US agency finalizes revised rules for onshore oil/gas activity

Washington (Platts)--8Mar2007

The US Bureau of Land Management Thursday published a final rule in the
Federal Register revising regulations governing oil and gas activity on public
lands.

The revised Onshore Order Number 1 includes updates required by the
Energy Policy Act of 2005, legal opinions, court cases and changes in policies
and procedures issued since the order was last updated in October 1983.

Major changes involve procedures for processing Applications for Permits
to Drill; the use of Best Management Practices in lease development; and
procedures for operating in split estate situations, where privately owned
surface overlies federally owned minerals.

It also codifies the current BLM practice of requiring joint onsite
inspection by the BLM and the US Forest Service, where appropriate, and the
operator, before a drilling permit application is considered complete.

The regulations and procedures when operating in split estate situations
require operators to make good faith efforts to reach surface access
agreements with private surface operators. When such efforts fail, the revised
order provides for the posting of a bond to protect against damages to the
surface. In addition, the final rule provides opportunities for private
surface owners to participate in onsite inspection meetings.

--Gerald Karey, gerry_karey@platts.com