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Saturday, March 1, 2025

Hoeven reintroduces act targeting regulatory reform for mineral spacing

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Senator John Hoeven, U.S. Senator of North Dakota | Senator John Hoeven Official website

Senator John Hoeven, U.S. Senator of North Dakota | Senator John Hoeven Official website

Senator John Hoeven of North Dakota has reintroduced the Bureau of Land Management (BLM) Mineral Spacing Act, aimed at reforming the permitting process for energy development. The bill, supported by Senators John Barrasso, Kevin Cramer, and Steve Daines, seeks to eliminate redundant regulations and enhance the rights of private mineral holders. A companion bill was introduced in the House by Representative Stephanie Bice.

Senator Hoeven emphasized that the legislation is part of efforts to restore U.S. energy dominance by facilitating access to privately-held and state-owned resources hindered by federal bureaucracy. He stated, "It makes no sense that the federal government can block development when it only has a minority share of minerals in a given formation and no surface acre rights."

Senator Cramer highlighted the challenges faced by North Dakota energy producers due to mixed ownership of minerals with federal entities. He noted that the bill would remove federal permit requirements when federal ownership is not predominant. "Eliminating unnecessary hurdles for energy produced in North Dakota is certainly a major step toward securing American energy dominance," he said.

Senator Barrasso criticized Washington's permitting system as obstructive to American energy production. He remarked, "Our legislation will remove burdensome regulations to the permitting process for oil and gas wells in Wyoming and across the West."

In Montana, Senator Daines expressed support for reducing bureaucratic restrictions on local energy industries: "This bill will unleash American energy by slashing red tape restrictions."

The BLM Mineral Spacing Act proposes specific changes such as removing BLM permits when less than half of subsurface minerals are federally owned or leased and allowing royalty collection from these areas while subjecting producers to state laws.

Ron Ness from the North Dakota Petroleum Council commended Hoeven's approach: "By streamlining permitting in commingled interests, it will reduce red tape...for responsible energy development in North Dakota."

Congresswoman Bice reiterated her commitment to reducing bureaucratic barriers for energy producers facing opposition from current administration policies: "The BLM Mineral Spacing Act will streamline the permitting process...and empower private mineral owners."

Hoeven's legislative initiative continues his efforts against what he perceives as restrictive policies under President Biden’s administration related to taxpayer-owned resource management and leasing on federal lands.

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