Source: AFP
Oil companies that drill on public lands must post larger bonds and pay higher royalties under a rule finalized Friday by the Biden administration.
The development’s bond requirements were raised to $150,000 from $10,000, a level set in 1960 that no longer covers potential cleanup costs, the Bureau of Land Management (BLM) said in a news release.
In another change, the Home Office has increased royalty rates for leases to 16.67% from the previous level of 12.5%.
The changes were described by Interior Secretary Deb Haaland as the most significant reform to the leasing program “in decades” but were criticized by oil interests.
They come as President Biden emphasizes the environment in his re-election campaign against former President Donald Trump, who has derided climate change as an issue.
Friday’s action completes the department’s preliminary step taken in July 2023 that the Biden administration described as part of a “transition to a clean energy economy.”
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“Our public lands belong to all Americans, and the Bureau of Land Management remains committed to managing them in a balanced, responsible manner,” said BLM Director Tracy Stone-Manning.
“This rule will help protect critical wildlife habitat, cultural resources, and recreational values and ensure a fair return for the American taxpayer.”
Oil industry officials are reviewing the rule “to ensure that the Biden administration lives up to its responsibilities to American taxpayers and promotes fair and consistent access to federal resources,” said Holly Hopkins, vice president of policy at the American Petroleum Institute.
API, which had objected to the proposal during a public comment period, released data on the economic contribution of oil development on federal lands, citing about 170,000 jobs in five states.
“As energy demand continues to grow, oil and gas development on federal lands will be fundamental to maintaining energy security, strengthening our economy and supporting state and local conservation efforts,” Hopkins said.
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“Overly onerous land management regulations will jeopardize this critical energy supply,” Hopkins added.
Environmental group Evergreen Action called the change a “long overdue” step to boost biodiversity and the climate.
“Let’s be real: We need to get these oil companies off our public lands,” said Mattea Mrkusic of Evergreen Action. “But for now, we are happy that they will not be able to make it difficult for the public while they continue to use public funds.”
But Gladys Delgadillo, a climate activist at the Center for Biological Diversity, called on the Biden administration to go further.
“Updating the oil and gas rules for federal lands without setting a timeline for the phase-out is climate denial, pure and simple,” said Delgadillo, who has called for a complete end to drilling on federal lands.
“Public lands should be places for people to enjoy nature and wildlife to roam freely, not hotbeds of toxic pollution,” Delgadillo said.
Source: AFP