Biden To Resume Oil And Gas Lease Sales On Federal Land While Upping Royalties

Biden To Resume Oil And Gas Lease Sales On Federal Land While Upping Royalties

BILLINGS, Mont. (AP) — The Biden administration is sharply raising rates for royalties companies pay on oil and natural gas extracted from federal lands as it moves forward under court order with sales of public fossil fuel reserves in nine states, Interior Department officials said Friday.

The announcement comes as Republicans pressure President Joe Biden to expand U.S. crude production and rein in higher gasoline prices contributing to record inflation. Biden also faces calls from within his own party to do more to curb emissions from fossil fuels that are driving climate change.

The royalty rate for new leases will increase to 18.75%, from the current 12.5%. That’s a 50% percent jump and marks the first increase to royalties for the government in decades.