The bill would require the Secretary of the Interior to approve applications to combine oil and gas production from two or more sources before royalty measurement. Sources may include federal leases, other designated areas, and non-federal or non-Indian properties. The rule would apply regardless of ownership, royalty rates, or the share of acres from each source. Applicants would have to measure each source separately or use an allocation meter or method that keeps volume measurements within plus or minus 2 percent, reported monthly. The bill states that commingling is intended to help minimize surface disturbance.
Oil and gas operators seeking to combine production from multiple sources would need to meet the measurement and monthly reporting requirements. The bill does not describe direct effects on individuals or communities.
The bill does not provide cost estimates. Applicants would need to install measurement devices for each source or use an allocation meter or method that meets the stated accuracy requirement.
The bill states that commingling is intended to help minimize surface disturbance. No publicly available information about proponents' views is provided.
No publicly available information.