News & Alerts

October 5, 2020 BLM 2016 WASTE PREVENTION RULE – EFFECTIVE IN WYOMING OCTOBER 13, 2020

The BLM 2016 Waste Prevention Rule (Rule) will become effective on October 13, 2020 unless it is stayed or vacated by another court before that date. The Rule applies to all onshore Federal and Indian oil and gas leases, units, and communitization areas. The Rule applies to: (1) rules governing the royalty-free use of oil or gas, and (2) rules intended to limit the waste of oil or gas, especially the waste of gas through venting, flaring and leaks. The Waste Prevention Rule mandates that operators must: (a) submit a “waste minimization plan” with any application for permit to drill an oil well; (b) capture a certain percentage of the gas they produce, (c) minimize emissions from pneumatic equipment and storage tanks; and (d) implement leak detection and repair procedures. Exceptions are allowed if compliance would “cause the operator to cease production and abandon significant recoverable oil reserves under the lease.” The full rule is available at the following link: 

https://www.federalregister.gov/documents/2016/11/18/2016-27637/waste-prevention-production-subject-to-royalties-and-resource-conservation