Federal Onshore Oil and Gas Statewide Bonds; Extension of Phase-In Deadline
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Issuing agencies
Abstract
The Bureau of Land Management (BLM, we) is issuing this direct final rule (DFR) to amend BLM regulations to extend the phase-in date for compliance with the minimum bond amount for Statewide oil and gas bonds. The current regulation requires operators to increase or replace existing Statewide bonds to meet the $500,000 minimum bond amount by June 22, 2026. This rule extends that deadline to June 22, 2027, aligning it with the phase-in date for individual lease bonds.
Full Text
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<title>Federal Register, Volume 90 Issue 241 (Thursday, December 18, 2025)</title>
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[Federal Register Volume 90, Number 241 (Thursday, December 18, 2025)]
[Rules and Regulations]
[Pages 59069-59071]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23228]
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DEPARTMENT OF THE INTERIOR
Bureau of Land Management
43 CFR Part 3100
[A2407-014-004-065516, #O2509-014-004-125222]
RIN 1004-AF52
Federal Onshore Oil and Gas Statewide Bonds; Extension of Phase-
In Deadline
AGENCY: Bureau of Land Management, Interior.
ACTION: Direct final rule; request for comments.
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SUMMARY: The Bureau of Land Management (BLM, we) is issuing this direct
final rule (DFR) to amend BLM regulations to extend the phase-in date
for compliance with the minimum bond amount for Statewide oil and gas
bonds. The current regulation requires operators to increase or replace
existing Statewide bonds to meet the $500,000 minimum bond amount by
June 22, 2026. This rule extends that deadline to June 22, 2027,
aligning it with the phase-in date for individual lease bonds.
DATES: The final rule is effective on February 17, 2026, unless
significant adverse comments are received by January 20, 2026. If
significant adverse comments are received, notice will be published in
the Federal Register before the effective date either withdrawing the
rule or issuing a new final rule that responds to any significant
adverse comments.
ADDRESSES: You may submit comments by one of the following methods:
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
In the Search box, enter the Docket Number ``BLM-2025-0269'' and click
the ``Search'' button. Follow the instructions at this website.
<bullet> Mail, personal, or messenger delivery: U.S. Department of
the Interior, Director (630), Bureau of Land Management, 1849 C St. NW,
Room 5646, Washington, DC 20240, Attention: 1004-AF52.
FOR FURTHER INFORMATION CONTACT: Peter Cowan, Senior Minerals Leasing
Specialist, email: <a href="/cdn-cgi/l/email-protection#c0b0a9a3afb7a1ae80a2acadeea7afb6"><span class="__cf_email__" data-cfemail="66160f050911070826040a0b48010910">[email protected]</span></a>; telephone: 720-838-1641.
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.
For a summary of the final rule, please see the abstract
description of the document in Docket Number BLM-2025-0269 on
<a href="http://www.regulations.gov">www.regulations.gov</a>.
SUPPLEMENTARY INFORMATION: Oil and gas leasing on Federal lands managed
by the BLM is governed by the Mineral Leasing Act of 1920 (MLA), 30
U.S.C. 181 et seq., and other pertinent statutes. The BLM published a
final rule on April 23, 2024 (89 FR 30916) that, among other topics,
updated bonding requirements for Federal onshore oil and gas
operations, including increases to the minimum bond amounts and phase-
in deadlines for when operators must update their existing bonds. Under
43 CFR 3104.1(c)(1), operators must bring existing Statewide bonds into
compliance with the increased bond amount by June 22, 2026. This DFR
will extend the deadline to comply with the existing Statewide bond
requirement from June 22, 2026, to June 22, 2027. That is the same
deadline for individual lease bonds in 43 CFR 3104.1(c)(2).
The BLM seeks to delay this requirement as we are pursuing a
separate but related rulemaking in the coming months, which could
significantly change the timeline for this requirement. This delay will
provide operators with relief while the BLM pursues this change.
This rule is consistent with broader energy policy goals, as
reflected in Executive Order (E.O.) 14154, ``Unleashing American
Energy'' (90 FR
[[Page 59070]]
8353, Jan. 20, 2025), and E.O. 14156, ``Declaring a National Energy
Emergency'' (90 FR 8433, Jan. 20, 2025), which emphasize:
<bullet> Reducing regulatory burdens on domestic energy producers;
<bullet> Promoting energy independence through expanded access to
Federal lands;
<bullet> Streamlining compliance timelines to avoid unnecessary
disruptions to operations; and
<bullet> Encouraging capital investment in exploration and
production by minimizing near-term financial strain.
Extending the Statewide bond phase-in deadline aligns with these
priorities by providing operators with additional time to secure
financing or to restructure bonding instruments. It also ensures parity
between Statewide and lease-level bonding compliance, simplifying
implementation and reducing confusion.
This action reflects the Department of the Interior's commitment to
regulatory certainty, economic growth, and responsible resource
development. It does not alter the minimum bond amounts.
Procedural Matters
Executive Order (E.O.) 12866--Regulatory Planning and Review and E.O.
13563--Improving Regulation and Regulatory Review
E.O. 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 rule is not
significant.
E.O. 13563 reaffirms the principles of E.O. 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. E.O. 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. E.O. 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. The Department developed this rule in a manner consistent with
these requirements.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA, 5 U.S.C. 601 through 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 a proposed rule. See 5 U.S.C. 603(a) and 604(a). As the
Department is not required to publish a notice of proposed rulemaking
for this DFR, the RFA does not apply.
Congressional Review Act
This rule is not a major rule under the Congressional Review Act, 5
U.S.C. 804(2). Specifically, the DFR: (a) will not have an annual
effect on the economy of $100 million or more; (b) will not cause a
major increase in costs or prices for consumers, individual industries,
Federal, State, or local government agencies, or geographic regions;
and (c) will not have significant adverse effects on competition,
employment, investment, productivity, innovation, or on the ability of
U.S.-based enterprises to compete with foreign-based enterprises in
domestic and export markets.
Unfunded Mandates Reform Act
This rule does not impose an unfunded mandate on State, local, or
Tribal governments, or the private sector, of more than $100 million
per year. The rule does not have a significant or unique effect on
State, local, or Tribal governments, or the private sector. The rule
merely extends the deadline for complying with the increased Statewide
bond requirement. Therefore, a statement containing the information
required by the Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) is
not required.
E.O. 12630--Governmental Actions and Interference With Constitutionally
Protected Property Rights
This rule does not result in a taking of private property or
otherwise have regulatory takings implications under E.O. 12630. The
rule merely extends an existing phase-in period. The rule will not
result in private property being taken for public use without just
compensation because this rule only extends the compliance deadline for
an existing Statewide bond requirement. A takings implication
assessment is therefore not required.
E.O. 13132--Federalism
Under the criteria of section 1 of E.O. 13132, this rule does not
have sufficient federalism implications to warrant the preparation of a
federalism summary impact statement. This rule will not have
substantial direct effects on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government. A
federalism summary impact statement is not required.
E.O. 12988--Civil Justice Reform
This DFR complies with the requirements of E.O. 12988. Among other
things, this rule:
(a) Meets the criteria of section 3(a) requiring that all
regulations be reviewed to eliminate errors and ambiguity and be
written to minimize litigation;
(b) Meets the criteria of section 3(b)(2) requiring that all
regulations be written in clear language and contain clear legal
standards.
E.O. 13175--Consultation and Coordination With Indian Tribal
Governments
The Department of the Interior strives to strengthen its
government-to-government relationship with Indian Tribes through a
commitment to consultation with Tribes and recognition of their right
to Tribal self-governance and sovereignty. The Department evaluated
this DFR under E.O. 13175 and the Department's consultation policies.
The Department determined that this DFR has no substantial, direct
effects on federally recognized Indian Tribes and that consultation
under the Department's Tribal consultation policies is not required.
The rule merely revises the Federal regulations to extend the phase-in
date for Federal onshore Statewide bond amounts.
Paperwork Reduction Act
This rule does not impose any new information collection burdens
under the Paperwork Reduction Act. OMB previously approved the
information collection activities contained in the existing regulations
and assigned OMB control number 1004-0185. This rule does not impose an
information collection burden because the Department is not making any
changes to the information collection requirements.
National Environmental Policy Act
This DFR 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
[[Page 59071]]
administrative, financial, legal, technical, or procedural nature.'' 43
CFR 46.210(i). In addition, the Department 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.
E.O. 13211--Actions Concerning Regulations That Significantly Affect
Energy Supply, Distribution, or Use
This DFR is not a significant energy action as defined in E.O.
13211. Therefore, a statement of energy effects is not required.
List of Subjects in 43 CFR Part 3100
Government contracts, Government employees, Mineral royalties, Oil
and gas exploration, Oil and gas reserves, Public lands--mineral
resources, Reporting and recordkeeping requirements, Surety bonds.
Leslie Beyer,
Assistant Secretary, Land and Minerals Management.
For the reasons stated in the preamble, the Bureau of Land
Management amends 43 CFR part 3100 as follows:
PART 3100--OIL AND GAS LEASING
0
1. The authority citation for part 3100 continues to read as follows:
Authority: 25 U.S.C. 396d and 2107; 30 U.S.C. 189, 306, 359,
and 1751; 43 U.S.C. 1701 et seq.; and 42 U.S.C. 15801.
0
2. Revise Sec. 3104.1(c) to read as follows:
Sec. 3104.1 Bond amounts.
* * * * *
(c) Principals must increase or replace all bonds not meeting the
appropriate minimum bond amount in paragraph (a) of this section by:
(1) June 22, 2027, for Statewide; and
(2) June 22, 2027, for lease bonds.
* * * * *
[FR Doc. 2025-23228 Filed 12-17-25; 8:45 am]
BILLING CODE 4331-29-P
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