Rental for Non-linear Energy Related Rights-of-Way and Permits

In Reply Refer To:

2800 (921 Spencer) P

November 25, 2020

EMS TRANSMISSION:  11/27/2020

Instruction Memorandum No. WY-2021-006

Expires: 09/30/2024

 

To: District Managers

From: Acting Deputy State Director, Minerals and Lands

Subject:  Rental for Non-linear Energy Related Rights-of-Way and Permits

 

Program Area:          Lands and Realty

Purpose:  This Instruction Memorandum (IM) transmits information regarding a revised schedule for rental fees for non-linear energy (oil and gas) related rights-of-way administered by the Bureau of Land Management in Wyoming (BLM WY).

Administrative or Mission Related: Mission related

Policy/Action:  The BLM WY realty staff will utilize the table below from the Appraisal & Valuation Information System (AVIS) Appraisal Case Number 00010423 , Surface Use Rental Rate Schedule for Small Oil and Gas Related Uses – Under 15 Acre Sites, to administratively establish the rental rates for non-linear energy related rights-of-way and small site permits.  The traditional method of individual appraisals for each right-of-way grant is not always economically beneficial to the U.S. Government, given the time and expense associated with each appraisal request.  Development of a rental schedule is justified in those cases where individual appraisals are not practical or financially feasible.  By using the schedule below, the BLM WY will provide consistent and equitable yearly rental rates to the public and right-of-way holders for the use of Federal lands associated with the oil and gas industry.  The use of this schedule will save processing time and a substantial amount of funds associated with appraisal costs.

ROW Site Surface Rental Per Acre – Sites from 0 to 15 Acres

 

Well Pads	$1,650
Water Disposal Wells	$1,650
Compressor Sites	$2,050
All other small Oil & Gas Sites	$1,100

 

Timeframe:  This policy is effective immediately.

Budget Impact:  The implementation of this IM will reduce the number of appraisal requests to the Appraisal and Valuation Services Office (AVSO) and will result in an overall savings to the program Statewide.

Background:  The BLM Wyoming State Office requested AVSO to do a study on March 23, 2019, to establish minimal rent fees for non-linear energy related rights-of-way and permit sites from 0 to 15 acres.  The outcome desired was to decrease processing time frames and reduce appraisal costs throughout the State. 

The previous market study attached to WY-IM No. 2009-017, Rental Rate for Small Non-Linear Rights-of-Way, has been reviewed and determined to be no longer competitive.  Therefore, WY IM

No. 2009-017 is no longer valid and should not be used.  Instead, sites formally covered under the schedule attached to WY IM No. 2009-017 are to now utilize the schedule on page 1 of this IM.   

This IM replaces the annual site-rental of $1,200 per up to 3-acres for disposal facilities site that are identified in IM-WY No. 2013-019, Rental for Produced Water Injection Facilities and Wells. The BLM will now utilize the table above for the new facility site rate. IM WY No. 2013-019 will continue to be utilized to charge the per barrel rate for non-commercial and commercial disposal wells.  IM WY

No. 2013-019 will remain in place for the per barrel rate fee until such time that a new market study is conducted, and the rates have been evaluated. 

The schedule above is not intended to be used for filming, linear rights-of-way, special recreation use permits, mineral, hydroelectric, and geothermal uses that may require a higher annual rent or have established schedules.  For sites not covered by this schedule, continue to implement the existing schedule, if appropriate, under WY IM No. 2015-20, Rent for Non-linear Rights-of-Way, and Permits, until further notice.

Manual/Handbook Sections Affected:  None.

Coordination:  The BLM Wyoming State Office has coordinated the issuance of this IM with AVSO.

Contact:  If there are any questions related to this IM, please contact Jennifer Weber at (307) 775-6257.

Signed by:                                                                               Authenticated by:

Timothy Wilson                                                                      Jessica Camargo

Acting Deputy State Director                                                 State Director’s Office

Minerals and Lands

Distribution

Field Manager                         1

CF                                           1