevant regulations under 43 CFR Subpart 3173 through a formal rulemaking process that includes opportunities for public comment.
