Interior opens federal land for new drilling but raises fees

"The Interior Department announced on Friday plans to hold its first onshore oil and gas lease sales since President Biden took office," Anna Phillips reports for The Washington Post. "The department said it plans to open roughly 144,000 acres up for lease next week and will charge oil and gas companies higher royalties to drill on federal land, raising the fees for the first time. Under the plans unveiled Friday, royalty rates would increase to 18.75 percent from 12.5 percent for oil and gas lease sales. The long-awaited announcement follows a report the department issued last fall, which called for royalty fees to be more in line with the higher rates charged by most private landowners and major oil- and gas-producing states."

Matthew Brown reports for The Associated Press, "Friday’s announcement comes amid pressure for Biden to expand U.S. crude production as the pandemic and war in Ukraine roil the global economy and fuel prices have spiked. The Democrat faces calls from within his own party to do more to curb emissions from fossil fuels that are driving climate change."

 

The announcement angered climate activists and violates a campaign promise not to allow any more drilling on federal lands. Biden tried to follow through on that promise, and suspended new leasing a week after taking office to give Interior time to create a report on the state of the leasing programs. But a federal judge in Louisiana ordered the administration to resume the sales, Brown reports.

"In opening new land for drilling, while at the same time requiring companies to pay more to drill, Biden appears to be trying to walk a line between trying to both lower gas prices and fight climate change," Coral Davenport reports for The New York Times. "While Biden came into office with the most ambitious climate-change agenda of any president in history, his climate policies have been largely stalled, stymied by inaction in Congress."