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

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Oil and gas companies would have to pay more to drill on public lands and satisfy stronger requirements to clean up old or abandoned wells under a new rule announced Thursday by the Biden administration.

Interior"is committed to creating a more transparent, inclusive and just approach to leasing and permitting that serves the public interest while protecting natural and cultural resources on our public lands,″ she added.

The previous level was far too low to force companies to act and did not cover potential costs to reclaim a well, officials said. As a result, taxpayers frequently end up covering cleanup costs for abandoned or depleted wells if an operator refuses to do so or declares bankruptcy. Hundreds of thousands of “orphaned” oil and gas wells and abandoned coal and hardrock mines pose serious safety hazards, while causing ongoing environmental damage.

The BLM, an Interior Department agency, oversees more than 245 million acres of public lands, primarily in the West. But he and other advocates said Biden should keep his promise to end new drilling on public lands. “In addition to making polluters pay with these fiscal reforms, it’s time for the Biden administration to align our federal fossil fuel program with America’s transition to a clean energy economy,'' said Mattea Mrkusic of Evergreen Action, another environmental group.

The moratorium drew sharp criticism from congressional Republicans and the oil industry, even as many environmentalists and Democrats urged Biden to make the leasing pause permanent.

 

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