Interior officials say the proposed rule would prevent tax-payers from being on the hook to clean up oil and gas wells and implement reforms from the Inflation Reduction Act.
© AP Photo/Matthew Brown
The draft rule from the Bureau of Land Management (BLM) seeks to “prevent that burden from falling on the taxpayer in future years” by raising required bond amounts, according to a press release.
It would also implement fee hikes that were included in Democrats’ climate, tax and health care bill passed last year.
Specifically, it would:
Raise royalties on oil that’s extracted, from 12.5 percent to 16.67 percent.
Hike fees to rent land that’s not being produced on, from previously either $1.50 to $2 per acre to now $3 per acre during the first two years of the lease, $5 per acre for the next six years and $15 per acre after that.
Boost minimum required lease bids, from $2 per acre to now $10 per acre.
The rule also proposes to prioritize oil and gas development on public lands where there’s existing infrastructure or significant potential for oil and gas production and that is not near “important wildlife habitat or cultural sites,” according to the press release.
BLM Director Tracy Stone-Manning described the changes as a win on climate change and a way to get fair returns for taxpayers because the lands are government-owned.
“This proposal to update BLM’s oil and gas program aims to ensure fairness to the taxpayer and balanced, responsible development as we continue to transition to a clean energy economy,” she said in a statement.
