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BLM Kills Its Own Enforcement Roadmap for Oil-and-Gas Measurement Rules

BLM Kills Its Own Enforcement Roadmap for Oil-and-Gas Measurement Rules

A decade-long fight over royalties, tech delays, and “energy dominance” just tilted toward industry again.

Today: BLM walks away from NTL-5

Overview

BLM just pulled the plug on a proposed Notice to Lessees that would have told operators, plainly, how and when the government planned to enforce its oil-and-gas measurement rules. After a year of letting that guidance sit in draft form, the agency now says it’s walking away to cut “compliance burdens.”

The stakes are bigger than paperwork. Measurement rules decide how much oil and gas the public gets paid for—and whether outdated, inconsistent field practices become the default again. The withdrawal also signals how Trump’s “Unleashing American Energy” directive can reach down into the most technical corners of oil-and-gas oversight and change what enforcement looks like on the ground.

14 Sources:
+8
Federal Register The White House Bureau of Land Management Justia (GAO summary) U.S. Department of the Interior Reuters Federal Register Federal Register Bureau of Land Management Bureau of Land Management Federal Register Bureau of Land Management U.S. Department of the Interior U.S. Department of the Interior

Key Indicators

2017-01-17
Measurement rules effective date
The core measurement regulations have been “effective” for years, but unevenly enforced.
3 months
Proposed enforcement ramp for older oil facilities
Draft NTL-5 signaled BLM would stop declining enforcement for pre-2017 facilities.
1 year
Proposed delay for BLM-approved equipment/software requirements
Draft NTL-5 tied enforcement to publication of test procedures plus a one-year runway.
15 days
Gas analysis report submission clock in the rules
The regulation sets a tight reporting requirement, but the promised system remains missing.

People Involved

Doug Burgum
Doug Burgum
U.S. Secretary of the Interior (Leading Interior’s “energy dominance” agenda)
Donald Trump
Donald Trump
President of the United States (Driving energy-focused deregulatory push via executive orders)
Tina Roberts-Ashby
Tina Roberts-Ashby
Acting Assistant Director, Energy, Minerals, and Realty Management (BLM) (Signed BLM’s decision declining to adopt NTL-5)
David Rosenkrance
David Rosenkrance
Assistant Director for Energy, Minerals, and Realty Management (BLM) (at time of proposal) (Signed the proposed NTL-5 in 2024)
John Ajak
John Ajak
Acting Division Chief, Fluid Minerals Division (BLM) (Point of contact listed for NTL-5 withdrawal decision)

Organizations Involved

Bureau of Land Management
Bureau of Land Management
Federal Agency
Status: Withdrew proposed measurement guidance; remains responsible for enforcing 43 CFR Part 3170

BLM manages vast federal surface land and subsurface minerals and sets day-to-day oil-and-gas compliance expectations.

U.S. Department of the Interior
U.S. Department of the Interior
Cabinet Department
Status: Directed BLM to reconsider NTL-5 under an energy-burden reduction agenda

Interior oversees BLM and sets the political direction that shapes enforcement priorities on public lands.

U.S. Government Accountability Office
U.S. Government Accountability Office
Legislative Branch Oversight Agency
Status: Issued long-running critiques that pushed Interior toward updated measurement standards

GAO’s measurement warnings helped trigger the modernization push that later bogged down in implementation.

American Petroleum Institute
American Petroleum Institute
Industry Trade Association
Status: Industry voice raising implementation concerns on BLM measurement requirements

API has pressed BLM on how measurement rules should be phased in and enforced.

North Dakota Petroleum Council
North Dakota Petroleum Council
Industry Trade Association
Status: Cited by BLM as raising implementation concerns about measurement provisions

A major Bakken-region industry group whose feedback helped shape BLM’s phased enforcement approach.

Timeline

  1. BLM walks away from NTL-5

    Decision

    BLM declines to finalize NTL-5, citing EO 14154 and Interior direction.

  2. Trump issues “Unleashing American Energy” order

    Executive Action

    EO 14154 tells agencies to identify actions that burden domestic energy development.

  3. BLM proposes NTL-5 to clarify what it will enforce

    Proposal

    BLM proposes NTL-5, setting clearer compliance expectations for measurement rules.

  4. BLM delays GARVS-linked enforcement again

    Guidance

    BLM issues IM 2018-077; GARVS delays push back certain gas reporting enforcement.

  5. BLM issues more guidance to manage phase-in chaos

    Guidance

    BLM issues IM 2018-069 to facilitate early adoption and process variance requests.

  6. BLM delays key enforcement due to missing IT functionality

    Guidance

    BLM issues IM 2017-032 delaying some enforcement tied to FMP electronic filing.

  7. Measurement rules officially take effect

    Rule Changes

    Oil-and-gas measurement regulations become effective across federal and Indian leases.

  8. BLM finalizes modern oil measurement rule

    Rule Changes

    BLM replaces Order 4 with 43 CFR subpart 3174 measurement standards.

  9. BLM extends comment windows on major measurement rewrites

    Rulemaking

    BLM reopens comment periods for site security and oil-and-gas measurement proposals.

  10. GAO sounds the alarm on measurement oversight

    Oversight

    GAO warns Interior lacks assurance that production volumes are accurately measured.

Scenarios

1

BLM Lets Measurement Enforcement Drift Back to a Patchwork Status Quo

Discussed by: Interior’s “energy dominance” messaging and reporting by Reuters and AP on deregulatory priorities

With NTL-5 gone, BLM leans on case-by-case discretion, targeting only the clearest noncompliance while avoiding a broad enforcement ramp for older facilities. Operators keep living under “effective” rules that are unevenly applied, and the missing IT backbones (like GARVS) remain an excuse to postpone deadlines. This becomes the quiet, durable outcome because it requires no new rulemaking—just continued non-decision.

2

Interior Replaces NTL-5 With Softer Guidance: “Best Practices,” Not a Countdown Clock

Discussed by: Interior Department communications around streamlining and selective enforcement

BLM drafts a replacement document that keeps technical recommendations but strips out the hard edges—no “we will enforce on X date” language, more room for variances, and more deference to state standards where possible. That would let Interior claim it didn’t weaken measurement integrity while still avoiding a compliance shock for operators.

3

A Royalty Scandal or Audit Forces BLM to Rebuild a Tougher Measurement Push

Discussed by: GAO’s historical focus on measurement assurance and Interior’s long-running revenue-protection reforms

A major underpayment case, a GAO/OIG spotlight, or sustained pressure from tribes and states triggers a political need to show taxpayers are being paid correctly. BLM responds by reviving the substance of NTL-5 through a new NTL, tighter inspection priorities, or even rule updates—accepting short-term industry backlash to reduce long-term revenue risk.

Historical Context

GAO’s 2010 Measurement Warning (GAO-10-313)

2010

What Happened

GAO warned Interior that its verification efforts did not provide reasonable assurance that production volumes were accurately measured. The critique framed measurement as a direct royalty risk and pushed Interior toward clearer standards and stronger oversight tools.

Outcome

Short term: Interior faced pressure to standardize practices and strengthen measurement governance.

Long term: The push helped set the stage for BLM’s 2015–2016 measurement modernization.

Why It's Relevant

It shows why measurement “guidance” isn’t trivial—it’s how royalties become real.

Deepwater Horizon Aftermath: Interior Splits Revenue Collection From Regulation

2010-2011

What Happened

After Deepwater Horizon exposed conflicts inside the old Minerals Management Service, Interior separated missions into distinct entities and formally established ONRR to focus on revenue collection and enforcement. The reform logic was simple: oversight fails when the same structure tries to promote development and police it.

Outcome

Short term: Interior reorganized, moved revenue functions, and tightened accountability structures.

Long term: The department institutionalized the idea that measurement and revenue assurance need dedicated systems.

Why It's Relevant

NTL-5’s withdrawal cuts against that reform instinct by weakening clarity without replacing it.

The BLM Methane Waste Rule Pendulum

2016-2024

What Happened

BLM’s waste-prevention rules swung from Obama-era tightening to Trump-era delays and revisions, then back into court fights and a Biden-era rewrite. The cycle became a template: regulate, pause, litigate, rewrite—repeat.

Outcome

Short term: Industry and states fought compliance costs; agencies relied on delays and revisions.

Long term: Policy whiplash normalized uncertainty and made enforcement hinge on politics.