Oil, gas companies could pay higher royalties under proposed rule

Southern Energy Conference

Oil and gas companies would have to pay more to drill on public lands and satisfy stronger requirements to clean up old or abandoned wells under a new rule proposed last week by the Biden administration, reports The Associated Press.

The Interior Department rule would raise royalty rates for oil drilling by more than one-third, to 16.67%. The previous rate of 12.5% paid by oil and gas companies for federal drilling rights had remained unchanged for a century. Read more.