News & Alerts
April 21, 2020 WASHINGTON, D.C. – BLM OFFICE RELEASES GUIDANCE FOR SUSPENSION OF OPERATIONS REQUESTpdf
On Tuesday, April 21, 2020, the BLM National Office in Washington, D.C. released guidance for oil and gas operators seeking suspension of operations or suspension of production for federal oil and gas leases as a result of the COVID-19 national emergency declared on March 16, 2020. In recognition of the numerous wells being shut-in as a result of State mandated “Stay-at-Home” orders and other public health safety mandates, many operators are at risk for lease termination due to lack of production. As such, oil and gas operators may qualify for suspension of operations only or suspension of production due to force majeure in accordance with Section 17 of the Mineral Leasing Act of 1920 (MLA), 30 U.S.C. § 226(i). If granted, the lease suspension will expire after one year. An operator may also apply for suspension of operations or suspension of production in the interest of conservation under Section 39 of the MLA if that operator has submitted an APD and as a result of unusual or unreasonable processing delays the APD cannot be approved. The BLM has provided the attached guidance for operators to determine whether they qualify for lease suspension under one of two types of leases, and the process for then applying for lease suspension.