Oil and gas companies must pay more to drill on public lands under new Biden administration rule

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Officials said the proposal would lead to a more responsible leasing process that provides a better return to U.S. taxpayers

companies will have to pay more to drill on public lands and satisfy stronger requirements to clean up old or abandoned wells, according to a final rule issued Friday by the Biden administration.

The plan codifies provisions in the climate law, known as the Inflation Reduction Act, as well as the 2021 infrastructure law and recommendations from an Interior Department report on oil and gas leasing issued in 2021. Haaland and other officials said the new rule provides a fair return to taxpayers and focuses oil and gas leasing in areas that are the most likely to be developed, especially those with existing infrastructure and high oil and gas potential. The rule will ease pressure to develop areas that contain sensitive wildlife habitat, cultural resources or recreation sites, officials said.

 

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