By David Wethe
The US Department of Interior is slashing the bonds oil and natural gas companies must provide when drilling on federal land by 95% in a move to encourage more energy exploration.
The bond required in onshore federal drilling leases will be cut to $25,000 from the $500,000 imposed during the Joe Biden administration, the department announced Monday. Such bonds ensure that the costs of capping and cleaning up any wells abandoned by drillers don’t fall to taxpayers.
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The change will be subject to a 60-day public comment period once it is published in the Federal Register.
In a separate move, the department is eliminating some provisions and clarifying definitions in the waste-reduction rules that have applied to drilling-permit applications.
“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,” Interior Secretary Doug Burgum said in the statement.
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