14 NOVEMBER 2024 WorldWide Drilling Resource® Booth 819 Updated Gas and Oil Leasing Regulations Adapted from Information by the U.S. Department of the Interior and BLM The Department of the Interior announced a final rule to revise the Bureau of Land Management’s (BLM) gas and oil leasing regulations. By focusing gas and oil leasing in areas with existing infrastructure and high gas and oil potential, these regulations help protect critical wildlife habitat, cultural resources, and recreational values, while ensuring a fair return to taxpayers. The Fluid Mineral Leases and Leasing Process rule revises outdated fiscal terms of the onshore federal gas and oil leasing program, which includes bonding requirements, royalty rates, and minimum bids. The rule helps steer gas and oil development away from important wildlife habitats and cultural sites, by establishing BLM’s preference to offer land for lease that is close to existing infrastructure or has high potential for gas and oil production. The BLM will continue to meet America’s energy needs while leading the way, in sustainabilitity. “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,” said Secretary Deb Haaland. This rule reinforces the BLM’s leadership role in energy development by: j Ensuring responsible leasing and diligent development to minimize conflicts with other resources while ensuring the BLM can continue to manage public lands for multiple uses. j Implementing key fiscal reforms, including updating royalty rates, rental rates, and minimum bids on BLM-managed public lands. j Modernizing bonding requirements for leasing, development, and production to ensure taxpayers do not bear the cost of orphaned wells on public lands. The previous lease bond amount was $10,000; the rule has increased the minimum lease bond amount to $150,000 and the minimum statewide bond to $500,000, and it eliminates nationwide and unit bonds. It will now provide an adequate incentive for companies to meet their reclamation obligations, and cover the potential costs to reclaim a well should this obligation not be met, so taxpayers will not be left at risk for the cost of cleanup. The bond amount will be adjusted for inflation every ten years. “Our public lands are owned by all Americans, and the BLM remains committed to managing them in a balanced, responsible way,” said BLM Director Tracy Stone-Manning. G&O
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