New rules for oil and gas leasing raise rates energy companies pay to drill on public lands

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The Biden administration is proposing new rules for the nation’s oil and gas leasing program to raise costs for energy companies to drill on public lands and strengthen requirements to clean up old wells where drilling is completed or abandoned

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

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.

Bureau of Land Management Director Tracy Stone-Manning, whose agency issued the new rule, said the proposal “aims to ensure fairness to the taxpayer and balanced, responsible development as we continue to transition to a clean energy economy. It includes common-sense and needed fiscal revisions to BLM’s program, many directed by Congress.”

 

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