The Department of the Interior has proposed updates to its Bureau of Land Management regulations that would make it easier for energy companies to “commingle” production from multiple onshore leases.
The proposed rule would allow oil and gas operators to combine output from different federal leases, even when those leases have varying ownership structures, royalty rates, and revenue-sharing agreements. The current BLM rules permit commingling only under strict conditions, such as identical lease ownership and royalty terms.
“This is about common sense and catching up with today’s technology,” said Interior Secretary Doug Burgum. “The current rules were written for a different era. These updates will help us manage public resources more efficiently, support responsible energy production, and make sure taxpayers and tribes get every dollar they’re owed.”
The proposed regulation, which stems from the Trump-era One Big Beautiful Bill, directs the Secretary of the Interior to expedite the approval of commingling applications as a way to streamline energy development on public lands. Under the proposed framework, operators would be able to use the same well pad to tap into multiple reservoirs, reducing surface disturbance, lowering infrastructure costs, and improving efficiency across lease boundaries.
BLM says the policy shift is driven by recent advancements in metering and measurement technology, which now allow production to be accurately tracked at the wellhead. These tools enable precise royalty allocation, which is a key concern when leases involve different mineral rights owners or tribal lands.
According to Interior’s estimates, the rule change could save the industry up to $1.8 billion annually by eliminating duplicative infrastructure and streamlining production operations. Those savings could be reinvested into domestic energy projects, supporting broader goals of energy independence and job creation.
The BLM intends to act quickly on the proposed changes, which will revise regulations after formal rulemaking and a public comment period.
It’s one part of broader effort by the Trump Administration to reduce regulatory burdens and modernize federal energy policies.
“These updates will help us manage public resources more efficiently, support responsible energy production, and make sure taxpayers and tribes get every dollar they’re owed,” Burgum said.
The proposed rule is expected to be published in the Federal Register in the coming weeks.
Finally, one size fits all and no more fighting or suing over territory. Bring on the public comment period. Its going to be a work in progress.
This is decades overdue. Will be nice to see Interior more interested in leasing potential energy producing sites that making it more difficult and expensive. The US, and Alaska in particular, are known for being more difficult to explore and produce than hell holes like Venezuela and Columbia.