The U.S. Department of the Interior has proposed reducing by 95% the amount of bonds that oil and gas companies must provide for drilling on federal lands. The administration of President Donald Trump says this should help increase investment in energy extraction, Reuters reports, writes UNN.
Details
According to the initiative, the bond amount for leasing onshore wells on federal territories is planned to be reduced from $500,000 to $25,000.
Such bonds are used as a financial guarantee to cover the costs of plugging and cleaning up wells if a company ceases operations and abandons the site.
The proposal will be put up for public comment
The Department of the Interior said the change will undergo a 60-day public comment period after publication in the U.S. Federal Register.
These targeted updates remove bureaucracy that has traditionally held back investment, ensuring our public lands remain a reliable engine of economic growth and innovation
In addition, the agency intends to repeal certain provisions and clarify some definitions in the waste reduction rules that apply when reviewing applications for drilling permits.
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