Rep. Mike Levin Statement on Bureau of Land Management’s New Oil & Gas Rule
Washington, D.C.- Today, Rep. Mike Levin (CA-49) responded to the Department of the Interior’s announcement that the Bureau of Land Management (BLM) is issuing proposed rules to fully implement key provisions of the Inflation Reduction Act (IRA). Rep. Levin secured significant provisions of his Restoring Community Input and Public Protections in Oil and Gas Leasing Act in the IRA, which will help end giveaways of our public lands to fossil fuel companies and ensure that taxpayers receive a fair return on any private profit off of our public lands. Specifically, Rep. Levin’s provisions in the Inflation Reduction Act required BLM to end noncompetitive leasing for oil and gas sales, raise annual rental rates, and increase the minimum bid for public lands.
“The American people deserve to see a fair financial return on the profits that fossil fuel companies make from their use of our cherished public lands,” said Rep. Levin. “That’s why I introduced my legislation to ensure that any development on our public lands is protective of federal taxpayers. I’m glad the Biden Administration is implementing it by issuing a formal rulemaking to reform the federal oil and gas leasing program, which will generate hundreds of millions of dollars in revenue for taxpayers while promoting the protection of our public lands. Along with additional reforms BLM is proposing, such as increased bonding requirements and protection of key landscapes from fossil fuel development, these changes will elevate the interest of the American people over fossil fuel interests.”
BACKGROUND:
The Inflation Reduction Act includes several provisions similar to those in Rep. Levin’s Restoring Community Input and Public Protections in Oil and Gas Leasing Act. The Inflation Reduction Act:
- Raises the onshore oil and gas royalty rate from 12.5 percent to 16.66 percent.
- Increases the minimum bid amount from $2 per acre to $10 per acre.
- Raises annual rental rates from $1.50 per acre to $3 per acre during the 2-year period and $5 per acre for the following 6-year period, and not less than $15 per acre after that.
- Raises rental rates for reinstated leases from $10 to $20 per acre.
- Allows the Secretary of the Interior to assess a nonrefundable $5 per acre fee against any person that submits an expression of interest in leasing land available for exploration for, and development of oil and gas. The Secretary can adjust the amount of this fee if they update the regulations.
- Allows the Secretary to issue a new round of competitive bidding for land that didn’t receive a bid or the land for which a lease terminates, expires, is canceled, or is relinquished.
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