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U.S. NEWS Friday 21 July 2023

New rules for oil and gas leasing raise rates to drill on public lands

By MATTHEW DALY ing sites after they are done
Associated Press or cap wells that are aban-
WASHINGTON (AP) — The doned.
Biden administration is pro- The previous level was far
posing new rules for the na- too low to force companies
tion’s oil and gas leasing to act and did not cover
program that would raise potential costs to reclaim a
costs for energy companies well, officials said. As a re-
to drill on public lands and sult, taxpayers frequently
strengthen requirements end up covering cleanup
for cleaning up old wells costs for abandoned or de-
where drilling is completed pleted wells if an operator
or abandoned. refuses to do so or declares
A rule proposed Thursday bankruptcy. Hundreds of
by the Interior Department thousands of “orphaned”
codifies provisions in the oil and gas wells and aban-
sweeping climate law ap- doned coal and hardrock
proved last year, as well mines pose serious safety
as the 2021 infrastructure hazards, while causing on-
law and recommendations going environmental dam-
from an Interior report on age.
oil and gas leasing issued in The Interior Department
November 2021. has made available more
The rule does not go so far than $1 billion in the past
as to prohibit new oil and two years from the infra-
gas leasing on public lands, Pump jacks work in a field near Lovington, N.M., April 24, 2015. structure law to clean up
as many environmental Associated Press orphaned oil and gas wells
groups have urged and as and gas companies,’’ said by Congress, known as the The new rate is expected to on public lands. The new
President Joe Biden prom- Laura Daniel-Davis, princi- Inflation Reduction Act, set remain in place until August rule aims to prevent that
ised during the 2020 cam- pal deputy assistant Interior royalty rates for drilling on 2032, after which it can be burden from falling on tax-
paign. But officials said the secretary for land and min- public lands at 16.67%, an increased. payers in the future.
proposal would lead to a erals management.Interior increase over the 12.5% The rule also would in- Bureau of Land Manage-
more responsible leasing “is committed to creating rate that oil and gas com- crease the minimum leas- ment Director Tracy Stone-
process that provides a a more transparent, inclu- panies paid for drilling rights ing bond paid by energy Manning, whose agency is-
better return to U.S. taxpay- sive and just approach to for a century. companies to $150,000, up sued the new rule, said the
ers. leasing and permitting that The previous rate was sig- from the previous $10,000 proposal “aims to ensure
The new rule “provides a serves the public interest nificantly lower than many established in 1960. The fairness to the taxpayer
fair return to taxpayers, ad- while protecting natural states and private land- higher bonding require- and balanced, responsible
equately accounts for en- and cultural resources on owners charge for drilling ment is intended to ensure development as we contin-
vironmental harms and dis- our public lands,” she add- leases on state or private that companies meet their ue to transition to a clean
courages speculation by oil ed. The climate law passed lands. obligations to clean up drill- energy economy. q

New U.S. sanctions are aimed at choking off Russia’s supplies

FATIMA HUSSEIN ogy to Russia. Blinken said in a statement. ues to wage its unprovoked and disrupt the Russian
Associated Press A UAE-based engineering “We will continue to stand and brutal war against arms industry’s ability to re-
WASHINGTON (AP) — The company that sent dozens with Ukraine for as long as it Ukraine, we will impose supply,” Adeyemo said in a
United States on Thurs- of shipments of electronics takes,” he said. sanctions to deprive Russia statement.q
day imposed sanctions on to Russia was also sanc- After the invasion’s one- of the technology it needs
roughly 120 firms and peo- tioned. year anniversary in Febru-
ple from Russia to the Unit- The latest sanctions build ary, U.S. officials said Rus-
ed Arab Emirates to Kyrgyz- on those imposed on Rus- sia’s metals and mining
stan in an effort to choke sia when the U.S. and oth- sector would be a focus
off Moscow’s access to er Group of Seven nations of future sanctions actions,
products, money and fi- rolled out a wave of global as well as reducing Russia’s
nancial channels that sup- actions during a Japan energy revenues through
port its invasion of Ukraine. summit in May. the imposition of a price
The sanctions imposed by “Since Russia launched cap on Russian oil.
the Treasury and State de- its full scale invasion of Deputy Secretary of the
partments target dozens of Ukraine, the United States, Treasury Wally Adeyemo
Russian mining, technology working with our allies and said Thursday’s actions rep-
and munitions firms and partners, has taken unprec- resent “another step in our
commercial banks. In addi- edented steps to impose efforts to constrain Russia’s
tion, a group of Kyrgyzstan- costs on Russia and pro- military capabilities, its ac-
based electronics firms and mote accountability for the cess to battlefield supplies,
its leadership were target- individuals and entities who and its economic bottom Emergency service personnel work at the site of a destroyed
ed as exporters of compo- support its illegal war,” U.S. line.” building after a Russian attack in Odesa, Ukraine, Thursday, July
nents and other technol- Secretary of State Antony “As long as Russia contin- 20, 2023.
Associated Press