Rule2025-15327
Offshore Downhole Commingling Regulatory Updates
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 13, 2025
Effective
October 14, 2025
Issuing agencies
Interior DepartmentSafety and Environmental Enforcement Bureau
Abstract
The Department of the Interior (DOI or Department), through the Bureau of Safety and Environmental Enforcement (BSEE), is revising the Outer Continental Shelf (OCS) downhole commingling regulations consistent with the "One Big Beautiful Bill Act" (OBBB). These administrative revisions update the regulations to ensure consistency with the OBBB when BSEE reviews a request for downhole commingling.
Full Text
<html>
<head>
<title>Federal Register, Volume 90 Issue 154 (Wednesday, August 13, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 154 (Wednesday, August 13, 2025)]
[Rules and Regulations]
[Pages 38935-38938]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-15327]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 90, No. 154 / Wednesday, August 13, 2025 /
Rules and Regulations
[[Page 38935]]
DEPARTMENT OF THE INTERIOR
Bureau of Safety and Environmental Enforcement
30 CFR Part 250
[Docket ID: BSEE-2025-0134; EEEE500000 256E1700D2 ET1SF0000.EAQ000]
RIN 1014-AA68
Offshore Downhole Commingling Regulatory Updates
AGENCY: Bureau of Safety and Environmental Enforcement (BSEE),
Interior.
ACTION: Direct final rule (DFR); request for comments.
-----------------------------------------------------------------------
SUMMARY: The Department of the Interior (DOI or Department), through
the Bureau of Safety and Environmental Enforcement (BSEE), is revising
the Outer Continental Shelf (OCS) downhole commingling regulations
consistent with the ``One Big Beautiful Bill Act'' (OBBB). These
administrative revisions update the regulations to ensure consistency
with the OBBB when BSEE reviews a request for downhole commingling.
DATES: The final rule is effective October 14, 2025, unless significant
adverse comments are received by September 12, 2025. If significant
adverse comments are received, the Department will publish notice in
the Federal Register before the effective date either withdrawing the
rule or issuing a new final rule that responds to significant adverse
comments.
ADDRESSES: You may submit comments on this rulemaking by any of the
following methods. Please use the Regulation Identifier Number (RIN)
1014-AA68 as an identifier in your message.
<bullet> Federal eRulemaking Portal: <a href="http://www.regulations.gov">http://www.regulations.gov</a>. In
the entry entitled, Enter Keyword or ID, enter BSEE-2025-0134, then
click search. Follow the instructions to submit public comments and
view supporting and related materials available for this rulemaking.
BSEE may post all comments submitted.
<bullet> Mail or hand-carry comments to the Department of the
Interior; Bureau of Safety and Environmental Enforcement; Attention:
Regulations and Standards Branch; 45600 Woodland Road, Sterling,
Virginia 20166. Please reference ``Offshore Downhole Commingling
Administrative Updates, 1014-AA68'' in your comments and include your
name and return address.
<bullet> Send comments on the information collection in this rule
to: Interior Desk Officer 1014-AA68, Office of Management and Budget;
by fax at 202-395-5806; or by email at <a href="/cdn-cgi/l/email-protection#402f2932211f3335222d293333292f2e002f2d226e252f306e272f36"><span class="__cf_email__" data-cfemail="bcd3d5cedde3cfc9ded1d5cfcfd5d3d2fcd3d1de92d9d3cc92dbd3ca">[email protected]</span></a>. In
addition, please send a copy of your comments to BSEE by one of the
methods previously listed.
Public Availability of Comments--Before including your address,
phone number, email address, or other personal identifying information
in your comment, you should be aware that your entire comment--
including your personal identifying information--may be made publicly
available at any time. In order for BSEE to withhold from disclosure
your personal identifying information, you must identify any
information contained in your comment submittal that, if released,
would constitute a clearly unwarranted invasion of your personal
privacy. You must also briefly describe any possible harmful
consequence(s) of the disclosure of the information, such as
embarrassment, injury, or other harm. While you can ask us in your
comment to withhold your personal identifying information from public
review, we cannot guarantee that we will be able to do so.
FOR FURTHER INFORMATION CONTACT: For questions, contact Kirk Malstrom,
Regulations and Standards Branch, (202) 258-1518, or by email:
<a href="/cdn-cgi/l/email-protection#ef9d8a889caf8d9c8a8ac1888099"><span class="__cf_email__" data-cfemail="e694838195a684958383c8818990">[email protected]</span></a>. Individuals in the United States who are deaf,
deafblind, hard of hearing, or have a speech disability may dial 711
(TTY, TDD, or TeleBraille) to access telecommunications relay services.
Individuals outside the United States should use the relay services
offered within their country to make international calls to the point-
of-contact in the United States.
SUPPLEMENTARY INFORMATION: The Department is issuing this rule as a
direct final rule. Although the Administrative Procedure Act (APA), 5
U.S.C. 551-559, generally requires agencies to engage in notice and
comment rulemaking, section 553 of the APA provides an exception when
the agency ``for good cause finds'' that notice and comment are
``impracticable, unnecessary, or contrary to the public interest.'' Id.
553(b)(B). The Department has determined that notice and comment are
unnecessary because this rule is noncontroversial; of a minor,
technical nature; and is unlikely to receive any significant adverse
comments.\1\ Significant adverse comments are those that oppose the
revisions in the rule and raise, alone or in combination, (1) reasons
why the rule is inappropriate, or (2) serious unintended consequences
of the revisions. A comment recommending an addition to the rule will
not be considered significant and adverse unless the comment
sufficiently explains how this direct final rule would be ineffective
without the addition.
---------------------------------------------------------------------------
\1\ See, e.g., Nat'l Nutritional Foods Ass'n. v. Kennedy, 572
F.2d 377, 385 (2d Cir. 1978) (```Unnecessary' means unnecessary so
far as the public is concerned, as would be the case if a minor or
merely technical amendment in which the public is not particularly
interested were involved.'')
---------------------------------------------------------------------------
Executive Summary
This direct final rule (DFR) revises the regulatory provisions in
30 CFR 250.1158 in response to the applicable provisions of the One Big
Beautiful Bill Act of 2025 (OBBB) Public Law 119-21, which was signed
into law on July 4, 2025, by the President. The Outer Continental Shelf
Lands Act (OCSLA) authorizes the Secretary to promulgate regulations
that carry out the provisions in OCSLA, including provisions that
require lessees to produce any oil or gas, or both, at rates consistent
with applicable law and orders to assure the maximum rate of production
that may be sustained without loss of ultimate recovery of oil or gas,
or both, under sound engineering and economic principles, and that is
safe for the duration of the activity. BSEE performs technical analyses
for downhole commingling to ensure that production methods meet OCSLA's
requirement for ultimate recovery and safety. This rule
[[Page 38936]]
revises the BSEE regulations to reflect the offshore commingling
language in the OBBB regarding safety and ultimate recovery and to
clarify how BSEE will apply the OBBB's standards when reviewing
commingling requests.
Table of Contents
I. Background
A. Statutory and Regulatory Authority and Responsibilities
B. Purpose and Summary of the Rulemaking
II. Section-by-Section Discussion of Changes
III. Procedural Matters
I. Background
A. Statutory and Regulatory Authority and Responsibilities
The Department's authority for this direct final rule is derived
from OCSLA, codified at 43 U.S.C. 1331-1356a. OCSLA, enacted in 1953
and substantially revised in 1978, authorizes the Secretary of the
Interior (Secretary) to regulate and administer mineral and oil and gas
exploration, development, and production operations on the OCS. The
Secretary has delegated authority to perform certain of these functions
to BSEE under Secretary's Order 3299.\2\
---------------------------------------------------------------------------
\2\ <a href="https://www.doi.gov/sites/doi.gov/files/elips/documents/3299a2-establishment_of_the_bureau_of_ocean_energy_management_the_bureau_of_safety_and_environmental_enforcement_and_the_office_of_natural_resources_revenue.pdf">https://www.doi.gov/sites/doi.gov/files/elips/documents/3299a2-establishment_of_the_bureau_of_ocean_energy_management_the_bureau_of_safety_and_environmental_enforcement_and_the_office_of_natural_resources_revenue.pdf</a>.
---------------------------------------------------------------------------
To carry out its responsibilities, BSEE regulates offshore oil and
gas and mineral operations to enhance the safety of oil and gas and
mineral exploration, development, and production on the OCS, and to
implement advancements in technology. BSEE also conducts onsite
inspections to ensure compliance with regulations, lease terms, and
approved plans and permits. Detailed information concerning the BSEE-
administered regulations and guidance to the offshore oil and gas and
mineral industries may be found on BSEE's website at: <a href="https://www.bsee.gov/protection">https://www.bsee.gov/protection</a>.
BSEE administers a regulatory program that covers a wide range of
OCS facilities and activities that offshore operators \3\ perform
throughout the OCS. See 30 CFR part 250. This DFR is applicable to
requests for BSEE approval of downhole commingling operations.
---------------------------------------------------------------------------
\3\ The regulations at 30 CFR part 250 generally apply to ``a
lessee, the owner or holder of operating rights, a designated
operator or agent of the lessee(s)'' (30 CFR 250.105 (definition of
``you'') and ``the person actually performing the activity to which
the requirement applies'' (30 CFR 250.146(c)). For convenience, this
preamble will refer to these regulated entities as ``operators''
unless otherwise indicated.
---------------------------------------------------------------------------
B. Purpose and Summary of the Rulemaking
Under section 50102 of the Act, it provides that the ``Secretary of
the Interior shall approve a request of an operator to commingle oil or
gas production from multiple reservoirs within a single wellbore
completed on the outer Continental Shelf in the Gulf of America Region
unless the Secretary of the Interior determines that conclusive
evidence establishes that the commingling--(1) could not be conducted
by the operator in a safe manner; or (2) would result in an ultimate
recovery from the applicable reservoirs to be reduced in comparison to
the expected recovery of those reservoirs if they had not been
commingled.'' OCSLA authorizes the Secretary to promulgate regulations
that carry out the provisions in OCSLA, including provisions that
require lessees to produce any oil or gas, or both, at rates consistent
with applicable law and orders to assure the maximum rate of production
which may be sustained without loss of ultimate recovery of oil or gas,
or both, under sound engineering and economic principles, and that is
safe for the duration of the activity. 43 U.S.C. 1344(a) and (g). BSEE
performs technical analyses for downhole commingling to ensure that
production methods meet OCSLA's requirement for ultimate recovery. This
rule revises the BSEE regulations to align with the offshore
commingling language in the OBBB to ensure that commingling will be
conducted in a safe manner and the operation will not reduce ultimate
recovery.
II. Section-by-Section Discussion of Changes
How do I receive approval to downhole commingle hydrocarbons? (Sec.
250.1158)
BSEE is revising paragraph (a) to include that, when reviewing the
downhole commingling request, the Regional Supervisor will approve a
request of an operator to commingle hydrocarbons unless he or she
finds, based on conclusive evidence, that the commingling could not be
conducted by the operator in a safe manner or that the commingling
would reduce ultimate recovery from the applicable reservoirs. This
revision implements the requirements related to downhole commingling in
the OBBB, thereby clarifying the overall expectations for commingling
operations.
III. Procedural Matters
Regulatory Planning and Review (E.O. 12866) and Improving Regulation
and Regulatory Review (E.O. 13563)
Executive Order 12866 provides that the Office of Information and
Regulatory Affairs (OIRA) in the Office of Management and Budget (OMB)
will review all significant rules. OIRA has determined that this direct
final rule is not significant.
Executive Order 13563 reaffirms the principles of Executive Order
12866, while calling for improvements in the Nation's regulatory system
to promote predictability, reduce uncertainty, and use the best, most
innovative, and least burdensome tools for achieving regulatory ends.
Executive Order 13563 directs agencies to consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public where these approaches are relevant, feasible,
and consistent with regulatory objectives. Executive Order 13563
emphasizes further that agencies must base regulations on the best
available science and that the rulemaking process must allow for public
participation and an open exchange of ideas. BSEE developed this direct
final rule in a manner consistent with these requirements.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA, 5 U.S.C. 601-612) requires an
agency to prepare a regulatory flexibility analysis for all rules
unless the agency certifies that the rule will not have a significant
economic impact on a substantial number of small entities. The RFA
applies only to rules for which an agency is required to first publish
notice of a proposed rule. See 5 U.S.C. 603(a) and 604(a). The RFA does
not apply because the Department is not required to publish a notice of
proposed rulemaking for this direct final rule.
Congressional Review Act
This direct final rule is not a major rule under the Congressional
Review Act, 5 U.S.C. 804(2). Specifically, the direct final rule: (1)
will not have an annual effect on the economy of $100 million or more;
(2) will not cause a major increase in costs or prices for consumers,
individual industries, Federal, State, or local government agencies, or
geographic regions; or (3) will not have significant adverse effects on
competition, employment, investment, productivity, innovation, or on
the ability of United States-based enterprises to compete with foreign-
[[Page 38937]]
based enterprises in domestic and export markets.
Unfunded Mandates Reform Act of 1995
This direct final rule would not impose an unfunded mandate on
State, local, or tribal governments or the private sector of more than
$100 million per year. The rule would not have a significant or unique
effect on State, local, or tribal governments or the private sector.
The rule merely revises the offshore commingling regulations to
implement requirements in the OBBB. Therefore, a statement containing
the information required by Unfunded Mandates Reform Act (2 U.S.C. 1531
et seq.) is not required.
Takings Implication Assessment (E.O. 12630)
Under the criteria in E.O. 12630, this direct final rule does not
have significant takings implications. The rule is not a governmental
action capable of interference with constitutionally protected property
rights. Therefore, a takings implication assessment is not required.
Federalism (E.O. 13132)
Under the criteria in E.O. 13132, this direct final rule will not
have federalism implications. This rule will not substantially and
directly affect the relationship between the Federal and State
governments. To the extent that State and local governments have a role
in OCS activities, this rule will not affect that role. Therefore, a
federalism assessment is not required.
Civil Justice Reform (E.O. 12988)
This direct final rule complies with the requirements of E.O.
12988. Specifically, this rule:
(1) Meets the criteria of section 3(a) requiring that all
regulations be reviewed to eliminate errors and ambiguity and be
written to minimize litigation; and
(2) Meets the criteria of section 3(b)(2) requiring that all
regulations be written in clear language and contain clear legal
standards.
Consultation With Indian Tribes (E.O. 13175)
BSEE strives to strengthen its government-to-government
relationships with federally recognized Indian Tribes through a
commitment to consultation with the Tribes and recognition of their
right to self-governance and Tribal sovereignty. We are also respectful
of our responsibilities for consultation with Alaska Native Claims
Settlement Act (ANCSA) Corporations and the Native Hawaiian Community.
BSEE is committed to compliance with E.O. 13175, Consultation and
Coordination with Indian Tribal Governments (dated November 6, 2000),
DOI's Policy on Consultation with Indian Tribes, Policy on Consultation
with Alaska Native Claims Settlement Act Corporations, and Policy on
Consultation with the Native Hawaiian Community (512 Departmental
Manual 4, dated November 30, 2022, 512 Departmental Manual 6, dated
November 30, 2022, and 513 Departmental Manual 1, dated January 16,
2025, respectively), and DOI's Procedures for Consultation with Indian
Tribes, Procedures for Consultation with Alaska Native Claims
Settlement Act Corporations, and Procedures for Consultation with the
Native Hawaiian Community (512 Departmental Manual 5, dated November
30, 2022, Departmental Manual 7, dated November 30, 2022, and 513
Departmental Manual 2, dated January 16, 2025, respectively). BSEE
evaluated this direct final rule under Executive Order 13175 and the
Department's consultation policies and procedures and determined that
it has no substantial direct effects on Federally recognized Indian
Tribes, ANCSA Corporations, or the Native Hawaiian Community and that
consultation under the Department's consultation policies is not
required.
Paperwork Reduction Act (PRA) of 1995
This rule does not contain any new information collection
requirements, and a submission to the OMB under the PRA, 44 U.S.C. 3501
et seq, is not required. BSEE may not conduct or sponsor, and you are
not required to respond to, a collection of information unless it
displays a currently valid OMB control number. Please reference, OMB
Control Number 1014-0019 which covers BSEE's Information Collection
under 30 CFR part 250; Subpart K, Oil and Gas Production Requirements.
National Environmental Policy Act of 1969 (NEPA)
This direct final rule does not constitute a major Federal action
significantly affecting the quality of the human environment. A
detailed statement under the National Environmental Policy Act (NEPA,
42 U.S.C. 4321 et seq.) is not required because this rule is covered by
a categorical exclusion applicable to regulatory functions ``that are
of an administrative, financial, legal, technical, or procedural
nature.'' 43 CFR 46.210(i). In addition, BSEE has determined that this
rule does not involve any of the extraordinary circumstances listed in
43 CFR 46.215 that would require further analysis under NEPA.
Data Quality Act
In developing this direct final rule, we did not conduct or use a
study, experiment, or survey requiring peer review under the Data
Quality Act (Pub. L. 106-554, app. C, sec. 515, 114 Stat. 2763, 2763A-
153-154).
Effects on the Nation's Energy Supply (E.O. 13211)
This direct final rule is not a significant energy action under the
definition in E.O. 13211 because the rule is not a significant
regulatory action under E.O. 12866, and it is not likely to have a
significant adverse effect on the supply, distribution, or use of
energy. Therefore, a Statement of Energy Effects is not required.
Clarity of This Regulation
We are required by E.O. 12866, E.O. 12988, and by the Presidential
Memorandum of June 1, 1998, to write all rules in plain language. This
means that each rule we publish must:
(1) Be logically organized;
(2) Use the active voice to address readers directly;
(3) Use clear language rather than jargon;
(4) Be divided into short sections and sentences; and
(5) Use lists and tables wherever possible.
If you feel that we have not met these requirements, send us
comments by one of the methods listed in the ADDRESSES section. To
better help us revise the rule, your comments should be as specific as
possible. For example, you should tell us the numbers of the sections
or paragraphs that you find unclear, which sections or sentences are
too long, or the sections where you feel lists or tables would be
useful.
List of Subjects in 30 CFR Part 250
Administrative practice and procedure, Continental shelf,
Environmental impact statements. Environmental protection, Government
contracts, Investigations, Mineral resources, Oil and gas exploration,
Penalties, Pipelines, Outer Continental Shelf--mineral resources, Outer
Continental Shelf--rights-of-way, Reporting and recordkeeping
requirements, Sulphur operations.
Adam G. Suess,
Acting Assistant Secretary, Land and Minerals Management.
For the reasons stated in the preamble, the Bureau of Safety and
[[Page 38938]]
Environmental Enforcement (BSEE) amends 30 CFR part 250 as follows:
PART 250--OIL AND GAS AND SULFUR OPERATIONS IN THE OUTER
CONTINENTAL SHELF
0
1. The authority citation continues to read as follows:
Authority: 30 U.S.C. 1751, 31 U.S.C. 9701, 33 U.S.C.
1321(j)(1)(C), 43 U.S.C. 1334.
0
2. Amend Sec. 250.1158 by revising paragraph (a) to read as follows:
Sec. 250.1158 How do I receive approval to downhole commingle
hydrocarbons?
(a) Before you perforate a well, you must request and receive
approval from the Regional Supervisor to commingle hydrocarbons
produced from multiple reservoirs within a common wellbore. The
Regional Supervisor will approve a request of an operator to commingle
hydrocarbons unless he or she finds, based on conclusive evidence, that
the commingling could not be conducted by the operator in a safe manner
or that the commingling would reduce ultimate recovery from the
applicable reservoirs. You must also include the service fee listed in
Sec. 250.125, according to the instructions in Sec. 250.126, and the
supporting information, as listed in the table in Sec. 250.1167, with
your request.
* * * * *
[FR Doc. 2025-15327 Filed 8-12-25; 8:45 am]
BILLING CODE 4310-VH-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on August 13, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.