![Pump jack working at sunset](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1280385662/image_1280385662.jpg?io=getty-c-w750)
![Pump jack working at sunset](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1280385662/image_1280385662.jpg?io=getty-c-w750)
Imaginima/E+ (via Getty Images)
The Biden administration announced Friday that it will significantly increase the costs for oil and gas companies to drill on federal lands, including bond requirements, royalty rates and minimum bids, in the run-up to the November presidential election.
US Department of the Interior Bureau of Land Management stated in the final rule Federal oil and gas leases will now require a minimum security deposit of $150,000 and a minimum statewide bond of $500,000, compared to the previous $10,000 lease deposit. The bond amount also adjusts every 10 years for inflation.
BLM said lease rates will increase from 12.5% to 16.67%, and the minimum amount companies can bid at oil and gas auctions will go from $2 to $10 per acre, in line with changes originally enshrined in the Anti-Inflation Act. said that it will increase. The rental rate for a 10-year lease will be doubled to $3/acre for the first two years and will eventually rise to $15/acre. Rates can be adjusted for inflation after 10 years.
The new rules increase the royalties that drillers must pay to the government for the first time since 1920, and the bonds required to cover cleanup costs for the first time since 1960.
The new regulations apply only to public lands that account for less than 10% of total U.S. production, but the announcement drew immediate condemnation from energy groups and Republican lawmakers, with President Biden calling for „making energy production economically uneconomic.'' We are doing everything in our power to make this possible.“ on federal land. ”
Several environmental groups praised the move, but Friends of the Earth criticized it for failing to address the climate impacts of fuel extraction on public lands.
Bloomberg also reported this week that the Biden administration is expected to unveil a wide-ranging plan. prevent oil and gas development It crosses much of Alaska's northern slope.
Earlier this week, the Environmental Protection Agency issued the following statement: final rule Limiting toxic pollution from chemical factories and removing carcinogenic chemicals from drinking water.