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Biden administration raises costs to drill on public lands

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Friday, April 12, 2024

The Interior Department on Friday finalized a rule making it more expensive for oil and gas producers to drill on federally owned lands.  Several of the provisions in the rule — like raising the rent the government charges to oil companies for using its land and increasing the government’s share of the profits from that oil — were set out in law by the Democrats’ Inflation Reduction Act.  The Biden administration will additionally make it more expensive for drillers to abandon their oil wells after use instead of cleaning them up. The administration argues that current bonding rates do not do enough to ensure that companies clean up after themselves.  The administration described the changes as the first “comprehensive update” to the rules around drilling on federal lands since 1988.  “These are the most significant reforms to the federal oil and gas leasing program in decades, and they will cut wasteful speculation, increase returns for the public, and protect taxpayers from being saddled with the costs of environmental cleanups,” Interior Secretary Deb Haaland said in a written statement.  The rule comes one day after the administration moved to cut costs for producing renewable energy on public land. Specifically, the rule raises the royalty rate – the government’s share of the profits of oil and gas produced on public lands -- from 12.5 percent to 16.67 percent.  It also increases rent rates from $1.50 per acre for each of the first five years of a lease and $2 per acre for the next five to $3 per acre for the first two years and $5 per acre for the next six, going up to $15 per acre thereafter.  Further, the rule increases the minimum amount that companies can bid for to lease lands for drilling to $10 per acre, up from $2 per acre, and adjusts the price for inflation.  The move was celebrated by environmental activists.  “These new regulations are the kind of common-sense reforms the federal oil and gas leasing program has needed for decades. The days of oil and gas companies locking up public lands for decades for pennies on the dollar and leaving polluted lands, water, and air in their wake are over,” Athan Manuel, the Sierra Club’s lands protection program director, said in a written statement.  

The Interior Department on Friday finalized a rule making it more expensive for oil and gas producers to drill on federally owned lands. Several of the provisions in the rule — like raising the rent the government charges to oil companies for using its land and increasing the government’s share of the profits from that...

The Interior Department on Friday finalized a rule making it more expensive for oil and gas producers to drill on federally owned lands. 

Several of the provisions in the rule — like raising the rent the government charges to oil companies for using its land and increasing the government’s share of the profits from that oil — were set out in law by the Democrats’ Inflation Reduction Act. 

The Biden administration will additionally make it more expensive for drillers to abandon their oil wells after use instead of cleaning them up. The administration argues that current bonding rates do not do enough to ensure that companies clean up after themselves. 

The administration described the changes as the first “comprehensive update” to the rules around drilling on federal lands since 1988. 

“These are the most significant reforms to the federal oil and gas leasing program in decades, and they will cut wasteful speculation, increase returns for the public, and protect taxpayers from being saddled with the costs of environmental cleanups,” Interior Secretary Deb Haaland said in a written statement. 

The rule comes one day after the administration moved to cut costs for producing renewable energy on public land.

Specifically, the rule raises the royalty rate – the government’s share of the profits of oil and gas produced on public lands -- from 12.5 percent to 16.67 percent. 

It also increases rent rates from $1.50 per acre for each of the first five years of a lease and $2 per acre for the next five to $3 per acre for the first two years and $5 per acre for the next six, going up to $15 per acre thereafter. 

Further, the rule increases the minimum amount that companies can bid for to lease lands for drilling to $10 per acre, up from $2 per acre, and adjusts the price for inflation. 

The move was celebrated by environmental activists. 

“These new regulations are the kind of common-sense reforms the federal oil and gas leasing program has needed for decades. The days of oil and gas companies locking up public lands for decades for pennies on the dollar and leaving polluted lands, water, and air in their wake are over,” Athan Manuel, the Sierra Club’s lands protection program director, said in a written statement.  

Read the full story here.
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The actor was an unlikely ally in this week’s fiery debate over an endangered fish – and is, an insider confirms, ‘very engaged’See all our Australian election 2025 coverageGet our breaking news email, free app or daily news podcastWhen a fiery parliament debate erupted this week about Tasmania’s salmon industry, support for the endangered fish at the centre of the fight – the Maugean skate – came from an unlikely corner.Hours before the Albanese government’s controversial legislation to protect fish farming in the state’s Macquarie Harbour passed on Wednesday, global star Leonardo DiCaprio weighed in.Sign up for Guardian Australia’s breaking news email Continue reading...

When a fiery parliament debate erupted this week about Tasmania’s salmon industry, support for the endangered fish at the centre of the fight – the Maugean skate – came from an unlikely corner.Hours before the Albanese government’s controversial legislation to protect fish farming in the state’s Macquarie Harbour passed on Wednesday, global star Leonardo DiCaprio weighed in.“URGENT: This week the Australian government will decide the fate of Macquarie Harbour and has an opportunity to shut down destructive industrial non-native salmon farms, protecting the Maugean Skate,” he wrote in a post to his 60.4m Instagram followers.The shallow estuary off Tasmania’s coast was one of the most important places in the world, DiCaprio said, and “essential for the planet’s overall health and the persistence of biodiversity”.The actor regularly uses his platform to post about conservation concerns in many places around the world – and it’s not the first time he has highlighted the plight of Australia’s threatened species.Earlier this month, he warned clearing in Western Australia’s jarrah forests for bauxite mining, approved by the federal government, would affect species including the endangered woylie and the red-tailed black cockatoo.He has repeatedly raised awareness of threats to koalas, and last year, called on the Australian government to end native forest logging to protect the breeding habitat of the critically endangered swift parrot in Tasmania.He also drew attention to Guardian Australia reporting on land clearing in Queensland, writing in a post: “Australia has the highest rate of mammalian extinctions in the world … The only way to protect the hundreds of threatened Australian forest species is to end native forest logging.”But how involved is the actor and conservationist in the decision to post on these topics to his personal profile?More than people might expect, according to scientist Janice Chanson, the Australasian manager of Re:wild, the conservation organisation co-founded by DiCaprio.“He does 100% have the say on whether the post goes up,” Chanson said. “He is very engaged and he is very informed.”Re:wild, which works on conservation projects around the world, was founded in 2021 when Global Wildlife Conservation, a scientist-led environment organisation based in the United States, merged with the Leonardo DiCaprio Foundation.DiCaprio sits on Re:wild’s board, whose membership includes Razan Al Mubarak, the current president of the International Union for Conservation of Nature (IUCN). 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She only realised he had acted on the request “15 minutes after he had posted”.The federal government has faced criticism during this term for delays to promised environmental law reforms that a statutory review five years ago found were necessary in response to the failure by successive governments to protect Australia’s unique wildlife and habitats.During debate over the Tasmanian legislation, Greens senator Sarah Hanson-Young waved a dead salmon in the Senate, accusing the government of selling out its environmental credentials for “rotten, stinking extinction salmon” on the cusp of an election.Wrapped in plastic: Sarah Hanson-Young waves a dead salmon in Senate – videoThe passing of the bill drew condemnation from environment groups and prompted dismay from the Labor Environment Action Network.As the federal election was formally called on Friday, former Greens leader Bob Brown said the environment had become “the sleeper election issue, awakened by this week’s uproar in parliament”.“By ramming through protection for the polluting Atlantic salmon companies in Tasmania, both [Anthony] Albanese and [Peter] Dutton have catapulted the environment back into the headlines,” he said.

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