Stop BLM from cutting royalties on wasted oil and gas
Royalty for Oil and Gas Lost From Onshore Federal and Indian Leases
Bureau of Land Management· Federal onshore oil and gas leases, Indian trust landsFederal Register 2026-12738 ↗
A rule change would let oil and gas companies waste more fuel on federal and tribal lands without paying what they owe.
What’s at risk
Taxpayers and tribal communities stand to lose royalty revenue when oil and gas is vented, flared, or spilled on federal and Indian trust lands. The proposed rule reduces what companies must pay for that lost fuel under pressure from an executive order to ease industry compliance burdens.
If this goes through
Oil and gas operators would face fewer requirements to account for wasted fuel, permanently reducing the royalty payments owed to the public and tribal beneficiaries.
Our plain-English read of the official notice ↗. Check it against the agency’s own words below.
4 holes in the agency’s own analysis
What the public could have raised, from the agency’s own document
- I oppose this action as proposed, and I ask the agency to weigh the specific harms below.
- The proposed rule keeps operator negligence as a basis for finding an emergency-related gas loss 'avoidably lost' under section 3179.41(e), but it simultaneously eliminates the Sundry Notice requirement that previously required operators to describe the emergency event and measures taken to control it within 45 days, the very information BLM used to determine whether a loss was due to negligence. The agency should explain how it will identify negligent emergency losses without the reporting mechanism it is eliminating, or retain a reporting requirement sufficient to support negligence determinations.
- The agency repeatedly states that NTL-4A proved unsuited to modern horizontal drilling and hydraulic fracturing operations, yet the proposed rule conforms several of its new time and volume limits, such as those for well completion and recompletion flaring, directly back to the limits established in NTL-4A. The agency should explain why standards it says are outdated and ill-suited for current production techniques are nonetheless being reinstated as the operative limits in the new rule.
- The proposed rule changes the stated purpose of the subpart from including protection of worker safety and conservation of surface resources, as in the 2024 Rule, to a purpose focused only on compensation, efficient development, burden reduction, and streamlining, with no explanation of why worker safety and surface resource conservation are being dropped as regulatory objectives. The agency should explain why worker safety and surface resource conservation are no longer part of the rule's purpose or restore them.
- The agency proposes to eliminate the requirement that operators use appropriately sized production equipment, stating only that there is no way to practically enforce it, without describing any effort to develop an enforceable version of the standard or evaluating what volume of gas loss results from undersized equipment. The agency should either develop an enforceable equipment-sizing standard or provide data showing that undersized equipment does not contribute meaningfully to gas losses before eliminating the requirement.
Show all 6 points from the document
- Say something only you can say. The law requires the agency to consider and respond to substantive comments, and specifics are what make a comment substantive.
In the agency’s own words
In response to the One Big Beautiful Bill Act, enacted on July 4, 2025, and Executive Order (E.O.) 14154, entitled, "Unleashing American Energy," dated January 20, 2025, the Bureau of Land Management (BLM) is proposing to modify its existing regulations pertaining to royalties due on oil and natural gas lost on Federal and Indian leases. These modifications would reduce unnecessary compliance burdens for operators and streamline the BLM's royalty determinations on lost oil or natural gas.
The reporting behind this
From More Than Just ParksIt’s referred to as Unit 346 in the Twin Mountain II Timber Sale. On the ground, it’s some of the most spectacular old growth we’ve ever witnessed, and it’s marked for clearcutting.
To document and do our part to save America’s greatest old growth forest
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