The Biden administration on Friday finalized a rule that will make it more expensive for oil and gas companies to drill on public lands, despite soaring energy prices and inflation still trending upwards. The Department of the Interior announced it has revised the Bureau of Land Management’s oil and gas leasing regulations, which will raise royalty rates for the first time in 100 years and update the federal onshore oil and gas leasing framework.
The Department of the Interior said the rule will ensure a balanced approach to the development of the lands, provide a fair return to taxpayers and help steer oil and gas development away from important wildlife habitat and important cultural sites. BLM will also preference land lease offers that are close to existing infrastructure or have a high potential for oil and gas production.