FILE – Pump jacks work in a field near Lovington, N.M., April 24, 2015. Oil and gas companies will have to pay more to drill on public lands and satisfy stronger requirements to clean up old or abandoned wells under a final rule issued Friday, April 12, 2024, by the Biden administration. The Interior Department rule does not go so far as to prohibit new oil and gas leasing on public lands, as many environmental groups have urged and as President Joe Biden promised during the 2020 campaign.
The new rule does not go so far as to prohibit new oil and gas leasing on public lands, as many environmental groups have urged and as Democratic President Joe Bidencampaign. But officials said the proposal would lead to a more responsible leasing process that provides a better return to U.S. taxpayers.
Along with efforts to clean up so-called orphaned, or abandoned, wells, “these reforms will help safeguard the health of our public lands and nearby communities for generations to come,” Haaland said. The rule also would increase the minimum leasing bond paid by energy companies to $150,000, compared with the previous $10,000 established in 1960. The higher bonding requirement is intended to ensure that companies meet their obligations to clean up drilling sites after they are done or cap wells that are abandoned.
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