Financial Associated Press, April 12 (editor Niu Zhanlin) according to a public land lease regulation finalized by the U.S. Department of the Interior on FridayHorseshoepokerroomOil and gas drilling will increase costs for oil companies, and they will be subject to restrictions on the development of sensitive wildlife habitats.

Environmental groups and taxpayer groups have for years criticized federal oil and gas development for not benefiting the public and called for reform. With the introduction of the landmark inflation reduction Act, many reform measures have been proposed.HorseshoepokerroomI have a schedule.

Under the new policy, oil and gas companies will pay higher deposits to cover the plugging costs of abandoned wells, as well as increased rental fees, minimum auction bids and royalties for the fuel they extract. The new rules also restrict drilling in sensitive wildlife and cultural areas.

Oil industry groups have threatened to sue because they believe these costs will force oil companies to leave federal land.

Deb Haaland, the home secretary, said it was the most important reform of the federal oil and gas leasing program in decades, which would reduce wasteful speculation, increase public returns and protect taxpayers from environmental clean-up costs.

About 10% of America's oil and gas comes from federal land drilling. An oil and gas industry trade group has warned that the increased cost of extracting fuel from federal land could increase America's dependence on foreign energy supplies.

"overly cumbersome land management regulations will put this key energy supply at risk," Holly Hopkins, vice president of upstream policy at the American Petroleum Institute, said in a statement.

During the 2020 campaign, Biden promised to end federal oil and gas leases as part of his agenda to fight climate change. But the inflation reduction Act effectively guarantees continued auctions of drilling rights for federal land for at least the next decade, a concession to the powerful fossil fuel lobby.

Under the new rules, drilling companies are required to pay an upfront deposit to cover the cost of future clean-up work, which will be used to cover related costs if they fail to comply. According to a 2019 government analysis, the margin level is inadequate.

In addition, the minimum rental deposit will soar to $150000 from $10, 000, which has not changed since 1960. The concession rate will be changed from 12Horseshoepokerroom.5% rise to 16Horseshoepokerroom.67%, the minimum amount that companies can bid at oil and gas auctions will be increased from $2 per acre to $10 per acre. The rent for a 10-year lease will double to $3 per acre in the first two years and eventually rise to $15 per acre in the final years.