A long-awaited Interior Department policy will raise financial assurance and royalty rates, aiming to ensure cleaner operations and better returns for the public.

Nick Bowlin reports for High Country News.

In short:

• The Department of Interior issued a new rule imposing stricter financial requirements for oil and gas companies on federal public land.
• Companies will now have to provide higher financial assurances for well cleanup and pay increased royalty taxes on extracted minerals.
• These changes aim to cut wasteful speculation, increase returns for the public, and protect taxpayers from environmental cleanup costs.

Key quote:

“These new regulations are the kind of common-sense reforms the federal oil and gas leasing program has needed for decades.”

— Athan Manuel, Sierra Club lands protection program director

Why this matters:

The new policy signifies a noteworthy shift in oil drilling regulation, aiming to ensure environmental protection and fairer returns for public resources, while also addressing climate concerns associated with methane emissions from abandoned wells. Read more: Oil and gas production responsible for $77 billion in annual U.S. health damages.