Interior Seeks Easier Oil, Gas Leasing on Public Land

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The Interior Department moved Monday to roll back two Biden administration oil and gas regulations that the Trump administration said burden domestic energy production.

The department issued two proposed rules it said would modernize federal onshore oil and natural gas policy, reduce administrative requirements, and strengthen the nation's long-term energy production.

Interior said the proposals are intended to implement President Donald Trump's energy agenda and provisions of the One Big Beautiful Bill Act.

"Energy Dominance requires regulatory clarity," Interior Secretary Doug Burgum said in a news release. "These targeted updates cut through the red tape that has historically deterred investment, ensuring our public lands remain a reliable engine for economic growth and innovation."

The first proposal would lower the minimum statewide bond requirement for oil and gas operators on federal land from $500,000 to $25,000. It would also shorten public participation time frames for new oil and gas leases from 90 days to 10 days.

In 2024, the Biden administration raised bonding requirements for oil and gas companies to ensure their wells are cleaned up. The Trump administration is proposing to return those rates to pre-Biden levels.

The agency uses the money to help pay for cleanup and reclamation work at abandoned oil and gas wells. The Biden administration increased the requirements to ensure that companies, not taxpayers, covered cleanup costs.

Interior officials said the higher bonding requirements exceeded those required under federal law, discouraged investment on federal land, and created barriers for smaller operators.

The department would also eliminate some provisions and clarify definitions in Bureau of Land Management waste-reduction rules governing drilling-permit applications.

The Biden-era rule required oil and gas companies to certify that they would capture produced gas or submit plans to reduce methane emissions.

The Interior Department also said it would revise definitions governing when venting and flaring, both of which release methane, are authorized, though it did not specify the new definitions.

Interior officials said the Biden-era waste-prevention rule created duplicative regulatory requirements and increased compliance costs for producers.

"Under the Biden administration, the leasing rule was a primary vehicle to restrict oil and natural gas development on lands explicitly open to multiple uses that include energy development," Melissa Simpson, president of the Western Energy Alliance, an oil industry trade group, said in a statement to The New York Times. "It did so through excessive increases to bonding rates that targeted small and mid-sized operators."

The National Wildlife Federation said the change to bonding requirements "jeopardizes wildlife habitat and increases risk of pollution to rivers, wetlands, and groundwater while burdening communities with costly cleanup."

"When companies profit from the use of our natural resources, they should be responsible for restoring the damage they create," Aaron Kindle, the federation's director of sporting advocacy, said in a news release. "We need bonding rates that ensure oil and gas companies, not taxpayers, pay for cleaning up after development so wildlife and clean water can persist for future generations."

Michael Katz

Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.

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