UNITED STATES DEPARTMENT OF THE INTERIOR

BUREAU OF LAND MANAGEMENT

WASHINGTON, D.C. 20240

[http://www.www.blm.gov](http://www.www.blm.gov/)

July 26, 2007

In Reply Refer To:

1610, 3100 (210/310/600) P

EMS TRANSMISSION 08/09/2007

Instruction Memorandum No. 2007-165

Expires: 09/30/2008

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  To:        AFO"S                                                          

                                                                            

  From:      Director                                                       

                                                                            

  Subject:   Split Estate Report to Congress\--Implementation of Fluid      
             Mineral Leasing and Land Use Planning Recommendations          
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**Program Areas:** Fluid Mineral Leasing and Operations, Land Use
Planning

**Purpose:** This Instruction Memorandum (IM) provides guidance and
procedures for implementation of fluid mineral leasing and land use
planning recommendations addressing Issues 1, 3, 4, and 5 within the
Split Estate Report to Congress dated December 2006.

**Policy/Action:** The following actions will be taken by State (SO) and
Field Offices (FO) to implement solutions to Issues 1, 3, 4, and 5 found
in the Split Estate Report to Congress dated December 2006. The Split
Estate Report to Congress may be found at
[www.blm.gov/bmp/Split_Estate.htm](http://www.blm.gov/bmp/Split_Estate.htm)

**Issue 1 \-- There is a need to further inform surface owners and
operators of their rights and responsibilities regarding Federal leasing
and oil and gas operations on split estate lands.** The Split Estate
Report to Congress recommends development of a consistent set of
outreach tools to inform surface owners and operators of the Bureau of
Land Management (BLM) leasing and development program.

SO and FOs will take the following actions to implement the
recommendations for Issue 1:

-   The brochure, "Split Estate: Rights, Responsibilities, and
    Opportunities" posted at
    [www.blm.gov/bmp/Split_Estate.htm](http://www.blm.gov/bmp/Split_Estate.htm)
    will be made available for distribution in SOs and FOs where there
    is oil and gas leasing or permit processing activity. The brochure
    will be made available in the BLM Public Rooms or entrance foyers,
    Competitive Oil and Gas Lease Sales, Resource Advisory Council
    meetings, and public/association outreach meetings. The brochure
    should be sent to operators requesting guidance on how to file an
    Application for Permit to Drill (APD) and made available at onsite
    meetings. It should also be provided to private surface owners when
    they are contacted regarding onsite meetings scheduled for
    consideration of APD proposals. The brochure is publication P-453
    and may be ordered in bulk from the BLM Printed Materials
    Distribution System.

-   All Competitive Sale Notices will include in the standard format, a
    link to the split estate website
    [www.blm.gov/bmp/Split_Estate.htm](http://www.blm.gov/bmp/Split_Estate.htm)
    . Attachment 1 contains a sample Competitive Sale Notice format that
    includes the above-referenced links.

-   The SOs will include on their public website, a link to the
    Washington Office (WO) Split Estate home page.

-   The WO has replaced the Leasing Brochure with "Questions and Answers
    About Oil and Gas Leasing" (Attachment 2) to address split-estate
    leasing and development. The Questions and Answers should be made
    available in informational packets distributed in response to public
    requests for oil and gas leasing information. The SOs should include
    a link to the Questions and Answers on its leasing web pages.

**Issue 3 \-- Surface owners would like to be notified about oil and gas
leasing and development at the beginning of the land use planning
stage.** The recommendation is to increase notice to private surface
owners on the BLM land use planning process with the help of cooperating
agencies or local governments.

The BLM SOs and FOs will take the following actions to implement the
recommendations for Issue 3 where management of split-estate minerals is
an issue:

-   The FOs will initiate outreach efforts to split-estate surface
    owners during the scoping process for land use plans to ensure the
    fullest involvement of the surface owners in the decision-making
    process for all planning documents addressing split-estate lands
    where there is a potential for mineral leasing. Outreach efforts
    should include, at minimum, targeted media outreach through local
    media or events, contact through surface owner groups, and public
    meetings in areas of significant split estate ownership.

-   The FOs will meet and/or contact local government officials prior to
    new planning starts to develop additional ways of informing and
    involving split estate surface owners in the land use planning
    process. The FO staff will maintain a consistent rapport with local
    officials regarding the status of the planning process.

-   All legal notices and public outreach materials announcing the
    initiation of land use plans should include a statement that the
    "plan decisions will address management of split-estate minerals"
    when this is the case.

-   The Split Estate Brochure will be made available at scoping/planning
    meetings.

**Issue 4 \-- Surface owners would like to be contacted when the BLM is
leasing Federal mineral estate underlying their property.** The Split
Estate Report to Congress recommends continuing the current process of
posting lease sales on the leasing website, but increase media
notification to inform the public of the availability of leasing
information, and work through local forums to explain the BLM leasing
process, and, where practical, identify areas proposed for leasing.

The BLM SOs and FOs will take the following actions to implement the
recommendations for Issue 4:

-   The FOs will use widely available media, such as newspaper, radio
    and television, to inform the public of the BLM websites that host
    lease sale information. This IM does not require offices to purchase
    advertisement in newspapers.

-   The FOs will work through local forums to maintain a dialogue on
    local leasing activity. Where practical, SOs and FOs will identify
    areas of leasing interest.

-   Oil and Gas Competitive Sale Notices should include links, where
    available, to sites that offer information regarding surface
    ownership and leasing information, such as illustrated in the
    attached sample Competitive Sale Notice (Attachment 1).

-   The SOs are encouraged to post on their websites, maps showing the
    location of parcels on their competitive sale lists.

**Issue 5- - Affected surface owners would like to be notified after
leases are issued, including who has purchased the lease, and what
stipulations are attached.** The BLM SOs should take steps to broaden
public outreach following lease sales.

The BLM SOs will take the following actions to implement the
recommendations for Issue 5:

-   Provide Competitive Sale Notices and Sale Results on external
    websites for viewing by the public.

-   Distribute public notices, news releases, articles and brochures
    that announce where the lease sale results can be found.

-   Ensure lease sale results are distributed to FOs for posting.

**Timeframe:** This policy is effective immediately.

**Budget Impact:** Minor.

**Background:** Under Section 1835 of the Energy Policy Act of 2005 (43
U.S.C. 15801), Congress directed the Secretary of the Interior to review
current policies and practices with respect to management of Federal
subsurface oil and gas development activities and their effects on the
privately owned surface, referred to as split estate. The Split Estate
Report to Congress submitted in December 2006 documents the findings
resulting from consultation on the split estate issue with affected
private surface owners, the oil and gas industry, and other interested
parties. This IM addresses implementation of recommendations for Issues
1, 3, 4, and 5 contained in the Split Estate Report to Congress.

**Manual/Handbook Affected:** Manual and Handbook 3120 Competitive
Leasing.

**Coordination:** This IM was coordinated between the WO Division of
Fluid Minerals and the Division of Planning and Science Policy.

**Contact:** Please direct questions to Jim Perry, Senior Natural
Resource Specialist, WO Division of Fluid Minerals (WO-310), at
202-452-5063; or by e-mail at <Jim_Perry@blm.gov> or Sandra Meyers,
Branch Chief, WO Division of Planning and Science Policy (WO-210), at
202-452-5151; or by e-mail at <sandra_meyers@blm.gov>

Signed by: Authenticated by:

Henri R. Bisson Robert M. Williams

Acting, Director Division of IRM Governance,WO-560

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2 Attachments

1- Notice of Competitive Oil and Gas Lease Sale (10 pp)

2- Questions and Answers About Oil and Gas Leasing (6 pp)