Applications to combine production from several sources must be approved
What the document says“The Secretary of the Interior shall approve applications allowing for the commingling of production from 2 or more sources”
The section replaces subsection (q) of section 17 of the Mineral Leasing Act with a rule requiring the Secretary to approve applications to commingle production from two or more sources, including lease areas, drilling spacing units, unit participating areas, communitized areas or non-federal property, before production reaches the royalty measurement point and whatever the ownership, royalty rates or acreage shares, where the applicant agrees to install measurement devices for each source, to use an allocation method holding volume measurement uncertainty within plus or minus 2 percent reported monthly, or to use an approved periodic well testing method. Production from several leases or units through a single wellbore counts as one source, and the Secretary may still allow higher uncertainty levels where technical and economic justifications are given.
What the document actually says“The Secretary of the Interior shall approve applications allowing for the commingling of production from 2 or more sources”
The Interior Secretary must say yes to these requests. They ask to mix output from two or more sources.
The operator must meter each source or use an approved way. The count must be right within 2 percent. One well drawing from several leases counts as one source.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.