Commingling of Oil and Gas Production
Bureau of Land Management
National Headquarters
Washington, DC 20240
United States
3173 (310) P
This Instruction Memorandum (IM) provides the Bureau of Land Management (BLM) Field Offices (FOs) with instructions for implementing the commingling requirements contained in the One Big Beautiful Bill Act (OBBB).
Mission Related
The BLM is in the process of updating the commingling regulations at 43 CFR subpart 3173. Because the OBBB establishes commingling requirements, this policy serves as interim guidance to implement the provisions of the OBBB until the commingling regulations are finalized. Specifically, the OBBB directs BLM to consider all commingling applications by stating, in part, “allowing for the commingling of production from 2 or more sources (including the area of an oil and gas lease, the area included in a drilling spacing unit, a unit participating area, a communitized area, or non-Federal property).” This language broadens BLM’s authority to authorize commingling beyond the narrow scope reflected in the current version of 43 CFR 3173.14(a).
Until BLM issues revised regulations governing commingling, Field Offices (FOs) will separate commingling applications into two groups. The first group includes applications that comply with existing regulations. FOs should continue to process and approve these applications as expeditiously as possible.
The second group includes applications that cannot be approved under existing regulations because they do not contain the same lease interest, royalty rate, and revenue distribution or the lease is not producing in paying quantities. In these cases, FOs will review 43 CFR 3173.14(b)(5) to determine whether there are overriding considerations that would allow approval, such as it could be approved under the provisions of the OBBB. FOs should apply 43 CFR 3173.14(b)(5) to process commingling applications involving mixed ownership, including non-Federal cases. FOs should keep in mind the goal of the OBBB to broaden the applicability of commingling. FOs should err on the side of approval rather than denial.
If an applicant submits commingling applications that include State or Private cases, the FOs will request documentation from the applicant that grants BLM access to the measurement system. The documentation should include verification that measurement devices meet the requirements of 43 CFR 3173 for site security, 43 CFR 3174 for oil measurement, and 43 CFR 3175 for gas measurement.
FOs will coordinate commingling applications involving Indian leases with the Bureau of Indian Affairs (BIA) to ensure that Tribes or Individual Indian Mineral Owners consent to including the lease in the commingling application before approving the application. FOs will deny any applications where consent is withheld.
FOs will review commingling applications to ensure that the applicant agrees to install measurement devices for each source, uses an allocation method that achieves volume measurement uncertainty within ± 2 percent reported on a monthly basis, or proposes a periodic well testing methodology for approval. FOs may approve applications with a higher uncertainty if the applicant provides appropriate technical and economic justifications. FOs will work with the applicant to resolve applications that do not address one of these three requirements.
Because the OBBB defines production from multiple cases downhole as a single source, FOs should not require approval of a commingling application before operators combine production downhole. FOs should request allocation methodologies from the operator when production from multiple cases are combined downhole in a single production stream.
This IM is effective immediately.
We expect an increased demand on staff time with this policy. The BLM expects operators to submit additional commingling applications.
In this IM, the BLM provides instructions consistent with the Secretary’s priorities by making investments to support the Administration’s goals and responsible mineral resource development. The OBBB was signed into law July 4, 2025, and contains language broadening the scope of allowable commingling. The BLM regulations in effect on July 4, 2025, were promulgated effective January 17, 2017, and do not accurately reflect this expanded authority provided for in the OBBB.
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If you have any questions concerning the content or implementation of this IM, please contact Tina Roberts-Ashby at [email protected]. Your staff may contact John Ajak at [email protected] or Matthew Warren at [email protected].
This IM was coordinated with the BLM’s Division of Fluid Minerals, the BLM’s Energy, Minerals and Realty Management Directorate, and the DOI’s Office of the Solicitor.