Happy Thursday! The sun is shining, and it’s turned out to be a beautiful day! We hope you have had a chance to have lunch outside to enjoy it!
Did anyone
happen to read the Oil & Gas Journal’s Daily Update Newsletter on April
15, 2024, their article titled, “US BLM boosts costs to drill on federal lands
in sweeping new leasing regulations”? The
article speaks on the subject of new updated rules the Department of Interior’s
Bureau of Land Management (BLM) released on Friday for producers who drill on
federal lands. The Fluid Mineral Leases
and Leasing Process rule which effects federal onshore oil and gas leasing architecture
which hasn’t been revised since the end of the 1980s, and the bonding levels
haven’t been changed since the 1960s, and the royalty rates haven’t been raised
in over a century is a win for Americans.
The changes which will be adopted will help the American people get assurances
that they won’t be stuck with the cleanup once the lease has expired by
increasing the minimum bond to $150,000 on the lease as well as adjusting or
ridding other bonds, and it will add funds to America’s pocketbook. The Fluid Mineral Leases and Leasing Process should
stop conjecture which will reduce leases being in locations unlikely to be
developed in hopes to protect wildlife and cultural heritage sites, and the natural
beauty of an area. The increases were in
regard to suggestions from the Government Accountability Office (GAO) which has
been advising these changes for a long while and to honor the request from Congress.
Leasing bids for auction have been
increased to $10 an acre and royalties have been increased to over 16%. The recent changes are in hopes to protect the
lands and Americans from developers as well as add funds to the American pocketbook. If you would like to learn more
about the changes read the Oil and Gas Journal’s article, please click
the link: US
BLM boosts costs to drill on federal lands in sweeping new leasing regulations
| Oil & Gas Journal (ogj.com).
If you would
like to read the BLM’s announcement, please click the link: BLM ensures fair taxpayer return, strengthens accountability for oil and gasoperations on public lands | Bureau of Land Management.
If you would
like help in looking into how to transport your product efficiently, safely, and
with less of a carbon footprint, please check us out! Contact us via email in the blog and check out
our ESC's website and ask how we can help you!
We hope you have a wonderful evening!
**Disclaimer: You may be charged a fee to read The Oil
and Gas Journal’s article. **