Huffman, Committee Democrats Applaud Biden Administration’s Oil and Gas Rule to Ensure a Fairer Return for American Taxpayers

April 12, 2024

Water, Wildlife, and Fisheries Subcommittee Ranking Member Jared Huffman (D-Calif.), Natural Resources Committee Ranking Member Raúl M. Grijalva (D-Ariz.),  Rep. Katie Porter (D-Calif.), Rep. Susie Lee (D-Nev.), and Mike Levin (D-Calif.) today issued the following statements applauding the Bureau of Land Management’s (BLM) final rule for onshore oil and gas leasing on public lands. The rule reflects long overdue fiscal reforms that were passed in the Inflation Reduction Act (IRA), including increased onshore royalty rates, minimum bid amounts, and rental rates; a new fee to nominate public lands for leasing; and an end to noncompetitive leasing. The rule also strengthens bonding requirements for the first time since 1960.

“Democrats fought long and hard to pass reforms in the Inflation Reduction Act to stop Big Oil from abusing our public lands at the cost of our communities and our climate, and this finalized rule by the Biden-Harris administration is going to ensure those reforms are implemented,” said Rep. Huffman. “This is a huge step in putting people over polluters instead of letting fossil fuel and mining industries pad their pockets and plunder our public lands with impunity.”   

“When Big Oil uses our public lands, it stands to reason that they should be giving American taxpayers a fair return for the privilege,” said Ranking Member Grijalva. “That’s why Democrats worked so hard to pass reforms in the Inflation Reduction Act to return some balance to a leasing system that has favored polluters for far too long. The Biden administration is taking an important step in moving those reforms forward with this new rule. The ultimate goal is phasing out fossil fuels for good, but these new taxpayer protections will help make sure the American people aren’t getting ripped off in the meantime.”

“For over a century, Big Oil has paid pennies on the acre to drill on our public lands—and then left taxpayers on the hook to clean up the mess,” said Rep. Katie Porter. “In Congress, I’ve fought to get rid of Big Oil’s sweetheart deal to pollute our public lands. I’m proud my proposals to end this reckless disregard for the environment—and our taxpayer dollars—are now law, and I applaud the Biden Administration for putting these much-needed reforms into action.”

“I represent working families in southern Nevada – not Big Oil & Gas. Public lands belong in public hands, not tied up in costly and unproductive fossil fuel speculation,” said Rep. Susie Lee. “Over 80 percent of Nevada lands are public lands, and I’ve made it a top priority to protect our resources and taxpayers from the outdated and wasteful approach of our speculative leasing system. Today’s announcement is another major step toward fixing the broken elements of this system, in line with my End Speculative Oil and Gas Leasing Act. I will continue to work toward a diverse, clean, and efficient energy economy that unleashes our state’s energy potential while lowering costs and protecting our public lands.”

“I applaud the Biden Administration for issuing this final rule to promote conservation and ensure a fair financial return on the profits fossil fuel companies make off our public lands,” said Rep. Levin. “The rule ends giveaways of our public lands to fossil fuel companies, holds companies accountable for cleanup costs, and updates outdated fiscal terms for onshore oil and gas leases, all while protecting our important environmental and cultural resources. Taxpayers should never foot the bill for cleaning up after Big Oil. I’m proud to see provisions of legislation I introduced included in this rule to elevate the interests of the American people over fossil fuel companies’ profits.”

Background

The rule reflects legislation championed by Natural Resources Committee Democrats, including the following:

117th Congress:

  • H.R. 1503 (Levin) Restoring Community Input and Public Protections in Oil and Gas Leasing Act – Legislation to eliminate non-competitive bidding and increase royalty rates, rental rates, and minimum bid amounts, among other reforms.
  • H.R. 1505 (Lowenthal) Bonding Reform and Taxpayer Protection Act – Legislation to revise bonding requirements for oil and gas development and better ensure that developers have adequate financial resources for reclamation and restoration of public lands. 
  • H.R. 1517 (Porter) Ending Taxpayer Welfare for Oil and Gas Companies Act – Legislation to increase onshore royalty rates, rental rates, minimum bid amounts, and inspection fees and penalties.

118th Congress:

  • H.R. 3377 (Susie Lee) End Speculative Oil and Gas Leasing Act – Bicameral legislation to cut wasteful speculation and allow lands with low or no oil and gas potential to be reprioritized for better uses.
  • H.R. 4301 (Porter) – Legislation to amend the Mineral Leasing Act to make certain adjustments to the regulation of surface-disturbing activities and to protect taxpayers from unduly bearing the reclamation costs of oil and gas development, and for other purposes.
  • H.R. 4302 (Porter) – Legislation to provide for the accurate reporting of fossil fuel extraction and emissions by entities with leases on public land, and for other purposes.