Oil and gas companies should pay more to drill on public lands and waters, Interior Department says
WASHINGTON - In an effort to boost revenue and protect the environment, the Biden administration on Friday laid out plans to make fossil fuel companies pay more to drill on federal lands and waters.
The 18-page Interior Department report describes an "outdated" federal oil and gas leasing program that "fails to provide a fair return to taxpayers, even before factoring in the resulting climate-related costs."
The document calls for increasing the government's royalty rate - the 12.5 percent of profits fossil fuel developers must pay to the federal government in exchange for drilling on public lands - to be more in line with the higher rates charged by most private landowners and major oil and gas producing states. It also makes the case for raising the bond companies must set aside for cleanup before they begin new development...