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Title: The Role Of The Blm In Oil And Gas Measurement An Overview Of Onshore Orders 4 And 5
Author: Lonny R. Bagley
Source: 2004 International School of Hydrocarbon Measurement
Year Published: 2004
Abstract: Onshore Federal and Indian oil and gas lease operations are subject to a variety of legislation, regulations, lease terms, Onshore Oil and Gas Orders, Notices to Lessees, written orders, and other instructions. Not only do many different rules exist affecting lease operators, but these requirements come from multiple sources such as the Mineral Leasing Act of 1920, 30 U.S.C. and the Federal Oil and Gas Royalty Management Act of 1982 (FOGRMA), 30 U.S.C. 1751. The Mineral Leasing Act authorizes the Secretary of the Interior to Aprescribe such rules and regulations as he deems reasonably necessary@ to carry out the Act. Congress enacted FOGRMA, because of concern over the accuracy of the production information submitted by operators to the federal government, especially its impact on royalties. Pursuant to this authority, the Secretary has promulgated rules to regulate oil and gas production on leased federal and Indian land. 43 C.F.R. Part 3160. The Bureau of Land Management (BLM) also has the authority to issue Onshore Oil and Gas Orders, which themselves prescribe additional rules and regulations for onshore oil and gas operations. These Orders are promulgated through APA notice and comment rulemaking and therefore carry the force of law. See 43 C.F.R. 3164.1. This paper will review the role BLM plays in regulating oil and gas operations. Specifically, oil and gas measurement requirements contained in Onshore Oil and Gas Orders 4 and 5. The purpose of these orders, is to establish requirements and minimum standards for the measurement of oil and gas by methods authorized in 43 CFR 3162.7-2,3 and to provide standard operating practices for the lease oil storage and handling facilities. Proper oil and gas measurement ensures that the Federal Government and Indian mineral owners receive the royalties due, as specified in the governing oil and gas leases. These orders are applicable to all Federal and Indian (except Osage) oil and gas leases and all wells and facilities on State or privately owned minerals land committed to a unit or communitization agreement that affects Federal or Indian interests.

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