US Interior Proposes Rules to Boost Oil, Gas Output in US West

The U.S. Interior Department has proposed updated Bureau of Land Management rules to ease restrictions on commingling, allowing energy companies to combine oil and gas output from multiple leases using the same well pad. This change aims to increase production efficiency, lower operating costs, and reduce environmental impacts, potentially saving the industry up to $1.8 billion annually. Current regulations restrict commingling to leases with identical mineral ownership, royalty rates, and revenue distribution, which creates barriers in areas with complex mineral ownership in the U.S. West. Advances in metering technology now allow for accurate tracking and allocation of production and royalties at individual wellheads, ensuring fair payments to the federal government and tribes. Interior Secretary Doug Burgum emphasized that the current rules were outdated and that these updates would support responsible energy production while ensuring transparency and accountability. The proposal aligns with President Donald Trump's energy dominance agenda, which encourages reducing regulations on fossil fuels to boost U.S. oil and gas production.