The Bureau of Land Management will announce tomorrow that a final rule on oil and gas drainage is in effect immediately. The regulation is aimed at preventing federal and Indian oil and gas resources from being drained from public lands without authorization or compensation to the American taxpayer.

The rule implements an express lease term provision on drainage protection by resolving ambiguities in the previous regulations and administrative decisions. It also addresses the responsibility of assignors and assignees of leases for well plugging, site reclamation and environmental cleanup.

"This rule is good for the taxpayer and good for the environment," said Carson W. Culp, Assistant Director for Minerals, Realty and Resource Protection in announcing the rule.

A provision of the rules concerning joint and several liability for lessees and operating rights owners will be held back for 120 days to allow for additional public comment and review.

The provision would make all lessees and operating rights owners jointly and severally liable for drainage protection. This means that lessees and operating rights owners, no matter what percentage of the lease or operating rights they may own, would be fully responsible for drainage protection.

The joint several and liability provision was the subject of intense debate during the initial comment period last year, stemming, in part, from legal concerns as to its compatibility with provisions of the Royalty Simplification and Fairness Act. The BLM is inviting the public to respond to specific questions regarding the provision during a 60-day comment period, which will end June 11. The Department will then have an additional 60 days to review comments and determine whether the provision will be changed or stand.

The oil and gas drainage rule was published as a final rule January 10, 2001. However, it was one of a number of regulations subject to further review by the new Administration.

The BLM, an agency of the U.S. Department of the Interior, manages more land—264 million surface acres —than any other Federal agency. Most of this public land is located in 12 Western states, including Alaska. The Bureau, which has a workforce of about 9,000 employees, also administers 700 million acres of sub-surface mineral estate throughout the Nation. The BLM preserves open space by managing the public lands for multiple uses, including outdoor recreation, livestock grazing and mining, and by conserving natural, historical, cultural, and other resources on the public lands.