January 29, 2026

DENVER – Western Energy Alliance today applauded the Department of the Interior’s leadership and the Bureau of Land Management (BLM) for announcing a draft rule to implement the One, Big Beautiful Bill Act’s (OBBB) provisions on commingling. The rule will enable more energy to be produced on public lands with greater efficiency. The following statement is attributable to Melissa Simpson, president of the Alliance:

“We’ve been waiting a long time to produce more energy for American consumers and with greater efficiencies. Representing oil and natural gas producers in the West, we have grappled with the unique constraints associated with operating in a patchwork quilt of land where you have federal public lands with state and private property interspersed throughout. So it just makes sense to combine facilities and reduce the footprint across all types of lands and to help unleash American energy. Commingling also benefits taxpayers because the OBBB was written in a way to ensure the federal government receives the appropriate amount of royalty revenues as equipment is combined. It’s a win-win.”

As mandated by the OBBB signed into law in July 2025, BLM’s proposed rule will clarify that applications to commingle oil and natural gas production from multiple sources shall be approved—regardless of ownership, lease terms, or royalty rates—prior to the point of royalty measurement, provided established metering and allocation standards are met.

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