On June 23, 2026, the Bureau of Land Management (BLM) announced a proposed rule that would roll back commonsense standards to reduce the waste of taxpayer-owned methane on federal lands during oil and gas development.

American taxpayers own valuable natural gas resources on federal lands, yet oil and gas companies are allowed to vent, flare, and leak this resource, often without compensating taxpayers. The proposed rule would increase waste of this domestic energy resource, costing federal taxpayers millions in foregone revenue and exposing nearby communities to avoidable health and safety risks.

Autumn Hanna, Vice President of Taxpayers for Common Sense, issued the following statement:

"Routine venting and flaring of natural gas from federal lands wastes valuable energy resources owned by American taxpayers. This proposed rule moves us in the wrong direction, reverting to decades-old policies that are no longer suited to today's oil and gas industry. 

True energy dominance means getting full value from our energy resources—not squandering them through preventable waste. The government-sanctioned loss of taxpayer-owned methane not only deprives taxpayers of millions of dollars in royalty revenues but also denies consumers access to a valuable domestic energy resource and creates long-term liabilities."

Background

The BLM oversees the development of federally owned oil and gas by auctioning off leases for oil and gas exploration and development to private companies. In return for the right to develop and profit from our taxpayer-owned resources, these companies pay taxpayers a royalty—a set percentage of the value of oil and gas they produce—along with bids at competitive auctions, rent on nonproducing leases, and other minor fees.

For too long, operators have been allowed to waste massive quantities of methane—the main component of natural gas— much of it royalty-free. In the ten-year period from FY2012 to FY2021, oil and gas operators reported losing 300 billion cubic feet (bcf) of natural gas from leases on federal lands, which had an estimated value of $949 million.

In March 2024, the BLM released a final rule, entitled the "Waste Prevention, Production Subject to Royalties, and Resource Conservation" rule, to address this egregious waste of natural gas on federal lands. The rule consists of five main components:

• Preventing Unreasonable Waste: Operators "must use all reasonable precautions to prevent the waste of oil or gas" from federal leases.   

• Requiring Waste Minimization Plan or Self-Certification to Use 100% of Gas: Operators must report how they plan to capture and sell 100% of gas produced, unless it is lost in an emergency. BLM can delay or deny permits to drill if it finds the plans insufficient.  

• Determining Royalty-Free "Unavoidably Lost" Gas: Operators can only emit a certain amount of "unavoidably lost" gas—gas lost when an operator "has taken reasonable steps to avoid waste" but may be experiencing an emergency or other situations (ex. well testing, facility and pipeline maintenance)—before being charged a royalty.  

• Rapid Leak Detection and Repair: Operators must develop a "leak detection and repair" (LDAR) program that regularly inspects all equipment and conducts prompt maintenance/repairs when problems are discovered.  

• Reporting on Wasted Gas: Operators must report all vented and flared volumes—both avoidable and unavoidable losses—and maintain detailed records of these events.  

The BLM estimated that the final rule would generate $51 million additional royalty revenue per year for gas that is flared above the royalty-free volume.

In September 2025, the Trump Administration released its government-wide rulemaking calendar, including a proposal to rescind these commonsense updates. At the same time, the Administration moved forward with plans to push back two important deadlines by one year— Flare Monitors and Leak Detection and Repair. This delay was finalized earlier this year.

Today's proposed rule would eliminate waste minimization plans and self-certification, increase the amount of methane that operators can flare royalty-free, eliminate requirements for LDAR, and reinstate the old regulatory framework that had previously allowed oil and gas operators to waste publicly owned methane for free, among other changes.

Additional Resources

• December 2025 – BLM Delays 2024 Methane Waste Rule Amidst Repeal Plans: TCS analysis of the delay two important parts of a Biden-era rule to limit methane waste from oil and gas development on federal lands 

• August 2025 – BWAF Podcast — Ep. 96: Up in Smoke: The Methane Waste Crisis Costing Taxpayers Billions: TCS podcast on how methane waste from oil and gas development on federal lands is causing economic damage to taxpayers and harming communities. 

• May 2025 – Taxpayer Costs of Methane Emissions Fact Sheet: TCS factsheet on the taxpayer costs of methane released into the atmosphere during oil and gas production. 

• March 2024 – TCS Statement on BLM Final Rule to Reduce Methane Waste on Federal Lands: TCS statement on the final "Waste Prevention, Production Subject to Royalties, and Resource Conservation" rule to address wasted natural gas from oil and gas development on federal lands.