News & Alerts
May 7, 2020 BLM OFFICE RELEASES OFFICIAL UPDATED GUIDANCE FOR LEASE SUSPENSION REQUESTSpdf
The BLM has released and posted the official guidance for operators seeking to file an application for lease suspension. The guidance lists the specific steps a lessee or operator must take to submit an application. Additionally, the guidance provides a list of minimum requirements needed to file an application.
To apply for Oil and Gas Suspension under “force majeure” due to COVID-19, a lessee must provide:
- Lease number(s) and applicable Federal unit or communitization agreement;
- Expiration date of lease(s) and/or Held by Production Date (HBP);
- Current lessee(s) and operating rights owners; and
- Supporting evidence of COVID-19 impact (i.e. inability to get personnel or service providers to the lease to conduct operations) and date of impact.
To apply for Oil and Gas Suspension under “conservation of natural resources” due to COVID-19, a lessee must provide:
- Lease number(s) and applicable Federal unit or communitization agreement;
- Expiration date of lease(s) and/or Held by Production Date (HBP);
- Current lessee(s) and operating rights owners; and
- Supporting evidence of COVID-19 impact on conservation of natural resources.
Many of the steps and requirements are the same as what was initially provided on April 21, 2020. However, the BLM has updated the timeline for which the lease suspension will expire. If a lease suspension is granted due to COVID-19, that suspension will expire sixty (60) days from the date the BLM grants the suspension, or earlier if the lessee resumes operations. An extension may be granted if the conditions caused by COVID-19 continue.
The guidance for the Lease Suspension Application can be found on the BLM website or attached here:
https://www.blm.gov/programs/energy-and-minerals/oil-and-gas/covid-lease-suspension-guidance