Today, the Department of the Interior (DOI) rescinded the Office of Natural Resources Revenue’s (ONRR) “Consolidated Federal Oil & Gas and Federal & Indian Coal Valuation Rule.” Chairman Rob Bishop (R-UT) issued the following statement:

“This rescindment is another important step by the Trump administration to position Interior as a facilitator of responsible energy development. I look forward to working with Secretary Zinke on ONRR policies, and many other areas, to spur more investment in Federal and Indian lands, foster greater regulatory certainty and eliminate or address pre-existing policies that work against these goals.”  

“The federal government shouldn’t be picking winners and losers when it comes to U.S. energy production, and this is exactly what the ONRR’s regulation did,” Rep. Scott Tipton (R-CO) stated. “By adding more red-tape, complexity, and confusion to the mineral valuation process, the regulation created uncertainty for businesses, a disincentive for responsible development of our natural resources on federal land, and ultimately hurt hardworking Americans, their families, and their communities the most. I am pleased that the Department of the Interior is acting to permanently rescind this rule.”

Background:

In June 2016, DOI issued its final rule valuating royalties from oil, natural gas and coal produced on Federal and Tribal lands. The rule, according to DOI, was designed "to offer greater simplicity, certainty, clarity, and consistency in product valuation for mineral lessees and mineral revenue recipients.” Click here to view Chairman Bishop's statement.

In February 2017, DOI announced its decision to postpone the implementation of the rule.  Click here to view Chairman Bishop’s statement.  

In April 2017, DOI issued a proposed rule to fully repeal the rule.