Department of Interior Proposes New Natural Gas Regulations For Public Lands

The Department of the Interior's Bureau of Land Management (BLM) recently released a proposed rule that would have a large impact on natural gas operations on federal lands and Native American reservations.  Among other requirements, the proposed rule would prohibit the venting of natural gas, impose semi-annual leak inspections, limit the rate of routine flaring from development wells, and require flared natural gas to be subject to royalties if its loss was "avoidable."  After two years, the BLM would begin limiting routine flaring up to 1,800 cubic feet per month per well, averaged across all producing wells on a given lease.  Additionally, the BLM is requesting comment on the concept of a "fluctuating royalty rate" based on flaring rates for new competitive leases.

The proposed rule can be found here, and the 60-day public comment period will start when the proposed rule is published in the Federal Register.  The BLM will hold public meetings on the proposed rule in February and March.