Roberts Law Group News

BLM Issues Proposed Rule on Site Security

On July 13, 2015, the Bureau of Land Management (BLM) issued a Proposed Rule to replace Onshore Oil and Gas Order No. 3, Site Security (Order 3), which was originally published in 1989.
 
Order 3 establishes minimum standards for oil and gas facility site security. It specifically includes provisions directing operators, transporters, and purchasers to properly and securely handle oil and gas produced from Federal and Indian oil and gas leases, so as to ensure accurate measurement, production accountability, and royalty payments, and to prevent theft and loss. The Proposed Rule updates would allow the BLM to strengthen its policies governing production verification and accountability to reflect changes in oil measurement practices and technology since Order 3 was first promulgated.