Biden rule hikes fees for oil projects on public lands

AFP | New York, United States                                           

The Daily Tribune – www.newsofbahrain.com

Oil companies drilling on public lands must post larger bonds and pay higher royalties under a rule finalized Friday by the Biden administration.

The bonding requirements for development increased 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 press release.

In another shift, the Department of the Interior lifted royalty rates for leases to 16.67 percent from the previous level of 12.5 percent.

The changes were described by Interior Secretary Deb Haaland as the most significant reform to the leasing program "in decades" but were criticized by petroleum interests.

They come as President Biden emphasizes the environment in his reelection campaign against former president Donald Trump, who has mocked climate change as an issue.

Friday's action finalizes the department's preliminary step taken in July 2023 that the Biden administration described as part of a "transition to a clean energy economy."

"Our public lands are owned by all Americans, and the Bureau of Land Management remains committed to managing them in a balanced, responsible way," said BLM Director Tracy Stone-Manning.

"This rule will help protect critical wildlife habitat, cultural resources, and recreational values, and it will ensure a fair return for American taxpayers."

Petroleum industry officials are reviewing the rule "to ensure the Biden administration is upholding its responsibilities to the American taxpayers and promoting fair and consistent access to federal resources," said Holly Hopkins, vice president of upstream policy at the American Petroleum Institute.