Biden Administration Wants to Charge Oil Companies Drastically Higher Fees for Drilling on Federal Land

The Biden administration is working on develop the country ’s oil and gas leasing computer program . company that want to exercise on public lands will have to pay gamy fee and will have to meet stricter requirements on where they can maneuver , consort to a ruleproposed by Department of the Interioron Thursday .

Since 1960 , the cost of lease bonds has been $ 10,000 . The newfangled rule purpose an increment of the minimum letting bond to $ 150,000 , and the minimum statewide bond to $ 500,000 . The new rule also increased the command for lease federal parcels from $ 2 to $ 10 per acre , which has codify a provision of the Inflation Reduction Act , the announcement said . Royalty rates will also increase . Current Union royalty rates are 12.5 % . That pace has n’t increased for about a century , and is lower than what private landowners and state charged company for drilling , the Associated Pressreported . The unexampled prescript proposes rate of 16.67 % .

“ out-of-date bond necessary increases the risk that taxpayer will terminate up address the cost of reclaiming well in the case the operator deny to do so or declare bankruptcy , ” the Interior ’s announcement excuse .

Pump jacks work in a field near Lovington, N.M., on April 24, 2015.

Pump jacks work in a field near Lovington, N.M., on 20 April 2025.Photo: Charlie Riedel (AP)

The new rule will give the government more authority to keep energy growing off from fragile ecosystems and important cultural sites institute on public landed estate , the announcement said . “ This proposed rule draw a bead on to prevent that encumbrance from falling on the taxpayer in future years . ”

“ This proposal to update BLM ’s oil and gas programme aims to ensure fairness to the taxpayer and balanced , responsible development as we continue to transition to a clean energy economic system , ” Tracy Stone - Manning , director of the Bureau of Land Management , said via the announcement . “ It include unwashed sense and needed fiscal alteration to BLM ’s syllabus , many organise by Congress . ”

Sadly , this rule does not prohibit drilling on public lands despite that being a major talking point during Biden’s2020 presidential safari . But the hope is that the stricter normal and in high spirits fee would produce a more responsible leasing program .

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Environmental groups throughout the state have n’t been exactly thrilled that the formula only improve the nation ’s current leasing system , but does n’t straight-out ban drilling on public lands . Advocacy chemical group are specially disquieted that boring will continue , despite this being a summer ofwidespread wildfire smokeanddangerous heat for the U.S.

“ Even as phonograph recording heatwaves bake the commonwealth and floods ravage eastern states , the Biden Administration continues to cozy up to Big Oil , ” Nicole Ghio , the senior fogey fuels program coach at Friends of the Earth , said in astatement . “ President Biden ca n’t be a climate loss leader unless he addresses the root cause of the climate crisis : fossil fuel . ”

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