The Biden administration resumes oil and gas leases on federal land but in a reduced capacity and with steeper fees

This past Friday, the Biden administration announced that it would resume granting lease sales for the drilling of oil and natural gas on federal lands.

However, as the Washington Examiner reported, the Biden administration intends to drastically decrease the amount of federal land available for drilling and plans to increase the royalty it charges companies to produce oil on federal lands.

In a recently released press release, the Department of the Interior said that it will make 144,000 acres of federal lands available for drilling. This is an 80% reduction in acreage that was originally designated for natural gas production. The department will also begin charging companies drilling royalties of 18.75% instead of 12.5%.

The release said, “The [Bureau of Land Management] will issue final environmental assessments and sale notices of upcoming oil and gas leases that reflect this strategic approach.”

“The lease sales will incorporate many of the recommendations in the Department’s report,” the release continued. “Including ensuring Tribal consultation and broad community input, reliance of the best available science including analysis of GHG emissions, and a first-ever increase in the royalty rate for new competitive leases to 18.75 percent, to ensure fair return for the American taxpayers and on par with rates charged by states and private landowners.” – READ MORE