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.