Opinion | Trust

Editorial: Osage Nation loses out with energy development rules

Monday, July 6, 2015

The Osage Nation and the Obama administration signed a $380 million settlement in October 2011. The settlement established a negotiated rule-making committee between the tribe and the Bureau of Indian Affairs to develop new energy development regulations. Photo by BIA / Flickr

Oklahoma newspaper believes fewer oil and gas revenues will go to members of the Osage Nation under new oil and gas drilling rules issued by the Bureau of Indian Affairs:

Regulation of energy production has long been the province of state governments, but under the Obama administration there’s been a concerted push to transfer more power to the federal government. To view the decidedly negative outcome of such a transition, look no further than Osage County, Oklahoma.
Osage County is unique because members of the Osage tribe hold mineral rights under a federal treaty. Tribal shareholders are paid a percentage of the revenue from oil and gas production on the county’s 1.4 million acres. Thus, the U.S. Bureau of Indian Affairs oversees much regulation of energy production in the county, unlike other areas.
In 2011, the federal government reached a settlement with tribal officials in a long-running lawsuit concerning federal mismanagement of oil revenues. The government paid tribal shareholders $380 million to settle the lawsuit, and announced the BIA would draft new regulations regarding oil and gas development.
The outcome of that rule-making process, according to the Osage Producers Association, is a system where fewer wells will be drilled or maintained in Osage County — and fewer dollars will go to tribal members for mineral rights.
The prior Code of Federal Regulations for Osage County leases ran 18 pages. The new version runs 155 pages. Previously, the bonding requirement for producers was $5,000 per quarter section (roughly 160 acres); now it will be $5,000 per well. Instead of having 12 months to terminate non-producing wells, producers will have 120 days.

Get the Story:
Editorial: Osage County feeling pinch of administration's anti-fossil fuel mindset (The Oklahoman 7/5)

Also Today:
Osage Nation joins oil industry in asking federal court to block 'arbitrary,' 'burdensome' regulations (The Tulsa World 7/2)
Osage oil, gas: ‘Fight for survival’ (The Bartlesville Examiner-Enterprise 6/11)
BIA to offer training on new regulations for oil lessees (The Bartlesville Examiner-Enterprise 6/10)
Standing Bear administration plans to develop oil and gas (The Osage New s6/2)

Federal Register Notices:
Leasing of Osage Reservation Lands for Oil and Gas Mining (May 11, 2015)
Leasing of Osage Reservation Lands for Oil and Gas Mining (November 1, 2013)
Leasing of Osage Reservation Lands for Oil and Gas Mining (August 28, 2013)