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BLM Oil and Gas Bonding Procedures

Report Information

Date Issued
Report Number
12-0085
Report Type
Management Advisory
External Entity
Bureau of Land Management
Description

After our recent investigation regarding the failure of oil and gas operators to report and pay royalties, we found that initial bonds for insuring well plugging and abandonment are frequently insufficient, and that a BLM State office may not adequately evaluate these bonds or sufficiently follow the guidance in BLM Instruction Memorandum IM-2010-161: “Federal Oil and Gas Bonds.” After our investigation, multiple BLM inspectors and supervisors noted that well bonding was insufficient.

We made three recommendations that, if implemented, may significantly reduce the need to use appropriated funds to plug, abandon, and reclaim orphaned wells.

Joint Report
No
Agency Wide
Yes
Local File
BLM%20Oil%20and%20Gas%20Bonding%20Procedures.pdf
Oversight Report File
https://www.doioig.gov/sites/doioig.gov/files/BLM%20Oil%20and%20Gas%20Bonding%2…