New rules unveiled by the Biden administration target oiland gas operators who lease public lands.
The administration called them a move to “ensure fair return to tapayers because they increase the costs for the oil and gas industry reported Fox News.
The Department of the Interior and the Bureau of Land Management unveiled the rules which revise a number of financial requirements for onshore fossile fuel leasing.
Specifically, it would:
- Raise royalties on oil that’s extracted, from 12.5 percent to 16.67 percent.
- Hike fees to rent land that’s not being produced on, from previously either $1.50 to $2 per acre to now $3 per acre during the first two years of the lease, $5 per acre for the next six years and $15 per acre after that.
- Boost minimum required lease bids, from $2 per acre to now $10 per acre.
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