U.S. DEPARTMENT OF THE INTERIORBUREAU OF LAND MANAGEMENT
UNITED STATES DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
WASHINGTON, D.C. 20240
April 27, 2009
In Reply Refer To:
3160 (310) P
EMS TRANSMISSION 05/07/2009
Instruction Memorandum No. 2009-115
To: All Field Officials
From: Assistant Director, Minerals and Realty Management
Subject: Oil and Gas Theft Reporting Guidelines and Format
Program Area: Oil and Gas Management.
Purpose: To provide field offices (FO) with guidelines and procedures to follow when oil and/ or gas theft or fraud is suspected.
Policy/Action: The attachedform is to be used to document and process reports of theft or fraud involving oil or gas from onshore Federal or Indian Oil and Gas leases. “The Oil and Gas Theft/Fraud Report” (attachment 1), is to be completed when oil or gas theft is reported to the Bureau of Land Management (BLM) or when Inspection and Enforcement (I&E) personnel suspect that oil or gas theft or fraud has occurred or is occurring. This form will be available to all personnel who work with fluid minerals and law enforcement personnel working on fluid minerals matters. The attached form has been created as a fillable form that can be used as a template for this report.
When oil or gas theft is reported to the BLM, the following steps are to be followed:
Minerals Management Service
Deputy Associate Director for Audit, MS 3600
P. O. Box 25165
Denver, CO 80225-0165
When I&E personnel suspect that oil or gas theft or fraud has occurred or is occurring and the operator or purchaser may be involved, the steps for oil or gas theft are to be followed with the exception of steps 6 and 7 above. Steps 6 and 7 are unnecessary as the lost oil or gas would be an avoidable loss and, consequently, the royalty due.
Please note these are guidelines are general in nature. Guidance for dealing with a specific situation or case may be requested from law enforcement personnel at any time. Law enforcement investigations are normally initiated when actual loss is suspected or there are other circumstances that require investigation. Fluid minerals personnel are reminded to keep their supervisors involved in any discussions with law enforcement.
Timeframe: Effective immediately, details of known or suspected theft or fraud involving Federal or Indian onshore oil and gas leases are to be documented on the attached form.
Budget Impact: This IM has no budget impact.
Background: Oil and gas site security regulations, found at 43 CFR 3162.7-5, provide for greater product accountability, minimize the opportunity for theft or fraud of oil or gas, and facilitate detection when a theft or fraud has occurred.
Site security regulations require that operators of oil and gas on onshore Federal and Indian lands report any thefts or fraud of oil or gas from their leases to the authorized officers as soon as discovered but not later than the next working day. The BLM is responsible for investigating known or suspected theft or fraud of oil or gas from onshore Federal and Indian leases, whether it is reported by an operator, BLM employee, or outside source. It is important that BLM law enforcement personnel have all available information relating to the incident in order to proceed with an investigation. As such, documentation of the details of any known or suspected theft or fraud is critical. These data are also used by BLM oil and gas personnel to determine whether the loss of oil or gas was avoidable or unavoidable.
Manual/Handbook Sections Affected: Procedures will be included in the Inspection and Enforcement Production Inspections Handbook when it is developed.
Coordination: This IM was coordinated with the State Offices and Law Enforcement.
Contact: If you have any questions concerning the content of this IM, please contact me at
202-208-4201, or your staff may contact William Gewecke at 202-452-0337 or
Signed by: Authenticated by:
Tim Spisak Robert M. Williams
Acting, Assistant Director Division of IRM Governance,WO-560
Minerals and Realty Management