DOI targets Biden-era oil and gas bonding rule in new proposal
(WO) — The U.S. Department of the Interior has proposed revisions to federal oil and gas leasing and waste prevention regulations that would lower bonding requirements, streamline leasing procedures and reduce compliance costs for operators on federal lands.
The coordinated rulemakings, announced June 22, target the Bureau of Land Management's onshore oil and gas leasing regulations and its waste prevention rule governing venting, flaring and royalty obligations.
Among the most significant proposed changes is the elimination of the Biden-era statewide bonding requirement of $500,000. Interior is proposing to restore the previous statewide bond level of $25,000 while seeking public input on future bonding requirements.
The agency also estimates that revisions to the waste prevention rule could reduce compliance costs by nearly $17 million annually through the removal of certain permitting and reporting requirements.
According to Interior, the proposed leasing rule would authorize noncompetitive leasing following competitive auctions, eliminate the expression-of-interest leasing preference review process, shorten public participation periods from 90 days to 10 days, modernize filing fees and provide replacement lease sales when scheduled offerings are canceled or delayed.
Additional provisions would limit lease suspension approvals to one year while establishing new timing requirements.
The proposed waste prevention revisions would eliminate requirements for waste minimization plans and self-certification statements submitted with applications for permit to drill. The rule would also establish clearer definitions for avoidable and unavoidable losses, authorized venting and flaring, emergency situations and measurement standards.
Interior said the revised waste prevention regulation would be renamed "Royalty for Oil and Gas Lost from Onshore Federal and Indian Leases."
Secretary of the Interior Doug Burgum said the proposals are intended to improve regulatory certainty and reduce barriers to investment while maintaining responsible resource management on public lands.
The proposed rules are part of the administration's broader effort to expand domestic energy development and revise federal policies affecting oil and gas operations. Publication in the Federal Register will initiate a 60-day public comment period for both rulemakings.
