Waste Prevention Rule

The Bureau of Land Management (BLM) announced this rule to reduce waste of natural gas from venting, flaring, and leaks during oil and gas production on federal and Tribal lands. 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. 

It 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. 

The rule goes into effect 60 days after publication in the Federal Register and new requirements will be phased in. For example, some flaring limits will go into effect 60 days after the effective date. Some flare measurements will be required either 6-18 months after the effective date. Operators will have 18 months to submit leak detection and repair plans.

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