Hiking

Interior calls for hiking rates on oil and gas companies to drill on federal lands – Fox Business

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New Jersey Republican Jeff Van Drew slams Biden’s energy policies as a ‘self created disaster’ on ‘The Evening Edit’ 

The Department of the Interior issued a long-awaited report on Friday ordered by President Biden when he first took office, when he paused leases to oil and gas contracts on federal lands citing concerns about climate change.

The report called for raising royalty rates for such leases on public lands, but stopped short of recommending an end to them complet…….

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New Jersey Republican Jeff Van Drew slams Biden’s energy policies as a ‘self created disaster’ on ‘The Evening Edit’ 

The Department of the Interior issued a long-awaited report on Friday ordered by President Biden when he first took office, when he paused leases to oil and gas contracts on federal lands citing concerns about climate change.

The report called for raising royalty rates for such leases on public lands, but stopped short of recommending an end to them completely as environmental activists have demanded.

A press release from the Interior said the report found “significant shortcomings in oil and gas leasing program,” and called for “significant reforms that should be made to ensure the programs provide a fair return to taxpayers, discourage speculation, hold operators responsible for remediation, and more fully include communities and Tribal, state, and local governments in decision-making.”

Rep. Deb Haaland, D-N.M., speaks during a Senate Committee on Energy and Natural Resources hearing on her nomination to be Interior Secretary, Tuesday, Feb. 23, 2021 on Capitol Hill in Washington. (Graeme Jennings/Pool via AP) (AP / AP Newsroom)

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“Our nation faces a profound climate crisis that is impacting every American,” Interior Secretary Deb Haaland said in a statement. “The Interior Department has an obligation to responsibly manage our public lands and waters – providing a fair return to the taxpayer and mitigating worsening climate impacts – while staying steadfast in the pursuit of environmental justice.”

Haaland added, “This review outlines significant deficiencies in the federal oil and gas programs, and identifies important and urgent fiscal and programmatic reforms that will benefit the American people.”

The report itself states that the royalty rates on federal oil and gas leases “have not been raised for 100 years,” noting that “states with leading oil and gas production apply royalty rates on State lands that are significantly higher than those assessed on Federal lands” and adding that the royalty rate charged by Texas, for instance, “can be double the federal rate.”

View of the pumpjack in the oil well of the oil field. The arrangement is commonly used for onshore wells producing little oil. Pumpjacks are common in oil-rich areas. (AP/iStock / AP Images)

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A chart included showed that the royalty rates for federal oil and gas leases are typically around 12.5%, while Texas’ rates are between 20-25%. By comparison, California, Montana, North Dakota, Utah and Wyoming rates are at 16.67%, while Oklahoma’s rate is at 18.75% and Colorado’s is at 20%, according to the report.

The Interior also wants to see a hike in bonding rates for companies engaged in the contracts, arguing that the levels have not been raised for 50 years.

But the proposal to raise royalty rates on …….

Source: https://www.foxbusiness.com/economy/interior-hiking-fees-oil-gas-companies-drill-federal-lands