Washington resumes oil, gas drilling leases on federal land

The U.S. government, under pressure to lower gas prices, announced on April 15 that it will resume the sale of leases for oil and gas drilling on federal lands while imposing new conditions, including the first hike in royalties in more than 100 years.

Shortly after coming to office in January 2021, President Joe Biden, who has made fighting climate change one of his priorities during his campaign, had proclaimed a moratorium on grants for new drilling leases on government-owned land and waters, pending a review.

The Interior Department said in a statement that it will auction some 173 parcels representing 144,000 acres (58,275 hectares) in nine states after making several changes.

The parcels represent about 30 percent less land than officials had proposed for sale in November 2021 and 80 percent less than what was originally nominated by the industry.

The administration will also increase the royalties companies much pay on hydrocarbons extracted 12.5 percent - the rate that had been in place for at least a century - to 18.75 percent of profits.

Companies interested in drilling will also have to meet new requirements, such as consultation with Native American tribes and compliance with "best available science" for the analysis of greenhouse gas emissions.

"For too long, the federal oil and gas leasing programs have prioritized the wants of extractive industries above local communities, the natural environment, the impact on our air and water, the needs of Tribal Nations," said Interior Secretary Deb Haaland, the country's first ever Native American cabinet minister.

The move comes as the U.S. president faces down record inflation, especially in gas prices, which is eroding his ratings.

He has been taking...