The Bureau of Land Management (BLM) has proposed a rule to update decades-old oil and gas regulations that limit the practice of commingling. The review is aimed at improving efficiency and protecting taxpayers and tribes while strengthening domestic energy production.
The proposed rule would modernize guidelines that currently allow commingling only when mineral ownership and royalty conditions are identical. The limits were implemented decades ago and no longer reflect current technology or complex mineral ownership across the Western U.S.
Commingling allows production from multiple leases to be combined using a single well pad. Under the proposed rule, the BLM would allow a wider range of methods. These include modern metering technologies to ensure accurate measurement of production and fair royalty distribution. For more information visit the Bureau of Land Management.
Courtesy of the BLM.