NPS updates oil and gas rights rules

The U.S. National Park Service has adopted a final rule updating its regulations governing the exercise of non-federal oil and gas rights. The NPS states that the rule improves its ability to protect park resources, values, and visitors from potential impacts associated with nonfederal oil and gas operations located within National Park Service units outside Alaska.

At issue are non-federal oil and gas rights within national park system units.  According to the NPS, these arise where the United States does not own the oil and gas interest, either because:

• The United States acquired the property from a grantor that did not own the oil and gas interest; or
• The United States acquired the property from a grantor that reserved the oil and gas interest from the conveyance.

Currently, 12 park system units are home to 534 non-federal oil and gas operations:

• Alibates Flint Quarries National Monument, Texas (5 operations)
• Aztec Ruins National Monument, New Mexico (4 operations)
• Big Cypress National Preserve, Florida (20 operations)
• Big Thicket National Preserve, Texas (39 operations)
• Big South Fork National River and Recreation Area, Tennessee/Kentucky (152 operations)
• Cumberland Gap National Historical Park, Tennessee (2 operations)
• Cuyahoga Valley National Park, Ohio (90 operations)
• Gauley River National Recreation Area, West Virginia (28 operations)
• Lake Meredith National Recreation Area, Texas (174 operations)
• New River Gorge National River, West Virginia (1 operation)
• Obed Wild and Scenic River, Tennessee (5 operations)
• Padre Island National Seashore, Texas (14 operations)

NPS has stated an expectation that future non-federal oil and gas operations within park boundaries could occur in up to 30 additional System units, based on "the presence of split estates, exploration and production occurring on adjacent or nearby lands, and likely increases in energy prices."

While the NPS promulgated regulations in 1978 governing the exercise of non-federal oil and gas rights, it had not updated these rules since then.  The final rule issued in November 2016 thus represents the first change in over 37 years.  Its changes include a broadening of scope, to cover all non-federal oil and gas operations within the boundary of a system unit outside of Alaska.
 This rule is effective December 5, 2016.