U.S. DEPARTMENT OF THE INTERIORBUREAU OF LAND MANAGEMENT
UNITED STATES DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
WASHINGTON, D.C. 20240
January 22, 2013
In Reply Refer To:
3160 (310) P
EMS TRANSMISSION 01/28/2013
Instruction Memorandum No. 2013-056
To: All Field Office Officials
Attn: Special Investigations Group
From: Assistant Director, Minerals and Realty Management
Subject: Oil and Gas Theft Reporting Guidelines and Format
Program Area: Oil and Gas Management.
Purpose: This Instruction Memorandum (IM) replaces WO-IM-2009-115, Oil and Gas Theft Reporting Guidelines and Format, and provides field offices (FO) with guidelines and procedures when reporting suspected theft or fraud of oil and/or gas.
Policy/Action: All FOs must use the attached form to document and process reports of theft or fraud involving oil or gas from onshore Federal or Indian Oil and Gas leases. Complete the Oil and Gas Theft/Fraud Report (attachment 1) when any party reports oil or gas theft 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 is available to all personnel working with fluid minerals and law enforcement personnel working on fluid minerals matters. Use the attached fillable form as a template for this report.
Steps to report suspected theft or fraud of oil or gas:
When BLM personnel suspect that oil or gas theft or fraud has occurred or is occurring and the operator or purchaser may be involved, step 4 is unnecessary as the lost oil or gas would be an avoidable loss and, consequently, the royalty due.
Please note these guidelines are general in nature. Law enforcement will provide additional guidance for dealing with a specific situation or case as appropriate. Fluid minerals personnel must keep their supervisors involved in any discussions with law enforcement and this IM does not pre-empt the responsibilities of the local FO to execute compliance for the oil and gas program.
If the suspected theft, fraud, or abuse involves a BLM employee or allegations of agency mismanagement, send the referral directly to the SIG:
Shannon Tokos, Chief, Special Investigations Group
Office of Law Enforcement and Security
2815 H Road
Grand Junction, Colorado 81506-1781
Alternatively, report through the OIG Hotline at:
Toll Free: 1-800-424-5081
DC Area: 202-208-5300
Timeframe: Effective immediately, all offices must use the attached form to document details of known or suspected theft or fraud involving Federal or Indian onshore oil and gas leases.
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. Vigilance is necessary given the potential for theft across 23,000 producing leases and roughly $3 billion in royalties collected annually.
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 “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 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. The BLM oil and gas personnel use this data to determine whether the loss of oil or gas was avoidable or unavoidable.
Manual/Handbook Sections Affected: WO-310 will include these procedures in the Inspection and Enforcement Production Inspections Handbook, currently under development.
Coordination: WO-310 coordinated preparation of this IM with the State Offices and Law Enforcement.
Contact: If you have any questions concerning the content of this IM, please contact Michael D. Nedd, at 202-208-4201, or your staff may contact Steven Wells, Division Chief, Division of Fluid Minerals, at 202-912-7143 or email@example.com or Mike Wade at 303-236-1930 or firstname.lastname@example.org.
Signed by: Authenticated by:
Michael Nedd Robert M. Williams
Assistant Director Division of IRM Governance,WO-560
Minerals and Realty Management