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Climate Change Hero

Climate Change Blog

  • 26
  • January
  • 2016

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BLM Wants Royalties for Natural Gas Lost to Venting, Flaring, and Leaks on Federal Land

On January 22, 2016, the Bureau of Land Management (BLM) released a proposed rule aimed at reducing natural gas lost through natural gas venting, flaring, and equipment leaks from both new and existing production activities on federal lands. Except where gas loss is “unavoidable,” as defined by the proposed rule, operators would be charged royalties on natural gas losses from onshore federal and Indian mineral leases administered by BLM. BLM is also revising its royalty regulations to allow the agency to raise royalty rates above the current 12.5 percent levels on competitive leases if it wishes to do so in the future.

BLM will accept public comment on this proposal for 60 days after its publication in the Federal Register. This proposed rule is part of a suite of Obama Administration rules affecting the oil and gas sector that are slated to be finalized before the Administration’s second term ends.

Read entire article here.

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