New Rule Requires Oil and Gas Companies to Pay Higher Royalty Rates for Drilling on Public Lands
Friday, 12 April 2024, 18:47
New Rule on Royalty Rates for Oil and Gas Companies
The Interior Department introduced a new rule that requires oil and gas companies to pay higher royalty rates when drilling on public lands. This move aligns with the 2002 climate law and aims to increase revenue from natural resource extraction.
Key Points:
- Increased Royalty Rates: The royalty rates for oil drilling have been raised by more than one-third to 16.67 percent.
- Biden Administration Policy: This decision reflects the administration's commitment to environmental and economic objectives.
- Impact on Industry: Oil and gas companies operating on public lands will now incur higher costs for drilling activities.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.