Authorization for Crypto-Mining on Public Lands

September 27, 2023

In Reply Refer To:
2800, 2880, 3100 (HQ-310, HQ-350) P            

EMS TRANSMISSION 10/10/2023
Information Bulletin No. 2023-062     

To:                      All Field Office Officials
                           Attn: (Line Officers) 

From:                 Assistant Director, Energy, Minerals and Realty Management 

Subject:             Authorization for Crypto-Mining on Public Lands

Information Bulletin:  This Information Bulletin provides general information regarding the use of produced gas or solar or wind resources as an energy source for cryptocurrency operations on public lands managed by the Bureau of Land Management (BLM).  So-called cryptocurrency mining is an energy intensive process used for generation and verification of digital currency through servers powered by electricity generators housed in onsite facilities.  Cryptocurrency mining on and/or with the use of energy sources from public lands requires an authorization from the BLM.  Such activities on public lands without an appropriate BLM authorization are considered a trespass and the BLM should take appropriate action.

A proponent seeking to site and use public lands or its resources for cryptocurrency mining, i.e., all infrastructure and resource use related to this operation, must obtain from the BLM an appropriate right-of-way pursuant to either Title V under the Federal Land Policy and Management Act of 1976 (FLPMA), as amended, 43 U.S.C. § 1761; or Section 28 of the Mineral Leasing Act of 1920 (MLA), as amended, 30 U.S.C. § 185; or both, depending on the source and transport of the energy produced.  Applications for cryptocurrency mining operations require an Application for Transportation, Utility Systems, Telecommunications and Facilities on Federal Lands and Property (SF-299) with a Plan of Development in order to obtain an authorization. 

Cryptocurrency mining activities are not a royalty-free use for the benefit of an oil and gas lease as defined by MLA.  Any authorizations for gas pipelines from the Facility Measurement Point (FMP) to any facility used in cryptocurrency mining must be authorized under Section 28 of the MLA.  Any gas used for these operations must be measured at the FMP and reported to the Office of Natural Resources Revenue.

The oil and gas lease operator must file a new site facility diagram, in accordance with 43 C.F.R. § 3173.11(a) with the appropriate BLM office, if the proposed facility is located on a well pad.

Please note that the so-called mining of cryptocurrency on the BLM-managed lands does not qualify as a mining operation and thus is not regulated under the General Mining Law of 1872.

The BLM Headquarters intends to follow-up with BLM Offices and provide specific policy and guidance regarding authorizations for cryptocurrency mining activities on public lands. 

If you have any questions concerning the content of this IB, please contact me at (202) 742-0648 or either: Stephen Fusilier, Branch Chief, Rights-of-Way, at (202) 309-3209 or sfusilie@blm.gov; Michael Hogan, Realty Specialist, at (505) 954-2124 or mthogan@blm.gov;  Yvette Fields, Division Chief, Division of Fluid Minerals at (240) 712-8358 or yfields@blm.gov; or Indra Dahal, Petroleum Engineer, at (571) 458-6637 or idahal@blm.gov. 

Signed by:                               Authenticated by: 
Emily R. Lindow                      Robert M. Williams
Acting, Assistant Director        Division of Regulatory Affairs and Directives,(HQ-630)
Energy, Minerals, and Realty
    Management