Washington, D.C. — Today, the U.S. Bureau of Ocean Energy Management released a final rule to update the federal oil and gas program. These reforms will ensure that oil and gas companies, not taxpayers, pay decommissioning costs for oil and gas wells and infrastructure in publicly owned federal waters.
In response to the announcement, Nicole Gentile, senior director for Conservation at the Center for American Progress, commended the move, stating, "Today, the Biden administration ends a sweetheart deal for oil and gas companies that are drilling in publicly owned waters off our coasts." Gentile further emphasized the significance of the new rule, noting, "The final rule will protect taxpayers from cleanup costs that are the responsibility of polluters."
Gentile also highlighted the broader impact of these reforms, stating, "Together with other long-overdue reforms to royalty rates, rental rates, and onshore bonding requirements, this rule will bring the outdated federal oil and gas program into the 21st century."
The updated regulations mark a significant shift towards holding oil and gas companies accountable for their environmental impact and financial responsibilities. For further inquiries or to engage with an expert on this matter, please contact Sam Hananel at [email protected].
