[Federal Register Volume 91, Number 120 (Wednesday, June 24, 2026)]
[Proposed Rules]
[Pages 38084-38122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-12734]
[[Page 38083]]
Vol. 91
Wednesday,
No. 120
June 24, 2026
Part II
Department of the Interior
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Bureau of Land Management
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43 CFR Parts 3000, 3100, 3110 et al.
Oil and Gas Leasing; Proposed Rule
Federal Register / Vol. 91, No. 120 / Wednesday, June 24, 2026 /
Proposed Rules
[[Page 38084]]
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DEPARTMENT OF THE INTERIOR
Bureau of Land Management
43 CFR Parts 3000, 3100, 3110, 3120, 3130, 3140, 3150, 3160, and
3180
[Docket No. BLM-2025-0037; A2407-014-004-065516; #O2509-014-004-125222;
256 LLHQ310000 L13100000.PP0000]
RIN 1004-AF05
Oil and Gas Leasing
AGENCY: Bureau of Land Management, Interior.
ACTION: Proposed rule.
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SUMMARY: The Bureau of Land Management (BLM) is proposing to revise its
oil and gas leasing regulations to reflect new requirements in the One
Big Beautiful Bill Act (OBBB); policy direction in Executive Orders
(E.O.) entitled Unleashing American Energy and Ensuring Lawful
Governance and Implementing the President's ``Department of Government
Efficiency'' Deregulatory Initiative and Modernizing Payments To and
From America's Bank Account; and policy guidance in Secretary's Order
entitled Unleashing American Energy. In addition, the proposed rule
would reflect provisions of the Royalty Resiliency Act, which pertains
to applications for oil and gas agreements for allocation schedules
that outline how royalties would be distributed across different leases
within the agreement. The BLM proposes to return the minimum bond
amounts to those prior to the finalization of the 2024 rule. Finally,
the proposed rule would improve the BLM's leasing process to ensure
stewardship of public lands as required by the Mineral Leasing Act
(MLA) and as directed by the OBBB and the above Executive orders.
DATES: Send your comments on this proposed rule to the BLM on or before
August 24, 2026. The BLM is not obligated to consider any comments
received after this date in making its decision on the final rule.
Information Collection Requirements: This proposed rule includes
revised and rescinded information-collection requirements that must be
approved by the Office of Management and Budget (OMB). If you wish to
comment on the information-collection requirements, please note that
those comments should be sent directly to OMB. OMB may file public
comments on the collection of information contained in this proposed
rule between 30 and 60 days after publication of this document in the
Federal Register. Therefore, a comment to the OMB on the proposed
information-collection revisions is best assured of being given full
consideration if the OMB receives it by July 24, 2026.
ADDRESSES: Submit your comments using one of these methods:
Mail, personal, or messenger delivery: U.S. Department of
the Interior, Director (630), Bureau of Land Management, 1849 C St. NW,
Room 5646, Washington, DC 20240, Attention: 1004-AF05.
Federal eRulemaking Portal: https://www.regulations.gov.
In the Search-box, enter ``BLM-2025-0037'' and click the ``Search''
button. Follow the instructions at this website.
For Comments on Information--Collection Activities
Information-Collection Requirements: Written comments and
suggestions on the information-collection requirements should be
submitted to https://www.reginfo.gov/public/do/PRAMain. Find this
specific information-collection by selecting ``Currently under Review--
Open for Public Comments'' or by using the search function.
If you submit comments on these information-collection burdens, you
should provide the BLM with a copy at one of the addresses shown
earlier in this section so that we can summarize all written comments
and address them in the final rulemaking. Please indicate ``Attention:
Paperwork Reduction Act Comments (RIN 1004-AF05).'' Comments not
pertaining to the proposed rule's information-collection burdens should
not be submitted to OMB. The BLM is not obligated to consider or
include in the Administrative Record for the final rule any comments
that are improperly directed to OMB.
FOR FURTHER INFORMATION CONTACT: John Ajak, Acting Division Chief for
the Division of Fluid Minerals, telephone: (505) 549-9654, or email:
[email protected], for information regarding the substance of this proposed
rule or about the BLM's fluid minerals program. For questions relating
to regulatory process issues, contact Faith Bremner at email:
[email protected]. Individuals in the United States who are deaf, blind,
hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or
TeleBraille) to access telecommunications relay services for contacting
Mr. Cowan. Individuals outside the United States should use the relay
services offered within their country to make international calls to
the point-of-contact in the United States.
For a summary of the rule, please click on the Docket Details tab
in docket number BLM-2025-0037 on www.regulations.gov.
SUPPLEMENTARY INFORMATION:
I. List of Acronyms
II. Executive Summary
III. Public Comment Procedures
IV. Background
V. Discussion of the Proposed Rule
VI. Procedural Matters
I. List of Acronyms
APD = Application for Permit to Drill
BLM = Bureau of Land Management
CFR = Code of Federal Regulations
COA = Condition of Approval
CRA = Compensatory Royalty Agreement
DOI = Department of the Interior
DoW = Department of War
E.O. = Executive Order
EOI = Expression of Interest
FLPMA = Federal Land Policy and Management Act
GAO = Government Accountability Office
IBLA = Interior Board of Land Appeals
IRA = Inflation Reduction Act of 2022
MLA = Mineral Leasing Act of 1920, as amended (MLA is also referred
to as ``Act'' in the regulations.)
MLAAL = Mineral Leasing Act for Acquired Lands of 1947, as amended
NEPA = National Environmental Policy Act
NPR-A = National Petroleum Reserve--Alaska
OBBB = One Big Beautiful Bill Act of 2025
OIG = Department of Interior's Office of Inspector General
OIRA = Office of Information and Regulatory Affairs
OMB = Office of Management and Budget
ONRR = Office of Natural Resources Revenue
PRA = Paperwork Reduction Act
RIA = Regulatory Impact Analysis
RMP = Resource Management Plan
ROW = Right-of-way
RRA = Royalty Resiliency Act of 2024
SBA = Small Business Administration
S.O. = Secretary's Order
SME = Subject matter expert
U.S.C. = United States Code
II. Executive Summary
This proposed rule aims to enhance the administration of oil and
gas-related activities on America's public lands and includes
requirements in the OBBB, as well as policy direction in E.O.s and
S.O.s issued by the administration.
Specifically, the proposed rule eliminates the leasing preference
criteria, modifies the public participation periods, reintroduces
noncompetitive leasing, and provides a mechanism for holding
replacement oil and gas lease sales. This rulemaking implements
provisions of the OBBB and President Trump's January 20, 2025, E.O.
14154, entitled ``Unleashing American Energy,'' which directs the
removal of impediments imposed on the development and use of our
Nation's abundant energy and natural resources. In addition, the
proposed rule would return minimum bond amounts to the
[[Page 38085]]
levels in place prior to the 2024 Fluid Mineral Leases and Leasing
Process rule (2024 Leasing Rule) (89 FR 30916 (April 23, 2024)). The
proposed rule would ensure that America's natural resources can be used
to restore American prosperity through advancing innovation to improve
the energy development and production capacity of the United States in
a way that would provide a reliable, diversified, growing, and
affordable supply of energy to meet the Nation's needs for security and
prosperity. The BLM has determined that the changes proposed in this
rulemaking would reduce barriers to the use of Federal lands for energy
development, consistent with the BLM's mission to manage the public
lands for multiple use and sustained yield, in accordance with the
applicable E.O.s, S.O.s, and the Mineral Leasing Act, as amended by the
OBBB. The Secretary of the Interior manages the Federal onshore oil and
gas program pursuant to the requirements of various statutes, including
the Federal Land Policy and Management Act of 1976, as amended (43
U.S.C. 1701 et seq.) (FLPMA); the Mineral Leasing Act of 1920, as
amended (30 U.S.C. 181 et seq.) (MLA); and the Mineral Leasing Act for
Acquired Lands of 1947, as amended (30 U.S.C. 351 et seq.) (MLAAL); as
well as the recently enacted Royalty Resiliency Act (RRA) of 2024 (Pub.
L. 118-81).
III. Public Comment Procedures
If you wish to comment on this proposed rule, you may submit your
comments to the BLM by mail, personal or messenger delivery, or through
https://www.regulations.gov (see the ADDRESSES section). Please make
your comments on the proposed rule as specific as possible, confine
them to issues pertinent to the proposed rule, explain the reason for
any changes you recommend, and include any supporting documentation.
Where possible, your comments should reference the specific section or
paragraph of the proposal that you are addressing (for example, ``43
CFR 3104.1 Bond Amounts''). The BLM is not obligated to consider or
include in the administrative record for the final rule any comments
received after the close of the comment period (see DATES) or comments
delivered to an address other than those listed previously (see
ADDRESSES).
Comments, including names and street addresses of respondents, will
be available for public review at the address listed under ``ADDRESSES:
Mail, personal or messenger delivery'' during regular hours (7:45 a.m.
to 4:15 p.m. eastern time), Monday through Friday, except holidays.
Before including your address, telephone number, email address, or
other personal identifying information in your comment, be advised that
your entire comment--including your personal identifying information--
may be made publicly available at any time. While you can ask us in
your comment to withhold from public review your personal identifying
information, we cannot guarantee that we will be able to do so.
As explained later, this proposed rule includes revisions to
information collection requirements that must be approved by the OMB.
If you wish to comment on the revised information collection
requirements in this proposed rule, please note that such comments must
be sent directly to the OMB in the manner described in the ADDRESSES
section. The OMB is required to make a decision concerning the
collection of information contained in this proposed rule between 30
and 60 days after publication of this document in the Federal Register.
Therefore, a comment to the OMB on the proposed information collection
revisions is best assured of being given full consideration if the OMB
receives it by July 24, 2026.
IV. Background
The BLM is undertaking this rulemaking for two primary reasons: (1)
To implement revisions to the MLA by the OBBB and to make the
regulations consistent with the policy direction provided for in E.O.s
and S.O.s that were issued in early January 2025; and (2) To ensure
that all regulatory requirements related to leasing and development of
oil and gas from Federal lands are grounded in applicable law. As
documented in S.O. 3418, which was issued in February 2025,\1\ the BLM
aims to reduce barriers to the use of Federal lands for energy
development, consistent with FLPMA's principle of managing the public
lands on the basis of multiple use and sustained yield.
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\1\ DOI, S.O. 3418--Unleashing American Energy, www.doi.gov/document-library/secretary-order/so-3418-unleashing-american-energy.
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The Secretary of the Interior manages Federal oil and gas resources
pursuant to the MLA, MLAAL, and other statutes pertaining to specific
categories of lands. The BLM is the agency within the Department of the
Interior (DOI) responsible for regulating onshore oil and gas leasing
activities for federally managed lands and subsurface mineral estate.
The BLM regulations governing onshore oil and gas leasing activities
are set out in 43 Code of Federal Regulations (CFR) parts 3000, 3100,
3110, 3120, 3130, 3140, 3150, 3160, and 3180.
Today, Federal onshore oil and gas production accounts for
approximately 15 percent of domestically produced oil and 9 percent of
domestically produced natural gas. As of the end of Fiscal Year 2024,
the BLM managed 32,758 Federal oil and gas leases covering 22.2 million
acres with nearly 91,006 wells that are capable of production.
A. Enhancing the Administration of the Federal Onshore Oil and Gas
Program
The BLM is undertaking this proposed rulemaking for the purposes of
rescinding regulations that have created needless impediments to the
development and use of our Nation's abundant energy and natural
resources and removing regulations that are not required by or are not
clearly tied to the best reading of the underlying statutory authority,
as directed by President Trump's January 20, 2025, E.O. 14154, entitled
Unleashing American Energy and E.O. 14219, entitled Ensuring Lawful
Governance and Implementing the President's ``Department of Government
Efficiency'' Deregulatory Initiative. The proposed rule would also
implement Secretary Burgum's February 3, 2025, S.O. 3418, entitled
Unleashing American Energy. In addition, this proposed rulemaking would
implement the changes required by the OBBB and the policy direction in
President Trump's January 20, 2025, E.O. 14156, entitled Declaring a
National Energy Emergency, by improving the United States' energy
leasing, development, and production capacity to provide a reliable,
diversified, growing, and affordable supply of energy for our Nation
using existing authorities to the fullest extent possible.
1. The Mineral Leasing Act
The MLA requires the BLM to establish such standards as may be
necessary to ensure that an adequate bond, surety, or other financial
arrangement will be established prior to the commencement of surface-
disturbing activities on any lease. These funds ensure the complete and
timely reclamation of the lease tract, and the restoration of any lands
or surface waters adversely affected by lease operations after the
abandonment or cessation of oil and gas operations on the lease (30
U.S.C. 226(g)). The MLA further requires the BLM to include in oil and
gas leases ``such provisions as [it] deem[s] necessary . . . for the
protection of the interests of the United States . . . and for the
safeguarding of the public welfare'' (see 30 U.S.C. 187).
[[Page 38086]]
When bond levels are raised too high, they tie up significant
amounts of capital in an unproductive capacity, adding another cost
that, in combination with the numerous other costs of operating, can
lead to less development and less production contrary to the policy
direction in E.O. 14154. As required by the MLA, bonds are submitted
prior to the commencement of surface-disturbing activities on a lease.
The BLM raised the minimum bond amounts in the 2024 Leasing Rule based
on its authority in the MLA and in response to various reports by the
Government Accountability Office (GAO) and the Department's Office of
Inspector General (OIG).\2\ In summary, these reports repeatedly warned
that outdated minimum bond amounts provide an inadequate incentive for
companies to meet their reclamation obligations and taxpayers
responsible for cleanup in the event that operators walk away. The
minimum bond amounts are currently $150,000 for individual lease bonds,
and $500,000 for statewide bonds.\3\
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\2\ See, e.g., OIG, ``Inspector General's Statement Summarizing
the Major Management and Performance Challenges Facing the U.S.
Department of the Interior'' (Nov. 2022); GAO, ``OIL AND GAS--Bureau
of Land Management Should Address Risk from Insufficient Bonds to
Reclaim Wells'' (Sept. 2019); GAO, ``Oil and Gas: Bureau of Land
Management Needs to Improve Its Data and Oversight of Its Potential
Liabilities,'' (May 2018).
\3\ The BLM also eliminated nationwide and unit bonds. Refer to
43 CFR 3104.1 and 3104.90.
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The BLM is proposing to return the bond amounts to those in effect
prior to the 2024 Oil and Gas Leasing Rule as it believes the previous
minimum bond amounts are sufficient given the BLM's ability to adjust
bond amounts as necessary during its periodic bond reviews. The BLM
eliminated nationwide bonds in 2024 and is now considering whether the
BLM should re-instate nationwide bonds and, if so, at what level.
Although the BLM is proposing to reduce the current minimum bond
amounts, it retains sufficient statutory and regulatory authority to
increase the bond amount to ensure that the BLM is meeting its
statutory obligation under section 226(g) of the MLA. For example,
during periodic bond adequacy reviews, the BLM can revise the minimum
bond amount. See 43 CFR 3104.50. The BLM's policies, such as
Instruction Memorandum 2024-014, Oil and Gas Bond Adequacy Reviews,
emphasizes securing the appropriate bond amounts considering the number
of wells on each bond and their characteristics and provide the BLM
with the flexibility to set higher bond amounts for at-risk companies,
as well as to impose more stringent interim and final reclamation
requirements, implement additional bond reviews, and develop other
measures to limit the risk to the U.S. taxpayer from a lessee failing
to meet it reclamation obligations.
To address GAO and OIG concerns, the BLM strengthened its bond
adequacy review process in IM2024-014 by implementing risk-based
reviews, standardizing scoring, and instituting strict timelines for
corrective action. The policy also introduced procedures to eliminate
``empty liability'' bonds (those where there is no well covered by the
bond), enhanced enforcement protocols, and requires a full liability
bond for operators with over 50 percent of wells considered idled under
42U.S.C.15907(a)(2), ensuring that bond adequacy reflects actual
liability and risk. These updates create a dynamic system that allows
the BLM to increase bond amounts when warranted, meet its statutory
obligations and protect taxpayers, while avoiding unnecessarily high
minimum bond amounts that could restrict development and conflict with
broader energy policy goals.
2. Providing Adequate Cost Recovery Mechanisms
As explained in greater detail in Section V below, under Discussion
of the Proposed Rule, the BLM is proposing to revise the onshore oil
and gas program's cost-recovery mechanisms. The BLM, in conjunction
with this rulemaking, evaluated those costs, which informed the
proposed adjustments to the onshore program's application fees.
B. Implementing Recently Enacted Laws Concerning the Federal Onshore
Oil and Gas Program
On July 4, 2025, the President signed the OBBB (Pub. L. 119-21).
That law repealed several provisions of the Inflation Reduction Act
(IRA) and further amended the MLA. Specifically, the OBBB repealed
section 50262(a) of the IRA, thereby returning the minimum royalty rate
for oil and gas production to 12.5 percent. It also returned the
royalty rate for reinstated leases to 16.67 percent. The OBBB made
several other changes, such as restoring noncompetitive leasing;
requiring four lease sales each fiscal year in enumerated States;
defining ``eligible'' and ``available'' as those terms are used in the
MLA; requiring the BLM to offer for lease sale 50 percent of the
available parcels nominated in a resource management plan (RMP);
holding a replacement sale if a sale is cancelled, delayed, or deferred
or if 25 percent or more of the parcels do not receive a bid. The OBBB
also enacted further reforms of the oil and gas leasing program, such
as increasing the term of an APD to 4 years and providing for new
provisions governing commingling of oil and gas production. The BLM has
published final rules, direct to final rules, and a commingling
proposed rule to implement many of the provisions in the OBBB. In this
proposed rule, the BLM is proposing to include a noncompetitive leasing
process in 43 CFR part 3110 and to implement the OBBB provisions
related to replacement oil and gas lease sales, as well as ensuring
that all of the other sections of the regulations are consistent with
the OBBB.
Congress enacted the RRA (Pub. L. 118-81) in 2024 to direct the
Federal Government to require reporting and payment for production and
royalty based on the proposed allocation of production for pending
Federal oil and gas agreements (e.g., unit and communitization
agreements) until the BLM issues a final decision on the agreement.
Through this rulemaking, the BLM proposes to revise the regulations to
reflect the requirements of the RRA.
V. Discussion of the Proposed Rule
A. Summary
The proposed modifications to parts 3000, 3100, 3110, 3120, 3130,
3140, 3150, 3160, and 3180 are described in detail in the following
section-by-section discussion.
The BLM is proposing modifications to these parts to implement
policy direction in E.O.s 14154 and 14219, as well as S.O. 3418, and to
implement changes required by the OBBB and the RRA. In addition, the
BLM proposes to remove all the appendices found under 43 CFR 3186 Model
Forms and relocate these form documents to the BLM's forms web page,
because these are form documents that do not belong in the regulations.
In the final 2024 Leasing Rule, the BLM removed regulatory section
designations that had no text associated with them, and the titles of
those deleted section designations became undesignated center headings.
These undesignated center headings serve as section guideposts in the
regulations. These headings break up large subparts and group together
sections that cover particular subject areas. This proposed rule would
similarly add, remove, and revise undesignated center headings
throughout the regulatory text. Each section of each subpart, and each
provision within those sections, is
[[Page 38087]]
separate and severable from the other sections and provisions.
B. Section-by-Section Discussion
The following discussion addresses the proposed changes to the
existing regulations. If a provision is not specifically discussed in
this section-by-section analysis, then the provision would remain
unchanged.
1. Section-by-Section Discussion for Changes to 43 CFR part 3000
The proposed rule does not revise any section headings in the
existing part 3000 regulations.
Section 3000.5 Definitions
The BLM is proposing to amend the introductory sentence in this
section from simply referencing parts 3000 and 3100, to refencing all
of 43 CFR Subchapter C, Minerals Management (3000). The proposed rule
would move the definitions for ``acreage for which expressions of
interest have been submitted'' and ``acres offered for lease'' to the
definitions in 43 CFR subpart 3100, which is specific to oil and gas
leasing, without any changes to the language.
The proposed rule would clarify the definition for ``interest'' to
remove the original 43 CFR 3101.20 citation, because that regulatory
section designation no longer exists.
Section 3000.10 Nondiscrimination
The BLM proposes to remove this section in its entirety, as it is
based on E.O. 11246, entitled Equal Employment Opportunity, which
President Trump revoked on January 21, 2025, through E.O. 14173,
entitled Ending Illegal Discrimination and Restoring Merit-Based
Opportunity. E.O. 14173 reaffirms that longstanding Federal civil
rights laws protect individuals from discrimination based on race,
color, religion, sex, or national origin, serving as a foundation for
equality of opportunity for all Americans. The BLM no longer requires
this section in its mineral leasing regulations, as existing civil
rights laws sufficiently provide protections against discrimination.
Section 3000.100 Fees in general
The proposed rule would revise the effective dates for filing fees
provided for in paragraph (d) to coincide with the effective date of a
final rule. No other changes would be made.
Section 3000.120 Fee Schedule for Fixed Fees
The BLM established these fixed filing fees pursuant to the
authority in FLPMA, which authorizes the BLM to obtain reimbursement
for the BLM's processing costs related to applications under 43 CFR
Subchapter C. The BLM may use these fees to support BLM's software
needed to manage oil and gas leasing and post leasing maintenance. The
BLM proposes to re-arrange the fixed filing fees list set out in Table
1 to Paragraph (a) so they are arranged in alphabetical order for each
program. The proposed rule would also reduce the filing fee for
competitive oil and gas lease applications from $3,100 to $155, and
lease consolidations from $575 to $320 for the reasons explained below.
The proposed rule would add a new $1 per page filing fee for protests,
including attachments or exhibits, that are over 50 pages, and remove
the $30 filing fee for renewal exploration permits in Alaska. The BLM
posts these fees on its website, www.blm.gov/fixed-filing-fee-schedule-blm-energy-and-minerals.
In addition to the fee changes in this proposed rule, on August 1,
2025, the BLM issued a final rule to effectuate section 50101(d)(3) of
the OBBB, which removed a filing fee for expressions of interest.
The BLM proposes to adjust the existing oil and gas filing fees for
lease applications and lease consolidations. The BLM would require a
lease application fee for both competitive and noncompetitive leases.
When these fees were initially set in 2005, and adjusted in the 2024
Leasing Rule, the BLM explained that it reserved the right to amend the
fees in future rulemakings to reflect new data or other evidence that
the fees did not accurately reflect reasonable costs (70 FR 41532 (July
19, 2005) and 88 FR 47562 (July 24, 2023)). The current competitive
leasing application fee includes a processing step intended to recover
the BLM's costs for complying with National Environmental Policy Act
(NEPA) requirements, which inflated the filing fee. The BLM reviewed
the competitive leasing application fee and concluded that the costs
for complying with NEPA are completed by the time a competitive lease
sale takes place. Therefore, the BLM should not be collecting NEPA-
related fees in the competitive leasing application fee. In addition,
the BLM is proposing to have one lease application fee for both
competitive and noncompetitive leases. The competitive leasing
processing step for adjudicating high bids is very similar and
interchangeable with the noncompetitive leasing processing step for
establishing priority for noncompetitive lease applications. Combining
the application fee to cover both types of leases would bring
efficiencies to the program. For lease consolidations, the BLM has
found that while the processing steps have not changed, the BLM has
gained efficiencies through data entry in the Mineral and Land Records
System. These efficiencies have reduced the time spent in processing
the applications thereby resulting in a reduction in the fees.
As noted above, the BLM is proposing to include a new fixed filing
fee of $1 per page for protests, including exhibits or attachments, for
each page over 50. The BLM can use the funds collected from this filing
fee to ensure that the BLM has sufficient capacity (i.e., staff and
resources) to review and respond to protests while meeting the
statutory deadline for holding lease sales and issuing leases. In the
BLM's experience, the length of certain protest filings (i.e., those
exceeding 50 pages) tend to lack focus and often incorporate an
overwhelming array of unrelated information. These submissions
frequently include repetitive content that echoes previous filings,
making it difficult to discern the key issues at hand. Consequently,
the excessive length of these documents results in an inefficient
burden on the BLM's time and resources to sift through irrelevant
material, often already considered at a previous stage or sale, to
address the core concerns effectively. Protests often include
generalized information about the leasing process without clearly
linking the specific claim to a given parcel under consideration. The
BLM established policy in 2005 (see Instruction Memorandum 2005-176,
Filing of Protests on Lands Included in Oil and Gas Lease Sales) to
ensure that an orderly protest process, in which protests are announced
at the sales, allowed the BLM to have sufficient time to issue leases
within 60 days of the payment of the remainder of the bonus bid and
rentals as required by section 226(b)(1)(A) of the MLA. In the past few
years, as shown in Table 14 from the BLM's statistics web page (https://www.blm.gov/programs-energy-and-minerals-oil-and-gas-oil-and-gas-statistics), more than 70 percent of the parcels offered for lease
received a protest. For example, in fiscal year 2022, the BLM received
protests on 100 percent of the parcels offered. The BLM usually
receives protests that range from 20 pages to 120 pages, but some
protests can also be thousands of pages long, delivered in boxes to the
state offices. To ensure an efficient oil and gas leasing process, the
BLM proposes to include a nominal filing fee per page for protests
(including exhibits) for each page of a protest that exceeds 50 pages.
[[Page 38088]]
The BLM reviewed the protests received in calendar year 2024 and found
that it received 31 protests, 14 of which contained over 50 pages. The
page count for these protests, including exhibits, ranged from one page
to 892 pages. If the BLM had implemented this proposed fee earlier,
then only 14 protests received in 2024 would have required a filing fee
with a total amount of $5,754 and an average fee of $186. For
additional context, during a recently held lease sale, a protesting
party actively engaged in submitting comments at each stage of the
process: scoping, public comment, and protest. The letters submitted
across these phases averaged 116 pages in length. Furthermore, the
protestor provided between 15 and 223 peer-reviewed articles at each
public involvement stage, with individual article lengths varying
significantly, ranging from a single page to an extensive 3,676 pages.
This substantial volume of documentation underscores the seriousness
and breadth of protest content but also highlights that much of it is
repetitive from sale to sale and duplicative across different stages of
a given sale. The fee is not being proposed to reimburse the BLM for
its processing costs, which the BLM estimates to be $2,470 per protest.
Instead, the purpose of the filing fee is to encourage individuals
submitting protests to be clear and concise as to the basis for the
protest. This would enable the BLM to timely review and address the key
issues raised in a protest without unduly delaying a final decision on
lease issuance or causing parcels proposed for a sale to be deferred
due to a lack of resolution of a protest. In addition, the majority of
protesters would not need to pay a filing fee as their protests are
under 50 pages.
The BLM is proposing to remove the fixed filing fees for
exploration permit renewals in Alaska. The BLM rarely receives
exploration permit renewals in Alaska and has not collected the fee in
the past 10 years. It costs the BLM more to maintain this filing fee in
its collection system than it does to receive the benefit of collecting
a fee from a permittee.
The BLM reviewed and considered both case-by-case and fixed filing
fees for the remaining existing fees in this rule. Historically, the
BLM has determined costs on a case-by-case basis for types of documents
where the costs may differ significantly in each case. In this
proposal, the BLM has opted to institute fixed filing fees for
protests, because charging processing costs on a case-by-case basis
would be time consuming and would not be the most efficient use of BLM
resources. Collecting cost data on a case-by-case basis for each
document to be processed adds to the processing costs. The BLM decided
that it would be more efficient and sufficiently reliable to set a
fixed fee based on average costs and indexed to inflation. In addition,
there is a public benefit from knowing fees in advance.
To determine the proposed changes to the fixed filing fees, the BLM
followed the same method it used in 2005 and 2024 to set and adjust the
current fixed fees: using a weighted average rather than a simple
average to determine the processing cost for each type of document.
This method gives greater weight to the processing cost data from state
offices with a heavy workload and, thus, more expertise in processing a
particular type of document. The BLM's fluid minerals program
identified the document-processing steps and then asked the state
office subject matter experts (SMEs) to identify the appropriate job
position, salary level, and time required to perform particular steps
specified under the BLM's current policy. The BLM then calculated a
direct cost for each process and adjusted to 2025 salary rates without
a locality-pay factor. The BLM's fluid minerals program spot-checked
the data and sent each state office a summary of the cost data that the
office had previously submitted for these types of documents, along
with the BLM-wide weighted average cost for each. State offices were
asked to review the cost data and report whether that data, adjusted to
proposed filing fee amounts, remained reasonable. They were also asked
to re-estimate costs if the state office found the re-examined adjusted
cost data to be inaccurate. A re-examination verified that the BLM's
data continues to be valid and ensures that figures, which varied
significantly among offices, had not been submitted in error.
Processing Steps for the Fixed Fees
The BLM reviewed the processing steps, and the following table
summarizes the results of this review.
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The current $500 fee for Class II lease reinstatements is located
at existing 43 CFR 3108.23(b)(2)(vi). The BLM considered moving the
existing fee to 43 CFR 3000.120 for inclusion alongside the fixed
filing fees, increasing the fee to reflect the processing costs, and
then adjusting the fee annually for inflation. However, the MLA, at 30
U.S.C. 188(e), specifically states for Class II lease reinstatements
that ``[t]he lessee of a reinstated lease shall reimburse the Secretary
for the administrative costs of reinstating the lease, but not to
exceed $500.'' Accordingly, the BLM proposes to leave the
administrative fee of $500 in its current location at 43 CFR
3108.23(b)(2)(vi).
FLPMA Factors and Processing Fees
Section 304(b) of FLPMA lists six factors, commonly known as the
FLPMA reasonableness factors, that the BLM must consider when deciding
the amount of a reasonable processing fee. Those factors are:
(1) The BLM's actual costs to process a document not including
management overhead, i.e., the processing time spent by the BLM State
Directors, Deputy State Directors, and other management staff. Actual
costs include (but are not limited to) time spent at the state and
field office levels by SMEs who work on a specific authorization, such
as a lease, and funds spent on environmental reviews, technical
reviews, and analyses.
(2) The monetary value, or objective worth, of the right or
privilege that the applicant seeks;
(3) The efficiency with which the BLM processes a document, i.e.,
minimizing of waste by carefully managing agency expenses and time;
(4) Whether any of the BLM's processing costs, for actions such as
studies or data collection, benefit the general public or the Federal
Government, rather than just the applicant alone;
(5) Whether the project provides any significantly tangible
improvement, such as a road, or other direct service to the public.
Occasionally, a negative factor, such as an adverse impact on wildlife,
habitats, or surface drainage, may prevent an improvement from
qualifying as a public service. Data collection that the BLM requires
of an applicant for monitoring an activity is not a public service; and
(6) Other relevant factors.
The BLM considered each of the FLPMA reasonableness factors for
each type of document for which the BLM is proposing to adjust the
existing fee or add a new fixed fee. The BLM first estimated the actual
cost to process a type of document. When estimating the processing
costs, the BLM determined a range based on the range of costs provided
by the BLM state offices. The BLM then considered each of the other
FLPMA factors to determine if they warranted setting the fee at less
than actual cost. If so, the BLM then considered whether any of the
remaining factors acted as an enhancing factor that would mitigate
against setting the fee at less than actual cost. Lastly, the BLM
decided the amount of the fee, which cannot be more than the processing
cost. For all of the fees in this proposal, this method resulted in
fees set at the lower end of the BLM's processing cost.
Actual Costs
Actual costs are the sum of both direct and indirect costs. Direct
costs include such things as labor, material, and equipment. The BLM
estimated the direct costs by reaching out to each BLM state office and
requesting an estimate of the processing time for each application
based on the steps detailed in the previous table. Then using the
average hourly wage, the BLM calculated the direct cost for the BLM to
process the application. Indirect costs include items such as rent and
overhead, excluding State Director and management overhead. For an
example of how the BLM would determine the sum of direct and indirect
costs, assume the measured direct cost of processing a document is
$200. To estimate the indirect cost for processing that document, the
BLM uses a ratio that it calculates annually. Annually, the BLM
calculates the indirect cost rate, which is assessed on these fixed
filing fees. Indirect costs are the overhead costs, which remain after
direct costs have been computed, and may include utilities,
telecommunications, information technology, space rental, and other
administrative support functions. Currently that ratio is 10 to 2, or
20 percent, meaning for every $10 of direct costs there would be $2 of
indirect costs. The BLM would estimate the indirect cost using the
ratio and direct cost figures. In this example, since the direct cost
was $200 and the ratio is 10 to 2, the indirect cost is $40. The BLM
then would add the direct and indirect cost figures to arrive at the
actual cost figure of $240 to process the document. This method is
generally accepted in the private and public sectors.
Monetary Value of the Right or Privilege
Historically, the BLM concluded that its processing costs to
prepare parcels for lease sales benefit three classes of beneficiaries:
the party who requests that the parcel be included in the sale, all
parties who bid on the parcel, and the successful bidder. The party who
[[Page 38094]]
requests a parcel to be included in a lease sale benefits by
influencing the selection of the parcels offered.
Monetary Value to the Applicant
The BLM did not attempt to calculate the monetary benefit to each
applicant, because those values are not always knowable to the BLM, and
it would be inefficient to attempt to calculate them for each
application or submission.
Monetary Value of the Right or Privilege Granted
To gauge the monetary value, the BLM considered the monetary value
of similar rights or privileges granted to applicants historically. The
BLM reviewed each type of document and compared the proposed filing fee
for a given type of document with our professional judgment of the
historical values of similar rights or privileges that the BLM has
granted. In each case, the BLM believes the value of the right or
privilege is so much greater than the processing cost that a fee based
on the average actual cost would not significantly affect the
applicant's proposed action. This is not surprising considering that
the costs pertain to documents related to the commercial development of
minerals. The BLM did not reduce any fees because of this factor.
Monetary Value Change
The BLM bases its decision about the monetary value of the benefit
to the applicant on the value at the time the applicant submits its
application. All leases have relatively large monetary value before
exploration compared with the proposed fees. The basic value of the
opportunity provided by a lease to explore for minerals is shown by the
willingness of applicants to pay large sums before exploration for
bonus bids, for lease transfers, and for exploration activities such as
drilling. Because the monetary value of the right sought in a lease is
much greater than the cost of processing the lease, the BLM considers
it reasonable to charge a fee equal to processing costs for all lease
applications.
The Efficiency Factor
The BLM's fluid minerals program asked the state offices' SMEs to
provide a minimum, maximum, and average time spent on each application
process. Some SMEs stated that their estimated range depended on the
experience of the staff. The estimates from less experienced staff
increased the amounts for the average and the high estimate for
processing costs. In addition, some state offices receive fewer
applications compared to other state offices. This can increase the
processing time SMEs spend researching and processing applications when
their particular offices do not frequently receive them. Therefore, the
BLM chose to use the lowest estimate for time spent on processing
applications to create the weighted average so that applicants are not
penalized for understaffed offices or offices with fewer seasoned
employees.
The BLM ensured that the field offices efficiently process the
documents for which fees are charged. For all the new and existing
fees, the BLM based the processing procedures on standardized steps as
outlined in the BLM handbooks and Instruction Memoranda in order to
eliminate duplication and extraneous procedures. The BLM developed
these detailed and measurable processing steps to be efficient.
The Public Benefit Factor
Possible public benefits from the BLM processing activities, such
as studies or data collection, are also difficult to measure. For
example, studies related to document processing often provide
information about an area's natural resources. This is sometimes a
public benefit, but the value of the information, or whether there will
be a benefit at all, is not predictable. The BLM concluded that
document processing for types of fixed fee documents in this rulemaking
does not usually produce studies or data that significantly benefits
the public. In addition, the BLM determined that for each type of
document in this rulemaking, the monetary value to the applicant
outweighs the possible benefit of such studies to the public. The BLM
analysts used their knowledge of the historical values of such cases to
make these determinations. The BLM has, therefore, decided that this
factor does not warrant setting any fee in this rulemaking at less than
its actual processing cost, except for the protest fee. Protests
against offering parcels on an oil and gas lease sale provide a benefit
to the BLM by reducing the potential for error in the lease sale
process. The fee for oil and gas lease sale protests was therefore set
at $1 per page, over 50 pages, which is less than BLM's actual
processing cost of $2,470 per protest.
The Public Service Factor
A project's service to the public concerns whether the applicant's
project itself, as opposed to the BLM's processing of the related
documents, provides some significant direct service or benefit to the
general public. FLPMA refers to this as public service. Examples
include improvements, such as roads, trails, or recreation facilities.
Occasionally, a negative factor, such as an adverse impact on wildlife,
habitats, or surface drainage, may prevent the BLM from regarding an
improvement as a public service.
The projects with a proposed fixed fee do not generally provide a
public service. The lease consolidation and the issuance of leases
received do not provide a public service. Unlike activities that
provide direct public services, such as infrastructure development or
environmental studies, the lease consolidation and issuance process
primarily benefit lessees and generates government revenue without
offering broad public benefits. Consequently, for fixed fee documents,
the likelihood of providing such a public service is too remote and
speculative to warrant charging a fee less than actual costs.
Other Factors
The BLM did not find other factors that made it reasonable to
adjust fees in this proposed rulemaking, except for the protest fee.
Protests received against offering parcels on an oil and gas lease sale
provide a benefit to the BLM by reducing the potential for error in the
lease sale process. The fee for oil and gas lease sale protests is
therefore proposed to be set at $1 per page, over 50 pages, which is
less than the BLM's actual processing cost.
New Proposed Oil and Gas Fixed Fees
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We have rounded estimated fees down or up to the nearest $5, for
ease of payment and administration except for the protest fee, which is
less than the
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BLM's actual processing cost as explained above. This is consistent
with general business practices.
Annual Inflation Adjustments
The BLM no longer publishes the annual fee adjustments in the
Federal Register and the CFR. The BLM posts the updated table on the
BLM's web page at https://www.blm.gov/fixed-filing-fee-schedule-blm-energy-and-minerals with the historical fees posted in the same
location. Revised fees are effective each year on October 1.
Annual inflation adjustments are calculated based on the percentage
change in the Implicit Price Deflator for Gross Domestic Product for
the 1-year period between the fourth quarters of the previous 2 years,
consistent with the 2005 Cost Recovery Rule. For example, the fiscal
year 2022 fees were set based on the change in the IPD-GDP from the
fourth quarter of 2020 to the fourth quarter of 2021. The BLM then
multiplies the current fee amounts by that multiplier to obtain the
adjusted fee amounts.
Existing Applications
The BLM would not charge a new fixed fee under this rule for
processing a document that the BLM received before the effective date
of any final rule. Documents submitted before the effective date of the
final rule would be processed with the appropriate fees under the
regulations existing as of the submittal date.
2. Section-by-Section Discussion for Changes to 43 CFR Subpart 3100
The proposed rule would remove the existing Sec. Sec. 3101.31,
3101.32, and 3101.33 covering options in their entirety as these
sections are not used by industry or the BLM. E.O. 14270 directs the
BLM to incorporate a sunset provision into regulations promulgated
under FLPMA. While the BLM's oil and gas leasing regulations reference
FLPMA for land use planning decisions, these regulations are primarily
established under the MLA and its authority for promulgating
regulations. As a result, the BLM did not include a sunset date for its
oil and gas leasing regulations and proposes to remove the FLPMA
citation from its authority citation for part 3100.
Section 3100.5 Definitions
The purpose of this section is to provide definitions of terms used
in parts 3100, 3110, and 3120.
The proposed rule would move the terms ``Acreage for which
expressions of interest have been submitted'' and ``Acres offered for
lease'' from 43 CFR 3000.5 to this section, as previously discussed
above, because these definitions are specific to oil and gas leasing.
Section 3100.9 Information Collection
The proposed rule would update the Table 1 in paragraph (b) to add
noncompetitive leases in the new part 3110 to Control Number 1004-0185.
The proposed rule would update the table located in paragraph (b)(2) by
moving the reference to 43 CFR 3106 from OMB Control Number 1004-0034
to Control Number 1004-0185. The 2024 Leasing Rule transferred the
information collection requirements, along with the associated burdens
from OMB control number 1004-0034 to 1004-0185, however the BLM
inadvertently missed this table update. All other control number
assignments would remain the same.
Sections 3100.31 Through 3100.33 Options (Existing)
The BLM proposes to remove Sec. Sec. 3100.31, 3100.32, and 3100.33
from the existing regulations. An option agreement generally contains
an exclusive right to explore and evaluate the lands during the option
period. Parties use the agreement in real estate investing to grant to
one party the right, but not the obligation, to purchase an asset from
or sell an asset to the other party. An option agreement outlines the
agreed upon price and a future date for the transaction. The option
period is a set period stated in the agreement during which a party may
cancel the agreement without obligation to purchase the lease. The BLM
proposes to rescind the sections covering options, because the industry
has never filed options with the BLM. While the BLM has not previously
received option statements from industry, the BLM cannot prohibit
options and would continue to accept option agreements for inclusion in
the lease file for a lease with the understanding that BLM's acceptance
of an option does not mean it is approved or valid.
3. Section-by-Section Discussion for Changes to 43 CFR Subpart 3101
The proposed rule would move the existing Sec. Sec. 3101.21,
3101.22, 3101.23, 3101.24 and 3101.25 covering Acreage Limitations to
subpart 3102, because acreage limitations can also affect post-leasing
actions, such as assignments, transfers, and reinstatements. The
removal of these sections would result in renaming the undesignated
center heading from Acreage Limitations to Limitation on the Issuance
of New Leases thereby causing some of the sections to be redesignated
accordingly. The purpose of this reorganization is to achieve
consistency and ease of reference throughout subpart 3101.
Section 3101.12 Surface Use Rights
The BLM promulgated this section in 1988 to clarify the BLM's
authority to use the terms and conditions of the standard lease form to
control site-specific environmental impacts on leaseholds, as opposed
to lease-specific protective measures, addressed in lease stipulations,
and to mitigate impacts to specific resource values identified on
leased lands. The standard lease form authorizes the BLM to require
reasonable measures to the extent that such measures would be
consistent with the lessee's rights. The BLM may not impose mitigation
measures that would render lease operations uneconomic or infeasible;
however, the BLM may impose some types of mitigation measures if the
BLM documents that such requirements are reasonable and necessary to
prevent unnecessary or undue degradation of public lands or resources
and provided that those measures are included in the underlying RMP, as
required by section 50101(d)(3) of the OBBB.
Previously, the 2024 Leasing Rule increased the minimum siting
distance and timing limitation for lease activities that were
considered consistent with lease rights due to the advances in
horizontal and directional drilling. The 2024 Leasing Rule increased
the siting measure for the location of proposed operations from 200 to
800 meters (approximately \1/2\ mile) and the timing of surface
disturbance operations from 60 days to 90 days. The BLM proposes to
return to the pre-2024 Leasing Rule values. The BLM calculated 678
acres as the average size for Federal onshore oil and gas leases based
on the Fiscal Year 2024 oil and gas statistics. Moving the location 800
meters would move the location halfway across an average-sized lease.
In addition, many leases include timing limitations that limit
development on a lease to 6 months or less. Applying a 90-day timing
limitation could limit a lessee to only being able to develop its lease
for 3 months out of each year. These modified distances and timing
limitations unnecessarily increase the burden on oil and gas lessees
and operators; therefore, the BLM is proposing to return to the
previous values of 200 meters and 60 days.
Although this proposed rule would decrease the minimum distance and
minimum timing limitation duration within this section, the Interior
Board of Land Appeals (IBLA) has upheld the
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BLM's authority to move operations and confirmed that the siting and
timing parameters in the regulations are only minimums. Yates
Petroleum, 176 IBLA 144, 156 (2008). Therefore, the BLM does not expect
to see any adverse impacts to other resources on the public lands due
to returning this provision to the values that had been in existence
for over 30 years.
The OBBB states that the BLM cannot impose stipulations or
mitigation requirements in a lease that are not included in the RMP
governing the lands to be leased; however, the BLM is not interpreting
this provision as applying to conditions of approval (COA) for APDs.
This interpretation is grounded in several key points:
Distinct Nature of COAs: COAs are operational measures imposed
after lease issuance to ensure that drilling activities comply with
environmental standards and best management practices. Unlike lease
stipulations, which are attached during the leasing process, COAs
address site-specific concerns that may arise during the permitting
phase, allowing for adaptability and responsiveness to new information
once operators identify the location they intend to drill.
Alignment with RMP Objectives: While the language restricts the BLM
from adding new lease stipulations not included in an applicable RMP,
it does not limit the BLM's ability to impose COAs that are consistent
with the RMP's objectives and that further support the BLM's
interpretation. COAs enhance environmental protections and operational
safety without contradicting the terms established in the approved RMP.
They also ensure compliance with other laws, such as the Endangered
Species Act.
Responsibility to Protect Resources: The BLM has an ongoing
responsibility to manage public lands effectively and to implement
necessary measures to protect the environment, wildlife, and public
interests. Not allowing the BLM to apply COAs would limit its ability
to address unforeseen impacts on public resources. In addition, were
the BLM to be limited in applying COAs to an APD, this may result in
the BLM having to deny an APD that could otherwise be approved with an
appropriate COA.
In summary, the OBBB's restriction on applying mitigation measures
and stipulations does not restrict the BLM's ability to apply COAs at
the APD stage to ensure the BLM is complying with all other applicable
laws, such as FLPMA and the ESA. The BLM retains its authority to
propose and implement COAs to address operational specifics and site-
specific concerns, ensuring effective management of both resource
development and environmental protection. This includes the ability to
move locations more than 200 meters or implement a timing limitation of
more than 60 days.
In addition, the proposed rule would remove the words ``federally
recognized Tribes, and underserved communities.'' Instead, the BLM
would return to the language in the prior regulations that considers
reasonable measures to mitigate adverse impacts to all land uses or
users. This will prevent readers from misinterpreting this section as
limited to federally recognized Tribes and underserved communities.
Sections 3101.21 Through 3101.25 Acreage Limitations (Existing)
The BLM proposes relocating the Acreage Limitations currently
covered under Sec. Sec. 3101.21, 3101.22, 3101.23, 3101.24, and
3101.25 to subpart 3102 as Sec. Sec. 3102.51, 3102.52, 3102.53,
3102.54, and 3102.55 for qualifications, without further changes. This
move is intended to reflect that acreage limitations impact not only
lease issuance but also the ability to acquire lease interests through
assignments, transfers, and mergers. Relocating these sections would
necessitate redesignating other sections within the regulations.
Section 3101.52 Action by the Bureau of Land Management
This section outlines the actions that the BLM will take if another
Federal surface management agency consents to a lease on lands it
manages. The proposed rule would revise paragraph (a) by removing the
last sentence, ``The authorized officer may add other appropriate
stipulations,'' as this language conflicts with Sec. 3101.13(a) which
states ``Leases issued by the BLM will include only those stipulations
and mitigation measures included in the RMP covering that parcel of
land that is being leased.'' Section 50101(d) of the OBBB amended the
MLA and requires any leases issued under the MLA to be subject to the
terms and conditions of an approved RMP and prohibits the Secretary
from including any stipulations or mitigation in a lease, unless such
stipulations or mitigation are included in an approved RMP. Section
50101(d) also provides that initiation of an amendment to an RMP will
not prevent the Secretary from leasing land, provided the other
requirements of the section have been met. The remaining paragraphs in
this section are unchanged.
The OBBB requires the BLM to only apply stipulations from its
approved RMPs to the leases it issues. Refer to 30 U.S.C. 226(a)(2)(A).
However, the BLM has determined that the requirement to apply
stipulations or mitigation measures within the approved RMP applies
only to lands managed by the BLM or to private surface. For parcels
managed by other Federal surface management agencies, the BLM will
continue to apply relevant stipulations specified by those agencies;
failure to do so would likely result in those agencies withholding
consent to lease. For lands managed by other Federal surface management
agencies, the BLM will first check the land status records which may
show lands were withdrawn from the mineral leasing laws. Lands
withdrawn from the mineral leasing laws are not considered open and
available for leasing. For example, if the BLM received an expression
of interest (EOI) for lands acquired by the Department of War (DoW)
which are not withdrawn from the mineral leasing laws, the BLM must
obtain DoW consent and apply any stipulations included in such consent
to the lease, such as a no surface occupancy restriction in some
circumstances. If the BLM could not apply this stipulation, the DoW
would likely not consent to lease the lands. Therefore, the BLM intends
to continue applying stipulations from other surface management
agencies.
4. Section-by-Section Discussion for Changes to 43 CFR Subpart 3102
The proposed rule would revise the existing subpart 3102 to move
the sections covering acreage limitations in Sec. Sec. 3101.21,
3101.22, 3101.23, 3101.24, and 3101.25 to this subpart as Sec. Sec.
3102.51, 3102.52, 3102.53, 3102.54, and 3102.55, necessitating
redesignation of some of the sections.
Section 3102.20 Non-U.S. Citizens
The BLM proposes to enhance the last sentence in paragraph (a) to
provide clearer information about the consequences of a country denying
privileges to U.S. citizens or corporations. The current sentence
states that if it is determined that a country has denied similar or
like privileges to citizens or corporations of the United States, it
would be placed on a list available from any BLM state office. The
proposed revision would change it to read that if it is determined that
a country has denied similar or like privileges to citizens or
corporations of the United States, the country would be placed on a
list available from any BLM state office and citizens from those
countries may not hold an interest in a lease.
[[Page 38098]]
Section 3102.40 Signature
The proposed rule would correct the citation found in this section
from ``Sec. 3102.50'' in the introductory paragraph to ``Sec. Sec.
3102.62 and 3102.63.''
Sections 3102.51 Through 3102.55 Acreage Limitations (Proposed)
The proposed rule would relocate the existing lease acreage-
limitations provisions from subpart 3101, which governs lease issuance,
to subpart 3102, which governs qualifications of lessees, such that
they would be redesignated as Sec. Sec. 3102.51 through 3102.55. The
existing acreage-limitations ``Sec. 3101.21 Public domain lands,''
would be redesignated as Sec. 3102.51; ``Sec. 3101.22 Acquired
lands,'' would be redesignated as Sec. 3102.52; ``Sec. 3101.23
Excepted acreage,'' would be redesignated as Sec. 3102.53 and includes
a correction to the existing citation in paragraph (a)(3) to change
``43 CFR 3105.30'' to ``43 CFR subpart 3105''; ``Sec. 3101.24 Excess
acreage'' would be redesignated as new Sec. 3102.54; and Sec. 3101.25
Computation would be redesignated as new Sec. 3102.55. No other
changes are proposed to the language under these sections.
Section 3102.51 Compliance (Existing Regulations)
The proposed rule would redesignate the existing Sec. 3102.51 as
new Sec. 3102.61 due to the relocation of the acreage-limitations
provisions discussed above. The BLM proposes to revise the initial
paragraph, which generally outlines requirements for compliance, to
change the word ``will'' to ``must'' in paragraph (a). The word
``must'' provides a clearer indication of the obligation for this
requirement and removes any ambiguity related to the word ``will.''
``Will'' can imply a future action that is likely or expected but not
guaranteed. In contrast, ``must'' removes ambiguity and ensures that
the regulated community and the public clearly understand that the
action is essential and non-negotiable.
The BLM also proposes to revise paragraph (b) to correct the
existing referenced citation ``Sec. 3101.20'' to ``Sec. Sec. 3102.51,
3102.52, 3102.53, and 3102.54.'' The BLM proposes to revise paragraph
(g) to correct the existing referenced citation ``Sec. 3102.53'' to
``Sec. 3102.63'' due to the proposed changes noted below.
Section 3102.52 Certification of Compliance (Existing Regulation)
The proposed rule would redesignate the existing section as Sec.
3102.62 due to the relocation of the acreage-limitations provisions.
The BLM proposes to revise the paragraph to change the existing
referenced citation from ``Sec. 3102.51'' to ``Sec. 3102.61.''
Section 3102.53 Evidence of Compliance (Existing Regulation)
The proposed rule would redesignate the existing section as Sec.
3102.63 due to the relocation of the acreage-limitations provisions.
5. Section-by-Section Discussion for Changes to 43 CFR Subpart 3103
The proposed rule would not revise any section headings in the
existing 43 CFR subpart 3103 regulations.
Section 3103.1 Fiscal Terms
The proposed rule would update the last sentence in paragraph (a)
to remove the phrase ``Per the Inflation Reduction Act.'' The proposed
rule would update the fiscal terms schedule found at 43 CFR 3103.1(a)
Table 1, to remove the word competitive from ``Competitive oil and
gas'' as well as from ``Competitive lease reinstatement, Class II'' as
the OBBB reinstituted noncompetitive leasing, which the IRA had
repealed. These rental requirements listed in the schedule would also
apply to noncompetitive leases. Removing the word competitive from
these phrases makes it clear that these rentals requirements apply to
both types of oil and gas leases.
Section 3103.11 Form of Remittance
The proposed rule would remove the first sentence that references
payments made by personal check, cashier's check, certified check, or
money order. This proposed change is consistent with E.O. 14247,
Modernizing Payments To and From America's Bank Account, signed on
March 25, 2025. This order states ``As soon as practicable, and to the
extent permitted by law, all payments made to the Federal Government
shall be processed electronically.'' The proposed rule would update the
second sentence in this paragraph to remove the phrase ``by other
arrangements'' since electronic payments made to the BLM would be the
primary method of accepting payment. The proposed rule would further
update the second sentence in this paragraph to insert ``or other
digital payment options,'' to match the language of the E.O. and so
this section does not become outdated with future technological
advances. The BLM would allow alternative payment options from an
individual or entity if they request and qualify for an exception from
submitting an electronic payment on a case-by-case basis.
6. Section-by-Section Discussion for Changes to 43 CFR Subpart 3104
The BLM proposes to change the subpart 3104 heading from ``Bonds''
to ``Performance Bonds'' to reduce confusion about the type of bonds
the BLM has always maintained. Performance bonds are provided to the
BLM under subpart 3104 to guarantee a lessee's performance in complying
with the requirements of a lease. If a lessee defaults on its
obligations under the terms and conditions of a lease, the BLM can
collect the performance bond to remedy the default. The performance
bond protects the BLM, and ultimately the taxpayers, from financial
loss should the operator fail to perform its obligations under the
terms and conditions of the lease, and the regulations and laws under
which the operations were authorized.
The BLM is requesting that commenters provide information on unit
operator and nationwide bonds used by the BLM before publication of the
2024 Leasing Rule. Before the 2024 Leasing Rule, the BLM accepted the
following bonds: individual bonds that cover the operations for a
single lease; statewide bonds that cover the operations for all Federal
leases in a single State; nationwide bonds that covered the operations
for all Federal leases nationwide; and unit operator bonds that covered
the operations for all Federal leases in a single unit agreement. The
2024 Leasing Rule eliminated nationwide and unit operator bonds for the
reasons stated in the rule. The BLM is seeking public comments on the
following options: (1) Allow for nationwide bonds; (2) Allow for
nationwide and unit operator bonds; or (3) Continue the 2024 Leasing
Rule's elimination of both nationwide and unit operator bonds from the
BLM's lease bonding program for the reasons set out in the proposed and
final 2024 Leasing Rule. If the BLM chooses to include either
nationwide or unit operator bonds in the final rule, it would also
include minimum bond amounts consistent with the amounts set for
individual lease and statewide bonds.
The BLM is requesting comments on allowing nationwide and unit
operator bonds because these bond types were accepted prior to the 2024
Leasing Rule and may offer operational flexibility for some lessees.
While these bonds could reduce compliance costs for operators managing
multiple leases or unit agreements, they may increase administrative
complexity and oversight costs for the BLM. The BLM originally created
unit operator bonds, because the BLM bond forms that predated 1987 did
[[Page 38099]]
not cover the principal bond holder acting in the capacity of a unit
operator when the operator did not have an interest in the lease. The
BLM's current bond forms now address this issue, negating the need for
unit operator bonds. Unit operator bonds have never been widely used by
industry. The minimum bond amount for unit operator bonds were usually
identical to the statewide minimum bond amount as these bonds covered
all leases and operations in one unit agreement. Removing the use of
nationwide bonds created efficiencies for the BLM's oil and gas program
by allowing the agency to better tailor bond amounts to local
conditions and State-specific requirements when reviewing bonds for
adequacy. However, because any reinstated bond types would be required
to meet minimum amounts consistent with individual lease and statewide
bonds, the BLM does not anticipate economic impacts from their
inclusion.
Section 3104.1 Bond Amounts
The BLM is proposing to restore the previous minimum bond amounts
for individual lease bonds (all operations on one Federal lease) and
statewide bonds (all operations on Federal leases in a geographic
State). The purpose of the bond is to ensure the complete and timely
plugging of the well(s), reclamation of the lease area(s), and the
restoration of any lands or surface waters adversely affected by lease
operations after the abandonment or cessation of oil and gas
operations. (43 CFR 3104.10(a)). The regulations at Sec. 3104.1(a)
currently set the following minimum bond amounts:
(1) Lease/Individual Bonds, which provide coverage for one lease
and must be in an amount of not less than $150,000;
(2) Statewide Bonds, which cover all leases and operations in one
State and must be in an amount of not less than $500,000;
The BLM now believes these amounts are too high and inhibit an
operator's ability to develop our nation's oil and natural gas
resources in contravention of existing E.O.s and S.O.s. The BLM
received numerous comments during the 2024 rulemaking that these
amounts were excessive and potentially unobtainable for a large number
of small operators due to practices in the bond market. Commenters
flagged that this would lead to a reduction in domestic energy
production and negatively impact local economies. Bond market
practices, such as the requirement for significant collateral and high
premiums, further exacerbate the financial burden on small operators.
Many small operators may not have the necessary creditworthiness to
obtain bonds at reasonable rates, making it difficult for them to
secure the necessary bonds were they to remain at the higher rates.
Given these concerns, the BLM is proposing to return to the
original minimum bond amounts of $10,000 for lease bonds and $25,000
for statewide bonds. These amounts are currently attainable for small
operators and would alleviate the financial burden on them.
The BLM is proposing to reduce the minimum oil and gas bond amounts
back to the prior values of $10,000 for individual lease bonds and
$25,000 for statewide bonds. The BLM is contemplating re-instating
nationwide bonds. If the BLM reinstates nationwide bonds, the BLM
proposes to restore the previous minimum bond amount of $150,000. This
change aims to lower financial barriers for operators, encouraging an
increase in Federal oil and gas activities. The reduced bonding
requirements may benefit smaller, independent operators, who may find
it challenging to meet the higher minimum bond amounts. By easing these
financial constraints, the BLM believes it will stimulate growth in the
oil and gas sector, enhance economic opportunities, and foster greater
engagement from a diverse range of operators thereby contributing to
the nation's economic security.
The BLM recognizes that lower minimum bond amounts could
potentially decrease the incentive for operators to adhere to
responsible operational practices and properly reclaim well sites,
which could result in greater risks to the public lands and local
ecosystems. However, the BLM is able to mitigate this risk by
continuing to fully use its existing bond adequacy review policy. The
BLM conducts bond adequacy reviews as outlined in Instruction
Memorandum 2024-014, Oil and Gas Bonds Adequacy Reviews, to ensure that
bond amounts for Federal oil and gas leases are sufficient to cover
potential liabilities based on risk, an operator's compliance history,
the number of wells and their characteristics. The BLM's regulations at
43 CFR 3104.50 also provide a basis for increasing the bond amount and
provide the BLM with the ability to bar lessees who fail to provide
increased bond amounts from obtaining additional oil and gas leases.
See 43 CFR 3104.1(c). The policy directs BLM State Offices to review
all bonds at least every 5 years, or more frequently when warranted,
focusing on operators with higher risk factors.
The proposed rule would remove paragraph (c) which provides for a
phase-in period to increase or replace statewide and lease bonds. This
paragraph would no longer be needed. Bonds that have already been
increased to the higher minimum bond amounts may have the potential to
return to the new proposed minimum bond amounts under the current
regulations. Any bonded principal can request a bond decrease if they
believe a decrease is warranted. Upon request, the BLM would perform a
bond adequacy review under its existing policy to approve or deny such
request. The proposed rule would redesignate paragraph (d) to paragraph
(c) due to the removal of the existing paragraph (c).
Should the BLM modify the onshore oil and gas bonding process? As
part of ongoing efforts to enhance the management of onshore oil and
gas resources, the BLM is seeking public input on potential
modifications to the bonding process for oil and gas operations.
Comments are invited on whether the BLM should consider re-establishing
unit operator or nationwide bonds to streamline financial assurance
requirements for operators. Additionally, feedback is requested on any
changes that could improve the effectiveness and efficiency of the
BLM's bonding process while ensuring adequate protection for public
lands and resources. Public input is essential in shaping policies that
balance responsible resource development with environmental
stewardship.
Section 3104.10 Bond Obligations
The proposed rule would revise paragraph (c)(2) to replace the
words, ``Cashier's check'' with ``An electronic funds transfer to the
BLM.'' The proposed rule would also remove paragraph (c)(3), which
references ``Certified check.'' This change would lead to redesignating
paragraphs (c)(4) and (c)(5) as paragraphs (c)(3) and (c)(4),
respectively. This proposed change is consistent with E.O. 14247,
Modernizing Payments To and From America's Bank Account, signed on
March 25, 2025.
Section 3104.90 Bonds Held Prior to June 22, 2025 (Existing Regulation)
The proposed rule would remove the existing Sec. 3104.90 entitled
``Bonds Held Prior to June 22, 2025.'' Under the existing regulations,
operators were required to replace existing nationwide and unit
operator bonds by June 22, 2025. Since that deadline has now passed,
the BLM no longer needs to retain this phase-in period in the
regulations.
[[Page 38100]]
7. Section-by-Section Discussion for Changes to 43 CFR Subpart 3105
The proposed rule would add new Sec. 3105.1 to existing 43 CFR
subpart 3105 to comply with the RRA of September 20, 2024.
Section 3105.1 Reporting and Payment for Production (Proposed
Regulation)
The proposed rule would add a new Sec. 3105.1 entitled ``Reporting
and payment for production.'' This new section is added to comply with
the RRA, which was passed on September 20, 2024. The RRA amended the
Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA), 30 U.S.C.
1721(j), and directs the Department to require reporting and payment
for production and royalty that is based on a pending Federal oil and
gas agreement (e.g., communitization agreements and participating
areas) that has an allocation schedule that outlines how royalties
would be distributed across different leases within the agreement until
the BLM issues a final decision on the agreement. When the BLM issues a
final decision on a pending application, the BLM will specify whether
the lessee, or its designees, must adjust the production reporting or
royalty paid. The lessee would then have until the end of the third
month following the month in which the lessee or its designee receives
the BLM's final decision to adjust the production reporting or royalty
paid, if needed. This provision does not apply to unit or
communitization agreements that include Indian lands.
Proposed paragraph (a) would reflect the requirements of the RRA
and state that the lessee or its designee who is party to a unit or
communitization agreement must report and pay royalties on oil and gas
production for each production month in accordance with the terms of
the proposed allocation of production for the unit or communitization
agreement until the BLM issues a decision on the proposed agreement.
Paragraph (b) would assist the BLM in implementing the RRA and
would state that to assist with accurate and complete reporting,
applicants for a Federal participating area, secondary recovery unit,
or communitization agreement must: (1) Provide a list of wells with
existing production that would contribute production to the area to be
included in the proposed agreement; and (2) As required under 43 CFR
3160.0-9(c)(1), submit a completion report for all wells that would
contribute production to the area included in the proposed
participating area, secondary recovery unit, or communitization
agreement. Proposed paragraph (c) restates the RRA's prohibition
against applying this provision to oil and gas agreements containing
Indian lands.
8. Section-by-Section Discussion for Changes to 43 CFR Subpart 3106
The proposed rule would not revise any section headings in the
existing 43 CFR subpart 3106 regulations.
Section 3106.10 Transfers, General
The proposed rule would revise paragraph (e) to change the citation
from ``43 CFR 3102.51(g)'' to ``43 CFR 3102.61(g)'' for certification
of compliance to address changes being made elsewhere in this proposed
rule.
Section 3106.20 Qualifications of Transfers
The purpose of this section is to ensure that those parties to whom
leases and operating rights are transferred comply with the provisions
of 43 CFR subpart 3102 ``Qualifications of Lessees.'' The proposed rule
would remove the phrase ``and post any bond that may be required.''
This phrase is not associated with 43 CFR subpart 3102 and
unnecessarily repeats similar language found in 43 CFR subpart 3104,
which addresses when a bond is required and 43 CFR 3106.71 for failure
to qualify. The proposed rule would eliminate the sentence that reads
``only responsible and qualified lessees may own, hold, or control an
interest in a lease.'' The proposed rule would eliminate this sentence
because it is repetitive and already covered by 43 CFR subpart 3102.
9. Section-by-Section Discussion for Changes to 43 CFR Subpart 3107
The proposed rule would remove Sec. 3107.52 in existing 43 CFR
subpart 3107 as it is no longer needed as further described below.
Section 3107.10 Extension by Drilling
The proposed rule would correct the referenced CFR citation in
existing paragraph (a) from ``43 CFR 3103.20'' to the correct citation
of ``43 CFR 3103.22.'' In addition, the proposed rule would change the
reference to ``appendix A to part 3180'' to ``43 CFR part 3180.'' As
discussed, the proposed rule would remove the model forms included in
the appendices found in 43 CFR subpart 3186. Finally, the proposed rule
would revise existing paragraph (b) by replacing the phrase
``reasonable person seriously looking for oil or gas could'' with
``prudent operator would,'' as this is the more commonly understood
legal standard. No changes are proposed for paragraph (c).
Section 3107.32 Segregation of Leases Committed in Part
The proposed rule would revise the statement in paragraph (b)(2) to
change the language that currently states, ``If a partially committed
lease'' to read instead, ``If a lease committed-in-part.'' The terms
``committed in part'' and ``partially committed'' are frequently
confused. ``Committed in part'' describes a lease that includes land
both within the unit area and outside the unit area. The BLM will
segregate a fully or effectively committed Federal lease in such a
status into two leases. The BLM will ensure the lease's term is 2 years
or the remainder of the lease term, whichever is longer, for the lands
in the lease outside the unit area from the effective date of
commitment. ``Partially committed'' is when one or some, but not all,
working interest owners have committed their interest in a lease to a
unit agreement. The lease does not get the benefit of the unit, until
such a lease is fully committed, which would happen once the BLM
receives the approval/acceptance of unit joinders from all previously
uncommitted working interest owners. Therefore, the BLM is proposing to
revise Sec. 3107.32 to refer to ``a lease committed in part.''
Section 3107.52 Undeveloped Parts of Leases in Their Extended Term
(Existing Regulation)
The proposed rule would remove this section in its entirety as it
is outdated and no longer needed. The section only applies to leases
issued prior to September 2, 1960. The BLM has no record of any
nonproducing leases that are that old, and if they exist, they would
also be covered by 43 CFR 3107.53, which states, ``Undeveloped parts of
leases retained or assigned out of leases which are extended by
production, actual or suspended, or the payment of compensatory royalty
will continue in effect for 2 years after the effective date of
assignment and for so long thereafter as oil or gas is produced in
paying quantities.''
Section Sec. 3107.60 Extension of Reinstated Leases
The proposed rule would revise the introductory paragraph to
correct the citation from ``43 CFR 3108.20'' to ``43 CFR 3108.22 or 43
CFR 3108.23'' to eliminate any confusion that this applies to all
reinstatements.
[[Page 38101]]
10. Section-by-Section Discussion for Changes to 43 CFR Subpart 3108
The proposed rule would not revise any section headings in the
existing 43 CFR subpart 3108.
Section 3108.23 Reinstatement at Higher Rental and Royalty Rates: Class
II Reinstatements
The proposed rule would update paragraph (a) to remove the phrase
``competitive oil and gas'' since Class II reinstatements are no longer
restricted to competitive leases given the OBBB's reinstatement of the
noncompetitive lease provision.
11. Section-by-Section Discussion for Changes to 43 CFR Subpart 3109
The proposed rule would not revise any of the existing headings in
the existing subpart 3109 regulations, but it would add an undesignated
center heading following Sec. 3109.15 to read as follows: Leasing
Under Other Special Acts.
Section 3109.20 Units of the National Park System
The proposed rule would update paragraph (b) to remove the phrase
``or renewed'' since oil and gas leases are no longer renewed. Oil and
gas leases are issued for a primary term of 10 years. A lease is held
beyond the primary term when the lease contains a well capable of
producing oil and gas in paying quantities.
12. Section-by-Section Discussion for Addition of 43 CFR Part 3110
The proposed rule would add six sections for noncompetitive
leasing, which was reinstated by section 50101(a)(2) of the OBBB. The
title for this new subpart is ``Noncompetitive Leases.'' The Secretary
has broad discretion on how to implement noncompetitive leasing. One of
the challenges with noncompetitive leasing is that the OBBB requires
the BLM to hold replacement sales for competitive oil and gas lease
sales that do not sell 25 percent or more of the acreage offered on a
lease sale. See OBBB section 50101(c)(3)(B). Due to this additional
requirement, the BLM is not proposing to reinstate all of the previous
regulations for noncompetitive leasing, such as those related to
noncompetitive presale offers. The BLM is proposing only to accept
noncompetitive applications that match the competitive parcels after
the competitive oil and gas lease sale, or its replacement sale, has
occurred. In addition, the proposed rule would not reinstate cumbersome
and unnecessary procedures that do not match the MLA (that includes
almost 50 percent of the prior 43 CFR 3110 regulations that were in
place before the 2024 Leasing Rule). The BLM, with this approach, will
be better positioned to respond to a noncompetitive lease application
quickly and minimize delays related to lease issuance.
Section 3110.1 Lands Accessible for Noncompetitive Leasing
The proposed rule would add a new section to describe when lands
are accessible for noncompetitive leasing. Lands would be accessible
for noncompetitive leasing after the BLM has offered lands
competitively and for which the BLM has not received a bid.
Section 3110.2 Application Requirements
The proposed rule would add a new section to describe the
application requirements for noncompetitive leasing. This section would
require an application to be submitted on the BLM's lease form, include
the applicable filing fees, include the advanced first year rental,
demonstrate the applicant's compliance with lessee qualifications,
provide the parcel number from the Notice of Competitive Lease Sale in
which the parcel was offered and did not sell, and the legal land
description of the parcel of interest in the noncompetitive lease
application, which must exactly match the parcel land description of a
parcel that was offered in the competitive auction. This section also
provides the applicant the ability to withdraw an application, unless
the BLM has signed the lease form.
Section 3110.3 Priority
The proposed rule would add a new section to describe how the BLM
will determine priority for noncompetitive applications, when multiple
applications are filed on the same day, by referring to the existing
procedures codified at 43 CFR 1821.11 and 43 CFR 1822.18. Where a
correction to an application is needed or is made, either at the option
of the applicant or the BLM, the priority for the application will be
adjusted when there are multiple applications made for the same lands.
Section 3110.4 Action on Application
The proposed rule would add a new section to describe the action
the BLM will take on applications received for noncompetitive leasing.
The BLM would not issue a noncompetitive lease if there is a pending
action on any existing lease, such as pending lease extensions or an
application with established priority, including a pending petition for
reinstatement. If the BLM improperly issues a noncompetitive lease, the
BLM will cancel the lease under 43 CFR 3108.30. The BLM would reject
noncompetitive lease applications that are not properly filed in
accordance with these regulations, that are submitted before the
competitive lease sale, or that contain lands that have already been
leased. The BLM would accept noncompetitive lease applications filed on
a BLM form not currently in use if it is filed before the form is
declared obsolete by the Director. In these cases, the applicant would
be bound by the terms and conditions of the lease form currently in
use.
Section 3110.5 Noncompetitive Lease Terms
The proposed rule would add a new section to describe the lease
terms for noncompetitive leases. Noncompetitive leases would have the
same terms as competitive leases, including a primary term of 10 years.
The noncompetitive lease would be considered issued when it is signed
by the BLM's authorized officer. A noncompetitive lease would normally
be effective the first day of the month following the date the lease is
issued. An applicant may send the BLM a written request to have the
lease become effective on the first day of the month in which it is
signed. However the BLM must receive the request before the BLM's
authorized officer signs the lease. Noncompetitive future interest
leases will be effective the same day that the mineral interest vests
in the United States.
Section 3110.6 Reversionary Noncompetitive Lease
The proposed rule would add a new section to describe reversionary
noncompetitive leases that would be issued when a Federal lease would
take over immediately upon vestiture of the mineral estate in the
United States and so there is no break in the time the lands are under
lease. This section would apply only to those lands from which oil and
gas is being produced, or when there is a well capable of production
from a private lease and the mineral interest is acquired for
administration by the Secretary of Agriculture pursuant to the Act of
March 1, 1911 (36 Stat. 961 et seq.). An election for a reversionary
noncompetitive lease must be made before the interest becomes a vested
present interest. If the election is made after the time allowed, or if
no election is made, the BLM would reject the application as untimely
and offer the lands at the next competitive lease sale. An applicant
must be qualified to hold an interest in a lease, and because the
[[Page 38102]]
lease is usually producing at the time of lease issuance under this
section, the lessee must have a bond that the BLM has accepted before
lease issuance.
13. Section-by-Section Discussion for Changes to 43 CFR Part 3120
The proposed rule would rename the title of Sec. 3120.11 in this
part so the language is not confused with the definition of ``available
lands'' provided for by the OBBB. The proposed rule would remove
Sec. Sec. 3120.32 and 3120.33 in existing 43 CFR part 3120
``Competitive Leases.'' The goal of these revisions is to remove
requirements that are not required by law or that do not affect oil and
gas leasing in keeping with E.O. 14192 Unleashing Prosperity through
Deregulation. The proposed rule would also remove Sec. 3120.13
Protests and relocate it to new Sec. 3120.43 under the discussion of
the Notice of Competitive Lease Sale provisions to consolidate topics
and enhance readability.
E.O. 14270 directs the BLM to incorporate a sunset provision into
regulations promulgated under FLPMA. While the BLM's oil and gas
leasing regulations reference FLPMA for land use planning decisions,
these proposed regulations are primarily established under the MLA and
its authority for promulgating regulations. As a result, the BLM did
not include a sunset date for these oil and gas leasing regulations and
proposes to remove reference to the FLPMA citation from its authority
statement for part 3120.
Section 3120.11 Lands Offered for Competitive Leasing (Proposed)
The proposed rule would rename this section from ``Lands available
for competitive leasing'' to ``Lands offered for competitive leasing.''
In addition, the first sentence of the section would be modified to
remove the reference to eligible and available lands. The purpose of
these changes is to clarify that the list of lands described in this
section are not automatically available for leasing. The BLM also did
not want the public to interpret or confuse this section with the
definition of available lands provided for in the OBBB.
The proposed rule would revise paragraph (c) to improve clarity,
grammatical precision, and readability while maintaining the core legal
meanings of the original text. These changes would better align
paragraph (c) with the introductory paragraph, as proposed, which would
state: ``The BLM will consider the types of lands described below for
competitive leasing under the MLA, including but not limited to:''.
Paragraph (c) would begin with ``Lands from a cancelled lease or
interest in a lease . . .'' so that it follows grammatically from the
introductory sentence and so that it is parallel with the rest of the
list in this section. The proposed rule would also remove the reference
to options to be consistent with the proposed changes to 43 CFR subpart
3100 as no options have been filed with the BLM. The proposed rule
would remove paragraph (g), which refers to lands offered in a previous
lease sale. Paragraph (g) was recently added to the regulations in the
2024 Leasing Rule after the IRA eliminated noncompetitive leasing.
Since the OBBB reinstated noncompetitive leasing, this paragraph is no
longer needed. The BLM is also proposing language in Sec. 3120.60, as
further discussed below, to incorporate replacement sales when parcels
do not receive a bid.
Section 3120.13 Protests (Existing Regulation)
The proposed rule would remove existing Sec. 3120.13, which
pertains to protests, and relocate it to new Sec. 3120.43 so that it
appears in the provisions pertaining to Notice of Competitive Lease
Sale. This change would allow the sections within part 3120 to appear
in chronological order to enhance clarity and comprehension by creating
a logical flow that would allow readers to follow the progression of
the lease sale process more easily. In addition to updating the
existing paragraphs' language to active voice, the BLM proposes to add
a new paragraph (d) to the new section, which would state that the
processing fee for filing protests that contain more than 50 pages,
inclusive of exhibits or attachments, is listed in the fee schedule in
Sec. 3000.120 of this chapter. This would reflect the proposed new
nonrefundable, administrative filing fee as discussed earlier in this
preamble under proposed changes for 43 CFR 3000.120.
Please provide comments on how the BLM should handle hyperlinks in
protests submitted to the BLM. Should the BLM include each page of a
hyperlink as part of the number of pages to calculate the filing fee?
Section 3120.22 Effective Date of Leases (Proposed)
The proposed rule would change the title of the section from
``Dating of leases'' to ``Effective date of leases'' for improved
clarity. The proposed rule would also revise the paragraph to active
voice and correct the referenced regulatory citation from 43 CFR
3120.80, which does not exist, to the correct citation, 43 CFR 3120.72.
Section 3120.31 Expression of Interest Process
The proposed rule would remove the requirements found in paragraphs
(b)(5) and (b)(6) of this section that require the submitter to
identify the percentage of the United States's fractional interest when
submitting an EOI for leasing lands where the United States holds a
fractional interest or to identify the private surface owner's name and
address when expressing interest in leasing split estate lands,
respectively. The remaining paragraph (b)(7) would be redesignated to
become paragraph (b)(5).
While the BLM proposes to remove the requirement for the submitter
to identify the percentage of the fractional Federal mineral ownership,
the BLM nevertheless encourages submitters to identify the percentage
of the Federal fractional interest if they have documentation showing
the percentage to help speed the BLM's review of the EOI.
As directed by E.O. 14219, Ensuring Lawful Governance and
Implementing the President's ``Department of Government Efficiency''
Deregulatory Initiative, the BLM proposes to remove the requirement for
the EOI submitter to provide the private surface owner's name and
address. The MLA does not require the BLM to notify the private surface
owners when the BLM plans to offer Federal oil and gas interests
underlying their land; therefore, the BLM proposes to remove this
requirement as a regulation that imposes undue burdens on the oil and
gas industry.
As required by the OBBB, the BLM must process EOIs within 18
months. We encourage the individual submitting an EOI for acquired
lands to provide title documents demonstrating that the Federal
Government owns the oil and gas underlying the lands proposed for
leasing to assist the BLM's oil and gas leasing process for several
reasons:
Verification of Mineral Ownership: The title documents provide
essential proof of the Federal Government's ownership of the mineral
rights, allowing the BLM to confirm that the interested party is indeed
seeking to lease minerals owned by the Federal Government. This helps
prevent confusion or disputes regarding property rights and ensures
that the BLM is processing EOIs related to public resources.
Streamlined Processing: Having clear documentation of mineral
ownership upfront can expedite the EOI processing by reducing the time
the BLM would otherwise have to spend verifying
[[Page 38103]]
ownership status later in the review process. This efficiency can lead
to quicker decisions on whether the proposed lands can be included in a
sale and help the BLM manage workloads effectively, facilitating timely
access to the resources.
Enhanced Coordination with Other Agencies: In cases involving
acquired lands that may fall under the jurisdiction of other Federal
agencies, title documents assist the BLM in communicating effectively
about ownership and management responsibilities. This clarity aids
coordination among agencies and streamlines any necessary consent
requirements.
In summary, the BLM is not proposing to require title documentation
as part of the EOI submission but encourages all nominators to include
title documentation on acquired lands. Voluntarily submitting title
documents supports the BLM in confirming mineral ownership,
streamlining processing, and enhancing inter-agency coordination, which
would allow the BLM to more quickly offer the parcels identified in
EOIs on future lease sales.
Section 3120.32 Expression of Interest Leasing Preference
The proposed rule would remove this section in its entirety as the
sections and requirements listed under this section are not required by
law and unnecessarily burden the oil and gas leasing process contrary
to the policy guidance in E.O. 14154 and E.O. 14219. In addition,
elimination of the leasing preference criteria would allow the BLM to
comply with the OBBB, which requires the BLM to offer a parcel within
18 months of receipt of the lands within an EOI. Based on experience
since the promulgation of the 2024 Leasing Rule and the previous
comments submitted on the preference criteria, the BLM has identified
the following deficiencies:
(1) The preference criteria may inadvertently hinder oil and gas
mineral development by delaying the leasing process and unnecessarily
limiting exploration and expansion opportunities.
(2) The criteria are duplicative of existing established processes
for land use planning, resulting in unnecessary delays in oil and gas
leasing without providing tangible benefits.
(3) Modern drilling technology has advanced, allowing for reduced
surface impacts, which the preference criteria do not adequately
consider.
Based upon the above considerations, the BLM proposes to remove
Sec. 3120.32 in its entirety.
Section 3120.33 Agency Inventory of Leasing
This section is related to section 50265 of the IRA, which provides
that the BLM may not issue a right-of-way (ROW) for wind or solar
energy development on Federal land unless it has: (1) Held an onshore
oil and gas lease sale during the past 120 days; and (2) Offered the
lesser of a sum total of either 2,000,000 acres or 50 percent of the
acreage for which EOIs have been submitted for lease sales during the
previous 1-year period. The proposed rule would remove this section in
its entirety as this section does not govern oil and gas leasing and
limits the BLM in issuing ROWs for wind and solar development. In
addition, the provision sunsets by law on August 16, 2032, and is
better suited to being addressed in policy guidance.
Section 3120.42 Posting Timeframes
The proposed rule would remove existing paragraphs (a) and (b),
which require the BLM to provide a scoping period and comment period
during the NEPA review. These scoping and comment periods are not
required by the MLA or any other applicable statute; therefore, the BLM
is proposing to remove these provisions in accordance with E.O.s 14192
and 14154. Eliminating the two 30-day public participation periods
could significantly expedite the oil and gas leasing process. By
reducing the time spent in public comment and review, the BLM could
still draft strong analyses while facilitating quicker decision-making,
thus allowing for more timely access to resources. This is essential
for meeting the increasing demand for domestic energy production and
ensuring that industry operations can proceed without unnecessary
delays.
In addition, the existing public participation periods are not
mandated by NEPA. The BLM already conducts thorough environmental
reviews and assessments that include opportunities for public input at
various stages, including its land use planning efforts, where the BLM
identifies the lands available for oil and gas leasing and relevant
stipulations. Consequently, the public participation periods often
extend the overall timeline unnecessarily, without providing
significant added value or meaningful changes to the analysis. The BLM
is staffed with professionals who possess the expertise to evaluate the
environmental and operational implications of leasing decisions. By
streamlining public participation, the agency could focus on leveraging
its technical knowledge and scientific assessments to make informed
decisions, rather than being delayed by overly extended public comment
periods that do not yield substantial new information. In some cases,
groups have submitted the same comment to four different BLM
administrative state offices for all sales held in the same month. In a
recently conducted lease sale, a group submitted nearly identical
letters at all three phases of the process, with the lengths of these
letters averaging approximately 116 pages. Upon review, the BLM found
that, with the exception of one statement of reason, all statements in
the scoping and comment letters were replicated in both submissions.
Furthermore, in two recent lease sales, the BLM received almost
identical protests from the same party, highlighting a concerning trend
of redundancy across multiple sales. This repetition raises questions
about the efficiency of responding to such content. Finally, the oil
and gas industry needs timely access to resources to remain competitive
in a rapidly changing market. By removing these redundant public
participation periods that are not required by law, the BLM can respond
more effectively to industry needs and market demands, ensuring that
the U.S. remains competitive in the global energy landscape and
national energy demands are better met.
The existing paragraph (c) would be redesignated as paragraph (a)
and would be revised to change the timeframe for posting of the Notice
of Competitive Lease Sale from 60 calendar days to 45 calendar days
before the sale date to align with the statutory requirement set forth
in the MLA. This adjustment would streamline the leasing process by
reducing unnecessary delays in notifying the public and the oil and gas
industry of pending sales and facilitating quicker access to Federal
lands for oil and gas development.
The existing paragraph (d) would be redesignated as paragraph (b)
and would be revised to change the protest period from 30 calendar days
to 10 calendar days. This reduction in the protest period is intended
to ensure a more efficient and orderly process, allowing for timely
announcements at lease sales of any protests received while still
providing adequate opportunity for stakeholders to voice their
concerns. By shortening the protest period, the BLM can ensure it has
time to respond to protests and meet statutory deadlines for lease
issuance, thereby promoting a more responsive and effective regulatory
framework that supports responsible mineral development. These changes
are designed to enhance operational
[[Page 38104]]
efficiency while maintaining the integrity of the leasing process.
The existing paragraph (e) would be redesignated as paragraph (c)
and the word ``compliance'' would be removed as it is unnecessary.
In addition, the proposed rule would add a new paragraph (d)
stating the BLM will post a public notice if it decides for any reason
not to hold a scheduled quarterly lease sale. By providing such notice,
those entities that might have participated in a sale will be able to
take the lack of a sale into account in planning any exploration or
development. The BLM could post the notice in multiple places, such as
the National Fluids Lease Sale System, state-office web pages, and in
public rooms. However, the proposed rule does not specify where the BLM
would post this notice to provide for flexibility.
The BLM would hold replacements sales, as provided in proposed
Sec. 3120.60, when a regularly scheduled sale is canceled, delayed, or
deferred, including for a lack of eligible parcels as mandated by
section 50101(c)(3) of the OBBB.
Section 3120.43 Protests (Proposed)
The proposed rule would move the protest section from Sec. 3120.13
to Sec. 3120.43, as discussed above under Sec. 3120.13, so that it
appears in the provisions pertaining to the Notice of Competitive Lease
Sale.
Section 3120.53 Award of Lease
The proposed rule would correct all the references in paragraph (a)
from ``43 CFR 3120.62'' to the correct citation of ``43 CFR 3120.52''
as 43 CFR 3120.62 does not exist in the regulations.
Section 3120.60 Parcels Not Bid on at Auction
The proposed rule would update the paragraph in this section to
incorporate requirements mandated by the OBBB. The proposed rule would
add language to state that the BLM would hold a replacement sale within
30 calendar days when a competitive auction does not receive bids on 25
percent or greater of the acreage offered. This complies with section
50101(c)(3)(B) of the OBBB, which states, ``The Secretary of the
Interior shall conduct a replacement sale during the same fiscal year
if (B) during a lease sale under paragraph (1) the percentage of
acreage that does not receive a bid is equal to or greater than 25
percent of the acreage offered.'' In addition, the section would state
that these lands will be available noncompetitively under 43 CFR part
3110 for 2 years after either the lease sale or the replacement sale,
whichever is later.
Section 3120.72 Future Interest Terms and Conditions
The proposed rule would revise the referenced citation of ``43 CFR
3101.20'' in paragraph (b) to ``43 CFR subpart 3102'' due to the
previously discussed reorganization of the acreage-limitations section.
Section 3120.73 Compensatory Royalty Agreements
The proposed rule would revise this section by adding a sentence
that states the BLM may use such agreements until the BLM issues a
competitive lease for unleased lands included in a compensatory royalty
agreement. In 2011, the BLM issued policy to establish Unleased Lands
Accounts for a consistent, nationwide procedure between the BLM and the
Office of Natural Resources Revenue (ONRR) for collecting royalty
payments for unleased Federal minerals included in a producing
Secondary Unit Agreement, a unit participating area containing unleased
lands, or a CA. However, this approach does not provide the ONRR with
an enforcement mechanism for collections of unpaid royalties.
The MLA, like the Department's regulations, does not preclude the
BLM from using a compensatory royalty agreement (CRA) to prevent
drainage solely for lands that are unleasable. In 30 U.S.C. 226(j),
Congress gave the Secretary of the Interior authority to negotiate CRAs
whenever operators are draining lands owned by the U.S. of oil or gas
through wells drilled on adjacent lands. The Secretary may negotiate
CRAs under which the United States will be compensated for any drainage
of Federal oil or gas. When a secondary unit, a unit participating
area, or a producing communitization agreement contains unleased
Federal minerals that are leasable and subject to drainage, the BLM
will negotiate a CRA with the operator and include a clause for
automatic termination once a Federal lease is issued and becomes
effective. With this proposed change, the CRA would enable ONRR to
establish a revenue account for earned royalty payments with a formal
agreement in place for enforcement.
14. Section-by-Section Discussion for Changes to 43 CFR Subpart 3134.1
E.O. 14270 directs the BLM to incorporate a sunset provision into
regulations promulgated under FLPMA. While the Department's oil and gas
leasing regulations reference FLPMA for land use planning decisions,
these regulations are primarily established under the MLA and its
authority for promulgating regulations. As a result, the BLM did not
include a sunset date for these oil and gas leasing regulations and
proposes to remove reference to the FLPMA citation from the authority
statement for part 3130.
The proposed rule would not revise the existing 43 CFR 3134.1
heading. The purpose of updating this section is to make this section
consistent with 43 CFR subpart 3104. In addition, the existing term
``shall'' would be replaced with the words ``must,'' ``will,'' or
``may,'' as appropriate, for better clarity and to reduce any
confusion.
Section 3134.1 Bonding
The proposed rule would correct the citation in paragraph (a) from
``Sec. 3104.1'' to the correct citation of ``Sec. 3104.10'' for bond
obligations describing the different ways a bond can be secured. The
proposed rule would also remove references to nationwide bonds. If the
BLM decides to reinstate nationwide bonds, the BLM would not modify
this Section to remove the nationwide bond discussion. Paragraph (a)
would now state that prior to issuance of an oil and gas lease, the
successful bidder must furnish the authorized officer a surety or
personal bond in accordance with the provisions of Sec. 3104.10 of
this title in the sum of $100,000 conditioned on compliance with all
the lease terms and conditions, including rentals and royalties, and
any stipulations. The bond will not be required if the bidder already
maintains or furnishes a bond in the sum of $300,000 conditioned on
compliance with the terms, conditions, and stipulations of all oil and
gas leases held by the bidder within NPR-A.
The proposed rule would also revise paragraph (b) to remove
references to nationwide bonds. Paragraph (b) would now state that a
bond in the sum of $100,000 or $300,000, may be provided by an
operating rights owner (sublessee) or operator in lieu of a bond
furnished by the lessee, and must assume the responsibilities and
obligations of the lessee for the entire leasehold in the same manner
and to the same extent as though they were the lessee.
The proposed rule would correct the citations in paragraph (e) from
``Sec. 3104.2'' to the correct citation of ``Sec. 3104.20'' which
covers individual lease bonds, and ``Sec. 3104.3(a)'' to the correct
citation of ``Sec. 3104.30'' which covers statewide bonds.
15. Section-by-Section Discussion for Changes to 43 CFR Subpart 3140
The proposed rule would not revise any section headings in the
existing 43
[[Page 38105]]
CFR subpart 3140 regulations. E.O. 14270 directs the BLM to incorporate
a sunset provision into regulations promulgated under FLPMA. While the
Department's oil and gas leasing regulations reference FLPMA for land
use planning decisions, these regulations are primarily established
under the MLA and its authority for promulgating regulations. As a
result, the BLM did not include a sunset date for these oil and gas
leasing regulations and proposes to remove reference to the FLPMA
citation from the authority statement for part 3140.
Section 3140.14 Other Provisions
The proposed rule would update the citations from ``43 CFR 3101.21
or 3101.22'' in paragraph (a) to ``43 CFR 3102.51 or 3102.52''
consistent with the reorganization of the acreage limitations as
previously discussed.
The proposed rule would update the royalty rate in paragraph (c)(2)
from 16.67 percent to 12.5 percent to comply with the requirements of
the OBBB for combined hydrocarbon leases. This change has minimal
practical impact because the application period for these leases closed
on November 15, 1983, and only three applications remain pending. The
BLM has continued processing these applications while completing land
use planning for the special tar sand areas and preparing the necessary
NEPA analysis to support conversion to combined hydrocarbon leases.
Although the BLM finalized a rule on April 29, 2026 (91 FR 23017),
revising royalty rates as required by the OBBB, the agency
inadvertently did not update the corresponding provision in part 3140
due to the limited number of remaining applications. The proposed
revision would correct this oversight to ensure consistency with the
already published rule. Due to the limited scope of this change, the
BLM did not analyze or monetize the effects to Federal revenues and
operators from the three pending applications.
Section 3140.70 Lands Within the National Park System
The proposed rule would correct the citation from ``43 CFR
3100.3(h)(4)'' in the section to ``43 CFR 3100.3(g)(4).''
16. Section-by-Section Discussion for Changes to 43 CFR Subpart 3141
The proposed rule would not revise any of the headings to the
existing subpart 3141 regulations.
Section 3141.10 General
The proposed rule would update the citation ``43 CFR 3101.21'' in
paragraph (h) to ``43 CFR 3102.51'' consistent with the reorganization
of the acreage limitations as previously discussed.
Section 3141.53 Royalties and Rentals
The proposed rule would update the royalty rate in paragraph (a)
from 16.67 percent to 12.5 percent to conform to the requirements of
the OBBB to address the royalty rate for these combined hydrocarbon
leases.
The proposed rule would correct the citation from ``43 CFR 3103.20
and 3103.30'' in paragraph (e) to ``43 CFR 3103.''
Section 3141.63 Conduct of sales
The proposed rule would correct the citation from ``43 CFR
3120.60'' in paragraph (a) to ``43 CFR 3120.51.''
The proposed rule would correct the citation from ``43 CFR
3120.62'' in paragraph (b)(2) to ``43 CFR 3120.52.''
17. Section-by-Section Discussion for Changes to 43 CFR Subpart 3152
The proposed rule would not change or revise the existing 43 CFR
3152.3 heading. E.O. 14270 directs the BLM to incorporate a sunset
provision into regulations promulgated under FLPMA. While the
Department's oil and gas leasing regulations reference FLPMA for land
use planning decisions, these regulations are primarily established
under the MLA and its authority for promulgating regulations. As a
result, the BLM did not include a sunset date for these oil and gas
leasing regulations and proposes to remove reference to the FLPMA
citation from the authority statement for part 3150.
Section 3152.3 Renewal of Exploration Permit
The proposed rule would remove the filing fee requirement for
exploration permit renewals in Alaska. As previously discussed, this
fee is rarely collected and removing this fee would be in keeping with
policy directives in recently issued E.O.s and Presidential Memoranda
to eliminate unnecessary or obsolete regulations.
18. Section-by-Section Discussion for Changes to 43 CFR Subpart 3165
The proposed rule would not change or revise the existing 43 CFR
3165.1 heading. E.O. 14270 directs the BLM to incorporate a sunset
provision into regulations promulgated under FLPMA. While the
Department's oil and gas leasing regulations reference FLPMA for land
use planning decisions, these regulations are primarily established
under the MLA and its authority for promulgating regulations. As a
result, the BLM did not include a sunset date for these proposed oil
and gas leasing regulations and proposes to remove reference to FLPMA
from the authority statement for part 3140.
Section 3165.1 Relief From Operating and/or Producing Requirements
The purpose of this section is to describe the requirements for
lease suspension applications. Federal oil and gas lessees benefit from
lease suspensions in two ways: (1) They provide financial relief by
temporarily halting rental payments while the lease is suspended; and
(2) They protect lessees' rights by ensuring they retain their leases
without the risk of expiration while the lease is in suspension. The
BLM proposes to revise this section by removing requirements that are
not mandated by the MLA.
The proposed rule would remove the existing paragraph (c), which
currently states the BLM will not approve a suspension application for
a lease in circumstances where an APD on the subject lease is filed
less than 90 calendar days before the expiration date of the lease. The
BLM's rationale for removing paragraph (c) is that lessees and
operating rights owners are entitled to the full primary term of the
lease but are also responsible for timely filing required plans and
necessary applications. This change would provide the BLM with the
flexibility to consider suspensions for operators who have been
diligently working with the BLM and other State and Federal agencies
but are unable to get the APD submitted within this timeframe due to
reasons beyond their control.
This change would benefit the public by ensuring that valuable oil
and gas leases are not prematurely cancelled due to administrative
delays or unforeseen issues, thereby allowing for continued development
of domestic energy resources. By enabling the BLM to grant suspensions
in appropriate cases, the proposed rule would foster a more efficient
leasing process that could adapt to the realities of the industry. This
increased flexibility would not only help to maximize the use of
Federal lands for energy production but would also contribute to
enhancing domestic energy supply, ultimately benefiting consumers and
promoting energy independence. In a time when the demand for domestic
energy is critical, this rule would support timely development while
ensuring that operators could fulfill their obligations without being
hindered by rigid timelines.
The proposed rule would then redesignate existing paragraph (d) to
paragraph (c) and remove the phrase ``of operations and production''
from the
[[Page 38106]]
first sentence. Removing this phrase would make it clear that this
section applies to both types of suspensions allowed under sections 17
and 39 of the MLA. ``Section 39'' suspensions of the MLA suspend both
operations and production, 30 U.S.C. 209. ``Section 17'' suspensions of
the MLA include a suspension of operations or a suspension of
production, 30 U.S.C. 226(i). The BLM proposes to remove this phrase
because the criteria in the existing paragraph (d) applies to all types
of suspensions. The proposed rule would also remove the second and
third sentences of existing paragraph (d), which currently state that
approved suspensions will not exceed 1 year, unless, if circumstances
warrant, all operating rights owners, or the operator on behalf of the
operating rights owners, submit a request to extend the suspension
prior to the end of the suspension. The BLM is also proposing to remove
existing paragraph (e), which states that BLM-directed suspensions may
exceed 1 year. In keeping with current E.O.s and Presidential
Memoranda, BLM is proposing to remove existing provisions that are not
clearly grounded in statutory authority. The proposed changes would
revise this section so that suspensions, when authorized, would remain
in effect until the circumstances warranting the suspension no longer
exist. This change would enable the BLM to grant suspensions for
appropriate periods related to the reason for the suspension. This
increased flexibility would not only help maximize the use of Federal
lands for energy production but would also contribute to enhancing
domestic energy supply, ultimately benefiting consumers and promoting
energy independence. In a time when the demand for domestic energy is
critical, this proposed rule would support timely development while
ensuring that operators can fulfill their obligations without being
hindered by rigid timelines.
The proposed rule would redesignate paragraph (f) to become
paragraph (d) due to the proposed changes discussed above.
The proposed rule would add a new paragraph (e) stating that the
BLM may grant a suspension of operations and production or a suspension
of operations at any time in a lease's term but may only grant a
suspension of production after a lease begins production. The BLM
proposes this change to allow additional flexibility for granting
warranted suspensions. Section 17(i) of the MLA (30 U.S.C. 226(i))
stipulates that no lease issued under this section shall expire because
operations or production is suspended under any order, or with the
consent, of the Secretary. The Department's implementing regulations at
43 CFR 3103.42(a) specify that a suspension of operations only or a
suspension of production only may be directed or consented to by the
authorized officer in cases where the lessee is prevented from
operating on the lease or producing from the lease, despite the
exercise of due care and diligence, by reason of force majeure, that
is, by matters beyond the reasonable control of the lessee.
The IBLA decision, Savoy Energy, LP, 178 IBLA 313 (2010), adopted a
narrow construction of the suspension of operations provision by
stating that it applies only to leases that have a well capable of
production, and it does not apply to leases on which there has been no
drilling. The holding of Savoy Energy presents a challenge to the BLM's
effective management of oil and gas leases where lessees are unable to
commence operations due to circumstances beyond their reasonable
control. Examples of these circumstances include, but are not limited
to, an avalanche, a pandemic, waiting on a State-required permit,
weather conditions, and litigation. The holding of Savoy Energy does
not align with provisions of section 17(i) of the MLA, the regulations
at 43 CFR 3103.42(a), or ``Oil & Gas Lease Suspension,'' M-36953, 92
I.D. 293, 299-301 (1985). Therefore, the BLM is proposing to add new
paragraph (e) that does clearly comply with section 17(i) of the MLA.
19. Section-by-Section Discussion for Changes to 43 CFR Subpart 3181
The proposed rule would not change or revise the existing 43 CFR
subpart 3181 heading.
Section 3181.1 Preliminary Consideration of Unit Agreement
The proposed rule would revise this section to remove the reference
to appendix A as currently found under 43 CFR subpart 3186, as the rule
proposes to remove the model forms from the CFR and instead maintain
the forms on the BLM's forms web page at https://www.blm.gov/services/electronic-forms. As discussed below, this rule proposes to remove 43
CFR subpart 3186.
20. Section-by-Section Discussion for Changes to 43 CFR Subpart 3183
The proposed rule would not change or revise the existing 43 CFR
3183.4 heading. The existing term ``shall'' would be replaced with the
words ``must,'' ``will,'' or ``may,'' as appropriate, to reduce
confusion.
Section 3183.4 Approval of Executed Agreement
The proposed rule would revise this section to remove the reference
to appendix A as currently found under 43 CFR subpart 3186, as the rule
proposes to move the model forms to the BLM's forms web page. In
addition, the proposed rule would correct the regulatory citation to 43
CFR subpart 3107.
21. Section-by-Section Discussion for Changes to 43 CFR Subpart 3186
The proposed rule would remove subpart 3186 to remove all of the
appendices in the existing subpart 3186 regulations in their entirety,
and move them to the BLM's forms web page (https://www.blm.gov/services/electronic-forms) as these are examples of a model onshore
unit agreement (appendix A), with an example Exhibit A (appendix B), an
example Exhibit B (appendix C), an example model designation of
successor unit operator (appendix D), and an example model change in
unit operator (appendix E). Removing these model forms from the
regulations would allow the BLM to keep these examples up to date in a
timely manner and is consistent with the policy direction in recent
E.O.s to remove unnecessary requirements. These are form documents and
should not be in the CFR.
VI. Procedural Matters
A. Regulatory Planning and Review (E.O. 12866, E.O. 13563)
E.O. 12866 provides that the Office of Information and Regulatory
Affairs (OIRA) within the OMB will review all significant rules. The
OIRA has determined that this proposed rule is significant.
E.O. 13563 reaffirms the principles of E.O. 12866 while calling for
improvements in the Nation's regulatory system to promote
predictability, to reduce uncertainty, and to use the best, most
innovative, and least burdensome tools for achieving regulatory ends.
The E.O. directs agencies to consider regulatory approaches that reduce
burdens and maintain flexibility and freedom of choice for the public
where these approaches are relevant, feasible, and consistent with
regulatory objectives. E.O. 13563 emphasizes further that regulations
must be based on the best available science and that the rulemaking
process must allow for public participation and an open exchange of
ideas. We have developed this rule in a manner consistent with these
requirements.
[[Page 38107]]
This proposed rule would revise the BLM's current rules governing
oil and gas leasing, which are contained in 43 CFR parts 3000, 3100,
3110, 3120, 3130, 3140, 3150, 3160, and 3180. The BLM developed this
proposed rule in a manner consistent with the requirements in E.O.
12866, Regulatory Planning and Review, and E.O. 13563, Improving
Regulation and Regulatory Review. Consistent with these Executive
Orders, the BLM evaluated the potential economic impact of the proposed
rule, including non-monetized effects. The BLM determined that the
proposed rule would generate net cost savings of $6.13 to $12.2 million
per year (in 2025 dollars). Further, the proposed rule would affect
transfer payments totaling $3.1 million per year (in 2025 dollars).
Table 2 shows the estimated Net Present Value (NPV) of the cost savings
and transfer payments over a 20-year period of analysis (in 2025
dollars).
The BLM determined that most proposed changes in the rule are
administrative and do not result in direct environmental effects.
However, reducing the minimum bonding amounts could delay reclamation
of orphaned wells by an estimated 1,440 to 2,400 days annually, leading
to nonmonetized environmental costs such as postponed improvements in
soil stability, water quality, and habitat recovery. The BLM reflects
these non-monetized costs in Table 2.
[GRAPHIC] [TIFF OMITTED] TP24JN26.010
For more detailed information, refer to the regulatory impact
analysis (RIA) prepared for this proposed rule. The RIA has been posted
in the docket for the proposed rule on the Federal eRulemaking Portal:
https://www.regulations.gov. In the Searchbox, enter ``BLM-2025-0037'',
click the ``Search'' button, open the Docket Folder, and look under
Supporting Documents.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) (RFA)
requires that Federal agencies prepare a regulatory flexibility
analysis for rules subject to the notice-and-comment rulemaking
requirements under the Administrative Procedure Act (5 U.S.C. 500 et
seq.) if the rule would have a significant economic impact, whether
detrimental or beneficial, on a substantial number of small entities.
Refer to 5 U.S.C. 601-612. Congress enacted the RFA to ensure that
government regulations do not unnecessarily or disproportionately
burden small entities. Small entities include small businesses, small
governmental jurisdictions, and small not-for-profit enterprises.
The BLM reviewed the Small Business Administration's (SBA) size
standards for small businesses and the number of entities fitting those
size standards as reported by the U.S. Census Bureau in the Economic
Census. The number of small businesses in States where there are
existing Federal oil and gas leases is estimated to be 5,107 for the
Crude Petroleum Extraction and Natural Gas Extraction industries (North
American Industry Classification System (NAICS) codes 211120 and
211130, respectively). The BLM concludes that the vast majority of
entities operating in the relevant sectors are small businesses as
defined by the SBA.
The BLM estimates that the per-entity economic impact of the
proposed rule would be less than 1 percent of the annual receipts for
small businesses of any size. Because the final rule will not have a
``significant economic impact on a substantial number of small
entities,'' an initial regulatory flexibility analysis is not required.
Please refer to the RIA for more information.
Therefore, the Secretary of the Interior certifies under 5 U.S.C.
605(b) that this proposed rule would not have a significant economic
impact on a substantial number of small entities.
C. Unleashing Prosperity Through Deregulation (E.O. 14192)
DOI has examined this proposed rulemaking and has tentatively
determined that it is consistent with the policies and directives
outlined in E.O. 14192, ``Unleashing Prosperity Through Deregulation.''
This proposed rule, if finalized as proposed, would promote prudent
financial management and alleviate unnecessary regulatory burdens.
Therefore, it is expected to be an E.O. 14192 deregulatory action, as
the proposed rule is expected to result in present value cost savings
of $65 to $129 million (2025$) discounted at 7%, primarily from reduced
bonding and lease application costs for oil and gas operators.
D. Unfunded Mandates Reform Act (UMRA)
This proposed rule would not impose an unfunded mandate on State,
local, or Tribal governments, or the private sector of more than $100
million per year. While the proposed rule includes several changes to
the Federal oil and gas leasing program, the only provision anticipated
to affect the financial resources flowing to States is the return of
noncompetitive leasing. As described in the regulatory impact analysis,
this change is expected to result in a modest
[[Page 38108]]
reduction in bonus bid revenue, approximately $955,000 annually, due to
a shift in how certain parcels are leased.
Because States receive approximately 50 percent of bonus bid
revenues from Federal lease sales, this reduction would result in a
proportional decrease in revenue shared with States. However, this
impact is limited in scale and does not reflect a change in royalty
payments, which are based on production. The return of noncompetitive
leasing is not expected to affect royalty revenues, as only 1 percent
of noncompetitive leases issued between 2003 and 2019 began producing
within their primary term. These leases likely would have been issued
competitively in the absence of a noncompetitive option.
Accordingly, the financial impact on States is expected to be
minimal and limited solely to the reduction in bonus bid revenue
associated with noncompetitive leasing. In addition, the proposed rule
would not have a significant or unique effect on State, local, or
Tribal governments or the private sector. The proposed rule contains no
requirements that would apply to State, local, or Tribal governments.
The proposed rule would revise requirements that would otherwise apply
to the private sector participation in a voluntary Federal program. The
costs that the proposed rule would impose on the private sector are
below the monetary threshold established at 2 U.S.C. 1532(a). A
statement containing the information required by the Unfunded Mandates
Reform Act (UMRA) (2 U.S.C. 1531 et seq.) is therefore not required for
the proposed rule. This proposed rule is also not subject to the
requirements of section 203 of UMRA because it contains no regulatory
requirements that might significantly or uniquely affect small
governments, apply to such governments, or impose obligations upon
them.
E. Governmental Actions and Interference With Constitutionally
Protected Property Right--Takings (E.O. 12630)
This proposed rule would not cause a taking of private property or
otherwise have takings implications under E.O. 12630. Therefore, a
takings implication assessment is not required. The proposed rule would
update the BLM's current rules governing oil and gas leasing, which are
contained in 43 CFR parts 3100 through 3180. The proposed provisions in
this rule would not cause a taking of private property because the
operations that would be subject to these rules are already subject to
existing lease terms, which expressly require that subsequent lease
activities must be conducted in compliance with subsequently adopted
Federal laws and regulations.
This proposed rule conforms to the terms of the existing leases and
applicable statutes and, as such, the rule is not a government action
capable of interfering with constitutionally protected property rights.
Therefore, the BLM has determined that the rule would not cause a
taking of private property or require further discussion of takings
implications under E.O. 12630.
F. Federalism (E.O. 13132)
Under the criteria in section 1 of E.O. 13132, this proposed rule
does not have sufficient federalism implications to warrant the
preparation of a federalism summary impact statement. A federalism
impact statement is not required.
The proposed rule would not have a substantial direct effect on the
States, on the relationship between the Federal Government and the
States, or on the distribution of power and responsibilities among the
levels of government. It would not apply to States or local governments
or State or local governmental entities. The rule would affect the
relationship between operators, lessees, and the BLM, but it would not
directly impact the States. Therefore, in accordance with E.O. 13132,
the BLM has determined that this proposed rule would not have
sufficient federalism implications to warrant preparation of a
federalism assessment.
G. Civil Justice Reform (E.O. 12988)
This proposed rule complies with the requirements of E.O. 12988.
More specifically, this proposed rule meets the criteria of section
3(a), which requires agencies to review all regulations to eliminate
errors and ambiguity and to write all regulations to minimize
litigation. This proposed rule also meets the criteria of section
3(b)(2), which requires agencies to write all regulations in clear
language with clear legal standards.
H. Consultation and Coordination With Indian Tribal Governments (E.O.
13175 and Departmental Policy)
The Department strives to strengthen its government-to-government
relationship with Indian Tribes through a commitment to consultation
with Indian Tribes and recognition of their right to self-governance
and Tribal sovereignty.
The BLM evaluated this proposed rule under the Department's
consultation policy and under the criteria in E.O. 13175 to identify
possible effects of the rule on federally recognized Indian Tribes.
Since the proposed changes to leasing only apply to Federal lands, the
proposed rule will not impact the leasing of Indian minerals.
The BLM is providing an opportunity for Tribal consultation. The
Tribes may request individual government-to-government consultation
regarding the proposed rule throughout the rulemaking process.
I. Paperwork Reduction Act
The Paperwork Reduction Act (PRA) (44 U.S.C. 3501-3521) generally
provides that an agency may not conduct or sponsor and, not
withstanding any other provision of law, a person is not required to
respond to, a collection of information, unless it displays a currently
valid OMB control number. Collections of information include any
request or requirement that persons obtain, maintain, retain, or report
information to an agency, or disclose information to a third party or
to the public (44 U.S.C. 3502(3) and 5 CFR 1320.3(c)).
This proposed rule contains information-collection requirements
that are subject to review by OMB under the PRA. OMB has approved the
existing information collection requirements contained in the
regulations that would be affected by this proposed rule under the OMB
Control Number 1004-0185 (Sec. Sec. 3100, 3103.41, 3106, 3120, and
subpart 3162).
See the Section-by Section Discussion for further information on
the proposed changes to each section of this proposed rule; including
proposed changes to sections that contain information collection
requirements. The information collection requirements are also
discussed in detail in the information collection request submitted to
OMB in association with this proposed rule.
Proposed Changes Impacting OMB Control Number 1004-0185
Currently, there are 16,340 annual responses, 29,410 annual burden
hours, and $3,766,184 annual non-hour cost burdens inventoried under
OMB Control Number 1004-0185. The BLM projects that the new estimated
burdens under this OMB control number would be 14,956 annual responses,
18,359 annual burden hours and $1,793,788 annual non-hour cost burdens.
The proposed rule would rescind and revise information collection
requirements and move other information collection requirements to new
sections within the
[[Page 38109]]
proposed rule. These proposed changes are summarized as follows.
1. Rescinded Information Collection Requirements
43 CFR 3100.31(b)--Notice of Option Statement. The removal of this
information collection requirement would result in the reduction of 1
annual response and 1 annual burden hour.
43 CFR 3100.33--Option Statement. The removal of this information
collection requirement would result in the reduction of 2 annual
response and 2 annual burden hours.
The BLM proposes to rescind the regulatory sections covering
options because industry has never filed options with the BLM. The BLM
has not previously received option statements from industry and cannot
prohibit options. However, the BLM would continue to accept option
statements for the lease file, which is a public record.
2. Revised Information Collection Requirements
43 CFR 3120.43 and 3000.120--Protest fee per page after 50 pages.
Proposed revisions to 43 CFR 3000.120 and 3120.43 would introduce a
$1.00 per page fee for protest filings that exceed 50 pages in length,
including exhibits. This fee is proposed to discourage overly lengthy
and administratively burdensome protest filings. This proposed revision
is estimated to result in an additional $2,604 annual non-hour cost
burdens to protestors.
The proposed rule would also move 43 CFR 3120.13 Protests to 43 CFR
3120.43 under the discussion of the Notice of Competitive Lease Sale to
consolidate topics and enhance readability since protests are filed
after the BLM publishes the Notice of Competitive Lease Sale.
43 CFR 3120.41--Expression of Interest $5 Per Acre Fee. Section
50101(d)(3) the One Big Beautiful Bill Act (30 U.S.C. 226) removed the
EOI fee. This revision would reduce annual non-hour cost burden by
$1,975,000.
3. Moved Information Collection Requirements
43 CFR 3101.24(a)--Proof of acreage reduction and Excess acreage
petition. These information collection requirements would be moved from
43 CFR 3101.24(a) to 43 CFR 3102.54 and the information collection
requirements would remain substantively unchanged from the current
requirements.
3. Summary
The net burden changes that would result from the revised and
rescinded information collection requirements as contained in the
proposed rule are summarized in the below table:
BILLING CODE 4331-29-P
[[Page 38110]]
[GRAPHIC] [TIFF OMITTED] TP24JN26.011
BILLING CODE 4331-29-C
The new estimated total burdens for OMB Control Number 1004-0185
are as follows.
Title of Collection: Onshore Oil and Gas Leasing and Drainage
Protection (43 CFR part 3100).
OMB Control Number: 1004-0185.
Form Numbers: 3000-3 and 3000-3a (OMB No. 1004-0034).
Type of Review: Revision of a currently approved collection.
Respondents/Affected Public: Holders of onshore oil and gas lease
and public lands and Indian lands (except on the Osage Reservation),
operators of such leases, and holders of operating rights on such
leases.
Respondent's Obligation: Required to Obtain or Retain a Benefit.
Frequency of Collection: On occasion.
Estimated Completion Time per Response: Varies from 30 minutes to
24 hours, depending on activity.
Number of Respondents: 14,956.
Annual Responses: 14,956.
Annual Burden Hours: 18,359.
Annual Burden Cost: $1,793,788.
The complete information collection request is available at
www.reginfo.gov/public/do/PRAMain. You can find this information
collection by selecting
[[Page 38111]]
``Currently under Review--Open for Public Comments'' or by using the
search function. If you want to comment on the information-collection
requirements of this proposed rule, please send your comments and
suggestions on this information-collection by the date indicated in the
DATES and ADDRESSES sections as previously described.
J. National Environmental Policy Act
A detailed environmental analysis under NEPA is not required
because the proposed rule will be covered by a categorical exclusion
(see 43 CFR 46.205). This proposed rule meets the criteria set forth at
43 CFR 46.210(i) for a Departmental categorical exclusion in that this
proposed rule is ``of an administrative, financial, legal, technical,
or procedural nature.'' We have also determined that the proposed rule
does not involve any of the extraordinary circumstances listed in 43
CFR 46.215 that would require further analysis under NEPA.
K. Actions Concerning Regulations That Significantly Affect Energy
Supply, Distribution, or Use (E.O. Order 13211)
Under E.O. 13211, agencies are required to prepare and submit to
OMB a Statement of Energy Effects for significant energy actions. This
statement is to include a detailed statement of ``any adverse effects
on energy supply, distribution, or use (including a shortfall in
supply, price increases, and increase use of foreign supplies)'' for
the action and reasonable alternatives and their effects.
Section 4(b) of E.O. 13211 defines a ``significant energy action''
as ``any action by an agency (normally published in the Federal
Register) that promulgates or is expected to lead to the promulgation
of a final rule or regulation, including notices of inquiry, advance
notices of proposed rulemaking, and notices of proposed rulemaking:
(1)(i) that is a significant regulatory action under E.O. 12866 or any
successor order, and (ii) is likely to have a significant adverse
effect on the supply, distribution, or use of energy; or (2) that is
designated by OIRA as a significant energy action.''
Any incremental changes in oil or gas production estimated to
result from the rule's enactment would constitute a small fraction of
total U.S. gas production, and any potential and temporary deferred
production of oil would likewise constitute a small fraction of total
U.S. oil production. For these reasons, we do not expect that the
proposed rule would significantly impact the supply, distribution, or
use of energy. As such, the rulemaking is not a ``significant energy
action'' as defined in E.O. 13211.
L. Clarity of this Regulation (E.O.s 12866, 12988, and 13563)
We are required by E.O.s 12866 (section 1(b)(12)), 12988 (section
3(b)(1)(B)), and 13563 (section 1(a)), and by the Presidential
memorandum of June 1, 1988, to write all rules in plain language. This
means that each rule must:
(a) Be logically organized;
(b) Use the active voice to address readers directly;
(c) Use common, everyday words and clear language rather than
jargon;
(d) Be divided into short sections and sentences; and
(e) Use lists and tables wherever possible.
If you feel that we have not met these requirements, send us
comments by one of the methods listed in the ADDRESSES section. To
better help the BLM revise the proposed rule, your comments should be
as specific as possible. For example, you should tell us the numbers of
the sections or paragraphs that you find unclear, which sections or
sentences are too long, the sections where you feel lists or tables
would be useful, etc.
M. Ensuring Lawful Governance (E.O. 14219)
E.O. 14219 requires agencies to prioritize the executive branch's
limited enforcement resources on regulations that are authorized by
constitutional Federal statutes. In accordance with this directive, the
BLM conducted a review of its regulations and concluded that the
proposed changes to the oil and gas leasing regulations comply with the
MLA and do not undermine the national interest.
N. Zero-Based Regulatory Budgeting (E.O. 14270)
E.O. 14270 requires the BLM to incorporate a sunset provision into
regulations promulgated under the Mining Act of 1872, the FLPMA, and
the Energy Policy Act of 2005. While the BLM's oil and gas leasing
regulations reference FLPMA for land use planning decisions, these
regulations are primarily established under the MLA and its authority
for promulgating regulations. As a result, the BLM did not include a
sunset date for its oil and gas leasing regulations and proposes to
remove any reference to FLPMA from these parts. The BLM recognizes that
the BLM promulgated the fixed filing fees under 43 CFR 3000.120 based
on FLPMA and is requesting comments on the costs and benefits of the
fixed filing fees. If the BLM sunsets the fixed filing fees, the BLM
expects it will need additional appropriated funds from Congress to
process these actions or processing these actions will lag behind other
actions with sufficient funding. The BLM invites comments on whether
any specific leasing sections should include a sunset date. Please
specify the regulatory sections and provide your reasons for including
a sunset date.
Authors
The principal authors of this final rule include: Peter Cowan,
Senior Mineral Leasing Specialist; Jennifer Spencer, Mineral Leasing
Specialist; William Lambert, Petroleum Engineer in BLM Headquarters;
Natalie Eades, Attorney Advisor in DOI Office of the Solicitor.
Technical support provided by: Scott Rickard, Economist; Janna
Simonsen, Senior Natural Resource Specialist; Faith Bremner, Regulatory
Analyst; and Darrin King, Senior Regulatory Analysts in BLM
Headquarters.
43 CFR Chapter II
List of Subjects
43 CFR Part 3000
Public lands-mineral resources, Reporting and recordkeeping
requirements.
43 CFR Part 3100
Government contracts, Mineral royalties, Oil and gas reserves,
Public lands-mineral resources, Reporting and recordkeeping
requirements, Surety bonds.
43 CFR Part 3110
Government contracts, Oil and gas exploration, Public lands-mineral
resources, Reporting and recordkeeping requirements.
43 CFR Part 3120
Government contracts, Oil and gas exploration, Public lands-mineral
resources, Reporting and recordkeeping requirements.
43 CFR Part 3130
Alaska, Government contracts, Mineral royalties, Oil and gas
exploration, Oil and gas reserves, Public lands-mineral resources,
Reporting and recordkeeping requirements, Surety bonds.
43 CFR Part 3140
Government contracts, Hydrocarbons, Mineral royalties, Oil and gas
exploration, Public lands-mineral resources, Reporting and
recordkeeping requirements.
[[Page 38112]]
43 CFR Part 3150
Administrative practice and procedure, Alaska, Oil and gas
exploration, Public lands-mineral resources, Reporting and
recordkeeping requirements, Surety bonds.
43 CFR Part 3160
Administrative practice and procedure, Government contracts,
Indians-lands, Mineral royalties, Oil and gas exploration, Penalties,
Public lands-mineral resources, Reporting and recordkeeping
requirements.
43 CFR Part 3180
Government contracts, Mineral royalties, Oil and gas exploration,
Public lands-mineral resources, Reporting and recordkeeping
requirements.
For the reasons set out in the preamble, the Bureau of Land
Management proposes to amend 43 CFR parts 3000, 3100, 3110, 3120, 3130,
3140, 3150, 3160, and 3180 as follows:
PART 3000--MINERALS MANAGEMENT: GENERAL
0
1. The authority citation for part 3000 continues to read as follows:
Authority: 16 U.S.C. 3101 et seq.; 30 U.S.C. 181 et seq., 301-
306, 351-359, and 601 et seq.; 31 U.S.C. 9701; 40 U.S.C. 471 et
seq.; 42 U.S.C. 6508; 43 U.S.C. 1701 et seq.; and Pub. L. 97-35, 95
Stat. 357.
0
2. Revise Sec. 3000.5 to read as follows:
Sec. 3000.5 Definitions.
As used in 43 CFR Subchapter C, Minerals Management (3000), the
term:
Interest means ownership in a lease, or prospective lease, of all
or a portion of the record title, working interest, operating rights,
overriding royalty, payments out of production, carried interests, net
profit share or similar instrument for participation in the benefit
derived from a lease. An interest may be created by direct or indirect
ownership, including options. Interest does not mean stock ownership,
stockholding or stock control in an application, offer, competitive bid
or lease, except for purposes of acreage limitations and qualifications
of lessees in 43 CFR subpart 3102.
Oil means all nongaseous hydrocarbon substances other than those
substances leasable as coal, oil shale or gilsonite (including all
vein-type solid hydrocarbons).
ONRR means the Office of Natural Resources Revenue.
Party in interest means a party who is or will be vested with any
interest under the lease as defined in this section. No one is a sole
party in interest with respect to an application, offer, competitive
bid or lease in which any other party has an interest.
Person means any individual, firm, corporation, association,
partnership, consortium, or joint venture.
Proper BLM office means the Bureau of Land Management state office
having jurisdiction over the lands subject to the regulations in parts
3000 and 3100.
(See 43 CFR 1821.10 for office location and area of jurisdiction of
Bureau of Land Management offices.)
Properly filed means a document or form submitted to the proper BLM
office with all necessary information and payments, as provided in 43
CFR subpart 1822.
Public domain lands means lands, including mineral estates, which
never left the ownership of the United States, lands which were
obtained by the United States in exchange for public domain lands,
lands which have reverted to the ownership of the United States through
the operation of the public land laws and other lands specifically
identified by the Congress as part of the public domain.
Secretary means the Secretary of the Interior.
Surface managing agency means any Federal agency, other than the
BLM, having management responsibility for the surface resources that
overlay federally owned minerals.
Sec. 3000.10 [Removed]
0
3. Remove Sec. 3000.10.
0
4. Amend Sec. 3000.100 by revising paragraph (d) to read as follows:
Sec. 3000.100 Fees in general.
* * * * *
(d) Timing of fee applicability. (1) For a document that the BLM
received before [EFFECTIVE DATE OF THE FINAL RULE], the BLM will not
charge a fixed fee or a case-by-case fee under this subchapter for
processing that document, except for fees applicable under then-
existing regulations.
(2) For a document that the BLM receives on or after [EFFECTIVE
DATE OF THE FINAL RULE], the applicant must include the required fixed
fees with the documents filed, as provided in Sec. 3000.120(a) of this
chapter, and the applicant is subject to case-by-case processing fees
as provided in Sec. 3000.110 and under other provisions of this
chapter.
0
5. Revise Sec. 3000.120 to read as follows:
Sec. 3000.120 Fee schedule for fixed fees.
(a) The table in this section lists the services that require
payment of fixed fees to the BLM. The fixed fee amounts are posted on
the BLM website (https://www.blm.gov) and published in a Federal
Register notice. These fees are nonrefundable and must be included with
documents filed under this chapter. Fees will be adjusted annually
according to the change in the Implicit Price Deflator for Gross
Domestic Product since the previous adjustment and will subsequently be
posted on the BLM website (https://www.blm.gov) and announced annually
in the Federal Register before October 1 each year. Revised fees are
effective each year on October 1.
Table 1 to Paragraph (a)--Processing and Filing Fee Table
------------------------------------------------------------------------
Document or Action
-------------------------------------------------------------------------
Oil & Gas (parts 3100, 3120, 3130, 3150, 3160, and 3180):
Assignment and transfer of record title or operating rights
Designation of successor operator for all Federal agreements, except
for contracted unit agreements that contain no Federal lands
Final application for Federal unit agreement approval, Federal unit
agreement expansion, and Federal subsurface gas storage application
Geophysical exploration permit application--all States
Lease application
Lease consolidation
Lease reinstatement, Class I
Leasing and compensatory royalty agreements under right-of-way
pursuant to subpart 3109
Name change; corporate merger; sheriff's deed; dissolution of
corporation, partnership, or trust; or transfer to heir/devisee
Overriding royalty transfer, payment out of production
Protest fee per page after 50 pages, including exhibits
Onshore Oil and Gas Operations and Production (parts 3160, 3170):
Application for Permit to Drill
[[Page 38113]]
Geothermal (part 3200):
Assignment and transfer of record title or operating rights
Assignment or transfer of site license
Competitive lease application
Lease consolidation
Lease reinstatement
Name change, corporate merger or transfer to heir/devisee
Nomination of lands
plus per acre nomination fee
Noncompetitive lease application
Site license application
Coal (parts 3400, 3470):
Exploration license application
Lease or lease interest transfer
License to mine application
Leasing of Solid Minerals Other Than Coal and Oil Shale (parts 3500,
3580):
Applications other than those listed below
Assignment, sublease, or transfer of operating rights
Extension of prospecting permit
Lease modification or fringe acreage lease
Lease renewal
Prospecting permit application amendment
Renewal of existing sand and gravel lease in Nevada
Shasta and Trinity hardrock mineral lease
Transfer of overriding royalty
Use permit
Public Law 359; Mining in Powersite Withdrawals: General (part 3730):
Notice of protest of placer mining operations
Mining Law Administration (parts 3800, 3810, 3830, 3860, 3870):
Adverse claim
Amendment of location
Application to open lands to location
Deferment of assessment work
Mineral patent adjudication
Notice of location *
Protest
Recording a notice of intent to locate mining claims on Stockraising
Homestead Act lands
Recording an annual FLPMA filing
Transfer of mining claim/site
Oil Shale Management (parts 3900, 3910, 3930):
Application for assignment or sublease of record title or overriding
royalty
Exploration license application
------------------------------------------------------------------------
* To record a mining claim or site location, this processing fee along
with the initial maintenance fee and the one-time location fee
required by statute 43 CFR part 3833 must be paid.
(b) The amount of a fixed fee is not subject to appeal to the
Interior Board of Land Appeals pursuant to 43 CFR part 4, subpart E.
PART 3100--OIL AND GAS LEASING
0
6. Revise the authority citation for part 3100 to read as follows:
Authority: 25 U.S.C. 396d and 2107; 30 U.S.C. 189, 306, 359, and
1751; and 42 U.S.C. 15801.
0
7. Revise Sec. 3100.5 to read as follows:
Sec. 3100.5 Definitions.
As used in parts 3100, 3110, and 3120, the term:
Acreage for which expressions of interest (EOI) have been submitted
means acreage that is identified in an EOI received by the BLM, that
has not been proposed for leasing in any pending sale or other EOI
pending BLM disposition, and for which the BLM may lawfully issue an
oil and gas lease.
Acres offered for lease means all acres that the BLM has offered
for oil and gas lease, regardless of whether those acres are acreage
for which expressions of interest have been submitted.
Actual drilling operations includes not only the physical drilling
of a well, but also the testing, completing or equipping of such well
for production.
Assignment means a transfer of all or a portion of a lessee's
record title interest in a lease.
Available lands means those lands that have been designated as open
for leasing under a land use plan developed under section 202 of the
Federal Land Policy and Management Act of 1976 (43 U.S.C. 1712) and
that have been nominated for leasing through the submission of an
expression of interest, are subject to drainage in the absence of
leasing, or are otherwise designated as available pursuant to
regulations adopted by the Secretary.
Bid means an amount of remittance offered as partial compensation
for a lease equal to, or in excess of, the national minimum acceptable
bonus bid set by statute or by the Secretary, submitted by a person for
a lease parcel in a competitive lease sale. For leases or compensatory
royalty agreements issued under 43 CFR subpart 3109, ``bid'' means an
amount or percent of royalty or compensatory royalty that the owner or
lessee must pay for the extraction of the oil and gas underlying the
right-of-way.
Competitive auction means an in-person or internet-based bidding
process where leases are offered to the highest bidder.
[[Page 38114]]
Eligible lands means all lands that are subject to leasing under
the Mineral Leasing Act of 1920 and are not excluded from leasing by a
statutory prohibition.
Exception means (as used for lease stipulations) a limited
exemption, for a particular site within the leasehold, to a
stipulation.
Lessee means a person holding record title in a lease issued by the
United States.
Modification means (as used for lease stipulations) a change to the
provisions of a lease stipulation for some or all sites within the
leasehold and either temporarily or for the term of the lease.
National Wildlife Refuge System Lands means lands and water, or
interests therein, administered by the Secretary as wildlife refuges,
areas for the protection and conservation of fish and wildlife that are
threatened with extinction; wildlife management areas; or waterfowl
production areas.
Oil and gas agreement means an agreement between lessees and the
BLM to govern the development and allocation of production for existing
leases and unleased lands, including, but not limited to,
communitization agreements, compensatory royalty agreements, unit
agreements, secondary recovery agreements, and gas storage agreements.
Operating right (working interest) means the interest created out
of a lease authorizing the holder of that right to enter upon the
leased lands to conduct drilling and related operations, including
production of oil or gas from such lands in accordance with the terms
of the lease. Operating rights include the obligation to comply with
the terms of the original lease, as it applies to the area or horizons
for the interest acquired, including the responsibility to plug and
abandon all wells that are no longer capable of producing, reclaim the
lease site, and remedy environmental problems.
Operating rights owner means a person holding operating rights in a
lease issued by the United States. A lessee also may be an operating
rights owner if the operating rights in a lease or portion thereof have
not been severed from record title.
Operator means any person, including, but not limited to, the
lessee or operating rights owner, who has stated in writing to the
authorized officer that it is responsible under the terms and
conditions of the lease for the operations conducted on the leased
lands or a portion thereof.
Primary term of lease subject to section 4(d) of the Act prior to
the revision of 1960 (30 U.S.C. 226-1(d)) means all periods of the life
of the lease prior to its extension by reason of production of oil and
gas in paying quantities; and
Primary term of all other leases means the initial term of the
lease, which is 10 years.
Qualified bidder means any person in compliance with the laws and
regulations governing a bid.
Qualified lessee means any person in compliance with the laws and
regulations governing the BLM issued leases held by that person.
Record title means a lessee's interest in a lease, which includes
the obligation to pay rent and the ability to assign and relinquish the
lease. Record title includes the obligation to comply with the lease
terms, including requirements relating to well operations and
abandonment. Overriding royalty and operating rights are severable from
record title interests.
Responsible bidder means any person who has not defaulted on the
payment of winning bids for BLM-issued oil and gas leases, is capable
of fulfilling the requirements of onshore BLM oil and gas leases and is
in compliance with statutes and regulations applicable to oil and gas
development or with the terms of a BLM-issued oil and gas lease. The
term ``responsible bidder'' does not include persons who bid with no
intention of paying a winning bid or persons who default on a winning
bid.
Responsible lessee means any person who has not defaulted on
previous winning bids, is capable of fulfilling the requirements of
onshore Federal oil and gas leases, and is in compliance with statutes
applicable to oil and gas development or the terms of a BLM-issued oil
and gas lease.
Sublease means a transfer of a non-record title interest in a
lease, i.e., a transfer of operating rights is normally a sublease, and
a sublease also is a subsidiary arrangement between the lessee
(sublessor) and the sublessee, but a sublease does not include a
transfer of a purely financial interest, such as overriding royalty
interest or payment out of production, nor does it affect the
relationship imposed by a lease between the lessee(s) and the United
States.
Transfer means any conveyance of an interest in a lease by
assignment, sublease or otherwise. This definition includes the terms:
Assignment and Sublease.
Unit operator means the person authorized under the unit agreement
approved by the Department of the Interior to conduct operations within
the unit.
Waiver means (as used for lease stipulations) a permanent exemption
from a lease stipulation.
0
8. Revise Sec. 3100.9 to read as follows:
Sec. 3100.9 Information collection.
(a) Authority: 44 U.S.C. 3501-3520.
(b)(1) Purpose. The Paperwork Reduction Act of 1995 generally
provides that an agency may not conduct or sponsor, and notwithstanding
any other provision of law, a person is not required to respond to a
collection of information, unless the collection displays a currently
valid Office of Management and Budget (OMB) Control Number. This part
displays OMB control numbers assigned to information collection
requirements contained in the Department's regulations at 43 CFR part
3100. This section aids in fulfilling the requirements of the Paperwork
Reduction Act to display current OMB Control Numbers for these
information collection requirements. Interested persons should consult
https://www.reginfo.gov for the most current information on these OMB
control numbers; including among other things, the justification for
the information collection requirements, description of likely
respondents, estimated burdens, and current expiration dates.
(2) Table 1 to Paragraph (b)--OMB control number assigned pursuant
to the Paperwork Reduction Act.
------------------------------------------------------------------------
OMB control
43 CFR part or section No.
------------------------------------------------------------------------
Sec. Sec. 3100, 3103.41, 3106, 3120, and Subpart 3162 1004-0185
Sec. Sec. 3135, and 3216............................. 1004-0034
Part 3130............................................... 1004-0196
Subpart 3195............................................ 1004-0179
Sec. 3150............................................. 1004-0162
Sec. Sec. 3160, * 3171, 3176, and 3177............... 1004-0220
Sec. Sec. 3172, 3173, 3174, 3175..................... 1004-0137
[[Page 38115]]
Sec. Sec. 3162.3-1, 3178.5, 3178.7, 3178.8, 3178.9 1004-0211
and Subpart 3179 *.....................................
------------------------------------------------------------------------
* Information collection requirements for onshore oil and gas operations
are generally accounted for under OMB Control Number 1004-0220;
however, information collection requirements pertaining to particular
to waste prevention, production subject to royalties, and resource
conservation are accounted for under OMB Control Number 1004-0211.
0
9. Revise the undesignated center heading following Sec. 3100.22 to
read as follows:
Information
Sec. Sec. 3100.31 through 3100.33 [Removed]
0
10. Remove Sec. Sec. 3100.31 through 3100.33.
Subpart 3101--Issuance of Leases
0
11. Revise Sec. 3101.12 to read as follows:
Sec. 3101.12 Surface use rights.
A lessee will have the right to use so much of the leased lands as
is necessary to explore for, drill for, mine, extract, remove and
dispose of all the leased resource in a leasehold subject to applicable
requirements, including stipulations attached to the lease,
restrictions deriving from nondiscretionary statutes, and such
reasonable mitigation measures as may be required and detailed by the
authorized officer to mitigate adverse impacts to other resource
values, land uses or users, as provided in the approved resource
management plan. Such reasonable mitigation measures may include, but
are not limited to, relocation or modification to siting or design of
facilities, timing of operations, specification of interim and final
reclamation measures, and specification of rates of development and
production in the public interest. At a minimum, mitigation measures
that are consistent with lease rights include, but are not limited to,
requiring relocation of proposed operations by up to 200 meters or
prohibiting new surface disturbing operations for a period of up to 60
days in any lease year.
0
12. Revise the undesignated center heading following Sec. 3101.14 to
read as follows:
Limitation on the Issuance of New Leases
Sec. Sec. 3101.21 through 3101.25 [Removed]
0
13. Remove Sec. Sec. 3101.21 through 3101.25.
0
14. Amend Sec. 3101.52 by revising paragraph (a) to read as follows:
Sec. 3101.52 Action by the Bureau of Land Management.
(a) Where the surface managing agency has consented to leasing with
required stipulations, and the Secretary decides to issue a lease, the
authorized officer will incorporate the stipulations into any lease
issued.
* * * * *
0
15. Add an undesignated center heading following Sec. 3101.53 to read
as follows:
Consultation With State or Charitable Organizations
Subpart 3102--Qualifications of Lessees
0
16. Amend Sec. 3102.20 by revising paragraph (a) to read as follows:
Sec. 3102.20 Non-U.S. Citizens.
(a) Leases or interests therein may be acquired and held by non-
U.S. Citizens only through stock ownership, holding or control in a
present or potential lessee that is incorporated under the laws of the
United States or of any State or territory thereof, and only if the
laws, customs, or regulations of their country do not deny similar or
like privileges to citizens or corporations of the United States. If it
is determined that a country has denied similar or like privileges to
citizens or corporations of the United States, the country will be
placed on a list available from any BLM state office, and citizens from
those countries may not hold an interest in a lease.
* * * * *
0
17. Amend Sec. 3102.40 by revising the introductory paragraph to read
as follows:
Sec. 3102.40 Signature.
Signatures on all applications and BLM forms certify acceptance of
lease terms and stipulations, as well as compliance with the
regulations under 43 CFR part 3100. Refer to Sec. 3102.62 and Sec.
3102.63 for certification of compliance and evidence. The BLM also
accepts electronic signatures and submissions.
* * * * *
0
18. Revise the undesignated center heading following Sec. 3102.40 to
read as follows:
Acreage Limitations
0
19. Revise Sec. 3102.51 to read as follows:
Sec. 3102.51 Public domain lands.
(a) No person may take, hold, own or control more than 246,080
acres of Federal oil and gas leases on public domain lands in any one
State at any one time. No more than 200,000 acres of such acres may be
held under option.
(b) In Alaska, the acreage that can be taken, held, owned, or
controlled is limited to 300,000 acres in the northern leasing district
and 300,000 acres in the southern leasing district, of which no more
than 200,000 acres may be held under option in each of the two leasing
districts. The boundary between the two leasing districts in Alaska
begins at the northeast corner of the Tetlin National Wildlife Refuge
as established by section 302(8) of the Alaska National Interest Lands
Conservation Act, at a point on the boundary between the United States
and Canada, then northwesterly along the northern boundary of the
refuge to the left limit of the Tanana River (63[deg]9'38'' north
latitude, 142[deg]20'52'' west longitude), then westerly along the left
limit to the confluence of the Tanana and Yukon Rivers, and then along
the left limit of the Yukon River from said confluence to its principal
southern mouth.
0
20. Revise Sec. 3102.52 to read as follows:
Sec. 3102.52 Acquired lands.
Separate from, and in addition to, the limitation for public domain
lands, no person may take, hold, own or control more than 246,080 acres
of Federal oil and gas leases on acquired lands in any one State at any
one time. No more than 200,000 acres of such acres may be held under
option. Where the United States owns only a fractional interest in the
mineral resources of the lands involved in a lease, only that part
owned by the United States will be charged as acreage holdings. The
acreage embraced in a future interest lease will not be charged as
acreage holdings until the lease for the future interest becomes
effective.
0
21. Revise Sec. 3102.53 to read as follows:
Sec. 3102.53 Excepted acreage.
(a) The following acreage will not be included in computing acreage
limitations:
(1) Acreage under any lease any portion of which is committed to
any federally approved oil and gas agreement;
(2) Acreage under any lease for which royalty (including
compensatory royalty
[[Page 38116]]
or royalty in-kind) was paid in the preceding calendar year; and
(3) Acreage under leases subject to an operating, drilling or
development contract approved by the Secretary, as provided in 43 CFR
subpart 3105.
(b) Acreage subject to offers to lease, overriding royalties and
payments out of production will not be included in computing acreage
limitations.
0
22. Add Sec. 3102.54 to read as follows:
Sec. 3102.54 Excess acreage.
(a) Where, as the result of the termination or contraction of an
oil and gas agreement or the elimination of a lease from an operating,
drilling, or development contract, a party holds or controls excess
accountable acreage, that party will have 90 calendar days from the
date of termination, contraction or elimination, to reduce the holdings
to the prescribed limitation and to file proof of the reduction in the
proper BLM office. Where, as a result of a merger or the purchase of
the controlling interest in a corporation, a party acquired acreage in
excess of the amount permitted, the party holding the excess acreage
will have 180 calendar days from the date of the merger or purchase to
divest the excess acreage. If additional time is required to complete
the divestiture of the excess acreage, a petition requesting additional
time, along with a full justification for the additional time, may be
filed with the authorized officer prior to the termination of the 180
days provided herein.
(b) If any person is found to hold accountable acreage in violation
of the provisions of these regulations, lease(s) or interests therein
will be subject to cancellation or forfeiture in their entirety, until
sufficient acreage has been eliminated to comply with the acreage
limitation. Excess acreage or interest will be cancelled in the inverse
order of acquisition.
0
23. Add Sec. 3102.55 to read as follows:
Sec. 3102.55 Computation.
The accountable acreage of a party owning an undivided interest in
a lease will be the party's proportionate part of the total lease
acreage.
0
24. Add Sec. 3102.61 to read as follows:
Sec. 3102.61 Compliance.
Only responsible and qualified bidders and lessees may own, hold,
or control an interest in a lease or prospective lease. Responsible and
qualified bidders and lessees, including corporations, and all members
of associations, including partnerships of all types, must, without
exception, be qualified and in compliance with the Act. Compliance
means that the persons are:
(a) Citizens of the United States (see Sec. 3102.10) or non-U.S.
citizens who own stock in a corporation organized under State or
Federal law (see Sec. 3102.20);
(b) In compliance with the Federal acreage limitations (see
Sec. Sec. 3102.51, 3102.52, 3102.53, and 3102.54);
(c) Not minors (see Sec. 3102.30);
(d) Except for an assignment or transfer under 43 CFR subpart 3106,
in compliance with section 2(a)(2)(A) of the Act (30 U.S.C. 201(2)(A)),
in which case the signature on a bid or lease constitutes evidence of
compliance. A lease issued to any person in violation of this paragraph
(d) will be subject to the cancellation provisions of 43 CFR 3108.30.
(e) Not in violation of the provisions of section 41 of the Act (30
U.S.C. 195); and
(f) In compliance with section 17(g) of the Act (30 U.S.C. 226(g)),
in which case the signature on an offer, lease, assignment, or transfer
constitutes evidence of compliance that the signatory and any
subsidiary, affiliate, or person, association, or corporation
controlled by or under common control with the signatory, as defined in
43 CFR 3400.0-5(rr), has not failed or refused to comply with
reclamation requirements with respect to all leases and operations
thereon in which such person has an interest. A person is noncompliant
with section 17(g) of the Act when they fail to comply with their
reclamation obligations or other standards established under 30 U.S.C.
226 in the time specified in a notice from the BLM. A lease issued, or
an assignment or transfer approved, to any such person in violation of
this paragraph (f) may be subject to the cancellation provisions of 43
CFR 3108.30, notwithstanding any administrative or judicial appeals
that may be pending with respect to violations or penalties assessed
for failure to comply with the prescribed reclamation standards on any
lease holdings. Noncompliance will end upon a determination by the
authorized officer that all required reclamation has been completed and
that the United States has been fully reimbursed for any costs incurred
due to the required reclamation.
(g) In compliance with 43 CFR 3106.10(d) and section 30A of the Act
(30 U.S.C. 187(a)). The authorized officer may accept the signature on
a request for approval of an assignment of less than 640 acres outside
of Alaska (2,560 acres within Alaska) as acceptable certification that
the assignment would further the development of oil and gas, or the
authorized officer may apply the provisions of 43 CFR 3102.63.
(h) Not excluded or disqualified from participating in a
transaction covered by Federal non-procurement debarment and suspension
(2 CFR parts 180 and 1400), unless the Department explicitly approves
an exception for a transaction pursuant to the regulations in those
parts.
0
25. Add Sec. 3102.62 to read as follows:
Sec. 3102.62 Certification of compliance.
Any party(s) seeking to obtain an interest in a lease must certify
that it is in compliance with the Act as set forth in 43 CFR 3102.61. A
corporation or publicly traded association, including a publicly traded
partnership, must certify that constituent members of the corporation,
association or partnership holding or controlling more than 10 percent
of the instruments of ownership of the corporation, association or
partnership are in compliance with the Act. Execution and submission of
a competitive bid form or request for approval of a transfer of record
title or of operating rights (sublease), constitutes certification of
compliance.
0
26. Add Sec. 3102.63 to read as follows:
Sec. 3102.63 Evidence of compliance.
The authorized officer may request at any time further evidence of
compliance and qualification from any party holding or seeking to hold
an interest in a lease. Failure to comply with the request of the
authorized officer will result in adjudication of the action based on
the incomplete submission.
Subpart 3103--Fees, Rentals and Royalty
0
27. Amend Sec. 3103.1 by revising paragraph (a) to read as follows:
Sec. 3103.1 Fiscal terms.
(a) The table in this section shows the fiscal terms, that the BLM
will adjust every 4 years by a final rule. The BLM will adjust the
amounts according to the change in the Implicit Price Deflator for
Gross Domestic Product since the previous adjustment. The fiscal terms
displayed below are effective on June 22, 2024. The BLM will not adjust
the rental nor the minimum bonus bids until after August 16, 2032.
[[Page 38117]]
Table 1 to Paragraph (a)--Fiscal Terms Table
------------------------------------------------------------------------
Oil and gas (parts 3100, 3110,
3120, 3130, 3140) Fiscal term
------------------------------------------------------------------------
Oil and gas, tar sand, and Rental of $3 per acre, or fraction
combined hydrocarbon leases. thereof, per year during the first
2-year period beginning upon lease
issuance, $5 per acre per year, or
fraction thereof, for the following
6 years, and then $15 per acre, or
fraction thereof, per year
thereafter.
Lease reinstatement, Class II..... Rental of $20 per acre, or fraction
thereof.
Combined hydrocarbon leases....... Minimum bonus bids of $25 per acre,
or fraction thereof.
Oil and gas and tar sand leases... Minimum bonus bids of $10 per acre,
or fraction thereof.
------------------------------------------------------------------------
* * * * *
0
28. Revise Sec. 3103.11 to read as follows:
Sec. 3103.11 Form of remittance.
Payments made to the BLM may be made by electronic funds transfer,
credit card, or other digital payment options when specifically
authorized by the BLM. In the case of payments made to the ONRR, such
payments may also be made by electronic funds transfer.
Subpart 3104--Bonds
0
29. Revise the heading of subpart 3104 to read as follows:
Subpart 3104--Performance Bonds.
0
30. Revise Sec. 3104.1 to read as follows:
Sec. 3104.1 Bond amounts.
(a) The table in this section shows the minimum bond amounts, that
the BLM will adjust every 10 years by a final rule. The BLM will adjust
the amounts according to the change in the Implicit Price Deflator for
Gross Domestic Product since the previous adjustment. The minimum bond
amounts displayed below are effective on [INSERT EFFECTIVE DATE OF
FINAL RULE].
Table 1 to Paragraph (a)--Minimum Bond Amount Table
------------------------------------------------------------------------
Minimum
Oil and gas (parts 3100, 3110, 3120, 3130, 3140) bond
amount
------------------------------------------------------------------------
Lease Bond................................................... $10,000
Statewide Bond............................................... 25,000
------------------------------------------------------------------------
(b) The minimum bond amounts are not subject to appeal to the
Interior Board of Land Appeals pursuant to 43 CFR part 4, subpart E.
(c) Failure to increase or replace an existing bond that does not
meet the minimum bond amount or any higher amount set by BLM based on
its policies or 43 CFR 3104.50 may:
(1) Subject all wells covered by the bond(s) to shut down under the
provisions of 43 CFR 3163.1(a)(3);
(2) Subject all leases covered by the bond(s) to cancellation under
the provisions of 43 CFR 3108.30; and
(3) Result in the BLM referring the bond obligor or principal to
the Department's Suspension and Debarment Program under 2 CFR part 1400
to determine if the person will be suspended or debarred from doing
business with the Federal Government.
0
31. Amend Sec. 3104.10 by revising paragraph (c) to read as follows:
Sec. 3104.10 Bond obligations.
* * * * *
(c) Personal bonds must be accompanied by a:
(1) Certificate of deposit issued by a financial institution, the
deposits of which are federally insured, explicitly granting the
Secretary full authority to demand immediate payment in case of default
in the performance of the terms and conditions of the lease. The
certificate will explicitly indicate on its face, or through
assignment, that Secretarial approval is required prior to redemption
of the certificate of deposit by any party;
(2) An electronic funds transfer to the BLM;
(3) Negotiable Treasury securities of the United States of a value
equal to the amount specified in the bond. Negotiable Treasury
securities must be accompanied by a proper conveyance to the Secretary
of full authority to sell such securities in case of default in the
performance of the terms and conditions of a lease; or
(4) Irrevocable letter of credit issued by a financial institution,
for a specific term, identifying the secretary as sole payee with full
authority to demand immediate payment in the case of default in the
performance of the terms and conditions of a lease. Letters of credit
must be subject to the following conditions:
* * * * *
Sec. 3104.90 [Removed]
0
32. Remove Sec. 3104.90.
Subpart 3105--Cooperative Conservation Provisions
0
33. Add Sec. 3105.1 to read as follows:
Sec. 3105.1 Reporting and payment for production.
(a) The lessee or its designee who is a party to a unit or
communitization agreement must report and pay royalties on oil and gas
production for each production month in accordance with the terms of
the proposed allocation of production for the unit or communitization
agreement until the BLM issues a decision on the proposed agreement.
(b) To assist with accurate and complete reporting, applicants for
a Federal participating area, secondary recovery unit, or
communitization agreement must:
(1) Provide a list of wells with existing production that would
contribute production to the area to be included in the proposed
agreement; and
(2) As required under 43 CFR 3160.0-9(c)(1), submit a completion
report for all wells that would contribute production to the area
included in the proposed participating area, secondary recovery unit,
or communitization agreement.
(c) This section does not apply to oil and gas agreements
containing Indian lands.
0
34. Add an undesignated center heading following Sec. 3105.44 to read
as follows:
Lease Consolidation
Subpart 3106--Transfers by Assignment, Sublease, or Otherwise
0
35. Amend Sec. 3106.10 by revising paragraph (e) to read as follows:
Sec. 3106.10 Transfers, general.
* * * * *
(e) An assignment of less than 640 acres outside Alaska or of less
than 2,560 acres within Alaska will be denied unless the assignment
constitutes the entire lease or is demonstrated to further the
[[Page 38118]]
development of oil and gas to the satisfaction of the authorized
officer. Reference 43 CFR 3102.61(g) for certification of compliance.
* * * * *
0
36. Revise Sec. 3106.20 to read as follows:
Sec. 3106.20 Qualifications of assignees and transferees.
Assignees and transferees must comply with the provisions of 43 CFR
subpart 3102.34.
0
37. Remove the undesignated center heading following Sec. 3106.30.
Subpart 3107--Continuation and Extension
0
38. Amend Sec. 3107.10 by revising paragraphs (a) and (b) to read as
follows:
Sec. 3107.10 Extension by drilling.
(a) Any lease on which actual drilling operations were commenced
prior to the end of its primary term and which are being diligently
prosecuted at the end of the primary term or any lease which is part of
an approved oil and gas agreement upon which such drilling takes place,
will be extended for 2 years subject to the rental being timely paid as
required by 43 CFR 3103.22, and subject to the provisions of 43 CFR
3105.23 and 43 CFR part 3180, if applicable. The BLM will not grant a
drilling extension for a lease in its extended term.
(b) Actual drilling operations must be conducted in a manner that a
prudent operator would be expected to make in that particular area,
given the existing knowledge of geologic and other pertinent facts. In
drilling a new well on a lease or for the benefit of a lease under the
terms of an approved agreement, it must be taken to a depth sufficient
to penetrate at least one formation recognized in the area as
potentially productive of oil or gas, or where an existing well is
reentered, it must be taken to a depth sufficient to penetrate at least
one new and deeper formation recognized in the area as potentially
productive of oil or gas. The authorized officer may determine that
further drilling is unwarranted or impracticable.
* * * * *
0
39. Revise Sec. 3107.32 to read as follows:
Sec. 3107.32 Segregation of leases committed in part.
(a) Any lease committed after July 29, 1954, to any unit agreement,
which covers lands within and lands outside the area covered by the
agreement, will be segregated, as of the effective date of commitment
to the unit, into separate leases; one covering the lands committed to
the agreement, the other lands not committed to the agreement. For
unproven areas, such segregation will occur only when the public
interest requirement is satisfied pursuant to 43 CFR 3183.4(b). Upon
satisfaction of the public interest requirement, the BLM will deem the
segregation to have been effective as of the date of commitment of the
lands to the unit.
(b)(1) The segregated lease covering the non-unitized portion of
the lands will continue in force and effect for the term of the lease
or for 2 years from the date of segregation, whichever is longer.
(2) If a lease committed in part is in an extended term because of
production, the segregated, non-producing lease will continue in effect
so long as the producing lease exists and rentals are paid, and so long
thereafter as oil or gas is produced from the committed lease.
Sec. 3107.52 [Removed]
0
40. Remove Sec. 3107.52.
0
41. Add an undesignated center heading after Sec. 3107.53 to read as
follows:
Other Extension Types
0
42. Amend Sec. 3107.60 by revising the introductory paragraph to read
as follows:
Sec. 3107.60 Extension of reinstated leases.
Where a reinstatement of a terminated lease is granted under 43 CFR
3108.22 or 43 CFR 3108.23 and the authorized officer finds that the
reinstatement will not afford the lessee a reasonable opportunity to
continue operations under the lease, the authorized officer may extend
the term of such lease for a period sufficient to give the lessee such
an opportunity. Any extension will be subject to the following
conditions:
* * * * *
0
43. Remove the undesignated center heading following Sec. 3107.60.
Subpart 3108--Relinquishment, Termination, Cancellation
0
44. Remove the undesignated center heading following Sec. 3108.10.
0
45. Amend Sec. 3108.23 by revising paragraph (a) to read as follows:
Sec. 3108.23 Reinstatement at higher rental and royalty rates: Class
II reinstatements.
(a) The authorized officer may, if the requirements of this section
are met, reinstate a lease that was terminated by operation of law for
failure to pay rental timely when the rental was not paid or tendered
within 20 calendar days of the termination date, and it is shown to the
satisfaction of the authorized officer that such failure was justified
or not due to a lack of reasonable diligence, or no matter when the
rental was paid, it is shown to the satisfaction of the authorized
officer that such failure was inadvertent.
* * * * *
Subpart 3109--Leasing Under Special Acts
0
46. Add an undesignated center heading following Sec. 3109.15 to read
as follows:
Leasing Under Other Special Acts
0
47. Amend Sec. 3109.20 by revising paragraph (b) to read as follows:
Sec. 3109.20 Units of the National Park System.
* * * * *
(b) Any lease or permit respecting minerals in units of the
National Park System may be issued only with the consent of the
Regional Director, National Park Service. Such consent will only be
granted upon a determination by the Regional Director that the activity
permitted under the lease or permit will not have significant adverse
effect upon the resources or administration of the unit pursuant to the
authorizing legislation of the unit. Any lease or permit issued will be
subject to such conditions as may be prescribed by the Regional
Director to protect the surface and significant resources of the unit,
to preserve their use for public recreation, and to the condition that
site specific approval of any activity on the lease will only be given
upon concurrence by the Regional Director. All lease applications
received for reclamation withdrawn lands will also be submitted to the
Bureau of Reclamation for review.
* * * * *
0
48. Add part 3110 to read as follows:
PART 3110--NONCOMPETITIVE LEASES
Sec.
3110.1 Lands accessible for noncompetitive leasing.
3110.2 Application requirements.
3110.3 Priority.
3110.4 Action on application.
3110.5 Noncompetitive lease terms.
3110.6 Reversionary noncompetitive leases.
Authority: 16 U.S.C. 3101 et seq.; 30 U.S.C. 181 et seq. and
351-359; 31 U.S.C. 9701; 43 U.S.C. 1701 et seq.; and Public Law 97-
35 Stat. 357; and the Attorney General's Opinion of April 2, 1941
(40 Op. Atty. Gen. 41).
Sec. 3110.1 Lands accessible for noncompetitive leasing.
Only lands that have been offered competitively under part 3120 of
this
[[Page 38119]]
title, and for which no bid has been received, will be accessible for
noncompetitive leasing. Such lands will become accessible for
noncompetitive leasing for a period of 2 years beginning on the first
business day following the last day of the competitive auction, or the
replacement auction that includes the parcel, whichever is later. A
lease may be issued based on an application properly filed any time
within the 2-year noncompetitive leasing period.
Sec. 3110.2 Application requirements.
(a) A noncompetitive lease application must be made on a current
form approved by the Director. Copies must be exact reproductions of
the official approved form, without additions, omissions, or other
changes, or advertising. The noncompetitive lease application must:
(1) Include the lease application filing fee found in the fee
schedule in Sec. 3000.120 of this chapter.
(2) Include the first-year rental found in the fiscal terms in
Sec. 3103.1 of this chapter.
(3) Demonstrate the applicant's compliance with lessee
qualifications under subpart 3102.
(4) Provide the parcel number from the Notice of Competitive Lease
Sale in which the parcel was offered and did not sell. Each application
must contain only a single parcel.
(5) The legal land description of the lease parcel of interest in
the noncompetitive lease application, which must exactly match the
parcel land description of a parcel that was offered in the competitive
auction.
(b) A noncompetitive lease application under this part may be
withdrawn by the applicant, unless the BLM has signed the lease form.
Sec. 3110.3 Priority.
(a) Applications filed for lands accessible for noncompetitive
leasing, as specified in Sec. 3110.1, will receive priority as of the
date and time of filing as specified in 43 CFR 1821.11, except that all
noncompetitive offers will be considered simultaneously filed if
received in the proper BLM office at any time during the first business
day following the last day of the competitive auction, or the
replacement sale that includes the parcel, whichever is later.
(b) If the BLM receives simultaneously filed applications, the BLM
will select a single application, as specified in 43 CFR 1822.18. If
the selected application does not result in issuance of a lease, the
BLM will offer the lease to the next qualified applicant.
(c) Where a correction to an application is needed or is made,
whether at the option of the applicant or at the request of the
authorized officer, its priority will be determined as of the date the
application has been corrected and is complete. If the BLM receives a
complete application from another party before the date on which the
initial applicant files the corrected application, then the intervening
complete application will supersede the corrected application.
Sec. 3110.4 Action on application.
(a) No lease will be issued before the BLM takes final action on
any prior application to lease the lands or any extension of, or
petition for reinstatement of, an existing or former lease on the
lands. If a noncompetitive lease is issued under this section before
final action on a prior application, extension, or reinstatement, the
BLM will cancel the noncompetitive lease to be issued under this
paragraph.
(b) The United States will indicate its acceptance of the
noncompetitive lease application, in whole or in part, and the issuance
of the lease, by signature of the authorized officer on the current
lease form. A signed copy of the lease will be delivered to the
applicant.
(c) Filing a noncompetitive lease application on a lease form not
currently in use, unless the application was filed before the Director
declaring such lease form obsolete, may be allowed, on the condition
that the applicant is bound by the terms and conditions of the lease
form currently in use.
(d) A noncompetitive lease application that is not properly filed
in accordance with the regulations in this chapter will be rejected,
including a noncompetitive lease application for lands that have not
been offered on a competitive lease sale.
(e) A noncompetitive lease application made for lands that have
been leased competitively will be rejected.
Sec. 3110.5 Noncompetitive lease terms.
(a) All noncompetitive leases must be for a primary term of 10
years.
(b) All noncompetitive leases will be considered issued when signed
by the authorized officer.
(c) Noncompetitive leases will be effective as of the first day of
the month following the date the leases are issued. A lease may be made
effective on the first day of the month within which it is issued if a
written request for the earlier effective date is made before the
authorized officer signs the lease. Noncompetitive future interest
leases, as described under Sec. 3120.72, will be effective as of the
date the mineral interests vest in the United States.
Sec. 3110.6 Reversionary noncompetitive leases.
(a) This section applies only to those lands that are under the
administration of the Secretary of Agriculture where the United States
acquired an interest in such lands pursuant to the Act of March 1, 1911
(36 Stat. 961 et. seq.).
(b) If the United States held a vested future interest in a mineral
estate that, immediately prior to becoming a vested present interest,
was subject to a private lease under which oil or gas was being
produced, or had a well capable of producing, the holder of the private
lease may elect to continue the lease as a noncompetitive lease.
(c) An election must be made before the interest becomes a vested
present interest. If an election is made after the time allowed, or if
no election is made, the BLM will reject the application and offer the
lands on the next competitive lease sale.
(d) The lessees must comply with lessee qualifications under
subpart 3102.
(e) The lessee must provide an acceptable bond before lease
issuance.
PART 3120--COMPETITIVE LEASES
0
49. Revise the authority citation for part 3120 to read as follows:
Authority: 16 U.S.C. 3101 et seq.; 30 U.S.C. 181 et seq. and
351-359; 40 U.S.C. 471 et seq.; Pub. L. 113-291, 128 Stat. 3762; and
the Attorney General's Opinion of April 2, 1941 (40 Op. Atty. Gen.
41).
0
50. Revise Sec. 3120.11 to read as follows:
Sec. 3120.11 Lands offered for competitive leasing.
The BLM will consider the types of lands described below for
competitive leasing under the MLA, including but not limited to:
(a) Lands that were covered by previously issued oil and gas leases
that have terminated, expired, been cancelled or relinquished;
(b) Lands for which the authority to lease has been delegated from
the General Services Administration to the BLM;
(c) Lands from a cancelled lease or interest in a lease that was
acquired in violation of any of the provisions of the Act. When an
underlying lease or interest in a lease is cancelled or forfeited
through a bankruptcy or otherwise to the United States and there are
valid interests therein that are not subject to cancellation,
forfeiture, or compulsory disposition, such underlying lease or
interest may be sold
[[Page 38120]]
to the highest responsible and qualified bidder by competitive bidding
under this subpart, subject to all outstanding valid interests therein.
If less than the whole interest in the lease, or interest is cancelled
or forfeited, such partial interest may likewise be sold by competitive
bidding. If no satisfactory bid is obtained as a result of the
competitive offering of such whole or partial interests, such interests
may be sold in accordance with 30 U.S.C. 184(h)(2) by such other
methods as the authorized officer deems appropriate, but on terms no
less favorable to the United States than those of the best competitive
bid received. Interest in outstanding leases(s) so sold will be subject
to the terms and conditions of the existing lease(s);
(d) Lands which are otherwise unavailable for leasing but which are
subject to drainage (protective leasing);
(e) Lands included in any expression of interest submitted to the
authorized officer; and
(f) Lands selected by the authorized officer.
Sec. 3120.13 [Removed]
0
51. Remove Sec. 3120.13.
0
52. Revise Sec. 3120.22 to read as follows:
Sec. 3120.22 Effective date of leases.
All competitive leases will be considered issued when the
authorized officer signs them. Competitive leases, except future
interest leases issued under Sec. 3120.72, will be effective as of the
first day of the month following the date the authorized officer signs
the leases on behalf of the United States. A lease may be made
effective on the first day of the month within which it is issued if
the winning bidder makes a written request before the date the
authorized officer signs the lease. Leases for future interest will be
effective as of the date the mineral interests vest in the United
States.
0
53. Revise 3120.31 to read as follows:
Sec. 3120.31 Expression of interest process.
(a) A party submitting an expression of interest in leasing land
available for disposition under section 17 of the Mineral Leasing Act
must include the submitter's name and address and must submit the
expression of interest through the BLM's online leasing system.
(b) The expression must provide a description of the lands
identified by legal land description, as follows:
(1) For lands surveyed under the public land survey system,
describe the lands to the nearest aliquot part within the legal
subdivision, section, township, range, and meridian;
(2) For unsurveyed lands, describe the lands by metes and bounds,
giving courses and distances, and tie this information to an official
corner of the public land surveys, or to a prominent topographic
feature;
(3) For approved protracted surveys, include an entire section,
township, range, and meridian. Do not divide protracted sections into
aliquot parts;
(4) For lands that have water boundaries, describe the lands based
on the initial survey or deed acquiring ownership;
(5) For lands where the acquiring agency has assigned an
acquisition or tract number covering the lands applied, submit the
number in addition to any description otherwise required by this
section. If the authorized officer determines that the acquisition or
tract number, together with identification of the State and county,
constitutes an adequate description, the authorized officer may allow
the description in this manner in lieu of other descriptions required
by this section.
(c) A submitter may submit more than one expression of interest, so
long as each expression separately satisfies the requirements of this
section.
(d) The BLM may offer for lease all or some of the lands specified
in an expression of interest and may offer those lands as part of a
parcel that includes lands not specified in the expression of interest.
Sec. Sec. 3120.32 and 3120.33 [Removed]
0
54. Remove Sec. Sec. 3120.32 and 3120.33.
0
55. Revise Sec. 3120.42 to read as follows:
Sec. 3120.42 Posting timeframes.
(a) At least 45 calendar days prior to conducting a competitive
auction, the BLM will make available to the public a list of lands to
be offered for competitive lease sale in a Notice of Competitive Lease
Sale.
(b) After posting the Notice of Competitive Lease Sale, the BLM
will provide a protest period, of not less than 10 calendar days, for
public input on the upcoming lease sale.
(c) The BLM will make available the final National Environmental
Policy Act documents prior to issuing a lease from the lease sale.
(d) The BLM will post a public notice if it decides for any reason
not to hold a scheduled quarterly lease sale.
0
56. Add Sec. 3120.43 to read as follows:
Sec. 3120.43 Protests.
(a) The BLM will not suspend actions pursuant to the regulations in
this subpart or under 43 CFR 4.21(a) due to a protest filed against the
authorized officer's notice to hold a lease sale.
(b) Notwithstanding paragraph (a) of this section, the authorized
officer may suspend the offering of a specific parcel while considering
a protest against its inclusion in a Notice of Competitive Lease Sale.
(c) Only the Assistant Secretary for Land and Minerals Management
may suspend a lease sale for good cause after reviewing the reason(s)
for a protest.
(d) The processing fee for filing protests over 50 pages, inclusive
of exhibits, is listed in the fee schedule in Sec. 3000.120 of this
chapter.
0
57. Amend Sec. 3120.53 by revising paragraph (a) to read as follows:
Sec. 3120.53 Award of lease.
(a) A bid cannot be withdrawn and will constitute a legally binding
commitment to execute the lease bid form and accept a lease, including
the obligation to pay the bonus bid, first year's rental, and
processing fee. Execution by the high bidder of a competitive lease bid
form approved by the Director constitutes certification of compliance
with 43 CFR subpart 3102, will constitute a binding lease offer,
including all terms and conditions applicable thereto, and must be
submitted when payment is made in accordance with Sec. 3120.52(b).
Failure to comply with Sec. 3120.52(c) will result in rejection of the
bid and forfeiture of the monies submitted under Sec. 3120.52(b).
* * * * *
0
58. Revise Sec. 3120.60 to read as follows:
Sec. 3120.60 Parcels not bid on at auction.
The BLM will hold a replacement sale within 30 calendar days after
a competitive auction when 25 percent or greater of the acreage offered
does not receive bids. Lands offered at the competitive auction that
received no bids will become accessible for noncompetitive leasing for
a period of 2 years beginning on the first business day following the
last day of the competitive auction, or the replacement auction that
includes the parcel, whichever is later, as provided by 43 CFR part
3110.
0
59. Amend Sec. 3120.72 by revising paragraph (b) to read as follows:
Sec. 3120.72 Future interest terms and conditions.
* * * * *
(b) Upon vesting of the oil and gas rights in the United States,
the future interest lease rental and royalty will be as for any
competitive lease issued under this subpart, as provided in 43 CFR
subpart 3103, and the acreage will be chargeable in accordance with 43
CFR subpart 3102.
0
60. Revise Sec. 3120.73 to read as follows:
[[Page 38121]]
Sec. 3120.73 Compensatory royalty agreements.
The terms and conditions of compensatory royalty agreements
involving acquired lands in which the United States owns a future or
fractional interest will be established on an individual case basis.
Such agreements may be required when leasing is not possible in
situations where the interest of the United States in the oil and gas
deposit includes both a present and a future fractional interest in the
same tract containing a producing well. The BLM may use such agreements
until the BLM issues a competitive lease for unleased lands included in
a compensatory royalty agreement.
PART 3130--OIL AND GAS LEASING: NATIONAL PETROLEUM RESERVE, ALASKA
0
61. Revise the authority citation for part 3130 to read as follows:
Authority: 42 U.S.C. 6508.
0
62. Amend Sec. 3134.1 by revising paragraphs (a), (b), and (e) to read
as follows:
Sec. 3134.1 Bonding.
(a) Prior to issuance of an oil and gas lease, the successful
bidder must furnish the authorized officer a surety or personal bond in
accordance with the provisions of Sec. 3104.10 of this title in the
sum of $100,000, conditioned on compliance with all the lease terms and
conditions, including rentals and royalties, and any stipulations. The
bond will not be required if the bidder already maintains or furnishes
a bond in the sum of $300,000, conditioned on compliance with the
terms, conditions, and stipulations of all oil and gas leases held by
the bidder within NPR-A.
(b) A bond in the sum of $100,000 or $300,000, may be provided by
an operating rights owner (sublessee) or operator in lieu of a bond
furnished by the lessee, and must assume the responsibilities and
obligations of the lessee for the entire leasehold in the same manner
and to the extent as though they were the lessee.
* * * * *
(e) Except as provided in this subpart, the bonds required for NPR-
A leases are in addition to any other bonds the successful bidder may
have filed or be required to file under Sec. Sec. 3104.20, 3104.30(a)
and 3154.1 and subparts 3206 and 3209 of this title.
PART 3140--LEASING IN SPACIAL TAR SANDS AREAS
0
63. Revise the authority citation for part 3140 to read as follows:
Authority: 30 U.S.C. 181 et seq.; 30 U.S.C. 351-359; Pub. L. 97-
78, 95 Stat. 1070; 42 U.S.C. 15801, unless otherwise noted.
0
64. Amend Sec. 3140.14 by revising paragraphs (a) and (c)(2) to read
as follows:
Sec. 3140.14 Other provisions.
(a) A combined hydrocarbon lease will be for no more than 5,760
acres. Acreage held under a combined hydrocarbon lease in a Special Tar
Sand Area is not chargeable to State oil and gas limitations allowable
in 43 CFR 3102.51 or 3102.52.
* * * * *
(c) * * *
(2) The royalty rate for a combined hydrocarbon lease converted
from a valid claim based on a mineral location will be 12.5 percent.
* * * * *
0
65. Revise Sec. 3140.70 to read as follows:
Sec. 3140.70 Lands within the National Park System.
The BLM stopped accepting conversion applications on November 15,
1983. Conversions of existing oil and gas leases and valid claims based
on mineral locations to combined hydrocarbon leases within units of the
National Park System will be allowed only where mineral leasing is
permitted by law and where the lands covered by the lease or claim
proposed for conversion are open to mineral resource disposition in
accordance with any applicable minerals management plan. (See 43 CFR
3100.3(g)(4)). In order to consent to any conversion or any subsequent
development under a combined hydrocarbon lease requiring further
approval, the Regional Director of the National Park Service must find
that there will be no resulting significant adverse impacts on the
resources and administration of such areas or on other contiguous units
of the National Park System in accordance with 43 CFR 3109.20(b).
Subpart 3141--Leasing in Special Tar Sands Areas
0
66. Amend Sec. 3141.10 by revising paragraph (h) to read as follows:
Sec. 3141.10 General.
* * * * *
(h) The acreage of combined hydrocarbon leases or tar sand leases
held within a Special Tar Sand Area will not be charged against acreage
limitations for the holding of oil and gas leases as provided in 43 CFR
3102.51.
* * * * *
0
67. Amend Sec. 3141.53 by revising paragraphs (a) and (e) to read as
follows:
Sec. 3141.53 Royalties and rentals.
(a) The royalty rate on all combined hydrocarbon leases or tar sand
leases is 12.5 percent of the value of production removed or sold from
a lease. The ONRR will be responsible for collecting and administering
royalties.
* * * * *
(e) Except as explained in paragraphs (a) through (c) of this
section, all other provisions of 43 CFR subpart 3103 apply to combined
hydrocarbon leasing.
0
68. Revise Sec. 3141.63 to read as follows:
Sec. 3141.63 Conduct of sales.
(a) Oil and gas leases. Lease sales for oil and gas leases will be
conducted using the procedures for oil and gas leases in 43 CFR
3120.51.
(b) Combined hydrocarbon leases and tar sand leases. (1) Parcels
will be offered by competitive auction.
(2) The winning bid will be the highest bid by a responsible and
qualified bidder, equal to the minimum bonus bid amount as specified in
Sec. 3103.1 of this chapter or for hydrocarbon leases, the minimum
bonus bid amount determined under Sec. 3141.51, whichever is larger.
(3) Payments must be made as provided in 43 CFR 3120.52.
PART 3150--ONSHORE OIL AND GAS GEOPHYSICAL OPERATIONS
0
69. Revise the authority citation for part 3150 to read as follows:
Authority: 16 U.S.C. 3150(b) and 668dd; 30 U.S.C. 189 and 359;
42 U.S.C. 6508.
0
70. Revise Sec. 3152.3 to read as follows:
Sec. 3152.3 Renewal of exploration permit.
Upon request by the permittee, an exploration permit may be renewed
for a period not to exceed 1 year.
PART 3160--ONSHORE OIL AND GAS OPERATIONS
0
71. Revise the authority citation for part 3160 to read as follows:
Authority: 25 U.S.C. 396d and 2107; 30 U.S.C. 189, 306, 359, and
1751; and Sec. 107, Pub. L. 114-74, 129 Stat. 599, unless otherwise
noted.
0
72. Revise Sec. 3165.1 to read as follows:
Sec. 3165.1 Relief from operating and/or producing requirements.
(a) Applications for relief from either the operating or the
producing requirements of a lease, or both, must be filed with the
authorized officer, and must include a full statement of the
circumstances that render such relief necessary.
(b) The authorized officer will act on applications submitted for a
suspension
[[Page 38122]]
of operations or production, or both, filed pursuant to 43 CFR 3103.42.
The application for suspension must be filed with the authorized
officer prior to the expiration date of the lease; must be executed by
all operating rights owners or by the operator on behalf of the
operating rights owners; and must include a full statement of the
circumstances that makes such relief necessary.
(c) If approved, a suspension will be effective on the first of the
month in which the completed application was filed or the date
specified by the authorized officer in the approval.
(d) Suspensions will lift when the basis provided for the
suspension no longer exists, when lifting the suspension is in the
public interest, or as otherwise stated by the authorized officer in
the approval letter.
(e) The BLM may grant a suspension of operations and production or
a suspension of operations at any time in a lease's term but may only
grant a suspension of production after a lease begins production.
PART 3180--ONSHORE OIL AND GAS UNIT AGREEMENTS: UNPROVEN AREAS
0
73. The authority citation for part 3180 continues to read as follows:
Authority: 30 U.S.C. 189.
0
74. Revise Sec. 3181.1 to read as follows:
Sec. 3181.1 Preliminary consideration of unit agreement.
The model unit agreement, available from the BLM's form web page,
is acceptable for use in unproven areas. Unique situations requiring
special provisions should be clearly identified, since these and other
special conditions may necessitate a modification of the model unit
agreement. Any proposed special provisions or other modifications of
the model agreement should be submitted for preliminary consideration
so that any necessary revision may be prescribed prior to execution by
the interested parties. Where Federal lands constitute less than 10
percent of the total unit area, a non-Federal unit agreement may be
used. Upon submission of such an agreement, the authorized officer will
take appropriate action to commit the Federal lands.
0
75. Revise Sec. 3183.4 to read as follows:
Sec. 3183.4 Approval of executed agreement.
(a) A unit agreement may be approved by the authorized officer upon
a determination that such agreement is necessary or advisable in the
public interest and is for the purpose of more properly conserving
natural resources. Such approval will be incorporated in a
Certification-Determination document appended to the agreement, and the
unit agreement will not be deemed effective until the authorized
officer has executed the Certification-Determination document. No such
agreement will be approved unless the parties signing the agreement
hold sufficient interests in the unit area to provide reasonably
effective control of operations.
(b) The public interest requirement of an approved unit agreement
for unproven areas will be satisfied only if the unit operator
commences actual drilling operations and thereafter diligently
prosecutes such operations in accordance with the terms of said
agreement. If an application is received for voluntary termination of a
unit agreement for an unproven area during its fixed term or such an
agreement automatically expires at the end of its fixed term without
the public interest requirement having been satisfied, the approval of
that agreement by the authorized officer and lease segregations and
extensions under 43 CFR subpart 3107 will be invalid, and no Federal
lease will be eligible for extensions under 43 CFR subpart 3107.
(c) Any modification of an approved agreement will require the
prior approval of the authorized officer.
Subpart 3186--Model Forms [Removed]
0
76. Remove subpart 3186--Model Forms.
Lanny E. Erdos,
Director, Office of Surface Mining, Reclamation, and Enforcement
Exercising Authority of the Assistant Secretary--Land and Minerals
Management.
[FR Doc. 2026-12734 Filed 6-23-26; 8:45 am]
BILLING CODE 4331-29-P