Waste Prevention Rule
The Bureau of Land Management is reducing waste of natural gas from venting, flaring, and leaks during oil and gas production on federal and Tribal lands.
BLM finalized the Waste Prevention, Production Subject to Royalties, and Resource Conservation Rule—also known as the Waste Prevention Rule—in April 2024, combining and building on years of technological advances and best management practices.
The rule is expected to generate more than $50 million in additional natural gas royalty payments each year and conserve billions of cubic feet of gas that might have otherwise been vented, flared, or leaked from operators. This conserved gas will be available to power American homes and industries.
Modern existing oil and gas production rules
The rule updates previous regulations that were more than 40 years old and did not properly address the increasingly fast development in the oil and gas industry. The older rule was not designed to take into account new discoveries, new technologies, and the increased pace of production.
The new version requires operators of oil and gas leases to take reasonable steps to avoid natural gas waste, as well as develop leak detection, repair and waste minimization plans. When natural gas loss could have been avoidable, the rule ensures public and Tribal mineral owners are properly compensated through royalty payments.
Effective date
The final Waste Prevention Rule goes into effect 60 days after publication in the Federal Register. BLM is phasing in the new requirements to allow operators ample time to appropriately adjust. For example, some flaring limits will go into effect roughly 60 days after the effective date of the rule. Some flare measurements will be required either six, 12 or 18 months after the effective date of the rule. Operators will have 18 months to submit leak detection and repair plans to BLM state offices.
Announcement to Oil and Gas Lessees and Operators
October 1, 2024: North Dakota v. Department of the Interior, No. 24-cv-00066 (D.N.D.)
On September 12, 2024, the United States District Court for the District of North Dakota granted a motion for preliminary injunction filed by the plaintiff states of North Dakota, Texas, Montana, Wyoming, and Utah. The Court’s Order prohibits BLM “from enforcing the 2024 [Waste Prevention] Rule against the [plaintiff states] pending the outcome of this litigation.” Order at 22. The 2024 Rule was published in the Federal Register on April 10, 2024, with an effective date of June 10, 2024. For Federal oil and gas leases not covered by the court’s Order, BLM will implement and enforce the 2024 Rule’s provisions as of the rule’s effective date.
September 2024 Webinar
On September 4, 2024, the BLM provided an Oil and Gas Rules Overview webinar. If you missed the webinar, please review the slide deck, found below:
Sept 4 Webinar Slide Deck
The BLM looks forward to posting the video after ensuring the video is Section 508 compliant.