![]() The bill would name as “inadequate” leases with bonding of less than $150,000 for an individual lease or $500,000 for a blanket bond of leases in a state and $2 million for nationwide blanket bonds. These rates are financial assurances secured prior to development that ensure money is available for cleanup should a company go bankrupt before plugging and reclaiming wells. Perhaps the biggest win for green groups is the increase in bonding rates for oil leases on public land. Meanwhile, lands that are not sold in auctions would no longer be available for oil and gas leases at a discounted bid, ending “noncompetitive” leasing that has long irked critics of the oil and gas program. The bill would put a cap on offshore royalties that would be in place for ten years: 18.75 percent.įor onshore leasing, the bill would strike the minimum oil and gas royalty set in 1920 of 12.5 percent and replace it with 16.66 percent. The offshore oil and gas royalty rate would get a new minimum of 16.66 percent. Prospectors get hit with a new charge of $5 per acre on their “expressions of interest” on land for auction - the first step in leasing public land for oil development. Provisions include an increase in the minimum bid per acre in federal lease sales from $2 to $10 and a gradual increase in rental rates to $15 per year. Many of the proposed reforms in a section titled “Mineral Leasing Act modernization” are longstanding asks from conservation groups and federal watchdogs to increase incomes for the federal government - and costs on producers. The bill includes a suite of reforms that would have a dramatic impact in the federal oil and gas patch, both onshore and off. Initial estimates from Congressional Budget Office scoring suggest the methane fee would generate more than $6 billion in revenue, making it more than revenue neutral, according to a person familiar with the matter who was granted anonymity because they were not authorized to speak publicly. Facilities that comply with the regulation would be exempt from the fee. The provision also allows companies an out if the Biden administration finalizes a methane rule. The fee would apply to waste emissions from facilities reporting more than 25,000 metric tons of carbon dioxide equivalent of greenhouse gasses annually. Then, a fee on excess methane emissions would begin at $900 per metric ton in 2024, rising to $1,500 per metric ton in 2026. ![]() The money would be made available immediately. Of that total, $700 million would be allocated for methane mitigation at conventional wells. The inclusion of the Methane Emissions Reduction Program was a major win for Senate Environment and Public Works chair Tom Carper (D-Del.), who spent months negotiating the policy with Senate Energy and Natural Resources Chair Joe Manchin (D-W.Va.).īut the provision is structured differently from the methane fee that was in the original “Build Back Better Act.” Grant and rebate funding for companies to reduce methane emissions would double compared with the House-passed bill to $1.55 billion. Here’s a deeper look at the bill: Revised methane fee To get those levels, the legislation contains more than just tax credits.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |