Navigating the New BLM Rule: Strategic Insights for Oil and Gas Operators

May 1 2024
Navigating the New BLM Rule: Strategic Insights for Oil and Gas Operators

The U.S. Bureau of Land Management (BLM) has recently finalized a rule introducing significant changes affecting the oil and gas industry, particularly in managing lost and unaccounted-for gas (LAUF). At ZEVAC, we have been anticipating these developments and advising our clients accordingly to ensure they stay ahead of regulatory compliance.

A critical aspect of the new BLM rule is that LAUF can no longer be disregarded or passed without financial consequences. The rule stipulates that avoidable losses will now incur royalties, marking a decisive shift towards stricter accountability in gas handling. This move aligns with broader regulatory trends, signaling similar measures may soon be integrated into tariff and rate cases across transmission and distribution operations, potentially eliminating LAUF reimbursements.

Additionally, the rule imposes a more stringent measurement requirement on venting and flaring activities. Operators must now ensure metering on flare lines is as accurate as on sales meters. This poses a substantial challenge due to the highly variable flow rates and changing gas compositions typically seen in flaring scenarios.

As these regulations take effect, ZEVAC is positioned to assist operators in adapting to these new standards. Our expertise in gas emission control and recovery offers practical solutions that comply with the latest BLM requirements and enhance operational efficiency while reducing environmental impact.