H.R. 1926: To amend the Mineral Leasing Act to provide for commingling.

This bill proposes to amend the Mineral Leasing Act to facilitate a process known as "commingling." The primary aim of this amendment is to minimize surface disturbances associated with the extraction of oil and gas resources. Here are the important points regarding the bill:

Key Changes Introduced

• The bill introduces new provisions that allow the Secretary of the Interior to approve applications for commingling production from multiple sources before it is measured for royalties.
• Commingling can involve production from various sources, including:
  • Oil and gas leases
  • Unit participating areas
  • Communitized areas
  • Non-Federal or non-Indian properties
• Commingling is aimed at reducing the number of surface operations required, which can help lessen the environmental impact of drilling and production activities.

Requirements for Commingling

The bill specifies that for commingling to be approved:

• The applicant must agree to install measurement devices for each production source.
• Alternatively, they can employ an allocation meter or method that maintains volume measurement uncertainty levels within +/- 2 percent during monthly reporting of production.

Purpose of the Bill

The overarching intention of this legislation is to promote efficiency and reduce ecological disturbances associated with traditional oil and gas production methods. By allowing for commingling, the bill aims to streamline processes that currently may be redundant or environmentally taxing.

Impact on Surface Disturbance

This bill emphasizes minimizing surface disturbances, which could lead to fewer drilling sites and infrastructure impacts on the landscape. The goal is to consolidate production activities into fewer locations while meeting regulatory requirements.

Relevant Companies