U.S. SENATE – U.S. Senator Steve Daines today led a letter with nine of his Republican colleagues to Secretary Doug Burgum at the U.S. Department of the Interior urging the reversal of Biden-era regulations that dramatically increase the bonding requirements for oil and gas wells on federal lands.
“We write to express our support of your review of former President Biden’s burdensome regulatory actions that will reduce American energy independence and raise costs for American families and small businesses. In Secretarial Order 3418 you direct your Assistant Secretaries to review the Bureau of Land Management’s April 2024 final rule “Fluid Mineral Leases and Leasing Process,” (89 Fed. Reg. 30916) that dramatically increases costs on small oil and gas producers. Specifically, we request that you review and roll back the provisions in the rule that dramatically increase the bonding requirements for oil and gas wells on federal lands.
…While we strongly support proper stewardship of our public lands and the need to ensure that adequate bonding is in place to clean up abandoned wells, we must also ensure that bonding requirements are set at a reasonable and achievable rate for all oil and gas producers. Unfortunately, the current bonding rule will drive producers out of business and raise costs for American families. Energy development on federal lands is critical to strengthening America’s energy security, powering our economy, and supporting state and local conservation efforts. We strongly urge you to revisit and reverse the bonding requirements in this rule, including reinstatement of reasonable state and nationwide bonding requirements, to ensure America’s long-term energy dominance and the prosperity of our communities,” the senators wrote in the letter.
Daines was joined by Senators Mike Lee (R-Utah), James Lankford (R-Okla.), John Curtis (R-Utah), John Hoeven (R-N.D.), Kevin Cramer (R-N.D.), Tim Sheehy (R-Mont.), Cynthia Lummis (R-Wyo.), Markwayne Mullin (R-Okla.) and Lisa Murkowski (R-Alaska) in sending the letter.
Read the full letter HERE.
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Contact: Matt Lloyd, Rachel Dumke