BLM published its final oil-measurement rule on November 17, 2016, with an effective date of January 17, 2017. It replaces Onshore Oil and Gas Order Number 4 and establishes minimum measurement standards for production from federal and Indian leases, except those of the Osage Tribe. It is not a rule covering every oil operation regardless of land or lease status. [2016-25405][2015-24008]

The timeline needs a second distinction. BLM’s September 30, 2015 proposal would have given operators 180 days after the final rule’s effective date to bring existing measurement equipment into compliance. That proposal requested information about ordering, installing and configuring equipment. It is historical evidence of the approach considered, not the deadline adopted in the final text. [2016-25405][2015-24008]

The final rule provides a one-to-four-year phase-in for existing equipment. Compliance follows the timetable for applying for facility measurement point numbers and is linked to production volumes, with lower-volume producers given more time. January effectiveness therefore should not be described as a simultaneous equipment conversion deadline. Nor should the proposal’s shorter period be carried forward as though it remained controlling. [2016-25405][2015-24008]

The substantive framework addresses measurement technology, records and performance, with the objective of accurately accounting for oil on which royalties are owed. Those requirements do not demonstrate additional collections. Both documents belong to the same BLM rulemaking, not independent corroboration. Read together, they establish a final framework and a changed transition, while keeping the agency’s intended benefits separate from measured outcomes. [2016-25405][2015-24008]

Source documents

  1. Onshore Oil and Gas Operations; Federal and Indian Oil and Gas Leases; Measurement of Oilhttps://www.govinfo.gov/content/pkg/FR-2016-11-17/html/2016-25405.htm
  2. Onshore Oil and Gas Operations; Federal and Indian Oil and Gas Leases; Measurement of Oilhttps://www.govinfo.gov/content/pkg/FR-2015-09-30/html/2015-24008.htm