The Department of the Interior (United States) has announced a final rule to revise the Bureau of Land Management’s (BLM) oil and gas leasing regulations, in a bid to generate more money for taxpayers and address environmental harms from drilling on public lands. The Fluid Mineral Leases and Leasing Process rule revises fiscal terms of the onshore federal oil and gas leasing programme, including for bonding requirements, royalty rates, and minimum bids. Specifically, it increases the minimum lease bond from US$10,000 to US$150,000 and to US$500,000 for statewide bond, eliminating nationwide and unit bonds. In addition, the minimum royalty rates for leases has increased from 12.5% to 16.67%, and the minimum amount companies can bid at auctions for federal oil and gas leases from US$2/acre to US$10/acre.
The BLM is seeking to focus oil and gas leasing in areas that are the most likely to be developed - areas with existing infrastructure and high oil and gas potential - lessening development pressure on areas that contain sensitive wildlife habitat, cultural resources, high recreational usage, or other special resources and values.
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