“To amend the Mineral Leasing Act to provide for commingling.”
No CRS summary available for this bill.
This section establishes a new commingling provision in the Mineral Leasing Act (30 U.S.C. 226) requiring the Secretary of the Interior to approve applications allowing production from two or more sources (i.e., oil and gas leases, unit participating areas, communitized areas, or non-Federal or non-Indian properties) to be commingled before the point of royalty measurement, regardless of differences in ownership, royalty rates, or acreage percentages, to minimize surface-disturbing activities. (Thus, operators may reduce the number of wells and facilities on federal lands.) Approval requires the applicant to either install measurement devices for each source or use an allocation meter or method achieving volume measurement uncertainty of plus or minus 2 percent, reported monthly during production.