Drilling for oil on public land in the US is about to get more expensive

This story, originally published by High Country News and part of the Climate Desk collaboration, discusses the Department of Interior’s new rule imposing stricter financial requirements on oil and gas companies operating on federal public land. This rule, the first change since 1960, includes increased cleanup funds and higher royalty tax rates. Interior Secretary Deb Haaland expressed that these changes will benefit the public, cut speculation, and protect taxpayers. The rule, praised by environmental groups, aims to prevent abandonment of wells by raising bonding requirements. Despite these improvements, the bonding levels may not cover the full cost of cleaning up existing abandoned wells. This new rule also raises the royalty tax rate for extracted minerals on public land, benefiting Western states. While the oil and gas industry expressed discontent, environmental advocates believe the rule falls short of President Biden’s promise to ban drilling on public land.