Requirements for Site Security and Production Handling; Applying for Commingling and Allocation Approval
Published Date: 1/30/2026
Proposed Rule
Summary
The Bureau of Land Management is updating rules to make it easier and cheaper for oil and gas operators to combine production from different lands, helping wells stay open longer. This affects anyone working on Federal, Indian, private, or State lands and could save money by cutting costs. Comments on the proposed changes are open until March 31, 2026, so don’t miss your chance to weigh in!
Analyzed Economic Effects
7 provisions identified: 3 benefits, 2 costs, 2 mixed.
Easier Commingling Across Land Types
The BLM proposes to allow commingling of oil and gas production more broadly across Federal, Indian, State, and private lands and to remove rules that previously blocked commingling when Federal interests differed. This change is intended to let operators combine more leases, unit participating areas, and communitization areas at one facility to reduce facility costs and help marginal or stripper wells remain productive.
Large Possible Royalty Swing
The BLM proposes to allow up to a 5 percent measurement variance for commingled production; in extreme scenarios this could change Federal onshore royalties by up to $365 million per year and Indian lease royalties by up to $54 million per year relative to royalties based on true production. The proposal notes these are extreme upper bounds and that actual effects will likely be smaller.
Measurement Uncertainty Limit Set
The proposed rule would require commingling allocation methods to meet a measurement uncertainty of 2 percent, or allow up to 5 percent uncertainty if the operator provides appropriate technical or economic justification and the BLM approves it. Operators must demonstrate a calculated uncertainty percentage in their commingling application to meet these requirements.
New Documentation and Access Requirements
To include State or private leases in a commingling application, operators must supply the most recent gas analysis (BTU) or oil gravity, documentation that all interest owners consent to the CAA and BLM inspection, proof of surface-owner access for BLM personnel, and maintenance documentation for non-federal measurement equipment. The BLM estimates applicants would need an additional 10 hours per application and that BLM processing of additional applications would cost about $352,170 per year.
Indian Leases Require BIA/Tribal Consent
The proposed rule would allow commingling to include Indian leases only if the Bureau of Indian Affairs (BIA) approves inclusion and Indian mineral owners or tribes consent; certain 'overriding considerations' cannot be used to approve a CAA that includes Indian leases unless the Indian mineral owner consents and is informed of potential royalty impacts.
Existing Approvals Stay in Place
Under the proposal, existing commingling and allocation approvals (CAAs) would remain effective unless the operator adds or removes wells or modifies the facility layout. If an operator makes those changes, they must submit a Sundry Notice (Form 3160-5) and, where leases/units/CA changes occur, submit a new application meeting the new requirements.
60-Day Target for Application Decisions
The BLM proposes to approve a complete commingling application within 60 days of receipt unless additional environmental analysis is required. The agency is soliciting feedback on whether 60 days is an appropriate timeframe.
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Key Dates
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